State Representative
Bob Ness

ST. PAUL -- The Minnesota Department of Agriculture (MDA) is stepping up its efforts to promote Minnesota grown products to foreign markets. The newly hired Ag. Trade Consultant, Craig Damstrom paid a visit to the Agriculture & Rural Development Finance committee and shared his and the department's vision for Minnesota farm exports and I concur wholeheartedly that we need to strengthen our export markets.

A key component to the MDA's approach to trade is the focus on the producer, as compared to the Minnesota Department of Trade & Economic Development's focus on export - in and of it's own sake. MDA is asking, "What can we do to help the farmer?" Simply exporting our commodities to different customers at the same low price doesn't benefit our producers. If we try to compete on price alone, we run up against low cost producers like Brazil.

Minnesota possesses several important strengths which we can build on. Minnesota farmers are extremely productive; today, the average Minnesota farmer feeds 94 Americans and 34 foreigners. Minnesota also has a strong tradition of cooperatives which provides a flexible model for working together. In addition to a strong local market, Minnesota enjoys relatively low freight costs which provide access to foreign markets. And finally, Minnesota farmers are embracing the technological advances which are making farming a "high tech" industry.

While we will always have commodities as a component of our export efforts, there are three areas which should be explored to obtain a higher return for our producers: identity preserved products, added value, and direct marketing.

As the consumer continues to become more aware and particular about the details of their food supply, identity preserved products offer a unique opportunity for premium sales. Japan and Europe are especially sensitive to this issue.

By promoting our Minnesota Grown branding efforts and the MinnCERT program, which is a certification program modeled on ISO 9000 designed by the MDA and the University of Minnesota, we will be able to demonstrate specific standards of quality to potential customers.

Identity preserved products could be certified in this manner. By segregating product which can be traced back to its original supply, we can feature Minnesota products in the world market with assurances of exceptional quality that meet the criteria of the end purchaser. I believe we are truly a cut above our competitors and there are clear quality differences that consumers should recognize in Minnesota agriculture products.

Adding value to Minnesota grown products has been a strategy for several years, but can continue to be expanded. In this area, cooperatives and associations of small cooperatives have been especially successful in developing value-added products which provide a greater return to the producer. Continued research and development in this area will be key. This will allow us to capture a greater share of the market value of our products.

Finally, direct marketing for our farmers should be stepped up - and the hiring of an experienced foreign trade specialist like Mr. Damstrom will help to expand and enhance our markets. In a survey sent to various producer organizations, establishing contacts and trade leads was at the top of the list, next to providing market research and information which could be utilized to identify potential foreign customers.

Not many producers have the experience of traveling in foreign countries, which is essential to building relationships with foreign buyers. Trade export officials will tell you that establishing relationships of trust and understanding is the beginning step to exporting goods and services. Just as you prefer to buy your car, furniture or any other significant item from someone with whom you have a personal relationship, foreign importers turn to people they know and trust to secure their food products. In the same vein, inviting foreign delegations to Minnesota to tour sites and visit with producers should be established as another top priority of producers that will result in improved personal contacts which will yield demonstrable benefits in the area of increased exports.

By having a trade export expert in the MDA such as Mr. Damstrom, producers will also have access to someone who can assist with the mechanics of not only marketing their product to foreign markets, but delivering it there as well.

In this time of a struggling farm economy, MDA is taking the right steps to help producers find new, quality markets for export. These initiatives build on previous participation and focuses on marketing and trade missions. We must continue to explore new and profitable marketing connections. I commend MDA for their work and encourage farmers across the state to look into the possibilities that are available. I look forward to seeing the results of this effort.

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Representative Bob Ness is in his fifth term serving the citizens of District 20A. Ness is the Chair of the Agriculture and Rural Development Finance committee and a member of the Agriculture and Rural Development Policy, Education Policy, and K-12 Education Finance committees. District 20A includes portions of McLeod, Meeker, Stearns, and Wright Counties.