Professional Documents
Culture Documents
7.
8. 9.
Great opportunity; high standards of doing business Fierce competition (bigger capacity / lower costs) Regulations are strict; price of non-compliance is high Identify, clarify, document buyers expectations Communicate, e-mail within 24 hours Specify terms of sale, deadlines, quality specs Deliver on time and exactly as ordered Follow-up, address issues Buyers know each other, talk
Tips
ABC is backbone of sourcing A = Attractive New products B = Better Quality products C = Cheaper products Right Certifications Consistency in supply of right quality& quantity at the right time quality includes food safety, consumer health, and sustainable production with care for the environment, animals and human beings Increasing demand for Fairtrade and Organic produce purpose of Fairtrade is to help disadvantaged farmers acquire and retain export markets more expensive product, but consumers willing to pay a premium to ensure better wages and social conditions to rural poor Transport: sea-transport preferred when possible
5
Requirements for Entering the US Market For Fresh produce ISPM/ GlobalGAP
Plant Health/Phytosanitary Requirements: sanitation practices to avoid food-borne illness and maintain food safety Environmentally responsible production practices Pesticide residue regulation: MRLs Traceability Labelling Worker Treatment
FDA Requirements
In 1990, the Nutrition Labeling and Education Act went into effect. The USDA and the FDA designed the requirements so that consumers would have useful information about the food they eat. According to the Nutrition Labeling and Education Act, all food labels must contain the following information:
Common name of the product Name and address of the products manufacturer Net contents in terms of weight, measure or count, and: Ingredient List, that is listing the ingredients in descending order of predominance and weight
Nutrition Facts each package must identify the quantities of specified nutrients and food constituents for one serving
Packaging Sells!
Buyers do form opinions about contents based on packaging appearance But it is not only the Outside that counts!!
9
Marketing Tools
Top Quality product + sustained quality standard as agreed upon Consistent supplies of volume High visual appearance/packaging Adhere to specifications of buyer Communicate Honestly
10
Trade Shows
Home Dcor
www.africancashewalliance.org
Shea
Natural Products Expo (East and West), In-Cosmetics, Sustainable Cosmetics Summit, Cosmetics Suppliers Days Peanuts and Tree Nuts Processors Association, Fancy Foods Show, SIALSalon International de lAgroalimentaire, ANUGA (Germany)
www.tastafricanow.com
www.watradehub.com
www.africa-now.org
www.globalshea.com
www.wassda.org
Rechanneling: Cashews
2.5 million of small farmers $0.20-0.60/kg captured locally Channel 3 - Local processing creates higher wage jobs Investment needed Warehousin g and drying locally Cracking, sorting, grading Investment needed $13-17/kilo end market price No source differentiation
Packaging, shipping create further economic opportunities Small local markets Limited market potential
Local value addition and job creation 200-250K jobs at peak Need access to competitive inputs, certifications, buyer linkages
Financial Requirements
Trade Finance Working Capital Mid/Long Term Investment Capital (joint ventures, patient capital, social equity) Business Plans Financial Structuring Negotiations, Terms, Rates Management Training Product costing and pricing
www.watradehub.com