As the petfood industry becomes increasingly international,
companies and their managers must break through market
complexity by choosing reliable, unbiased sources of
information. Increased competition from both foreign
competitors and boutique brands requires actionable
intelligence to make quicker and timelier strategic
decisions.
One method of analysis that progressive petfood
manufacturers and brand holders are incorporating is the use of
trade data. This information, while not new to some companies,
is creating value across marketing, sourcing, sales and legal
departments.
Trade data provides information on the movement of physical
goods (raw materials and finished products) from one country to
another, including exports and imports. This information can
come in the form of:
- High-level statistical data outlining total trade volumes
between countries or for a given commodity code, known as a
harmonized tariff schedule code (HTS); or
- Very detailed shipment reports outlining actual companies
and products at a bill of lading/manifest level.
Generally, all of this information is collected by
government sources but is typically disseminated by private
companies that work with government agencies.
The most referenced form of trade data is the information
gathered by the US Census Bureau. This data consists of the
total imports and exports for the US using the harmonized
system. Census data is provided at a high level, with dollar
value typically being the unit of measure. This data is
comprehensive, covering all imports and exports.
The lowest level of information available within US Census
data is at a harmonized product level. For example, a user
could see the total value of all dog and cat food in general
(HTS code 230910) imported and exported in 2008 (
Figure 1
). You can also examine which countries export the most dog and
cat food in airtight containers (HTS code 2309100010) to the US
and which countries receive the most exports from the US (
Figure 2
). Often, this data is referenced when discussing the trade
deficit.
For companies looking for detailed information, US Customs
and Border Protection collects information on every shipment
entering the US at a bill of lading level using the automated
manifest system. US Customs data, as it is commonly known, is
the most detailed source of information international trade
professionals can access.
While the detail on this information is great, there is no
significant standardization of how companies document product
and commodity names. In addition, US Custom provides only
waterborne imports electronically, which encompasses over 70%
of import activity. Truck, rail and air activity are not
provided at a manifest level of detail.
US Customs export data is not as readily available as import
data at a shipment level; however, it is expected to be more
widely available in the coming years. It is important to note
that HTS numbers and the value of goods are not listed on the
data provided by US Customs.
The data on a bill of lading will show who imported a
product and what company they received it from. In the sample
here (
Figure 3
), the data shows the company that imported dog chews and who
manufactured them in Taiwan. The product descriptions for this
data will also be more detailed than Census data, possibly
providing size and number of each type of chews that were
imported.
Trade data clarifies where products come from, who is
producing and purchasing them and how much is currently in the
market. By intelligently analyzing this information, petfood
companies are more accurately forecasting supply, deriving
price trends and creating a clear understanding of how they
interact with both their competitors and suppliers.