Fresh From Florida How to Export to Canada Ag Export Webinar

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1 Fresh From Florida How to Export to Canada Ag Export Webinar

2 Reasons to Export to Canada 1. Geographic proximity Florida s #1 export market 2. Duty free trade on most products under NAFTA 3. Similar tastes and trends 4. We are in season when Canada is not

3 Florida Exports to Canada Total U.S. agricultural exports to Canada: $21 billion (15 per cent of total U.S. food & agriculture exports) Florida Exports: 1. Fresh fruits & nuts ($61 million) 2. Fresh vegetables ($42.3 million) 3. Fishery products ($19.1 million) 4. Prepared foods ($18.9 million) 5. Live trees & plants ($8.2 million) 6. Meat ($2.8 million) 7. Dairy products ($608,357)

4 Florida Exports to Canada Most Popular Florida Commodities: Grapefruit 19%, Snap Beans 14%, Bell Peppers 9%, Sweet Corn 9%, Celery 8%, Strawberries 7%, Squash 6%, Eggplant 6%, Radish 4%, Blueberries 3%, Tomato 3% The months in which most Florida commodities are shipped to Canada depends on the seasonality of our crops. For example, grapefruit season typically picks up in November, peaks in February/March, and is usually over by May. However, peak production for sweet corn usually occurs in April/May.

5 Major Retail Operations within Eastern Canada Sobey s /Empire Company Ltd. Metro Inc. Walmart Canada Costco Wholesale Loblaw Companies

6 Market Overview Opportunities: Value- Added Produce Horticulture Market Trends Value: quality goods at a good price Health & Wellness: increase in gluten free products Quality & Freshness Convenience: easy to use, pre-cut, ready to go products Pleasure & Ethnic Foods: snacks, treats etc Ethical Buying: concern about GMOs; organic is preferred

7 Potential Costs: Label conversions Broker fees Shipping/Transport Customs/duties Listing fees Marketing Market Overview Challenges Financial: High cost of doing business (listing fees, broker fees, distributor markups, exchange rate) Structural: Consolidated retail market, fewer buyers Geographic: Dispersed population, high marketing and distribution costs Quotas: Restricted imports in some categories (dairy, poultry, eggs)

8 Steps to Export - Supplier - Customs - Importer/Broker/Distributor/ Wholesaler/Re-packer - Retailer/Hotel/Restaurant/ Institution

9 Documentation Requirements NAFTA certificate: For products with preferential tariff treatment North American Free Trade Agreement- NAFTA Commercial Invoice Cargo control document Canada customs coding form Health certificates, or other federal government forms (e.g. meat inspection certificate) Visit the Canadian Food Inspection Agency (CFIA) s automated import reference system (AIRS) for specific import requirements

10 U.S. Exports to Canada For more information go to: Foreign Affairs, Trade and Development Canada US - Canada RCC Canadian Phytosanitary Certificate Market Trends & Export Opportunities Canada Exporter Guide Gain Report

11 Resources USDA Foreign Agriculture Service Offices around the world carry out constant research to determine what types of U.S. agricultural products are in demand in each country. They report purchase statistics per item, demographic information on who is buying each type of U.S. product, where they are being purchased and other advantages and disadvantages for U.S. exporters in their specific countries. We highly recommend that you familiarize yourself with their online site:

12 Resources The Department s role with Florida exporters is to work with you from beginning through to your final shipments of products into Canada and you receiving your payments. We also issue a trade document called a Certificate of Origin and Free Sale. This document merely reports the country of origin of your products and states that your products are freely sold within the USA. For further questions Or call: (850)

13 Resources We recommend that you: 1. Familiarize yourself with the FAS website mentioned before. 2. Start to develop trade contacts with potential buyers by attending U.S./Canadian trade shows and missions. Experience firsthand the level of interest in your agricultural product(s) in that country. 3. Get yourself into the FAS Trade Leads (sales leads) program ( ) as well as working with the nearest World Trade Center to you (Miami, Ft. Lauderdale, Orlando, Tampa Bay and Jacksonville). You can never carry out too much research before starting with your export deal. 4. Get in touch with the Florida Export Finance Corporation for assistance with export financing. Contact them at: (786) , Their location address is: 1400 NW 33 rd Street #200 in Doral, Florida Join the Florida Department of Agriculture and Consumer Services FRESH FROM FLORIDA Program which offers legitimacy as a supplier of Florida commodities. To learn more about this, contact Joan Strickland at: or call her at: (850) We look forward to working with you and assisting you in entering new markets!

14 Obtaining a Phytosanitary Certificate Prior to obtaining a phytosanitary certificate, you need to determine the eligibility requirements for the destination (state or country). You can do this by contacting your local FDACS Division of Plant Industry district plant inspector. You can find their contact information at Locations. To obtain a phytosanitary certificate, you must first establish an account in the USDA Phytosanitary Certificate Issuance Tracking System (PCIT). The PCIT system is used for submitting applications for both state and federal Phytosanitary Certificates. To set up an account, go to the Welcome to PCIT website - and click on the New to this site? button. You will be prompted on how to establish the account. Once you establish an account with in the PCIT system, you will need to submit an application for a phytosanitary certificate. On the Welcome to PCIT website, click on the option for Create Application without Template. This will take you into the application process.

15 Obtaining a Phytosanitary Certificate Continued Click on the appropriate certificate type. This will likely be a PPQ Form 577 (federal phytosanitary certificate for foreign destinations) or a state certificate (for other destinations in U.S. states and territories). Input the appropriate information in the General, Export and Shipping, Commodities and Attachments sections. After entering the information, click on the Submit Application button and the application will be sent to the inspector office that you selected. Upon receipt of the application, the local inspector will contact you to set up a date and time to inspect and certify your plants or plants products. The inspector will provide a phytosanitary certificate to you when the plants/products pass the inspection. The certificate is normally valid for 30 days after the inspection date and the original should accompany the shipment. If you have any questions or need additional information, be sure to contact your FDACS DPI inspector for assistance and guidance.

16 Obtaining a Phytosanitary Certificate Continued In addition to phytosanitary certificates there are other export certification options. These include: Canadian Blueberry Certification Program (trapping) U.S. Canadian Greenhouse Certification Program Products which do not need a phytosanitary certificate. Important Note: Phytosanitary Certification for exports to Canada may require multiple certification inspections and/or witnessing of chemical treatments depending upon the commodity. It is important to contact your local DPI inspector in advance.

17 Florida Small Business Development Center Network (FSBDCN The FSBDCN in partnership with organizations like UF/IFAS can help small farmers with the technical assistance needed to ensure the viability of the farm business while meeting the challenges of tomorrow. The FSBDCN has developed the knowledge and resources to assist small business owners in developing and executing international trade strategies. Through one-on-one consulting, training and workshops, customized research, and access to a network of trade professionals, we provide clients with the tools to successfully and profitably navigate the world of international trade.

18 Training and Services Farming for Profit: Growing Your Bottom Line Succession Planning for Family Farms International Trade: The Basics International Trade Certificate Program (6 sessions) Custom International Market Demand Research NO COST One-on-One consulting

19 SUSTA The Southern U.S. Trade Association is a regional trade group of the U.S.D.A. It was created to assist U.S. companies based in the Southern U.S. and Puerto Rico in promoting their U.S. produced agricultural commodities.

20 SUSTA Region

21 Market Access Programs Brand Promotion Direct financial assistance of up to $300,000 per year Promotes your brand internationally Graduation requirement International Marketing Program Events managed by activity managers Subsidized trade mission/event participation Business match-making Chefs/interpreters provided as necessary

22 Brand Promotion Reimburses up to 50% of some international marketing and promotion expenses. Examples: Eligible tradeshows Exhibit costs Travel to international shows In-store demonstrations and displays Promotional items Required label/packaging changes Requests of $2,500 - $300,000 First year applicants with no export experience maximum request of $25,000 First year applicants with prior export experience maximum request of $50,000

23 Brand Promotion Eligibility requirements Be small per Small Business Administration guidelines, or be a farm cooperative Export a product that is at least 50% U.S. agricultural origin by weight Have sufficient uninterrupted supply for international buyers Market a product under a brand name Label the product as "Product of the USA" or "Made in the USA" May use Fresh From Florida or From Florida USA Pre-Qualification form Application information North American Industrial Classification System Code Dun & Bradstreet number Total sales figures Brand names/products Country information Must provide tax returns $250 application fee Upon approval, 6% administrative charge of amount requested

24 Apply Annually for Brand Promotion

25 International Marketing Program Trade missions (inbound and outbound) Trade shows In-store promotions Market research Trade seminars Hotel and restaurant promotions Marketing campaigns Long-term initiatives

26 International Marketing Program Create a profile on SUSTA website Pre-Qualification form Select an event from SUSTA Events page Register for the event online No graduation requirement

27

28 1) Sign into MySUSTA to access 2015 Prequalification 2) Complete 2 page Pre-qualification form 3) Once application has been processed and if approved, you can start registering for 2015 events

29 Success! Florida Horticulture Company Continues Growth in Canada In October 2014, representatives from a Homestead, Florida-based company traveled to Montreal, Canada to exhibit in the SUSTA pavilion at the Fédération Interdisciplinaire de l Horticulture Ornementale du Québec (FIHOQ). The Southern United States Trade Association (SUSTA) sponsored the pavilion through the Market Access Program (MAP) Generic. At the event, the Florida company booked $200,000 in sales, and future sales as a result of this show are expected to be $250,000 over the next 12 months. They also identified three likely new distributors.

30 Upcoming Events in Canada 2015 Canada Outbound Trade Mission to Toronto Toronto 08-Sep-15 to 11-Sep Canada Seafood Outbound Trade Mission Toronto, Ontario, Canada 05-Oct-15 to 08-Oct FIHOQ Horticulture Trade Show Montreal, Quebec 28-Oct-15 to 30-Oct-15

31 Questions? Florida Department of Agriculture and Consumer Services Marisol Alvares Liz Gablehouse Whitney Lett Steve Hildebrandt FSBDC at the University of North Florida Katie Arroyo

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