Related USDA program reimburses ag businesses for export promotions

By SEAN ELLIS

Capital Press

A new state program in Idaho can help small businesses gain access to international markets by providing them mini-grants that help offset the cost of visiting foreign countries or promoting their products there.

The program, one of several that can help Idaho ag and timber companies tap foreign markets, comes at a time when businesses in those sectors appear to have a renewed interest in exploring market opportunities in other countries.

Some Gem State companies stopped investing in foreign markets after the U.S. economy tanked in December 2007, said Laura Johnson, manager of the Idaho State Department of Agriculture's market development division.

That has started to change, she said, and the department is now seeing many of those same companies move aggressively to try to export their products.

Idaho ag exports during the second quarter soared 22 percent compared with the same period last year, an indication of the renewed interest.

With funding provided by the federal State Trade Export Promotions program, ISDA and the Idaho Department of Commerce have created a program that can provide small ag and forest product companies mini-grants of up to $10,000 to help them sell more of their products abroad.

The program is funded by the Small Business Administration and the due date for the first round of applications is Oct. 28; the second is Feb. 1.

The STEP program will compliment another one funded by the U.S. Department of Agriculture that can help Idaho businesses explore market opportunities in other countries by reimbursing them up to 50 percent for certain promotions and export activities.

The two programs can help businesses gain access to foreign markets during a time of increasing global demand for food and forest products, said Jake Klossner, an IDC trade specialist.

The IDC and ISDA, which work closely together on the programs, can recruit buyers specific to an industry or company, vet them to ensure they are able and willing to purchase U.S. products, and organize trips here so they can meet with Idaho companies.

Johnson said the agencies can provide a tremendous amount of education to businesses new to the export market.

"We're a resource for 'how to,'" she said. "We can help train them on the basics or fundamentals of exporting."

Funding is limited and the grant programs are competitive processes but the payoff could be substantial for those businesses that do qualify, Damian Bard, administrator of IDC's market development program, said.

"There is a significant amount of opportunity in select markets around the world," he said, adding that the programs have "more room to expand for Idaho companies ready to look at export opportunities."

For more information about export opportunities for Idaho ag businesses, contact Johnson at 208-332-8533, and for details about forest products opportunities, contact Klossner at 208-334-2650, Ext. 2113.