Try Before You Buy: FAS' Quality Samples Program - Brief Article

AgExporter, April, 2001 by Mark Slupek

Zane Willard, executive director of the Mohair Council of America, represents 3,000 mohair ranchers in Texas. He serves a 10-member board of ranchers, with a mission to increase sales and make their work profitable.

Things are going well right now. Mohair sold for $3.50 a pound last year; it is selling for $10 a pound right now. Moreover, Willard has opened new markets in Peru, Indonesia and the United Kingdom, thanks in part to FAS' Quality Samples Program (QSP).

"Actually, providing samples on a limited scale to develop new markets is not new to us," said Willard. "What QSP did was allow us to scrape out more marketing efforts for our ranchers from their membership dues."

Better still, the sample program makes sales--$75,000 in start--ups this year.

"Considering that some buyers imported no mohair prior to our providing samples, that's dramatic-and positive change. Our efforts have been hard work, but with the sample program, we transformed those textile firms from complete unawareness to a growing sales market."

Trying Trade on Three Continents

When a Peruvian yarn maker with three mohair yarns tried samples through the QSP, Willard hoped the samples would allow him to build a long--term customer. It worked.

And once the Latin American company processed the samples, they were sent to a carpet maker in Indonesia who would manufacture a final product for test purposes. Both of these potential customers had good things to say about the product--and about the QSP.

"They liked the idea they could try a quality product with less risk," said Willard.

"I feel sure it gave us an advantage over our competition."

Willard also used QSP to provide samples to a company in the United Kingdom. The British carpet company also received two types of Texas mohair to test through the manufacturing process.

Real Work, Not a Free Ride

The Quality Samples Program is similar to efforts in other countries to support agricultural exports through sampling. This USDA program works to support U.S. farmers, demonstrating the quality of their products while honoring fair trade commitments.

"This program still expects the producers and trade groups to go the extra mile in servicing their products--we simply jump start the process," said program manager Denise Huttenlocker ."It is a very targeted program--you also have to demonstrate you have a viable marketing plan for the country you choose, and that's just the start."

QSP proposals must contain complete information about the proposed sample projects as outlined in the program announcement. Click on the FAS' website: www.fas.usda.gov/mos/programs/qsp.htm for more details or see contact information below.

Under QSP, U.S. exporters must buy the commodity samples, export them and provide technical assistance on their use to importers. When the project is finished, USDA will reimburse the cost of procuring and exporting the samples. QSP focuses on projects that benefit whole industries, rather than individual companies.

FAS administers the program under the authority of the Commodity Credit Corporation Act. Awards under the program are competitively determined, based on several criteria, including proposal quality, applicant experience and commercial sales potential for the product.

Rice Is Right for QSP

Jim Willis, who implements international programs for the U.S. Rice Producers Association, Houston, Tex., is also a believer in the QSP.

Some of his member rice growers in southern Missouri planted Baldo, a rice variety normally found in Turkey and Italy. They took a big chance; this rail variety requires a lot of care, and a bad wind storm can ruin an entire crop. Nevertheless, its world-renown flavor puts it in high demand.

The U.S. farmers knew this rice was difficult--even risky--to grow, but they felt they could make a good profit by exporting it to Turkey, where farmers produce it but can't keep up with demand.

The farmers believed that Baldo rice in the world market would let command a price that would pay off handsomely, justifying their extra sweat generated both by hard work and anxiety over the risk of crop damage.

It did. A supplier in Turkey is now talking with the farmers--and others in the United States--about a contract that could be worth millions. It would provide an economic boost not only to the farmers, but to the surrounding communities whose small businesses depend on the success of agriculture in the region.

The Turkish customer will sell the rice to other suppliers throughout his country, so even more businesses there become acquainted with U.S. quality.

"We were pretty excited about the QSP--it was a vital link to our success with Baldo rice," Willis said. "We got a partner who we think will build a strong trade partnership."

Willis adds that this growing international trade would help farmers gain financial strength and could ultimately reduce their dependence on other supports.

"Our farmers would much rather prosper growing exotic rices for the world than be trapped in a reliance on subsidies," he said.