Exporter's Winning Strategy: Think Fast and Stay Cool - Brief Article

AgExporter, Nov 29, 1999 by Jill Lee

In his haste to catch a flight to Saudi Arabia, Bill Aossey, president of Midamar Corporation, forgot his suitbag. Thus he ended up as the only member of an Iowa trade delegation to the Middle East wearing casual clothes.

It was a lucky break!

U.S. business attire was no match for the sweltering June heat of Saudi Arabia, and the other members were quickly sweat-drenched under their wilted suits.

The Saudi clients, dressed in traditional white kaftan robes, were surprised - and slightly amused - that Aossey alone had the sense to anticipate and dress for their summer weather.

Staying cool and adapting are traits that Aossey encourages in U.S. executives wanting to export. He talks about spotting windows of opportunity, staying flexible and knowing the traditions and cultures of international customers.

Midamar, A Fast-Paced Export Shop

Back in 1972, Aossey started Midamar with $30,000 borrowed from his brothers. Today, the Cedar Rapids, Iowa company represents some 200 food and equipment exporters. It has assets and customers throughout the Middle East, Southeast Asia, North Africa and Europe. In 1990, Aossey received the "E Star" Award - the highest award for exporters. Here are some of his insights for exporting neophytes.

Look for Windows of Opportunity

Halal meats have been slaughtered in accordance with Islamic law, so exporting them to the Middle East seems counterintuitive. But this is where Aossey demonstrates his savvy.

"The Middle East and Southeast Asia found new prosperity in the 1980s, and five- and four-star hotels were being built. Consumers there wanted to serve American-style products like steaks, pizza and luncheon meats, not just traditional Middle Eastern and Asian fare. But whatever the meat product, it still needed to be produced in accordance with Islamic law," Aossey explained.

Aossey, a first-generation Lebanese-American, understood these traditions.

But Aossey also had in-depth knowledge of USDA meat standards and exporting requirements. Combining this knowledge gave him a winning edge.

Seize the Day

Aossey also notes that just because an export opportunity doesn't last decades doesn't mean it's not a good deal.

"There are long-term opportunities and there are short-term economic situations lasting 2 to 5 years," Aossey said. "Part of exporting is looking for that short-term window."

Midamar's policy is not to name clients, but several U.S. international restaurants have purchased meat from the company when they were establishing themselves overseas - particularly in the Middle East and Southeast Asia.

Eventually, the food producers in these countries began supplying the restaurants. But the temporary partnership brought Midamar several years of export opportunities. By the end of the transition, the company was on to new-found opportunities.

Knowledge Is Power - So Help Yourself

Midamar's library includes trade journals and newspapers from all of its client nations. This provides daily, weekly or monthly updates on potential opportunities and problems. According to Aossey, economic turbulence in Southeast Asia and Russia in 1999 were no surprise to people reading the right local business publications. Even the world news sections of local news papers can be an important resource.

But reading is no substitute for getting on an airplane, visiting a site, and seeing for yourself.

"Someone can send you an e-mail saying they are one of their country's biggest distributors, but until you get there you can't really assess that firm's cleanliness and cold storage," said Aossey." You are exposed not at risk - but exposed when your product leaves your control. You have to know what your representatives overseas can and cannot do."

It's One World - Many Nations

Successful exporters don't necessary have to be world travelers, Aossey said, but they do need to understand that things are different overseas.

"In the United States, you can take out your cell phone and get your plane ticket, car rental and order lunch all at once," he said. "But in other countries that is not always an option."

Aossey said language can be a barrier too - even unspoken gestures that are positive in the United States, such as the okay sign or thumbs up, have offensive connotations in some cultures.

Timing is another issue. For the Japanese, punctuality is a priority. In other countries, being half an hour late is almost expected.

Be Flexible

Sometimes these cultural differences can be difficult.

"You can arrange to meet somebody, fly halfway around the world to do so, and arrive only to be told he won't be there until after you're scheduled to leave," said Aossey. "You keep your composure, try to extend your stay, and you see who is there and try to work with them. It's just a different perception of doing business."

But flexibility also means lending importers a helping hand when their nation's economy hits a downturn.

"It may be in your interest to cooperate on pricing and reduce margins,"Aossey said. "You provide financial terms to accommodate an importer's distress because you cannot afford to be out of the market 2 or 3 years from now while the economy rebuilds. You need to keep a continuous market presence."