Exporting Is Good Business for Family Farms and Large Operations
In partnership with: North Dakota Department of Agriculture
Exporting provides a literal world of opportunity for North Dakota farmers and food producers seeking to broaden their customer base.
While it might seem daunting to the inexperienced, the North Dakota Trade Office (NDTO) offers an abundance of services to make the process easier.
“North Dakota is one of the breadbaskets of the world, but as a small, rural state, we produce more than our population consumes,” says Drew Combs, executive director of the NDTO. “Agriculture is king when it comes to exporting, and our office is here to help. We have seasoned professionals to walk you through the entire process and make the transition easier.”
The organization helps clients prepare paperwork and perform other administrative tasks, learn greater cultural intelligence, locate and communicate with buyers, and complete sales. In addition, it maintains a database, offers trade missions and hosts other events in-state and abroad to connect producers and buyers.
It even facilitates a grant program for specialty crops and another for the Small Business Administration’s State Trade Expansion Program (STEP), which is designated to help American exporters, Combs says.
“If you want to participate in a trade mission, you could apply for and potentially get a grant to cover costs such as airfare, lodging and translation services,” he says.
After a couple of successful international transactions, exporting isn’t as daunting. “It may have a couple of extra layers, but like any other transaction, it’s about customer service. It’s that simple,” Combs says.
Advantages include a broader customer base, more leverage determining products to grow or produce, greater flexibility and increased return on investment.
Adams Family Farm of Grand Forks has seen benefits growing and processing specialty cranberry beans exported to South America, the Middle East, Spain, Italy and more.
“Cranberry beans have a niche market, partly because they’re not easy to raise,” says Chris Adams, who partners with his wife and parents to manage their 10,000-acre farm. “Every year, the countries that buy our beans vary. Our biggest customers have been South American countries, but 80% of cranberry bean consumption is in the Mediterranean region.”
See more: How Exports Boost North Dakota State Agriculture and the Economy
Cultivating Relationships
Building relationships came naturally for Alfredo and Tabatha Lugo, owners of The Jolly Jalapeno salsa company in Emerado.
The Air Force veterans got their start sharing their products with fellow servicemen and women. Now, they routinely ship to deployed military members all over the world.
“Personal contacts and word of mouth have driven our export business. I like knowing we’re providing our customers a taste of home,” Tabatha Lugo says. Combs agrees that relationships are essential.
“There are lots of hungry people in the world, and in many of those countries, the handshake system is the method of trade,” Combs says.
Adams stumbled upon exporting by accident. He attended The Executive Program for Agriculture Producers (TEPAP) hosted annually by the Texas Extension Education Foundation, where he met another North Dakota farmer who introduced him to the process and became his mentor.
“I jumped in head first,” says Adams, who attended his first NDTO trade mission with his mentor in 2016, three weeks after TEPAP.
“There are economic advantages, but I do it primarily because it’s cool,” he says. “It’s helped me grow personally and professionally. It’s humbling to know I’m providing produce to a market that needs it while building international relationships. International trade is all about building relationships. Here, trade is usually more anonymous.”
To learn more about international trade, visit the NDTO’s website, ndto.com, or call (701) 929-6703.
See more: Grand Farm in North Dakota Looks to the Future of Agriculture