THE CASE OF U.S. MEAT EXPORTS

International Relations/Trade, Livestock Production/Industries,

The Economic Effectiveness of the Cotton Checkoff Program

This report is an empirical analysis of the effectiveness of the marketing/promotion, nonagricultural research, and agricultural research activities associated with the cotton checkoff program over the period of 1986/87 through 2004/05. The analysis is based on a multi-equation, econometric, non-spatial, price equilibrium simulation model of U.S. and foreign fiber markets using annual data. The key average annual impacts of the cotton checkoff program on U.S. and foreign cotton and man-made fiber markets and their associated textile markets are reported. The results show that the returns to cotton producers as well as to cotton importers from the cotton checkoff program are positive. The average discounted benefit-cost ratios (BCR) for the cotton checkoff program were found to be 5.7 for domestic cotton producers and 14.4 for importers. The higher BCR for importers reflects revenue gains not only from additional sales of cotton fiber textiles but also from additional “spillover” sales of man-made fiber textiles prompted by the cotton checkoff program. The results also show that U.S. taxpayers are better off because the cotton checkoff program has tended to reduce government outlays directed to cotton farmers. The analysis also finds that neither U.S. producers nor importers pay the full cost of the checkoff assessments. Finally, cotton checkoff expenditures on agricultural research were found to have positively and significantly affected U.S. cotton yields with no discernible effects on cotton harvested acreage.Cotton, Cotton Checkoff, Checkoff Program, Cotton Program, Crop Production/Industries, Demand and Price Analysis, Marketing,

Is Lamb Promotion Working?

This objective of this study is to determine whether the advertising and promotion dollars collected and spent by the American Lamb Board on lamb promotion since the inception of the Lamb Checkoff Program have effectively increased lamb consumption in the United States. The main conclusion is that program has resulted in roughly 7.6 additional pounds of total lamb consumption per dollar spent on advertising and promotion and $41.59 in additional lamb sales per dollar spent on advertising and promotion.Lamb, Lamb Promotion, Livestock Production/Industries, Marketing,

Mexican Agricultural and Food Export Competitiveness

This report analyzes the export performance of the Mexican agricultural and food sector in recent years with a particular emphasis on the changing competitiveness of those exports in the U.S. and world markets. The report includes an examination of the general trends in Mexican agricultural and food exports, an analysis of the international competitiveness of the major subgroups of Mexican agriculture based on the Revealed Comparative Advantage methodology, an assessment of the competitiveness of Mexican exports of specific agricultural and food products to the United States, a consideration of the effectiveness of Mexico’s agricultural and food export market diversification efforts, a discussion of the main factors likely to affect the long-term competitiveness of Mexican agriculture, and policy recommendations for enhancing the competitiveness of Mexican agricultural and food exports.Mexican, Exports, Food Export, Mexican Food, Competitiveness, International Development, International Relations/Trade,

Measuring the Effectiveness of Checkoff Programs

Marketing, Q13, M31, M37,

Measuring the Effectiveness of Lamb Advertising and Promotion: An Updated Analysis

This report updates a previous tentative analysis of the effectiveness of the Lamb Checkoff Program in shifting out the demand for American lamb. The main conclusion is that program has resulted in roughly 8.4 additional pounds of total lamb consumption per dollar spent on advertising and promotion and $44.60 in additional lamb sales per dollar spent on advertising and promotion.Lamb, Advertising, Lamb Promotion, Livestock Production/Industries, Marketing,

Returns to Soybean Producers from Investments in Promotion and Research

U.S. soybean producers have been cooperatively investing in both production research and demand promotion for nearly four decades to enhance the profitability and international competitiveness of their industry. Have producers benefitted from their contributions to soybean checkoff program activities over the years? How has the return to investments in soybean production research compared to that of soybean demand promotion investments? The overall positive returns to producers over the study period resulted primarily from promotion activities. Production research contributed negatively to overall producer returns from soybean checkoff investments.Agribusiness,

Japanese Beef Policy and GATT Negotiations: An Analysis of Reducing Assistance to Beef Producers

International Development, Livestock Production/Industries,

ANALYSIS OF MARKETING MARGINS IN THE U.S. LAMB INDUSTRY

Factors affecting marketing margins were identified and assessed using a relative price spread technique. Margins were disaggregated into slaughter-to-wholesale and wholesale-to-retail for a more complete understanding. Marketing costs, concentration, demand, and price were used to explain variations within these margins. Results showed that packer concentration had a significant effect on margins. Forces of supply and demand (as represented by production and market price) and changes in marketing costs also explained the variation in margins. A higher degree of price transmission from slaughter-to-wholesale level was observed in comparison to the wholesale-to-retail level.Marketing,

Is the Soybean Checkoff Program Working?

The primary objective of this study is to answer two key questions regarding the U.S. soybean checkoff program over time: (1) What have been the effects of the soybean checkoff program on U.S. and world soybean and soybean product markets? (2) Has the soybean checkoff program benefited soybean producers? To answer the first key question, the effects of the soybean checkoff program on U.S. and foreign soybean, soybean meal, and soybean oil supplies, demands, prices, and trade over the 1980/81 through 2006/07 time period are measured. Those results are then used to answer the second question in a benefit-cost analysis of the soybean checkoff program to measure the overall return to producers from soybean checkoff and related expenditures over the years. In general, the study concludes that the expenditure of soybean checkoff funds to invest in production research and to promote the demand for soybeans and soybean products at home and abroad has been highly effective in enhancing the profitability, competiveness, and size of the U.S. soybean industry since at least 1980/81.Soybean, Soybean Checkoff, Crop Production/Industries, Demand and Price Analysis, Marketing, Productivity Analysis,