Commodity
Commodity and Marketing Programs (CMPs)
The CMPs office is in part equivalent to the US&FCS at DOC in terms of marketing assistance programs. The Foreign Market Promotion Programs division and the Agricultural Information and Marketing Service (AIMS) division have been combined under CMP with what is known as the "High-Value Products" division. High-value products are usually completely processed foods such as soup, chocolate, pasta, and so forth. The High-Value Products division's job is to support and assist the international marketing of such products that are largely branded and have a greater job impact because they combine agriculture with manufacturing. CMPs areas of focus break down as follows.
Foreign Market Promotion Program The Foreign Market Promotion Program activity currently has a $30 million budget to support direct promotion of specific commodities through overseas trade fairs and allied activities.
Agricultural Information and Marketing Service (AIMS) The AIMS program is executed through trade shows and missions, plus assistance to individual companies and products, and support from the agricultural trade officers overseas. AIMS programs are available for all agricultural products. See the section on "Government Assistance in Finding Foreign Buyers" in Exporters-sources.com - index page - 9. Specific programs by AIMS are:
• Trade Leads: More than 4000 leads are received and disseminated annually on a daily basis. They are provided in three formats, the weekly FAS publication called Export Briefs, the Journal of Commerce, and by electronic subscription.
• International Food Shows: FAS organizes U.S. pavilions at major international food shows. These pavilions assure good location and identification and can offer substantial cost savings over independent booths as well as logistical help.
• Buyer Alert: International product publicity offered free to U.S. exporters by electronic transmission to approximately 50 foreign markets and monthly in hard copy to 25 other foreign posts. It includes information on the exporter's company, as well as the product being offered.
• Foreign Buyer Lists: AIMS maintains a database of more than 13,000 foreign firms to analyze a possible match with your sales objectives.
• U.S. Supplier Lists: These lists are designed to meet the needs of prospective third-party exporters seeking sources of food and agricultural products.
In addition to the above aids, FAS also publishes: the Agexporter, a monthly magazine for exporters; Foreign Agricultural Circulars, which provide periodic commodity reports on foreign buyer needs (call FAS for the price of individual copies or various subscription rates); How to Get Information on U.S. Agricultural Trade (free); and U.S. Export Sales by Country and Product (free). For more information on FAS Publications, call (202) 447-7937.
Further information or assistance for these Commodity and Marketing Programs can be accessed through the CMP's directors for the six major commodity and marketing divisions, plus the "high-value products" division, each with one deputy director for marketing and one for analysis. These divisions cooperate with various American commodity associations to promote a product overseas and analyze its problems, trends, and competition. The cooperator program is typical of the programs used for this purpose. The product categories with Washington, DC, telephone numbers are:
• Forest products, (202) 447-8138
• Dairy, livestock, and poultry, (202) 447-8031
• Grains and feeds, (202) 447-6219
• Horticultural and tropical products, (202) 447-6590
• Oilseeds and products, (202) 447-7037
• Tobacco, cotton, and seeds, (202) 382-9516
• High-value products, (202) 447-6343
Targeted Export Assistance Program (TEA) TEA primarily supports specialty and horticultural crops and is funded through CCC, but administered through the Commodity and Marketing Programs office. In Section 1124 of the 1985 Food Security Act, the USDA was directed to provide export assistance for agricultural products that were suffering from unfair trade commodity held by the CCC, which is a matter of public record. These certificates are negotiable and fully transferable, and have been known to trade at substantial premiums. Therefore, in knowledgeable hands, an EEP bonus certificate can be as good as cash, or better.
There is a key financial prerequisite to qualifying as an established and experienced trader for an EEP certificate. That is a performance bond required from the exporter, not only to assure CCC that it is dealing with reliable exporters, but to protect itself from damage or loss stemming from the negotiable certificates which it issues. The performance bond might be in one of two forms:
• Option A is to post a bond for 155 percent of the bonus value. The exporter can collect the bonus commodity certificate as soon as the export shipment is made.
• Option B is to post a bond for 55 percent of the bonus. In this event, the exporter will only receive the bonus after proving that the underlying export transaction has reached the foreign buyer, thus delaying payoff and the realization of profits.
The necessity of such performance bonds might require still further help from one of the agencies so far discussed, or from your own state program. For more details contact the Office of General Sales Manager at FAS.
In addition, there are other specialized offices. Some are for short-term support programs, designed to assist a particular industry, as in the case of the Dairy Export Program. Theirs address specific problems, inequities or are for administrative issues. Primarily, these are:
Minority and Small Business Export Program The Minority and Small Business Export Program attempts to provide special assistance to small- and minority-owned agricultural-related businesses in the exporting of agricultural commodities. For more information, call (202) 382-9498.
Label Clearance Program This program enables exporters of branded products to evaluate the acceptability of their labels in specific foreign markets. For more information, call (202) 475-5899.
Management Office Aside from internal and administrative functions, this office includes the staff for compliance review; comparable to the Trade Administration section of DOC.
The CMPs office is in part equivalent to the US&FCS at DOC in terms of marketing assistance programs. The Foreign Market Promotion Programs division and the Agricultural Information and Marketing Service (AIMS) division have been combined under CMP with what is known as the "High-Value Products" division. High-value products are usually completely processed foods such as soup, chocolate, pasta, and so forth. The High-Value Products division's job is to support and assist the international marketing of such products that are largely branded and have a greater job impact because they combine agriculture with manufacturing. CMPs areas of focus break down as follows.
Foreign Market Promotion Program The Foreign Market Promotion Program activity currently has a $30 million budget to support direct promotion of specific commodities through overseas trade fairs and allied activities.
Agricultural Information and Marketing Service (AIMS) The AIMS program is executed through trade shows and missions, plus assistance to individual companies and products, and support from the agricultural trade officers overseas. AIMS programs are available for all agricultural products. See the section on "Government Assistance in Finding Foreign Buyers" in Exporters-sources.com - index page - 9. Specific programs by AIMS are:
• Trade Leads: More than 4000 leads are received and disseminated annually on a daily basis. They are provided in three formats, the weekly FAS publication called Export Briefs, the Journal of Commerce, and by electronic subscription.
• International Food Shows: FAS organizes U.S. pavilions at major international food shows. These pavilions assure good location and identification and can offer substantial cost savings over independent booths as well as logistical help.
• Buyer Alert: International product publicity offered free to U.S. exporters by electronic transmission to approximately 50 foreign markets and monthly in hard copy to 25 other foreign posts. It includes information on the exporter's company, as well as the product being offered.
• Foreign Buyer Lists: AIMS maintains a database of more than 13,000 foreign firms to analyze a possible match with your sales objectives.
• U.S. Supplier Lists: These lists are designed to meet the needs of prospective third-party exporters seeking sources of food and agricultural products.
In addition to the above aids, FAS also publishes: the Agexporter, a monthly magazine for exporters; Foreign Agricultural Circulars, which provide periodic commodity reports on foreign buyer needs (call FAS for the price of individual copies or various subscription rates); How to Get Information on U.S. Agricultural Trade (free); and U.S. Export Sales by Country and Product (free). For more information on FAS Publications, call (202) 447-7937.
Further information or assistance for these Commodity and Marketing Programs can be accessed through the CMP's directors for the six major commodity and marketing divisions, plus the "high-value products" division, each with one deputy director for marketing and one for analysis. These divisions cooperate with various American commodity associations to promote a product overseas and analyze its problems, trends, and competition. The cooperator program is typical of the programs used for this purpose. The product categories with Washington, DC, telephone numbers are:
• Forest products, (202) 447-8138
• Dairy, livestock, and poultry, (202) 447-8031
• Grains and feeds, (202) 447-6219
• Horticultural and tropical products, (202) 447-6590
• Oilseeds and products, (202) 447-7037
• Tobacco, cotton, and seeds, (202) 382-9516
• High-value products, (202) 447-6343
Targeted Export Assistance Program (TEA) TEA primarily supports specialty and horticultural crops and is funded through CCC, but administered through the Commodity and Marketing Programs office. In Section 1124 of the 1985 Food Security Act, the USDA was directed to provide export assistance for agricultural products that were suffering from unfair trade commodity held by the CCC, which is a matter of public record. These certificates are negotiable and fully transferable, and have been known to trade at substantial premiums. Therefore, in knowledgeable hands, an EEP bonus certificate can be as good as cash, or better.
There is a key financial prerequisite to qualifying as an established and experienced trader for an EEP certificate. That is a performance bond required from the exporter, not only to assure CCC that it is dealing with reliable exporters, but to protect itself from damage or loss stemming from the negotiable certificates which it issues. The performance bond might be in one of two forms:
• Option A is to post a bond for 155 percent of the bonus value. The exporter can collect the bonus commodity certificate as soon as the export shipment is made.
• Option B is to post a bond for 55 percent of the bonus. In this event, the exporter will only receive the bonus after proving that the underlying export transaction has reached the foreign buyer, thus delaying payoff and the realization of profits.
The necessity of such performance bonds might require still further help from one of the agencies so far discussed, or from your own state program. For more details contact the Office of General Sales Manager at FAS.
In addition, there are other specialized offices. Some are for short-term support programs, designed to assist a particular industry, as in the case of the Dairy Export Program. Theirs address specific problems, inequities or are for administrative issues. Primarily, these are:
Minority and Small Business Export Program The Minority and Small Business Export Program attempts to provide special assistance to small- and minority-owned agricultural-related businesses in the exporting of agricultural commodities. For more information, call (202) 382-9498.
Label Clearance Program This program enables exporters of branded products to evaluate the acceptability of their labels in specific foreign markets. For more information, call (202) 475-5899.
Management Office Aside from internal and administrative functions, this office includes the staff for compliance review; comparable to the Trade Administration section of DOC.
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