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September 28, 2000 International
market provides Jessica
Tarbox DES MOINES, Iowa -- The recent controversy over the genetically altered corn products in Taco Bell shells generated a slew of new questions about the food we eat and how it affects Iowans. But in this case, Iowans also have to look beyond the state borders. What about the food we export to other countries? How will those countries feel about the possibility of receiving genetically altered food? What about the general reputation of our exports? These questions may not have definite answers, but there is a certain amount of assurance of our place in the global marketplace coming from within the International Marketing Division of the Iowa Department of Economic Development. The case of the genetically modified taco shell will not mean the ruin of Iowa's international trade. Iowa's place in the global trading scheme is steadily rising and many international markets are expanding. Mark Fischer, marketing manager for meat, livestock and genetics, said that in 1985, less than 1 percent of the beef produced in the United States was exported, but by 1999 that number had risen to 13 percent and by 2010, he predicted, that number will be close to 25 percent. "There is an interest and desire for that (exporting) to grow," Fischer said. "More and more people are recognizing that this is a growth market." The International Marketing Division extends a hand to both Iowa exporters and to countries that desire the products Iowa generates, of which many are high-quality, highly desirable products that maintain an excellent reputation, he said. Within three separate sections -- meat, grains and grain co-products, and value-added, or processed, food -- the division matches international needs with willing and able Iowa companies. Last week, Rex Welling, marketing manager for the Asia/Pacific region, accompanied representatives from six Iowa companies to northeast China, to "look into expanding products in the market ... and to facilitate trade," he said. The six companies included a seed processing equipment company, two grain drying companies and a protein feed additive company. Welling said this region was a natural choice for trade between such companies and China. It is the "breadbasket of China" and when companies sell manufacturing equipment to this area, some of China's unemployed can be put to work cultivating and harvesting the land. Fischer was also in northeast China in late August on a trade mission. "The region we were in was in many ways similar to Iowa," Fischer said. "It is a corn producing area of China, with the gently rolling hills you'd see here. But most of the field work is still done by hand ... It has a long way to go to becoming mechanized and advanced." Trade between Iowa and China, and other countries, provides assistance and advancement in more ways than one. In addition to purchasing manufacturing equipment to help create jobs and boost the progression of underdeveloped regions, the Chinese are also looking to improve their diet, which, in the case of the northeast region, means increasing meat consumption. The Japanese, although not as underdeveloped in some regions, are also looking to improve the quality of the foods they eat. Taiwan, the Philippines and Korea are a market for this betterment of nutrition as well. For this, international buyers often turn to the Midwest and grain-fed cattle. "There is very high-quality beef coming out of the Midwest because we are blessed with high-quality corn," Fischer said. Each of the countries Iowa pursues trade with, however, has a different market and a different desire for the superior beef the state, and the Midwestern region, produces. Japan, for example, is very quality conscious, and the cattle raised in Japan, due to limited land resources, did not always produce the highest quality meat. Consequently, meat prices rose to a price as high as $500 a pound, whereas the United States was shipping in its products at $10 a pound. Over the last 12 years, Japan has increased the amount of exports from the United States, in order to change the quality of its diet and offer products at a more reasonable price. China has a different situation, in that the general income level does not allow for consumers to buy expensive cuts of meat. But based on preferences and preparation, many of the cuts that Americans would consider to be less than desirable are the cuts that the Chinese consider to be not only edible, but also as the premium product, Fischer said. "It's important that we look at each country individually because each country has a unique set of challenges," Fischer said. "We look at stability of government, evaluation of economics. Each country has different needs, and we look at which U.S. product would fit that niche." Welling said there is a lot of room for Iowa companies to expand within this growing international marketplace, because while many companies are excited and eager to expand trade, others struggle with the idea. "Many Iowans need to open their minds to international trade as well as to other cultures," he said. "If you don't, you're limiting your own business. It's just a prerequisite now to learn to deal with people overseas as you'd deal with people in Nebraska." Despite reluctance on the part of some companies, trade between Iowa and foreign countries will continue to grow. And despite tremors in the United States about genetically altered food, international markets will continue to buy from our domestic businesses. So not to worry -- the news may not even be turbulent enough to reach foreign shores. Welling spent the last two weeks in China, and his response is very assuring that the shells issue will not affect much of anything in international trade.
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