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Miguel Garcia-Winder IICA Food Safety and Trade

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Miguel Garcia-Winder IICA Food Safety and Trade Miguel Garcia-Winder IICA Food Safety and Trade Conference Miami, FL, December 2011 Daniel Rodriguez Robert Reid Frank Lam Marvin Blanco. Marcos Sánchez Martine Guillaume Hernando Riveros Elieth Villalta. Danilo Herrera Ena Harvey. Marcelo Nuñez Alfredo Valerio. Share some insights regarding the USA to help in the decision making process to take advantage of the opportunities that this market offers for food products from IICA´s Member Countries. 50000 45000 USA 40000 Hong Kong 35000 Switz 30000 Can 25000 Br 20000 Arg 15000 10000 Col 5000 Mex 0 Bah GDP/capita (US$) 1600 1400 1200 1000 800 Million 600 400 200 0 USA CAN BRA MEX COL ARG CHN IND World Fact Book, CIA, 2011 Total population: 313 Total population: 438 million Life expectancy: 76 yr. million. Population growth rate: 1% Life expectancy: 83 yr. Demographics (2000) Population growth rate: ◦ White: 72% ◦ African-American: 13% ≤ 0.5% ◦ Hispanic: 11% Demographics ◦ Asian: 4% ◦ White: 53% Obesity rate: 34% ◦ Minimum wage: $7.25/hr African-American: 16% Inflation Rate: 3-3.5% ◦ Hispanic: 23% Poverty rate: 15% ◦ Asian: 10% Today (2000-2011) In 2050 http://www.bls.gov/eag/eag.us.htm http://www.census.gov/indicator/www/ustrade.html U.S. agricultural imports, year-to-date and current months Sep. Oct.-Sep. Change Item 2011 2011 '10-11 Percent Agricultural imports Imports (c.i.f.) 8,050 99,552 19 Imports (customs value) 7,666 94,487 20 Customs value Live animals 161 2,128 -1 Red meats & products 437 5,305 12 Beef & veal 261 3,009 6 Pork 105 1,254 10 Dairy products 208 2,856 12 Cheese 85 1,061 10 U.S. agricultural imports, year-to-date and current months Oct.- Sep. Change Sep. Item 2011 2011 '10-11 Percent Customs value Grains & feeds 810 8,495 12 Grain products 517 5,481 10 Oilseeds & products 594 7,491 46 Vegetable oils 485 6,166 46 U.S. agricultural imports, year-to-date and current months Sep. Oct.-Sep. Change Item 2011 2011 '10-11 Customs value Fruits & preparations 613 9,730 9 Fruits, fresh or frozen 451 7,629 7 Fruits, prepared or preserved 162 2,102 18 Fruit juices 167 1,843 44 Vegetables & preparations 702 9,998 10 Vegetables, fresh or frozen 487 7,231 10 Vegetables prepared/preserved 196 2,567 10 U.S. agricultural imports, year-to-date and current months Sep. Oct.-Sep. Change Customs value Tree nuts & preparations 173 1,777 28 Cotton & linters 0 12 133 Wine 388 4,734 12 Malt beverages 265 3,527 2 Essential oils 189 2,090 3 Cut flowers & nursery stock 116 1,525 6 Sugar & related products 471 4,816 25 Confections 121 1,387 9 Cocoa & products 366 4,685 9 Coffee & products 618 7,336 67 Rubber, natural 321 4,420 82 Country U$ million Country U$ million Australia 138 Dom Rep 138 Bahamas 51 Ecuador 1,294 Belize 28 Guatemala 1063 Brazil 1779 Honduras 490 Costa Rica 1162 Mexico 7450 Canada 7 348 N. Zealand 223 Chile 2185 Nicaragua 281 China 2623 Panama 117 Colombia 1610 Peru 725 Argentina 332 El Salvador 83 Total world 42,693 Year Average Total in Food at Food away Annual Food Home from home Expenditure 2000 $38,045 $5,258 $3,021 $2,137 2003 $40,817 $5,340 $3,129 $2,211 2005 $46,638 $6,111 $3,417 $2,694 2007 $49,638 $6,133 $3,465 $2,668 2008 $50,486 $6,443 $3,744 $2,698 2009 $49,067 $6,372 $3,753 $2,619 In 2010 consumers paid on the average $0.25 per serving of fruit and vegetables The Food Institute Report, Jan 2011 http://www.onemint.com/2011/07/12/how- much-money-do-people-spend-on-food/ Gehlhar and Regmi, 2005 Average daily usage: 3800 cal. Waste: 1/3 of total calories. 95-115 kg per capita per year. Mainly at the consumption stage (home-restaurants). Consumer culture. Guvstasson, et al., 2011. FAO 1. Conservative food spending: return to home cooking. Today 72% of food is prepared at home and 53% of population cook more than 4 nights. Restaurants sales expected to reach $604 billion. Fast and easy preparation. More people having breakfast. Increase interest in knowing about food: 53% of adults watch TV shows about food and cooking 2. Supermarkets will continue to grow as outlet for food purchases. 49% of food sales are taking place in supermarkets. 3. Consume American and local. More than 50% of supermarkets offer local or regional products. Expansion of farmer markets. Rescuing traditional USA cooking. 4. Greater concern with production practices and its relation to environment and social issues. Organic products. 20% yearly growth during the last 10-12 years. 2008: 3.2 billion U$ en sales (1.2 correspond to animal products). 4.1 million acres in USA destined to organic production. Social and ecological labels. 5. Health and food safety issues will dominate the future. Improved consumption of fresh fruits and vegetables: “Fresh everyday”. Potencial presence of chemicals first consumer concern. Reduced the consuption of procesed food. NO: preservatives, hormones, artificial flavors, etc. “Prescription eating” 52 million suffer from joints/muscles. 51 million have high cholesterol. 50 million have high blood pressure. 42 million suffer hearburn-indigestion 23 million suffer diabetes. 17 million suffer osteoperosis. Natural functionality: Protein the “new star”. Healtier food in schools. 6. Consumption of “ready to eat” food will continue to expand. “There is no time to cook from scratch”. Approx. 50% of the consumers purchase food to take home at least once a week. 7. Niche and ethnic markets continue to expand. Change in the population composition. Y-Generation desire to experiment. Gourmet taste. Special “treats” (chocolate, cookies, wine). Identifying them is key to success: http://www.iica.int/Esp/organizacion/LTGC/a gronegocios/Publicaciones%20de%20Comerci o%20Agronegocios%20e%20Inocuidad/The%2 0United%20States%20Market.pdf Some of the regulations are: ◦ US Federal Food Drug and Cosmetic Act. ◦ Food Safety Modernization Act. ◦ USA Public Health Security and Bioterrorism Preparedness and Response Act. ◦ Product admissibility. ◦ Pesticide residues. ◦ Marketing Orders ◦ Quality standards. ◦ Food Labeling. ◦ Acidified and low acid canned foods. Some of the regulations are: ◦ Good manufacturing practices. ◦ Special certifications. ◦ Tariffs. ◦ Import quotas. ◦ Trade mark registrations. ◦ Pallet certification. ◦ Packaging. 1. Register as an exporter with the FDA according to what is determined by the “Anti Bioterrorism Act”. 2. Comply with the requirements of previous notification according to what is requested by the “Anti Bioterrorism Act”. 3. Be sure that wood packaging materials meet ISPM 15 norm. 4. Verify that the products are admissible into the USA. 5. Assure that all the products meet the requirements related with the maximum level of pesticides residues permitted in food and phytosanitary requirements. 6. Verify the existence of Marketing Orders and comply with them if they are active. 7. Verify the existence of quality standards especially in the case that the buyer is requesting specific grades. 8. Know the tariffs that must be paid by the product at the time of entrance into the USA. 9. Identify the existence of import quotas into the USA. 10. Register the trademark in case that there is interest to sell the product with your own brand. 11. Meet the requirements set by the National Organic Program of USDA if you desire to sell your product as organic. Institutions. Entrepreneurial Policy. mentality. Innovation. Regulations. Value Added Technical New business models. support. Investment Export services. Public Sector Private Sector Private- Public Partnership Export credit and finance Public Sector Private Sector Miguel Garcia Winder Agribusiness and Commercialization Program Inter-American Institute for Cooperation in Agriculture (IICA) 5757 Blue Lagoon Dr. Suite 200 Miami, FL, 33126 [email protected] 305-260-9010 http://www.census.gov/population/www/pop- profile/natproj.html Life style. Income. Education and tradition. Economic conditions. Health. Environmental concerns. Social responsibility. Almost an infinite number of possibilities http://www.onemint.com/2011/07/12/how- much-money-do-people-spend-on-food/ 6 5 4 95-95 3 ´03-´05 2 1 0 Peppers Asparagus Cauliflower Gn peas.
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