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Indiana popcorn business is model for ag exporters

By NANCY VORIS
Indiana Correspondent

FRANCESVILLE, Ind. — Gutwein Gourmet Popping Corn is a small family operation. Harvey Gutwein himself answers the phone on the farm started in 1906 by Philip Gutwein Sr.

The farm expanded with a milling operation, and in 1998 the family got into the popcorn business.

Popcorn is sold over the Internet, in specialty stores, for school and church fundraisers, through a grocery distributor out of Chicago and by semi loads to be packaged under another name. They even took a small step into exporting, with a few shipments to Japan.
In 2006, the Gutweins had 600 acres of popcorn. This year, the acreage tops 1,450.

Family farm, large production, forward-thinking: That’s the type of business the Indiana State Department of Agriculture (ISDA) targeted for a recent seminar, “Getting Started in Exporting.”

The workshop offered training and resources to assist Indiana food and agricultural companies with exporting efforts, with the goal to create sales growth and export success for Indiana companies.
Sessions were offered relating to food and hardwoods exports.

“By offering exporting tools to our agricultural industry, we are able to create opportunities and build on existing partnerships in the international marketplace that our trade missions were able to establish,” said Andy Miller, ISDA director.

“Our state has taken a true leadership role in marketing Hoosier ag products abroad, and we need to continue to build on those early successes.”

Harvey Gutwein looks at the growth and prosperity in developing Asian countries such as Japan, China, India and Vietnam, and said citizens are more able to afford imported food. He said his company may not have the production capacity now for extensive exports, but he wants to be ready.

“We want to know where the opportunities are and where the market is to be there if we have a product,” he said.
Dennis Lynch, global food marketer and export counselor with the Food Export Association of Midwest USA, led the export workshop for ag producers and food distributors.

Lynch has counseled hundreds of food companies throughout the country on export-related topics.

Those looking to start exporting should do their homework and understand the exporting business, he said.

To be export-ready, he suggested they take the export readiness test at www.fas.usda.gov, click on “Export Basics,” and click on “Are You Ready to Export.” The site includes a tutorial on planning called “Recipe for Export Success.”

Some of the actions related to export readiness include:
•Established relationships with appropriate export assistance and service providers and intermediaries
•Up-to-date calendar on events such as trade shows, conferences, seminars, etc.
•Production capacity and appropriate staffing to meet the increased demands of product and time upon your company
•Basic familiarity with options for financing and payment mechanism for trade
•Ability to meet and adapt to market regulations or preferences

Lynch also suggested www.export.gov as a valuable website for information on export regulations, including free trade agreements and duties in other countries.

This farm news was published in the June 6, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.
6/6/2007