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Iowa business delegation finds Southeast Asia hungry for pork
By DOUG SCHMITZ
Iowa Correspondent

MANILA — Members of an Iowa trade delegation to Vietnam and Philippines last week said people in the growing economies of Southeast Asia are hungry for Iowa-grown meat – and for expanding those markets.

“These are economies that are going to be growing and developing, and we want to build a pathway for trade to about 180 million people,” Iowa Farm Bureau President Craig Hill said in a March 1 teleconference from Manila, Philippines.

Led by Iowa Lt. Gov. Kim Reynolds, the 20-member delegation included trade representatives of other commodity groups and Iowa manufacturers, which held meetings with government and business officials, who have seen growing markets for Iowa exports.
“We’ve had a very productive trip,” Reynolds said Friday morning. “The mission has really been to strengthen relationships and existing partnerships, and look for economic opportunities between the state of Iowa and what we consider are two growing countries in Asia, and that’s Vietnam and the Philippines.”

To date, Iowa pork is exported to 34 nations, with trade in the Philippines alone rising by 16 percent last year. According to Reynolds, about 75 percent of the Vietnamese diet is made up of pork products, inviting increasing export opportunities for both nations.

“The trade mission really has been dual-track; it’s had two components,” Reynolds said. “One that’s been centered on the promotion of Iowa pork and agricultural exports, and the other has been centered on Iowa businesses that are seeking to expand trade and sales in these two growing countries.”

Visits to Hanoi, Ho Chi Minh City and Manila were a part of the trade mission’s agenda, promoting Iowa to potential economic partners, with Iowa manufacturers participating in meetings specific to their market entry or expansion needs.

“These missions do have a lot of value,” said Jeff Hamilton, president of ESP International of Cedar Rapids. He added it takes time to develop relationships and learn the culture of these countries. “The right people in the right spot (are) valuable.
“Their food safety interests are quite minimal. They’ll want to improve those conditions, so we want to be in play to assist with that.”

The Iowa Economic Development Authority’s (IEDA) International Trade Office, which helped coordinate the mission, said Vietnam and Philippines have a combined population of nearly 200 million people. With the South Asian markets growing at more than 8 percent per year, the IEDA noted they have a need for quality products, innovative technologies and new business opportunities.
“What we have to offer, as far as export to them,” Hamilton said, “is some of the technological information they are looking for and how to compete on a global basis.”

Currently, the United States and Vietnam have a bilateral trade agreement and are parties to the Transpacific Partnership Free Trade Agreement.

“This mission will generate new trading relationships with Vietnam and the Philippines,” Reynolds said. “Both countries have shown tremendous economic growth and continue to be open to new business opportunities. It makes sense for us to have a presence there and I am pleased to be leading this effort.”

What’s more, Iowa Gov. Terry Branstad said Vietnam and Philippines are burgeoning markets for Iowa businesses, especially when it comes to pork products and manufacturing. “Trade missions like this one open Iowa companies up to new growth opportunities in expanding markets outside of the United States,” he said.
As Iowa’s fifth-largest beef customer, Vietnam is about the size of the state of New Mexico, with a population of 91 million, Hill said. But only 17 percent of the land is suitable for growing crops, “so they have little ability, little capacity to produce for themselves,” he explained, adding that while the people raise some livestock, their feed grain supply is insufficient to meet their protein needs.
“Most of the hogs that are raised in Vietnam come from backyard, family operations,” he said. “At the same time, there is a huge demand for more beef and pork, better protein of all kinds.”
Greg Lear, Spencer producer and president of the Iowa Pork Producers Assoc., said some Southeast Asian markets highly value certain parts of the pig, which are often ignored by American consumers – namely the feet, snouts, tails and ears. “We’ve learned on this trip that hog ears from the Swift plant at Marshalltown (Iowa) are a big sales item in Asia,” Hill added. “Eardrums are considered a delicacy.”

Lear said that’s one of many reasons “it sure appears that this is our opportunity to start laying the foundation for long-term relationships. We look forward to seeing what is built on top of this exciting opportunity that we had to come to the Philippines and Vietnam, and see what is going on in these countries.”
Reynolds said as the middle class grows in Philippines and Vietnam, these Southeast Asia consumers “will want that quality product, that name brand, and Iowa products really provide that for them. So it’s a great opportunity for Iowa.”
3/6/2013