Study: Global promotion of Ag exports rising

Mark O'Keefe
U.S. Dairy Export Council

A new economic study projects the European Union will increase expenditures on ag export promotion by 29 percent over three years and that New Zealand and Australia are also ramping up promotions.

A new report analyzes rising investments in export promotion by nine countries, including U.S. dairy competitors EU, New Zealand and Australia. Tom Vilsack is president of the U.S. Dairy Export Council and former Secretary of Agriculture.

While big investments in export promotion are being made by global competitors, the study says U.S. efforts, led by the Foreign Agricultural Service (FAS) may be more effective due to a collaborative approach that focuses on long-term results. 

The 177-page report released last week was conducted by Informa Economics IEG, a global agribusiness research and consulting firm. It was commissioned by the U.S. Dairy Export Council, U.S. Grains Council, U.S. Meat Export Federation, Almond Board of California and Wine Institute.

“This report is a strong reminder that competition is fierce in the global agricultural economy," said Shawna Morris, vice president of trade policy at the U.S. Dairy Export Council.

"Our key dairy competitors are boosting their investments in export promotion.  It’s not a static game out there and we need to make sure we are maximizing our impact on that landscape by devoting the necessary resources to put U.S. dairy exporters in the best possible position to expand sales."  

Global competition of agricultural exports has been increasing in recent years. But there has been a lack of credible information quantifying the extent to which U.S. competitors are investing in promotion.

The study aims to fill that informational vacuum so FAS and U.S. exporters can make more strategic decisions. 

Report Summary

  • The European Union’s funding for export promotion has gone up significantly and will continue to increase.
  • New Zealand market promotion expenditures also are increasing sharply.
  • Australian promotion funding has nearly tripled.
  • Competitor export promotion funding from public sector has increased 72 percent over five years.
  • Export promotion will continue to increase, with China biggest target. 
  • Despite competition, U.S. promotion may be more effective
  • Common cheese names studied in previous report