Stepping into the South Korea Market

Chris McGann
Communications

Washington delegation in Seoul: Amy Teo (F.C. Bloxom Co.), Debra French
(Dairy Farmers of WA), Julie Johnson (WSDA), Sean Connell (EDASC),
  Bryan Sakuma (Sakuma Brothers) and James Smith (JBR International)

If you’re a Whatcom County dairy looking for new artisan cheese customers -- or a blueberry producer, beer broker or maybe you specialize in selling hot sauce and pet food -- a huge overseas market such as South Korea could sound intriguing.

But Seoul is a long way from Ferndale.

And for all their opportunity, markets like South Korea are complex. Stepping in can be overwhelming and very intimidating.

Enter Julie Johnson, WSDA’s export development and outreach trade specialist.

Johnson and WSDA’s International Marketing Program is ready to help connect sellers with foreign buyers and help Washington companies navigate everything from busy airports to trade restrictions in some of our largest export countries.

Fried chicken and beer Seoul style. Watch
out, it's got a bite!

She can even help with little things.

What if a buyer in Seoul invites you out for a fried chicken and beer dinner? No problem, it’s a trend right now, Johnson will explain. But be careful.

“It looks like American fried chicken, but they put their own spicy spin on it,” Johnson said. “It’s got a bite!”

Last month, WSDA’s International Marketing Program completed a first-of-its-kind outbound trade mission to South Korea. It was, in a way, a pilot program.

Although WSDA organizes many trade missions, the trip last month was the first to focus on new-to-market and new-to-export companies going to learn about opportunities, import rules, and the consumer preferences of South Korea.

The program wanted to know if companies interested in entering the market would be willing to pay their own way to go on a mission. The resounding answer was, yes.

Johnson quickly identified 17 companies that were interested. Five of them, including the before-mentioned dairy, berry producer and specialty product brokers, participated in the outbound mission organized by WSDA and the Economic Development Alliance of Skagit County (EDASC). Dairy Farmers of Washington, Port of Skagit, and Economic Alliance of Snohomish County also made the trip.

A clear potential

South Korea is the sixth largest U.S. agricultural export market with exports of $6.9 billion in 2017, according the United States Department of Agriculture, Foreign Agricultural Service.

Dragon’s beard candy (Ggul-ta-rea).

“For businesses out there looking for new markets, South Korea is full of opportunities,” Johnson said. “South Korea is open to our products because we have excellent food safety and high quality products. It’s one of Washington's top five export markets.

“There’s a lot of potential there, for sure,” she said.

But to tap into it, businesses must understand the legal requirements and cultural norms to determine if it would be a good fit and build an effective strategy to entering.

“It’s really key to go to those markets so you can learn about the customs and the culture,” she said.

Expert help on the ground

“The great thing about working with WSDA to explore new markets like South Korea is we have someone on the ground ready to help,” she said. “South Korea is a big bustling place. It can be complicated.”

Washington delegation poses in front of the 40th Anniversary Monument
of King Gojong’s Enthronement in Sejongno, Jongno-gu, Seoul.

Based in Seoul, Danny Kim is one of WSDA’s four contracted overseas trade representatives.

“Danny met us at the airport, made sure we got on the right bus and got to the right hotel. It took a lot of the nervousness out. That’s a big help, especially for people who had not traveled internationally,” she said.

“We got really great feedback,” she said.

International Marketing, a good fit 

Johnson is one of four trade specialists in the International Marketing Program, but her role in the program is unique.

While other staff are assigned to specific markets and product sectors, Johnson's position is focused on “export development and outreach,” meaning she primarily works with companies that are at the beginning of their explorations into overseas markets.

Johnson has worn many hats at WSDA. She’s worked here on and off since high school.
But she’s really found her stride in the International Marketing Program.

“It’s great,” she said. “I’ve been allowed to do some international travel so that I can learn about the markets. It’s one thing to talk to somebody about a market, but when you’ve actually been there and experienced it, it’s a lot easier to really tell them what the markets are like.”

Daniel Wavrin (Ferndale Farmstead), Julie Johnson (WSDA),
 and Danny Kim (WSDA contract representative).

Downsides? Johnson is a self-proclaimed picky eater, so sampling the pickled radishes, fermented kimchi and other traditional Korean cuisine is not her favorite aspect of the work.

But that’s just a quibble.

“I love the outreach,” she said. “I love people. I get excited about companies that are interested in exporting. I feel like it’s a really good fit. I work with new-to-export companies, getting them the resources they need to become export-ready.”

For more information check out the International Marketing Program.

Grain inspection shifts to environmentally friendly testing

Kathy Davis

Communications

Our Grain Inspection Program is moving toward a grain testing method that does not use hazardous materials. If the pilot project using water-based testing kits shows consistent results, the new method will have benefits for the environment and worker safety.

Craig Hoyt testing grain at
WSDA Longview office. 

WSDA provides important services to Washington’s grain producers and exporters. For instance, foreign buyers require testing for mycotoxins as a contract requirement. Most of this testing has been done with kits that include methanol.

The presence of methanol makes the program a generator of hazardous material under state and federal regulations for storage and disposal. Methanol is flammable and can produce health effects in people exposed to it.

Piloting water-based testing

As the first step in transitioning away from chemical-based testing, the southwest regional grain office – which includes Vancouver, Longview and Kalama – is piloting water-based kits. Manager Philip Garcia said it’s important to conduct side-by-side comparisons for solid data showing consistent test results.

“We want to be sure our customer’s operations are not disrupted and the testing results are accurate and repeatable,” Garcia said.

Program managers anticipate several advantages to the new process. Virtually eliminating handling and disposing of a hazardous substance would be better for the environment and for program staff by reducing exposure.

Mycotoxins are created by molds that affect the quality of grains. Inspection services monitor for mycotoxins to assure that contaminated grain products do not enter the food supply chain.

Protecting the food supply, maintaining high quality customer service and being good environmental stewards are the goals of this project. 

USDA program brings more locally grown foods into schools

By: Karen Ullmann

WSDA Farm to School      

Washington is one of eight states selected to participate in the USDA Pilot Project for Unprocessed Fruits and Vegetables.  The Pilot, mandated in the 2014 Farm Bill, enables schools to use their USDA entitlement dollars to buy more locally-grown, minimally processed produce. In recent years, schools could only use this money to buy fresh produce from a single designated contractor.

The Pilot Project allows them to use their USDA Foods budget to buy from a wider variety of vendors, encouraging schools to buy from regional farms and distributors, and allowing schools flexibility in the food they offer their students. 

Under the Pilot, schools can purchase fruits and vegetables that are “unprocessed” or “minimally” processed. Sliced, diced, chopped, frozen and dried fruits and vegetables are acceptable. Heated-treated processing such as canning or pickling is not allowed. Schools can still buy these products with their other funds, just not through the pilot.

WSDA Farm to School table at the Washington State 

Nutrition Association Conference

Already, Washington schools have set aside more than $1 million of this USDA funding for purchases made possible by the Pilot Project. WSDA is working to recruit and support farms, distributors, and processors to become approved vendors and to help schools buy through the pilot.

Every year, school nutrition directors and food service staff from across the state gather at the Washington State Nutrition Association Conference for education and meetings. I attended the conference on July 27, along with Tricia Kovacs, Small Farm Direct Marketing and Farm to School manager. We were there to join Jim Hemmen and Donna Parsons from the Office of the Superintendent of Public Instruction (OSPI) to educate schools about how to participate in the Pilot Project and what to expect. We found a lot of interest in the pilot project, but also a lot of questions on the nuts and bolts of buying food from local farmers.

The good news is that participation is relatively easy for schools, since USDA approves the vendors and pays for the food, and standard procurement rules and practices apply. There are 32 school districts currently participating and sign-up is open through December 2015. 

Schools interested should contact Jim Hemmen, Child Nutrition Services, OSPI, (360)-725-6209 or jim.hemmen@k12.wa.us for more information.

If schools need help with buying local, see A School’s Guide to Purchasing Washington-grown Food, developed by WSDA’s Farm to School team and partners from Public Health – Seattle & King County, Washington Sustainable Food & Farming Network and Washington Environmental Council. Funds came from the U.S. Centers for Disease Control and Prevention. 

See our Farm to School Toolkit or email us at farmtoschool@agr.wa.gov for more information.