Last week Governor Bob McDonnell announced two
new agriculture export deals with Asia.
Soybeans
Montague Farms, a family-owned producer and
exporter of specialty soybeans based in Center Cross, Virginia, reached a new
agreement to supply food-grade soybeans to a customer in Japan. The specialty
soybeans will be imported by Tokyo-based Sun-Tommy International Company and
distributed to food processors in Japan. The soybeans will be used to make
natto, a fermented breakfast food that is considered a traditional delicacy in
Japan. Governor McDonnell met with executives of Montague Farms, Sun-Tommy, and
a food processing company in Tokyo on Wednesday to thank Sun-Tommy for reaching
an agreement with Montague and to discuss future export business from Virginia.
The genesis of the trade deal between Montague
and Sun-Tommy has roots in the governor’s trade and marketing mission to Asia
in 2011, when Mr. Minoru “Tommy” Tominari, President of Sun-Tommy International
Company met with Governor McDonnell and other Virginia representatives to
discuss future export opportunities. Since that time, Mr. Tominari has worked
with Montague Farms and Virginia agricultural trade representatives in Asia and
Virginia to develop new sales opportunities for Virginia's food-grade soybeans
in Japan. The specific financial terms of this new sale are confidential
due to the specialized and highly competitive environment for this unique farm
product, but the deal is valued at approximately one million dollars.
“The governor's strategic decision to focus on
growing agricultural exports from Virginia continues to yield results for our
producers and the overall economy," said Secretary of Agriculture and
Forestry Todd Haymore. “Export sales, which now are responsible for about
30 percent of total farm income, continue to grow in importance for our family
farms. Beyond that, exports are creating opportunities and supporting jobs in
non-agricultural sectors between our farms and ports, such as transportation,
storage, and finance, as they generate approximately $1.40 in-state for every
$1.00 exported.”
The specifications for the soybeans to be
exported by Montage Farms to Sun-Tommy International are strict. The
soybeans supplied by Montague must meet strict requirements for size, shape,
color, moisture content, and several other physical properties. The
soybeans also must be certified as not having been genetically modified
(non-GMO). Montague Farms contracts with a network of farmers in Virginia
and surrounding states to grow and ship specialty soybeans.
Wine
Chateau Morrisette and the Tianjin Commodity Exchange
Company Limited (TJComex) have reached a five-year agreement to export Chateau
Morrisette wines to China. The inaugural sale of more than 1,150 cases of
wine from Chateau Morrisette was scheduled to arrive in Tianjin, China's fourth
largest city, during the Governor's mission to Asia.
In
Beijing, Virginia Secretary of Agriculture and Forestry Todd Haymore met with
leadership of the commodity exchange to recognize formally the sale of Chateau
Morrisette wines after meetings in Virginia late last year and to discuss
future wine purchases. Haymore and TJComex leadership also agreed to
explore potential export opportunities of other agricultural products.
Chateau Morrisette is located in Floyd County and is
regarded as one of the oldest and largest production wineries in
Virginia. The winery produces more than 60,000 cases of wine per year
from its scenic location on the Blue Ridge Parkway.
“The Tianjin partnership is an integral step toward
implementing our long-range strategy of increasing distribution both
domestically and internationally,” says Chateau Morrisette General Manager
George Weldon. “A five-year contract firmly positions Chateau Morrisette
on the global stage as Virginia's premier winery and it serves as a testament
to the quality wines produced by our winery.”
TJComex was founded as China’s fourth commodities exchange
and the first in the country to be funded privately. The company provides
a trading platform for a wide range of materials and commodity products,
ranging from wood products to iron ore, and now high-value agribusiness
products such as wine. The exchange began operations in December 2009 and
is developing its portfolio of commodities along with opportunities generated
by consumer demand in China.
Dr. Chuanliu Ni, President and Chief Executive Officer of
TJComex said, “We are very pleased to have found wine of such superb quality in
Virginia. The Chinese market for wine is growing rapidly and we hope that
by beginning a long-term relationship with Chateau Morrisette, we will expand
wine culture in Tianjin and open our city and country to future purchases of
Virginia wines. We also would like to thank Governor McDonnell, Secretary
Haymore, and Virginia’s agribusiness development team for their help in
introducing Virginia wine to consumers and investors in China.”
Leading up to this sale, Virginia Department of Agriculture
and Consumer Services (VDACS) international marketing staff partnered with the
Advocom Group to introduce TJComex members to various Virginia wineries.
Advocom and VDACS staff worked together to coordinate a trade visit by TJComex
members to Virginia, during which members of the exchange met with Virginia
companies producing wine, wood products, and other agribusiness
commodities. Founded by Virginia residents Lane Bailey and A.J. Donelson,
the Advocom Group is a global consulting firm with offices in Washington, DC
and Beijing.
“We were pleased with this initial purchase and we look
forward to helping TJComex with future purchases and investments in Virginia
wines and other products,” said Donelson.
Domestic and international promotion of the Virginia wine
industry is one of Governor McDonnell's top economic development and jobs
creation initiatives. Since 2010, the McDonnell administration worked
with the General Assembly to establish a reimbursable tax credit program for
the establishment or expansion of vineyards and wineries and to almost triple
the amount of funds placed in the Virginia Wine Promotion Fund for research,
education, and marketing programs. Governor McDonnell also promotes the sale of
Virginia wines in Virginia, around the country, and during foreign trade and
marketing missions.
Virginia currently ranks fifth in the number of wineries in
the nation with more than 230. Virginia is also the nation’s fifth
largest wine grape producer. According to a 2012 economic impact study,
the Virginia wine industry employs more than 4,700 individuals and contributes
almost $750 million to the Virginia economy on an annual basis. In addition,
more than 1.6 million tourists visited Virginia wineries in 2011.
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