7 Reasons Why You Should Choose a Food Export Company for Your Business

If you are looking for a reliable and profitable way to expand your business, you might want to consider working with a food export company. A food export company is a business that specializes in exporting food products from one country to another. They can help you reach new markets, increase your sales, and improve your brand reputation. Here are some of the benefits of partnering with a food export company for your business.

1. You can access a larger customer base

By exporting your food products, you can tap into the huge demand for food in different regions of the world. You can also diversify your income sources and reduce your dependence on the local market. A food export company can help you identify the best markets for your products, as well as the legal and logistical requirements for each country.

2. You can benefit from lower production costs

Depending on where you source your raw materials and where you manufacture your products, you might be able to lower your production costs by exporting your food products. For example, if you produce organic food, you might find that the cost of organic ingredients is lower in some countries than in others. A food export company can help you find the best suppliers and negotiate the best prices for your products.

3. You can enhance your product quality and safety

Exporting your food products requires you to comply with the standards and regulations of the destination country. This can help you improve your product quality and safety, as well as your reputation among customers. A food export company can help you obtain the necessary certifications and inspections for your products, as well as advise you on how to maintain the freshness and shelf life of your products during transportation and storage.

4. You can increase your brand awareness and recognition

By exporting your food products, you can expose your brand to new audiences and potential customers. You can also create a positive image of your brand by showcasing your values, culture, and social responsibility. A food export company can help you design and implement an effective marketing strategy for your products, as well as provide you with feedback and insights on how to improve your brand positioning and differentiation.

5. You can leverage the expertise and network of a food export company

Exporting food products can be a complex and challenging process, especially if you are new to it or lack the resources and experience to do it yourself. A food export company can provide you with the knowledge, skills, and contacts that you need to succeed in the global market. They can handle all aspects of the export process, from sourcing, packaging, labeling, shipping, customs clearance, distribution, to customer service.

6. You can save time and money

By working with a food export company, you can avoid the hassle and risk of exporting food products yourself. You can focus on your core business activities and leave the rest to the experts. A food export company can also help you optimize your costs and maximize your profits by finding the best deals and solutions for your products.

7. You can enjoy long-term growth and sustainability

Exporting your food products can help you achieve long-term growth and sustainability for your business. You can build lasting relationships with customers, suppliers, distributors, and partners in different countries. You can also adapt to changing market trends and customer preferences by offering new and innovative products. A food export company can help you monitor and evaluate your export performance and provide you with guidance and support for future improvement.

The Global Demand for Food Export Companies

Food export companies are businesses that sell food products to foreign markets, either directly or through intermediaries. They play a vital role in the global food system, as they help meet the demand for diverse, safe and nutritious food in different regions of the world. According to the Food and Agriculture Organization (FAO), the trade of agricultural commodities (including food) increased by 68 percent in value and 24 percent in volume from 2000 to 2020. The main drivers of this growth were population growth, income growth, urbanization, dietary changes and technological innovations.

The main food products that are exported globally are fruit and vegetables, cereals and preparations, meat and meat preparations, dairy products and eggs, fish and fishery products, sugar and honey, coffee and tea, oilseeds and oils, spices and alcoholic beverages. Among these, fruit and vegetables accounted for 22 percent of the total value of food (excluding fish) exports in 2020, followed by cereals and preparations (16 percent) and meat and meat preparations (12 percent). The Americas is the largest net food exporter, and Asia is the largest net food importer. Europe became a net food exporter in 2013.

The U.S. is one of the leading food exporters in the world, with a market share of 11 percent in 2020. The U.S. exported $177 billion worth of farm and food products to the world in 2021, setting a new record and surpassing the previous record of $155 billion in 2014 by 14.6 percent. The top export destinations for U.S. food products were China ($33 billion), Mexico ($25.5 billion), Canada ($25.4 billion), Japan ($14.4 billion) and South Korea ($9.8 billion). The top export products were soybeans ($27.4 billion), corn ($13.7 billion), beef ($8.9 billion), pork ($7.7 billion) and dairy ($6.8 billion).

The Outlook for Food Export Companies

The outlook for food export companies is positive, as the global demand for food is expected to continue to grow in the coming years. The FAO projects that the world population will reach 9.7 billion by 2050, with most of the growth occurring in developing regions, especially Africa and Asia. These regions will also experience higher income growth, urbanization and dietary changes, which will increase their demand for more diverse, processed and high-value food products. Moreover, the COVID-19 pandemic has highlighted the importance of resilient and diversified food supply chains, which can benefit from increased trade and cooperation among countries.

However, food export companies also face some challenges and uncertainties that may affect their performance and competitiveness. Some of these are:

Trade barriers

Food export companies may encounter tariff and non-tariff barriers that restrict their access to certain markets or increase their costs. For example, some countries may impose sanitary and phytosanitary measures, technical regulations, quotas or subsidies that favor domestic producers or protect consumers’ health or preferences.

Transportation costs

Food export companies may face higher transportation costs due to rising fuel prices, congestion, infrastructure bottlenecks or disruptions caused by natural disasters or geopolitical conflicts. These costs may reduce their profit margins or make them less competitive than local suppliers.

Environmental issues

Food export companies may have to comply with stricter environmental standards or regulations that aim to reduce greenhouse gas emissions, conserve natural resources or protect biodiversity. These may require them to adopt more sustainable production practices or technologies, which may entail additional investments or operational changes.

Consumer preferences

Food export companies may have to adapt to changing consumer preferences that reflect their awareness of health, nutrition, quality, safety, ethics or social responsibility issues. These may require them to offer more organic, natural, fair trade, animal welfare-friendly or traceable products, which may involve higher costs or certification processes.

To overcome these challenges and seize the opportunities in the global food market, food export companies need to adopt innovative strategies that enhance their efficiency, quality, differentiation and value addition. They also need to forge strong relationships with their customers, suppliers, partners and regulators, as well as leverage the support of trade associations or government agencies that can facilitate their access to information, markets, finance or technology.

References:

https://www.foodexport.org/

https://en.wikipedia.org/wiki/Food_Export_Association_of_the_Midwest_USA

https://en.wikipedia.org/wiki/Southern_United_States_Trade_Association

https://www.wusata.org/

https://www.fas.usda.gov/programs/market-access-program-map

https://www.fao.org/3/cb9928en/cb9928en.pdf
https://www.usda.gov/media/press-releases/2022/02/08/american-agricultural-exports-shattered-records-2021
https://www.foodexport.org/export-insights/market-and-country-profiles/
https://www.fas.usda.gov/data/us-processed-food-exports-growth-outlook