Q&A With Experienced Exporter, Darwin Rader, of Zeeland Farm Services
Charles Hadden, President and CEO, Michigan Manufacturer's Association

MDEC-West member Chuck Hadden, President and CEO of the Michigan Manufacturers Association met with fellow MDEC-West member, Darwin Rader, of Zeeland Farm Services to discuss global business challenges and opportunities.  Darwin Rader has been the International Sales Manager for ZFS since 2007.    His experience includes ownership and senior management roles in the wholesale, retail, manufacturing and agricultural industries.
 

Hadden: Where are you selling internationally? 

Rader: Zeeland Farm Services began exporting in the late 1990s.  Most of the product we export is soy bean meal for use in the production of soy sauce.  Most of the non-GMO soybeans for this meal are grown in Michigan, processed in Zeeland and then transported in containers overseas.  We’ve exported to Japan and Singapore for around 15 years.  Our distributor recently opened offices Taiwan and Korea which has resulted in increased sales in those countries as well.  We have also shipped to China, Sri Lanka, Vietnam, Malaysia, Bangladesh and Indonesia for the last 5 years.  
 

Hadden: How do you assimilate international distributors into your corporate culture?

Rader: Our success is built on the close communications that we have with our distributors and also the fact that we travel to see each other frequently.  They are in our office every other month at a minimum.  In the business atmosphere, we know where each other is coming from because we know each other very well on a personal basis.  It’s a relationship that is built on trust which is built up over time and is very important. 

Hadden: Did you experience any barriers while building your business globally? 

Rader: One barrier we ran up against with a Chinese distributor, was their  unfamiliarity with how to do business in the US.  It took a transition period of a couple years for them to become aware of common business practices.  Because we work with commodities and the Chicago Board of Trade, we have to rely a lot on trust. When someone tells us that, “Yes, we want to go ahead and commit to this contract,” either verbally or through email, we go ahead and lock-in with the Chicago Board of Trade.  It took some training and people getting accustomed to the idea that once they gave us their verbal commitment, that was basically a contract. 
 

Hadden: What are some of the lessons learned that you could share with new exporters?

Rader: 1) Don’t be afraid of exporting.  There are adequate resources willing to help, especially this organization, the Michigan District Export Council -West.  
2) If something seems too good to be true, it probably is!
3) We believe in controlling our product until we have payment in hand.  We had a situation a few years ago where someone offered us 10% down on a shipment, so we put the product into containers, shipped it, and then they didn’t pay.  That’s one benefit of being with a trade organization, because your competitors can tell you who to steer clear of.  Know your competition; know if they have issues; communicate with them on who to steer clear of overseas.  That’s always good information to know.    

Mr. Hadden's full interview with Mr. Rader will be available in January via podcast at www.exportwestmichigan.com. To request an individual meeting with a District Export Council member to discuss growing your international sales strategy, contact Kendra Kuo, Director of the Commercial Service- Grand Rapids office and Executive Secretary for the Michigan District Export Council- West at: kendra.kuo@trade.gov
 

Benefits to Michigan Companies under the Trans-Pacific Partnership Agreement (TPP)