VERNON ACHENBACH JR. Lancaster Farming Staff BROWNSTOWN (Lancaster Co.) A local grain-moving equipment dealer and service busi ness conducted its first internation al exporting deal as a result of the Pennsylvania Department of Agri culture’s first International Trade Event Two weeks ago, Jack Conrad, owner and president of EMM Sales and Service, signed a con tract with a large, family owned grain-hauling business in Mexico to supply about $50,000 worth of customized Walinga grain vacuum equipment If the Mexican business owners are satisfied with the equipment and the support provided by Jack’s brother and field and service rep resentative Dick Conrad, the deal could well represent a total of $3 million in sales for Conrad. He was visibly happy with the prospects two weeks ago, as were the representatives of the Mexican business. The Mexican company is TMU, which stands for Transportistas y Molineros Unidos, and it is owned and operated by the family of Fran cisco Pena, his son Rodrigo Pena and L Marco Antonio Pena. The company hauls com for human consumption to tortilla plants throughout the Mexico City region. It*s a multi-billion dollar industry that Francisco started by hauling com for himself and others, and that continued to expand until he became mostly a hauler. However, up until now, the com hauled by TMU has been stored in bags. Right now the Mexican com pany is in a transition that Conrad said is similar to the transition that occured locally about 25 years ago from the labor intensive individual bag hauling of grain in this case com for tortillas to the use of bulk hauling and storing. Conrad is in a position to help. The Penas needed some equip ment that could move grain from a flat storage into a truck bin, or stor age bin without damaging the grain. A PTO-driven grain blower that RELENTLESS CONTROL MEANS RESIDUAL CONTROL. All season. PURSUIT® herbicide combines contact and residual activity to clear out more than 40 weeds, including velvetleaf, cocklebur, shattercane, nightshades and foxtails. In fact, PURSUIT gives you the greatest overall weed control available. And that means you get the greatest For More Information Call 1-800-942-0500 Ahnyt follow label direction*. ®/~ Trademark*, American Cyanamid Company Cl 987 International Trade Show Works For Pennsylvania is manufactured by Walinga and modified older trucks can be modi fied by Conrad for the Penas’ busi ness uses. Further Pena is to become a sole distributor of the equipment, through Conrad, in Mexico. Part of the contract also pro vides that Conrad’s brother Dick be in Mexico 20 days after TMU receives the equipment it was to be trucked to the border town of Loredo, Texas, and TMU would take over the customs handling and final delivery. For both the Penas and Conrad, the business deal is the result of more than two years of discussions and establishing a personal relationship. It also represents a new world of opportunity for Conrad. While he has a relatively large distributor ship region in the United States, this is his first international deal the world is opening up. And while the North American Free Trade Agreement (NAFTA) has helped to create an environ ment for increased trading between Mexico, the United States and Canada, the reality is that for a small businessman, such as Con rad, the doors to trade aren’t readi ly opened. Large international companies have had trouble for years attempt ing to break into international markets because of not under standing the needs, traditions, or unique situations in the various markets. Also, trade laws, local customs and language problems have also been obstacles. For large companies with the ability to hire translators, research and development teams and pay for extended travel or expertise, the barriers to opening up trade have been sometimes very difficult to overcome. For a business such as Conrad’s, which has a fairly limited customer base, international dealings have mostly not been considered. Conrad gave credit to the state Department of Agriculture and Gov. Tom Ridge for providing the opportunities for him to meet with potential international trading partners two years ago, at the first From the left, Francisco Pena, owner of TMU in Mexico, and Jack Conrad, owner of EMM Sales & Service in Brownstown, as well as Rodrigo Pena and L Marco Antonio Pena, stand with a compact grain vacuum that handles grain with minimal damage. Conrad and the Penas met through the first International Day Event and recently com pleted a business deal that represents the first exporting for Conrads business. state Farm Show International businesses within their region who Trade Show, held at a Harrisburg might be interested in exporting, or h° te i- who might have some commodity Even before the fruits of the first qj- service for sale that is of interest trade show began to be realized, b y an interest in another country, some questioned the state being under Russell Redding, state involved in directly supporting a deputy agriculture secretary for forum to link Pennsylvania marketing, promotion and prog businesses to international buyers. ram service, the Bureau of Market Despite second-guessers and Development has been turned into detractors, it panned out well, an effective link between Pennsyl according to businesses involved, vania agribusiness and out-of-state “It’s the first time the state gov- jmd international customers, eminent has done more than col- p o r (he Conrad/Pena relation lect my taxes,” Conrad said, in s hip, the state was matchmaker, praise of the International Day provided a translator, and also ev ®" L . ~ , , „ . „ helped by attending local meetings Conrad said that after all the talk finding o ut information neces about helping small busmess, the ■ .. .. ■ International Day even, was .he £ buStT^ibiliuS. , j • _ .u- representative with the PDA actively do.ng someth.ng, espe- B^u Market ciaUy for smali business Domestic and International Trade Under the direction provided by Divisi said Conrad js M much Gov. Ridge, die PDA developed a tocreditfor th e sensibilities system of helping to promote to able to conduct exporung that incorporates a business outside of well . cooperative agreement with other known com munity in which he state departments and a crew of bves regional people who help locate flWgaafllll - ■ V / }' AgriCenterA dMlw t===». Prafaulaiullua • Sanrtct • Eavirwintiiul RoMnlklltty return on your investment For heavy infestations of grasses, use the premiere sequential program of PROWL® followed by PURSUIT Relentless control means residual control. For soybeans, nothing is more important. [warmest PARTNERS. VanDerSchaaf said that small business has very much opportuni ty to break into the international market, but it requires some funde mentals that can't be taken for granted. He said that honesty, integrity, commitment and developing rela tionships with customers are as crucial as having the desired product “It takes time to build that rela tionship,” VanDerSchaaf said. “Your not going to make the sale the first time,” he said. But he added that for those who are truly seeking to establish their business outside of United States borders (other than Canada), the potential is there. “Jack (Conrad) has vision," VanDerSchaaf said, explaining that while EMM Sales and Service was built upon serving animal feed grain businesses, he has been able to adapt to the human feed grain requirements of the Penas. In fact, VanDerSchaaf said that both the Penas and Conrad have vision, and share a common history. Both started off rela tively poor, worked and saw opportunity to pro vide a service. For both, their endeavors resulted in expansion. The Penas’ TMU developed into a huge grain hauling business, but it is not without competition. The Mexican govern ment, which subsidizes the hauling of the com for tortillas, wants more efficiencies. The Penas need to show they can be competitive. EMM Service and Sales has the equipment they need, but they also need the company’s ability to modify, repair and service equipment and provide technical support. Both men have fami ly operations and both are trying to create a future for their sons. Conrad isn’t alone in having conducted sales through meetings at the International Trade Show. (Turn to Page A 23)
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