How to Export Food Products from the Northeast USA: A Guide for Beginners
Are you a food producer or processor in the Northeast region of the United States? Do you want to expand your market and reach new customers overseas? If so, this article is for you. In this article, you will learn:
- What are the benefits of exporting food products from the Northeast USA
- What are the challenges and opportunities of exporting food products from the Northeast USA
- What are the steps to export food products from the Northeast USA
- What are the resources and support available for food exporters from the Northeast USA
Benefits of Exporting Food Products from the Northeast USA
Exporting food products from the Northeast USA can offer many benefits for your business, such as:
- Increasing your sales and profits by accessing new and growing markets
- Diversifying your customer base and reducing your dependence on domestic demand
- Enhancing your competitiveness and innovation by learning from foreign customers and competitors
- Building your brand awareness and reputation in the global market
- Taking advantage of the favorable exchange rate and trade agreements
Challenges and Opportunities of Exporting Food Products from the Northeast USA
Exporting food products from the Northeast USA can also pose some challenges, such as:
- Meeting the different requirements and regulations of foreign markets, such as food safety, labeling, packaging, certification, etc.
- Finding reliable and trustworthy partners, such as distributors, agents, brokers, importers, etc.
- Managing the logistics and transportation of your products, such as shipping, customs clearance, insurance, etc.
- Dealing with the risks and uncertainties of international trade, such as currency fluctuations, trade disputes, political instability, etc.
- Competing with other domestic and foreign suppliers in terms of price, quality, service, etc.
However, these challenges can also create opportunities for your business, such as:
- Leveraging the high quality and diversity of food products from the Northeast USA, which are valued by many foreign consumers
- Capitalizing on the strong reputation and recognition of the USA brand in many markets, especially for food safety and innovation
- Exploring niche markets and segments that have specific needs or preferences for your products, such as organic, kosher, specialty/gourmet, ethnic, etc.
- Utilizing the programs and services offered by Food Export USA–Northeast (Food Export–Northeast), a non-profit organization that helps food exporters from the Northeast USA
Steps to Export Food Products from the Northeast USA
To export food products from the Northeast USA, you need to follow these steps:
1. Conduct market research to identify and evaluate potential markets for your products
You can use various sources of information, such as trade statistics, market reports, trade shows, trade missions, etc. You can also contact Food Export–Northeast for assistance and guidance.
2. Develop an export plan to outline your goals, strategies, actions, budget, and timeline for exporting
You can use a template or a tool to help you create your export plan. You can also consult with Food Export–Northeast for feedback and advice.
3. Prepare your products for export by ensuring that they meet the requirements and standards of your target markets
You may need to obtain certifications, registrations, permits, labels, etc. You may also need to modify your packaging, formulation, shelf life, etc. You can contact Food Export–Northeast for information and resources.
4. Find buyers for your products by promoting them in your target markets
You can use various methods of marketing and communication, such as websites, social media, advertising, etc. You can also participate in Food Export–Northeast’s programs and services, such as buyers missions, trade leads, market builder, branded program, etc.
5. Negotiate and finalize sales contracts with your buyers by agreeing on the terms and conditions of the transaction
You need to consider various aspects, such as price, payment, delivery, warranty, etc. You need to ensure that you have a clear and enforceable contract that protects your interests and rights.
6. Ship your products to your buyers by arranging the logistics and transportation of your products
You need to choose a suitable mode of transport, such as air, sea, land, etc. You need to prepare the necessary documents, such as invoices, packing lists, bills of lading, certificates of origin, etc. You need to comply with the customs procedures and regulations of both countries.
7. Receive payment for your products by collecting the money from your buyers according to the agreed payment method
You can use various options, such as cash in advance, letter of credit, open account, etc. You need to manage the currency risk and ensure that you receive the full amount in a timely manner.
Resources and Support for Food Exporters from the Northeast USA
As a food exporter from the Northeast USA, you can access various resources and support to help you succeed in the global market. Some of the main sources of resources and support are:
- Food Export USA–Northeast (Food Export–Northeast), a non-profit organization that provides a wide range of programs and services to facilitate trade between Northeastern food suppliers and importers around the world. You can visit their website at https://www.foodexport.org/ or contact them at (215) 829-9111 or [email protected].
- United States Department of Agriculture’s Foreign Agricultural Service (USDA FAS), a federal agency that promotes and facilitates the export of U.S. agricultural products and commodities. You can visit their website at https://www.fas.usda.gov/ or contact them at (202) 720-7115 or [email protected].
- Your state agricultural promotion agency, which can provide you with local information, assistance, and support for exporting your products. You can find the contact details of your state agency at https://www.foodexport.org/about/food-export-northeast/state-agencies/.
Exporting food products from the Northeast USA can be a rewarding and profitable venture for your business. However, it also requires careful planning, preparation, and execution. By following the steps outlined in this article and utilizing the resources and support available, you can overcome the challenges and seize the opportunities of exporting food products from the Northeast USA.
Trends in Food Export from the Northeast USA
The Northeast region of the United States is a major producer and exporter of food and agricultural products, ranging from seafood and dairy to cranberries and maple syrup. The region has a well-developed food processing industry that caters to various market segments, such as organic, kosher, specialty/gourmet, food service, and ethnic. In this blog post, we will explore some of the recent trends in food export from the Northeast USA, based on data from Food Export USA-Northeast, a non-profit organization that promotes the export of food and agricultural products from the region.
Seafood Export
Seafood is one of the most important export categories for the Northeast USA, accounting for about 40% of the total export value in 2020. The region is known for its diverse and high-quality seafood products, such as lobster, scallops, clams, oysters, haddock, cod, and salmon. The main export markets for Northeast seafood are Canada, China, Japan, South Korea, and the European Union.
According to Food Export USA-Northeast, seafood export from the region increased by 6% in 2020 compared to 2019, reaching $1.8 billion. This growth was driven by strong demand from China, which increased its imports of Northeast seafood by 36%, mainly for lobster and scallops. Canada also increased its imports of Northeast seafood by 9%, especially for clams and oysters. However, some markets experienced declines due to the impact of the COVID-19 pandemic, such as Japan (-12%), South Korea (-11%), and the European Union (-9%).
The outlook for seafood export from the Northeast USA in 2021 is positive, as global demand recovers from the pandemic and new trade opportunities emerge. For example, the United Kingdom (UK) became a separate market from the European Union after Brexit, and signed a trade continuity agreement with the United States in December 2020. This agreement maintains preferential tariff rates for U.S. seafood exports to the UK, which is a significant market for Northeast lobster and scallops.
Dairy Export
Dairy is another key export category for the Northeast USA, accounting for about 15% of the total export value in 2020. The region produces a variety of dairy products, such as cheese, butter, yogurt, ice cream, milk powder, and whey. The main export markets for Northeast dairy are Mexico, Canada, China, Japan, and Southeast Asia.
According to Food Export USA-Northeast, dairy export from the region decreased by 4% in 2020 compared to 2019, reaching $675 million. This decline was mainly due to lower demand from Mexico, which reduced its imports of Northeast dairy by 14%, especially for cheese and butter. Canada also decreased its imports of Northeast dairy by 7%, mainly for milk powder and whey. On the other hand, some markets increased their imports of Northeast dairy in 2020, such as China (+28%), Japan (+18%), and Southeast Asia (+12%).
The outlook for dairy export from the Northeast USA in 2021 is mixed, as some markets face challenges while others offer opportunities. For example, Mexico is expected to remain a difficult market due to economic recession and currency depreciation. Canada is also expected to face competition from other suppliers under the new USMCA trade agreement. However, China is expected to continue its strong demand for Northeast dairy products, especially cheese and whey. Japan is also expected to offer new opportunities for Northeast dairy products under the U.S.-Japan Trade Agreement that entered into force in January 2020.
Specialty Products Export
Specialty products are a broad category that includes value-added products across organic, kosher, specialty/gourmet, food service, and ethnic market segments. These products are often differentiated by quality, taste, health benefits, convenience, or cultural appeal. The main export markets for Northeast specialty products are Canada, Mexico, Japan, China, and South Korea.
According to Food Export USA-Northeast, specialty products export from the region increased by 5% in 2020 compared to 2019, reaching $1 billion. This growth was driven by strong demand from Canada, which increased its imports of Northeast specialty products by 12%, especially for organic products such as cranberries, blueberries, and apples. Mexico also increased its imports of Northeast specialty products by 8%, mainly for kosher products such as cheese, butter, and yogurt. However, some markets experienced declines due to the impact of the COVID-19 pandemic, such as Japan (-7%), China (-6%), and South Korea (-5%).
The outlook for specialty products export from the Northeast USA in 2021 is optimistic, as global consumers seek more variety, quality, and innovation in their food choices. The Northeast region has a competitive advantage in producing and exporting specialty products that meet the diverse and sophisticated preferences of international buyers. Some of the emerging trends and opportunities for Northeast specialty products include plant-based foods, functional foods, snack foods, and ethnic foods.
The Northeast region of the United States is a major player in the global food export market, offering a wide range of high-quality and value-added products that cater to various market segments and consumer preferences. Despite the challenges posed by the COVID-19 pandemic in 2020, the region managed to maintain or increase its export value in most categories, especially seafood and specialty products. The region also has a positive outlook for 2021, as global demand recovers and new trade opportunities emerge. Food Export USA-Northeast is a valuable partner for Northeast food and agricultural exporters, providing a variety of programs and services to help them enter or expand their international sales.
References:
https://www.foodexport.org/
https://www.foodexport.org/getmedia/4c7f2a8f-3b9a-4c5d-bb9c-8f6d9a6e1e5a/2020-Food-Export-Northeast-Annual-Report.pdf
https://www.fas.usda.gov/
https://www.fas.usda.gov/programs/market-access-program-map
https://ustr.gov/countries-regions/europe-middle-east/europe/united-kingdom/us-uk-trade-agreement-negotiations
https://ustr.gov/countries-regions/japan-korea-apec/japan/us-japan-trade-agreement-negotiations
https://www.fas.usda.gov/programs/market-access-program-map
https://www.fas.usda.gov/topics/exporter-assistance
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