Expenditures and Activities of
European Union (EU) Member Countries
German Promotion Activity The primary market promotion organization is the Central Marketing Organization of German Agriculture (CMA). Another market promotion organization is the Wine Institute. Both are quasi-governmental (they exist because of legislation), autonomous organizations that conduct promotional activities for the domestic German market as well as for export markets. Since 1998, generic marketing for fish products has been carried out by the Fish Information Center. Funds of less than DM 1 million were generated from voluntary contributions by the fish industry. There are no governmentally run market development organizations in Germany, nor are there any national export subsidies, credit programs or transport subsidies for agricultural commodities. Some states have minimal budgets for export promotion.
The CMA has an estimated CY 1999 budget of $112.1 million. Expenditures for promotion are estimated at $82.6 million and consist of press and public relations, as well as domestic and export marketing. For 1999, the estimate for generic marketing totals $40.7 million. Marketing services include, among others, market training, market research, trade shows, sales promotion and PR, and funds are estimated at $25.5 million. Export marketing consists of expenditures for offices, export preparations, trade shows, sales promotion, advertising and special marketing and is estimated at $15.8 million. Approximately 70 percent of funds earmarked for export promotion is for promotion to other EU countries and 30 percent to third countries.
Germany is one of the world's top importers of agricultural and wood products and an attractive market. In CY 1998, Germany imported $44.9 billion (excluding pulp), of which about 61 percent came from other EU countries. The United States provided $2 billion worth, or about 4.3 percent.
Competitor market promotion activities conducted in Germany target other EU competitors, not the United States, whose market share in selected commodity groups is minimal. The United States dominates sales of oilseeds (primarily soybeans) and nuts (primarily almonds), for which there is a price/availability advantage over competitors. France is a major supplier of agricultural products valued at $7.1 billion in 1998, compared to $5.1 in the previous year. SOPEXA, the French market promotion organization, has an office in Düsseldorf. Promotion activities focus on wine, cheese, meat, fresh and dried fruit, vegetables and seafood. The French budget in 1998 for promotion including trade shows in Germany was DM13.88 million (US$7.9 million) compared to DM22.3 million in the year before.
Italy promotes its agricultural products, mostly wine and olive oil, through the Italian Institute for Foreign Trade (I.C.E) under the auspices of the Italian Trade Commission. Spain’s Instituto de Comercio Exterior (ICEX) is the state promotion arm for agricultural products. In Germany, ICEX promotes oranges, wine and some vegetables. Bord Bia, the Irish Food Board, a semi-state organization, promotes Irish foods and drink. In Germany, it focuses on promoting Irish beef, pork, and lamb products. The Norwegian Seafood Export Council (EFF), the Norwegian fisheries industry’s combined marketing and information agency, aims to increase interest for and awareness of Norwegian seafood in Norway and the rest of the world. Germany imports 80 percent of total consumption of raw fish and fish products. Norway supplies most of Germany’s demand for fish, 75 percent of which is for salmon.