News Releases for March 2008
March 25, 2008
For further information, please Contact the Governor's Office
Trade Mission Generates Business For Western North Dakota
BISMARCK, N.D. - Lt. Gov. Jack Dalrymple and members of a North Dakota trade delegation in Seoul, Korea said Tuesday they are expanding existing business ties and gaining new customers in this rapidly growing market.
“North Dakota exports this year hit $2 billion – a 225 percent increase since 2000,” Hoeven said. “Trade missions like this, as well as earlier ones to China, Taiwan, Eastern Europe and Japan, are a crucial part of the reason we are growing and diversifying our economy.”
The 25-member delegation left North Dakota for Seoul March 14 and concluded their week-long business trip last Friday. The mission participants included North Dakota Agriculture Commissioner Roger Johnson, representatives from nine North Dakota agribusinesses, three universities, Jamestown College and other companies with diverse business interests in South Korea. The mission’s goals included increasing export opportunities, student recruitment and advocacy on behalf of the state’s beef and soybean producers.
The trade mission provided North Dakota companies a marketing advantage as they develop business relationships in advance of Congress’s anticipated passage of the Korea-U.S. Free Trade Agreement.
“Korea has a $1 trillion economy, and 49 million consumers, which underscores the importance of this market for North Dakota manufacturing and agriculture,” Dalrymple said. “Today, we would like to highlight some of the results of particular significance to western North Dakota.”
Transportation
Lt. Gov. Dalrymple discussed an important meeting with a container shipping company regarding the need for better container service for North Dakota exporters. Top executives at Hanjin Shipping promised to pursue a new plan to make more inland containers available in the region. They also pledged to push the Burlington Northern Railroad to provide better rates and reliable service out of the region. This comes on the heels of a BNSF announcement that they will equalize North Dakota rates with St. Paul, Minn., following a meeting between Gov. Hoeven and BNSF CEO Matt Rose in Fort Worth Texas last month.
The Korea meetings have apparently had an immediate impact as a regional representative for Hanjin has reported a new commitment for containers headed for North Dakota. Dalrymple said: “The regional representative of Hanjin has told me that more progress has been made in the past two weeks than has been made in several years on affordable container service for North Dakota.”
Doosan Corp. and the Northern Plains Commerce Center
Dalrymple and key members of the delegation held three informal meetings with senior level executives from Doosan to discuss their future plans for North Dakota. As a result, Doosan is expecting a proposal for vertical integration in Bismarck to include sites for major suppliers. The company has also invited discussions with area universities to supply Korean engineering students to North Dakota who would also intern at Bobcat. In addition, the company is entertaining supplier relationships with delegates participating in the trade mission who were introduced to them during the mission. "Overall, our impression is that Doosan remains very positive relative to their relationship to Bobcat and North Dakota,” Dalrymple said. “The company appears committed to growing its business and ensuring that Bobcat feels like an integral part of the Doosan family.”
Dickinson State University
Dickinson State University was honored to have the opportunity to represent the best that North Dakota has to offer to the people of Korea in terms of opportunities for the advancement of trade and exchange. During this trip, Thy Yang, director of DSU’s Multicultural Center, visited five university campuses and had discussions with International Affairs Officers who were eager to explore ways for their students to broaden their global perspectives. She met with the President of Ansan College, to discuss the development of joint nursing programs. “We will very likely emerge from this trip with a nursing program coming to spend a year at DSU for practical training after three years of nursing school,” Yang said. DSU is host to nearly 400 international students with representation from more than 30 different countries. However, the campus has yet to host Korean students. “We hope to change that through our ongoing communication with the many people we met through this important trade mission and would like to thank the North Dakota Trade Office for organizing such a worthwhile event, which enabled us to meet such influential people,” Yang said.
Korean Beef Ban
Lt. Gov. Dalrymple met with Costco, and Commissioner Roger Johnson met with restaurant and food service distributors, including R&G Restaurant Comp. and KFA, who indicated that U.S. beef products are highly valued in Korea because of their quality and flavor. Dalrymple and Johnson said industry officials made clear that they want the market reopened for all age cattle in accordance with the international standards that have now been established. Consumer demand will make it impossible for the government to maintain the embargo.
In fact, newly elected Korean President Lee Myung-bak, a former CEO of Hyundai and a free trade advocate, has pledged to find ways to ensure the beef trade is flowing once again.
He will meet in Washington with President Bush next month after the Korean parliamentary elections, which are scheduled for April 9. The outcome is expected to favor the new president, and will have implications for the future of the Korean beef ban, according to Dalrymple and Johnson.
Cloverdale Foods Company, Mandan
Scott Russell, Cloverdale’s vice president of sales and marketing, expanded existing business with two South Korean food supply companies. Russell reported that his company also identified an additional distributor capable of increasing Cloverdale’s sales of hot dogs and bacon throughout South Korea, and found new business with Offal products. “Offal has the greatest potential in Korea because its a source of protein and has become part of Koreans regular diet,” said Russell. “We found an exciting opportunity to expand with a large new customer, the second largest importer of Offal in Korea, which could clear Cloverdale's production every week and add $1MM in profit per year.”
Roger & Stacey Gussiaas Farm, Inc., Carrington
Roger Gussiaas has held 15 meetings with food buyers interested in purchasing flax for use in health foods. He said he expects to write sales orders with most of the 11 food buyers – however initial sales are valued at about $175,000.
On Thursday morning, more details of initial results will be available, including:
- Efforts among North Dakota universities to recruit Korean students
- Opportunities for flour sales from the State Mill and Elevator
- Opportunities for aviation and handicapped accessibility equipment
- Sale prospects of North Dakota Peat for Korean golf courses.
- Opportunities for the service industry, including sleep therapy
- Opportunuties for food grade soybean exports
Participants In The Korean Trade Mission March 2008
- Dakota Pride Cooperative, Jamestown
- ND Mill and Elevator, Grand Forks
- Gussiaas Farm, Inc., Carrington
- Brushvale Seed Inc., Wahpeton
- Sun Opta, Fargo-Moorhead
- SB&B Foods Inc., Casselton
- Unity Seed, Casselton
- Cloverdale Foods, Mandan
- J&J Corporation, Inc., Fargo
- Dakota Growers Pasta Co.
- University of North Dakota
- Jamestown College
- Dickinson State University
- Precision Data Systems
- North Dakota State University
- Roll-A-Ramp, West Fargo
- Ideal Aerosmith, Inc., East Grand Forks
- Advenio Partners LLC, Fargo
- Bismarck-Mandan Development Association
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