US overseas market promotion: An overview of non-price programs and expenditures

Abstract

This study gives an overview of the US government non-price export promotion programs. FAS data on the Cooperator and Targeted Export Assistance (TEA) Programs were examined to identify how program expenditures have been allocated among activities, commodities, and regions. Analysis shows that while a significant portion of the TEA funds have been spent in highly developed countries, Cooperator Program promotions have been conducted worldwide. Traditional commodities (grains and oilseeds) received 55% of Cooperator funds, and horticultural products received 53% of the TEA allocations during the 1986-1988 period. The majority of TEA promotional activities have been consumer-oriented.During the 1980s, appreciation of the dollar, recession in the world economy, and high domestic support prices reduced demand for US agricultural products.

Competitiveness and consumer preferences of U.S. fruits in Taiwan

“…Adams et al (1997) mentioned that exporting agricultural products played an important role in the success of US agribusiness. Furthermore, a large amount of money been spent on consumer promotion each year was aimed to expand overseas retail demand for US agricultural products under the 1985 Food Security Act (Henneberry et al, 1992).…”

“…Halliburton and Henneberry (1995) found that for every dollar invested in the US almond export promotion, the gross rates of return were US$4.95 in Japan, US$8.59 in Taiwan, and US$5.94 in Hong Kong. Of the total expenditures of US overseas market promotion, the Pacific Rim region accounted for the largest share of the Cooperator/Export Incentive Program and the biggest amount of Targeted Export Assistance (TEA) expenditures (Henneberry et al, 1992).…”