FAS maintains a unique, long-term partnership with U.S.
agricultural, fish and forest industries, to develop
overseas markets for their products. This relationship
dates back to the first market development program, more
than half a century ago. World markets have changed
considerably since then, and the United States and its
agricultural exporting industries face new and complex
challenges to trade.
In recent decades, FAS market development programs
have been a critical factor in familiarizing the world
with high-quality U.S. products, resulting in the growth
of U.S. agricultural exports. FAS strives to foster
innovation to keep market development efforts relevant
in today’s ever-changing global marketplace.
The Evolution of GBI
Market development has been primarily a
commodity group-by-commodity group
effort. But since 2003, FAS has earmarked a
portion of MAP (the Market Access Program) funds to
encourage multi-market, cross-commodity projects that
address common challenges and opportunities. FAS
approved $5.7 million to fund 24 of these GBI (global
broad-based initiatives) projects in 2003 and 2004.
GBI projects involve multiple MAP participants and
benefit a broad range of products in one or more
markets. These innovative projects may focus on market
access issues, such as the growing concerns surrounding
biotechnology, SPS (sanitary and phytosanitary)
requirements and food safety; market intelligence;
market development; or trade capacity building. Some
projects are affordable only if costs and risks are
spread out over a group of industries and are more
effective and efficient when there is collaboration
among MAP participants and FAS staff.
How a GBI Project Begins
MAP participants submit
GBI projects with their annual Unified Export Strategy
applications for FAS market development programming. In
contrast to typical MAP requests, these projects require
much more planning and coordination with other
organizations, FAS overseas offices and FAS commodity
divisions.
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GBI projects show the virtues of collaboration. |
A 12-person committee representing all FAS program
areas reviews proposals and makes funding
recommendations. FAS offices abroad and technical
experts from other USDA agencies, such as the Animal and
Plant Health Inspection Service, the Food Safety and
Inspection Service and the Food and Drug Administration,
also review as necessary.
Iraq’s Poultry Industry
One far-reaching, ambitious GBI project set out to
rebuild Iraq’s commercial poultry industry. The Iraqi
poultry industry had been growing in the 1980s and Iraq
was a consistent importer of corn supplies, primarily
from the United States. Today, Iraq’s agricultural
infrastructure is in disarray and commercial poultry
production has dramatically decreased even as the
population has steadily grown. Per capita poultry meat
consumption had been 15.3 kg (1 kilogram=2.2046 pounds)
in 1989 and fell to 3.2 kg in 2002.
Rebuilding the Iraqi poultry sector is critical to
Iraq’s economy, necessary to supply the protein
requirements of its population and beneficial to U.S.
trade in poultry food ingredients.
USGC (the U.S. Grains Council) and ASA (the American
Soybean Association) submitted a GBI project that would
help establish and develop the IPPA (Iraqi Poultry
Producers Association). Such an organization is
necessary to work effectively with the government to
address regulations and standards; to establish
commercial contacts to deal with credit and input needs;
and to update management practices through training.
USGC and ASA met with key Iraqi poultry producers who
represent over 80 percent of current production. They
held a workshop on feed formulation and poultry disease
for the Iraqi producers in Amman, Jordan. USGC and ASA
sent the Iraqi steering committee to the World Poultry
Expo in Istanbul, Turkey. The Istanbul visit helped the
Iraqi poultry producers to see new developments in
production, feeding and management. It also helped them
learn how an association can be organized and become the
effective voice of an industry. In addition, they
visited the Moroccan Poultry Producers Association,
spending two weeks studying Morocco’s poultry industry.
The Iraqis framed a constitution for their association,
based upon the Moroccan model. In August 2004, the Iraqi
Ministry of Planning officially registered the IPPA.
This was a critical step to rebuilding the Iraqi poultry
industry.
USGC provided grain inspection training to 20 Iraqi
Ministry of Agriculture staff to help reestablish an
Iraqi inspection service. The creation of the IPPA was
also critical to obtain a Food for Progress program
providing credit for Iraqi poultry producers to purchase
supplies such as chicks, feed and vaccines to get the
industry up and running.
An IPPA team visited Washington, DC, and the Poultry
Exposition in Atlanta, GA, in January 2005, where they
met with major companies supplying poultry breeding
stock, vaccines and equipment. They also learned more
about how U.S. poultry and egg associations are
organized and financed, and how their programs and
services help their members.
Biotechnology Market Research
Another GBI project supported biotechnology market
research in Japan, Mexico, Egypt and Nigeria. The
project took place from April to December 2004 with the
study finalized in February 2005. This
comprehensive initiative addressed important sectors in
these markets, including trade, consumers and
government. Qualitative and quantitative research tools
were used to identify marketing constraints on U.S.
biotech products.
The project was closely coordinated with FAS overseas
offices as well as a broad array of MAP participants and
other agricultural organizations. This research
continues to help the U.S. agricultural community better
understand how biotechnology is perceived in these four
markets.
Chinese Regulatory Project
Another GBI project in 2004 provided training for
Chinese regulatory agency officials in U.S. food safety
and SPS regulations. This program involved 12 U.S.
government agencies in classroom training and on-site
visits.
The Chinese officials came from agencies that
regulate a wide range of imported food and agricultural
products from the United States, including grains,
oilseeds, meats, poultry, cotton, and horticultural and
processed products. About 25 U.S. agricultural trade
groups participated in the project, including ASA, USGC,
the U.S. Wheat Associates, Wine Institute, Western Wood
Products Association, Northwest Horticultural Council,
USDEC (U.S. Dairy Export Council), California Tree Fruit
Agreement, USMEF (U.S. Meat Export Federation), USAPEEC
(USA Poultry and Egg Association) and American Seed
Trade Association. A better mutual understanding of U.S.
and Chinese sanitary and phytosanitary systems and
regulations should eventually result in fewer and less
severe trade disruptions with China.
Caribbean Deli Retail Market and the Virtues of
Collaboration
In the Caribbean, USDEC, USMEF and USAPEEC are
collaborating on a delicatessen retail market project.
This high-value product segment is a growth market in
the region.
This project underscores the synergies of
collaboration. Most MAP participants cannot afford to
invest alone in a region as diverse and complex as the
Caribbean. Working jointly, however, they can plan and
implement market research and hold food safety and
merchandizing seminars and trade missions. They have
produced a training manual and video as part of a deli
management certification program. These materials can be
used throughout the region and are applicable to all
cheeses and deli meats.
The U.S. meat, poultry and dairy industries have an
interest and growth potential in this high-value market
segment, and the various island deli operators benefit
from multiple product line contacts. The success of this
project has generated interest in planning a similar
project for Central America and Mexico.
Another GBI project is investigating
multiple-industry interest in development and training
on cold storage operations in markets where cold storage
limitations constrain U.S. trade opportunities.
A GBI project in Japan is bringing together MAP
participants to more effectively deal with the Japanese
system for food additive approvals. Several MAP
participants are also coordinating activities to
increase awareness and use of U.S. products by private
voluntary organizations. Using MAP funds in these
dynamic, collaborative and imaginative ways is helping
FAS and U.S. agricultural trade associations leverage
their resources and tackle issues with a broader
approach to improve the trading climate for many U.S.
agricultural products.
The author is a special marketing assistant to the
FAS Assistant Deputy Administrator, Commodity and
Marketing Programs. E-mail:
Mary.Ponomarenko@fas.usda.gov