Allocation increased for export market promotion program - $200 million of USDA 1991 Market Promotion Funds allocated to assist U.S. producers finance export market promotion of agricultural products; $96 million for promotion of horticultural products - U.S. Dept. of Agriculture, Economic Research Service report

Situation and Outlook Report: Fruit and Tree Nuts, August, 1991

Almost Half of the 1991 Market Promotion Funds Are for Horticultural Products, With Citrus Fruits and California Wine Receiving the Largest Allocations.

USDA allocated $200 million under the Market Promotion Program (MPP) to 47 trade organizations to assist U.S. producers in financing export market promotions for a variety of agricultural products during fiscal year 1991. Of the total $200 million, $96 million are for promotions of horticultural products. On January 16, 1991, USDA's Foreign Agricultural Service (FAS) announced the 1991 fiscal year allocations for MPP. Authorized under the 1990 Food, Agriculture, Conservation, and Trade Act of 1990, the MPP permits the Commodity Credit Corporation to provide commodities or funds to eligible trade organizations as partial reimbursement for overseas market promotion activities. The MPP replaced the Targeted Export Assistance Program (TEA), a market promotion effort under the 1985 Food Security Act. Market development, the main goal of the MPP, is broader than TEA's chief objective which focused on counterbalancing unfair trade practices of other nations. However, the MPP continues to give priority to commodities whose exports have been damaged by unfair trade practices of other nations. MPP promotions may be conducted throughout the world. During 1986-90, the major share of market promotion activities under the TEA was conducted in Japan, other developed Asian countries, and Western Europe. Market promotion activities (defined generally as technical assistance, trade servicing, and generic and branded consumer promotion) can include generic or brand media advertising, point-of-sale promotions, nutrition information pamphlets, recipes, articles in trade publications, trade missions to the United States, and technical assistance in processing U.S. agricultural commodities. The $96 million allocated to horticultural products in fiscal year 1991 was more than twice the $44.9 million allocated in 1986, the first year of TEA (Table 2a). Fresh and processed citrus fruits from Florida, California, and Arizona received the largest MPP allocation, $19 million in fiscal year 1991. The average annual allocation for citrus fruits under the TEA was $16.7 million. For fiscal year 1991, California wine received $15 million, followed by raisins, walnuts, and almonds with just over $8 million each. Table grapes and grape products received $4.65 million and fresh apples, $4.3 million. Some commodities not included in the TEA program have been added to the MPP processed pears and cranberries, and dates and date products. [Table 2a Omitted]