January 28, 2010

US earmarks US$234 million to promote agricultural exports

Agriculture Secretary Tom Vilsack has announced the allocation of US$234.5 million to 70 US trade organisations to help promote US food and agricultural products overseas.

Vilsack said they must provide exporters with the required resources to compete overseas considering today's highly competitive international markets.

The current global financial crisis, rising production in key competitor countries and aggressive use of export promotion tools by competitors make USDA's market development programmes more important than ever, said Vilsack.

The funding was allocated under the Market Access Programme (MAP) and the Foreign Market Development (FMD) Cooperator Programme, both administered by USDA's Foreign Agricultural Service (FAS).

The MAP uses funds from USDA's Commodity Credit Corporation (CCC) to share the costs of overseas market development and promotional activities with US nonprofit agricultural trade organisations, state regional trade groups, and cooperatives. Activities conducted with MAP funding include market research, consumer promotions for retail products, technical capacity building, and seminars to educate overseas customers.

Under the FMD programme, USDA's CCC establishes a partnership with nonprofit US agricultural trade organisations. Funding priority is given to organisations that represent an entire industry or are nationwide in membership and scope. Programme activities focus on reducing market impediments, improving the processing capabilities of importers, modifying restrictive regulatory codes and standards in foreign markets, and identifying new markets or uses for US products.