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THE COMPETITION IN 1997
U.S. and
Competitor Expenditures on Export Promotion and
Export Subsidies for Agricultural, Forestry and Fishery Products
Greece
The Hellenic Foreign Trade Board, a quasi-government organization, includes marketing and promotional activities in its annually submitted business plan. Three-fifths of the Board’s annual budget covers promotional activities; two-fifths covers exhibitions. In 1996 the Board spent approximately $16 million on these programs. Twenty percent of the Trade Board’s funding comes from the private sector, and eighty percent from EU regional support (infrastructural) funds aimed at the less affluent Target 1 countries such as Greece and Portugal. The Ministry of National Economy has overall control of the funding. The action plan of the Board includes promotion of products and services, market surveys, support and counsel of exporting firms, and training. In 1996 the Trade Board promoted olive oil, marble, jewelry, pasta, wine and ouzo. Beginning in 1997 it expanded its promotions to include farm-raised fish, and horticultural and dairy products. In addition to Trade Board programs, Greek agricultural exporters spend about $3 million on export promotion.
Greece is the chief EU producer of extra virgin olive oil and ranks third, after Spain and Italy, in total olive oil production. Hellenic Board activities to promote olive oil involve improved packaging and targeted promotion of olive oil in the United States, where Italy, Spain and Turkey dominate the market. Greece hopes to increase its current 5-percent share of the U.S. olive oil market. The budget for the U.S. olive oil campaign is $4 million dollars annually for 3 years (1996-98) In the future, Australia and England will be included in the program. In addition, pasta, olives, dairy and confectionery products were promoted in the United States in 1997.
Greek wine producers have targeted Germany for wine promotions. Campaign costs are estimated at $2 million annually for a 3-year advertising campaign (1994-1997). Germany is also the target market for ouzo with $1.5 million budgeted annually for a 3-year promotional and advertising campaign (1994/97).
The Hellenic Trade Board also coordinates Greek participation in exhibits abroad. In 1996, the Board spent $7.8 million, of which 55 percent was covered by the Board's funds and the remaining 45 percent by individual companies which participated in the Board's pavilion. About $5 million of this amount was spent on agricultural and food-products and was included in Table 1.
The Trade Board also operates a training program for employees of companies involved in exporting and for unemployed university graduates. This program is financed by EU funds provided through the Ministry of Labor. In 1996 it was budgeted at $1.1 million. This amount is not included in Table 1 since it is not a direct expenditure on promotion.
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