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Free Market Information & Research Available From WUSATA

WUSATA strives to keep you informed. That is why, in conjunction with our member states, we frequently sponsor in-depth market studies. The results of these valuable studies are now available on-line to eligible Western U.S. companies. Currently we have four major studies available on the WUSATA site. These studies include: Canadian Market For Organic Natural Food Products Report, Neutraceutical Market Research Report, Exploring Market For NorthWest Nursery Products in Europe, and Western Greenhouse Tomato Market Research in Japan.

To Access this information please contact WUSATA's Outreach Coordinator. If your company is qualified you will be given the required user id and password.

Short-term Financing Opportunities Available For Exporters of U.S. Agricultural Products

Exporters are searching for ways of reducing risk and expanding markets while importers are always looking for new profit opportunities. To achieve these goals, the U.S. Department of Agriculture (USDA) administers the Supplier Credit Guarantee Program (SCGP). The SCGP is unlike any credit guarantee or insurance program in the world. The program is designed to make it easier for exporters to sell U.S. food products overseas by insuring short-term, open account financing. Under the security of the SCGP, U.S. exporters become more competitive by extending longer credit terms or increasing the amount of credit available to foreign buyers without increasing financial risk. Foreign buyers benefit because they can increase their purchasing power and profit opportunities, and gain significant cash flow management advantages.

SCGP operates on a risk-sharing basis. USDA offers a 65-percent guarantee of the value of the export, including freight coverage, with the exporter retaining the other 35 percent of the risk of default. Because the U.S. exporter bears 35 percent of the risk, the exporter has plenty of motivation to ensure that the importer is a good credit risk. The exporter probably knows the importer best, and the two firms may often have a business history.

The program is particularly attractive for smaller transactions, where buyers need a lower cost payment mechanism. Instead of a bank letter of credit, SCGP relies upon a promissory note issued by the importer to the exporter. USDA guarantees payment of the promissary note for up to 180 days. The cost of the SCGP, paid for by the U.S. exporter, is 45 cents per $100 up to 90-days and 90 cents per $100 from over 90 days to 180 days.

The SCGP was initiated as a pilot program in the 1997 U.S. fiscal year (October - September), and sales under the program have grown significantly since implementation. For instance, in FY 1997, the value of U.S. products exported under the SCGP totaled about $7.5 million, representing seven countries or regions. In FY 2001, the value of U.S. products exported under the SCGP grew to $347.7 million, representing exports to 24 countries or regions. SCGP has been used to support exports of dozens of high-value agricultural products, literally from dehydrated soup mixes to nuts. Frozen foods, including vegetables and potatoes are included in the program. However, SCGP also facilitates additional sales of bulk agricultural commodities because exporters and importers have found the program to be a cheaper, faster means of obtaining a guarantee of financing.

For more information on the SCGP and other USDA Foreign Agricultural Service programs, visit the USDA/FAS web site at http://www.fas.usda.gov. Questions on any of USDA Export Credit Guarantee Programs may be sent by internet e-mail to askec@fas.usda.gov.