Exporting is no longer restricted to large firms. Small businesses, too, are going international

If you had 20,000 pounds of frozen cranberries, what would you do? If you're as gutsy as Evelyn Ernst, you buy another 20,000 pounds, fill a transport container, and ship it all to the United States. "A container of frozen cranberries is worth a lot of money," says Ernst, who co-owns Lunenburg N.S.-based Terra Beata Farms with her husband, David. "When the cheque finally arrived, we went for dinner."

That was two years ago, but its success showed Ernst the future. "Atlantic Canada produces more cranberries than it consumes," she says. "We had to make a choice. Sell our berries to someone else so they could export them or export them ourselves. We went with option No. 2." Today Terra Beata sends cranberries around the world, including to Europe, Russia, and Asia.

Founded in 1998, the farm started by selling fresh cranberries to locals. By 2001 it had launched a line of cranberry preserves, dried berries, and cranberry juice. Almost immediately it was a hit with specialty stores throughout Atlantic Canada. Sobeys and Superstore both carry the Terra Beata brand in their East Coast stores, and next year Ernst plans to expand into Ontario. This year, the company was one of Nova Scotia's exporters of the year.

Exporting is a sound choice, according to Export Development Canada, which reports exporting as being vital to growth for small firms. "Companies that export are more likely to grow rapidly than non-exporters," says David Surrette, the regional vice-president of Export Development Canada. "For companies in niche markets, the only way to grow is to expand outside the [Atlantic] region."

Good news greets small businesses looking to export outside the country. Canada has a tremendous reputation internationally for both food quality and safety. "Europeans are known for being quality conscious," says Ernst. "We focus on delivering the quality they are looking for and can trace every box of berries back to the field it came from."

The company also provides micro- and pesticide-residue test results, undergoes food-safety audits by the European buyers, fills out pages of paperwork, and meets or exceeds international standards for Grade A fruit. It also customizes carton labels to suit each customer, meets all colour and size requirements, and provides specialized services such as sorting the cranberries twice to ensure that all sticks and roots are removed.

Surrette warns business owners they can't rely solely on reputation. Most new exporters face obstacles when venturing into foreign markets. Which markets are accessible? What are the regulations? How will products be distributed? How will they decide the price? The biggest hurdle is finding answers to these questions. "My advice is to first talk to competitors," says Surrette. "Try to get referrals from your existing foreign customers. Getting an introduction to a new foreign buyer can go a long way to building new business."

Canadian consulates and the Department of Foreign Affairs are a good place to start. Closer to home, more programs and services are available for exporters. Nova Scotia Business Inc. hosts a two-day session on exporting, with trade commissioners on hand to answer questions. Trade Team Nova Scotia handles inquiries, including logistics, insurance, and marketing. In New Brunswick the Trade Assistance Program provides funding for exporters. In Newfoundland and Labrador the Export Readiness Program gives businesses information on how to develop an export strategy. Trade Team P.E.I. offers assistance and partnerships to exporters from that province. And ACOA trade missions give businesses the opportunity to develop relationships with potential clients.

Finding a business partner can be critical to exporting, since 60% of small business exporters have foreign partnerships. These connections can be made through brokers, buyers, and other suppliers. "You'll have to take big steps to make these relationships work, but it's critical," says Surrette. "An exporter may go to Mexico to meet four potential buyers, make another visit to the trade commissioner, and visit again before closing the deal."

Ernst goes to trade shows to put the Terra Beata name in front of industry players. Most of her company's expansion has come through international brokers. Ernst has also forged local partnerships to keep up with demand. Terra Beata has formed relationships with berry farmers throughout Nova Scotia and New Brunswick, purchasing their cranberries and transporting them to Lunenburg to be cleaned, frozen, and packaged for export.

Export sales accounted for more than half of the company's sales last year, and overall sales tripled. This year Ernst has shipped almost 1.5 million pounds of cranberries across the sea, a number she expects to triple next year. "We don't go out for dinner any more often now; big cheques tend to be balanced out by big bills," says Ernst. "But our year-round workforce has quadrupled since last year. So now the dilemma is that no one has a house big enough to host the farm's Christmas dinner."