The U.S. Department of Agriculture (USDA) has handed out the fiscal year 2016 award funds for its program for commerical export markets for U.S. goods. This agency news release says the Market Access Program (MAP) will provide more than $170 million that focuses on consumer promotion, including brand promotion for small companies and cooperatives, and is used extensively by organizations promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities.
“USDA continues to expand markets for American goods abroad, work aggressively to break down barriers to trade, and assist U.S. businesses with the resources needed to reach consumers around the world,” said Vilsack. “Together market access and market development activities can help agricultural organizations representing thousands of producers and businesses open and grow markets for American products around the world.”
Under the MAP, FAS will provide $172.8 million for fiscal year 2016 to 62 nonprofit organizations and cooperatives. These organizations use the funds to help U.S. producers with activities to promote their products around the globe. Activities can include market research, technical assistance, and support for participation in trade fairs and exhibits. MAP participants contribute an average 137 percent match for generic marketing and promotion activities and a dollar–for–dollar match for promotion of branded products by small businesses and cooperatives.
Under the [Foreign Market Development Program (FMD)], FAS will allocate $27.5 million for fiscal year 2016 to 23 trade organizations that represent U.S. agricultural producers. The program focuses on generic promotion of U.S. commodities, rather than consumer–oriented promotion of branded products. Preference is given to organizations that represent an entire industry or are nationwide in membership and scope. The organizations, which contribute an average 184 percent cost share, will conduct activities that help maintain or increase demand for U.S. agricultural commodities overseas.
A study from 2010 shows that trade promotion programs like MAP and FMD provide $35 in economic benefits for every one dollar spent by government and industry on market development.