Madera County officially classified as ‘rural’ by feds. That comes with some benefits
To Jerry Pantaleo, whose family has been in the wine business since 1942, any chance to broaden its market share through sales is a great opportunity – especially with the industry in decline after two consecutive years of negative growth.
“People are drinking less,” he said of a trend that exists nationwide. “You’re also seeing alternative beverages like Truly and other spiked seltzer drinks. And some people are just going hard alcohol.”
However, Pantaleo said, there is a benefit to stamping California on an export. That’s something he’d like to leverage more as he looks for new markets. That could be easier with the recent official designation of Madera County as ‘rural,’ according to the U.S. Commercial Service, the export promotion arm of the U.S. Department of Commerce’s International Trade Administration.
The new designation gives Madera County businesses access to the Rural Export Center, which intends to help local rural businesses grow their international sales while reducing the cost and complication of the process. The fees businesses pay depend on how many services they seek, but there are reimbursement possibilities available through federal grants.
Today, Lamanuzzi & Pantaleo, with its sister company Golden Valley Grape Juice and Wine, is among Madera County’s medium-sized wineries that already exports its products, including concentrates of grapes and other fruits, mainly to Korea and Japan. Now, the opportunity to expand their exports and for other Madera businesses to enter export markets could be on the horizon, regardless of the business’s size.
The services now available could be helpful to people such as Sarah Weil of Twin Tree Farms. The small, family-owned mandarin grower that ships throughout the country could definitely use some help to start selling its fruit at a higher price through exports, she said.
Andy Seeto, Fresno’s director of the U.S. Commercial Service, said his office has been in talks mostly with the agricultural and wine industries. He was surprised to learn that the reach of the Rural Export Center’s services did not already include most of Madera County. His outreach work took him to eastern Madera County, where he met with local business owners and “thought, ‘God, they must be in a rural area.’ ”
But to be designated as rural, a given place cannot be within 50 miles of a top 100 metropolitan statistical area (MSA). When Seeto checked the export center’s qualifying map, he realized that rule disqualified the vast majority of Madera County because it was too close to Fresno. (Check if your business’ location qualifies here.)
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To get Madera County designated as rural in its entirety, Seeto argued that it’s an area with a lack of resources when it comes to exports: It’s a county where some interested businesses, despite being established, are new to exporting, and where there are no private export management firms.
“There’s not a whole lot here in Fresno County either,” he said. “Being able to get the resources and the assistance of an export management company, it’s more difficult for us here in the Central Valley.”
The Rural Export Center, available to rural areas nationwide, was established in 2020 with a plan to help businesses overcome the export barriers they face. The lack of resources creates a challenge in growing sales through exports and can also create a perception of risk in doing international sales, Seeto said.
When businesses seek services from the Rural Export Center, they will have access to an entire team’s help. Apart from evaluating how optimal a business’ website is for foreign buyers and virtual exports training, the center offers in-depth research on international markets.
Seeto said Rural America’s Intelligence Service for Exporters (RAISE) research has four main components:
Worldwide Matrix - “Which country do I go to?”
Polling - “The current status of a foreign market for their product or service.”
Country Reports - “What are the trends, size and growth of my chosen market? Who can I partner with or sell to?”
Potential Partners List - “The most important thing. Trying to get those vetted partners for them to be comfortable to sell their products to.”
The matrix breaks down information about industries by country and continent. During polling, businesses choose up to six countries from their matrix. With offices in more than 85 countries, U.S. Commercial Service staff will help clients navigate foreign regulations that may exist in their industries.
Seeto said it’s not a quick process. One part of the research can take a month or more.
“Usually by the eighth month, the probability of being connected with potential buyers is high,” he said.
Service prices for small businesses vary depending on the amount of research they want to access. A matrix with three country reports and a potential partners list could cost more than $3,000. But there are state grants available as export vouchers for small businesses that have export plans. Applications are open now.
The Rural Export Center assisted 800 clients across 22 industries in fiscal year 2022, according to its report for that year.
Businesses interested in learning more about the help available through the U.S. Commercial Service can email Seeto at andy.seeto@trade.gov or call 559-214-2923.
