EXPORT OPPORTUNITIES FOR U.S. WHEY PRODUCTS

SELECT MARKET ASSESSMENTS

HONG KONG

ANDREW M. NOVAKOYIC

A Study for the National Dairy Promotion and Research Board

and

American Dairy Products Institute

Prepared by

Sparks Companies, Inc.

March 1993

;; 19Q3 by SPARKS COMPANIES INC

EXPORT OPPORTUNITIES FOR U.S. WHEY PRODUCTS

SELECT MARKET ASSESSMENTS

I. INTRODUCTION

A wide range of unreported information affects both the levels of utilization and imports of whey products, as it does all major product markets. In an effort to understand these important factors, assessments were conducted in eight selected major markets. Their purpose was to deepen understanding of both the market potential and ~;)nstraints faced by U.S. exporters in these markets. The assessments were focused in countries representing both mature and emerging markets in the primary geographic import growth areas of Asia and Latin America.

The six countries assessed in Asia represent over 90% of the total Asian market for U.S. whey products and some 52 % of U.S. whey product exports worldwide (1992). The two Latin American markets of Venezuela and Mexico represent over 22 % of total U. S. whey product exports and also demonstrate the diversity of market growth and trade promotion needs for future trade expansion.

The assessments were brief (carried out during a 3-4 days period) in each country, but included interviews with 15-20 representatives of government organizations, customs and import agencies, importers, and primary users of whey products in the feed, food, and pharmaceutical sectors as well as related trade and industry association representatives. Based on the information developed in the interviews, the following detailed reports were developed for each country. These reports and their findings contributed to the study interpretations of the markets, projections, recommendations and proposed market promotion activities.

2

II. ASSESSMLYf FORMAI

Prior to the initiation of the assessments, the following detailed format was developed to assure that each assessment included the primary information required to support the study objectives and to provide a sound base for future market projects and promotional recommendations.

Country Outlook Section. Brief overview of the major economic and political factors (population, GNP, per capita income and policies) and their overall impact on consumption patterns and demand for whey products in the various usage sectors.

Sector Reports. Detailed reports on each sector of current and potential utilization of whey products, including:

o Past, current and projected growth of the sector and factors affecting utilization and demand for whey products;

o Past and current applications of whey products, their current levels of use and application, and the knowledge and capabilities of the sector to expand applications and usage;

o Sources of whey products and the competitive factors that restrict increased U.S. product usage and imports;

o Price, quality, specifications and supply capabilities that affect the source of product; and

o Competitor promotions, servicing and marketing programs and their effectiveness.

Import Requirements. Identification and estimates of the import requirements for whey products in each market (labeling, packaging, and product specifications).

Trade Barriers. Explanation and interpretation of licensing, quotas, tariff and non-tariff barriers to U.S. market access for these products.

Recommendations. Definition of market constraints and recommendations for stimulating both the usage and demand for U.S. whey products through the use of generic promotion, product education, trade servicing and technical assistance.

Trade Leads. "Trade contacts" that offer immediate market potential are identified, together with important government, industry and association contacts useful to the development of both the acceptance and usage of U.S. whey products.

WHEY AND LACTOSE MARKET RESEARCH REPORT

HONG KONG

THE NATIONAL DAIRY PROMOTION AND RESEARCH BOARD

NOVEMBER 1992

74

.. . 75

EXEClITIYE SUMMARy

The Hong Kong market for whey and lactose is limited due to the relatively small population of six million; however, a large percentage of the imports is shipped to China for use in feed and food products, especially to the bordering province of Guandong where there are special economic zones for foreign joint venture operations.

There is generally a low knowledge of U.S. whey and lactose, particularly with regard to quality and price.

U.S. products carry a poor quality image with regard to quality, consistency and product packaging. There is concern with the lack of consistency of U.S. product, color, fineness of whey and, in particular, ash content which the market requires to be less than 3 %.

In the food industry, whey is used in ice cream, bakery products, infant foods, and confections, and in the feed industry in piglet starter, pre-starter mixes, and milk replacers. Lactose is used in infant powders, pharmaceuticals, chocolates and confections.

All parties interviewed agreed that China is a major potential importer of whey and lactose. However, Hong Kong business interests are influential in decision making on raw materials for China. Thus Hong Kong offers a major route into the China market, as the product is shipped into China through official and unofficial means.

Interviewees are all anxious to learn more about U.S. whey and lactose quality and pricing and supply sources. They generally expect that the U.S. is strong in technical expertise and new applications, but the end users in Hong Kong and South China are ignorant regarding U.S. whey and lactose.

Hong Kong's small size local bakeries are generally using whey powder as a substitute for full cream and/or skim milk in bakery products, especially in lower cost bakery products geared to the lower income population.

Extensive technical support programs by New Zealand and Australia, including a regular flow of new product information,trade servicing and after service and occasional trade shows have given New Zealand an import share of the quality market. This is compounded by the absence of these activities by U.S. companies and industry boards or associations.

A self interest program for the U.S. industry would view Hong Kong as the gateway to the China market and work with Hong Kong business interests in · developing programs and relationships to penetrate the market.

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COUNfRY OUfLOOK

ECONOMIC AND POLmCAL

With a population of 5.8 million, Hong Kong has achieved an importance which by far exceeds it's size and population. It has become the starting point for market entry into China and it's business community is involved in numerous major projects and industries in the mainland.

Hong Kong has shown consistently strong economic growth which reached into double digits through 1987,7.2% in 1988 and on a constant dollar basis, slowed to 2.5% in 1989. The cloud which hangs over the Hong Kong economy, of course, is what will happen after reversion to China in 1997; this has been further complicated by recent disagreements between the Hong Kong government and China on proposed democratic reforms.

FOOD AND AGRICULTURE PROFILE

Hong Kong is an important and fast growing market for American foods and farm commodities. It is the second largest importer of high value/value added agriCUltural products in Asia and the fifth largest market for total U.S. agriCUltural exports among the 18 Asian countries (after Japan, Korea, Taiwan and the PRC). The value of U.S. agricultural exports to Hong Kong totalled USS770.9 million in 1991. having grown at an average annual rate of 13% since 1987. On a per capita basis, Hong Kong's six million people consumed USS128 worth of U.S. farm products in 1991.

The local Chinese market (5.7 out of 6 million people) is changing rapidly, especially among the young, many of whom are opting for western lifestyles and eating habits. This, coupled with the higher per capita incomes is starting a trend toward the consumption of higher quality foods and meats as well as sandwiches and convenience foods. McDonalds, Kentucky Fried Chicken, Pizza Hut and Spaghetti Houses have grown so fast in number in the past ten years that they are now part of the street scene of Hong Kong. These shops have a special appeal to the young Chines consumer, a factor especially significant for the future.

Along with the change in eating habits and lifestyles is the trend for dairy based foods of various types from ice cream to bakery products, yogurts, confections and other western tastes which extensively use dairy based raw materials in contrast to the traditional soy based tastes which have dominated Chinese culture for hundreds of years.

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SECTOR REPORT - WHEy

HISTORICAL IMPORT SITUA nON

As indicated on the attached "Whey Imports and Re-Exports" table, whey imports have varied from 2000 to almost 9000 metric tons annually over the last five years. The Re Export statistics indicate that over 50% of the whey is re-exported; however, discussions with the trade indicate that between 70 to 80% of the whey is re-exported, primarily to mainland China.

Thus, the actual usage of whey in Hong Kong is very small. There are only two relatively small feed mills in Hong Kong, 30% of whey usage is estimated to be in the feed industry and 70% for various food uses. Since most of the product is re-exported, the actual quantities used in Hong Kong itself for both the food and feed industry are most likely in the area of 1500 tons annually.

CURRENT USAGE OF WHEY

FOOD INDUSTRY

The uses in the food industry as indicated by such companies as Dairy Farm, the largest producer of ice cream and a variety of other food products, Maxims, Garden Bakery and others is in ice cream, lower cost bakery products, baby food and confections. Edible whey importers advise that they are importing the following whey product types:

sweet type whey for lower cost bakery products and confections; demineralized whey for ice cream and baby food; and whey protein concentrate for a variety of snack foods.

In addition to the regular sweet type whey, and whey protein concentrate, New Zealand is a major supplier of demineralized whey for baby food and ice cream. It's recent prices have been in the area of $850 per ton, according to importers whereas European and U.S. prices have been about $1,000. Traders claim that New Zealand is selling high quality whey protein concentrate to the Japanese market for as much as $4,000 per ton and can sell all it can produce.

As in the case of whey usage in feed, discussions with Hong Kong import companies and food producers indicate the major quantities · of whey used in the food industry occurs in Guandong Province bordering Hong Kong or other southern China provinces, to where the majority of whey is re-exported either legally or by other methods. Importers advised that due to its lower cost, whey is used extensively in China as a component of a baby formula/baby food, rice or wheat gruel, and vitamins and minerals. One major importer of edible food ingredients reported that 90% of the edible whey he imports is resold to brokers for shipment across the border to

78

China. The U.S. Agricultural Trade Officer in Hong Kong also reports that the overall usage of whey in food products in Hong Kong is very limited.

Due to the limited population in Hong Kong, the rapidly increasing food processing that Hong Kong has contracted in the China provinces bordering Hong Kong, it's businessmen's extensive and increasing relationships with China, together with the huge low income population of China, interviews strongly indicate that the real and major potential for edible whey usage is in China.

Most of the usage and buying decisions, however, will continue to be made by Hong Kong businessmen and technicians, and thus Hong Kong will retain and increase it's importance as customer and shipment point of whey to China.

FEED INDUSTRY

Interviews with feed companies and feed ingredient importers in Hong Kong and feed manufacturers in Guandong Province, China indicated that, as in the food sector, the overwhelming use of whey in feed takes place outside of Hong Kong and in the bordering provinces in China. Although China was not within the parameters of this survey, the consultant was able to obtain a certain amount of information regarding usage in Guandong through telephone interviews and questionnaires in addition ventures to the offices of Guandong ventures in Hong Kong.

The use of whey powder in the feed sector included both sweet and non sweet types, and the overwhelming use is in pig starter and pre-starter pre-mixes, grower diets, and piglet and sow milk replacers. An additional use was in calf milk replacers although this is not a major use category as yet.

Importers indicated that primarily feed grade whey is being imported although several noted that they preferred to import edible grade, even for use in the feed industry.

As noted previously in this report, feed production, which actually takes place in Hong Kong, is extremely limited, and has largely moved to Guandong, China, where there are numerous joint venture feed facilities taking advantage of "special economic zones" producing a broad variety of feeds for use in southern China. Among the better known are Conti Chia Tai International, Ping Shan, C P Foods (Charoen Pokphand of Thailand), Sri Thai (HK) Feed Co., and Eata Thai (HK) Co. As can be noted, there is a preponderance of Thai companies involved in the feed business in China but the list also includes investment from U.S. and Japanese major companies.

This movement to Guandong began approximately 15 years ago and has shown continual growth, making the area an important production area for animal feeds and a base for future expansion into other areas of mainland China.

79

PRICE. QUALITY AND CQl\1PETITIQN

The U.S. has continued to command a leading share of Hong Kong whey imports, followed by Canada and Australia. U. S. market share in 1991 was 72 % followed by Australia and Canada with 11 % and 4 %, respectively. Although this varies considerably from year to year depending on prices, this pattern has been fairly consistent over the last five years.

Traders and users reported the major consideration is price, and this is the primary reason for the U.S. market share, although there was the usual dissatisfaction with the lack of consistency with U.S. quality from supplier to supplier. On a straight quality comparison, Australian and Canadian whey was considered superior to the U.S., as was European whey . In edible whey, Dairy Farm has stayed with one U.S. supplier, Darigold, for some years and is satisfied with the quality and the consistency of supply.

The importance of the consistency of reliable supply of the same quality was str 'sed not only by Dairy Farm but by most of the importer/users in the food and feed sector. One importer, Ping Shan, summed it up: "If U.S. suppliers are serious about Hong Kong and China as a market, they must make two commitments, 1) Consistency of Quality, and 2) Consistency of supply-a regular monthly supply of the same quality."

One feed use importer stated that certain U.S. suppliers are "killing the market for the U.S. industry" by blending soy protein into whey to raise the protein content, and this is the type of problem that concerns buyers with U.S. source whey which they must always buy with considerable caution and attention, while they do not often have these problems with other country suppliers. Importers felt that the huge size of the U.S. industry was part of the reason for the great variance in quality and reliability of suppliers and strongly recommended that the U.S. Dairy Board take steps to resolve the standards and compliance problem in the best interests of the overall industry .

U.S. packaging was also considered inferior to other country suppliers, with markets-closures not air tight and plastic and paper bags not sturdy enough. A sturdy PP Laminated Kraft paper bag is preferred, especially for use in re-exporting to China. This was particularly important to prevent caking with hydroscopic products and considered an important factor in long term procurement decisions.

Prices of whey at the time of the survey were on a decline and were in the area of $420 to $470 per ton whereas Australian prices were $520 to $580 per ton. U.S. prices were very competitive at the time of the survey and have generally been so over the last five years.

Major competitors in the Hong Kong market included Hanseng of Canada, Hanseng and Bonlac of Australia, and although it did not have a major share in whey, the New Zealand Dairy Board. U.S. companies frequently mentioned were Darigold, Foremost, DMV US, and Kraft, which supplies from the U.S. and Australia.

1988 TOTAL

US SHARE

1989 TOTAL

US SHARE

1990 TOTAL

US SHARE

1991 TOTAL

US SHARE

1992 * TOTAL

US SHARE

WlEY IMPORTS AND RE-ExpORTS BONG KONG

IMPORTS

VOLUME MT VALUE USSOOO

5322

3802 71\

2627

1503.8 57\

4063

2371 58\

8692

6038.2 69\

2642.6

1913.4 72\

3113.8

2034.2

1363

737

1877.1

1011.2

4654.6

2989.8

1530.3

1131.6

RE-EXPORTS

VOLUME HI VALUE gssooo

1608 1103.9

1114.1 697

3477.3 1934

4818 2868.2

1932.8 124

Source: Hong Kong Official Customs Data.

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SECTOR REPORT - LACTOSE

Hong Kong Trade Statistics unfortunately do not list lactose imports or exports . This was confirmed with the U.S. Agricultural Trade Office and the Hong Kong government Trade Council and Statistics Office for Customs Data. It is therefore difficult to determine the actual amount of lactose product imported and re-exported to China. However, U. S. export data indicates that exports for Hong Kong have been as follows:

1990 17 metric tons

1991 38 metric tons

1992 50 metric tons (through June 1992)

Discussions with importers and users, however, reveal that lactose is used in Hong Kong for various products including as a sweetener for baby formula, baby foods, confections, chocolate, and in general milk powders marketed for both child and adult consumption. The source countries given were primarily New Zealand, Netherlands and France. Importers and food processors stated that lactose was used in the milk powders they marketed to bakeries or utilized themselves in milk powders or drinks . Luculus, a producer of high quality chocolates uses lactose in chocolates and other confections, and Friesland Foods, which produces full milk powder, skim milk powder and full cream milk advised that they used lactose in their milk powders which are marketed to various food processors. Pharmaceutical uses lactose as binders and fillers for various types of tablets, capsules and other pharmaceutical products.

Similar to whey, importers advised that a large percentage of lactose imports be re-shipped to China and recommended that China, with it's large population and negligible production of lactose, offers a major future market opportunity for lactose.

While the Hong Kong market itself is very small and has limited use of lactose, importers are re-exporting the product to China through both legal and other means for various uses including baby formula and baby foods, and to a limited extent for confections and pharmaceutical uses.

PRICE. QUALITY CONSIDERA TIQNS AND COMPETmON

U. S. imports are generally considered competitive in price, but importers and users had little actual experience with the U.S. product. New Zealand was considered the prime source for lactose and the quality was considered superior to U.S. product. The New Zealand Dairy Board and Lactose Co were the only names which arose with regard to lactose supply sources.

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IMPORT REQUIREMENTS AND RESTRlCDQNS

Hong Kong has no import restrictions on raw materials such as whey and lactose, and has only normal labelling and marking requirements including the narne of the product, country of source, importer and basic specifications. However, new laws enacted within the last three years require that all foods for human consumption be marked with date of manufacture, contents in kilograms and grams, and ingredients.

Imports into China through official sources encounter restrictions by the Chinese government, including import permits and import taxes. However, a large percentage of the shipments from Hong Kong into China do not go through official channels.

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RECOMMENDATIONS

Hong Kong is a relatively small market for whey and lactose but offers an important entrance into the China market which in spite of it's foreign currency limitations, will become a large potential market for whey and lactose in food, feed and the pharmaceutical industries.

At the same time, the U.S. industry must contend with strong export programs conducted by New Zealand and Australia which provide close communication, technical assistance and after service to the Hong Kong market and southern China. Hong Kong and southern China importers and users are not familiar with the wide range of whey and lactose products available from the U.S.

In view of this, it is recommended that the National Dairy Promotion and Research Board initiate a program of market development and research in Hong Kong and southern China, and particularly in the bordering province of Guandong. The program would focus on the economical cost, quality and the broad and diversified uses which whey and lactose can accommodate and include the following activities:

1. Conduct more in depth research on the demands of the southern China market and the methods of penetrating the market through Hong Kong.

2. Establish business relationships with importers and users in the feed, food, and pharmaceutical industries as well as importers to explore best methods of getting the products into China on a large scale basis.

3. Provide regular trade servicing activities with companies, associations, and government.

4. Provide latest technical and educational information and new product samples.

5. Conduct or participate in trade shows to show and demonstrate the varied uses and applications of U.S. products.

6. Provide regular market intelligence and feedback to the U.S. on market needs, conditions and competitor activities.

84

pRO.IEer APPROACH

Sources used to develop the body of this report included the opinions, statistical information, and other input from the feed, food, and pharmaceutical industries, retailers, government officials and consumers. These included but were not limited to the following to whom we express special appreciation for their time and assistance:

GOVERNMENT AND INSTITUTIONS

u. S. Agricultural Trade Office Hong Kong Hong Kong Trade Council

PRIVATE FOOD, FEED AND IMPORTER COMPANIFS

J P Inglis & Sons, Ltd Ping Shan Enterprise Co. Ltd. Dairy Farm Ltd. Friesland Foods Ltd. HK Associated Dairies Inti. Ltd. Kraft General Foods Inti. Vita Hong Kong Soy Bean Products Ltd. Guandong lnve Feed PreMix Co. Ltd. Conti Chia Tai Inti. Ltd. Great Wall Agritech Co. Ltd. Garden Bakery Maxim Foods Luculus Co. Ltd.

211

IV. TRADE LEADS

IP Inglis & Co. Desmond P. Inglis Fax 852 790 9588 Tel 790 1199

228

HONG KONG

Imports whey and lactose; imports and resells primarily to brokers for China, mostly food uses.

Associated Dairies Inti. Ltd. Ron C. Houston Fax 852 343 8916 Tel 7979811 Uses whey for ice cream, buys primarily from the U.S.; interested in new technical information. considers only large reliable suppliers.

Pin Shang Enterprises Oscar K H Lam Fax 852 858 1452 Tel 858 1188 Interested in new U.S. suppliers for feed grade whey; uses In own mills and resells large percentage for use in China.

GWl Hong Kong Ltd. (Great Wall Agritech Co. Ltd) Jack Ng Fax 852 730 3773 Tel 737 5300 Handles whey for feed and baby foods; wants technical information on whey for baby foods, and suppliers of same. Primary use is in southern China market-price is first concern .

CP Foods Co. Ltd. Fax 852 866 1244 Tel 865 7939 Joint venture feed mills in southern China, feed/food grade whey.

Sri Thai (HK) Feed Mill Co .• Ltd. Tel 0-4888579 Fax 0-4885952 Feed grade whey.

Kanematsu-Gosho (HK) Ltd. Tel 5-8216200 Fax 5-270465 Food and feed grade whey.

Maxims Caterers Ltd. Fax 852 845 0715 Tel 523 4107 Major bakery, opportunity for whey for popular price bakery products.

Guangdong Inve Feed Premix Co. Ltd. Fax 02096 33702 Feed Grade Whey for Pig starter and pre-starter premixes.

229

In addition to the Taiwan trade leads noted in this survey, a list of major feed, food, ice cream , bakery and raw material import companies is included. Most of these companies are candidates for use or import of whey and lactose.

Hoo& Koo& Importers of Animal Feeds

Continental Oversears Corp. Tel 5-8236111 Fax 5-8611826

San Francisco Bay Brand Inc. Tel 3-7235157 Fax 3-3113725

Ang Seng Leong Ltd. Tel 5-495021 Fax 5-591795

Tai Sang Feeds Co., Ltd. Tel 0-4766111 Fax 0-4788883

Kingtel International Co. Tel 0-4731099 Fax 0-4778039

Sam Hing Hong Tel 5-481117 Fax 5-598265

Eata Thai (HK) Co., Ltd. Fax 0-4730824

Hung Sing Cheong Tel 5-404182

Peter Cremer (HK) Ltd. Tel 5-8336168 Fax 5-8345878

Kwong Fat Feeds Co., Ltd. Tel 5-483423

Tak Hing Cheung Co., Ltd. Tel 5-474522 Fax 5-598588

Conti Chia Tai International Ltd. Tel 3-7238726 Fax 3-7398143

Nah Loong Trading Co., Ltd. Tel 5-293812 Fax 5-8651473 Lee Sang Tsan Feedmill Co., Ltd. Tel 5-485852

Wah Fung (HK) Feeds Ltd. Tel 5-433477 Fax 5-443058

Gold Wah Co. Tel 5-406713 Fax 5-597939

Bakeries in HOIll Kong

Maxims Caterers Ltd. Tel 852-523-4107 Fax 852-845-0715 Mr. Kwan Ming Kin, Senior Exec. Pastry Chef, Cakes & Bakery Div.

230

Maria's Tel 852-334-1371 Fax 852-764-0391 Mr. Tse Kwok Ying, Sub General Manager Ms. Georgianna Lee, Manager

Saint Honore Cake Shop Ltd. Tel 852-873-1322 Fax 852-873-5092 Mr. Fok Sai Cheung, Magaging Director Mr. Shum Wing Hon, Magaging Director Mr. Eddie Sham, Purchasing Manager

Garden Co., Ltd. Tel 852-386-4231 Fax 852-387-4344 Mr. Stephen Cheung, Managing Director Mr. T.F. Cheung, Chairman

Denny's Food Corp. Ltd. Tel 852-563-0161 Fax 852-811-0378 Mr. Hung Ming Chung, Managing Director

Lucullus Food & Wines Co., Ltd. Tel 852-798-1288 Fax 852-796-0622 Mr. Malcom Young, General Manager

Bakeland Co., Ltd. Tel 852-490-0163 Fax 852-411-0861 Mr. T.L. Law, Director Mr. Law Man Yau, Manager

Panash Ltd. Tel 852-890-8229 Fax 852-576-2335 Mr. A. Asano

231

J

A-I Bakery Co. (HK) Ltd. Tel 852-697-6377 Fax 852-601-3881 Mr. Motonobu Yanai, General Manager Mr. Shiraswa Shozo, Asst. General Manager Mr. Li Shun Yan, Operation Manager

Hong Kong Yamazaki Baking Co., Ltd. Tel 852-665-8865 Fax 852-665-6132 Mr. Ryuzo Tadokoro, Director Mr. Yutaka Takahazhi, President Mr. Sunny Cheng, Purchasing Manager

Kee Wah Ltd. Tel 852-743-5714 Fax 852-786-0119 Mr. Wong Sik Kee, Managing Director

Kinland Bakery Co. Ltd. Tel 852-389-2627 Fax 852-790-3885 Mr. Lau Chee Mei, General Manager

Hong Kong Ice Cream Manufacturers

Kowloon Dairy Ltd. Tel 5264055 Fax 8684142

Mountain Cream International Ltd. Te13424137 Fax 3434129

Appolo Ice Cream Co., Ltd. Tel 4898128 Fax 4812011

Yan Chim Kee Co., Ltd. Te18733303 Fax 8734569

~32

Swiss Ice Cream Co., Ltd. Tel 7773280

HODe Kong Ice Cream Importers

Mountain Cream International Ltd. (Represent Dreyer's) Tel 4942888 Fax 4805365

Swenson of HK Ltd. (Represent Swenson) Tel 3322393

Pinedale (Hong Kong) Ltd. (Represent Haagen-Dazs) Tel 5266145 Fax 8459107

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...

v. BIOGRAPHIES

The in-country assessments were carried out using a combination of SCI staff and highly qualified local consultants familiar with the respective markets and with access to the important food and agricultural industries.

The assessments in Asia were carried out by Mr. George W. Urda, an independent consultant based in Japan with nearly 20 years of experience in market research, export program promotion, and product development throughout Asia. Mr. Urda was assisted in Korea by Dr. Chang-Hwan Kim, President of Alliance Research and Consultants. Dr. Kim is widely regarded by both the Foreign Agricultural Service of USDA and panicipating market development cooperators for his market studies and program evaluations of various U. S. export promotion programs.

The Mexico market assessment was conducted by Mr. Robert E. Hine. Vice President for Agribusiness Consulting at Sparks Companies, Inc. in Memphis, Tennessee. Mr. Hine has extensive experience in the Mexican market servicing the trade and market development interests of both SCI clients and the Government of Mexico.

In Venezuela, the assessment was conducted by Mr. Orlando A. Sanchez, President of Tecnoaviga CA., and independent consulting firm based in Caracas, Venezuela. A graduate economist from Cornell University with graduate work at Perdue University, Mr. Sanchez provided a strong background and extensive research experience in the food industry, compound feed sector and the dairy industry of Venezuela.

A brief assessment of the Netherlands's marketing structure for whey products and the factors effecting EC production and competition was conducted by Mr. Thomas P. Scott. Mr. Scott is a Vice President and Principal of SCI with special focus on agricultural marketing and transportation issues and previous experience working and living in Europe.

I I I

I I PROFESSIONAL PROFILE

GEORGE WARREN ORCA

4S36 rr •• part Blvd. Boz 22494

Sacraa.nto, CA 9S822 (916) 457-9844

or 424-3538

2 .. 5

· I I

· I I

· I

· ! , · .

i I : I : I t I

OSJECTrvE:

246

Chie~ Executive, Marketinq or Manutacturers Repres­entation in International Qr Go~. M~:ke~., wi~h compensation geareci ~o Sala5 and P~o~i~ results.

SOXMARY 07 Q~I~IONS:

C=-prahanaive international buainess experience at CEO and .an1or mana~emant level. Total profit re.ponsiD11ity 1n­cludinq .ale., sarkatinq, production. succ ••• tul start up ~ienca in foreign markets. Proven ability to etfect­ively deal with both private inaustry and qovernmant, and diverse cultur ..... Japan, Europe, Mid/¥ar East, Atrica.

~erianced .ales and proqraa neqotiator in distribution arranq-=-ntB, licansin;, joint venturas. Initiated, devel­opea ancl ilIpl_e.ntec1 new and protital)le proq%'zuu; astab­liah.d .al •• tore •• , 4iatribution, promotion, advertis1nq.

Effactive ccmmunicator and persanal sallinq vi~ all levels of cl:'antele anc1 manac;_ent: malta indepen4ent and timely daci.~ona. c.mcnatratecl aDili'toy to establ ish innovati va programs in worldwide market. with po.itive sales and pro~it re.ult •• Exceptional intarpersonal sxill •.

A7P:tLIATIOHS:

EDUCATION:

198~, 86 Who'. Who in the World American Chamber of commerce-Japan, eelqium Former President, Sophia univ. Alumni Assn. London Royal Automobile Club Tokyo American C1Uk), Lawn Tennis Club Tokyo Poreiqn Corresponaents Club

BACHEI.Olt OF SCIENCE DEGREE - ECONOMl:CS Sophia University, Tokyo Japan Additional s~uaies i~ In~l. COMmer=a, Far Ea.~ s~uaias, Retai~ Merchandising.

GEORGETOWN UNIVERSITY, School ot Foreign Service, Waahinqton, o. C. Major, Intl. Commerce, :apanase lan~aqe.

SPEC~ STRENGTHS: Unique combination ot international, in-duatry, and government program experience. Experienced pUblic ap.akar to larqe ana small audience. in U.S, Europe, Par East. Selt mct~vated to improve .k~lls in marketinq, aale., man.~ement, inve.tment, and success patterns.

~GUAGES: Fluent in Japanese ... stuaies in Spanish, French ..

PROFESSIONAL HIGHLIGHTS:

4/86-Present California Export Incentive Program :47 CHIEF EXECYTiVE OFFICER Developed tive poin~ program strateqy for food exports including Inc.n~lve ?rcmo~ion Funds, Trade Show and Consumer Promctior.s, Eleetronic Trade Lead sys~em, MarKet Entry Consultation, and Atcac~­inq Trade Barriers. Developed program startup in­cluding Marketing PlAn evaluation., tinancial con­trols, and RQturn on Investment ~nalysia. Created hiqhly vi.able promotional program including uni~~e trade Ship exhicit to Pacitic Rim, and road and department store ehain promotions. First year ex­por~ increa.es exceeded SSO million.

4/80-4/86 National Renderars Aasociation Inc. DIRECTOR, ~BKEI DEVELOPMENT, ~, EUROPE (9/81-4/86) Aa Director, Europe, A!rica, Middle East, developed ana executed program~ in 25 c~~n­tries. Orqaniaed co.t ettective, innovative program. to increa.. sale and production ot new produc~a and use. in soap, chemical, tood and teed indu.tries utilizing industrial fats and oils. Exports exceeded $400 million annually. (4/80-9/81) From Tokyo Regional Ottice., executed marketing program. throuqhout Asia including sales and technical trade aervicing and seminars, trade missions, product PR and technical puD1ica~ions. Reqiona1 sales ~xce.ded $300 million.

6/75-2/80 Burley Dial Lt~. J B Williams Japan, cantury ~ktg. PR£SrpENT Formed joint ventures with two major personal care product compani.s. As concurren~ President ot bot~ companie., established total operation. Recruited etficient staff in marketing, sales, manufacturing, and finance to begin operation in three mentha. Cr •• ted vital nationwide distribution netvork and aal •• farce in ~o.pl.x Japane •• market. Salas in­cr •••• d 350' in four y.ars with rapid profit in­cr ..... Craated 50 new products making major con­tribution to salea and profits.

6/64-6/'5 American Cyanamid, Shulton IntI, Clifton N. J. MANAGING DIR£CIQR, JAPAN/p~CIFrc Initially Managing Director, J~pan, promoted to Managinq Diractor, Paci~ic. Founded Japan subsid­iary; conducted init1~1 re.earch, ~t~~finq an~ marketinq. Developed ~nto a competltlve, protlt­able buein.s. in extremely competitive market. Sal= initiated devalopment of innovative new products geared to unique markatinq conditions. Results com­prised 70' ot sale. increas ••. (Continued over)

Oth8r e~les ot this ~t ion proPTam are:

Food Pac1!1c, Vancouv~r 248 Interna.tional Focxi Shaw, San Fra.c.c1sco ~ TokYo and SIAL and ANtJGA in France iJld Ger.m.ny HaFEX Honpoo ~ Japan In Stare Pramo~ions with Daiei, Isetan, Nich1u and Seiyu Yaohan In store P'rcm:lt1on, HongKooji; Singapore In Store Prcm:>tian The Golden Bear '!'rade llise1cn to the Pl.cit1c Rim NASDA show part icipa tioll Gift Pack and ~t Prc:act ions in Japan Four to six times annua.lly trade developnent trips to Japan and Par ~ to develop buyers tor Ca.l1!ornia exponers and the producer industry.

Extensive public relatl.ns and med.1a. events wre or;ranized in coordination with these activities; The Golden Bear mission was probably the :ID6t widely publicized toed promotion activity ever created by a U S or~ization with broad television, press, and tood industry and rtBSS CTEdia coverage.

Ole of tlle key parts at the California pro~ was the resea.rch ot Japanese COIlS\J%Wr preferences and trade p~g and product preferences which ~ u.-d to advise producers anc1 ttXPOrters on the type, taste and packaging desi&'noi and sizes !lX)st acceptable to the Japanese rmrket.

Thti ca.l1tornia. Export PrOil"8l1l. i%:.1 t1at:ed in 1986 I played an important role in the re vitaliz.a.tion ot ~he Stati& a.v.ricultura.l and fcxxi 8X1Xlrts. with t!X?Ort sales iIlcreasing trc::m 2.8 billion dollars in 1986. to 4.2 billion dollars in 1989.

The develo}:meIlt of this et:fective and pr~tic pro~ by Urda in a very short period. ot time ',vas possible due to his hands on experience and knowledie 0'1 the Japanise market, which covered conStln'Er and instit"utional foods, beverages, aer1cultu.ral cCIl.1md1ties, product licensing and joint venture estwlisimant in Jax:an and other Pa.cit1c RiI:'l coum:ries.

Urda I S over 20 years of pra.c t ical b~ineS8 and l'llU"l<:et i.r.g experience and r.is !1'UeIlCY in Ja.panese ~uld serve any marketing or~ization w:1shinil: to enter the Japan ... market or assess it's pro~ with no nonsense, practical bwiitless assistance, expert calsultation and evaluat!.on and execution of 1nnova.tive market deYelopnent protrraml.

..

Dr. Chanq-Hwan Kim President, Alliance Research' Conaultants Rm. 704, Tower cry.tal Bldq., 1008, Caechi-donq, Kanqnam-ku, Seoul 135-280, Xoraa Tel: (O~)558-1~40 Fax: (02) 558-5888

Education: M.A. in comparative Politics, Columbia University, NY

C. Phil in Political Economy and Development Studies, oxtord univeraity, UK

Experience: Lecturer, Univeraity ot Maryland

Head ot Subject Specialiata, National Assembly, ROK

Conaultant, EPS, ROK

Established ARC in Septamber, 1989 and serving as head of it with 8 tull time amployee.

Research Proqrama completed:

Korean B •• t Market, March 1989 tor Australian Meat and Livestock Corporation

Korean Conaumer Psychology, September 1990 tor Jensen International

Korean Seet Market Analyala, November 1990 tor U.S. Meat Export Federation

TEA Evaluation, Seqan in January 1991 and atill continuinq tor National Foreat Product. A.aoeiation .

riber Glasa Fabric, July 1991 tor American Embaaay, Seoul

1. The Study on the Korean Beef M:u ~et (March 19-39. Australian Meat & Li'festock Corporation)

2. Comparison Shopping Service (CSS! !Of Lenox China & Crystal (january 1990, American Emba.1)!-;"')

3. C55 for Hartmann Luggage (February 1990, Amerjcan Embas~-y \

4. Broiler Industry Integration Deve~t)plllent (March 19q 0, U.S. Feed Grains eolmr il i

5. CS5 for McKay's Welding Consunnl'ltp. (March 1990, American Embass\!

6. CSS for Grumann Olson's "Freight 'CilJ' . Van Body (August I Q90. American Embassy I

7. CSS for Fleetguard Engine Fi Iters (Sept.ember 1990, American Emba.C\'S~')

8. Dest Research on Individual LUo Insurance (September 1990, CIGNA Corpc)(';a(inn)

9. Study on Korean Consumer Psyrt,ciogy: With Special Reference to Woodfln Housing (November J 990, Jensen Interoal :Cloal)

10. Korean Beef Market and Its Arut(y~js (November f 990, U.S. Meat Expt"r:' Federation)

J 1. CSS for LPS Laboratories, inc., "LP5 Series" Products (December 1990, American Emba~~y)

1 2. TEA J:val uat ion Report (January t 991. National Fore~t P-f f W11lrts Association. USA)

1 :~. CSS fot' KSG International "Kappli"1':md Life-Guard Product" (March I ~91, American Embass~/'

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1 c:i. TEA Evaluation Quarterly Rept1rl (A pr ill 991 . National Forest P"od Ilr.I.S Assoc iation)

J 5. ("'55 for Lorin Industries "Pre-;ulOlhzed Aluminum Reflector Sheets for FluOf'escent Lightin~~ F:;.xrUf'es" (May 1991, American Embass:--" •

. 16. CSS for Owens Corning Fiber Glas~! C(), "Fiber Glass Fabric" (Ju I)' 199 t. American Embass'y)

I '7. TEA Eval uation Quarterly Repol"! (july 199!. National Forest Proouct:~ Association)

18. Korean Seafood Market (A ugus t 1991, Canad ian Embasfiv)

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252

Dr. Kim has ~peciali?ed knowreU~e'JlllJarket feasibility studies as he bp.li~ves t.hat his experience and :';ot:f-:e'ssful performance for the US

cooperator~ · market promotion in K~f'a. uniquely qualifies himself In thar he h"~ nroven ability to idrmrtf1 the objectives of marketing studip.s. In ?dditjon. Dr. K1m i! ','ell positioned to provide a broad fl~~·l.rk of information to his clients through his previous experience at the National Assembly.

Dr . Kim has also been a regu!ru-' n'sf'arch contractor for the U.S. Dep artment. of Commerce to carr;r: r.na the mark et research of U.S. ind u~r.rial and commerc iaJ products: ~~k ing Korean market.

Dr . K;m is it very adventurous and :commHted man which he thinks is an important ingredient in researph itnd consuJting business. Many people want. f.u play it safe all the- timp. but it does not always work. Not a man or client afraid of 8etti:n~ his shirt sleeves dirty. Dr. Kim is a man on the move and one who work"s For the interests of his client.

NAME: Robert F. Hine

PROFESSION: Agribusiness and International Trade Consultant

NA TIONALITY: U.S.A.

YEARS WITH FIRM: Four years

Key Qualifications

Mr. Hine is a Vice President on the staff of Sparks Companies, Inc. He has an extensive background in international trade with special applications in grains, feeds and feed ingredients . Mr. Hine has a wide range of practical experience in food and agribusiness ventures and has owned and operated an export trading company. He has transacted business in over 30 countries, including most regions of the world, and has lived abroad. Mr. Hine's experience as it pertains to the anticipated work in this project includes:

• President and majority shareholder of a holding group under which an Export Trading Company, specializing in grains, was formed in conjunction with a major regional bank headquartered in Memphis, Tennessee. From 1983 to 1988 Mr. Hine had a professional and support staff of up to 25 employees while generating almost $100 million in sales.

• Responsible for subsidiary companies formed under the same holding group which were function specific in the areas of shipping and stevedoring, as well as bagging and handling feed ingredients and grains.

• Established agencies in many countries and overseas offices in Switzerland, Nigeria , Egypt and Venezuela.

• Traveled extensively in Mexico and conducted business at the public and private level in the steel, lumber and grain industries. In 1988 conducted a market study of the imported hardwood lumber business in Mexico.

• In 1984 and 1985, after establishing Lagos office, marketed suntlowerseed and peanut crushing stock to major Nigerian oil crushers employing both expeller and solvent extraction methods. In addition, Mr. Hine has traded significant quantities of meals, including soybean meal, and grain by-products to a number of countries. Mr. Hine has exported and imported steel products, forest products, packaged food items and electronic goods. In addition, he has engaged in debt swaps in Mexico and analyzed countertrade and barter projects involving Eastern European countries.

254

• In 1989, Mr. Hine conducted a complete commodity and industry review of the international grain and oilseed trade which has directly resulted in a multi-million dollar purchase of a major grain trading company by a subsidiary of a major multi­national oil company. The analysis included an investigation of all major import and export countries and a cost comparison of storage and logistical factors which affect trade. The countries included Thailand, Japan, Korea, Taiwan, the PRC , and India.

• Since joining Sparks Companies, Inc., some examples of projects which Mr. Hine has directed or in which he has participated include:

An analysis of cross-border competitive factors between U.S. and Canadian Flow millers.

Several evaluations of transportation related problems involving entry into and logistics within Mexico, through both port and border entry points.

Analyses and evaluation of the international and U.S. markets for oats and derivative products.

Several feasibility studies involving introduction of U. S. product into foreign markets, location of distribution facilities and manufacturing plants and the purchase of a slaughter facility.

A strategic study of the U. S. pork industry, its position within the red meat market and its relationship with poultry and seafood products.

Industry sector studies in both the beef and pork industries for a provincial agricultural ministry and a marketing commission in Western Canada.

Services under contract to A.I.D. in which value-added wood products were promoted for export from Bolivia to foreign markets.

A market and pricing analysis of the protein market, particularly chicken by­product meal, for a pet food manufacturer.

Evaluation of surveys and market analysis for a pump and irrigation equipment manufacturer and presentation of strategic marketing alternatives , including foreign markets .

A complete review of acreage and production of crops in Northern Mexico, its implications on present and future U.S. shipment~ into the country and what prospects exist for both U.S. railroads and U.S. ralicar manufacturers.

. .

255

A determination of the quantity and value of minerals, vitamins. drugs and other additives used in animal rations in the U . S., prepared for a major European company.

EducatiOQ

Several consulting assignments involving the specific details of international trade, as well as providing industry contacts to facilitate product movement.

• Masters International Management The American Graduate School (Thunderbird), Glendale, Arizona, 1975

• B.A. History (Language Minor) University of Virginia, Charlottesville, Virginia, 1971

Employment

• Various positions of responsibility with International Trading Companies located in New Orleans, LA, New York City and Miami, FL, 1976-83.

• President, Unitrade Holding Company/Executive Vice President Unitrade Corporation, Memphis, TN, 1983-88.

• Independent Consultant, Hine International, Inc., Memphis, TN, 1988-89.

• Vice President, Sparks Companies,Inc., Memphis, TN 1989 to present, including special projects as independent conSUltant.

LanKUages

• English - native language.

• Spanish - completely fluent.

• Others - working knowledge only

Portuguese Italian French

Address

Mr. Robert F . Hine Vice President Sparks Companies, Inc. 889 Ridge Lake Blvd. Memphis, TN 38120

Phone: 901 766-4600 Fax: 901 766-4695 Telex: 823299

256

:

257 PERSONAL RESU"E

I. PERSONAL DATAl F1r.t ~ Hidle Name Initl ORLANDO A. ~a.t Na.e, SANCHEZ Birth Date, June 13, 1947 Plaee ot Birtha San Cri.tebal, Venezuela Natlenalitya Venezuelan 1.0. Numberl V-3.076.i24 Ci~il Statu.. Marrled

Re.idenola. AB1TAR! 2000, Apt. e-B Urbanlzacien Le. Caebe., Maraeay E.tado Aracua 2101

Oftlo.:

II. ESTUDI2Sa Ele.entary School.

Hllh School.

Colle,e Education:

Graduate Stud1e ••

Ill. CERTIPICATBS .DIPLO"AS.

Ho.e Phone, (043) 45-69-83

TECNOAVIGA C.A. Terre Co •• opolltan, Pl.o 10, OOc. lOS Ave. 19 de Abr ii, Maracay, Venezuela 2101 Ottice Phone. (043) ~S-93-68 Fax Number~ (043) 4S-65-89

E.cuela E.tadal Cecilio Aco.ta San Cr1.tobal, Taoh1ra (1954-1959) Siaon Bollvar Lyceua San Crl,tabal, Tachi"a (1959-1964) Cantral Univerlity of Venezu.la Schoel et Veterinary Medieine Maracay, Aracua (1964-1969)

CENDES, Central Unlver.ity of Venezuela (li70-1971>

Cornell Unlver.lty Departaent at Alrleultural E~ono.ic. Ithaoa. New York. U.S.A. (197e-1980)

'urdue Unlver.lty Depart.ent at Alrloultural Eoenomic. Krannert School ot Manalement We.t Latayette, Indiana, U.S.A. (1981-198~)

Ele.entary School Dlplo.a (leSe) Hilh Sohool Dlplo.a (18e4> Veterinarian Phy.lclan Dlplo.a (Central Unl~., li69) ""all.ter Soientaru. in Ael'Lo. D ... alwF;u;nt Planr.ln.; (I)C\I, t975) Ma.ter of Sclence 1n Alric. loono.le. (Cornell Unlver.lty, li8l) Ph.D Candldate (On Leave> 1n Alrlc. Econ •• (Purdue Un1ver.lty 1ge~-)

I V. J 01 POS I T IONS. A •• i.tant 'rote •• or of A.rlcultural leono.l0'. Faoulty of Veterinary Solence •• Central Unlv. ot Venezuela. (1971-1978),

258

~"r •• at. Head P~otee.or of A,r1cYitYrai Economic •. Faoylty of V.terinary Sclenoe., Central Univer.ity of Venezyela. ~aracay ( lS~e4-1ge2) •

In.tryctor Prote •• or 1n Oairy Farm Mana,ecent Cour.e at Graduate ~eve1, Advanced Bu.ine •• Mana.eeenet In.t. - lESA, Caraca •• 198e.

Prote •• or at Mathe.atica' iconoe10., Gr.duate Cc~r •• 1~ A,rle. Developeent, Sohool ot A,rie. En,ineerin,. Central Univ. ot lJenezue I a, (1;;2).

In.tructor Prote •• or in wForeulatlon y £conoeie Evaluation of An1mal Health Pro,ra •• w Cour.e. Graduate Cour.e on Preventive Veterinary Medioine.

Univer.l~ad del Zulla - Oticina Pana.er1.cana de la Salud, Maracaibo, Junio de 1992.

V. OTHER JOBS, Con.ultant tor the Live.took Development Direotlon. Hini.try ot A,ricultura ~ Live.took. Caraca. (1975-1978. 1985-1987).

Intercitent Con.ultant tor U.S. Feed Grain. Council. 1987-1992

Director o~ Applied Re.earch and Market Analy.1. D1vi.10n. TECNOAVIGA, 1990-1992

VI, SC!E~TrFIC SOCIETIES MEMBERSHIP. Member of Veterinarian Phy.lcian. A •• oclatlon Member of the A.erioan A •• oeiation of A,rieultural Economi.t. Member ot the Venezuelan A •• oeiation for the Advanoe of Sciences

VII. PUB~ICATIONS "Evaluaclon ot the IV Plan de la Haclon para e1 Seotor

A,rioola R, Faoultad de Cienola. Veterinaria., Maraoay, 1973.

"Oe.and Supply and Price Pork Indu.try". Cornell Univer.ity, 'The.1. ) .

Structure of the Venezuelan Ithaca, N.Y. 1981 <MSc.

wWeltare Analy.1. ot Govern.ent Meaeure. Concernin, the Venezuelan Pork Indu5tryw. nept. ot A,ric. Economic •• Purdue Univ. We.t Lafayette, 1;83.

WEconomic Anali.i. of "11k Production", 1n HANUA~ PRACTICO D£ LA GANAOERIA DE LECHE. Hulti- Cooperative Pro.ra. tor the lmprove.ent of the Venezuelan Dairy lndu.t~y. U.S. Feed Grain. Council, Caraea. 1987.

~ M. Rodri,uez. "Sub.idie. In Venezuelan A,ri­culture", Revi.ta AFACA. Caraea •• January 1991.

"E.tieation ot Production Co.t .1n Dairy Fare." ", CARTl~~A LECHERA. Vol 1, No.5. U.S.F.G.C., Caraca. 1990.

' I I I • SPECIAl.. REPORTS.

PROPEHA, SRL (~.mb.r of the Team). "R ••• areh and Evaluation of MArk.t. tor U.S. M.at. in the Caribb.an Relion" tor U.S. H.at Export Fed.ration Car.o~" September. lSSe.

"R.port on the V.n.zu.lan, Colo.blan and Hleara­~ua ~hLte Corn Mark.t", a .arket Itudy tor U.S. Feed Graln. Council, Caraca., F.bruary 1;8;.

________ ~-, "R.port on the Pot.ntial Utilization d. Raw K.t.rlall .nd By- produot. by the Hod.rn S.ctor ot the Ven.zu.lan O.iry Indu.try". V.n.zu.l.n Hol.t.in Alloal.tion, Car.ca., 1ge8 .

.. Elio l1atut., "Econoillic Evalu.tion ot L.iv •• tock Lo •••• due to Houth and Foot Oi •• a ••• in V.n.zu.la. HAC-BID Prosralll, Caracal, 1990 •

• "R.port on the Study at Quality Pr.t.renc •• ot Venezu.lan F •• d Grain U.er." tor U.S. Fe.d Grainl Council, Carac •• 19;0.

259

TECNOAV1GA C.A. "Study ot the Venezuelan Market tor Probiotio. 1n the Hal lndu.trYI HOI Farm ... F •• d Pl.nt.", a aarket .tudy tor the aentoli-Belilaan Group, L.o. Teque" Venezuel., 1990.

"Report on the Venezu.lan Pet Food Karket", A Confidenti.l H.rket Re.earch Study tor Hid-A.eric. World Trade C.nter, Wiohit., Kan.... Caraa •• , Nov.mb.r 19Q1.

TECNOAVIGA, C.A. "Study on the Venezuelan Market ot Ph.r.aoeutioal Produat. tor the Swine Indultry", a Karket AnalYl1. R •••• rch contraoted by Roulell-CHEI11A, Caracal, July 1982.

;

.. 260

NA.t\1E: Thomas P. Scott

PROFESSION: Agribusiness and Transportation Consulting

NA TIONALITY: U.S .A.

YEARS WITH FIRM: Four years

Key Qualifications

Mr. Scott is Vice President of Transportation Consulting at Sparks Companies, Inc., in Memphis, Tennessee. Prior to joining Sparks, Mr. Scott held a variety of management and merchandising positions with Continental Grain Company. With Sparks, he has worked closely with transportation and agribusiness firms to develop asset allocation and trading strategies. Some examples of his work experience are listed below.

• Performed strategic analysis of grain industry sector in specific regions of US. Made recommendations to regional firm with regard to positioning of assets and long-term strategies.

• Evaluated world and U.S. movement of grains and oilseeds and translated existing conditions into specific recommendations regarding asset allocations for numerous transportation and agribusiness firms.

• Analyzed structure and capacity of U.S. transportation system's ability to handle record large grain exports. Made recommendations regarding appropriate trading strategies and asset acquisitions based on evaluation of the system's ability to handle record volume of exports.

• Designed program to administer and execute large government Payment-In-Kind program for a major American export company.

• Perfonned extensive analysis of site selection for grain handling/processing facility. Developed criteria for evaluation economic feasibility of multiple plant sites.

• Developed and initiated export program for value added grain exports to replace decline of raw grain exports for major exporting firm. Performed market anai. . .lIS

and procurement strategies and evaluated logistical capabilities of firm.

• Analyzed applicability of adopting new harvesting technologies for several forest products firms. Evaluated long term economic and environmental impact of changing existing methods to an unproven system.

.10" '" 'l'~ i-:i,...IDRE /II M. I " /",.J ~

261

Mr. Scott has managed export as well as inland grain facilities and has agribusiness experience in virtually every region of the United States. He has served on the Board of Directors of industry grain associations and has been a frequent speaker at grain trade meetings.

Education

• M.B.A.- Amos Tuck School of Business Administration at Dartmouth College (Amos Tuck Scholar) 1989.

• B.S.- Cornell University 1978.

Employment

• Prior to 1981 Mr. Scott held several management and trading positions in Gilman, n. and Fargo, N.D.

• Manager - Milwaukee Export Facility, Continental Grain Company, 1981-1982.

• Merchandiser - Chicago Board of Trade, Continental Grain Company 1983 .

• Manager - Ohio River Subregion, Continental Grain Company, 1984-1987.

• Vice President - Transportation Consulting, Sparks Companies, Inc., 1989 - present.

• English - native language.

Address

Mr. Thomas P. Scott Vice President Sparks Companies, Inc. 889 Ridge Lake Blvd. Memphis, TN 38120

Phone: 901 766-4600 Fax: 901 766-4695 Telex: 823299