Moving On from the U.S. Market

In this month's instalment learn about some of the benefits of exporting.

By Howard Gordon, Branded Program Manager, Food Export-Northeast

The benefits of exporting for U.S. companies are expanding and have a major impact on a company’s growth. Here are some reasons why pursuing a foreign market is important: 

1. There’s international demand for U.S. agricultural-based products.  

The world’s purchasing power is large. According to the Small Business Administration, nearly 96% of consumers live outside the U.S., and two-thirds of the world’s purchasing power is in foreign countries. When a product reaches mature or declining stages of its lifecycle in the U.S., there may be an opportunity that provides a new life elsewhere. By targeting a foreign market where a product can be introduced, businesses have the potential to extend their lifecycle and profits. 

2. Exporting improves a company’s competitive advantage. 

U.S. small and medium businesses that export outperform their non-exporting counterparts with revenue increases and improved labor productivity. The bottom line is that by engaging in exporting, there is an opportunity to outperform the competition. 

3. Exporting is profitable for businesses and employees.  

Not only is exporting beneficial for businesses themselves, but it makes a difference in the lives of American workers. These companies develop the potential to grow sales faster, create more jobs, and increase wages for their employees compared to non-exporting companies. 

4. Competing worldwide reduces risk. 

Entering the global marketplace improves a business’s chance of competition at home and overseas. It also allows them to gain insights into industry trends and developments, putting them in contact with leaders in key markets. Exporting companies are therefore more prepared to face fluctuations in the U.S. economy and stay in business long-term. 

5. Support available. 

Exporting may seem daunting, but there are numerous resources to help small- and medium-sized companies start their journey. Exporting is more achievable now thanks to the information available online, improved logistics channels, free trade agreements and export assistance through the U.S. government and its partners, including the Food Export Association. 

When a company starts working with Food Export, they are not required to be exporting on day one. Food Export’s programs and services are designed to help small- and medium-sized exporters at every stage of the exporting process. This can range from meeting international buyers for the first time to establishing a presence abroad. 

Food Export’s Branded Program is a cost-share funding program that provides financial assistance to help U.S. food and agricultural exporters promote their products in international markets. Participants in this program receive 50 percent cost reimbursement for various pre-approved marketing and promotional expenses overseas. 

Companies that only submit plans for trade shows held in the U.S. may receive Branded funding for up to two years. At that time, they must demonstrate international activity to continue receiving funding for U.S. activities. Participation in the Branded Program is reviewed year-to-year by the Branded Program Manager and failure to demonstrate international activity can affect future participation in the program. 

For more information visit the Branded Program page.