Fruit Pulp Export to Canada and the U. S

FruitPulp Export to Canada and the U. S

FruitPulp Export to Canada and the U. S

Theimportance of marketing cannot be gainsaid as far as theprofitability and sustainability of any organization or businessentity is concerned. Marketing encompasses the numerous activitiesthat are undertaken in an effort to communicate or relay the messagepertaining to the value of a service and/or product to consumers,both current and potential, with the aim of selling that service orproduct. This set of activities may be examined as an organizationalfunction, as well as processes that are aimed at creating,delivering, as well as communicating value to consumers, not tomention consumer relationship management that would, essentially, bebeneficial to the organization. Needless to say, marketing involvesnumerous types of activities that can be carried out in an effort topopularize products and services, with their suitability beingdetermined by varied factors including type of product, availablemarket, organizational goals, as well as the financial resources thatcan be dispersed towards the achievement of this goal (Mitchell,2001).Of particular note, however, is the fact that marketing revolvesaround the science of selecting the target market via marketsegmentation, market analysis, as well as the comprehension of theconsumer behavior and the provision of superior consumer value.Indeed, it is well acknowledged that marketing, from societalperspective, is essentially the link or connection between thematerial requirements of a particular market and the economicpatterns that are created in response to the same. These needs andwants would be satisfied by marketing via the process of exchange andthe establishment of long-term relationships that would ensure theprofitability and sustainability of the business in both theshort-term and the long-term (Mitchell,2001).

Whilethe choice of marketing strategy is crucial to the success of anymarketing activity, the identification of the appropriate marketingenvironment is of utmost importance. Indeed, scholars haveacknowledged that staying ahead of consumers makes a crucialcomponent of a marketer’s task. It is crucial to comprehend themarketing environment so as to understand the concerns andmotivations of the consumers, as well as make the necessaryadjustments to the product in line with the needs and wants of thepotential customers (Mitchell,2001).In this regard, marketers utilize the process referred to asmarketing environmental scans, which persistently obtains informationpertaining to the events that are taking place beyond theorganization, as well as identify the threats, opportunities thattrends of the business. There are varied fundamental elements thatwould have to be examined with regard to the marketing scan includingthe demographic forces, competitive forces, technological forces,regulatory forces, economic forces and cultural forces. Marketershave to examine the areas where opportunities and threats emanatefrom in the consumers’ world so as to maintain a profitable andproductive business. Indeed, the varied forces of demand in theconsumers’ world have to be matched with the forces of supply inthe marketers’ world so as to allow for sustainability ofbusinesses. This is exactly what is needed in the case of fruit pulpproduction and marketing in Colombia. Needless to say, the marketersaim at reaping the highest returns for their investment in the fruitsbusiness. This means that they would have to select markets wherethey would incur the lowest cost while obtaining the highest returnsfor their products (Root&ampLiebman, 2000).The four forces or elements identified in the marketing environmentalscans would allow for the examination of the suitability of theUnited States and Canadian markets for the varied types of fruit pulpthat are on offer or available in the Colombian market. This,therefore, necessitates an examination of the types of fruit pulpthat are produced in Colombia and determining how popular they are inthe United States and Canada. Of particular note is the fact that theprofitability of these fruits in these markets will be determined bytheir availability in these markets. Indeed, it goes without sayingthat it would be senseless to export fruits that are also highlyproduced in the two countries as they are likely to have extremelylow demand, which translates to lower prices and, consequently, lowerprofits.

FruitsAvailable in Colombia

Colombiais located in Northern South America and borders the Caribbean Seabetween Venezuela and panama. It also borders the North Pacific Oceanbetween Panama and Ecuador. Owning an immense proportion of theAmazon rain forest, two coastlines along the Pacific and theCaribbean, as well as different altitudes up and down AndesMountains, all of which come in tropical heavy rainfall climate,Colombia has immensely fertile land which allows for almost everytype of plant to grow upon being put in the ground (Ohlemeier, 2003).Indeed, research has shown that Colombia has some of the bestconditions for growing fruits as it lies between 1300 and 8400 feetabove sea level or 400 and 2600 meters. This altitude providesvariations in precipitation conditions and temperature, which offersan ideal environment for growing almost every type of fruit(Ohlemeier, 2003). Indeed, as a tropical country, Colombia has a widevariety of ecosystems in which more than 95 different types of fruitsgrow including native species, as well as other species from otherequatorial areas and other continents (Root&ampLiebman, 2000).Working in the favor of Colombian fruits is the fact that its fruitsand vegetables are naturally better with regard to their physicalquality and the organoleptic characteristics, aroma, high content ofsoluble solids, Brix grades, flavor and color in comparison withthose from the southern and northern hemispheres or other subtropicalcountries. Testament to its role in the fruit industry is the factthat the country, according to FAO, is ranked the third in LatinAmerica with the largest proportion of hectares that are dedicated tothe production of fruits. Indeed, these take up 10.5% or 748,604hectares, which make it the fifth largest producer of fruits in theregion with about 7.5 million tons or 7.2 percent. This iscomplemented by the large amount of precipitation, which amounts to2.612 mm per year, making the country the third in this category.

Themain export destinations for marketing exotic fruits from Colombiahave been Asia, Europe, Latin America, as well as North America.Research shows that Colombia made up a total of 45.8 percent of theamount of exotic fruits that was exported from the region in 2011,earning close to $100 million. These fruits included pitahaya,passion fruits, guava jelly, bananas, cape-gooseberry and guavajelly. Statistics show that exotic fruits such as sweet granadilla,gooseberries, tamarillo, pitahaya and passion fruits that areproduced in Colombia take up a similar proportion of exports fromLatin America to the entire globe. The same cannot be said of fruitssuch as murtones gooseberries, blueberries and kiwis from thecountry, which account for less than 1% of the entire consignment ofexports from Latin America. There are varied fruits that have gainedwide acceptance mainly in places such as the United States, Europeand Canada as a result of their characteristics such as size, tasteand color. This preference for these fruits may also have beentriggered by the deficiency of any pesticide residues as a result ofstrict controls that is undertaken by producers, exporters and otherColombian entities that monitor the production of these fruits. Inthe European continent, a total of 23 countries have been seen as themain export markets. Asia has also developed an increasing demand forthe same in countries such as South Korea, Lebanon, Japan, Turkey,Saudi Arabia, Hong Kong, Kazakhstan and United Arab Emirates. Reportsalso indicate that the American continent comes with incredibleopportunities in countries such as Chile, Tobago and Trinidad, inwhich a crucial juncture is identified for items such as yellowpitahaya, papaya and gooseberry.

StatisticsFruit Pulp Market in the United States

TheUnited States market has seen a steady increase in the variety andvolume of fruit imports in the recent past. This has been attributedto international trade agreements, increasing consumer incomes, aswell as enhanced technology. Research shows that between 1990 and2006, the United States import of fruit pulp per year jumped from$2.7 billion to around $8 billion as the total United Statesagricultural imports increased from 11.5% to around 13.3%.

Scholarshave acknowledged that there is a fundamental difference between thefruit trade and that of fresh vegetables in the United States.Imports of the later are primarily dominated by countries within theNorth American free Trade Agreement (NAFTA) region such as Mexico andCanada, making up more than $3.2 billion and making the singlelargest trade flow among the blocks of the United States Freshproduce trade. The fruit trade, on the other hand, is considerablymore diverse as far as the United States trade partners areconcerned. Unlike vegetable trade where NAFTA and Asia take up anenormous proportion of imports and exports (84% and 95%), fruit tradewith these regions is considerably less significant taking up 28% and85% of imports and exports respectively. Of particular note is thefact that the fruit trade not only includes fruit pulp but also freshfruits. However, recent times have seen a departure from the formerto the later as a result of the seasonality, perishability andbulkiness of the former.

Researchfurther shows that the key sources of the United States fruit importsare mainly the banana-exporting countries alongside the NAFTA andSouthern Hemisphere regions. Indeed, banana exporters such as CostaRica, Honduras, panama, Guatemala and Colombia are the key providersof fruits to the United States making up a total of 36% of the entirefruit imports in the United States. In the case of fresh fruits,bananas comprise of about 75% of the entire value that is shippedfrom these countries to the United States.

Statisticsshow that for the period between 2004 and 2010, grapes, bananas andtropical fruits such as mangoes, guavas, papayas and pineapples madeup about 67% of the value of the United States fruit imports withbananas alone taking up 44% value share of the entire importspertaining to the three categories of fruit products. It is worthnoting that there has been a substantial change in the structure offruit import mix in the United States, with tropical fruits andgrapes imports increasing at a faster rate compared to bananaimports.

Fora number of decades, bananas have been at the top of the list offruits consumed in United States, as well as the leading fresh-fruitimport in the United States. Indeed, the banana imports volume hadbeen on a steady increase until its 1999 peaking, after which itmainly remained stagnant. The commodity’s value share in the fruitimport mix in the United States, however, has been persistentlydeclining since the 90s, from about 60% in early 90s to around 28% bymid 2000s. This modified banana imports status is an indication of anew chapter in the United States fruit imports history. Indeed, aconsiderably higher variety of fruits have been imported into theUnited States with the tropical fruits such as papayas, mangoes andpineapples taking the larger share. Pineapple imports, which were atone time a favorite fruit for processing, have seen increasedmarketing especially with regard to fresh consumption. This wasespecially after the entry of the popular sweet variety type in the90s. A large proportion of the pineapple imports in the United Statescomes from Costa Rica taking up about 82% market share sincemid-2000s. This was as a result of the Del Monte’s development ofthe sweet variety. The increased imports of a variety of othertropical fruits has also been on the increase partly boosted by theincreasing United States’ ethnic population, as well as thepromotional and research efforts carried out by industryorganizations. Statistics show that Mexico has taken up the largestproportion of the imports with a proportion of about 76% for papayasand 56% for mangoes. Nevertheless, the 21stcentury has seen an increase in the share of other countries in theUnited States trade market for tropical fruits including Belize,Ecuador and Peru. For the first time in history, mangoes importedfrom India were offered an import permit although there was therequirement that they be irradiated, while their prices were a numberof times higher than the Mexican mangoes. Of particular note is thefact that there has been a steady decrease in the commercialproduction of tropical fruits in the United States as they arerestricted by the climatic conditions to Hawaii in the case ofpapayas and pineapples and Florida in the case of mangoes. Thisdecline is attributed to weather or climatic conditions among others.

Onthe same note, grapes’ value share in the United States fruitimport mix has also increased from 16% in early 90s to around 22% inlate 2000s. Within this period, the volume of grapes imported to theUnited States increased by 61%, while the domestic production volumeincreased by about 16%. This increase in the United States’ tradeof the fruit demonstrates the crucial nature of imports as far asfilling the demand gap for fruit products during the off-season. Ofparticular note is the fact that a large proportion of grape importsget to the United States during winter, while the fresh market grapesthat are domestically produced are sold in the course of early falland summer. This means that consumers in the United States enjoyfresh grapes every time of the year. Further, this means that grapefruit pulp would be on high demand during winter in the United Statesas there is likely to be a reduction in the domestic production ofgrapes. In the first decade of the 21stcentury, Chile took up 71% of the entire grape import to the UnitedStates, making it the largest supplier of the grapes followed byMexico, which takes up about 26% of the same. It is worth noting thatMexico supplies the United States’ market at the time when thegrape shipments from Chile stop and prior to the entry of thedomestically-produced grapes into the market.

Inthe last two decades, the proportion of the total fresh fruit importsin the United States for other deciduous fruits such as peaches,pears and apples was relatively steady, ranging from 6% to 8% for alarge part of the years. The imports were mainly from Argentina, NewZealand and Chile. Pear and apple imports, generally, allow forfilling the supply gapes that are caused by the adverse weatherconditions at certain times of the year, as well as avail fruitvarieties that are considerably different from the domesticallyproduced ones. On the same note, peach imports are fundamentallycounter-seasonal to domestic production, with the pear and appleimports mainly coming late and early in the season when there islittle domestic supply of the same. For the period between early 90sand mid 2000, the volume of deciduous fruit imports increasedsubstantially by 60%, 41% and 32% for pears, apples and peaches. Inessence, the increasing imports expanded the access to varieddeciduous fruits all year round for the consumer and manufacturers inthe United States. Further, there was relative stability or slightdecline in the volume of domestically produced deciduous fruits, atrend that has continued to the present times. However, there hasbeen a relative stability in the real import prices for a largeproportion of the major imported fruits apart from grapes, whose realimport prices have been less stable since the beginning of the 21stcentury despite steady increases in mid 90s.

Withinthe past two decades, the increase in the per capita fruitconsumption in the United States mainly emanated from tropical fruitssuch as papayas, mangoes and pineapples, as well as grapes,blueberries, cherries, avocados, strawberries and tangerines. Indeed,statistics show that the per capita consumption of the conventionalfruits such as pears, oranges, bananas, apples and peaches initiallyincreased in the 80s, after which they decreased tremendously. On theother hand, the import share pertaining to the overall fresh fruitconsumption in the United States saw an immense increase (Scribner,2003). Indeed, for the periods between 1983-85 and 2003-2005, theshare of imports for fruits consumed in the United States went upfrom about 2.3% to around 15.5% in the case of citrus, and from 41.2%to 53% for the non-citrus fruits including bananas. On the same note,research shows that for the period between 1993-95 and 2003-2005, theshare of imports pertaining to fruit consumption in the case of thetop three fresh fruits that an average American consumes (apart frombananas) also saw an increase. For instance, oranges percentagechanged from 1% to 4.2%, grapes from 38.5% to 54.8%, and apples from6% to 7.1%.

Asa result of climate, the consumption of tropic fruit, which are of noor little commercial production in the country, has always beendependent on imports. In the case of a large number of other freshfruits and fruit pulp, the share of imports for fruits that areproduced domestically like oranges and apples, and to a considerablylesser degree, pears and peaches has been on the increase since theearly 90s. The share of imported grapes, which are typical seasonalproducts have experienced a substantial increase in the United Statesmarket. On the same note, the consumption of some highly perishablefruits like blueberries and strawberries in the United States haspersistently been supplemented during the off-season by imports sincelate 90s. Scholars have noted that, berries, which are some of themost fragile fruits (and not long ago, considerably seasonal) are nowavailable every time of the year as a result of the imports and theextended domestic seasons.

FundamentalFactors that Trigger Growth in the United States Fruit Imports

Theentry of any country, institution or entity into the fruit importbusiness to the United States necessitates the acknowledgement of thefactors that would be in its favor as far as the growth and demandfor more imports is concerned. Scholars have acknowledged that thereare numerous economic and institutional factors that have triggeredthis growth in the past, in which case they should be examined asthey could still do the same in the current times or even in thefuture. These may include change of consumer preferences over time,as well as rise in income. It is further noted that the tradeagreements between the importing and exporting countries, coupledwith advanced technology play a crucial role in the facilitation ofaccess to markets, thereby breaking via the conventional constraintsor restrictions such as growing season, location and climate.

Oneof the factors that have triggered immense growth in the import offruits in the United States is a strong demand for supply of fruitsthroughout the year. The increase in incomes have allowed consumersto have more disposable finances that they could dedicate to fruitsamong other items that they previously viewed as luxuries. On thesame note, enhanced shipping and handling techniques have increasedthe shelf life of these fruits and fruit pup, as well as enhanced theappearance of produce from other countries. This has allowed fillingthe demand gap where the production in the United States isinadequate or off-season. On the same note, research shows that therehas been increased interest in matters pertaining to health, whichhave increasingly influenced the preferences of consumers for fruitsand other commodities such as vegetables. Indeed, the United StatesDepartment of Health and human Services (HHS) and the USDA stated inits 2005 Dietary Guidelines for Americans that individuals need toconsumer a minimum of two cups of fruit and a similar amount ofvegetables every day. This gave industry associations the impetus toundertake active promotion for increased consumption of the twocommodities through educating their consumers about the dietary ornutritional properties of certain fruits such as mangoes,cranberries, blue berries and avocadoes. Further, these associationshave been offering advice regarding the manners in which individualscould incorporate the items into their daily diet without necessarilyusing much money. Also working in the favor of increased fruitconsumption is the increased diversity and sizes of ethnicpopulations, as well as the quest of consumers for new tasteexperiences. This has resulted in imported fresh fruits and pulpbeing increased and combined with the domestic production so as tooffer consumers in the United States with higher fruit varietiesevery time of the year.

Scholarshave particularly given the typical example of the year-round supplyfor fruit pulp, fruits and other fresh products that come to theUnited States emanating from countries in the Southern Hemisphere oreven Northern Southern Hemisphere. This is especially consideringthat these countries have their summers in the course of the NorthernHemisphere’s winter, in which case they play a crucial role inenabling the availability of fresh fruits and fruit pulp throughoutthe year in the United States, as well as exploiting or takingadvantage of the seasonal variations to expand or increase themarkets and even meet the increasing consumer demands for the same.Statistics show that in the period between 2004 and 2006, countriesin the Southern hemisphere took up about 74% of the total UnitedStates grapes imports, 79% of the kiwifruit imports, 83% of appleimports and even 73% of the entire pear imports. On the same note,almost all the imports of stone fruits such as plums, cherries,apricots and nectarines where taken up by these countries. Ofparticular note is the fact that the country that offers the highestproportion of fruit imports is Chile which offers 77% of the totalfruit imports to the United States from the Southern Hemisphere(Agnew &amp&nbspYokley, 2013). On the same note, close to 50percent of the fresh fruit imports to the United States fromcountries in the Southern Hemisphere are grapes, 96% of which areoffered by Chile. This only means that Chile would be the mostformidable competitor for fruit pulp exports to the United States byColombia.

Onthe same note, one may examine tender warm season fresh fruitsimports in the course of early spring or winter. Research shows thatSouthern Florida makes virtually the sole domestic outdoor growingarea that has the capacity to reliably produce the warm season fruitsin commercially-viable volumes throughout the winter. However, hardfreezes also restrict or threaten winter crops even in Florida inwhich case winter imports of fruit pulp and fresh fruit goes a longway in assisting the stabilization of the United States marketagainst shortfalls in its productivity as a result of heavy rains,freezes, as well as the effects of hurricanes on growing winter crops(Agnew &amp&nbspYokley, 2013). This means that the best period forimporting fruits into the United States would be during the winterseason, and early spring.

Onthe same note, recent times have seen immense advancement oftechnological innovations in aspects such as production, storage, andpackaging, as well as transportation in the last two decades. Thesehave been immensely helpful in allowing for fresh fruits and fruitpulp to be shipped to the potential customers all over the globe, notonly in a timely manner but also at extremely affordable costs. Thismay be seen in the case of the introduction of controlled atmospheretechniques within maritime transport close to three decades ago.These techniques allowed perishable goods such as fresh fruits andfruit pulp to be shipped in atmospheres that have carbon dioxide,humidity, temperature, nitrogen and oxygen maintained within optimallevels so as to retain the quality of food in the course of shipment.Such technology enables countries to have a year-round globalavailability of an immense variety of fresh fruits, therebyeliminating seasonality, as well as smoothing the price variations.In essence, suppliers of fresh fruits and fruit pulp such asColombia, Mexico and Chile must take advantage of the huge demand andseasonal gaps in the United States and increase their exports to thecountry. Underlining the high demand for fruit pulp or fresh fruitsin the United States is the fact that there has been a trend in therecent times where imports are derived from even farther distancessuch as Africa and other South American countries. Nevertheless, thegeographic distance has a bearing on the transport costs and,eventually, the cost of the fruit pulp. This means that countriessuch as Chile, Colombia and Mexico, which have a considerably closerproximity to the United States market have a bigger edge as far asoffering competitive prices for their prices is concerned. Coupledwith the seasonal difference of the three countries from that of theUnited States, it goes without saying that they have immense exportadvantage. Indeed, this only means that they would only have eachother as competitors in both the short-term and the long-term.

However,even in the face of these new technological innovations, there aresome fundamental phytosanitary problems in numerous parts of theglobe that hinder countries from doing trade with the United States.Researchers have used the example of APHIS, which generally utilizesa bilateral “positive list” technique, where it excludes everycommodity from all countries apart from individual products fromparticular sources that are approved for import. Indeed, the importprotocols that countries need so as to meet the stringentphytosanitary standards in the United States usually necessitate thatexporting countries make considerable private and public investments(Agnew &amp&nbspYokley, 2013). Researchers note the example of theimport protocol aimed at reducing the likelihood for the entry of theMediterranean fruit into the United States, which requires that theexporting country carry out regular field surveys, while the producesneed to establish special packing houses.

Comprehendingthe United States market

Theterm “United States Market” does not refer to any particularmarket per se, rather it refers to numerous markets that aresegmented by geography, race, citizenship status, nationality, age,income bracket, industry, trade, profession, political persuasion andoccupation among other factors. This should not be taken assurprising especially considering the immense size of the UnitedStates, coupled with the relative affluence of the more than 291million people residing in the country. With such a population, itwould be unlikely that the desires and needs of the population wouldbe uniform across the country. Indeed, it is difficult for Oregoniansto have similar likes and preferences as their North Carolinacounterparts. Scholars have acknowledged that not every industry ortrade will be operational or functional in every state, as productsare often changed to suit the different climatic regions. This isalso the case for fruits. Researchers note that such varietiespresent Colombian exporters and business people with numerousopportunities for trade as they can choose their commodities to suitthe likes and preferences of individuals in different parts of thecountry. Underlining the immense nature of these markets, one canexamine a particular state as a nation that has a GSP (Gross StateProduct) that is equivalent to the GDP (Gross Domestic Product) of acountry. This implies that the GSP of California would be equivalentto the GDP of France, while the GSP of Texas may be equivalent toCanada’s GDP. However, such a wholesome examination of the statesmay not tell the entire story in spite of being helpful incomprehending the size of the market. This means that Colombian fruitexporters would need to undertake a comprehensive market research andcome up with a well thought-out export strategy focused on specificareas.

Barriersto the United States Market

Whileexamining the United States market, it is imperative that theexporters be aware of the varied hindrances or impediments to tradethat are presented by non-tariff barriers, “buy American”policies and security issues. In general, barriers to trade in theUnited States may be categorized into non-tariff barriers or tariffbarriers. Tariffs refer to taxes that are applied to merchandiseimports, as well as (less frequently) the exports. Scholars havenoted that these levies maybe applied on ad valorem basis, where anexporter would be required to pay a fixed proportion of the value ofthe imported items, or even on specific basis where a fixed levy perunit of the imported item would have to be paid. Non-tariff barriersunderline the government policies or measures other than tariffs,that distort or restrict international trade. The elimination andlowering of tariffs for instance by free trade agreementsnecessitates that non-tariff measures are addressed as they alsofrustrate trade. These may include discriminatory procurementpractices by the government and discriminatory measures aimed atsafeguarding intellectual property, as well as import quotas. Othercategories of non-tariff barriers may include the technical barriersto trade such as the requirement by governments to undertakeunnecessary certification and testing of the imported items. Anexamination of the varied barriers that affect the fruit pulp importswould allow for the determination of the manner in which it affectsimporters’ access to the United States market, the pricing of theimported fruit pulp and the subsequent costs of carrying out businessin the United States.

Inaddition, the smooth flow of import from Colombia to the UnitedStates may be impended by security. Since the September 2001terrorist attacks, the United States government became immenselyconcerned about its domestic security. This has had a significantimpact on the manner in which imports from Colombia and other partsof the globe get into the United States. Indeed, security measureshave persistently been altered, which may complicate the exportbusinesses. For instance, they may slow the traffic from the portsespecially when they are required to undergo more documentation andpreparation.

Further,there are the “buy American” policies that may hinder tradebetween the two countries. A large proportion of institutions andagencies in the United States are required to purchase items that areonly produced domestically. This is often bound to create biasagainst business entities that are locally registered or that obtaincommodities from local producers.

GettingInto the United States Market

Thereare varied options for getting into the United States market, thesuitability of which is determined by the products being offered. Theimporters may choose to establish a business presence in the UnitedStates that would allow them to sell the products directly to thebuyers or use a representative of the manufacturer or even establisha partnership that have like-minded American businesses.

Directselling may be undertaken in varied ways. First, an importer mayestablish a presence in the United States through opening a branch ofhis company in the country or establishing a distinctive UnitedStates subsidiary. Upon establishment of the subsidiary or businesspresence, it is imperative that the company obtains certificates ofAuthority for every state where it will be doing business throughregistering with the federal, state and local tax authorities. Thisshould be complemented by obtaining the necessary professionallicenses.

Fora large number of exporters to the United States, distributors comeas the most common intermediaries, alongside trading houses andrepresentatives. The key benefit for using intermediaries is that onewould obtain an immediate presence in the country’s market withoutnecessarily setting up his own sales operation. Distributors buy theproduct, import it to the United States and sell it to the end usersoften offering warranty or after-sales services. As much as a largeproportion of the burden would be taken away from the Colombianproducers, the profit margins may be considerably lower, not tomention that the producers have relatively less immediate controlover the product (Major, 2003). Such arrangements also give producerslittle information pertaining to the customers of their products,which may affect marketing approaches and manufacturing decisions. Ininstances where a company cuts links with the distributor, it may beforced to rebuild its customer base, which may not be easy.

Representatives,on the other hand, are agents working on a commission and usuallyspecializing in products that are related in some way. In this case,fresh fruits agents would, undoubtedly have no problem selling fruitpulp or even processed ones (Major, 2003). Unlike distributors,representatives never own the products that they represent ratherthey have specific territories where they sell the products tospecific sets of consumers.

Tradinghouse, on the other hand, come in handy in instances where importerswant to get items into the United States market without engaging inthe actual export work. These encompass Canadian or United Statesbased firms that engage in the handling of the entire exportingprocess to the products to the United States right from the initialresearch of the market going forward (Major, 2003). The onlydisadvantage with this technique is that the Colombian fruit exporterwould not get its own exporting expertise and would have littlecontrol regarding the manner in which its products are sold orrepresented.

Inworking with intermediaries such as distributors, representatives andtrading houses, it is imperative that the company notes that theusual good business relationships principles apply. It is imperativethat the exporting party pays attention to the provision of suitablecase studies, product literature, promotion and applicationinformation (Major, 2003). Further, speedy attention should be givento the requests and questions of the representatives, while accurateinformation pertaining to the product development, company policiesand competitive factors should also be supplied. Lastly, commissionsmust be paid in competitive levels and in a prompt manner.

StrategicAlliances for Selling Fruit Pulp in the US Market

Moreoften than not, getting into the United States market as a soloplayer may be an inappropriate approach for any exporter. The mostviable alternative involves establishing a strategic alliance with anAmerican company in a mutually rewarding agreement where the lateroperates within a specific United States market. However, consultingexperts such as accountants, lawyers and bankers among others wouldbe imperative so as to determine the rights and responsibilities ofevery party. It has well been acknowledged that this approach comeswith a wide range of relationships from which one would choose. Themost appropriate arrangement depends on the exporting company and itsrequirements. One of the major options for an alliance is licensing,where another business would be granted the right to legally use thecompany’s products and sell them. More often than not, this optiondoes not involve the provision of all rights to such products.Another option would be co-marketing, which is undertaken based on aproportion of sales and allows the partner in the United States totake advantage of the existing distribution networks, as well asdomestic markets. Franchising may also come in handy as it wouldinvolve giving the franchisees the right to sell a set of fruitproducts alongside the established business trademarks and systems,the use of which is regulated by the licensing agreement. For theproducers or exporters of goods, it is often advantageous to have analliance in order to penetrate the United States market. Indeed, thiswould be one of the most effective ways of resolving problemspertaining to professional accreditation, legal status, United Statestax, as well as movement of personnel across the border. On the samenote, the combination of the financial and technical strengths of twoentities may increase the competitiveness of the products offered inthe United States market, which is an incredible strategy in thehighly aggressive business environment.

WorldTrade Organization Agreement on Sanitary and Phytosanitary Measures

Colombianexporters of natural resource products are faced with a certainclass of standards referred to as sanitary and Phytosanitary Measures(SPS), which make up a fundamental component of the trade regime.Exporters of agricultural and other natural resource products arerequired to meet these standards before shipping their goods acrossthe United States border. This agreement underlines the applicationof animal and plant health regulations and standards, as well as foodsafety through setting out the fundamental rules pertaining to theseitems. It enables countries to come up with their own standards whilealso requiring that the regulations be founded on science. Theapplication of these rules is only to the extent that is necessaryfor plant animal and human health and life. Further, they should notunjustifiably or arbitrarily discriminate between countries that agesimilar or identical conditions. Countries that subscribe to theagreement are encouraged to make use of internationalrecommendations, guidelines and standards where possible.Nevertheless, they may use measures that lead to higher standards incases where they are justified by science. Indeed, higher standardsmay be set on the basis of appropriate evaluation of risks subject tothe consistency rather than arbitrariness of the approach.

Rules,Regulations and Procedures for the Exportation of Fruit Pulp into theUnited States

GeneralLaw Requirements

Underthe laws of the United States in the United States Federal Food, drugand Cosmetics Act (FD&ampC Act), food products importers who aim atintroducing them to the country’s commerce have the responsibilityfor ensuring or safeguarding the labeling, safety and sanitary natureof the products in line with the United States requirements. FDA orFood and Drug Administration does not have the capacity under the lawto make any approvals, certifications, shipments and labels or evensanction individual food products, shipments, labels and importers(Faye, 2004). In essence, importers may import foods to the countrywithout any sanction by the FDA provided that the facilities that areproducing, handling or otherwise storing the products have the FDAregistration and have provided the agency with prior notification ofthe incoming shipments. Of particular note is the fact that theimported fruit pulp would be subject to the inspection of the FDAonce it is offered for import at the United States port of entry(Faye, 2004). Indeed, the administration may detain any shipments ofimported products in instances where they are found to have notcomplied with the United States requirements.

Registrationof Facilities

Underthe United States public Health Security and BioterrorismPreparedness and Response Act of 2002, it is required that foodfacilities, apart from individual farms and private homes, thatundertake the production, storage and handling of food products thatare aimed for sale in the United States should be registered with theFDA (Faye, 2004). This registration of facilities does not come atany cost and may be carried out over the internet. Of particular notis the fact that a United States agent who resides in the country hasto be listed for any foreign facility that is undergoing registration(Faye, 2004). On the same note, the Bioterrorism Preparedness andResponse Act requires that importers offer prior notice to the FDAfor every food products shipment, which has to be carried out overthe agency’s website.

Withregard to the safety and sanitation of food, the FD&ampC Actrequires that fruits imported and traded into the United Statesshould not contain or bear any deleterious or poisonous substancesthat may render or make them injurious to health or even consist inpart or in whole of any filth, decomposed substances or putrid orotherwise be unsuitable for consumption (Faye, 2004). This mayinclude evidence of insect or rodent infestation or even the presenceof pesticides that are prohibited in foods, or even amounts ofallowable chemicals or pesticides in amounts higher than theestablished tolerances. It is required that the fruit pulp should notbe prepared or packed, or even handled in unsanitary conditions inwhich the products are rendered injurious to health or contaminatedwith filth (Faye, 2004).

Nevertheless,it is not required that manufacturers offer any type of test resultsto the FDA as a pre-condition for the production, marketing, ordistribution of foods, nor does the agency accept food productsamples provided for testing by distributors, importers ormanufacturers. According to the United States food laws, distributorsand manufacturers are expected to implement the necessary andreasonable measures that would ensure the sanitation and safety oftheir food products.

RetailLabeling in the United States

Accordingto the provisions of FD&ampC, the United States Fair Labeling andPackaging Act alongside the Nutrition Labeling and education Actnecessitates that the containers and retail packages of food productsthat are sold in the United States must have labels in English (orSpanish in the case of Puerto Rico). A wide range of specificinformation should be included in the labels. First, there should beproduct identity, the phone number and name of the responsible firm,which could be the distributor or manufacturer both foreign anddomestic, the net weight of the contents in metric terms and English,a list of the ingredients in the fruit pulp in order of predominanceor descending order, as well as the nutritional information (Faye,2004). The nutritional information should, however, be supported byfacts regarding the components of the fruit pulp including anyadditives or preservatives that have been incorporated. Suchinformation pertaining to the nutritional value, however, does nothave to be supported by information regarding the components in thecase of fresh fruits as they only have a single component.Nevertheless, the necessary information is required to be done in amanner that ensures that it remains accessible to the consumers underthe normal conditions of use and purchase (Faye, 2004). Of particularnote is the fact that small manufactures may be exempted fromrequirements pertaining to nutritional labeling. Further, importedfruits should incorporate a label statement that shows the countryfrom which the products have been derived. In the case of bulkcontainers of fruits and food products that are provided for importto the United States, it is imperative that they have the followinginformation in English on the containers’ outside (Faye, 2004).First, the product’s identity, followed by the name and phonenumber or address of the responsible firm, which could be its importagent, importer, distributor, consignee or manufacturer (Johnson,2002).This should be complemented by information regarding the contents’net weight in English measurement, which could be pounds or ounces,as well as a list of the ingredients that are incorporated in theproduct and the country from which the products have originated(Johnson,2002).

Further,the labeling should include information regarding the allergens inthe food products. It is imperative that fruit processors andmanufacturers are aware of the guidance from FDA regarding theallergen labeling and food allergens in products. On the same, theUnited States Congress in 2004 enacted a legislation referred to asthe Food Allergen Labeling and Protection Act, which may necessitatea considerably higher explicit listing of allergenic ingredients onthe retail food products’ labels (Faye, 2004). The law wasimplemented at the beginning of 2006.

Furthermore,there are laws regarding low acid canned and acidified foods such asfruits and fruit pulp. Subject to their ingredients and the manner inwhich they are packaged and processed, canned or bottled fruitproducts fall under the category of “acidified foods” (AF) or“low acid canned foods” (LACF). LACF products underline thermallyprocessed products that are packed in sealed containers incorporatingacid content beyond pH 4.6 and containing sufficient water or “wateractivity” that enables the growth of anaerobic micro-organisms(Faye, 2004). In order to safeguard the safety of food in the UnitedStates market, low acid canned food products are controlled in aconsiderably more regular manner than other foods so as to protectthem from contamination in the course of processing by detrimentalmicroorganisms or their toxins (Johnson,2002).Manufacturers and processors of fruit pulp often add some acidicingredients on low-acid canned food products so as to alter the pHand prevent the growth of microbial, thereby making acidified foods(Faye, 2004). Foreign facilities that import their LACF or AFproducts to the United States have to register such establishmentswith the LACF office of FDA, as well as file the processinginformation regarding each LACF or AF product that they aim to importinto the country (Johnson,2002).

Additionally,the FDA controls the types and level of additives that areincorporated in fruits and other food products. Prior to marketing,new additives have to be reviewed and approved by the FDA (Rosa,2003). The agency is also charged with the regulation of the variedcontact substances and packaging materials for foods and fruits.Packaging materials are supposed to be incapable of impartingdeleterious substances, safe for use, and unable of imparting odorsand off-flavors to the packaged product (Faye, 2004).

Ininstances where the fruits are to be processed, the Hazard Analysisand Critical Control Unit safety plan must be implemented in thefacility where the juice products are to be processed (Rosa, 2003).Indeed, juice products importers have to undertake “affirmativesteps” that would ensure that the facilities that produce theseproducts that target the United States market have in place anoperational or functional HACCP plan (Faye, 2004).

Stringentrequirements have also been placed with regard to the import offruits and fruit products that have been produced using particularpesticides (Rosa, 2003). Indeed, the Food and Drug Administration hasput in place certain practices that fruit growers who produceproducts aimed for introduction to the United States market mustfollow so as to avert or at least minimize the possibility ofcontamination from disease causing organisms (Rosa, 2003). Similarrestrictions are made with regard to tolerances for pesticides thatare allowed on particular agricultural products. FDA inspectionpertaining to an imported agricultural commodity may be carried outto test for the presence of chemicals and pesticides that the EPA isyet to establish tolerances for. It is noteworthy that importedshipments of food commodities that are yet to have their tolerancesestablished may be detained or even refused entry.

Uponarrival at the entry port, the shipment has to be declared by theagent, broker or importer to the United States Customs and Borderprotection office through filling an “entry notice” alongside theacquisition of a bond (Rosa, 2003). This agency then sends anotification to the FDA staff about the shipment, after which thelater may sample or inspect the shipment so as to ensure that it hascomplied with the United States requirements.

Examinationof the Canadian Fresh Fruit and Fruit Pulp Market

TheCanadian fruit market comes with numerous similarities with theUnited States market, not only with regard to the types of fruitsthat are available but also the regulations that have been put inplace with regard to imports of the same. Indeed, the country isknown to be a major producer and consumer (and importer) of a varietyof fruits. Numerous fruits are commercially grown in Canada includingtender fruits such as peaches, cherries, prunes, plums, pears andeven apricots, as well as berries such as raspberries, strawberries,blueberries and cranberries. Researchers note that a wide range ofthese fruits are native to the country including saskatoons, thelubruska grape, cranberries, blackberries and the blueberries. Thefruit pulp industry in the country has appropriately adapted itselfto the short growing seasons and cold climate that the countryexperiences. A large proportion of fruits that are produced in thecountry emanate from Southwest British Columbia and Southern Ontario,which experience around 180-frost-free days per year (Agnew &amp&nbspYokley,2013). On the same note, parts such as the Maritimes and Quebecproduce a considerable amount of fruit in spite of having only around120 frost-free days every year. This underlines the fact that thecountry provides an immense market for tropical fruits as it seems toprimarily concentrate on berries and cherries.

Testamentto the strength of the fruit industry in the country is recentstatistics pertaining to the income derived from the industry.Statistics show that the fruit industry experienced a mixed growth in2011, with the overall increase in the farm area dedicated to fruitsin almost every province in the country apart from Alberta,Saskatchewan and Manitoba. This was in spite of the decrease in theareas where fruits such as apples, sour cherries and labrusca grapesare grown. These three fruits decreased by 2.7 percent, 1.2 percentand 5.7 percent respectively. On the contrary, peach farm areas,sweet cherries and low-bush blueberries experienced immense growth tothe tune of 4.2 percent, 14.8 percent and 4.7 percent (Agnew&amp&nbspYokley, 2013). On the same note, there was an increase inthe total marketed value in the same year by around 14.4 percent inthe entire nation, which marked an increase by $94.57 million fromthe previous year to around $753.51 million. This increase wasprimarily attributed a growth by close to $57 million in Quebec, aswell as a similar trend but by $27 million the marketed value of BC’sfruit. It is, therefore, not surprising that every province in thecountry experienced an increase in the fruit farm cash receipts,apart from Ontario and Alberta, whose cash receipts decreased by 2.1percent and 23.9 percent respectively. Quebec experienced the highestyear-over-year increase in its fruit farm cash receipts among all theprovinces as it increased to $170.17 million, which was an increaseof about 41.3 percent (Agnew &amp&nbspYokley, 2013). As notedearlier, a large proportion of the entire growth in Canada may becredited to the immense strength of the blueberry industry, whichexperienced an increase in its farm cash receipts by about $56.16million, which is about 38.2 percent. However, the overall fruit farmcash recipes declined slightly in the following two years, buteffectively recovered to the 2008 levels, with 2011 recording a totalof $747.65 million.

Anexamination of Canada`s fruit exports would also tell a taleregarding the types or species of fruits that any country intendingto import fruits to Canada should give a wide berth. Research andstatistics have shown that Canada`s largest exported fruits wereblueberries (both low-bush and high-bush), which accounted for almost$82 million and $254 million for fresh and frozen blueberriesrespectively. Of particular note is the fact that the countryexperienced an increase in its fruit exports in 2011. Indeed, freshfruit exports to the U.S increased to $303.49 million, which was a14.4 percent increase or rather a $38.11 million increase over theprevious year’s exports. However, this was still considerably lowerthan the 2008 high which amounted to about $338.58 million. In thesame year (2011), fruit exports to Netherlands and Japan experienceda rebound reaching $25.1 million and $34.62 million respectively.This means that the United States was the largest fruit exportdestination for Canada as it took up about 59 percent of the totalfruit exports from the country.

Onthe same note, Canada has persistently been a net importer of freshfruit and fruit pulp with a large proportion of its imports from theUnited States. Indeed, statistics show that about 49.5 percent of itsfruit imports, which amounted to about close to $2 billion emanatedfrom the United States alone. It is worth noting that there are othermajor sources of fresh fruit and fruit pulp imports to the countryincluding Costa Rica, Chile and Mexico, whose imports were valued at$186 million, $346 million and $371 million respectively (Scribner,2003). On the same note, bananas have persistently been the mostimported as at the 2011 statistics, making up about 506,000 tons,whose value amounted to close to $400 million. However, the largestfruit import by value in Canada was grapes, whose close to 180,000tons amounted to about $406 million in the same year. Scholars havenoted that Canada’s fruit imports have experienced a steadyincrease, with the rate of growth being way higher or faster than thefruit exports. As at 2011, the total fruit imports to Canadaincreased by about 10.59 percent, while its exports registered a27.55 percent increase. This resulted in a 8.61 percentyear-over-year increase in the fruit trade deficits, which amountedto $6.5 billion. This was marked as the highest fruit trade deficitin the country within the previous five years, which was alsofollowing the ever-increasing and long-term trend.

Further,apples occupied the top spot as far as value and production volume isconcerned, taking up about 25 percent of the total fruit FCR, aheadof grapes and blueberries. As a result of the fast expansion of theblueberry industry in the last one decade, blueberries took up thetop sport in 2004 and persisted in becoming the fruit that generatedthe highest FCR of fruit cash receipts up to around 2007 (Liebmanet al, 2012).Unfortunately, there was a similarly significant increase in the areaunder which blueberries were produced, not only in North Americawhere both low brush and high brush blueberries production areaincreased but also in the South America where high brush blue berriesunderwent a significant increase. This persistent increase put animmense pressure on the prices of blueberries, which havepersistently undergone a sharp decrease since 2007 (Liebmanet al, 2012).This has resulted in a reduction of blueberries fruit cash receipt byover 50 percent since 2006, which cut short the persistently upwardtrend that the sector was enjoying. Of particular note is the factthat grapes made up the third most crucial fruit crop as far as valuewas concerned followed by raspberries, strawberries and cranberries(Liebmanet al, 2012).A large proportion of high-bush raspberries, sweet cherries andblueberries are produced in British Columbia, while tender fruits,grapes and apples are largely produced in Ontario. Quebec, on theother hand, is the highest producer of low bush strawberries,cranberries and blueberries.

In2009, statistics show that fruit crops took up about 297,000 acres ofplanted acreage, which was a 2.4 percent increase from the acreage in2008. Around 55% of the total acreage was primarily occupied byblueberries production, with apples, grapes, cranberries andstrawberries taking up 17 percent, 10 percent, 4.5 percent and 3.7percent respectively (Agnew &amp&nbspYokley, 2013). In the sameyear, the total fruit production went to 793,000 metric tons, whichwas a 3 percent increase from the total fruit production in 2008.Statistics also show that the leading fruit crops in productionvolumes were apples, blue berries, cranberries, grapes, peaches,strawberries, cherries and raspberries, which had 432,306 metric tonsor 55 percent of total, 103,110 metric tons or 13 percent, 86,779metric tons or 11 percent of total, 77,941 metric tons or 10 percent,23,428 metric tons or 3 percent, 19,294 metric tons or 2.4 percent,23,446 metric tons or 3 percent and 12,620 metric tons or 1.6 percentof total respectively (Agnew &amp&nbspYokley, 2013). Of particularnote is the fact that the country has been ranked the second largestproducer of cranberries and blueberries after the United States, aswell as the largest producer of low bush blueberries in the entireworld. The planted acreage for cranberries and blueberries has beenon a significantly steady increase in the last half decade as aresult of increased demand for these fruit (Agnew &amp&nbspYokley,2013). This demand has been triggered by the strong marketingcampaigns coupled with the body of scientific evidence that hasoutlined the health benefits that have enhanced or made an immensecontribution to the increasing consumer interest and awareness.

Furthermore,the fruit market has experienced or had an immense boost in the lastfew years. Scholars have particularly noted that the wines and wineryindustry has experienced considerable success within the last decade,which has contributed immensely to the building of the country’sreputation for the production of internationally recognized wines.This has not only created a market for the domestically-producedfruits but also for imports from other countries. Indeed, theestablished reputation for the production of internationallyrecognized wines has resulted to an increase in the acreage that isdedicated to the production of grapes, which has subsequentlyresulted in a 33 percent increase within the last decade. On the samenote, areas that are dedicated to the production of tender fruits andapples have undergone a steady decline apart from the case ofcherries especially the sweet cherries that have immensely benefitedfrom the advent of new cherries varieties that mature considerablylater, produce bigger fruits and fetch higher prices in the Canadianmarkets. In addition, the sweet cherry breeding program instituted atthe Agriculture and Agri-Food Canada research station situated inSummerland has played a crucial role in enhancing the success of BCsweet cherry industry via the underway or continuing introduction ofnew varieties after the development of the large and firm sweetcherry varieties that have a wide range of maturity periods. Theresearch station is categorized as one of the oldest sweet cherrybreeding programs in the entire globe as it was established in 1936,in which case it is not surprising that the country would be one ofthe world’s largest producers of cherries and berries. Inparticular, late maturing cherry varieties have played a crucial rolein sustaining the competitiveness of the BC cherry industry in boththe Japanese and the American market.

Stillon the Canadian market, one would want to examine the effects of theadoption of NAFTA or North American Free Trade Agreement. As in thecase of the United States, Canadian fruit import value in the exportmarkets such as Mexico and the United States experienced asignificant increase with the adoption of NAFTA in 1994. In terms ofvalue the country’s fruit imports from the United States had animmense increase of about 118 percent, from $1259 million to close to$2744 million in 1994 and 2009 respectively. On the same note, thecountry’s imports from Mexico had a significant increase within thesame period, from $71.5 million to around $327.6 million, which wasessentially a 358 percent increase. Further underlining the effectsof FTA on trade is the impact of the enforcement of the Canada-ChileFTA in 1997, where the imports of the Chilean fruits experiencedpersistent growth. Indeed, statistics show that the imports, in termsof value had increased from $188.6 million to around $452.7 million,from 1997 to 2009, which was a 140 percent increase (Liebmanet al, 2012).

Likea large number of other sectors, the Canadian fruit market has beenfaced by an increasingly competitive environment as has thehorticultural sector. This has necessitated that it continues toundergo fundamental changes, as well as adapt so as to be sustainablein the long-term and the short-term. More than 80 percent of fruitconsumption in Canada comes in the fresh form. As much as the entireconsumption of processed and fresh fruit has experienced an increaseby 24% since early 90s, a considerably increasing share ofconsumption has been satisfied or met by imports. There are variedfundamental challenges that face the sector including an increase incompetition emanating from countries that produce fruits at a lowcost, the increasing costs of production, the appreciation ofCanadian dollar, as well as the increased retailer expectations andconsolidation. Indeed, a large number of factors that influence thecurrent competitive market, as well as the global conditions of tradethat have an impact on the country’s agricultural trade. One ofthe key factors that have affected the Canadian fruit industry wasthe expectations of the consumers for year around available for alarge variety of fruits, as well as demanding for an increasingnumber of types of high-quality fruits at incredibly reasonableprices. Scholars have underlined the fact that such aspects come withopportunities or chances for the counter-seasonal supplies especiallyfrom countries such as Colombia, whose altitudes, climate andtemperatures allow for, more or less, a year-round consumption. Onthe same note, Canadian consumers have become considerably healthconscious, in which case they have taken into immense consumption offruits and vegetables. Indeed, even in instances where consumers donot go for fresh fruit, they demand fresh juice rather than theprocessed type. This has eventually increased the demand for organicfruits and even driven imports higher.

Inaddition, the Canadian market has a considerably open domestic importregime, which, coupled with the lower average import tariffs in thecountry have increased the amounts of imports of all commoditiesincluding fruits and fruit pulp (Liebmanet al, 2012).This is especially with the free trade agreements in which Canada hasentered with a large number of countries. Indeed, products from alarge number of leading suppliers get into Canada at considerablypreferential duty rates or even duty free. This means that in thecase of Colombian fruits trade with Canada, it would be imperativethat the former’s government pursues a free trade agreement thatwould allow for the elimination of trade barriers such as importduties, or even the revision of the same to preferential levels.

Further,the Canadian fruit industry faces immense challenges from countriesthat have the capacity to produce the same at low cost. Theseprimarily include Chile and Mexico whose geographic location allowsthem to not only produce fruits almost all year round but also at aconsiderably lower cost (Aksoy&ampBeghin, 2004).This means that the prices of their fruits are bound to be extremelylower than those produced in Canada, even after the addition oftariffs, which challenges the domestic fruit sector immensely.

Further,the Canadian fruit industry has been immensely impacted by the retailconsolidation. Indeed, the retail sector consolidation in theCanadian market, the United States and a large number of countriesacross the globe has impacted the relationship between buyers andsuppliers. Scholars have noted that large retailers often desirelarge proportions or volumes of consistent products so as to offer anelement of uniformity in all their stores. Of particular note is thefact that such levels of consistency can only be provided or suppliedby large shippers. Research and statistics have shown that retailerswho were purchasing a particular category of produce items acquiredmore than 90 percent of their required volume from only foursuppliers. This means that in the export of fruits to Canada, itwould be imperative that exporters collaborate or join hands so as tomake groups that will have the resources necessary for meeting theyear-round demand for fruit pulp or even fresh fruits across thecountry.

Healthand Safety Requirements in the Import of Fruit Pulp to Canada

Theimportation of fruit pulps to Canada necessitates that entitiesfollow certain regulations that are aimed at ensuring that thefoodstuffs imported do not have any contamination that would havedetrimental effects on the health of consumers. First, it is requiredthat the produce imported or taken to interprovincial trade as foodshould be edible, uncontaminated and free from any live insect,snake, spider, scorpion or any other living thing that has thecapacity to injure one’s health. In addition, such produce shouldbe prepared in a clean or sanitary manner.

Ininstances where such produce has been irradiated, the irradiationshould be carried out in line with division 26 Part B of Food andDrug regulations. Importers are prohibited from blending theircontaminated mix produce with other produce of similar type so as toallow it to meet the above requirements. As regarding the preparationof the produce in a sanitary manner, such preparation should becarried out in a manner that no polluted or stagnant water isutilized in the fluming and washing of the produce. Indeed, onlyportable water should be used in rinsing the final produce so as toeliminate any surface contaminant prior to processing and subsequentpackaging. In instances where the final rinse water is reused, itshould only be used in the initial fluming or washing of the produce.Such sanitary preparation measures should also extend to theequipment that is used in handling the produce.

LabelingFruit Pulp Exports to Canada

Inaddition, imports into the Canadian market are expected to subscribeto the Canadian laws pertaining to labeling of the containers. It isstipulated that every container that has prepackaged produce shouldbe labeled with the produce’s grade name that is specified in orestablished by the Canadian regulations regarding the same. Inaddition, every shipping container that has the produce is to belabeled in an official language including information such as theproduce’s common name, the produce’s grade name (apart fromimported produce), its net quantity, the principal place and identityof business of the individual for or by whom the produce has beenpackaged and grown for resale

Everycontainer of fruits must have a common name label. Since vegetablesand fruits are deficient of prescribed names in regulations, it isoften acceptable to use the name by which the fruit is generallyknown as a common name. On the same note, fruit pulp would beexempted from declaration of common name in instances where theprepackaged produce is not only visible but also identifiable in thepackage, or when the shipping container is transparent or an opencontainer. This exception is also extended to produce in prepackagedcontainers or where the common names in the prepackaged producecontainer in the master container is clearly and easily discerniblewithout necessarily opening the outer container.

Onthe same note, there is a requirement regarding the indication of thenet quantity of the prepackaged produce. Every prepackaged producecontainer or shipping container has to be labeled with the netcontainer. This net quantity has to be declared by numerical count,volume or weight, in metric units or in both Canadian and metricunits. In instances where both units are used, it is imperative thatthey be grouped together with the metric units appearing first. Whileit is not required that phrases such as “net contents”, “netweight”, “net quantity” or “net” be used as a component ofthe declaration of the net quantity, they should appear in Englishand French when used.

Inaddition, it is imperative that the containers incorporate a labelindicating the principal place and identity of the business of theperson for or by whom the product has been produced.

Theaddress and name does not have to be indicated on the outercontainers in instances where the details are clearly and easilydiscernible on or in the inner container without necessarily openingthe outer one. Of particular importance is the completeness of theaddress and name so as to enable communication in writing with therespective party. In instances where phrases such as “packed for”or “packed by” is shown with the address and name on theprepackaged container’s label, it has to be in both English andFrench. Further, fruit pulp, unlike fresh fruit, is not exempt fromindicating life date. In the case of fresh fruits, the durable lifedate may be voluntarily applied to prepackaged containers, but theinformation has to be in the appropriate format. In instances wherethe durable life date is voluntarily applied to a shipping or mastercontainer that will not be disposed off or sold at retail, thedurable life date does not have to be required in any specificformat.

Whilefresh fruits may be exempted from declaring the list of ingredientsas they are considered single ingredient foods, prepackaged productsthat have more than a single ingredient must list the ingredients ina descending order of the proportion of the prepackaged product oreven as the prepackaged product’s percentage. Of particular note isthe requirement that the percentage or order of the ingredients priorto their combination to make the prepackaged product would be shown.However, the proportion of ingredients in prepackaged fruit pulp maybe varied over a 12-month period since the application of the labelas long as there is a clear statement to the effect that theproportions are subject to change. In this regard, it is worth notingthat food additives are also categorized as ingredients, as are foodallergens. In the case of the later, the source has to be declared inan easy to comprehend and consistent terminology.

Stillon the labeling, processed fruit, unlike fresh ones that do not haveany added ingredients, is not exempt from indicating the nutritionfacts. However, prepackaged fruit pulp that is solely aimed at beingused as ingredients for manufacturing other prepackaged products thatwould be sold as ingredients in preparing food by other agencies orbeing sold to consumers ate retail levels do not have to display thenutritional facts table.

Furthermore,there are regulations regarding the grading of the imported fruitsand fruit pulp. In Colombia, as in a large number of countries, thereexist grade standards for these foods. Such foreign grades would beallowed on the imported produce’s label as long as it is sold inthe original container, conforms with the Canadian grade standards,and that the grade name that has been established in Colombia are asubstantial representation of similar amounts as the import gradethat is spelt out in Canada’s regulations. Nevertheless, thereforeign grade may be indicated on the imported fruit pulps for whichthere exists no grades established in the country. This would beextremely applicable in the case of Colombia especially consideringthe wide range of fruits present, unlike the case of Canada. Forinstance, research has shown that some types of oranges present inColombia are not included in the Canada’s grades, in which case itwould be allowed to be graded as Colombia No. 1 or No. 2.

Ininstances where a dealer desires to market produce that is yet tomeet the requirements of the fruit and vegetables registration, hecan make an application to test-market the product for up to 24months. This request would be approved as long as the produce’stest market is valid on the basis of the information available, thedealer offers evidence pertaining to the suitability of the containerused for the product, the container’s labeling is not misleadingwith regard to the character, safety, value, nature, composition,quality and quantity, origin and variety of the product.

CONCLUSIONAND RECOMMENDATIONS

Theimportance of marketing cannot be gainsaid as far as theprofitability and sustainability of any organization or businessentity is concerned. Marketing encompasses the numerous activitiesthat are undertaken in an effort to communicate or relay the messagepertaining to the value of a service and/or product to consumers,both current and potential, with the aim of selling that service orproduct. Of particular note, however, is the fact that marketingrevolves around the science of selecting the target market via marketsegmentation, market analysis, as well as the comprehension of theconsumer behavior and the provision of superior consumer value. Theseneeds and wants would be satisfied by marketing via the process ofexchange and the establishment of long-term relationships that wouldensure the profitability and sustainability of the business in boththe short-term and the long-term. As much as the choice of marketingstrategy is crucial to the success of any marketing activity, theidentification of the appropriate marketing environment is of utmostimportance. Indeed, scholars have acknowledged that staying ahead ofconsumers makes a crucial component of a marketer’s task. It iscrucial to comprehend the marketing environment so as to understandthe concerns and motivations of the consumers, as well as make thenecessary adjustments to the product in line with the needs and wantsof the potential customers. In this regard, marketers utilize theprocess referred to as marketing environmental scans, whichpersistently obtains information pertaining to the events that aretaking place beyond the organization, as well as identify thethreats, opportunities that trends of the business (Brezina,2009).There are varied fundamental elements that would have to be examinedwith regard to the marketing scan including the demographic forces,competitive forces, technological forces, regulatory forces, economicforces and cultural forces. Marketers have to examine the areas whereopportunities and threats emanate from in the consumers’ world soas to maintain a profitable and productive business. Indeed, thevaried forces of demand in the consumers’ world have to be matchedwith the forces of supply in the marketers’ world so as to allowfor sustainability of businesses (Brezina,2009).This is exactly what is needed in the case of fruit pulp productionand marketing in Colombia. Needless to say, the marketers aim atreaping the highest returns for their investment in the fruitsbusiness. This means that they would have to select markets wherethey would incur the lowest cost while obtaining the highest returnsfor their products. The four forces or elements identified in themarketing environmental scans would allow for the examination of thesuitability of the United States and Canadian markets for the variedtypes of fruit pulp that are on offer or available in the Colombianmarket (Brezina,2009).This, therefore, necessitates the exploitation of the areas in whichthe Colombian fruit industry is strong and matching them up to theareas that are wanting of the same. There are numerous factors thatmake the Colombian fruit industry capable of sustaining the UnitedStates and the Canadian market industries.

First,the countries are in a completely different climatic region. Thismeans that they have different levels of precipitation, humidity,temperatures and other geographic and climatic conditions. Indeed,this means that the climatic conditions support different types ofgrowth, which makes them complement each other rather than beingentirely competitive. Of particular note is the fact that they alsohave varying lengths of unsuitable weathers, which also comes atdifferent times of the year, in which case the Colombian market oftenfills the gaps in fruit production that are left up by the frostyconditions in the two countries.

Inaddition, Colombia is naturally a great producer of a wide variety offruits as a result of geographical location. Colombia is located inNorthern South America and borders the Caribbean Sea betweenVenezuela and panama. It also borders the North Pacific Ocean betweenPanama and Ecuador. Owning an immense proportion of the Amazon rainforest, two coastlines along the Pacific and the Caribbean, as wellas different altitudes up and down Andes Mountains, all of which comein tropical heavy rainfall climate, Colombia has immensely fertileland which allows for almost every type of plant to grow upon beingput in the ground. Indeed, research has shown that Colombia has someof the best conditions for growing fruits as it lies between 1300 and8400 feet above sea level or 400 and 2600 meters (Funes,2002).This altitude provides variations in precipitation conditions andtemperature, which offers an ideal environment for growing almostevery type of fruit. Indeed, as a tropical country, Colombia has awide variety of ecosystems in which more than 95 different types offruits grow including native species, as well as other species fromother equatorial areas and other continents (Funes,2002).

Anexamination of the United States and Canadian markets reveals thatthere are immensely good opportunities for business entities thatdesire to be exporting fruits from Colombia to these countries. Anexamination of the United States market reveals that the key sourcesof its are mainly the banana-exporting countries alongside the NAFTAand Southern Hemisphere regions. Indeed, banana exporters such asCosta Rica, Honduras, panama, Guatemala and Colombia are the keyproviders of fruits to the United States making up a total of 36% ofthe entire fruit imports in the United States. In the case of freshfruits, bananas comprise of about 75% of the entire value that isshipped from these countries to the United States.

Statisticsshow that for the period between 2004 and 2010, grapes, bananas andtropical fruits such as mangoes, guavas, papayas and pineapples madeup about 67% of the value of the United States fruit imports withbananas alone taking up 44% value share of the entire importspertaining to the three categories of fruit products (Brezina,2009).It is worth noting that there has been a substantial change in thestructure of fruit import mix in the United States, with tropicalfruits and grapes imports increasing at a faster rate compared tobanana imports.

Fora number of decades, bananas have been at the top of the list offruits consumed in United States, as well as the leading fresh-fruitimport in the United States. Indeed, the banana imports volume hadbeen on a steady increase until its 1999 peaking, after which itmainly remained stagnant (Wu, 2004). The commodity’s value share inthe fruit import mix in the United States, however, has beenpersistently declining since the 90s, from about 60% in early 90s toaround 28% by mid 2000s (Brezina,2009).This modified banana imports status is an indication of a new chapterin the United States fruit imports history. Indeed, a considerablyhigher variety of fruits have been imported into the United Stateswith the tropical fruits such as papayas, mangoes and pineapplestaking the larger share (Wu, 2004). Pineapple imports, which were atone time a favorite fruit for processing, have seen increasedmarketing especially with regard to fresh consumption. This wasespecially after the entry of the popular sweet variety type in the90s. A large proportion of the pineapple imports in the United Statescomes from Costa Rica taking up about 82% market share sincemid-2000s (Blaha, 2011). This was as a result of the Del Monte’sdevelopment of the sweet variety. The increased imports of a varietyof other tropical fruits has also been on the increase partly boostedby the increasing United States’ ethnic population, as well as thepromotional and research efforts carried out by industryorganizations. Statistics show that Mexico has taken up the largestproportion of the imports with a proportion of about 76% for papayasand 56% for mangoes (Blaha, 2011). Nevertheless, the 21stcentury has seen an increase in the share of other countries in theUnited States trade market for tropical fruits including Belize,Ecuador and Peru. For the first time in history, mangoes importedfrom India were offered an import permit although there was therequirement that they be irradiated, while their prices were a numberof times higher than the Mexican mangoes (Blaha, 2011). Of particularnote is the fact that there has been a steady decrease in thecommercial production of tropical fruits in the United States as theyare restricted by the climatic conditions to Hawaii in the case ofpapayas and pineapples and Florida in the case of mangoes. Thisdecline is attributed to weather or climatic conditions among others(Blaha, 2011).

Onthe same note, grapes’ value share in the United States fruitimport mix has also increased from 16% in early 90s to around 22% inlate 2000s. Within this period, the volume of grapes imported to theUnited States increased by 61%, while the domestic production volumeincreased by about 16% (Blaha, 2011). This increase in the UnitedStates’ trade of the fruit demonstrates the crucial nature ofimports as far as filling the demand gap for fruit products duringthe off-season. Of particular note is the fact that a largeproportion of grape imports get to the United States during winter,while the fresh market grapes that are domestically produced are soldin the course of early fall and summer (Blaha, 2011). This means thatconsumers in the United States enjoy fresh grapes every time of theyear. Further, this means that grape fruit pulp would be on highdemand during winter in the United States as there is likely to be areduction in the domestic production of grapes. In the first decadeof the 21stcentury, Chile took up 71% of the entire grape import to the UnitedStates, making it the largest supplier of the grapes followed byMexico, which takes up about 26% of the same. It is worth noting thatMexico supplies the United States’ market at the time when thegrape shipments from Chile stop and prior to the entry of thedomestically-produced grapes into the market.

Inthe last two decades, the proportion of the total fresh fruit importsin the United States for other deciduous fruits such as peaches,pears and apples was relatively steady, ranging from 6% to 8% for alarge part of the years. The imports were mainly from Argentina, NewZealand and Chile. Pear and apple imports, generally, allow forfilling the supply gapes that are caused by the adverse weatherconditions at certain times of the year, as well as avail fruitvarieties that are considerably different from the domesticallyproduced ones. On the same note, peach imports are fundamentallycounter-seasonal to domestic production, with the pear and appleimports mainly coming late and early in the season when there islittle domestic supply of the same. For the period between early 90sand mid 2000, the volume of deciduous fruit imports increasedsubstantially by 60%, 41% and 32% for pears, apples and peaches(Funes,2002).In essence, the increasing imports expanded the access to varieddeciduous fruits all year round for the consumer and manufacturers inthe United States. Further, there was relative stability or slightdecline in the volume of domestically produced deciduous fruits, atrend that has continued to the present times (Funes,2002).However, there has been a relative stability in the real importprices for a large proportion of the major imported fruits apart fromgrapes, whose real import prices have been less stable since thebeginning of the 21stcentury despite steady increases in mid 90s (Funes,2002).

Withinthe past two decades, the increase in the per capita fruitconsumption in the United States mainly emanated from tropical fruitssuch as papayas, mangoes and pineapples, as well as grapes,blueberries, cherries, avocados, strawberries and tangerines. Indeed,statistics show that the per capita consumption of the conventionalfruits such as pears, oranges, bananas, apples and peaches initiallyincreased in the 80s, after which they decreased tremendously. On theother hand, the import share pertaining to the overall fresh fruitconsumption in the United States saw an immense increase. Indeed, forthe periods between 1983-85 and 2003-2005, the share of imports forfruits consumed in the United States went up from about 2.3% toaround 15.5% in the case of citrus, and from 41.2% to 53% for thenon-citrus fruits including bananas. On the same note, research showsthat for the period between 1993-95 and 2003-2005, the share ofimports pertaining to fruit consumption in the case of the top threefresh fruits that an average American consumes (apart from bananas)also saw an increase. For instance, oranges percentage changed from1% to 4.2%, grapes from 38.5% to 54.8%, and apples from 6% to 7.1%.

Asa result of climate, the consumption of tropic fruit, which are of noor little commercial production in the country, has always beendependent on imports. In the case of a large number of other freshfruits and fruit pulp, the share of imports for fruits that areproduced domestically like oranges and apples, and to a considerablylesser degree, pears and peaches has been on the increase since theearly 90s. The share of imported grapes, which are typical seasonalproducts have experienced a substantial increase in the United Statesmarket. On the same note, the consumption of some highly perishablefruits like blueberries and strawberries in the United States haspersistently been supplemented during the off-season by imports sincelate 90s. Scholars have noted that, berries, which are some of themost fragile fruits (and not long ago, considerably seasonal) are nowavailable every time of the year as a result of the imports and theextended domestic seasons.

Canadais considerably more limited in terms of the volume of fruits thatare produced within the country. Indeed, an examination of Canada`sfruit exports would also tell a tale regarding the types or speciesof fruits that any country intending to import fruits to Canadashould give a wide berth. Research and statistics have shown thatCanada`s largest exported fruits were blueberries (both low-bush andhigh-bush), which accounted for almost $82 million and $254 millionfor fresh and frozen blueberries respectively. Of particular note isthe fact that the country experienced an increase in its fruitexports in 2011. Indeed, fresh fruit exports to the U.S increased to$303.49 million, which was a 14.4 percent increase or rather a $38.11million increase over the previous year’s exports. However, thiswas still considerably lower than the 2008 high which amounted toabout $338.58 million. In the same year (2011), fruit exports toNetherlands and Japan experienced a rebound reaching $25.1 millionand $34.62 million respectively. This means that the United Stateswas the largest fruit export destination for Canada as it took upabout 59 percent of the total fruit exports from the country.

Onthe same note, Canada has persistently been a net importer of freshfruit and fruit pulp with a large proportion of its imports from theUnited States. Indeed, statistics show that about 49.5 percent of itsfruit imports, which amounted to about close to $2 billion emanatedfrom the United States alone. It is worth noting that there are othermajor sources of fresh fruit and fruit pulp imports to the countryincluding Costa Rica, Chile and Mexico, whose imports were valued at$186 million, $346 million and $371 million respectively (Bucheli,2004).On the same note, bananas have persistently been the most imported asat the 2011 statistics, making up about 506,000 tons, whose value amounted to close to $400 million. However, the largest fruit importby value in Canada was grapes, whose close to 180,000 tons amountedto about $406 million in the same year. Scholars have noted thatCanada’s fruit imports have experienced a steady increase, with therate of growth being way higher or faster than the fruit exports. Asat 2011, the total fruit imports to Canada increased by about 10.59percent, while its exports registered a 27.55 percent increase. Thisresulted in a 8.61 percent year-over-year increase in the fruit tradedeficits, which amounted to $6.5 billion. This was marked as thehighest fruit trade deficit in the country within the previous fiveyears, which was also following the ever-increasing and long-termtrend.

Further,apples occupied the top spot as far as value and production volume isconcerned, taking up about 25 percent of the total fruit FCR, aheadof grapes and blueberries. As a result of the fast expansion of theblueberry industry in the last one decade, blueberries took up thetop sport in 2004 and persisted in becoming the fruit that generatedthe highest FCR of fruit cash receipts up to around 2007.Unfortunately, there was a similarly significant increase in the areaunder which blueberries were produced, not only in North Americawhere both low brush and high brush blueberries production areaincreased but also in the South America where high brush blue berriesunderwent a significant increase. This persistent increase put animmense pressure on the prices of blueberries, which havepersistently undergone a sharp decrease since 2007. This has resultedin a reduction of blueberries fruit cash receipt by over 50 percentsince 2006, which cut short the persistently upward trend that thesector was enjoying. Of particular note is the fact that grapes madeup the third most crucial fruit crop as far as value was concernedfollowed by raspberries, strawberries and cranberries. A largeproportion of high-bush raspberries, sweet cherries and blueberriesare produced in British Columbia, while tender fruits, grapes andapples are largely produced in Ontario. Quebec, on the other hand, isthe highest producer of low bush strawberries, cranberries andblueberries.

Nevertheless,exporting into these countries would also necessitate that oneexamines the rules and regulations that govern the importation andsale of food items into the countries. It is noteworthy that theCanadian rules and regulations regarding imports are more or lesssimilar to those of the United States. For instance, the rulesregarding health and sanitation, or even packaging and labeling aresimilar in the two countries (Aksoy&ampBeghin, 2004).The only difference would be that Canada requires that the labelingbe done in either English of French, while the United States requiresthat the same be done in English only except in Puerto Rico whereSpanish can be used (Blaha, 2011). A wide range of specificinformation should be included in the labels. First, there should beproduct identity, the phone number and name of the responsible firm,which could be the distributor or manufacturer both foreign anddomestic, the net weight of the contents in metric terms and English,a list of the ingredients in the fruit pulp in order of predominanceor descending order, as well as the nutritional information (Aksoy&ampBeghin, 2004).The nutritional information should, however, be supported by factsregarding the components of the fruit pulp including any additives orpreservatives that have been incorporated. Such informationpertaining to the nutritional value, however, does not have to besupported by information regarding the components in the case offresh fruits as they only have a single component. Nevertheless, thenecessary information is required to be done in a manner that ensuresthat it remains accessible to the consumers under the normalconditions of use and purchase. Of particular note is the fact thatsmall manufactures may be exempted from requirements pertaining tonutritional labeling (Bucheli,2004).Further, imported fruits should incorporate a label statement thatshows the country from which the products have been derived. In thecase of bulk containers of fruits and food products that are providedfor import to the United States, it is imperative that they have thefollowing information in English on the containers’ outside. First,the product’s identity, followed by the name and phone number oraddress of the responsible firm, which could be its import agent,importer, distributor, consignee or manufacturer. This should becomplemented by information regarding the contents’ net weight inEnglish measurement, which could be pounds or ounces, as well as alist of the ingredients that are incorporated in the product and thecountry from which the products have originated.

Forthe two countries, the smoothness with which trade is carried out isdependent on the types of relations that they have with theirpartners. For instance, countries within the NAFTA agreement alwaysget preferential treatment with regard to the entry of their goods tomember countries. This may be with regard to a reduction orelimination of duties and tariffs or even a complete elimination ofthe same. This would also entail the elimination of the barriers totrade in the two counties. Even in instances where the tariffs andduties have been eliminated, it is often the case that there will beother limitations (Bucheli,2004).Non-tariff barriers underline the government policies or measuresother than tariffs, that distort or restrict international trade. Theelimination and lowering of tariffs for instance by free tradeagreements necessitates that non-tariff measures are addressed asthey also frustrate trade. These may include discriminatoryprocurement practices by the government and discriminatory measuresaimed at safeguarding intellectual property, as well as import quotas(Bucheli,2004).Other categories of non-tariff barriers may include the technicalbarriers to trade such as the requirement by governments to undertakeunnecessary certification and testing of the imported items. Anexamination of the varied barriers that affect the fruit pulp importswould allow for the determination of the manner in which it affectsimporters’ access to the United States market, the pricing of theimported fruit pulp and the subsequent costs of carrying out businessin the United States. In addition, the smooth flow of import fromColombia to the United States may be impended by security concerns.Since the September 2001 terrorist attacks, the United Statesgovernment became immensely concerned about its domestic security.This has had a significant impact on the manner in which imports fromColombia and other parts of the globe get into the United States.Indeed, security measures have persistently been altered, which maycomplicate the export businesses (Blaha, 2011). For instance, theymay slow the traffic from the ports especially when they are requiredto undergo more documentation and preparation. There also exists the“buy American” policies that may hinder trade between the twocountries (Liebmanet al, 2012).A large proportion of institutions and agencies in the United Statesare required to purchase items that are only produced domestically.This is often bound to create bias against business entities that arelocally registered or that obtain commodities from local producers.

Evenin instances where these barriers are eliminated, it is imperativethat the exporting country or company acknowledges the proceduresthat have to be followed so as to be successful in the importingcountry’s market (Liebmanet al, 2012).The importers may choose to establish a business presence in theUnited States that would allow them to sell the products directly tothe buyers or use a representative of the manufacturer or evenestablish a partnership that have like-minded American businesses.

Directselling may be undertaken in varied ways. First, an importer mayestablish a presence in the United States through opening a branch ofhis company in the country or establishing a distinctive UnitedStates subsidiary (Aksoy&ampBeghin, 2004).Upon establishment of the subsidiary or business presence, it isimperative that the company obtains certificates of Authority forevery state where it will be doing business through registering withthe federal, state and local tax authorities. This should becomplemented by obtaining the necessary professional licenses.

Fora large number of exporters to the United States, distributors comeas the most common intermediaries, alongside trading houses andrepresentatives. The key benefit for using intermediaries is that onewould obtain an immediate presence in the country’s market withoutnecessarily setting up his own sales operation. Distributors buy theproduct, import it to the United States and sell it to the end usersoften offering warranty or after-sales services. As much as a largeproportion of the burden would be taken away from the Colombianproducers, the profit margins may be considerably lower, not tomention that the producers have relatively less immediate controlover the product. Such arrangements also give producers littleinformation pertaining to the customers of their products, which mayaffect marketing approaches and manufacturing decisions (Cook,Alston&ampRaia,2004).In instances where a company cuts links with the distributor, it maybe forced to rebuild its customer base, which may not be easy.

Representatives,on the other hand, are agents working on a commission and usuallyspecializing in products that are related in some way (Cook,Alston&ampRaia,2004).In this case, fresh fruits agents would, undoubtedly have no problemselling fruit pulp or even processed ones. Unlike distributors,representatives never own the products that they represent ratherthey have specific territories where they sell the products tospecific sets of consumers.

Tradinghouse, on the other hand, come in handy in instances where importerswant to get items into the United States market without engaging inthe actual export work. These encompass Canadian or United Statesbased firms that engage in the handling of the entire exportingprocess to the products to the United States right from the initialresearch of the market going forward (Cook,Alston&ampRaia,2004).The only disadvantage with this technique is that the Colombian fruitexporter would not get its own exporting expertise and would havelittle control regarding the manner in which its products are sold orrepresented.

Inworking with intermediaries such as distributors, representatives andtrading houses, it is imperative that the company notes that theusual good business relationships principles apply. It is imperativethat the exporting party pays attention to the provision of suitablecase studies, product literature, promotion and applicationinformation (Cook,Alston&ampRaia,2004).Further, speedy attention should be given to the requests andquestions of the representatives, while accurate informationpertaining to the product development, company policies andcompetitive factors should also be supplied. Lastly, commissions mustbe paid in competitive levels and in a prompt manner.

Recommendations

Bothcountries offer incredible fruit pulp import opportunities fordifferent reasons. For Canada, it is noteworthy that it has aconsiderably low variety of fruits. Indeed, a large proportion of itsfruit industry is taken up by berries, in which it excels greatly. Inthe case of the United States, its immense population creates anincredible market for fruits both fresh and processed. As much as ithas quite an immense capability with regard to fruit production, itis noteworthy that the climatic and soil conditions in a large numberof areas where such production takes place do not allow for proper orsufficient production. Indeed, fruit imports alongside other foodimports cater for the gaps in production in instances where theclimatic conditions do not allow for the same.

Furthersupporting the importation of fruits into the United States andCanadian markets is the increased awareness of the health andnutritional value of these items in the two markets. This has causedan increase in the demand for them, a trend that could not have beensatisfied by domestic production. Similarly, globalization hasallowed for the travelling of people from different parts of theglobe to the United States and Canada among other countries, whichtriggers a demand for exotic fruits from Colombia even in thesemarkets (Liebmanet al, 2012).This is bound to work in favor of the Colombian fruits, whoseuniqueness is supported by the increasingly distinctive weatherconditions.

Lobbyingfor increased intergovernmental treaties would go a long way inenhancing the suitability of the markets. It is noteworthy that thisstep has been taken with regard to the United States government,which took effect in May 2012, under which a large proportion of theimports from Colombia were to receive duty free levies, while theremaining ones were to be phased out within less than 2 decades. Asmuch as a large proportion of imports from Colombia are crude oil,coal, petroleum oils, coffee, tea, flowers and other plants, thefruit industry would also benefit immensely from the agreement(Liebmanet al, 2012).Further, it is noteworthy that Colombia has the United States as itsleading trading partner, with more than 40 percent of its exportsgoing to the United States while 29 percent of its imports wereobtained from the U.S.

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