COMPETITORS' 1996 BUDGETS FOR AGRICULTURAL
EXPORT MARKET PROMOTION⁽¹⁾ AND EXPORT SUBSIDIES⁽²⁾

Table 1 summarizes competitor market promotion and direct export subsidy expenditures by country. The market promotion expenditures presented in Table 1 attempt to replicate U.S. expenditures for the USDA Foreign Market Development and Market Access Programs. Unless expressly stated, the market promotion expenditure estimates exclude expenditures for the operation of overseas offices and the statistical reporting-type activities of foreign government agencies involved in export promotion. Market promotion expenditures do not capture the costs associated with regional or local government promotions because this information usually is unavailable to the FAS Posts.

Table 1 also includes estimates of direct export subsidies for the EU, India, Norway, South Africa, Thailand and Turkey. Direct export subsidies in Table 1 are estimated at $9.135 billion compared with market promotion expenditures of an estimated $745.3 million.

(In millions of U.S. dollars)

END NOTES ON GOVERNMENT EXPENDITURE CALCULATIONS FOR TABLE 1

(Report numbers refer to USDA/FAS Agricultural Attache Reports submitted in 1996. See reports and additional communication for full details.)

EU Competition: Based on information from the EU budget guidance, EU direct export subsidies were estimated at $9 billion in 1996.

Denmark: From report DA6003 and additional communication - Agricultural Marketing Board 1995 expenditures were $9.6 million of which $2.7 million is government-financed. Commodity export boards 1995 expenditures totaled $17.5 million. Exchange rate: $1=5.6 DKK.

France: From report FR6027, FR6066 and additional communication - The private sector contribution to SOPEXA for export promotion was $44.2 million in 1995. The government contribution to SOPEXA for export promotion activities was $35.4 million. Exchange rate: $1=FF4.99.

Germany: From report GM6023 - CMA's estimated 1995 budget for export promotion was $29 million. The budgets for the Wine Marketing Board and Wine Institute totaled $5 million. The Forestry Marketing Board export promotion budget was $650,000 in 1995. All funding is provided by members of marketing boards. Exchange rate: $1=DM1.43. All funding is in dollars.

Greece: From report GR6008, government contributions to the Hellenic Trade Board, a quasi-governemnt organization, totaled $9.5 million. Private industry contributions totaled $2.3 million. All expenditures were listed in dollars. Exchange rate: $1=240 drachmas.

Ireland: from report EI6012 and additional communication - 1996 government appropriations to the Irish Food Board (ABB) are $11.2 million of which 80 percent ($8.9 million) go to export promotion. EU infrastructural development funds to the ABB total $11.8 million for 1996. In addition, post estimates export market development share of Irish Fisheries Board promotion funds at $473,000 for 1996. Assessments on cattle, hog and sheep producers contributed to export promotions by the ABB were estimated at $7.2 million, while assessments on dairy producers through the Irish Dairy Board are estimated at $4 million. Funding from producer levies for other producer organizations supplements government funding; however, estimates of these producer assessments are not available. Exchange rate: IRP1=$1.58.

Italy: From report IT6018 and additional communication - 1996 total government allocation to market promotion was $15.4 million (page 6, paragraph 4). Regional government funding from Emilia Romana was $2.5 million. Exchange rate: $1=LIRE 1,560.

Netherlands: From report NL5060 - From Table III (page 4), promotion funds for 1994 were $5.4 million from the Ministry of Agriculture Budget for promotion, plus $73.4 million from producer levies administered by commodity promotion boards. All expenditures were expressed in U.S. dollars. Exchange rate: $1 = DFL 1.6

Spain: From SP6011, government expenditure on agricultural export promotion is budgeted at $47 million in 1996. Private industry funding through ACEX was estimated at $500,000. All expenditures were expressed in U.S. dollars.

United Kingdom: From communications with the post of 8/5/96 and 8/21/96 - Food from Britain's 1994/95 annual expenditures for agricultural export promotion were estimated at $15 million, of which $7.9 million were from British government funding and $7.1 million were from industry funds, including memberships and fees from trade shows, publications, and consultancy fees. Meat and Livestock Commission expenditures totaled $5.4 million for 1995. Exchange rate: BPS1 = $1.5.

Other Competitors:

Argentina: From report AR9631 and additional communication, government funding for export market promotion through PROMEX, the promoter of non-traditional exports, and PROCAR, the government beef promotion agency, is estimated at $10 million in 1995. No estimate of private industry expenditures was available. Promotion funding levels were expressed in U.S. dollars.

Australia: From AS6025 and additional communication: AWB, A$3.2 million (US$2.5 million); AWRAP, A$75.5 million in 1994/95 (US$58.9 million); ADC, A$5.7 million in 1994/95 (US$4.5 million); AWBC, A$2.6 million in 1994/95 (US$2.2 million); AMLC, A$44 million in 1994/95 (US$34.3 million); AHC, A$0.7 million in 1994/95 (US$0.56 million); and ADFB, A$0.27 million in 1994/95 ($0.2 million). Total industry funding is estimated at US$102.6 million at an exchange rate of A$1=US$0.78. Government grants under EMD and IAMP were estimated at A$44.2 million in 1994/95 (US$34.5 million). Total promotion funding is estimated at US$137 million.

Brazil: From report BR6610 and additional communication - For 1996, government funding was $240,000 and industry funding totaled $1.3 million. Total funding for export promotion was $1.6 million. All expenditures were expressed in U.S. dollars.

Canada: From report CA6018 and additional communication - For 1996, US$12.3 million for federal and provincial government funding including government contribution to the International Grains Institute in 1995/96. Also, US$12.2 million in industry funds. Total Canadian funding for export market development is US$24.5 million. Exchange rate: C$0.7285=US$1.

Chile: From report CI6011 - Total funding is $17.4 million. Export Promotion Fund of $7.1 million plus about one-third of $10 million from ProChile's traditional agricultural promotion funding ($3.3 million) for a total of $10.4 million in government appropriations for CY1996. $7 million is expected from private sector associations and individual firms. All expenditures were expressed in U.S. dollars.

China: From report CH6016 - No estimates of promotion expenditures.

India: From report IN6020 and additional communication - 1994/95 spending on export market promotion totaled $13.9 million: $10.6 million from the government and $3.3 million from the private sector. India's transportation subsidies for fruits were estimated at $1.1 million in 1995. All expenditures are expressed in US dollars.

Japan: From report JA6506, export promotion funding for several government projects were estimated at $3.1 million.

Korea: From report KS6024, government assistance to Korean companies participating in trade shows was estimated at $1.4 million for 1996.

New Zealand: From report NZ6010 and additional communication - Government funding is US$3.9 million. Producer levies were estimated at NZ$1139.5 million. Total New Zealand promotion funds are $143.4 million for 1995. The exchange rate is:NZ$1 = US$0.6324.

Norway: From report NO6003, funding for the Norwegian Seafood Export Council was estimated at $20.5 million for 1995 (including administrative expenses). Although the Council is an industry association, financing comes from a levy on exports of fish and seafood, which is collected by the government.

South Africa: From report SF6010 and other information, no reliable estimates of government assistance to export market promotion were available. South Africa's direct export subsidies under the GEIS program were estimated at $15 million in 1995.

Thailand: From report TH6028, a government market research project to study consumer tastes for rice in several European countries and the US was estimated at $1.6 million in 1996. Thailand's direct export subsidies for rice sales were estimated at $6 million for 1995.

Turkey: From report TU6017 - IGEME's 1996 budget is estimated at about $1 million. Industry promotion expenditures are estimated at $19.7 million. Total funding is estimated at $20.7 million.

Information on the FAO programs came from communication with FAO staff and Ron Ward, "Commodity Promotion: A Global View," in Ferrero, Ackerman, and Nichols, Agricultural Commodity Promotion Policies in the Global Agri-Food System. 1996.

Information for this report also was obtained from various Internet sites and other published sources.

1. Market promotion expenditures are for the most recent full year available and are drawn from 1996 FAS Posts' Special Request cables, additional communications with the Posts and other information. In most cases, the numbers are 1995 or 1996 budgets for national promotion agencies and producer boards. Posts do not have access to regional and local government promotion expenditures. The methodology for determining the breakdown of export market development funding is outlined in the "end notes" at the end of this report.

2. Direct export subsidies included in this table are an estimated: $9 billion budgeted by the EU for export subsidies in 1996; $1.1 million for 1994/95 Indian fruit export transportation subsidies; $83 million for 1995 Norwegian export subsidies for meat and dairy products; $15 million for 1995 South African agricultural product export subsidies; $6 million for Thailand's 1995 rice export subsidies: and $30 million for Turkey's 1996 agricultural export subsidies. Estimated export subsidies totaled $9.135 billion as compared with $745.3 million in export market promotion expenditures.

3. 1995 government and industry expenditures were slightly lower than 1994 expenditures, but a declining Danish kroner/U.S. dollar exchange rate caused 1995 expenditures to be higher when expressed in dollars.

Last modified: Monday, August 29, 2005