International Trade and Supply Chain Security

1. The University: Experience and Qualifications

Since its founding in 1855 as the first land grant university in the U.S., Michigan State University has adhered to its original mission: to “strive to discover practical uses for theoretical knowledge, and to speed the diffusion of information to residents of the state, the nation, and the world.” In operational terms, MSU has concentrated on building its strengths in educating and training succeeding generations of researchers both from the U.S. and the world at large. It has sought to establish collaborative links with people and institutions worldwide, broadening its research, academic and service outreach.

MSU is recognized as a center of excellence in international development. The academic and professional community at Michigan State is highly diverse and responsive and augments the University’s international goals with a broad array of globally relevant skills and expertise. People from every county in Michigan, every state in the U.S. and 134 countries around the world contribute to the University’s success. Annually, more than 3500 international students and scholars enroll in MSU’s graduate and undergraduate and certificate programs. MSU plays host to hundreds of international visitors every year who come to view campus research facilities, participate in campus life as visiting scholars and specialists, or to meet with MSU colleagues. Hundreds of MSU faculty members are engaged in critical outreach programs in many countries throughout the world, teaching, conducting research or providing technical assistance.

For more than 50 years, Michigan State University has been a leader among U.S. universities in international development programs. MSU has had a broad and deepening involvement in conducting technical assistance and research in developing countries, assisting the development of new institutions, and providing training for development tasks. MSU, through its Departments and Institutes and Centers, has also managed projects throughout the world, providing short- and long-term in-country technical assistance, degree and non-degree training programs, and extensive backstopping support from the main campus. The Office of the Dean of International Studies and Programs has overall responsibility for the university’s international initiatives. While historically a majority of MSU’s international development and technical assistance projects have been conducted by faculty in various departments of the College of Agriculture and Natural Resources, international expertise is increasingly incorporated into all aspects of university life marking MSU as a global university.

International Trade and Supply Chain Security

International Business Center

The International Business Center (IBC) in The Eli Broad College of Business at Michigan State University has been a National Resource Center since 1990 (http://ibc.msu.edu). This carries the designation by the U.S. Department of Education of being a “Center for International Business Education and Research.” In the last grant competition (2006), IBC was ranked #1 among the nation’s leading business schools. The mission of IBC is to leverage our leading-edge competencies to provide superior education, research, and assistance to businesses, public policy makers, academics, and students on issues of importance to international trade and global competitiveness. To realize this mission, IBC focuses on three areas that are vital to all aspects of organizations’ global value chains:

Knowledge development – conducting research that produces leading-edge knowledge. The focus is on how to improve the international competitiveness of corporations and non-profit organizations. In international business, MSU has the world-leading research faculty (Management International Review, 2004) and the most editorial influence (Journal of International Business Studies, 2005) in the world. IBC draws on more than 150 colleagues in about 25 international units on the MSU campus to conduct cutting edge research and to mentor doctoral candidates. MSU has produced the 6 th most Ph.D.’s in business since 1960 (METF, 2003), and our doctoral students rank #5 in the world in total citations (Academic Assessment Services, 2004). An example of research conducted by IBC is the index of Market Potential Indicators for Emerging Markets which has been updated annually since 1996.

Knowledge deployment – offering innovative programs and products. IBC engages in some 60 different projects annually. For example, we offer training programs, benchmarking of global value chains, and diagnostic tools. These programs are regularly offered to other leading business schools’ faculty as well as to corporations, community college faculty, and Historically Black Colleges and Universities. IBC is a preferred provider to the U.S. Department of Commerce and its affiliates as well as to a broad variety of small, medium, and large corporations. One of our most widely used products is globalEDGE™ – it is the world’s #1 resource on “international business” on the web (http://globalEDGE.msu.edu), as ranked by all major search engines (on 9/12/06). A local effort is the Global Business Club of Mid-Michigan – its executive luncheon series with industry speakers is a great source for learning and networking.

Cultural competitiveness – helping the business community and society successfully leverage leading-edge global knowledge. For example, IBC provides leadership in global communities such as the Academy of International Business (http://aib.msu.edu), the globalEDGE Network, CIBERweb (http://ciberweb.msu.edu), and the Consortium for International Marketing Research (http://cimar.msu.edu). The Academy of International Business has more than 3,000 members in some 75 countries, with IBC being its world headquarters. The globalEDGE Network includes more than 24,000 professionals from around the world and all major industries. IBC also serves as the “web hub” for CIBERweb – a portal that integrates research and programs of all 31 CIBER schools funded by the U.S. Department of Education. Locally, we help nurture MSU’s programs which offer about 300 foreign languages, 800 international courses, and has students from more than 125 countries.

Business and Environment

The “Business and Environment” project is a new effort of the Environmental Science and Policy Program at MSU. It’s goal is to facilitate work at MSU that connects business and environmental issues. MSU has a vital role to play in balancing environmental impacts with business practices.(http://environment.msu.edu/)

If we should decide to list faculty/expertise, there is a complete faculty directory: “MSU Faculty with Expertise in International Business, Economics and Related Fields” available for adding.

Supply Chain Security

While many companies, increasingly global ventures, view supply chain security as asset protection, today’s revised definition demands that supply chain security extend beyond the company’s internal processes and those of their first-tier suppliers to address security procedures at every point along the supply chain in order to plan, manage, facilitate and monitor the global movement of goods.

Value Chain Risk Management Program

In response to increasing pressure to grow revenues, take advantage of new technologies, increase value from the supply base, reduce costs, improve working capital and streamline operational procedures, many organizations have established strategies which increase risk exposure and may even amplify the impact of risk on business performance.

Unfortunately, for many organizations, this increased risk exposure is masked by immediate cost and operational performance improvements. For senior executives entrusted with the long-term success of a business, this is a dangerous situation.

MSU’s Eli Broad College of Business is currently creating a project to provide an intensive review of the nature and source of risk as well as a framework for initiating and building an enterprise-wide risk management philosophy and processes. The program is designed for senior executives, who must understand the critical questions to ask and capabilities to employ concerning risk and tradeoffs when reviewing financial, supply and market strategies. (http://www.bus.msu.edu/execed/documents/81.pdf#search=%22Supply%20chain%20security%22)

Agricultural Supply Chain Risk Management

MSU is home to six world-class centers, institutes and alliances whose purpose is solely or in large measure the provision of food industry development services, and products in the areas of food safety/SPS, grades and standards/TBT, and international food laws and regulations.

• National Food Safety and Toxicology Center (NFSTC) conducts research and outreach on chemical and microbial hazards in foods and natural products. [http://foodsafe.msu.edu/index.html]

• Institute for Food Laws and Regulations (IFLR) Administers an internet distance education certificate program that consists of a series of region-specific food law courses taught by an international network of food science academic and legal professionals who understand the legal complexities of the food laws and how they impact the flow of food and agricultural products across national boundaries. IFLR has been approved as a Collaborating Center by the World Health Organization (WHO). [http://www.iflr.msu.edu/]

• Institute for Food and Agricultural Standards (IFAS) is an interdisciplinary teaching, research, and policy analysis institute that focuses on the social, economic, political, and ethical aspects of grades and standards in food and agriculture. [http://www.msu.edu/user/ifas/]

• Food Safety Policy Center (FSPC). The Food Safety Policy Center develops research and outreach programs to identify alternative policy and technology options for food and water safety. The focus of the FSPC's policy research and action falls in five key domains: (1) risk analysis and policy, (2) bio-security for food and water, (3) food and water laws, regulation and standards, (4) food and water safety research policy, and (5) emergent and alternative technologies.

• The National Alliance for Food Safety (NAFS) is a consortium of 23 universities and the USDA Agricultural Research Service; MSU is a founding member and co-leader of NAFS. NAFS addresses global issues in food safety – international marketing of U.S. agricultural products and the safety of foods imported into the U.S. [http://nafs.tamu.edu/goal.htm

The Institute of International Agriculture (IIA). International Food Safety and Food Industry Development together constitute one of IIA’s core thematic areas of interdisciplinary training, institution building, technical assistance, research, and extension. Examples of IIA’s priority food safety programs in IIA are:

• Partnership for Food Industry Development – Fruits and Vegetables (PFID-F&V). PFID is a highly successful partnership of training institutions, NGOs and private companies in the food industry that has assisted small and medium producers around the world to become more competitive and to expand their exports of fruits, vegetables, and specialty coffee. Competitiveness is improved through enhanced market-led information and increased numbers of producer-buyer linkages, and capacity building of producers to meet grades and standards for food safety and quality throughout the value chain. Private sector alliances that have helped drive the program and directly link producers to the market include: Melissa's, Royal Ahold, Hortifruti, Lafragua, Shop-Rite, Pick 'n Pay, and many others.

• International Short Course in Food Safety. Offered annually as a one-week course to international professionals this course addresses the emerging needs of food safety with a focus on food safety policy development, risk analysis, SPS, and program implementation. Some components of this course are international food trade, regulatory issues, microbial/chemical hazards, food preservation, antibiotic resistance, HACCP and information and training resources in food safety.

• Trade Capacity Building in Relation to the Application of Sanitary and Phytosanitary Measures (RAISE/SPS). The RAISE/SPS program assists farmers, processors and exporters to enhance their competitiveness through achievement of international market stan­dards for food safety and quality. RAISE/SPS also assists developing country regula­tory, scientific and technical institutions that ensure safe domestic food supplies, to protect agricultural plant and animal health, and preserve natural ecosys­tems. Countries and regions in which MSU has conducted RAISE/SPS activities include: Guatemala, Nicaragua, Ecuador, South Africa, Zambia, Kenya, Croatia, Armenia, Philippines and Indonesia. Recent/current initiatives under the RAISE/SPS umbrella include the following. 1) Supermarkets and Private standards – This project studies the impact of private standards on small farmers and global supermarkets. It has expanded into Africa, Latin America, Southeast Asia and Central/Eastern Europe. 2) Third-party certification – This study characterizes and clarifies the role of third party certifiers and their accreditors in developing nations. The overall objective of this analysis is to enhance the ability of smallholders, agribusinesses and government agencies to succeed in meeting the challenges of private standards imposed by the supermarket sector. 3) Traceability – Due to new interest in tracing food products to their source, this study aims to evaluate the governmental regulations and industry standards related to traceability as they affect sectors of the supply chain from producers to retailers. 4) SPS Short Course – This training program addresses the strategic use of standards to promote agricultural development regarding SPS issues. It will also act as a tool for constant updating as standards are modified and new issues arise. 5) Benchmarking SPS Management Capacity in Five Central American Countries – This assessment identified critical needs for technical assistance in Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua and recommended strategies for USAID to meet those needs. Sanitary and Phytosanitary (SPS) measures may prevent these countries from capitalizing on current trade agreements. Three major areas affecting SPS measures were globalization, concern for human, animal and plant health along with the environment and increasing information technology.

• China Food Safety and Food Laws Program. Ever since their accession in the World Trade Organization, China has tackled many challenges in competing in the international market of agricultural goods. MSU has worked in collaboration with Chinese partners, the DRC and CAAS, to develop a comprehensive program proposal that aims to: 1) Provide consultation to the Chinese Central Government on the formulation of Chinese food safety laws and the development of the National Food Safety Strategic Plan through applied policy research; 2) Improve the capacity of Chinese regulatory agencies that implement and reinforce food safety laws and regulations through cooperative research and training programs; 3) Improve China’s capacity in risk analysis, management and communication through technical cooperation and assistance programs; 4) Provide strategic planning for public health infrastructure development (surveillance, lab capacity, inspection); 5) Enhance awareness and understanding of food safety and GMO issues through public education of Chinese consumers, producers, and small agriculture businesses; 6) Through applied policy research assist smallholder producers to adapt to the changing environment emerging from China’s entry into the WTO; and 7) Enhance China’s ability to actively engage in the international discussions and negotiations pertaining to food safety, food laws, standards and grades through cooperative applied research and training.

• Armenia Food Traceability Initiative. This initiative has focused on building capacity for food traceability within Armenian agribusiness firms that export goods to the EU and US markets. Participating firms have learned how to establish systems for internal documentation to track the products they ship from the raw material stage to the final product. Compliance with the US Bioterrorism Legislation and other international standards has been the driving force behind the demand for this training. A handbook that details the requirements, forms and checklists of the US and EU regarding traceability has also been prepared for Armenian producers. Four agribusiness firms received one-on-one assistance in developing their traceability programs.