ABSTRACT
Commodity promotion programs involve generic activities designed to enhance market demand for a commodity at the state, regional, national, or international level. Commodity promotion programs in the United States may be divided into two types: those funded by producers of a commodity through a legislated checkoff program or marketing order and those involving the use of public funds. Each commodity promotion organization has its own unique organizational structure. The theoretical basis for commodity promotion programs comes from advertising theory, information theory, demand theory, and the theory of competition. The US Department of Agriculture has modest oversight over commodity promotion programs. The social value of enhancing food and agricultural exports may exceed the returns that would accrue to private domestic exporters and farmers, thus leading to an under-investment in export promotion activities. Export promotion programs are funded by Congress to encourage commodity groups, farmer cooperatives, and other marketing firms to be more aggressive in increasing export volume.
