February 2008 - Volume 16 Issue 1

MSU-CIBER Newsletter

Success Story

globalEDGE - Michigan State University

"globalEDGE provides a wealth of up-to-date information, training, and resources in a well-organized format for the benefit of the international business community at large including new and seasoned companies involved in foreign trade, and American corporations/organizations operating abroad. It is especially useful to American professionals abroad in the corporate and non-profit sectors."

Leila Heron - American Citizens Abroad (ACA), Country Contact, Republic of Panama & Venezuela

Cherries in China

Filling the information gap about rapidly evolving fruit markets and supply chains in China is important to, and needed by Michigan producers, whether they are concerned with competition or seeking export and/or joint venture opportunities. As such, MSU-CIBER has recently co-sponsored research with the Department of Agricultural Economics to evaluate evolving produce supply chains, particularly related to cherries, in China. The research draws on linkages with collaborators at Chinese institutions and other U.S. universities working on issues related to fruit and vegetable markets. Although it is ongoing, the initial findings provide some food for thought:

According to FAO statistics, China's share of world fruit and vegetable production increased from just over ten percent between 1979-1981 to almost 37 percent in 2004.
China has been a net agricultural importer since 2004; by 2006 agriculture accounted for 34 percent of all imports. Between 2001 and 2006 there was a $917 million increase in fruit and vegetable imports to China.
Agriculture accounted for 27 percent of exports in 2006. Less than 10 percent of agriculture exports in 2005 are value-added products (in the U.S. it is about 58 percent).
Land is still officially owned by the government although farmers are able to obtain 99 year leases. Although the government does not tell farmers what to plant, they make suggestions based on market needs, maintain plant breeding programs, and distribute most seed and plant stock. Four fruits are currently encouraged by the government - apple, grape, strawberry, cherry.
Cherries are thought of in three broad groups: sweet, Chinese traditional cherries, and tart.
Processing for cherries is limited.
At present, Chinese fruit markets for consumers can be divided into three broad categories: traditional fruit market, new emerging modern market, and export or industrial market.
Especially in the last five years, supermarkets have replaced many of the traditional wet and flea markets in urban centers. However, development of supermarket sales in the fruit sector, especially for fresh fruit, has not been as rapid as in other food sectors. Not all the supermarkets in China sell fresh fruit.
Pricing patterns for cherries is consistent with product sold only as fresh, in-season.
The prominent role of brokers in the supply chain creates opportunities for those willing to invest in more organized chains. This is exacerbated in cherries where brokers change every year.
Cherry offerings to consumers are extremely limited beyond fresh but cherries seem to be popular when available and associated with good feelings and so opportunities to deliver out-of-season product could be very large.

Upcoming Activities

Feb 8, 2008 Teaching Workshop for International Business Faculty
Dr. S. Tamer Cavusgil will present an interactive session to the University of Toledo business faculty. This session will focus on new content and new pedagogical approaches to the teaching of international business. The presenter will share experience and teaching tools that have been especially developed for IB educators. The intent is also to engage participants in an interactive discussion designed to search for excellence in the teaching of international business.

Feb 13, 2008 Global Business Club of Mid-Michigan Luncheon
The Global Business Club of Mid-Michigan focuses on global issues of interest to the mid-Michigan business community. In this role, the GB Club is dedicated to supporting global business growth of the State of Michigan and its diverse manufacturing and service organizations. The main activity of the GB Club is the luncheon speaker series.

The monthly GB Club luncheons provide outstanding speakers and relaxed networking opportunities. With extensive international experience, the speakers wrap personal insights around a practical and up-to-the-minute approach to conducting international trade. The luncheons are open to the general public. Typically, about 100 business executives, public policy makers, and academics attend each luncheon.

Feb 21, 2008 Language and Culture for International Business: A Workshop for Foreign Language Educators in Spanish, French, German and Japanese
The workshops will serve as a unique forum for the exchange of ideas among the participants. The workshop leaders offer: • numerous insights into the relationship between foreign language, culture and international business; • discussions on how to develop and teach a business language curriculum; • exploration of the resources available in this new and fast-changing field; • introductions to the business language examinations (i.e., Prüfung Wirtschaftsdeutsch International (PWDP); • ways to structure a business language program for varying needs; and • instruction in the use of the internet.

Feb 28, 2008 Lansing Regional Chamber Economic Club Luncheon
Speaker: Tim O'Donovan, Chairman and CEO, Wolverine World Wide, Inc.

Mar 15, 2008 25th Annual Pow-Wow of Love
The pow-wow has attracted 4,000 people from the Michigan State community, the greater Lansing Area, and all over the U.S., and is also the largest student organized event on campus. The pow-wow is an opportunity for Native American students to share their heritage and invite others to learn about and experience a culture than many people do not have the opportunity to experience. This year's pow-wow is the 25th annual event.

Mar 19, 2008 Lansing Regional Chamber Economic Club Luncheon
Speaker: Hester Wheeler, Executive Director of Detroit NAACP

Mar 20, 2008 Global Business Club of Mid-Michigan Luncheon
The Global Business Club of Mid-Michigan focuses on global issues of interest to the mid-Michigan business community. In this role, the GB Club is dedicated to supporting global business growth of the State of Michigan and its diverse manufacturing and service organizations. The main activity of the GB Club is the luncheon speaker series.

The monthly GB Club luncheons provide outstanding speakers and relaxed networking opportunities. With extensive international experience, the speakers wrap personal insights around a practical and up-to-the-minute approach to conducting international trade. The luncheons are open to the general public. Typically, about 100 business executives, public policy makers, and academics attend each luncheon.

About MSU-CIBER

The Center for International Business Education and Research in The Eli Broad Graduate School of Management at Michigan State University (MSU-CIBER) was designated in 1990 as a National Resource Center in international business by the U.S. Department of Education. In this capacity, the mission of MSU-CIBER is to leverage our leading-edge competencies to provide superior education, research, and assistance to businesses, public policy makers, academics, and students on issues of importance to international trade and global competitiveness using our guiding principles as the foundation. If you no longer wish to receive this newsletter, you can unsubscribe from our mailing list.

February 2008 - Volume 16 Issue 1