Sampling of Foreign Agricultural Commodity Promotion Programs
		The Dairy Trade Coalition
		Roundtable discussion on
		“Legal Challenges to Agricultural Promotion Programs”
		Monday, July 22, 2002
		Washington, DC
The information contained in this chart is from a April 1995 General Accounting Office (GAO) report, "Agricultural Marketing:  Comparative Analysis of
U.S. and Foreign Promotion and Research Programs (GAO/RCED-95-171)
Marketing organization	Organizational functions	Composition of board	Sources of funds1	Types of activities - uses
(year started/reorganized)			(in U.S. dollars)	of funds
AUSTRALIA
Australian Dairy	Promotes dairy products in both	Authorized: 11	Total funding (1994):	Export sales cost (58%)
Corporation (1986)	domestic and export markets.		$310.2 million2	Domestic marketing (3%)
		Members: 9 industry (includes		Export marketing and promotion (1%)
	Purchases and sells certain	chair), 1 government, and 1	Assessments (41%)	Investment (1%)
	products in Japan and the EU.	managing director (permanent	Export sales (57%)	Operations (1%)
		member).	Other (2%)	Interest (1%)
	Controls export licenses in order
	to fulfill trade commitments.	Except for the chair, who is chosen	Assessment rates (per kg. of
		by the Minister, and the managing	milkfat):  Promotion, $0.377,
		director, the members are self-	Corporation, $0.007
		nominated and appointed by the
		Minister, Department of Primary
		Industries and Energy.
Australian Dried	Promotes exports of sultanas,	Authorized: 6	Total funding (1993):	Overseas marketing (66%)
Fruits Board (1991)	raisins, and currants.		$1.3 million	Operations (34%)
		Members: 3 packers or exporters,
	Conducts market research on	1 grower, 1 independent, and	Assessments (80%)
	these products.	1 chairperson (independent).	Government grants (13%)
			Interest (7%)
		Members are appointed by the
		Australian Horticultural	Assessment:  $10.20 per
		Corporation on the basis of	metric ton on dried fruit
		recommendations from an	production, collected 44 days
		expert panel.	after the fruit is sold.
Australian	Promotes and coordinates the	Authorized: 8	Total funding (1994):	Domestic marketing (47%)
Horticultural	export of horticultural products,		$6.1 million	Export marketing (5%)
Corporation (1987)	including apples, pears, nashi,	Members: 6 industry, 1 government		Operations (27%)
	citrus, avocados, nursery	representative, and 1 managing	Assessments (58%)	Market R & D (8%)
	products, honey, macadamia	director (permanent member).	Export charges (8%)	Industry payments (7%)
	nuts, and chestnuts in both		Government grants (30%)	Meetings/conventions/
	domestic and export markets.	Industry representatives are	Other (4%)	newsletters (3%)
		chosen by a selection committee		Assessment collection
	Works to improve the efficiency	and appointed by the Minister,	Assessments:  Rates vary	costs (3%)
	and quality of production and	Department of Primary Industries	by use and volume within
	marketing of these products.	and Energy.  The government	the following industries:
		representative is chosen directly	apples, pears, nashi, citrus,
		by the Minister.	and avocados.
			Nursery, 2.5% of wholesale
			pot sales, Macadamia nuts,
			$0.015/kg;  Honey, $0.022/kg;
			Chestnuts, $0.0037/kg.
			An additional assessment on
			exports is charged for all
			products except chestnuts
			and nursery.
Australian Wheat	Purchases, promotes, and	Authorized: 11	Total funding (1993):	Direct costs (59%)
Board (1939/1989)	markets wheat, grain, and their		$1.7 billion	Cost of sales (53%)
	products in both domestic and	Members: 1 chairperson, 1		Movement in pool grain
	export markets.	managing director, 1 government	Export sales (82%)	inventories (-27%)
		representative, and 8 industry	Domestic Sales (16%)	Interest (9%)
	Participates in related value-	representatives (nominated by	Other (2%)	Operations (7%)
	added activities.	the Grains Council of Australia).		Other (-1%)3
			Operating expenses and
		Members, except the managing	other direct costs are taken
		director, are appointed by the	out of the sales, and the
		Minister and may be farmers or	profits are returned to the
		individuals with expertise in	farmers on a pooled basis.
		finance, marketing, or business
		management.	The Wheat Industry Fund
			receives an assessment of
			2% on all wheat sales for the
			board's capital base.
Australian Wine	Promotes grapes products in	Authorized: 8	Total funding (1994):	Overseas marketing5 (78%)
and Brandy	both domestic and export		$3.7 million	Regulatory services (15%)
Corporation (1980)	markets.	Members: 1 chairman (ministerial		Operations (7%)
		selection), 1 government member,	Assessments (23%)
	Performs market research on	and 6 members with industry or	User fees (35%)
	these products.	business expertise.	Government grants (24%)
			Australian Government
	Licenses exports.		Officials' Scheme4 (18%)
			Other (<1%)
	Sets quality standards.
			Assessments:  For up to and
			including 10 tonnes
			processed, $146.  For over
			10 tonnes processed, $132
			plus a certain amount per
			tonne, ranging from $3.07 to
			$0.29 based on the total
			product weight.
Australian Wool	AWRAP promotes wool in	Authorized: 9	Total funding (Dec. 1993 -	Export promotion (76%)
Research	domestic and export markets.		June 1994): $91.3 million	Research (14%)
Promotion		Members: 1 chairman, 1 managing		Other (10%, includes domestic
Organization (AWRAP)	AWRAP also identifies	director, 1 government	AWRAP assessments (49%)	promotion)
International	research and development	representative, and 6 others with	Government grants (15%)
Wool Secretariat (IWS)	requirements and provides	industry expertise.	Other member countries
(1972/1991, 1993)	funding.		contributions (25%)
(as of Dec. 1993, the		AWRAP board members are	Other (11%)
operations of the two	IWS promotes the use of wool	appointed by the Minister for
organizations have	products internationally.	Primary Industries and Energy.	AWRAP assessments are
been combined)		However, the managing director is	based on the value of wool
		appointed by the other board	sold to an initial buyer; 3.5%
		members.  The appointments are	of this value is used for
		based on advice from an industry	promotional activities and
		selection committee.	0.5% for research and
			development.  The government
		The IWS board consists of up to	matches research and
		19 members: 8 from AWRAP, 3	development expenditures.
		from New Zealand, 3 from South
		Africa, 1 from Uruguay, 1 chief	Fees: Beginning May 1, 1995,
		executive officer, 1 director of	IWS will charge companies
		operations, and up to 2 additional	for use of its "woolmark"
		members appointed by the IWS	(trademark).
		board.  The chairman and
		managing director of AWRAP are
		the chairman and chief executive
		officer, respectively, of IWS.
GERMANY
CMA (1969)	Promotes all agricultural	Authorized: 26	Total estimated funding (1995):	Export activities (25%)
	products except fish, forestry,		$92.4 million	Domestic activities (75%)
	and wine in both domestic and	Members are elected from the
	export markets.	53 producer and agricultural	Assessments (96%)
		industries (manufacturers,	User fees and other (4%)
	Provides central marketing	wholesalers, and retailers)	No government funds.
	support.	associations.7
			Assessment rates vary by
	Conducts food quality tests and	Members are elected at the	agricultural sector.
	inspections.  Issues CMA Seal	shareholder meeting.
	of Quality.		Assessments are paid by
			farmers.  There is no
	Trains exporters and sales		assessment on imports.
	personnel for food shops.
	Conducts market research in
	domestic and export markets.
German Wine	Markets and promotes German	Authorized 44 on the	Total funding (1995):	Export activities (50%)
Institute (1949)	wines in both domestic and	Administrative Council.8	$14.2 million	Domestic activities (50%)
	export markets.
		Members: 18 representing wine-	Funding is almost entirely
	Conducts market research in	estates and their cooperatives,	from assessments from the
	domestic and export markets.	8 regional wine promotion boards,	German wine industry.  There
		7 industry associations and	is no government funding.
		groups, and 11 wine trade and
		consumers.	Assessments: Since 1994,
			the rate for producers has
		The overall strategy is monitored	been $80.11 per hectare of
		by its supervisory board	vineyard area.  In addition, the
		(7 members).	assessment rate for all wine
			traders was $0.80 per
		Administrative Council members	hectoliter of grape must
		are appointed by the Ministry of	(unfermented pressed juice) or
		Food, Agriculture and Forestry.	wine; or per 133 kilograms of
		Members of the supervisory	grapes or grape mash.
		board are elected by the
		Administrative Council.
NEW ZEALAND
New Zealand Apple and	Purchases and markets all	Authorized: 7	Total funding (1993):	Direct costs (25%)
Pear Marketing	apple and pear fruit intended		$320.7 million	Distribution (49%)
Board (1948)	for export.	Members: 4 are nominated by		Operations & marketing (22%)
		the farmers federation; 3 are	Sales (99%)	Other (4%)
		selected on the basis of their	Other (1%)
		commercial expertise.
			No assessments.  Board
		All members are appointed by the	deducts its expenses from
		Minister of Agriculture.	the profits on sales of
			products and distributes
			remainder to growers.
Fronterra (1961)	Purchases and markets dairy	Authorized: 13	Total funding (1994):	Sales cost (40%)
(originally named New	products intended for export.		$3 billion	Payment to dairy companies
Zealand Dairy Board)		Members: 11 elected by the		for manufacturing costs (27%)
	Operates research and	cooperative dairy companies; 2	Sales (86%)	Subsidiary operating
	development centers in	are appointed by the Minister of	Other (14%)	costs (9%)
	selected countries, focusing on	Agriculture on the basis of their	(non dairy products)	Other (24%)
	the development of in-market	commercial expertise.
	capabilities.		No assessments.  Board
			deducts its expenses from
			the profits on sales of
			products and distributes
			remainder to dairy companies.
New Zealand Game	Promotes venison and velvet	Authorized: 8	Total revenue (1993):	Venison marketing (55%)
Industry Board (1985)	products for export.		$4.9 million	Velvet marketing (10%)
		Members: 4 are deer farmers		Research (9%)
	Manages industry research	nominated by the Deer Farmers	Assessments (92%)	Quality assurance
	programs.	Association; 3 represent exporters	Other (8%)	training (14%)
		and are nominated by the Deer		Other (12%)
	Provides training for quality	Industry Association; 1 is	General assessment rates:
	assurance standards.	nominated by the board.  All	Venison, $0.13/kg
		members are appointed by the	Fallow deer, $0.10/kg
		Minister of Agriculture.	Velvet, $1.62/kg
New Zealand Horticulture	Conducts, collects, and	Authorized: 5	Total revenue (1993):	Employee fees and operating
Export Authority (1987)	disseminates market research.		$310,000	costs (100%)
		Members: 3 are appointed by
	Licenses exporters.	various affiliated federations	Farmers (83%)
		representing producer and	Industry (17%)
	Promotes compliance with	exporter interests; 1 is appointed
	grade standards.	by the government on the basis	No assessments.  Collects
		of their commercial expertise; and	fees for services from farmers
		1 chairperson, who cannot be an	and industry.
		officeholder or member of any of
		the nominating bodies.
New Zealand Kiwifruit	Purchases and markets all	Authorized: 8	Total revenue (1994):	Direct sales cost (48%)
Marketing Board (1977)	kiwifruit intended for export.		$326.6 million	Distribution (36%)
		Members: 4 are elected by the		Marketing (7%)
		growers; 3 are appointed by the	Sales (99%)	Other (9%)
		board on the basis of their	Other (1%)
		commercial expertise and approved
		by the Minister of Agriculture; 1 is	No assessments.  Board
		appointed by the Minister of	deducts its expenses from
		Agriculture and represents the	the profits on sales of
		government and the interests of	kiwifruits and distributes
		the consumers.	remainder to growers.
New Zealand Meat	Promotes beef, sheep, goat,	Authorized: 11	Total revenue (1993):	Export promotion (28%)
Producers Board (1921)	and horse meat products for		$16.9 million	Research (24%)
	export.	Members: 6 are directly elected by		Personnel costs (27%)
		meat producers; 4 are nominated	Assessments (77%)	Other (21%)
	Licenses exporters.	by the board on the basis of their	Other (23%)
		commercial expertise and
	Sets quality control standards.	appointed by the Minister of	General assessment rates
		Agriculture; and 1 represents the	per head at time of slaughter:
	Funds research and	Dairy Board and is appointed by	Sheep/lamb/goats. $0.25
	development for on-farm and off-	the Minister on the basis of a	Cattle; $2.27
	farm development, which can	recommendation of the Dairy	Calves, $0.13
	provide technology transfer.	Board.
	Informs farmers about markets,
	market development, and how
	to meet market demand through
	scheduled meetings.
Wools of New	Promotes wool and wool	Authorized: 10	Total revenue (1994):	IWS10 (46%)
Zealand (1977)	products in both domestic		$34.5 million	Promotion and research (13%)
	and export markets.	Members: 6 are elected by farmers;		Wool sales administration (11%)
		2 are nominated and appointed by	Assessments (82%)	Interest expense (13%)
	Sets value and sells wool stock	the government on the basis of	Other (18%)	Other (17%)
	until depleted.	their commercial expertise; 1 is
		nominated by the board and	Assessment rate:
	Provides technical assistance	appointed by the government; and	6% of value of wool sold to
	to farmers.	1 (the Director General of Agriculture)	initial buyer
		serves as an ex-officio member.
	Manages a research and
	development program as well as	There is no government
	provide technology transfer for	representation on the board.
	research and development.
UNITED KINGDOM
Food From	Promotes British food and drink	Authorized: No fewer than 13 and	Total funding (1993):	Export promotion (100%)
Britain (1983)	products, primarily in export	no more than 21 industry members	$9.7 million
	markets.	representing all sectors of the
		agrifood industry.	Government grants (60%)
			Contributions from other
		Members are appointed by the	agricultural marketing
		Minister of Agriculture, Fisheries,	organizations and user fees
		and Food and the Secretaries of	from exporters (40%)
		State for Scotland, Wales, and
		Northern Ireland.  The Ministers
		appoint one member to be
		chairman and another to be deputy
		chairman.
Home-Grown Cereals	Promotes British cereal products	Authorized: Up to 21 industry and	Total funding (1993):	Domestic promotion (6%)
Authority (1965)	and oil seeds.	independent members consisting	$9.7 million	Export promotion (13%)
		of not less than 5 nor more than 9		Market information (9%)
	Conducts research on these	cereal growers, an equal number	Assessments (85%)	Research (62%)
	products.	(5 to 9) of dealers and processors,	Other sources (15%)	Other (10%)
		and up to 3 independent members,
	Provides services for the	including both the Chairman and the	Assessment rates (exclusive of
	government such as reporting of	Deputy Chairman.	value-added tax) per tonne
	price information and serving as		traded for fiscal year 1993:
	an agent of the Intervention	Members representing the	cereal growers, $0.451
	Board for Agriculture Produce.	interests of growers, dealers, and	cereal dealers (net of grower
		processors are nominated by the	contribution), $0.04
		relevant trade organizations.  All	processors of cereals for
		members are appointed by	animal feed, $0.03
		Ministers.	other processors, $0.09
			oilseed growers, $0.751
Meat and Livestock	Promotes beef, sheep, and pork	Authorized: 13 industry and	Total funding (1993):	Domestic promotion (46%)
Commission (1967)	products in both domestic and	independent members (maximum	$63.5 million	Export promotion (7%)
	export markets.	of 15 can be appointed) consisting of		Research (5%)
		of 4 from the producer sector, 4	Assessments (65%)	Services to the industry (23%)
	Conducts research on cattle,	slaughterers, wholesalers, and	Fee and other income (23%)	Services for the government,
	sheep, and pigs.	manufacturers, 2 retailers, and 3	Reimbursement for	such as purchasing meat for
		independent members, including	government services (12%)	the government's Intervention's
	Provides support services to the	the Chairman, Deputy Chairman,		Board (12%)
	meat industry, including meat	and Chairman of the Consumers	Two assessment rates -	Policy, legislation, training, and
	quality and classification.	Committee.	a general assessment and an	communication (5%)
			assessment for specific
	Provides planning, design, and	Industry members are nominated	species promotion.
	project management services to	by industry sectors and appointed
	clients in the meat industry such	by Ministers.  The three	General assessment rates per
	as meat plants.	independent members are	head for 1993 were:
		appointed directly by Ministers.	pigs, $0.556
	Meat industry training courses,		cattle, $2.31
	including the retail, wholesale,		sheep, $0.0391
	and catering sectors.		calves, $0.12.
			Producers pay 50% and
			slaughterhouses and livestock
			exporters pay 50% of the
			general assessment.
			Species assessment rates per
			head for 1993:
			pigs, $0.511
			cattle, $2.61
			sheep, $0.391
			Producers pay 100% of the
			species assessment.
Sea Fish Industry	Promotes sea fish products.	Authorized: Up to 12 industry and	Total funding (1994):	Domestic production (36%)
Authority (1981)		independent members consisting	$13.4 million	Research & development (32%)
	Conducts research on sea fish	of 8 nominated from the sea fish		Other (31%)
	products.	industry, and 4 independent	Assessments (72%)
		members, including the chairman	Government grants and fees
	Trains all sectors of the sea	and the deputy chairman, and 2	for services (8%)
	fish industry.	other members who must be	Other sources (20%)
		independent of any financial or
	Provides financial assistance	commercial interests in the sea	Assessment rates per tonne
	in the form of grants and	fish industry.	of sea fish or sea fish products
	guarantees to the sea fish		landed, imported, or trans-
	industry.	Members are appointed by	shipped within British fishery
		Ministers.	limits for 1994 were:
			whole sea fish, $11.33
			fish fillets, $22.67
			First purchasers pay the
			assessment.
1The average annual exchange rate for 1993 was $1.00 U.S. = A$1.4704 and the rate for 1994 was $1.00 U.S. = A$1.3667.
2Includes gross value of sales from Austdairy, a wholly owned subsidiary of the Australian Dairy Corporation.
3Does not include $1.2 billion in pool payments to growers
4The Australian Government Officials' Scheme ensures that Australian wines are available at overseas embassies for functions to which foreign dignitaries are invited.
5Includes the Australian Government Officials' Scheme.
6The average annual exchange rate for 1994 was $1.00 U.S. = DM 1.6228.
7The CMA board receives guidance from the Sales Promotion Fund Administrative Council, which is composed of government, producer, agricultural industry, and
consumer representatives.
8The GWI is guided by the German Wine Fund Administrative Council (composed of industry and consumer representatives).
9The average annual exchange rate for 1993 was $1.00 U.S. = NZ$1.8495.  For 1994, the average annual exchange rate was $1.00 U.S. = NZ$1.6844.
10The board pays the International Wool Secretariat a fee for product development, wool promotion, and other activities.
11The average annual exchange rate for 1993 was $1.00 U.S. = .6658 British Pound Sterling and the rate for 1994 was $1.00 U.S. = .6529 British Pound Sterling.