S.D. trade mission to Mexico produces strong interest in deal-making

South Dakota Trade’s second trade mission to Mexico produced a strong interest in relationship-building despite the uncertain global trade environment.

The 10-person delegation traveled to Mexico City and Monterrey, a business and manufacturing hub. The trade mission was aimed at increasing export sales of agriculture, manufacturing and biotech products.

The interest “was extraordinary,” said Jesse Fonkert, who recently became president and CEO of South Dakota Trade. “We had good luck setting up meetings and … each of our trade mission participants had productive meetings … and have follow-up action items.”

Joe Fiala, deputy commissioner of the Governor’s Office of Economic Development, held two seminars on doing business with South Dakota and foreign direct investment opportunities.

“We had a great turnout,” Fonkert said.

Mexico is South Dakota’s second-largest trading partner next to Canada.

“We see a lot of opportunity for further exports in North America,” Fonkert said. “This is our first country where there’s been a return trade mission, which signifies what we see as potential for members of South Dakota Trade and our commodity roots.”

The trip included agriculture groups representing interests in dairy and beef, as well as the manufacturing sector and food processing.

“We had a consultant in the group that works out the meetings between trade mission participants and key buyers in those markets that we think and the consultant thinks are promising,” Fonkert said.

The group toured a soybean crush facility that is the largest of its kind in North America.

“At this point, they are buying some of their soybeans from South Dakota — a very small percentage — and our intention is to find something like this and continue to build strong relationships,” Fonkert said.

South Dakota Trade’s first trade mission to Mexico in 2023 produced a 70-to-1 return on investment, Fonkert said, adding that ROI from this trip will be calculated as deals finalized.

“Our organization has a steering committee that meets throughout the year that helps inform and advise staff on where South Dakota Trade should be dedicating its energy,” he added.

Participating companies can apply for STEP grant funding from South Dakota Trade to offset the cost of registration, travel and translation services. The package also includes access to local consultants who prearrange business-to-business matchmaking meetings with foreign buyers in each market to expedite sales opportunities.

Trade missions to Ireland and Canada are being planned for later this year, and there is room for additional participants on each trade mission.

Interested businesses should reach out to Rachael Weiland at South Dakota Trade at rachael.weiland@southdakotatrade.com.

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