Small businesses are obtaining a significant share of export markets and are discovering that they can be competitive abroad.

Exporting is not all that difficult. Most uncertainty and reluctance are due to a lack of knowing how to go about it. You need insight into how to get started, what your exporting plan should include, how to get your product abroad, and how to get paid.

Export provides new opportunities for growth, a means to offset cyclical and seasonal variations in domestic sales, and an alternative market for producers and processors facing competition from foreign companies selling in the U.S. Success abroad can have also a positive impact on a companyžs domestic image.

Some of the reasons that small businesses donžt export is they believe that they are too small, or they believe they are doing okay selling in the U.S. market, theyžre not comfortable doing business where English isn't spoken or the U.S. dollar isnžt used. They think it will be too complicated, or they arenžt established enough in the domestic market.

The primary reason small companies do not actively seek to sell to foreign markets is that they simply lack information about those markets. This is in spite of the fact that there is a wealth of information regarding markets and the sales potential in those markets.

Seventy five percent of the world market and ninety percent of world customers are beyond our borders. It may be easier to sell to customers within three or four hundred miles, but it may not be as profitable. The markets in the spotlight include Canada and Mexico as well as Western Europe and the Far East, depending on the product being exported.

Exporting to Mexico

It makes sense to think about exporting to our backyard neighbors North and South. There is incredible momentum behind the Mexican economy. A major part of this action is from the U.S. food processing industry which cans, freezes, and packs much of the food that is consumed by Mexicans. Trade barriers have been only a minor deterrent.

Overall, U.S. food consumption is flat and processors are looking at growing global markets. Mexicožs population of 85 million is younger than the U.S. and under the current Administration, there are aggressive free market policies. Inflation is down to 9.7% from a high of 160% five years ago, and Mexicožs economy is growing 4% annually. Overall, U.S. direct investment in Mexico rose from $5 billion in 1987 to more than $13 billion last year. Mexico represents the fastest growing market for all U.S. goods. Annual spending on U.S. products averages about $450 per capita, higher than either Europe or Japan, and the figure is growing. Most major U.S. food companies export to Mexico and many have invested in Mexican processing operations. But  there are plenty of opportunities for small growers and producers.

RESOURCES

For a copy of Mexico export background reports that are available through the Department of Food and Agriculture call 617-727-3018.

Through the end of November 1993, 22 marketing studies and guides have been produced by the U.S. Agricultural Trade Officer (ATO) in Mexico, coordinated through the USDA Foreign Agriculture Service. Copies of these studies and guides are available from the Department to assist exporters of U.S. produced food and agricultural products to promote and sell their products in Mexico.

The ATO is coordinating additional studies in the following areas:

ADDITIONAL RESOURCES

Mexico Agricultural Trade Officer
Mexico City, D.F.
Parque Virreyes Building
Monte Pelvoux No. 22 0
Colonia
Lomas De Chapultepec
11000 Mexico, D.F.
Phone:  011-525-202-0168/0212
FAX:  011-525-202-0528