Many small- and medium-sized companies will not have a substantial budget for conducting international trade research. These companies will often rely on secondary trade research as much as possible.

Most SMEs will perform the majority, if not all, of their research in house by using published sources and the Internet.

This type of research is called desk research and it involves obtaining secondary data (existing data that have already been collected for some purpose).

Whatever the size of the company, researchers should always start planning their research design by investigating whether any information can be sourced from within the company; for example, by finding information stored in company records, by talking to customers or distributors or by asking employees who have worked in a potential target market for information. However, most secondary data sources are external.

There’s a world of secondary data at your fingertips

Internal records and information from internal experts:

Sales and accounting records – can be used to determine baseline comparisons of trends, costs and target customers

Distributors and customers – can be used to determine buyer expectations and purchase patterns

Employees with experience in the target market – can be used to determine opinions about general conditions, cultural impact and business methods

External sources and experts:

Government departments and agencies – can be used to determine market assessment publications, trade statistics, trade regulations and export and import controls

Representatives of the target country – can be used to determine trade and market conditions specific to the country and cultural considerations

Trade or industry associations – can be used to determine practices, trends and conditions related to the organization’s expertise

Non-governmental associations (NGOs), universities and trade-related businesses – can be used to determine comparative market, population and demographic statistics, competitor information and credit information

Publications, directories and yearbooks – can be used to determine market statistics, general information about trends, interests, demands and regulations, sources of information and advice

Various websites and data tools – can be used to provide fast access to publications, directories, statistics and market research reports

When should you dive into secondary data?

Researchers should always check whether secondary research data are available internally before accessing external sources.

There are several reasons why a research project should always investigate secondary data sources first:

• It is cheaper to collect secondary data than it is to collect primary data.
• It is faster to collect secondary data than it is to collect primary data.
• Secondary data might be available that answer the market research objectives without the need for primary research.
• Secondary data collection can help improve a researcher’s understanding of a marketing problem and therefore lead to better design for the primary research.

Secondary data should also be used in the following circumstances:

• When companies are considering entering unfamiliar markets, secondary data enable companies to gain an appreciation of the nature of the market and the competitive business environment without spending too much money
• When researchers need facts that would be unrealistic or unnecessary to gather from a primary research source, such as the annual consumption of coffee in Poland or the population of Trinidad
• When researchers need to understand or monitor trends in financial issues, business conditions or demographic factors
• When primary research is too difficult or too expensive to access, secondary data might be all that is feasible

This article is adapted from content covered in the Feasibility of International Trade FITTskills course.

Learn everything you need to know about assessing your organization’s readiness to make the leap into new global markets including planning and executing effective market research.

Michael Whitmarsh has built an impressive career in international trade, with a focus on supply chain management, corporate development, and global expansion. His journey, driven by a passion for business and exploration, illustrates the profound impact that mentors and continual learning experiences can have on a career.

An international career from the beginning

Michael’s career in international trade began at Weatherford International, where he managed U.S.-based purchasing and global logistics across 21 countries. It was the perfect starting point for a young professional fresh out of the University of Houston, where he earned a double major in Economics and Spanish.

“Being born and raised in Houston, the oilfield industry was a natural calling for me,” Michael explains.

His dual expertise in supply chain and international relations helped him transition into the global scene.

From the outset, Michael’s work exposed him to the complexities of international business, allowing him to combine his love for travel with his skills for business development.

“Once I started doing business across borders, I developed a passion for international trade.”

He continued to gain experience with Holloway, an NOV distributor, where his exposure to global markets solidified his passion and set him on the path to become a leader in the oilfield industry.

Leading Block 4 Oilfield, LLC

Today, Michael leads Block 4 Oilfield, LLC, one of the fastest-growing oilfield companies, with operations in the U.S., South America, and the Middle East. Under his leadership, the company has expanded through strategic sales, acquisitions, and entry into international markets.

“I’ve spearheaded the growth from day one through my understanding of international markets, business development, sales, and marketing.”

His dual expertise in supply chain management and corporate development has allowed him to navigate the complexities of global trade and strategically grow Block 4 Oilfield.

“My career has been two-pronged. My first ten years focused on supply chain, purchasing, and logistics, while the second half has been corporate development, setting up distributors, and entering different markets,” Michael said.

This unique combination of skills has made him an effective leader, capable of taking his company into new and challenging regions around the globe.

The Role of FITTskills and the CITP designation in his growth

For Michael, the FITTskills program and the CITP designation provided the formal education and credentials necessary to elevate his career in international trade. His decision to pursue the FITTskills courses stemmed from his interactions with Canada’s Trade Commissioner Service (TCS) and Export Development Canada (EDC), two organizations that played a pivotal role in his understanding of international business. Michael explains,

“I knew that FITT, being associated with EDC, was an outstanding organization to seek training and obtain certification from.”

Michael found the FITTskills courses particularly valuable in areas where he needed to strengthen his expertise, such as trade finance. “Finance was the side of trade where I was weaker before the training,” he admitted, but the courses helped him “add a lot of skills to [his] belt.”

His favorite course, Feasibility of International Trade, gave him a deeper understanding of the risks and benefits of entering new markets.

“It provided useful tools in risk analysis and risk management, tools that I use on a daily basis in my position.”

His CITP designation, which he earned through the FITTskills program, also helped Michael distinguish himself as a global trade expert. “I’m extremely proud to have the CITP designation and to present myself as an expert in international trade,” Michael said.

The credential not only proves his expertise but also connects him to a network of professionals who share his dedication to ethical business practices and ongoing professional development.

A world of lessons through global experiences

Michael’s career has taken him to over 20 countries, providing him with rich cultural experiences and an understanding of how different regions approach international trade. He shared some of his favorite stories, such as working in the Middle East, where relationship-building is paramount before discussing business.

“In Abu Dhabi, we would talk about families and personal experiences over tea or eat Mandi on the floor in a traditional manner before business even came up,” Michael recounted. This cultural insight helped him adapt to various regions and avoid the pitfalls of international etiquette.

His experiences in Latin America, Singapore, and the Middle East have taught him to “do as the Romans do” — to adapt to local customs and respect cultural differences. “You’ll pick up on things really quickly,” Michael advised.

He stressed the importance of researching local customs and relying on networks like expat communities or experienced colleagues for guidance when entering new markets.

Inspirational mentorship from an industry leader

A key influence in Michael Whitmarsh’s career has been his mentor, John Samuels III, a legendary figure in the energy and commodities trading industries. Michael met John during his time in the Middle East, and they collaborated on several projects, including commodity trading deals between the U.S. and the Middle East, as well as launching an oilfield rental company in Sharjah, UAE.

John’s incredible career trajectory—starting from humble beginnings in Galveston, Texas, to building a corporate empire with diverse holdings—served as a powerful inspiration to Michael.

John’s vast knowledge of business, his grace under pressure, and his ability to intertwine personal life with professional success left a lasting impression.

“What really impressed me with him is that he has all this knowledge, all this personal life experience… he’s probably the most interesting man in the world.”

John, often referred to as “The Great Gatsby” due to his larger-than-life persona, had a profound understanding of commodity trading and global markets, especially through his role in helping to launch the Dubai Gold and Commodities Exchange.

For Michael, learning from someone with such a rich blend of business acumen and personal integrity was invaluable.

“He handled everything with such grace… despite all of his accomplishments, he was still so humble,” Michael said.

This mentorship not only shaped Michael’s approach to business but also deepened his passion for international trade and global markets.

Among his many accomplishments, Michael is particularly proud of establishing the first international distribution hub as an NOV distributor in Dubai.

“I performed all the market intelligence prior to entering the market, found the lowest-cost ports, staffed the company, and adapted the policies to local cultural and legal requirements.”

This project not only positioned his company as a master stocking distributor for the Eastern Hemisphere but also highlighted his strategic expertise in global business development.

Michael also sites his work with the Canadian Trade Commissioner’s office and EDC as motivating factors in his career development. These organizations helped him navigate international markets, meet high-profile players, and secure contracts with drilling contractors in regions like Argentina and Cuba.

Michael’s experience working with these agencies further cemented his passion for international trade and gave him a profound respect for the role government organizations can play in supporting businesses.

Looking to the future

Michael believes his CITP designation will continue to play a pivotal role in his future career.

“The CITP designation will open many doors to opportunities that I may not have otherwise been offered.”

As he continues to grow Block 4 Oilfield and explore new global markets, Michael remains committed to leveraging his expertise and credentials to drive success. Whether it’s through acquisitions, mergers, or strategic partnerships, his future looks bright, fueled by the knowledge and tools he’s gained through the FITTskills program and the CITP designation.

Want to learn more about the Certified International Trade Professional (CITP®|FIBP®) designation? See why it’s the world’s most recognized designation for competency and credibility in global business.

Adding credibility to experience and expertise with the CITP designation

For those considering taking their business into an international market, Michael has one key piece of advice:

“Understand the tools related to international trade finance. From Letters of Credit to Export Credit Agencies, each tool is extremely helpful to hedge a growth strategy and to best position oneself in a given market.”

With his deep experience, global perspective, and the CITP designation, Michael Whitmarsh is not just a leader in the oilfield industry — he’s a prime example of how education and professional certification can propel a career to international heights.

As an example, Singapore and Malaysia are bordering countries and members of ASEAN, but very different in social, legal, economic, political and technology contexts. Simply put, the markets are unified under the ASEAN framework, but highly fragmented and unique, and as such each market needs different entry and development treatment.

Competition should be reviewed and assessed during the trade readiness stage.

Price decisions must be made based on factual market intelligence and a logical thought process which takes into account customer demand (price elasticity), total addressable market, cost function, logistics, and competitors.

A SWOT analysis (figure 1) should be completed, keeping in mind that you will most likely be facing local and imported brands. Without exceptions all competitors and alternatives must be reviewed and analyzed.

High-end elite and luxury brands command a price premium in most global markets. However, as a new entrant you may not be able to leverage your home market brand equity. In that case, you will need to build brand equity to achieve that premium price.

There are 4 stages to reaching that premium price level:

1. establishing brand awareness
2. building brand acceptance
3. attaining brand preference
4. achieving the “holy grail of branding”, brand insistence

All of this this takes time and investment.

There is a longer-term hierarchal approach to developing an international or overseas market. This approach begins with exporting your product to your new market – entering it for the first time. When the business builds traction and gains momentum, a local sales and marketing support office and inventory can be established.

Investing in local production assets eliminates value-detractor costs like shipping, handling fees, and duties (depending on relevant trade agreements). Moreover, local production could serve as an export platform to neighbouring countries as you expand geographically to continue growth.

In this hierarchical approach a company may accept lower profits to fast-track the initial stages, with the intention of maximizing profitability during the growth stage after investing in local production. This is often referred to as the “market entry fee”.

Not many companies will consider foreign direct investment (FDI) without first establishing a sustainable and scalable business model.

Again, it’s important to be patient. Establishing a foundation for a business could take three to five years.

5 pricing strategies to consider

Price positioning options should be evaluated, and a pricing strategy selected during the trade readiness – situational analysis and strategic planning stage.

There are many different price positioning options available, depending on:

• route to customers
• layers of distribution – retail or wholesale
• business-to-business (B2B)
• business-to-consumers (B2C)
• type or nature of the business

As an example, if you’re selling through a distribution network, the business model is business-to-business-to-consumer (B2B2C).

Multiple layers of distribution can be effective at reaching large or remote target customer segments. However, additional layers increase consumer cost, and it’s crucial to be mindful of this when selecting a pricing strategy.

There are many pricing and price configuration strategies to consider, and a business needs to decide the most effective strategy to achieve financial and non-financial objectives for each market and segment.

Selling directly to consumers or through a distribution network will also influence the price strategy choice. Most businesses entering the Southeast Asia or Indo-pacific region will sell through a distribution or channel partner network.

The most popular and relevant pricing strategies are premium pricing, penetration pricing, competitive pricing, cost-plus pricing, and value-based pricing.

1. Premium pricing

Premium pricing sets a high price for products or services reflecting superior quality, customer experience, and exclusivity. This strategy works well in the luxury goods segment where products are highly differentiated and unique with strong consumer brand affinity.

However, in most emerging and developing markets there are three distinct customer segments – premium, mid-level, and economy (figure 2).

The premium segment may be profitable, but it may also be the smallest customer segment with limited growth potential. Product and price positioning must be organizationally aligned with target markets and customer segments.

2. Penetration pricing

Penetration pricing is a strategy that sets the price lower than marketplace pricing to more quickly gain market-share. The idea is that lower prices will attract a larger number of customers. The profitability focus is higher-volume lower margin percentage, but higher margin dollars based on volume.

As an example – $1m sales at 50% GM = $500k margin dollars. $3m sales at 40% GM = $1.2m margin dollars. Ten percentage points lower, but 140% or $700k additional margin dollars.

The premise is as market share is built and brand equity develops and customer loyalty is gained, you can gradually increase your prices.

This strategy can be highly effective at penetrating intensely competitive markets where lowest price prevails and is the determining factor in deciding brands and suppliers.

However, it will be extremely challenging at any time to increase prices without alienating customers, especially if you’re the only one increasing. On top of that, competition will retaliate and it becomes a race to the bottom, and a race that’s unwinnable – in most cases local manufacturers will have lower cost structures.

3. Competitive pricing

Competitive pricing is a strategy that prices products similar to brands already available in the market. You should also review products that are dissimilar that could be used as an alternative.

As an example, a nut and bolt and a rivet, both are mechanical fasteners similar in functionality but different. The rivet might be more expensive but it’s faster to install and offers an overall consumer cost-savings (the value proposition).

Alternatively, you could price your products slightly lower as you would with a penetration pricing strategy, but Southeast Asia or Indo-pacific markets are intensely competitive, and competitors will respond aggressively.

4. Cost-plus pricing

In my opinion, this is the most overused and simplistic method to establish pricing. This strategy factors in all contributing fixed and variable costs to establish a selling price to distribution with a fixed margin.

In most cases incoterms are FCA (free carrier), channel partners and customers arrange to have loaded containers collected from the manufacturer, trucked to rail yard, railed to port, and port to export destination.

The strategy is simple and generally applies to all products across all regions, markets and segments. The downside to this strategy is that it doesn’t take the consumer or market price into consideration. The strategy also excludes regard for channel partner margin, and if your product line is not profitable and salable, channel partners will soon lose interest.

5. Value-based pricing

Value-based pricing is grounded on target customers’ perception of value. I have found this strategy to be most effective in determining the right price to drive revenues and maximize profitability for companies and their channel partners.

The price point is determined using a demand curve that illustrates the relationship between demand at different price points. Corelate that data with VOC (voice of customer) to determine the threshold of affordability – in essence what the target customers are willing to pay for the products or services, considering the added value being delivered.

Figure 3 compares cost-plus and value-based pricing strategies.

The difference is determining the market price first as the threshold of affordability, then working backwards. Subtract distribution margin,  duties (if applicable) and logistics cost. That will determine the distribution selling price or distribution cost of goods.

The difference in profit between the two is cost-plus delivers 50% margin, and value-based 42%. As explained in the penetrating pricing section, you may need to accept a lower margin to increase demand.

The goal when determining a pricing strategy is to rapidly develop market share and drive profitable revenues for the business and any channel partners while considering the threshold of market and customer affordability.

As mentioned, this might take some experimenting before you get it right, that’s to be expected. Take the time to get it right, pay close attention to competitors and fully understand their key differentiators and value propositions.

Let research and data and a logical thought process drive your product and pricing decisions.

Meetali’s career in international trade began in 2015 when she transitioned from a global consulting firm in the private sector to the UK’s Department for Business and Trade in the public sector. In this role, she assisted British companies to enter and expand their operations in India, focusing on sectors like Financial Services and Energy.

“It was a complete shift from the private sector to an exciting world of international trade, export promotion, and market development where I generated businesses opportunities for British companies. I provided strategic advice and executed sector-specific trade promotion initiatives to help clients access opportunities, establish strategic alliances in the market, and grow their business in India.”

Meetali shares an example of her success: she helped a single-brand retailer get their FDI application approved to enter the Indian market, set up their brick-and-mortar stores, and sell their products. Over the next few years, the company invested more capital, generated strong sales revenue, created jobs, and went on to become a popular brand.

“I reflect on the role I played when I see their popularity in India. Over time, they established themselves as leaders in their product segment.”

“One of my proudest professional accomplishments was to contribute to this business’ journey in the initial phase and witness their growth trajectory.”

Contributing to UK-India trade relations post-Brexit

The 2016 Brexit marked a significant turning point for the UK and its trading partners. This transition necessitated a fresh approach to trade policies and agreements with countries like India. Meetali found new opportunities to leverage her expertise in the evolving landscape and progressed in her role, moving into market access and trade policy and working on government-to-government dialogues to champion equitable conditions for British businesses in India.

“I undertook policy advocacy work, engaged closely with the Government of India on behalf of the British government to advance the market access agenda for British companies. I worked as a core member of the policy team to create a level playing field for British businesses operating in the Indian market and resolved specific barriers related to ‘ease of doing business’ during my tenure.”

During that period, the UK began developing its independent trade policy with various countries, including India, which required extensive groundwork. This helped Meetali gain valuable experience and a deep understanding of the markets and governmental functions in both India and the UK.

Eager to expand her knowledge, Meetali chose to continue her work with other foreign governments, bringing her unique perspective to new challenges and building a career in the international trade arena. 

Helping Canadian businesses expand in global markets

In 2022, she joined the Trade Commissioner Service with Global Affairs Canada, leading the infrastructure sector. In this role, she helped Canadian companies do business in India and was one of the youngest trade commissioners in Global Affairs Canada’s overseas network.

“I helped clients prepare for the overseas market. Factors such as competitor intelligence, regulatory compliance, market knowledge, and understanding customer preferences were crucial. In certain sectors, the sales cycle can be long and requires commitment and perseverance from business owners.”

“Clients should be prepared to invest time in understanding the opportunity landscape, establishing strong partnerships, and building a strong network. Success does not come overnight.”

Shifting markets, same client focus

While working with the Canadian Trade Commissioner Service from the New Delhi office, Meetali was inspired to make her biggest move yet and immigrate to Canada.

In 2023, Meetali settled in Toronto, Canada, where she found an excellent opportunity to tap into her skills as Market Advisor – Digital Tech for Enterprise Ireland, the Irish Government agency responsible for supporting Irish businesses in global markets. In this role, she leads the digital technologies portfolio of clients in the cyber security and digital entertainment sectors in Canada, helping Irish innovators find meaningful partnerships with Canadian organizations.

Recently, Meetali attended the Toronto International Film Festival (TIFF) to support an Irish client company in her portfolio. Later this month she will lead a delegation of Irish animation companies for a market study visit to Canada promoting co-production opportunities between Canadian and Irish studios developing their own IP.

Throughout her career, Meetali has found that keeping client interests as the primary focus is crucial in international trade. This might seem like straightforward good business sense, but it can be more challenging than it appears. Meetali explains how she applies this philosophy in her current role with Enterprise Ireland.

“I believe the essence of an international trade advisor’s role is to provide bespoke advice to clients keeping their best interest and potential success in mind.”

“For instance, Canada often serves as a cost-effective gateway into the North American market, offering ample opportunities to introduce new innovations. This environment helps companies gain a technical edge in a rapidly evolving world.”

Professional development and well-earned validation of expertise

Meetali’s keen interest in market entry strategy and the various options available to companies looking at international expansion is evident in her career. As she progressed through the six courses in the FITTskills program, she particularly enjoyed the International Market Entry Strategies course.

“My favourite course was International Market Entry Strategies. It was designed in a way that was very engaging. The structure of the course modules and sub-topics was quite interesting. Discussing different routes to market, types of investments, or options like greenfield or brownfield, direct or indirect channels, joint ventures, mergers, or acquisitions, has enhanced my ability to provide strategic advice to our Irish companies weighing their options in market entry.”

“I have applied the concepts I learned [in the International Market Entry Strategies course] in my practical day-to-day job, which is why I find them so relevant and interesting.”

Upon successfully completing the FITTskills program and earning her FITT Diploma in International Trade, Meetali was encouraged to validate her professional development by applying for the Certified International Trade Professional (CITP) designation.

Looking forward, Meetali wants to continue to grow her knowledge of the Canadian market and help her international clients find success there through her guidance and strategic advice on the opportunities available in that market.

From the very start, Meetali Kashyap has brought her intelligence and capacity to learn and grow in new markets into her work. In this she has met with resounding success, both in her personal professional advancement and for her clients and their businesses. We are proud to welcome her to the CITP community.

“I value the industry-wide recognition the designation offers, which will enhance my career progression opportunities. Earning the CITP has established that I am an experienced international trade professional.”

International customs have to deal with an increasingly complex network of international movement—from shipping to travel customs—without incurring any new security risks. This is a lot for any system to handle. But without effective technology to help, customs compliance can be a nightmare.

Fortunately, there’s a potential solution: implementing AI in customs processes.

Algorithmic processes for scanning and determining HS codes, handling eCommerce customs declaration, and international trade facilitation are potential game changers.

If AI is helping the customs industry streamline a process like determining HS codes, for example, it can reduce processing time and human error. The result: more accuracy, faster cross-border movement, and smoother world trade.

But how are customs officials using AI, and is it having an impact? Let’s start with one of the most vexing challenges for customs officials: HS codes.

Streamlining HS classification with AI

Harmonized System codes are vital for classifying goods for customs. They identify product categories, help countries accurately apply their tariffs, and track trade data. However, they also add potential wrenches to the system, which can make customs processing more complicated.

The sheer volume and complexity of these products can be difficult to deal with. Yet according to Aleksei Bondarenko, Ph.D., an international trade consultant, implementing AI can drastically simplify HS classification and processing.

With AI assistance, customs officials could potentially reduce the time they spend on determining HS codes by up to 80%.

If possible, this would help eliminate customs logjams and make customs much easier to handle for large-scale trade.

It’s also a benefit for e-commerce. An e-commerce company might ship thousands of products worldwide. In many cases, businesses assign HS codes themselves and are responsible for doing so accurately. Repeating this process manually can be a hassle for companies that could otherwise spend time thinking about fulfillment and getting their orders shipped on time.

Tools like Traide and eClear offer AI-enabled support for identifying products for international shipping, taxation, and more. With the right offering, AI can help lower the barrier to entry for up-and-coming e-commerce businesses. 

AI in customs declarations and documents

If every country had similar rules, customs declarations wouldn’t be a problem. But it’s a big world. And every country has its own set of rules. 

A lot of elements can impact how shipping works between multiple countries. A country might set especially stringent customs laws, requiring multiple parties to approve certain types of products. Another country might have higher tariffs on specific industries or products from particular countries, increasing the financial burden on anyone doing the importing/exporting. And if there’s a mistake with any of the above, it can throw a wrench into just about any customs processing system and create all sorts of headaches

But there’s hope.

“AI can streamline the preparation of customs documents, particularly customs declarations,” notes Aleksei Bondarenko.

“AI systems autonomously extract necessary information from provided documents such as invoices, bills of lading, and certificates, as well as from ERP systems, and automatically draft the declarations.”

In other words, AI cuts the busywork out of customs declarations and documents—cumbersome, error-prone work that might be full of difficulties if handled the traditional way. 

AI is also comprehensive. It doesn’t get tired and its vision doesn’t get blurry when it’s close to the end of the day. For example, AI systems might receive different styles of documents related to customs processes—invoices, bills of lading, certificates of origin. Too many documents from too many sources might overwhelm someone who’s looking forward to lunch. But with algorithms and trained models, AI can quickly disseminate disparate information and consolidate it for easier processing.

Information extraction works the same way. Thanks to the sophistication of modern AI, it’s capable of scanning documents and extracting relevant data on its own. Product descriptions, quantities, HS codes—AI can handle them all. And it’s capable of detecting what type of information it might be looking at in a specific context. 

AI models can then structure this data into an organized, preformatted output, making it easier for customs officials to process. This streamlines their ability to work, saves time, and ultimately, helps ensure more accuracy. 

One potential output: customs declarations. Professionals can look over customs declarations for accuracy, of course—and they should. But the drafting of the declarations can sometimes be tedious work. And it’s work that AI can easily fill. Even with some time spent reviewing the facts of the customs declarations, the overall time spent creating these declarations would be a fraction of the time it took to create and edit them.

Services like icustoms and Descartes Systems Group are helping companies fill in the difficulties of customs processes with machine-based support. 

Using AI to recognize patterns and analyze risk

If facilitating trade were as easy as stamping the receipts, there wouldn’t be any risks involved. But customs authorities also have to balance their facilitation of quick, seamless trade with the risks. Smuggling, fraud, and customs compliance issues make it difficult to achieve faster customs processing.

But AI does have some promising solutions. It can analyze a vast amount of historical data to look for patterns. Once it has those patterns, it can even predict potential risks with accuracy.

AI won’t wipe out the need for human supervisors—but it can flag high-risk shipments based on factors like product types, compliance issues throughout the product’s commercial history, and more.

The result is that customs officials achieve a more thorough grasp of everything that’s moving underneath them.

Automating regulatory verification

Finally, trade regulations are there for a reason. Ensuring commerce meets the needs of these regulations can get complex, however. Customs officials have to verify their shipments adhere to the laws and standards of the country that enforces them. The more countries get involved, the more complex compliance inspection becomes—which slows down commerce.

AI can help with compliance inspections by automating regulatory verifications. For example, an AI tool might cross-reference shipment data with any applicable regulations. If it spots a discrepancy, it can flag it for supervisors to review.

Everything from accurate HS codes to proper documentation can fall under the watchful eye of AI.

Integrating AI into customs processes can be transformative. Global trade is increasingly complex. New regulations pass all the time. Situations change, nations modify trade agreements, and new products enter the marketplace. Thanks to the speed of comprehensive reviews of AI, that doesn’t have to be a problem.

In the future, customs processing will likely be a hybrid of AI-enabled tools and human supervisors double-checking the work. AI won’t replace humans, but it will make them faster—and that could make customs processing a much more efficient process across multiple borders.

Never before have their been more tools and options for those applying for a job – or finding job candidates. But as employers and potential employees connect easily over the internet, the hiring process can be difficult from both ends.

Job candidates can have a hard time standing out among a seemingly endless pool. Hiring managers can have a hard time weeding through countless applications to determine who would truly be the best fit for the company.

The ever-evolving hybrid/return to office/remote environment has created additional challenges for both employees and employers. Plus, especially in the field of international trade, disruptions to supply chains and other aspects of business have required companies to be agile and responsive.

For many businesses, that has brought the need for new skillsets or areas of expertise from employees. As businesses look to fill those needs internally and externally, professionals in international trade have needed to acquire or market their skills for the changing business landscape.

That’s where digital credentialing comes in. More and more, professionals are seeking out training that will grow their skills while demonstrating their proficiencies to potential employers.

Digital badges, offered by companies such as Credly, are another way to recognize professionals that have met educational or professional experience benchmarks. Digital badges are easily shareable by job candidates and simple to verify for potential employers.

Standing out from the crowd: Digital badging credentials for professionals

By now, most people are familiar with the disconnect in employment: Professionals often lament how hard it is to find a job, while businesses claim they have plenty of openings but lack qualified candidates. Many experts say this disconnect comes from the so-called “skills gap”.

Up to 80% of employers say young professionals lack the skills and experience they need to succeed in the workplace.

This skills gap can be especially pronounced in fields such as international business and trade. Professionals in the field know that there are many areas of specialization, and college courses often offer a broader understanding of the field as a whole.

More targeted digital badges can also help trade professionals better communicate the scope of their education and skills with potential employers.

Taking the time to earn and share digital badges can pay off for professionals at any stage of their career.

One recent survey of 400,000 people worldwide found that 76 percent of professionals who earned a new certification saw a salary increase or promotion.

FITT has seen this play out with its own CITP certification: According to a FITT CITP salary survey, CITP®|FIBP®s in Canada on average earn CAD $52,000 more than the median salary.

Building the right team: The benefits of digital badging credentials for businesses

From hiring to retaining staff, digital badges also provides a major benefit to businesses. Businesses are increasingly moving to skills-based hiring. Rather than looking for educational or experience-based pre-requisites that a broad range of candidates might meet, companies are searching for a specific set of skills that will meet the company’s operational need or growth goals.

Digital badges allow hiring managers to quickly see how a candidate fits the company’s needs and to see what special skills the employee brings that  fill knowledge or skill gaps within the company.

Digital badges can also add an objectivity to the hiring process by allowing hiring managers to easily compare candidates’ education and experience.

“Employers must hire qualified personnel in any discipline to ensure that they get the most value from their employees. Hiring certified employees allows companies to get their employees working in what’s important faster,” said Emiliano Introcaso, CITP, Knowledge Product Manager for Export Development Canada and supply chain management professor at Sheridan and Seneca colleges.

In addition to signaling key skills to employers, digital badges also communicate something important about the type of employee the candidate will be. Professional certifications generally indicate that a candidate is willing to learn and grow their skills. That growth mindset can pay off for companies as they continue to grow and adapt to new markets and new market developments.

Connecting employees to skills-building opportunities allow companies to develop their existing talent to meet their future needs. Not only does that benefit the company, but it allows employees to grow with the company.

This can help with retention because employees can continue to advance their careers, and educational opportunities are often seen as a major benefit to motivated employees.

Once those employees have developed additional skills, they add value to the company and reduce costs by building those skill sets in-house, removing the need to bring in additional employees or find outside expertise.

“Bottom line – in-house experts’ salaries are less costly than third-party consultants. Then, in-house experts train internal employees to at least level up,” said Audrey Ross, CITP, Import & Export Compliance Manager at Orchard Custom Beauty.

“The more people thinking globally, the better growth you will have.”

Statistics demonstrate the value of investing in upskilling employees for business. Companies that invest $1,500 or more annually per employee for professional development report an average of 24%higher profit margins than companies who don’t make the investment.

Digital badging credentials for international trade

FITT has long met the demand for professional education and credentialing in international trade, to help employees and employers develop the key skills needed to expand to new markets and adapt to the ever-changing international business climate.

To date, more than 37,000 professionals around the globe have taken advantage of FITT’s professional training and/or earned FITT credentials.

To keep up with the changing demands of the increasingly digital employment environment, FITT is offering digital badges that can be easily shared by international trade professionals and verified by the companies looking to hire those with specific skills in international business.

FITT’s digital badges will serve as a digital representation of meeting the requirements of FITT’s training, certificate, diploma and CITP designation.

It’s not a rhetorical question. At least not if you’re talking about a specific form of fog: fogponics technology, which increases water efficiency when growing plants. The technology comes from NASA, originally part of a project to grow food on the International Space Station. And at Plantaform, an Agritech startup employing fogponic technology for the at-home gardener, fog is a game-changer.

Plantaform, a cleantech startup based in Gatineau, Quebec, Canada, is the brainchild of co-founders Alberto Aguilar, Kiwa Lang, and Georges Hamoush. While reading an article about fogponics during his studies in industrial design at university, Lang immediately recognized how water-efficient it might make a home garden.

He became obsessed.

“He made [fogponics] his entire thesis,” reports Aguilar, who first met Kiwa while attending high school together in Dubai.

“When he was initially developing this project we were living in two different continents. But Kiwa knew I had an entrepreneurial background and I used to work in a startup which I co-founded—working on bacteria mutation for cannabis—and he reached out asking me if we could start a business with this technology.”

With Canada importing 90% of its leafy greens from Mexico and the U.S.—and the UAE importing some 98% of its leafy greens from neighboring countries—it seemed like a revolutionary technology for an underreported problem.

And it all comes back to a simple idea:

The Nespresso machine.

The product: Understanding Plantaform

Plantaform is an indoor gardening system similar to a Nespresso machine. With a touch, you can grow up to 15 different varieties of plants—the same way you might brew a single cup of coffee.

Plantaform works by inserting capsules into the system, adding some water, and then clicking a button. The plants can be ready to harvest as soon as four weeks later. What’s revolutionary here is “fogponics,” the new technology pioneered by NASA.

This has become the most water-efficient technology in the world—using a suspension of nutrient-laden water to deliver the oxygen and nourishment each plant needs at a root level.

The concept is similar to aeroponics, except instead of using mist action to deliver these nutrients, the sustenance is delivered through a steady fog.

“I found the concept fascinating,” says Aguilar of the early prototypes for Plantaform. “I never saw a product like it. It looked very futuristic.”

Plantaform now offers a variety of plant pods. Herbs. Basil. Mint. Leafy greens and edible flowers. This diversity gives Plantaform’s users fresh, organic produce year-round, complementing their home gardens and reducing food waste.

“Food waste is a major issue,” Alberto explains. “We aim to minimize this by allowing people to grow what they need and avoid the common problem of produce spoiling before it’s used.”

With a revolutionary way of growing greens indoors and a prototype in hand, they decided to start Plantaform. By October 2019, they spent every day doing research on the problem of unsustainable or inefficient plant cultivation.

“We saw a huge problem that we could address with this product,” says Aguilar. “And that problem was sustainability.”

Understanding international business through the carbon footprint lens

Leafy greens are big business. With Canada importing 90% of its leafy greens and water-poor countries like the UAE relying even more heavily on imports, the transportation system is under increasing strain to deliver plants to the people who need them. This is a problem. Greens are being shipped internationally via carbon-intensive trucks. Fogponics could make leafy greens a cinch to cultivate at home.

According to Aguilar, self-sustainability was one of the key reasons for Plantaform. But shipping their product across borders proved to be an unexpected obstacle.

“We’ve faced a lot of challenges when exporting an agritech product and consumables.”

Exporting produce—especially seeds—is complicated. “Seeds are a very delicate matter when exporting. And so our first export was actually to the U.S.—and that device did not make it through the border.”

The problem? Regulatory load. Plantaform did not have its phytosanitary certification, which meant the products were sent back. And when the products were returned, they didn’t arrive in great condition.

“I’m telling you,” says Aguilar, “It was destroyed.” Customs had reportedly opened the box and turned the device upside down, resulting in scratches everywhere and a device that was no longer salvageable.

The U.S. wasn’t the only problem. Plantaform experienced the same problem on a shipment to Italy, having sent a custom device to a new investor and partner, Formula One driver Yuki Tsunoda. The product was bounced back at the border. The issue? Once again: certifications.

If Plantaform was going to succeed, it needed to start creating an export plan—and dealing with the certification processes.

Certifiable: Blazing Plantaform’s path through international trade

Aguilar and the other co-founders knew that the key to getting Plantaform’s products to their international customers was to obtain the proper certifications. And they’ve found some strategies that have worked:

• Shipping in bulk. Plantaform knows that if its company is going to succeed, it’s going to have to achieve scale. And while one or two machines might have gotten across borders at the prototype stage, larger orders are more likely to raise red flags. “One of the ways that we’ve addressed this challenge has been shipping [products] in bulk,” reports Aguilar. This makes it easier to obtain one phytosanitary certification for each batch. According to Aguilar, that strategy is currently in place for Plantaform’s U.S. expansion.
• Developing an international presence. Plantaform has also expanded its global footprint. They recently registered a new corporation in Florida and are shipping “loads” of new inventory to a 3PL warehouse in Vermont. Once the products are in Vermont, it’s much easier to ship locally within the U.S. without concerns over any new certification issues.
• Add-your-own-seeds. The original device came with its own seeds, which made it more convenient. This was essential since the Plantaform systems are capable of adapting their cultivar conditions to each seed. But now Plantaform is experimenting with an add-your-own-seeds approach. The device can use machine learning (ML) to learn what’s growing, adapt to its needs, and adjust the cultivar conditions independently. It’s still a hands-off approach for the consumer. And since this system doesn’t require specific seeds to ship with the devices, there will be fewer shipping rules to worry about.
• Training. When Plantaform started, they weren’t aware of FITT, which offers training for handling the difficult logistics of dealing with customs. Aguilar has dubbed their learning process one of “trial and error,” with continuous adaptations as they learn the risks inherent in global trade. They’re also being proactive with how they learn, taking advantage of the Feasibility of International Trade course and the Creating an Export Plan course to be more systematic and avoid costly pitfalls

It’s been a long process of learning and adaptation for Plantaform. The company has learned that compelling technology isn’t always enough to make business success happen at scale. But thanks to these innovations, the future for fogponics is looking clear.

It’s a global market, and Plantaform’s seven-person team based in Gatineau, Quebec, has big ambitions. Plantaform manufactures its product in a factory in Montreal, so it’s fully Canadian and Quebec-made.

It’s a point of pride for the team—but it has led to some challenges. One of the appeals of creating a fogponic system for growing greens at home is that it can separate plant lovers from an intensive global supply chain. But to extend its reach to those customers—including those who need it the most—Plantaform has had to embrace a new challenge. They have to learn how to extend products and services to a global market.

Helping the world deal with the sustainability crisis

Pick up a piece of fruit at the store. The sticker likely won’t read “locally grown.” In fact, chances are good that the fruit came from another side of the planet.

“Every piece of produce that you buy in the supermarket has traveled an average of 2,400 kilometers just to get to your door,”

And that’s a major problem. It’s hard to get serious about environmental concerns like carbon dioxide removal when something as simple as purchasing an orange at the store may require ridiculous amounts of carbon just to make the logistics work. With geopolitical concerns weighing on the feasibility of international trade in the long term, the world is in dire need of sustainable solutions for cultivating fresh produce.

Plantaform’s goal is to make at-home produce more convenient and accessible—like starting up a Nespresso pod. For starters, growing produce at home reduces greenhouse gas emissions. Rather than relying on an extensive trade network that brings produce from one area of the world to another, people can enjoy fresh, organic produce year-round. If users are growing their greens at home, there’s also less food waste.

The idea is simple: put more control in the consumer’s hands. “We can try to buy organic products,” says Aguilar, “but how do we know if it’s truly organic? How many hands have touched it? I would challenge anyone to buy a bunch of cilantro or basil from the store, put it in water, and shake it up a bit. You’ll be amazed at all of the dirt that comes out of it—not to mention the microbes and chemicals from pesticides that you can’t see. That’s all stuff that you put in your body.”

It’s a sad truth about our modern agriculture. And while pesticide residue or dirt might not kill the consumer overnight, it’s certainly not helping. The industrial practices that lead to this kind of cultivation can lead to soil degradation at mass scales.

With Fogponics, there’s no need for cultivating soil, and there’s no need to continue to buy produce from companies who aren’t committed to a sustainable future.

Funding the products that change how we live—that just might stand a chance.

And all that R&D that goes into developing and improving their technology goes to good use, whether it makes it into their final products or not.

“Every Wednesday, we donate all the produce from our R&D lab to two incredible local organizations, the CRC Rideau-Rockcliffe CRC and Ottawa Good Food Box, both of which are fighting to make a difference in our community. At Plantaform, we’ve committed to donating hundreds of pounds of freshly harvested produce every year,” explains Alberto.

Finding inspiration in new technology—and new solutions

Planting greens in your own home is a small-scale solution. But Plantaform’s ambitions are at scale.

Aguilar points to a company he admires, Bowery and Aerofarms, as inspiration. “They’re incredible,” says Aguilar. “They’re in every corner of the world.”

As one of the largest vertical farming companies in the world, Bowery has a global presence that Plantaform would love to emulate. Aerofarms has partnered with companies like Emirates Airlines, growing produce for the airline’s flights straight from Aerofarms produce. Aguilar mentions that the goal isn’t to feed a thousand. The idea is to give people such at-home growing capabilities that Plantaform’s indoor gardens eventually feed millions of people.

Changing the world one plant at a time: People are beginning to notice

If you’ve seen Plantaform before, it may have been from Startup Canada. This national, grassroots organization aims to empower entrepreneurs across the country—providing resources like mentorship and networking opportunities to companies with great ideas who might not have the resources to grow themselves.

Plantaform pitched during the Startup Global program in 2022, performing extremely well—and even making it to the finale. Aguilar reports that Startup Canada has been following the Plantaform journey ever since. In fact, Startup Canada reached out to Plantaform and asked them to be part of a panel to help support other entrepreneurs in the agritech field as part of a  Sustainability Industry Advisor Circle.

Plantaform has already received considerable attention for its product. It was featured as “Startup of the Year” by Faces Magazine, won the 2023 “Next Big Thing” award at the Best of Ottawa Business Awards, and “Tech Smallbiz of the Year” by Zenbooks. It earned the aforementioned semi-finalist status at Startup Global and additionally won “Ottawa’s Green Initiative of the Year” from Faces Magazine.

Plantaform’s journey from a university thesis to a global player in indoor gardening shows just how much is changing around the world. Innovation, adaptability, and understanding international markets are going to be more important than ever as the 21st century unfolds. With a clear vision for the future and a commitment to sustainability, Plantaform is poised to make a lasting impact on how we grow and consume our food.

Without adequate CO2 reduction and removal techniques, Earth is bound to become dangerous and uninhabitable in certain areas. Even now, impacts like extreme weather, widespread extinction, and social, economic, and political breakdown are already starting to happen and are expected to worsen.

For these reasons, we need trailblazing companies and professionals to step in and affect change on a global scale.

Startup Carbon Lock Tech, helmed by Kevin Danner, has answered the call and is working to develop the technologies to help slow down and reverse the negative outcomes associated with CO2 accumulation.

In this company profile, we will take a deep dive into Carbon Lock Tech’s journey from start-up to the present. We’ll cover the founding story, the mission, values, and mechanisms that drive Carbon Lock, their international expansion, the science behind carbon dioxide removal, and much more.

The Opportunity Hidden in Organic Waste

At its core, Carbon Lock Tech is a cleantech startup that uses an innovative, nature-based solution for removing carbon from the atmosphere and locking it away. But that’s just the tip of the iceberg.

Organic waste, fossil fuel combustion, deforestation, and livestock farming result in an excess of carbon in the atmosphere.

Why is this important? Think about the carbon cycle. Plants absorb carbon dioxide and expel oxygen. The animals then take in that oxygen and release carbon dioxide. This cycle has been self-balancing for hundreds of thousands or years, but that’s no longer the case as greater and greater amounts of carbon dioxide are being added to the atmosphere each year.

Fortunately, a good portion of that carbon is absorbed through photosynthesis and is stored in plants’ leaves, branches, seeds, fruits, and roots. That same carbon then circulates through our economy in the form of products and consumables like food, textiles, clothing, and other organic materials.

But when we are done using these materials, much of it ends up decaying in a landfill as waste. As it decomposes, methane (which is 25x more potent than carbon), is released into the atmosphere. Methane may also be released when plants die.

Using a patented pyrolytic reactor system, Carbon Lock Tech intercepts this waste carbon and transforms it into biocarbon, which reduces methane formation. This biocarbon can then be used as a soil amendment, incorporated into cement-based materials, or used for reclamation projects. In these applications, the biocarbon works to lock away carbon from the atmosphere and reduce downstream emissions.

Carbon Lock leverages a method that the Canadian government recognizes as a viable solution in “Capturing the Opportunity: A Carbon Management Strategy for Canada.” Per the strategy, proper carbon management involves “CDR (carbon dioxide reduction) approaches that remove CO2 from the atmosphere and store it durably in natural carbon reservoirs, such as rock formations, soils, plants, oceans, or long-lived products.”

The goal is to help the world reach net zero by 2050 and avert the worst of the climate crisis.

The journey from initial concept to international venture

Carbon Lock Tech founder and CEO Kevin Danner first became engaged with the issue of climate change in the late 1980s while taking a course on international efforts to address the ozone layer issue. He followed up with additional studies into evidence-based decision making before pursuing a career in government. Kevin worked as a risk manager and policy analyst for the Department of Natural Resources Canada and the Department of Fisheries and Oceans Canada and then as a policy advisor for the Manitoba government on the Made-in-Manitoba Climate and Green Plan.

Throughout his tenure, he has focused on climate change and carbon management. But after becoming frustrated with the slow progress toward achieving net-zero and Paris climate commitments, he needed to make a change. He then left the government sector, co-founded Carbon Lock Tech, and began to develop systems and technologies for converting organic matter into stable biocarbon and sequestering it away for good.

The idea of focusing on biocarbon (sometimes called “biochar”) that eventually grew into Carbon Lock Tech started with the UN Climate Change Conference COP21 and the Paris Agreement. While watching the conference, he heard the French AG minister mention “biochar.” Soon after, he began researching the topic further to find out more about the carbon offsetting made possible simply by putting more carbon in the soil.

Testing Process

Danner then bought some biochar for home use, successfully grew some plants, and was approached by a curious neighbour, whose uncles had designed and built a simple backyard kiln that could make biochar. “I still have it [the machine] at the farm. Do you want it?” the neighbour offered.

Ramping Up

Danner accepted the machine and, with co-founder Terry Gray, began making biochar in his backyard. They eventually brought on investors and hired a few engineers under the ECO Canada program and the NRC Industrial Research Assistance Program. Together the team designed and built a continuous model, secured a patent, and completed a pilot project. Through grant funding, they were able to hire more engineers.

Stepping into international expansion

Today, Carbon Lock Tech is advancing its technology and work with mining companies and concrete companies to explore sustainable applications for “locking” the carbon away. They are also searching for commercial partners, collaborating with international companies, and looking to participate in the carbon dioxide removal credit market. In fact, the company is in talks with a Silicon Valley carbon dioxide removal organization that’s considering signing a CDR credit agreement.

This would be the very first agreement, and the team expects to see more and more of these over time.

This business venture hasn’t gone unnoticed. Carbon Lock Tech won the Startup Canada Pitch event earlier this year, and are set to compete live against nine other finalists for $70,000 this October.

Current challenges and goals for the future

Carbon Lock Tech is an international startup creating technologies and carbon removal services for a global market. So, it’s crucial to get a good handle on navigating global trading systems, complex business landscapes, and diverse cultures. In addition to that, there are other challenges to consider.

Building a cleantech startup isn’t easy by a long shot, and it takes a considerable amount of time and sustained hard work to take a venture from a concept to a profitable company. But the biggest challenges arise when one or more of the following factors is missing:

• Access to smart, patient capital.
• Support from funding programs and stable government policies.
• Market demand from end users.

As for the goals going forward, it’s all about scale and impact.

“From here, we are looking to scale this to the megaton scale. And then, who knows, eventually the gigaton scale, which is where the world has to get if we want to make it to net zero by 2050.”

As you can see, the goal is to make substantial change on a global scale.

A primer on Carbon Dioxide Removal (CDR) credits and how they work

Carbon dioxide removal (CDR) credits are service exports where a company sells the service of carbon removal to firms in other companies or governments around the world. These buyers seek to purchase such credits in order to offset their own emissions or meet climate targets.

CDR credits are similar to traditional carbon credits, which have been in existence for about 20 years, since the Kyoto Protocol, which worked to encourage innovation and efficiency by facilitating emissions trade within a cap-and-trade system or a government-regulated compliance market. The difference is the CDR credits can only be generated and sold by systems or technologies that remove carbon from the atmosphere, as opposed to emissions reductions or avoidance practices. It’s a distinction that makes a major difference, because there is no way to reducing the total amount of carbon already in the atmosphere other than carbo dioxide removal.

Today, the CDR credit market is a voluntary market where businesses that want to reach net zero can purchase credits from carbon removal businesses. Unlike cap-and-trade and government-regulated markets, the voluntary market is only a few years old – major tech players like Google, Microsoft, Shopify and Facebook participate strongly in this market.

Companies typically pre-buy CDR credits as either an offtake agreement or advanced market commitment. They sometimes pay for the credits upfront so that the CDR companies can accelerate their technologies – they then enjoy priority access to the first credits produced.

Carbon removal certification and government intervention

Puro.earth is a Finland-based registry that certifies carbon removal suppliers according to their “Puro Standard.” NASDAQ just bought the company, so stock markets are getting involved.

These international markets exist without relying on national policies or structures. So, any Canadian company could generate CO2 removal credits and sell them to any other company, or country, regardless of their location. Therefore, this is a market mechanism as well as a service export.

Kevin Danner weighs in on standardization in this area, saying that, “if governments are able to create the policy framework around this to bring more standardization, more rigor, I believe that will strengthen the markets, and that’s already happening in Europe and to some extent in the U.S.”

Though policy isn’t necessary for scaling up in this industry, standardized government frameworks could be beneficial. It could enable the integration of funding across agriculture and economic development, as well as Environment and Climate Change Canada.

Building a policy infrastructure in the carbon dioxide removal space could position Canada as a trusted provider of sequestered carbon and bring substantial revenue to the country from the production and sale of carbon credits.

The international sale of carbon credits

Selling carbon credits internationally can be complex, given the variety of markets, regulations, and types of credit systems. Certain regions have cap-and-trade mechanisms. Others have internal compliance markets. Still others are developing credit registries that act as clearinghouses – once credits are registered, they can be purchased and retired, preventing resale and ensuring no double-counting. These latter are important, because while small-scale transactions can be easy and informal, large-scale carbon transactions require formal registries and life cycle analyses. These analyses evaluate:

• Feedstock origin
• Transportation emissions
• Sequestration timeframes
• Technology verifications

A proper registry ensures that the credits reflect the actual amount of carbon sequestered.

Reporting and verification: Registries require rigorous reporting and verification to maintain the quality of biocarbon production, including sample validation and machinery checks.

Carbon accounting: Carbon accounting firms help companies measure their emissions and balance them with credits to achieve sustainability goals.

Government requirements: Governments may soon mandate companies to register and report carbon usage. Proactive companies are already building a pipeline of credits to comply with anticipated regulations.

Planning for different domestic and export markets

Carbon Lock Tech sees the potential markets and product adaptations that could be on the horizon.

Like dollars, carbon credits are meant to be “fungible.” This makes for more straightforward transactions. Still, there will be projects that command a higher premium.

One example would be companies that work with a First Nation community to convert their waste into carbon and use it for water filtration. In this case, green jobs are created, and sustainable development goals are met. These projects will attract companies interested in both carbon credits and the ESG aspect.

Here’s another example – setting up a carbon removal facility in the Amazon could help the local community preserve their forest by helping them develop an alternative source of incomes – carbon removal credits. Forward-looking companies would be willing to pay a premium for such impacts that extend beyond carbon offsetting.

The challenge for Carbon Lock Tech will be in creating an effective export plan from assessing their target market to positioning themselves for a competitive advantage, and crucially, identifying relevant legal and regulatory issues.

Carbon Lock Tech is at the forefront of a global solution for climate change

To date, much of the focus on addressing climate change has been in the area of emissions reductions. This is critically important and needs to be a priority at every level of government. At the same time, the concept of carbon removal allows us to address  the climate issue head on, turning turn what would have been a risk into an opportunity. And the Carbon Lock Tech team is working to bring this opportunity to reality.

“In Canada we have a major advantage,” says Danner. “We have the knowledge, the technologies, the people, the resources, and the land. We can play a major role at the forefront of carbon dioxide removal, developing an entirely new industry capable of removing and sequestering gigatons of carbon, right here in Canada, and generating international revenues from it – if we do this right.”

Without a unique value proposition, your brand risks becoming just another brand in the aisle. That’s why building a unique value proposition is critical when you pioneer to a new market!

I found that having a structured framework to evaluate your market readiness can help you build and validate your value proposition.

Based upon Alexander Osterwalder and Peter Thomson’s work, I created a new framework more adapted to the food and drink industry which I think will help you develop your value proposition for any new markets.

This adapted framework comprises two main sections: Home Market Benchmark and Target Market Evaluation.

In this article I will explain the first section with more detail: Home Market Benchmark regarding the Current Value Proposition.

Home Market Benchmark – Current Value Proposition

Many in this industry initially try to sell the same products in new markets using the same arguments. However, the value proposition will be evaluated differently by consumers in a new target market. Nevertheless, it serves as a starting point.

This “Current Value Proposition Canvas” is divided into two parts: Your Product and the Consumer Insights based on your target audience in your home market.

Typically, your home market is where you have your strongest brand positioning and where you know the most about your consumers.

This intimate knowledge forms the basis for adapting your value proposition to a new market.

Product

Starting with your product, you need to answer three questions:

1. Benefits – What are the emotional attributes of your product that make your consumers’ lives better in your home market?

General emotional attributes for food and drink brands include:

• Brand Recognition: Confidence and pride in choosing a well-known and respected brand. These brands are often seen as a reference for quality or innovation within the category.
• Reliability and Trust: Security in consistent quality and safety standards. A brand that delivers on its promises.
• Celebration and Social Connection: Joy and uplift during special occasions with family or friends. Facilitates social interactions and creates a sense of community.
• Culture and National Pride: Pride in consuming products that celebrate cultural and national heritage. Emotional satisfaction from authentic products reflecting genuine practices.
• Nostalgia and Comfort: Bring fond memories and comfort from past experiences. Connection to cultural or familial traditions through food and drink.
• Satisfaction and Delight: Joy from consuming delicious and flavourful products. Pleasure in discovering new tastes and different cuisines from other parts of the world.
• Luxury and Indulgence: Pleasure from indulging in premium, high-quality products. Satisfaction from treating oneself as a reward.
• Health and Wellbeing: Enhanced health and energy from nutritious products. Comfort in making health-prioritized choices.
• Environmental Responsibility: Pride and satisfaction from supporting brands with sustainable practices, such as eco-friendly packaging and ethical sourcing.

2. Features – What are the functional attributes of your product in your home market?

General functional attributes for food and drink brands include:

• Taste and Flavour: The sensory experience, including taste, aroma, and mouthfeel.
• Nutritional Value: Health benefits like vitamins, minerals, protein, fibre, and essential nutrients.
• Convenience and Ease of Use: Ease of preparation and consumption.
• Quality and Freshness: Overall quality, including ingredients, manufacturing process, and freshness.
• Packaging: Design, functionality, and sustainability of the packaging.
• Price Positioning: Cost relative to perceived value and competitive landscape.
• Dietary Compliance: Suitability for specific dietary needs, such as gluten-free, vegan, or allergen-free.
• Shelf Life and Storage: Duration of freshness and safe consumption, and storage conditions.
• Sustainability and Ethical Sourcing: Environmental and ethical considerations in production, packaging, and distribution.
• Safety and Compliance: Adherence to safety standards and regulations, ensuring the product is free from harmful substances.

3. Consumption Experience – How does the experience of consuming your product make the consumer feel (consumer statement)?

When considering how the experience of consuming your product makes the consumer feel, it’s important to recognize that different types of target audiences may relate to your brand in unique ways.

By creating multiple personas, you can tailor consumer statements to reflect diverse emotional connections each segment may have.

This approach ensures your product resonates deeply with a wider range of consumers, enhancing overall brand connection.

Examples include:

• High-Protein Yogurt: “I feel strong and nourished after my workout, thanks to the high-protein content that helps me recover and build muscle without compromising on taste.”
• Fair-Trade Coffee: “I feel ethically responsible and connected to the global community, knowing my morning coffee supports fair trade practices and the wellbeing of farmers.”
• Classic Breakfast Cereal: “I feel nostalgic and comforted every morning when I enjoy a bowl of this classic cereal. It takes me back to my childhood, reminding me of carefree mornings and family breakfasts.”

Consumer Insights

Going next to the Consumer Insights, you will also need to answer three questions:

1. Desires – What are the emotional drivers that the consumer wants to be, do, or have?

• Status and Prestige: Products that elevate social status and reflect success, often premium or luxury goods.
• Indulgence and Pleasure: Products that provide enjoyment and sensory delight, often serving as treats or rewards.
• Health and Wellness: Motivation to improve health and maintain a balanced lifestyle.
• Convenience and Time Saving: Products that save time and effort, are easy to use, quick to prepare, or portable.
• Social and Cultural Identity: Products that resonate with cultural background or social identity, reinforcing a sense of belonging.
• Innovation and Novelty: Unique products that stand out and expand the palate, challenging and exciting consumers

2. Need States – What are the rational drivers that the consumer needs to get done?

• Basic Nutrition: Essential nutrients to maintain health and wellness.
• Compliance with Dietary Restrictions: Catering to specific dietary needs or restrictions.
• Safety and Quality: Assurance that products are safe to consume and of high quality.
• Affordability: Good value for money, competitively priced without compromising on quality.
• Availability and Accessibility: Easily accessible and consistently available in preferred shopping channels.
• Sustainability: Products produced sustainably, with minimal environmental impact and ethical sourcing practices.

3. Concerns – What are the Fears, doubts, and anxieties, a consumer might have while consuming your product?

• Healthy Ingredients: Concerns about the ingredients used in goods.
• Quality and Freshness: Concerns over the freshness and quality, especially for perishable or processed goods.
• Value for Money: Anxiety about not getting their money’s worth, seeking assurance that the product delivers on its promises.
• Regulatory Compliance: Concerns that products may not comply with local regulations, affecting safety and legality.
• Brand Trust and Authenticity: Doubts about the authenticity of brands, especially those making bold health claims or from unfamiliar sources.
• Cultural and Ethical Misalignment: Worries that products may not align with cultural practices or ethical values.
• Availability: Fear that preferred products may not always be available, leading to the need to find alternatives.

I will continue to develop the next subsections of the Home Market Benchmark of my Value Proposition Framework for the Food and Drink Industry newsletter. Check it out and subscribe on LinkedIn for more of my insights on the food & drink export business.

Attacks on cargo ships in the Red Sea in recent months have caused vessels to reroute around the Cape of Good Hope in Africa, producing longer and costlier trips. Happening simultaneously, the lower water levels along the Panama Canal have limited the number of cargo ships that can pass through the waterway each day.

Supply chains were also rattled not so long ago with the collapse of the Francis Scott Key Bridge in Maryland, which meant other U.S. ports had to step up and take on the shipping activity that the Port of Baltimore normally manages. There has also been a reported shortage of truck drivers stateside.

With all of these external factors in play – from public health crises to weather patterns to political discord – how can we protect our supply chains and – dare we say – even improve the relationships among selling and buying partners?

Export factoring.

Export factoring is a strategic tool to ensure cash flow

Trade finance is a set of financial tools that both improves a business’ cash flow and reduces its credit risk. Two well-known types of trade finance products are export factoring and supply chain finance.

Export factoring is when a financial firm buys a company’s receivables and advances them the majority of the invoice amount up front in cash (up to 90% in some cases).

This type of funding can also include credit protection and collections services. When this is the case, this full package is known as non-recourse export factoring.

Though manufacturers tend to choose export factoring services and retailers initiate supply chain finance with their suppliers, both umbrellas of trade finance achieve the same goal: better access to working capital all along the supply chain. A reliable source of working capital is critical to keeping operations moving along, despite any headwinds in global trade.

The waiting game

In today’s global trade landscape, there is often a wide gap between when an invoice is issued by the seller and when payment is submitted by the buyer. This is normal, though it can be a strain on supplier cash flow.

Payment terms between buyer and seller can be up to 3 months in some cases, meaning buyers don’t have to settle their invoices until 90 days after they have placed their order.

In fact, according to The Hackett Group, it takes large U.S. buyers an average of 54.7 days to pay their bills.

Factoring cuts this waiting period and converts unpaid invoices into cash up front. This method can be looked at as a “win-win” for both the supplier and the buyer, since the supplier receives additional liquidity right away while the buyer can enjoy extended periods until payment is due.

Why does getting cash right away matter to a supplier?

Well, in short, suppliers have vendors to pay too, and they can’t do so on schedule without sufficient capital on hand. By releasing the capital locked in their receivables, suppliers can pay their vendors in a timely manner, respecting these vital relationships needed to procure raw materials so they can continue to fill orders smoothly.

Besides paying their bills, manufacturers can also be looking to grow or expand their operations and customer base, which requires enough working capital to achieve these business goals. Many of these new buyers in new markets are also looking to negotiate longer credit terms, an arrangement that is attainable with trade finance bridging the cash flow gap.

Why do longer payment terms matter for buyers?

Trade finance allows buyers to optimize their working capital too. Without the pressure to pay suppliers right away, large retailers can invest in their operations, product offerings, footprint, employees, and their own growth and expansion aspirations. Having ample time to settle their bills gives retailers the opportunity to focus on their core activities and values.

Credit protection and collections services

Now, in the case a buyer happens to go bankrupt, trade finance still ensures that the buyer’s supplier gets paid. This is because trade finance, or non-recourse export factoring, includes credit protection to protect against non-payment in such cases of default.

This inclusion of credit protection allows suppliers to conduct business with peace of mind, without the worry of not getting paid.

These suppliers also benefit from the collections services that come as part of trade finance packages, which means the trade finance company is responsible for collecting payment from the buyer, giving suppliers more time to invest in their business.

The upshot

Cash is a major catalyst in allowing supply chains to function properly and operate smoothly. In a global trade environment that can be affected by everything from political discord to drought, reliable cash flow through trade finance is something a business can count on.

Trade finance provides easy access to cash by turning unpaid invoices into capital within 48 hours of verifying a business’s invoices, in some cases. Importantly, it supports payment cycles that work for all parts of the supply chain while reducing trade risk, allowing for strong, “happy” relationships and global trade dynamics.