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Agribusiness Marketing Forum 2016
The document outlines various marketing initiatives and resources provided by the Missouri Department of Agriculture to promote local agricultural products and enhance export opportunities. It emphasizes the benefits of exporting Missouri's agricultural goods, including increasing sales and accessing international markets. Additionally, it details available services, educational programs, and support for small businesses in the agricultural sector to facilitate market entry and growth.
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Agribusiness Marketing Forum 2016
- 2. PROMOTING MISSOURI PRODUCTS MelissaMiller & Kayla Otto Marketing Specialists Missouri Department of Agriculture
- 3. MISSOURI DEPARTMENT OFAGRICULTURE
- 4. ORGANIZATION Office of the Director AnimalHealth Plant Industries Grain Inspection & Warehousing Weights, Measures & Consumer Protection Agriculture Business Development
- 5.
- 6. AGRICULTURE BUSINESS DEVELOPMENT(ABD) Ò AgriMissouri “MO Grown” Ò Farm to School Program Ò Market News Ò Missouri Agricultural and Small Business Development Authority (MASBDA) Ò Domestic & International Marketing Ò Agricultural Stewardship Assurance Program (ASAP) Ò Foreign Offices
- 7.
- 8. SERVICES Ò Trade Consultation Ò Market Assessment Ò Funding Assistance Ò Export Documentation Ò Source/Vet Buyers Ò Trade Leads Ò Trade Events
- 9.
- 10. Ò Missouri Beef É BeefInitiative Grants Ò Youth in Agriculture É Life Sciences Quest Ò Farm Safety & Sustainability É Agricultural Stewardship Assurance Program (ASAP)
- 11. Connecting producers toconsumers and consumers to agriculture. Melissa Miller Marketing Specialist – Livestock Melissa.miller@mda.mo.gov (573) 751-5613 Kayla Otto Marketing Specialist – Forestry Products Kayla.otto@mda.mo.gov (573) 751-7213 Alan Freeman Marketing Specialist – Special Projects Alan.freeman@mda.mo.gov (573) 526-4620 Brenda Verslues International Marketing Manager Brenda.verslues@mda.mo.gov (573) 522-9560 Kellyn Freeman Marketing Specialist – Food & Beverage Kellyn.freeman@mda.mo.gov (573) 526-4849 Casey Chasteen Marketing Specialist – Grains Casey.chasteen@mda.mo.gov (573) 751-8187 Jennifer Dudenhoeffer Marketing Specialist – Food & Beverage Jennifer.dudenhoeffer@mda.mo.gov (573) 751-5611 John Knudsen Farm Programs Manager – ASAP John.knudsen@mda.mo.gov (573) 751-2539 Kurt Olsen Dairy Development Coordinator Kurt.olsen@mda.mo.gov (573) 291-5704
- 13. Food Export Associationof the Midwest USA Missouri Agribusiness Marketing Forum
- 14. Today’s Agenda Missouri AgribusinessMarketing Forum Why Should You Export? How Can Food Export Help?
- 15. Benefits of Exporting MissouriAgribusiness Marketing Forum • 95% of the world’s consumers live outside the U.S. • Increase sales • Diversify market risk: Sluggish sales at home/booming sales abroad • Overseas markets continue to open • Free Trade Agreements • Increasing middle class • Developing demands for different products
- 16. Benefits of Exporting MissouriAgribusiness Marketing Forum • US manufacturers have a competitive advantage • Quality, Safety, Consistency • Highly advanced agricultural system, food processing, manufacturing, and processing • Extend product life cycles • Find new markets and uses for products • Use idle capacity and reduce unit costs
- 17. Benefits of Exporting MissouriAgribusiness Marketing Forum Smaller companies can be successful exporters, too! • Competitive advantages • Unique, in-demand products • Only 1% of US small businesses export, and more than half only export to one country
- 18. Who is FoodExport-Midwest? Missouri Agribusiness Marketing Forum Mission: To promote the export of Midwestern food and agriculture products through our programs and services. • Private, non-profit trade association • Members = State Agricultural Promotion Agencies • Work with Midwest producers • Focus on small- and medium-sized producers
- 19. USDA – FAS- MAP • Partner with Foreign Agricultural Service (FAS), an agency of the United States Department of Agriculture (USDA) • Market Access Program (MAP) Funding, $200 million annually for approximately 65 different agricultural groups. • Promotional activities under FAS programs are carried out by Food Export-Midwest, other state regional trade groups, agricultural trade associations, and cooperative groups Missouri Agribusiness Marketing Forum
- 20. State Regional TradeGroups Missouri Agribusiness Marketing Forum
- 21. Our Midwest MemberStates Missouri Agribusiness Marketing Forum § Illinois Dept. of Agriculture § Iowa Dept. of Agriculture and Land Stewardship § Indiana State Dept. of Agriculture § Kansas Dept. of Agriculture § Michigan Dept. of Agriculture & Rural Development § Minnesota Dept. of Agriculture § Missouri Dept. of Agriculture § Nebraska Dept. of Agriculture § North Dakota Dept. of Agriculture § Ohio Dept. of Development § South Dakota Dept. of Agriculture § Wisconsin Dept. of Agriculture
- 22. Missouri and MidwesternProducts Focus on products that are value- added, consumer-oriented • Branded food products ü Snack Food ü Convenience Food ü Natural Products ü Specialty Foods • Private Label • Food Ingredients • Foodservice Products • Feed Ingredients • Other Value-Added Agricultural Products • Seafood Missouri Agribusiness Marketing Forum
- 23. Missouri Agribusiness MarketingForum In-Market Representatives • Brazil • Chile • China • Colombia • Hong Kong/Macau • India • Japan • Korea • Mexico • Southeast Asia • Taiwan • Vietnam • Canada • Caribbean • Costa Rica • France • Germany • Guatemala • United Kingdom • Middle East
- 24. Providing Missouri andMidwestern agri-business companies the services they need to achieve export success focused on: 1. Exporter Education 2. Market Entry 3. Market Promotion Programs and Services Missouri Agribusiness Marketing Forum
- 25. Exporter Education Tools thatprovide the framework for export success • Newsletters • Export Essentials • Food Export HelplineTM • Educational Seminars and Webinars Missouri Agribusiness Marketing Forum
- 26. Customized services thatidentify the right markets for products and establish relationships. • Buyers Missions • Online Product Catalog • Market Builder • Food Show PLUS!TM • Focused Trade Missions • Food Export Advisor Program Market Entry Missouri Agribusiness Marketing Forum
- 27. Upcoming Buyers Missions MissouriAgribusiness Marketing Forum Sweets & Snacks Buyers Mission May 23-25, 2016 Chicago, IL Midwest Buyers Mission August 1-4, 2016 Lansing, MI; Madison, WI; Chicago, IL NAFTA Seminar & Buyers Mission October 27-28, 2016 Chicago, IL
- 28. Branded Program 50% MoreInternational Marketing Market Promotion Missouri Agribusiness Marketing Forum
- 29. What are therequirements? • U.S. food & agricultural products only o minimum 50% US agricultural content • Products not covered by another industry group • Small companies only (<500 employees) or agricultural cooperatives Branded Program Missouri Agribusiness Marketing Forum What is the Branded Program? • Cost-share assistance for products sold in foreign markets • 50% reimbursement of eligible expenses
- 30. • Advertisements andpublications • Public relations and seminars • Promotions and demonstrations • International tradeshows - including limited travel costs • Certain tradeshows held in the U.S. • Package and label changes What are Eligible Expenses Missouri Agribusiness Marketing Forum
- 31. Missouri Agribusiness MarketingForum Application Process Pre- Qualification Application Application Approval Contract into the Program Go through with Activities Reimbursement claims Reimbursement check Apply Annually Apply Early
- 32. Questions? Missouri Agribusiness MarketingForum Visit www.foodexport.org for further information
- 34. MU Extension Howell CountyExtension 1376 Bill Virdon Boulevard West Plains, Missouri
- 35. University of MissouriExtension is a valued and trusted educational solution to improve the quality of life in Missouri, the nation and the world. Vision
- 36. Our distinct landgrant mission is to improve lives, communities and economies by producing relevant, reliable and responsive educational strategies that enhance access to the resources and research of the University of Missouri. Mission
- 37. The Morrill Actof 1862 established the University of Missouri as a land-grant university. The act gave grants of land to states with the provision that proceeds from the sale of those lands be used to establish public colleges or universities to educate citizens in agriculture, home economics, mechanical arts and other practical professions. History
- 38. The Morrill Actof 1890, which established Lincoln University, provided additional funds to ensure that the land grants were open to all citizens without regard to race. In 1887, the Hatch Act established agricultural experiment stations at land-grant universities. The University of Missouri currently conducts research to aid agricultural producers and to ensure a safe food supply at 16 research farms and centers around the state.
- 39. The Smith-Lever Actof 1914 established the Cooperative Agricultural Extension Service, a partnership among federal, state and county governments allowing universities to extend their programs to all people — not just students. 4-H became a part of Cooperative Extension in 1927
- 40. • Federal • State • Local Funding
- 41. Faculty and staff AmyPatillo, Ed.D. ASSISTANT EXTENSION PROFESSIONAL & COMMUNITY DEVELOPMENT SPECIALIST & CPD, HOWELL COUNTY, SW REGION Phone: 417-256-2391 Fax: 573-884-5787 Email: patilloa@missouri.edu Greg Carter Ed.D ASSOC EXTENSION PROFESSIONAL & 4-H YOUTH SPECIALIST CO, Email: CarterGA@missouri.edu Sarah Kenyon AGRONOMY SPECIALIST HOWELL COUNTY Email: kenyons@missouri.edu Willis Mushrush ASSOC. EXT. PROFESSIONAL & BUS. DEV. SPECIALIST HOWELL COUNTY Email: MushrushW@missouri.edu Howell County Extension
- 42. Brandi Sutherland NUTRITION PROGRAMASSOCIATE, HOWELL COUNTY, SW REGION Email: sutherlandb@umsystem.edu Randall Wiedmeier EXTENSION PROFESSIONAL & LIVESTOCK SPECIALIST, HOWELL CO Email: wiedmeierr@missouri.edu Stephanie Johnson NUTRITION SPECIALIST, HOWELL COUNTY Email: johnsonstephanie@missouri.edu Office support staff for MU Extension in Howell County Teresa Uminn COUNTY OFFICE SUPPORT STAFF Email: uminnt@missouri.edu Tammy Woodworth COUNTY OFFICE SUPPORT STAFF Email: woodwortht@missouri.edu
- 43. Jeff Barber, LEEDAP architect HOUSING & ENVIRON DES SPEC SW, GREEN CO AND INTERIM STATE SPECIALIST ARCHITECTURAL STUDIES Phone: 417-881-8909 Fax: 417-823-4818 Email: barberj@missouri.edu David L. Burton ASSOC EXTENSION PROFESSIONAL, CIVIC COMMUNICATIONS SPECIALIST Phone: 417-881-8909 Fax: 417-823-4818 Email: burtond@missouri.edu Patrick Byers ASSOC EXTENSION PROFESSIONAL & HORTICULTURE SPECIALIST, GREENE COUNTY Phone: 417-881-8909 Fax: 417-823-4818 Email: byerspl@missouri.edu Angie Fletcher HUMAN DEV & FAMILY SCIENCE SPECIALIST Phone: 417-967-4545 Fax: 417-967-4707 Email: fletchera@missouri.edu Also serving MU Extension in Howell County
- 44. Theresa Fossett REGIONAL COORD.FNP., SW REGION Phone: 417-886-2059 Fax: 417-886-2257 Email: fossettt@missouri.edu Stacy Hambelton AGRICULTURE BUSINESS SPECIALIST & CO PRO DIR, OZARK COUNTY Phone: 417-679-3525 Fax: 417-679-3209 Email: HambeltonS@missouri.edu Kay Lewis AFTERSCHOOL REGIONAL EDUCATOR Phone: 573-239-5224 Fax: 573-884-4225 Email: lewiskc@umsystem.edu Ted Probert ASSOC EXT PROF, DAIRY SPECIALIST, WRIGHT COUNTY, Phone: 417-547-7545 Fax: 417-741-6142 Email: ProbertT@missouri.edu Robert A. (Bob) Schultheis ASSOC. EXT. PROF. NATURAL RESOURCE ENGINEER, WEBSTER CO Phone: 417-859-2044 Fax: 417-468-2086 Email: SchultheisR@missouri.edu
- 45. If your businessor organization plans to apply for conservation program or grant funding through the USDA Natural Resources Conservation Service (NRCS) and you use an Employer Identification Number (EIN), also referred to as a Tax Identification Number (TIN), you will need a Data Universal Numbering System (DUNS) number and be registered with the System for Award Management (SAM). The DUNS number is required for any federal contract application and applicants must register with SAM to receive payments. If you apply as an individual and use your social security number as your EIN, you DO NOT need to obtain a DUNS number or SAM. New Requirements for Agriculture
- 46. All entities usingan EIN and doing business with NRCS must have a DUNS number and current registration in the SAM database. This requirement pertains to ALL financial assistance, easement programs, and watershed programs, as well as grants, cooperative agreements, and contribution agreements. NRCS requires applicants to obtain the required registrations when applying for programs. Applications cannot be fully processed without this information. There is NO cost for registration. If you already have a DUNS number, you do not need a new one for NRCS. Source: http://www.nrcs.usda.gov/wps/portal/nrcs/detail/ks/ programs/farmbill/?cid=stelprdb1185776
- 47. • Get ADUNS Number http://fedgov.dnb.com/webform/newReq.do • Register in System for Awards Management (SAM) http://sam.gov (legal name must be exact to previous NRCS records) Registration
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- 49. • State OfficeUniversity of Missouri College of Engineering • 13 SBTDC Offices Throughout the State through partnerships with colleges and universities • 18 Business Development Specialist located at University of Missouri County Extension Offices • Missouri Procurement Technical Assistance Center (MOPTAC) • Missouri Federal and State Technology Partnership (MOFAST) • Workforce Development/Career Options Missouri Business Development Network
- 50. Examples of CounselingServices • Budget Forecasts • Record Keeping • Licensing and Tax Requirements • Market Planning and Advertising • Financial Ratio Analysis • Human Resource Planning • Business Information and Demographics • Business Expansion, Acquisition and Merger • Developing the Business Plan • Sources of Capital • Business Feasibility Small Business & Technology Development Centers (SBTDC)
- 51. • How toStart and Manage Your Own Business • Developing the Business Plan • Developing Supervision Skills • Basics of Marketing • How to Give Exceptional Customer Service • Human Resource Management • QuickBooks Pro • Understanding Financial Statements SBTDC Examples of Programs
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- 53. an equal opportunity/access/affirmativeaction/ pro-disabled and veteran employer Willis Mushrush Business Development Specialist mushrushw@missouri.edu
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- 56. SBA’s Role • The U.S. Small Business Administra2on (SBA) aids, counsels, and assists Americans as they start, operate, and expand their businesses • Provides counseling and training • Increases federal procurement/contracting opportuni2es • Facilitates access to capital
- 57. • Small BusinessDevelopment Centers (SBDCs) • Free face-to-face business counseling & low-cost training • Help with: business plans, financing, marketing, and more… • Find one nearby: http://americassbdc.org/ Counseling/Training Resources
- 58. SCORE (www.score.org) • Freesmall business advice • Find a mentor in your area • Low, or no-cost classes • Downloadable business plan templates http://www.score.org/resources/tab-a Counseling/Training Resources
- 59. • Veterans BusinessOutreach Centers • Women’s Business Centers • Small Business Resource Centers • State/County Economic Development Centers • Procurement Technical Assistance Centers • Small Business Administration District Offices Counseling/Training Resources
- 60. Get the latestbusiness info at www.sba.gov • Easy access to info on major SBA programs (Counseling and Training, Loans & Grants, Contracting, etc.) • Enhanced search functionality • “SBA Direct” – customized information based on business type, geography and other needs • “Local Assistance” – find the nearest business resources in your community Online Resources – SBA website
- 61. Free Online Training • SBA Website (www.sba.gov): Learning Center link or http://www.sba.gov/training • List of courses constantly updated • Current lineup includes: • How to Write a Business Plan • Marketing 101: A Guide to Winning Customers • Introduction to Crowdfunding for Entrepreneurs Online Resources – SBA website
- 62. Doing Business with theGovernment
- 63. • U.S. Governmentis the world’s largest buyer of goods and services • Government contracting purchases total approximately $500 billion a year • Federal agencies required to establish small business contracting goals Visit www.fedbizopps.gov to find out about upcoming federal government contracts The Numbers
- 64. • Ensuring smallbusinesses receive a fair share of contracts • Set asides for certain types of small businesses (including Veteran-owned , Service Disabled Veteran-owned & Woman Owned small businesses) • Classes, workshops and counseling by SBA district offices and resource partners How the SBA helps with Government Contrac2ng
- 65. Small Business • 500employees for most manufacturing and mining industries • 100 employees for all wholesale trade industries • $5 million for most retail and service industries • $17 million for most general & heavy construction industries • $7 million for all special trade contractors • $0.5 million for most agricultural industries Doing Business with the Government
- 66. • Get Certified • Start Small • Don’t forget about sub-contracting opportunities • Find a mentor with experience in this area • Leverage available training • Build relationships Doing Business with the Government
- 67. • Veteran-owned (VOSB)and Service-Disabled Veteran-owned (SDVOSB) Small Business • Women-owned Small Business • Small Disadvantaged Business • 8(a) Business Development • Historically Underutilized Business Zone (HUBZone) http://www.sba.gov/contracting SBA Contrac2ng Cer2fica2ons
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- 71. Size of Business Ø For-Profit business located in the U.S. Ø Old size standard 500-1500 employees depending on industry Ø New Size Standard Ø Tangible Net Worth of Business/Applicant Ø Not more than $15,000,000 AND Ø Average Net Income of Business/Applicant Ø Not more that $5,000,000
- 72. In-Eligible Types of Businesses Ø Limited Membership Private Clubs Ø Purchase Par2al Ownership Ø Repay Owners for their Investment Ø Pay Delinquent Taxes/ Refinance Loan Ø Loan Packagers/Lenders Ø Passive Income* Ø Specula2ve Ventures Ø Pyramid Structures Ø Illegal Ac2vi2es Ø Poli2cal Ac2vi2es Ø Religious Ac2vi2es Ø Gambling Ac2vi2es Ø Sexually-oriented Business v Franchise varies
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- 74. 7(a) Loan Program Ø Most used SBA Loan Program Ø Wide range of financing needs Ø Funding for start-up businesses Ø Purchase exis2ng business Ø Expand/renovate facili2es Ø Finance working capital/receivables Ø Construc2on Ø Refinancing* Ø Original purpose must have been eligible Ø Must be on Unreasonable Terms Ø 10% improvement to cash flow Ø Same Bank debt must be current (29 days) in last 36 months Ø Must benefit the Borrower
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- 76. How much of the loan is Guaranteed? Ø Maximum Loan Amount: $5.00 Million Ø Maximum Guaranty Amount: $3.75 Million Ø Maximum Guaranty Percentage: Ø 85% up to $150,000 Ø 75% over $150,000 Ø Mul2ple loans permined up to $3.75 Million Guaranty Maximum
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- 78. How much will the Guaranty cost me? Approved Loan Amount Ø $150,000 or less = 0.00% of Guaranteed Amt. Ø $150,001 to $700,000 = 3.00% of Guaranteed Amt. Ø $700,001 to $1,000,000 = 3.50% of Guaranteed Amt. Ø Over $1,000,000 = 3.75% of Guaranteed Amt. on por7on over $1Million Short-term: Maturity 12 Months or Less Ø $150,000 or less = 0.00% of Guaranteed Amt. Ø Over $150,000 = 0.25%
- 79. Will the interest rate be too high? Ø Nego2ated between lender and borrower Ø SBA sets maximum allowable interest rates (prime + 2.25 to 4.75) depending on size of loan and maturity Ø Most are Fixed but in some cases it can be Variable Ø Lender chooses which Base Rate is used (WSJ prime, libor, or SBA peg) Ø If there is a Floor, must be a Ceiling Ø i.e. Ini2al Rate 6.0%, Floor 4% then Ceiling max = 8.0% Ø Current Rates published at Lenders Website or www.colsonservices.com
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- 87. 504 Loan Program Ø 50% - Loan with a Bank secured with first lien Ø 40% - CERTIFIED DEVELOPMENT CO. (100% SBA guaranteed debenture) secured with second lien Ø 10% CONTRIBUTION FROM BORROWER (10% minimum - 20% max depending on if “special use” or start-up) 40% 10% 50% Private Lender CDC Borrower
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- 96. USDA Rural Development • Mission: increase economic opportunities and improve quality of life in rural America • Assist rural individuals, communities and businesses • Financial and technical assistance
- 97. Funding Opportunities • SeveralPotential Funding Programs • Assist Different Types of Entities • For Profit/ Non-Profit • Public Bodies • Business or Community?
- 98. Rural Business Programs • Rural Energy for America Program (REAP) • Business & Industry Guaranteed Loans • Intermediary Relending Program • Rural Business Development Grants • Value Added Producer Grants • Rural Cooperative Development Grants
- 99. Rural Energy forAmerica Program (REAP) • Farmers and rural small businesses eligible • Purchase renewable energy system or make energy efficiency improvements • Grant is 25% cost share, up to $500,000 • Guaranteed Loans available
- 100. Rural Energy forAmerica Program (REAP) • Grain dryer replacement • Biomass furnaces (thermal conversion) • Geothermal (heat pump) HVAC • Anaerobic digesters • Solar • Small wind • Biomass pelletizer (mfg pellet fuel) • Energy Efficiency building improvements (lights, insulation, windows, HVAC)
- 101. Business & IndustryGuaranteed Loans • Guarantees up 80% of loans made by banks/ Farm Credit System lenders • Job creation/retention in rural areas • Most businesses are eligible (not ag production) • Loans up to $25 million
- 102. Business & IndustryGuaranteed Loans • Grain cooperatives • Seed/feed dealers • Meat processing • Retail • Manufacturing • Hospitality & resorts • Wineries • Greenhouses • Service businesses • Wholesale & logistics
- 103. Intermediary Relending Program • Eligible for public bodies or non-profits • 1% interest, 30-year loan • Intermediary uses IRP loan from USDA and matching funds to set up Revolving Loan Fund • Small business or community projects
- 104. Intermediary Relending Program ActiveRevolving Loan Fund Intermediaries in Missouri: • Missouri Agricultural & Small Business Development Authority (MO Dept. of Ag) • Meramec Regional Planning Commission (St. James) • Green Hills Regional Planning Commission (Trenton) • Resources for Missouri Inc. (RMI; Jefferson City)
- 105. Rural Business Development Grant • Grants made to public bodies or non-profit entities • Support the development of small and emerging business enterprises in rural areas • Funding for infrastructure or technical assistance
- 106. Rural Business Development Grant • Funding can be competitive • Average grant is $25,000 +/- • Competitive priority determined by population and economic conditions in the area, jobs created, and commitment from other funding sources
- 107. Rural Business Development Grant • Utility connection • Equipment • Street/road to project site • Feasibility studies • Technical assistance to small business
- 108. Value Added ProducerGrants • Value is added to ag commodity by producer • Change in physical state • Example: Milk processed into cheese, butter, and cream
- 109. Value Added ProducerGrants Other eligible Value-Added projects: • Locally produced ag food product marketing • Produced in a manner which enhances value (examples: Organic; free-range chicken eggs) • Product segregation (ex. Non-GMO) • Farm-based renewable energy
- 110. Value Added ProducerGrants Grant funds for: • Business planning (market feasibility, business plan) or Working Capital • $75,000 (planning)/ $250,000 Working Cap. • Dollar-for-dollar match (50% cost share)
- 111. Rural Cooperative DevelopmentGrant • USDA makes grant to rural cooperative development center (non-profit, state/local agency, university) • The center provides technical assistance, training, counseling to groups of ag producers • Help form cooperative, increase market share, identify new markets, increase profits • Missouri Enterprise operates rural cooperative development center (Rolla)
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- 114. Matt Moore 601 BusinessLoop 70 West Suite 235 Columbia, MO 65203 573-876-9321 matt.moore@mo.usda.gov