Using Marketing Programs to Strengthen
NAFTA
Lloyd C. Day, Administrator
USDA Agricultural Marketing Service
NAAMIC
Annual Workshop
June 15, 2007
What is the Agricultural Marketing Service?
Our Mission
To facilitate the strategic marketing of agricultural products in
domestic and international markets.
What we do
 Research and Promotion
 Grading and Product Certification Services
 Commodity Standards
 Marketing Orders
 International Standards
 Market News and Market Reports
 Process Verification Programs
 Marketing Agreements and Orders
 Commodity Purchases for Federal Food Programs
 Data Collection and Analysis
 National Organic Program
 Transportation Services
 Wholesale and Farmers Market Development
 Regulatory Programs
Research and Promotion Programs
Definition
Research and promotion programs help to expand,
maintain, and develop markets for individual agricultural
commodities in the United States and abroad. These
programs are requested, administered, and funded by the
industries themselves and work to conduct promotion,
market research, production research, and new product
development under the supervision of the Agricultural
Marketing Service.
AMS Research and Promotion Programs
 Cotton
 Dairy
 Egg
 Cultivated blueberries
 Hass avocados
 Honey
 Mangos
 Mushrooms
 Peanuts
 Popcorn
 Potatoes
 Watermelon
 Beef
 Lamb
 Mohair
 Pork
 Soybeans
Beef Research and Promotion Program
Major Provisions and Objectives
 Strengthen the position of beef in the marketplace
 Maintain and expand domestic and foreign markets and
uses for beef and beef products
 Mandatory assessment of $1-per-head collected each time
cattle are sold
 Assessments under this program used to fund
promotional campaigns and conduct research studies
Organizational Structure
 Administered by the Cattlemen's Beef Promotion and
Research Board
 Each year, the Secretary appoints one-third of all Board
members from cattle producers and importers nominated by
eligible organizations
Cotton Research and Promotion Program
Major Provisions and Objectives
 Strengthen the competitive position of cotton by expanding
domestic and foreign markets, improving fiber quality, and
lowering costs of production
 Assessments are levied on each bale or bale equivalent of
cotton at a rate of $1 per bale with a supplemental
assessment not to exceed one percent of the value of lint
of each bale
Organizational Structure
 Administered by the Cotton Board
 Members serve 3-year terms and are appointed by the
Secretary of Agriculture from nominations submitted by
certified cotton producer and importer organizations
 Contracts with Cotton Incorporated, to develop and establish
research and promotion programs
Grade Shields and the International Market
Official Grades and Standards
 Provide a common language for commerce
 Assure buyers and sellers of uniform quality and condition
 Are used as a basis of trade both in the U.S. and overseas
Grade Shields: What Do They Mean?
USDA Meat Grades
 Ultimate in tenderness, juiciness,
and flavor
 Has abundant marbling
 Very high quality
 Less marbling than Prime
 Very uniform in quality
 Somewhat leaner than the higher grades
 Fairly tender, but, because it has less
marbling, it may lack some of the juiciness
and flavor of the higher grades.
Grade Shields: What Do They Mean?
USDA Egg Grades
 Whites that are thick and firm
 Yolks that are high, round, and
practically free from defects
 Shells that are clean and unbroken
 Whites that are reasonably firm
 Yolks that are high, round, and
practically free from defects
 Shells that are clean and unbroken
 Quality most often sold in stores
USDA Poultry Grades
 Highest poultry quality
 Defined in terms of meat yield, fat covering,
and freedom from defects
 This is the only grade sold in stores
Grade Shields: What Do They Mean?
USDA Fruit and Vegetable Grades
Fresh fruit grade designations are most often seen on
packages of pears and apples. Fresh vegetable grade
designations are most often seen on packages of
potatoes and onions. Other fruits and vegetables
occasionally carry the grade name.
U.S. Fancy
 Premium quality
 Only a small percentage of fruits are packed in this grade
 U.S. Fancy vegetables are of more uniform shape and
have fewer defects than U.S. No. 1.
U.S. No. 1
 Good quality
 The most commonly used grade for most fruits
 U.S. No. 1 vegetables should be tender and freshappearing, have good color, and be relatively free from
bruises and decay. This is the grade you will see most often.
AMS Marketing Orders
Objectives
 Assure producers a reasonable price for their
products throughout the year
 Assure consumers of an adequate supply of products
 Help prevent wild fluctuation in price through periods
of heavy and light production
 Establish and maintain appropriate research and
product development projects and promotion activities
Current Marketing Orders Include
 Avocados
 Cherries
 Cranberries
 Grapes
 Milk
 Onions
 Potatoes
 Prunes
 Raisins
 Tomatoes
 Walnuts
 Many more
Marketing Order: Washington Potatoes
Major Provisions
Commodity Regulated: Shipments of Irish potatoes grown
in Washington
Crop Shipping Season: July - June
Order Authority and Regulations:
 Authorizes grade, size, maturity, and pack
regulations, all of which have been established and
are in effect.
 Grade, size and maturity requirements in effect
under the marketing order also are applied to
imported potatoes.
Marketing Order: California Walnuts
Major Provisions
Commodity Regulated: Shipments of walnuts grown in
California
Crop Shipping Season: year-round
Order Authority and Regulations:
 Authorizes minimum grade and size regulations
which are currently in effect.
 Volume controls in the form of free and reserve
percentages are authorized, but are not currently
being used.
 Grade and size requirements established under the
order also are applied to imported walnuts.
AMS and International Standards
Participation
 Codex Alimentarius Committee (Codex)
 United Nations Economic Commission for Europe (UNECE)
 International Organization for Standardization (ISO)
 North American Free Trade Agreement (NAFTA)
 U.S./Canada Harmonization Committee for Grade
Standards
 U.S. National Committee of the International Dairy
Federation (USNAC)
AMS Market Information
Market News
 Fruits, vegetables, and specialty crops
 Milk and other dairy products
 Livestock, meats, grain, and hay
 Poultry and eggs
 Cotton
 Tobacco
Market News Portal
Fruit and Vegetable and Livestock and Grain
 Customize reports
 Read specialized and national summary reports
 Browse by commodity
 Browse by publication or report type
 Find contact information by state
Transportation Reports
 Grain Transportation Report (weekly)
 Ocean Rate Bulletin (quarterly)
Perishable Agricultural Commodities Act
What is PACA?
 Fosters trading practices in the marketing of fresh and
frozen fruits and vegetables in interstate and foreign
commerce.
 Prohibits unfair and fraudulent practices and provides a
means of enforcing contracts.
 Protects produce firms against financial losses stemming
from other traders who engage in unfair business practices.
 Under the PACA, anyone buying or selling commercial
quantities of fruit and vegetables must be licensed by
the USDA.
Fruit & Vegetable
Dispute Resolution Corporation (DRC)
What is DRC?
 A tri-lateral commercial organization based on the AMS
Perishable Agricultural Commodities Act (PACA)
• Provides the North American produce industry with the
tri-national policies, standards and services necessary
for resolving disputes in a timely and cost effective
manner
 Designed to build on existing services in the U.S. and fill a
gap for international and domestic transactions in Canada
and Mexico
 AMS Associate Administrator holds position on board
Fruit & Vegetable
Dispute Resolution Corporation (DRC)
Top 10 Reasons to Join DRC
1. Single system for fair and ethical trading practices across
North America
2. Deals with condition, contract, and payment disputes
3. Alternative to expensive litigation
4. Affordable and expedited solutions for most claims
5. Binding and enforceable decisions
6. Bad actors identified to the membership and the trade
7. New business alliance opportunities
8. Reasonable fees for service
9. Overcomes deficiencies in the Canadian Licensing and
Arbitration Program
10. Complements PACA
Security & Prosperity Partnership of
North America (SPP)
What is SPP?
 A trilateral effort to increase security and enhance prosperity
among the United States, Canada and Mexico through
greater cooperation and information sharing
Objectives
 To provide the framework to ensure that North America is
the safest and best place to live and do business
 Focus on five high priority initiatives:
• The North American Competiveness Council
• Advancing cooperation on avian and pandemic
influenza
• North American Energy Security Initiative
• North American Emergency Management
• Smart, secure borders
Security & Prosperity Partnership of
North America (SPP)
Fulfilling the AMS Goal with Mexico
 Design and maintenance of research and promotion programs
• Grains
• Field corn
• Beans
 Provide training and resources for development of fresh
produce shipping point and destination inspection programs
 Provide technical assistance with regard to operating fresh
produce market news services
• Cooperating for two decades in collection and
dissemination of market information
• Market Information Organization of the Americas
Security & Prosperity Partnership of
North America (SPP)
Fulfilling the AMS Goal with Canada
 Harmonize potato grade standards
 Harmonize tomato grade standards
 Provide technical assistance and identifying funding sources
to re-establish a National fresh inspection program
 Assist in development of program to provide fresh produce
shippers with priority status in case of bankruptcy of a
produce buyer
 Provide technical assistance with regard to operating fresh
produce market news services
Contact Information
Agricultural Marketing Service
Website: http://www.ams.usda.gov
Phone: 202-720-5115
Market News Portal
Website: http://marketnews.usda.gov
PACA
Website: http://www.ams.usda.gov/fvpaca/office.htm
Phone: 877-622-4716 (toll free)