Tallow: Tallow promotion, in cooperation with the National Renderers' Association, has been concentrated in Japan, one of our most important tallow markets. Continuing project activities include market studies and analyses; exchanges of trade personnel; and the promotion of increased soap consumption. Promotional devices used include contests, posters, and advertising through radio, TV, newspapers, magazines, film slides, and advertising bus. In addition, a film has been made for showing in major export markets as a promotional aid. These activities have resulted in an improvement in the quality of tallow exports to Japan, which eliminates claims against U.S. tallow shipments. This program, through a closer working relationship with Japanese officials, was instrumental in tallow being placed on the automatic approval list, thus improving U.S. competitive position with New Zealand and Australia. Improvements in U.S. quality and competitive position have been reflected in substantial quantity increases of U.S. tallow exports to Japan. Lard: In cooperation with the American Meat Institute, marketing surveys and other promotional activities for lard have been undertaken. Main promotional activities were undertaken in West Germany to increase lard consumption, particularly of U.S. high quality lard. Emphasis was placed upon "brand lard" from the United States under an intensive advertising campaign aimed at the consumer. This educational program was effective in improving the “quality consciousness" of the German consumer and thus improved the competitive position of U.S. lard. Livestock breeding stock: Livestock specialists are being sent abroad under a cooperative program with various U.S. livestock breed associations to promote the sale of U.S. breeding stock. Foreign currencies are used to pay transportation costs for specialists provided by the cooperating groups in the United States. The cooperating groups abroad provide local transportation and other project costs. Livestock specialists judge shows abroad, explain U.S. breed characteristics and advantages, and provide the point of contact for export sales of U.S. breeding stock. Another phase of our livestock market development program consists of providing assistance to livestock purchase missions from foreign countries. Specific project results from this type of activity include removal of import bans, reduction in import duties, and substantial decreases in prior deposit requirements for breeding livestock by Colombia. A livestock purchase mission from Chile, and one from Colombia bought approximately $200,000 worth of hogs, sheep, and dairy and beef breeding stock. Similar projects in Ecuador are expected to result in the sale of $100,000 worth of U.S. beef breeding cattle and 450 head of purebred sheep. Hides and skins: Efforts to promote exports of hides and skins, in cooperation with the American National Cattlemen's Association, the National Hide Association, the National Independent Meat Packers' Association, and the Western States Meat Packers' Association, have thus far been devoted primarily to market studies and the development of trade contacts. The adoption of recommendations to purchase U.S. hides on a selected basis results in substantial improvement of U.S. export practices. Continued discussions with Japanese officials also resulted in hides and skins being placed on the automatic approval list, thus improving the U.S. position in relation to our competitors-New Zealand and Australia. These studies also indicated that U.S. exports of hides and skins to Japan (our leading export market) might be doubled in a 10-year period by effective promotional efforts. Such a program has recently been initiated. (g) Tobacco promotion.-Cooperative projects have been entered into or are planned with the Burley and Dark Leaf Export Association, the Leaf Tobacco Exporters' Association, and Tobacco Associates for work in 18 countries. Two types of project activities are carried out: Marketing research and surveys and intensive promotional campaigns. Marketing research and surveys serve two purposes: (1) to ascertain promotional possibilities, and (2) to provide needed trade information such as consumer preference, market information, and trade organization and structure and preference. Exchanges of trade personnel and information have been included in these project activities. Particular success has derived from exchange of trade personnal. Increased foreign sales have occurred in nearly every case. Promotional efforts presently concentrated in four countries offering best opportunities; France, Japan, Thailand, and Burma. For each country, U.S. cooperators work with the tobacco monopoly or trade groups concerned in carrying out intensive promotional campaigns using the following techniques: “brand” promotion of cigarettes containing U.S. leaf; the improvement of tobacco handling, blending, and processing to produce a better cigarette; and exchanges of trade personnel and information. "Brand" promotion is carried out through contests; advertising, by radio, news media, trade journals, and posters; and other direct consumer appeals. A similar program is planned in Egypt for fiscal 1962. Specific results to which promotional activities have contributed include: an increase from 7 billion pieces to 7.6 billion pieces yearly for "Royale" and "Gitanes" cigarette sales in France, cigarettes containing 65 percent and 10 percent U.S. leaf, respectively; a sales increase from 7.2 to 13 billion pieces of "Peace" cigarettes per year in Japan, the leader among American-type cigarettes containing 25 percent U.S. leaf; an increase from 46.9 billion pieces to 85.6 billion pieces yearly for "Gold City" cigarette sales in Thailand, a brand containing 100 percent U.S. leaf; and preliminary reports from Burma, a new program, indicate both increased cigarette sales and a decrease in U.S. tobacco import duties from 200 percent to 100 percent ad valorem. (h) International trade fairs.-Under international trade fair activities, FAS organizes and manages exhibits under a cooperative program with the U.S. Department of Commerce. U.S. trade, agricultural, and industry groups participate by supplying exhibit ideas and materials and technical personnel to man exhibits and carry out other promotional activities in connection with displays. Through taking part in 60 international exhibits through fiscal year 1960, FAS and participating U.S. groups have made direct promotional contacts with some 26 million tradesmen and consumers abroad in 17 countries. Trade fair exhibits serve both to promote commodities through displays and demonstrations and serve as an operational base from which participating U.S. trade groups may undertake additional promotional or sales activities. Samples of U.S. farm products are distributed as a feature of these exhibits. The exhibits thus give many people abroad their first opportunity to see and taste American food products. During the 1960 fiscal year nine international trade fairs and seven local mobile exhibits were held as follows: "Market development portion of fair exhibit is discussed in more detail in connection with the 104(m) agricultural and horticultural exhibition on p. 87. (i) Other projects and activities.-FAS undertakes projects directly in cases where the work is considered desirable and where it is impracticable to operate the project on a cooperative basis through a nongovernmental trade group. Whenever the work can be done more effectively or more economically, the projects are carried out through contracts with United States or foreign organizations. In cases where FAS operates a project directly, interested trade groups are consulted and informed of results. Principal types of FAS projects which are being carried out include: marketing studies and analyses; personnel exchanges; long-range studies of supply and demand; analyses of the economic effects of title I, Public Law 480 programs; evaluations of section 104(a) activities; and surveys of consumer expenditures. The four latter categories account for most of the amount requested for these projects. Long-range studies of supply and demand underway or planned for 21 countries are comprehensive economic studies which usually include consumer preference for food, fiber, and tobacco; food consumption patterns at different income levels; and long-term projections of supply and demand for agricultural commodities with particular emphasis on the types available for export from the United States. Studies of the economic effects of title I studies undertaken or planned in five countries are expected to gage economic development effects as guides to market development. Evaluations of section 104 (a) projects planned or underway in three countries are expected to lead to a better method of project evaluation. Surveys of consumer expenditures are planned for three countries and are expected to indicate shifts in consumption as a factor in food and import needs. Work in these three categories is generally contracted out to qualified firms operating in the countries in which work is undertaken. Results of these studies are expected to assist in the development of foreign markets and to serve as the basis for planning future promotional work. 5. Financing.-Foreign currencies obligated for market development by the Foreign Agricultural Service since the beginning of the program and dollar values contributed by the cooperators are summarized by fiscal year as follows: [Thousands of dollars] Dollar costs of the Foreign Agricultural Service in direct support of the market development program were $214,000 in 1959, $238,000 in 1960, and are estimated to amount to about $321,000 in 1961 and $321,000 in 1962. Table 1 attached shows actual obligations in dollar equivalents of foreign currencies by country from the beginning of the program through fiscal year 1960, and estimated obligations for 1961 under sections 104 (a), (f), and (m) of Public Law 480. The estimated obligations for 1962 are shown divided according to the proposed dollar use and foreign currency use. Table 2 shows obligation by commodity and miscellaneous projects and cooperators' contributions from the beginning of the program through June 30, 1960. 6. Agricultural and horticultural exhibitions The U.S. Department of Agriculture participated in three exhibitions in the fiscal year 1960 under section 104 (m) (B) of Public Law 480. The major effort was in New Delhi, India, where the United States put on a large exhibit at the world agricultural fair. Other exhibits were at the "Floriade," a world horticultural exhibition at Rotterdam, Netherlands, and Green Week (Gruene Woche) at Berlin, Germany. (a) World Agricultural Fair, New Delhi, India, December 11, 1959, through February 29, 1960.-This international food and agricultural show lasted over 22 months. It was the first worldwide fair devoted entirely to agriculture and drew major exhibits from many of the leading countries of the world, both the free world and the Communist bloc. The U.S. exhibit, of over 100,000 square feet of space, was opened by President Eisenhower. In addition to the Department of Agriculture, the Department of Commerce, the U.S. Information Agency, and the Atomic Energy Commission participated. The U.S. exhibit undertook to show the technological revolution in American agriculture and the agricultural productivity borne of an essentially free enterprise system. A large terrain model of an agricultural community introduced the exhibit and established the American farmer in his natural community environment. Subsequent displays included research, natural resources, production, extension service, farm organizations, marketing, community life, and the farm home. Various crops were used to illustrate these phases. The exhibit included good displays of farm machinery (large and small), agricultural chemicals, fertilizers, and other aspects of the industry which supports U.S. agriculture. U.S. technicians were on hand to explain the various aspects and were ably assisted by U.S. 4-H Club members, a county and home demonstration agent and representatives of agricultural industry. The exhibit also contributed toward the market development program and part of the costs were financed with 104(a) foreign currencies. The exhibit was attended by approximately 3,300,000 people and was acclaimed by many Indian leaders as the outstanding exhibit of the fair. (b) Floriade International Horticultural Exhibition, Rotterdam, the Netherlands, March 25 through September 26, 1960.-This exhibit was put on by the American Horticultural Council under a cooperative agreement with the Foreign Agricultural Service. The purpose of the exhibit was to demonstrate to the people of Europe the important contribution being made by U.S. horticulture to the world, as well as to the American way of life. The centerpiece of the exhibit was a small, prefabricated, modern, American home, complete with a garden, which incorporated a variety of edible and ornamental plants. There was a scientific section which demonstrated the work being done by such organizations as the USDA Plant Research Station at Beltsville. Boyce-Thompson Institute, Brookhaven National Laboratory, etc. An educational section covered the work of leading universities and other horticultural organizations. A second building housed many of these exhibits, along with a complete U.S. garden shop which displayed the various tools, seed, plants, etc., available to the U.S. gardener. The exhibit was a major attraction for tourists throughout the period of the show and drew visitors from all over Europe as well as many other countries. Attendance at the U.S. exhibit was between 1 and 2 million. (c) Green Week (Gruene Woche), Berlin, Germany, January 29 through February 7, 1960.-This is the second successive year in which the United States has participated in Gruene Woche, the annual international agricultural garden exhibition. The U.S. exhibit was designed to describe how American rural people live and farm. A series of sets was constructed depicting various aspects of farm -life. The American farmer, his wife, his son, his daughter, and a county agent (portrayed by German actors) explained each phase. The county agent stood on an elevated platform in the middle of the several individual stages and turned the floodlights and the attention of the crowd successfully to the various sets-farmstead, feeds, poultry, machinery, livestock, dairying, and kitchen and convenience foods. The fair was attended by 468,000 people and at least 200,000 to 300.000 visited the U.S. exhibit. All reporters described the exhibit as an outstanding success in its major objective of conveying the virtues of democratic institutions. (d) Program responsibility transferred.-Responsibility for participation in agricultural and horticultural exhibitions, for foreign policy reasons, was transferred by Executive Order 10900 dated January 5, 1961, from the Department of Agriculture to the U.S. Information Agency. |