Issue Position: Kentucky Agriculture Product Exports
Issue Position
Question- What is your plan to increase exports of our Kentucky Agriculture Products?
Answer- Here is my plan to grow exports of our Kentucky Agriculture Products and to recruit agribusinesses from around the world to add local permanent markets for our Kentucky Farmers and to grow jobs for our Kentucky citizens.
EXPORT Kentucky Agriculture
Forward
Over the last several years, exports have accounted for close to 45% of our Kentucky farm sales. Yet, there is not a concentrated effort within the Kentucky Department of Agriculture to address this huge area of our farm sales. Our great commodity organizations have been, and continue to be, the point people on this effort. Each commodity group travels the world working to grow their own export sales in the countries they visit. This plan would develop a framework for coordination all of the commodity groups, export organizations like the World Trade Center- Kentucky and the Kentucky Department of Agriculture under a plan named EXPORT Kentucky Agriculture. This would be operated within the department much as the Kentucky Proud Program is now operated.
Additionally, the senior staff person for EXPORT Kentucky Agriculture will serve on the Task Force for Recruitment of Agribusinesses to Kentucky. We will form the task force within the first 100 days of our administration. As EXPORT Kentucky Agriculture is searching the world, along with our great commodity organizations, they will also be recruiting agribusinesses to Kentucky.
Concept
EXPORT Kentucky Agriculture will serve as the domestic and international marketing vehicle to identify, promote and highlight Kentucky products which are identified as having an export opportunity. They will then coordinate with the different entities to help close the sales and to help with infrastructure logistics to get the products to the export buyers.
Mission
The mission will be two-fold:
EXPORT Kentucky Agriculture will bring awareness to all KY farmers, processors and Ag entrepreneurs of the opportunities to export their products. KY farmers, processors and ag entrepreneurs who may or may not have ever thought of exporting and have no idea how to go about it will now have a complete new world open up to them.
EXPORT Kentucky Agriculture will work to assist in the marketing efforts of these products by supporting trade shows (foreign and domestic) and will develop a portfolio of KY products, videos, catalogs etc., that the Governor, our commodity export arms or whoever, would take or send when they go outside the country or Commonwealth to show, very professionally, ALL of what KY Agriculture has to offer.
The second mission will be to constantly be exploring for agribusinesses who would be candidates for either relocating to Kentucky or for locating a branch in Kentucky.
Program Justification
The President has set the goal of doubling exports and in the process support several million new jobs. As he announced in his State of the Union address, the goal of the National Export Initiative is to create jobs by expanding exports. The President said, "Boosting America's exports strengthens our economic growth and supports millions of good, high-paying American jobs. That's why I set a goal to double our exports over the next five years." EXPORT Kentucky Agriculture will address that goal and, through its efforts, assist the Commonwealth through this program to grow jobs, export sales and Kentucky's tax base which will support the growth of Kentucky's economy.
Export-supported jobs linked to manufacturing account for an estimated 6.1 percent of Kentucky's total private sector employment. Over one-fifth (22%) of manufacturing workers in Kentucky depend on exports for their jobs according to 2013 data. Over one in every five jobs in Kentucky are agriculture related. Governor Beshear, in his Budget Address stated that our Kentucky Economy must improve to generate additional tax revenue to the state if we are to have a progressive budget for our citizens.
Approximately 3,300 companies exported goods from Kentucky locations in 2013 (latest data available). Of these, 79% were small and medium-sized enterprises (SMEs) with fewer than 500 employees. SMEs generated close to one-fifth (18%) in 2013. However, approximately 98.5% of these exports were NOT agriculture. Agriculture is not even in the top 25 of the export categories yet almost half of our Kentucky farm sales are export sales. EXPORT Kentucky Agriculture will focus exclusively on our Kentucky Farm and Agribusiness Opportunities working with our Kentucky Agriculture Commodity Organizations and organizations like the World Trade Center- KY, Export.com, Kentucky Export Initiative, and the International Trade Organization to help our Kentucky farmers and Kentucky agribusinesses.
These SMEs or Potential SMEs are the target for the EXPORT Kentucky Agriculture domestic marketing efforts as they are the most likely to be unaware of the WTC-KY and their own potential to become an SME. Our goal would be to increase the sales of the existing SMEs through enhancing their awareness of the potential and be assisting them in their export marketing efforts and to identify Potential SMEs and, through the EXPORT Kentucky Agriculture efforts, move them into the "active" SME category.
To reach more Kentucky Agriculture Businesses, a Trade Awareness campaign is needed. This Awareness campaign would be multi-level:
· The campaign will be developed to make Kentucky farmers and agri-businesses (Potential SMEs) aware of the growth opportunities through exporting.
· EXPORT Kentucky Agriculture will assist farmers and agri-businesses with the promotion of their products to potential export markets
· EXPORT Kentucky Agriculture will identify, qualify and then highlight Kentucky Made Products via an on-line export product directory as well as a "Exported from Kentucky" marketing initiative to identify and promote Kentucky products (this includes promotional literature, tags, other). The program will also offer domestic and international trade show assistance.
Benefits
Kentucky is a state of proud entrepreneurs. Our farmer and agribusiness entrepreneurs are very good at creating their product and are proficient in selling their products to their neighbors, who can see a benefit from the product. EXPORT Kentucky Agriculture will support our farmer and agribusiness entrepreneurs to build their businesses through export opportunities by promoting their products or services. In addition, EXPORT Kentucky Agriculture will, where appropriate, refer businesses to the States trade resources (KCED, WTC-KY, DOC) for further support and assistance.
There is strength in numbers. By identifying and bringing awareness of the many export opportunities and the organizations available to assist, EXPORT Kentucky Agriculture will facilitate a change from each exporter or potential exporter focusing solely on their own product or business, which is fine and normal, to encourage joining forces to promote ALL Kentucky Agricultural Products. Through developing this synergy we strengthen all exports from KY and our tax base. This enhanced awareness of the business community within the Commonwealth would offer an additional benefit. If we can help one KY business find a supplier or partner of sorts of another KY business that neither knew the other existed, we have won. Where a KY manufacturer might have been buying parts from outside the Commonwealth, through this heightened awareness, they might find that these parts are available within the KY and thus, we help create more KY Jobs!
EXPORT Kentucky Agriculture participants will benefit directly from the program's ongoing domestic and international promotional campaigns. Participants will receive all EXPORT Kentucky Agriculture marketing and promotional items free of charge (subject to availability).
Kentucky Exports -- Facts
We expect to see additional benefits from this effort to raise awareness. As the export marketing efforts develop, the awareness of investment opportunities by foreign investors will also be enhanced. In 2013, foreign-controlled companies employed almost 100,000 Kentucky workers. Foreign investment in Kentucky was responsible for 6.1% of the state's total private-industry employment. According to the Kentucky Cabinet for Economic Development, the economic impact of gaining 100 jobs in manufacturing is over $25 million dollars per year and a state tax generation of over $6 million.
Program Metrics
Surveys will be conducted on an ongoing basis to determine program impact.
This includes:
· Increase(s) in program participation
· Export sales activity (increased or decreased)
· Region along with sector (product or service analysis)
· Job retention or growth
Program Budget per year
One full-time EXPORT Kentucky Agriculture Marketing Manager will be hired to develop and manage this project. This person will be an employee of the Department of Agriculture of the Commonwealth of Kentucky and will be a member of the Senior Staff of the Commissioner. This program will be operated much as the Kentucky Proud Program is operated and will easily generate more tax dollars than the cost.
An application to the Kentucky Agricultural Development Board for funding for this department will be made immediately upon my taking the oath of office.
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