The global pandemic of recent years disrupted international travel and trade, but it did not deter the U.S. Department of Agriculture's Foreign Agricultural Service (FAS) from promoting U.S. food and agricultural products worldwide. Leveraging digital solutions, the FAS introduced virtual agribusiness trade missions, connecting American exporters with potential partners through online business-to-business (B2B) meetings. One such success story emerged when Hormel Foods, a leading food processing company based in Minnesota, met Nutrisco, a major food distribution company in Chile, during a virtual trade mission. Over the next two years, the companies worked on strengthening their relationship to bring Hormel Foods products to the Chilean market.
Chile, one of the top three markets in South America for agricultural and related products, presented a significant opportunity for Hormel Foods to expand its food service business. Delfin Bernal, Latin America & Caribbean Business Development Manager at Hormel Foods, expressed the company's search for a strategic partner to facilitate growth in Chile. Thanks to the USDA virtual trade mission, Hormel Foods connected with multiple potential customers and eventually partnered with Nutrisco Chile, a leading food distributor in the country.
During the USDA agribusiness trade mission to Chile in 2023, Hormel Foods and Nutrisco celebrated their newly formed partnership by signing an official agreement. This marked a significant milestone in their collaboration and paved the way for Hormel Foods to supply their products to Chilean supermarkets and restaurants through Nutrisco's distribution network. The first container load of Hormel Foods products arrived from the United States in 2023, focusing on popular categories such as pepperoni, bacon, and meat ingredients. As the demand for their products in Chile increases, Hormel Foods plans to expand its portfolio within these categories, aiming to ship two containers per quarter in 2024.
Building global business partnerships
The success of the partnership between Hormel Foods and Nutrisco highlights the purpose of FAS trade missions - to forge new business relationships for U.S. exporters and enable them to deliver more American food and agricultural products to global markets. Each trade mission organized by the FAS offers businesses numerous opportunities to connect with potential importers and engage in meaningful business-to-business meetings.
Looking ahead, the FAS has announced trade missions planned for the upcoming year, including destinations like Canada, Colombia, India, Korea, Morocco, and Vietnam. The Seoul, South Korea mission presents an exciting opportunity for companies to expand their exports to Southeast Asia. With hundreds of meetings expected between U.S. exporters and Korean importers, this mission promises to foster increased trade between the two nations.
The partnership between Hormel Foods and Nutrisco has specifically contributed to boosting U.S. pork exports to Chile. As one of the leading food distributors in the country, Nutrisco plays a crucial role in supplying many Chilean supermarkets with a variety of products. Through this collaboration, Hormel Foods aims to make its pork products more readily available to Chilean consumers.
Chile has emerged as a significant market for U.S. pork exports in South America. With its strong economy and growing demand for high-quality meat, Chile presents a promising opportunity for American pork producers. The USDA trade mission facilitated the connection between Hormel Foods and Nutrisco, enabling them to tap into this lucrative market.
Benefits of virtual trade missions
The emergence of virtual trade missions has revolutionized the way businesses connect and expand their global reach. While the COVID-19 pandemic may have limited physical travel, digital solutions have bridged the gap, allowing companies to continue engaging with international partners. Virtual trade missions offer several advantages:
- Cost-Effective: Conducting trade missions virtually eliminates the need for expensive travel arrangements, saving businesses significant costs.
- Increased Reach: Virtual trade missions enable participation from a broader range of companies, including small and medium-sized enterprises (SMEs), who may have previously struggled to engage in international trade due to financial limitations.
- Efficient Networking: Online B2B meetings during virtual trade missions provide a platform for companies to connect with potential importers and establish meaningful business relationships efficiently.
- Time-Saving: Virtual trade missions eliminate the time spent on travel, allowing companies to engage in more meetings and maximize their networking opportunities.
Chile's position as one of the top markets for agricultural and related products in South America makes it an attractive destination for U.S. exporters. The country's robust economy, increasing disposable income, and evolving consumer preferences create a favorable environment for American food and agricultural products.
Furthermore, Chile's geographic location allows it to serve as a gateway to other South American countries. By establishing a foothold in Chile, U.S. exporters can leverage the country's strong distribution networks to access neighboring markets.
Nutrisco Chile, as a leading food distributor, plays a vital role in connecting U.S. exporters like Hormel Foods with Chilean consumers. With many Chilean supermarkets relying on Nutrisco for their product supply, the partnership with Hormel Foods enables a broader range of customers to access American food products. This collaboration enhances Nutrisco's portfolio while diversifying the offerings available to Chilean consumers.
Future growth and expansion
With the initial shipment of Hormel Foods products to Chile marking the beginning of their partnership, both companies are optimistic about future growth. Hormel Foods plans to expand its distribution in Chile, aiming to ship two containers per quarter in 2024. By increasing their product portfolio within popular categories such as pepperoni, bacon, and meat ingredients, Hormel Foods intends to cater to evolving consumer demands.
The partnership between Hormel Foods and Nutrisco serves as a testament to the success of FAS trade missions in fostering global business relationships. As the FAS continues to organize trade missions to various countries, U.S. exporters have the opportunity to expand their reach and deliver high-quality food and agricultural products to international markets.
Don't miss the chance to participate in upcoming FAS trade missions, such as the Seoul, South Korea mission, by submitting your application. These missions offer a gateway to new business opportunities and provide a platform to connect with potential importers. Expand your export potential and join the growing network of successful U.S. exporters.
