An online review of Foreign Agricultural Service initiatives and services

Trade Shows in a New Context: The Overseas Trade Support Branch

February 2008
Printable version

By Maria Nemeth-Ek

USA Pavilion showcasing U.S. products at SIAL 2006 Photo by Maria Nemeth-Ek, FAS Office of Trade Programs, Overseas Trade Support Branch

For years, the FAS Trade Show Office helped U.S. suppliers capitalize on foreign markets by handling U.S.A. pavilions at major trade shows and by holding its own exhibitions. In the past decade, FAS involvement in shows has changed dramatically, although the agency remains actively involved in shows that support the strategic plans of the agency as a whole and FAS posts abroad.

The FAS Overseas Trade Support Branch, which replaced the Trade Show Office two years ago, rarely handles trade shows directly. But it continues to provide the liaison, coordination, and information that U.S. suppliers need to succeed at trade shows, supporting the larger purpose of helping U.S. companies realize their export potential.

How FAS Adds Value to Shows
FAS has streamlined its involvement in trade shows, shifting the agency’s focus to an inherently governmental role. But the agency still performs key functions that are value-added and unique.

FAS no longer manages every detail of trade shows, such as direct recruitment and mass mailings. Instead, it relies on show organizers, primarily private firms, for all logistics. FAS partners with show organizers to assure quality of services for U.S. suppliers in the USA Pavilion. The organizers also bear the financial risk of the shows.

Exhibitors displaying Native American foods at ANUGA 2007 Photo by Maria Nemeth-Ek, FAS Office of Trade Programs, Overseas Trade Support Branch

FAS has also increased reliance on other partners, such as state departments of agriculture, NASDA (the National Association of State Departments of Agriculture), the four state-regional trade groups, cooperators in USDA’s Foreign Market Development Program, and U.S. food distributors.

FAS lends clout, information, and contacts that benefit U.S. participants. For example, the names USDA and the USA Pavilion are known and respected by foreign industries all over the world, giving companies that exhibit under them the cachet of brand-name recognition. In addition to facilitating U.S. companies’ exhibition in the USA Pavilion at certain shows, FAS also assists them in participating in the American Café at other shows, to which the companies provide samples.

FAS works with NASDA on show design, service enhancements, market information, pre-show preparation, sample certification, and buyer meetings. NASDA manages the supplier list of U.S. companies able and willing to export their products. The database of U.S. trade show exhibitors in the USA Pavilion at endorsed shows, has also migrated to NASDA. FAS tracks results via show evaluations from participants.

Who Benefits?
FAS focuses its trade show activities on emerging markets that have good growth potential, but where companies might not venture on their own because they need more guidance in tackling them, or because of the risks involved. But the agency does not neglect more mature markets, where our competition is intensifying.

Whether emerging or mature, reaching markets beyond our borders is crucial for the United States for several reasons. Competition in the U.S. domestic market is fierce, and the number of items vying for consumers’ attention is constantly growing.

On the other hand, approximately 95.4 percent of the world’s consumers live in foreign countries. The growth markets are overseas, not just for U.S. agriculture but for value-added exports and the jobs they create here at home – jobs in marketing, packaging, transportation, and other areas. So these exports and the jobs they sustain have a multiplier effect throughout the U.S. economy.

The Overseas Trade Support Branch plays its part in promoting this growth by serving as a navigator, guide, and catalyst for U.S. suppliers in foreign markets. The branch helps them to build personal relationships and partnerships with import agents and buyers. Small, minority, and women-owned companies especially benefit from the branch’s efforts, because two-thirds of all U.S. exhibitors are small and medium-sized companies that tend to have less experience and need more assistance than large firms in reaching foreign buyers.

Results!
Here are the overall results of FAS trade show efforts in calendar year 2007:

• USDA-endorsed international trade shows: 29
• Foreign buyer missions to U.S. shows: 8
• On-site sales: $54 million
• Projected 12-month sales: $759 million.
• U.S. show participants: more than 880
• Serious contacts reported: 8,420
• New products introduced: 3,128

Among the most successful shows for U.S. exhibitors was Gulfood 2007, held in Dubai, the United Arab Emirates. A total of 72 U.S. companies participated, garnering $7 million in on-site sales and $54 million in projected 12-month sales. The products that did best at the show were meat products (such as canned chicken and other poultry), frozen liquid eggs, snack foods, Mexican foods, frozen desserts, nuts (such almonds), cheeses, and ingredients (such as cheese powder).

Exhibitors and products at ANTAD 2007’s USA Pavilion Photo by FAS Agricultural Trade Office, Mexico City, Mexico

At ANTAD 2007, held in Guadalahara, Mexico, 45 U.S. companies participated, logging $1.3 million in on-site sales and $16 million in projected 12-month sales. The best products at ANTAD were drinkable yogurt, baking mixes, cheeses, deli meats, rice pudding, nacho products, poultry, onions, beef, popcorn, ice cream, energy drinks, snacks, soups, and pies.

At SIAL China, the 44 U.S. companies that took part registered $1 million in on-site sales and $38 million in projected 12-month sales. At World Food Moscow, 16 companies garnered $1.3 million in on-site sales and $3.3 million in projected 12-month sales. At SIAL Mercosur, 13 companies logged $495,000 in projected 12-month sales.

Trade Show Trends
Trade shows have consistently been rated among the most effective market development tools, providing excellent vehicles for entering new markets, developing and maintaining contacts with customers, introducing new products, finding agents, and checking out the competition.

However, shows are changing. Many events are becoming more focused on a single theme. Organizers are providing more value-added services (such as product information, matchmaking, web-based directories, chef competitions, and seminars). Shows are placing greater emphasis on product innovation and consumption trends, including food safety, wellness, organics, and natural products (such as sports or energy drinks, gluten-free products, omega-3 acids and antioxidants, and identity-preserved grains).

But despite changes in trade show trends and in FAS, the Overseas Trade Support Branch continues to secure a high level of service for U.S participants in USDA-endorsed shows, as evidenced by responses from exhibitors at recent shows:

The branch and offices abroad still work together to provide companies with counseling, briefings, contacts, and troubleshooting, and to assure that organizers deliver the services necessary, to help U.S. suppliers succeed in trade shows.

Maria Nemeth-Ek is the chief of the FAS Office of Trade Programs Overseas Trade Support Branch. E-mail: Maria.Nemeth-Ek@fas.usda.gov