S-A-B-I-T spells opportunity for U.S. firms seeking business partners in the NIS

AgExporter, August-Sept, 1996

The Standards Program is one of six SABIT programs that supports economic restructuring in the NIS by funding training for NIS managers and scientists in U.S. companies. SABIT not only enables NIS interns to effect positive change in their home countries, but also provides U.S. and NIS companies a unique opportunity to develop the critical partnerships that are the key to success in international business.

During their comprehensive two-month training session, the NIS experts learned about U.S. private and public sector processes and procedures for standards development, conformity assessment and quality management of processed and packaged foods. They trained with major food producing and packaging firms in Iowa, Kansas, Minnesota, Missouri, Nebraska and North Dakota. The goal of the training was to teach the experts how to ensure the delivery of safe, healthy and high-quality food products from farm to consumer.

SABIT Successes

Established in 1991 with funding from the FREEDOM Support Act, SABIT has provided training for nearly 800 NIS interns at more than 200 U.S. companies. Almost two-thirds of these companies have developed ongoing business relationships, such as joint ventures, distributorships and contracts, or scientific collaboration with their interns.

Based on recent surveys, it is estimated that SABIT has facilitated as much as $60 million in business between participating U.S. firms and NIS companies. Even more staggering is the anticipated future value of the U.S.-NIS commercial ties fostered by SABIT - an estimated $300 million.

Agribusiness is one of the many sectors given priority consideration for funding under the original SABIT program. Areas of expertise of past SABIT agribusiness companies have ranged from canola oil research to wine production and from bovine genetics to grain marketing.

One food processing company in New York provided a SABIT intern from Almaty, Kazakstan, with six months of training in U.S. sales and marketing methods for the food processing industry. Since the intern's return to Almaty, the company has sold more than $400,000 worth of its juice extraction equipment to Kazakstan.

Many of the U.S. companies that have participated in SABIT praise the program highly. Candace Frasher of Arbor Crest Wine Cellars in Spokane, Washington, commented that "SABIT is an excellent tool for facilitating business relationships between the United States and the NIS. The interns are carefully chosen and are well matched to the U.S. companies with which they train. I would recommend SABIT to any firm interested in developing business ties with the NIS."

U.S. companies benefit from the SABIT programs by gaining allies who can become their best partners and customers in the NIS. They also get insight into the NIS business and scientific climate. SABIT interns return to the NIS with the new technologies and innovative management skills they need to support the transition to a free-market economy.

SABIT interns say that participating in the program not only has provided a valuable opportunity to witness firsthand how a market economy operates, but also has changed their attitudes. Tariel Gogoberidze, a SABIT intern from Tbilisi, Georgia, said, "Such programs are necessary to my country to help move from an old socialistic system to a free market. The SABIT program helps participants learn about civilized markets, make business connections and [attract] possible foreign investment."

Six SABIT Programs

SABIT currently manages six different training programs, each designed to address the different needs of NIS executives, while considering the various interests of U.S. firms.

The original SABIT program awards grants on a competitive basis to U.S. organizations to help defray the costs of training NIS managers and scientists in the United States for three to six months. Interested U.S. companies apply to SABIT when funds are available. SABIT reimburses participating companies for each intern's roundtrip airfare and daily stipend. Host companies provide visa support, housing, medical insurance and hands-on training.

SABIT supplies firms with qualified applicants from whom to choose, or firms can nominate candidates whom they wish to train.

The other five SABIT programs were specially designed to provide comprehensive two-month training sessions to groups of selected NIS trainees. Each session consists of an initial overview of the focus sector, followed by several weeks of hands-on training with U.S. companies involved in the industry.

For these programs, SABIT pays for each intern's international airfare from Moscow, all domestic U.S. travel, daily stipend, housing and insurance, and provides two interpreters and a facilitator to assist each group. The U.S. host companies are asked to commit to training a group for one to six weeks, and to provide some local transportation.

The SABIT programs are:

* Standards Program - has trained 103 NIS specialists in standardization and accreditation, focusing on the automotive, medical, telecommunications and aerospace sectors, and including the recent food processing and packaging session. Future sessions will cover oil and gas and construction and infrastructure sectors.