Source: TEXAS A&M UNIVERSITY submitted to
WORLD COMMODITY SUPPLY CHAINS AND AGRICULTURAL COMMODITY MARKETING AND PROMOTION
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
NEW
Funding Source
Reporting Frequency
Annual
Accession No.
1013889
Grant No.
(N/A)
Project No.
TEX0-1-8037
Proposal No.
(N/A)
Multistate No.
(N/A)
Program Code
(N/A)
Project Start Date
Sep 14, 2017
Project End Date
Aug 11, 2022
Grant Year
(N/A)
Project Director
Williams, G, .
Recipient Organization
TEXAS A&M UNIVERSITY
750 AGRONOMY RD STE 2701
COLLEGE STATION,TX 77843-0001
Performing Department
Agri Economics
Non Technical Summary
Globalization is affecting the effectiveness of cooperative producer and agribusiness promotion and marketing efforts like voluntary and mandatory generic advertising and promotion financed by producers and/or various agribusinesses at the state or national level known as commodity checkoff programs. Extending and linking commodity supply chains worldwide across national borders, globalization is influencing the rate and extent of the effects of retail-to-farm transmission of commodity promotion. As a consequence, the benefits and market effects of checkoff programs can no longer be expected to transmit solely through domestic channels to the farm level as in the past. Instead, the market effects now are likely to move through often lengthy global supply chains before any benefits accrue to producers. Thus, the net effect on the farm-level returns from generic advertising by checkoff groups whose commodities move through a global supply chain, is largely ambiguous. In other words, the process of globalization could be either increasing or reducing the profitability of producer investments in commodity promotion programs. Because of the differential effect of globalization on commodity markets, whether or not globalization enhances or reduces the returns of the commodity checkoff programs to producers and/or agribusinesses that finance them is an empirical question that must be analyzed commodity by commodity. A large and growing body of literature demonstrates that, by and large, generic promotion programs of U.S. agricultural commodity groups have been highly successful in expanding demand in both domestic and foreign markets across a broad range of commodities. However, the literature on the influence of increasingly important global commodity supply chains and the transmission of generic advertising effects is sparse. Most studies of commodity checkoff programs continue to either ignore the problem of global (or domestic) supply chain transmission of benefits to stakeholders and assume full transmission from retail promotion to producers or make some simplifying assumptions to estimate the share of generic-advertising-induced benefits that accrue at the farm level while ignoring the increasing interaction of domestic and world markets through expanding commodity and food supply chains.This project will analyze the interaction of expanding world commodity supply chains and agricultural commodity marketing and promotion for strategic decision-making by U.S. agricultural producers and agribusinesses. Specifcally, the project will: 1. Qualitatively analyze the structure and changes in world commodity and food supply chains specifically for U.S. agricultural commodities that are promoted through checkoff programs and other domestic and international advertising and promotion programs; 2. Develop and utilize empirical models and techniques to measure and analyze the supply chain consequences and interactions of the marketing and promotion of specific agricultural commodities; 3. Evaluate alternative marketing, trade, and management strategies and policies for managing the supply chain effects of commodity marketing and promotion efforts based on the results of associated qualitative and quantitative analyses; and 4. Disseminate the research results to U.S. agricultural producers and processors, commodity organizations, rural communities, food industries, and government agencies through various reports, conferences, seminars, and symposia to support strategic decision-making to enhance the marketing and promotion of agricultural and food products in the context of globalization.
Animal Health Component
0%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6030999301010%
6031119301010%
6031499301010%
6031599301010%
6031799301010%
6061899301010%
6043399301010%
6033599301010%
6063699301010%
6033799301010%
Goals / Objectives
The overall goal of this project is to analyze the interaction of expanding world commodity supply chains and agricultural commodity marketing and promotion for strategic decision-making by U.S. agricultural producers and agribusinesses. More specifically, the objectives of this project are the following: 1. Qualitatively analyze the structure and changes in world commodity and food supply chains specifically for U.S. agricultural commodities that are promoted through checkoff programs and other domestic and international advertising and promotion programs including major agricultural commodities such as soybeans, feedgrains, wheat, meat and meat products, dairy products, cotton and competing products, rice, and vegetables and fruits. The analysis will provide the basis for refining hypotheses and conducting necessary empirical tests and analyses under the second objective of this project. 2. Develop and utilize empirical models and techniques to measure and analyze the supply chain consequences and interactions of the marketing and promotion of specific agricultural commodities. 3. Evaluate alternative marketing, trade, and management strategies and policies for managing the supply chain effects of commodity marketing and promotion efforts based on the results of associated qualitative and quantitative analyses; and 4. Disseminate the research results to U.S. agricultural producers and processors, commodity organizations, rural communities, food industries, and government agencies through various reports, conferences, seminars, and symposia to support strategic decision-making to enhance the marketing and promotion of agricultural and food products in the context of globalization.
Project Methods
Methods: Objective 1: The qualitative assessment of the structure and changes in world commodity and food supply chains specifically for U.S. agricultural commodities that are promoted through checkoff programs and other domestic and international advertising and promotion programs will first require collection and assessment of both primary and secondary data and information. Existing databases of the supply, utilization, and trade, prices and related data on U.S. agricultural commodity and food products will be required along with secondary information related to the effects of globalization on commodity and food product markets and related supply chains. Data on promotional activities and expenditures will need to be collected from agricultural and food groups that promote their commodities in U.S. or international markets. Primary data will likely need to be collected from producers, food processors, wholesalers, retailers and others only commodity and food supply chains on the structure and linkages in the global agricultural and food supply chains related to their industries. Also, primary data on the type, extent, objectives, supply chain level, geographic distribution, and other characteristics of the advertising and promotion conducted by producers, processors, and other along supply chains will need to be collected to support the quantitative analysis that will be subsequently done. For some specific projects related to commodity and food promotion activities, primary data may need to be collected on consumer attitudes and awareness of commodity and food advertising and promotional efforts. Secondary data may be available for much of the data needed. Objective 2: The data collected related to objective 1 will be used for the analyses of the domestic and global supply chain transmission of the marketing and promotion of agricultural commodities. The analyses will involve the development and use of at least two sets of statistical and econometric methodologies: (1) Standard survey procedures such as face-to-face, internet, and focus group interviews will be used to collect primary data from producers, processors, wholesalers, retailers, and consumer groups to understand the economic structure and relationships in commodity supply chains as well as the attitudes and awareness of producers and consumers in those supply chains to commodity marketing and promotional activities. Some of the survey work, as needed, will involve probability sampling and controlled call-back procedures to minimize sample bias. In those cases, the survey questionnaires will be designed based on the focus group interviews previously conducted and followed by pre-testing. Appropriate interview methodology will be used and based on professional knowledge and appropriate literature reviews. Direct and indirect questioning methods will be involved with cross-check questions where appropriate. Descriptive analyses by specific commodities and food products will be done based on the secondary and survey data collected. Various techniques will be used to analyze the data including, as appropriate, Analysis of Variance (ANOVA) and non-parametric procedures along with Limited Dependent Variable procedures. (2) Simultaneous-equation econometric simulation models of commodity markets with appropriate global components and linkages will be used to measure the effects of the transmission of the effects of commodity marketing and promotion activities through domestic and global supply chains. The major U.S. agricultural commodities produced and traded will be the primary focus of this research, including soybeans, dairy products, feedgrains, cotton, livestock and livestock products and others of particular importance to Texas, including fruits, vegetables, and tree nuts. This research will build on work already completed by the principal investigator for many of those products. Objective 3: The database, information, and models developed under the first two objectives will be utilized to evaluate alternative strategies and policies for enhancing the efficiency of U.S. agricultural commodity marketing and promotion through global supply chains. A primary method for such evaluations will be simulation analysis using the commodity models developed under objective two to conduct counter-factual analyses to simulate and measure the effects of alternative globalization scenarios (such as the increasing the number of U.S. bilateral trade agreements or increased health risks associated food trade) on commodity supply chains and markets and the retail-to-farm transmission of the benefits of commodity promotion programs. Based on those results, appropriate business, marketing, and policy strategy recommendations can be made to improve the effectiveness and efficiency of U.S. agricultural commodity marketing and promotion. Objective 4: The research results will be disseminated to various U.S. agricultural producer and agribusiness organizations, rural communities, and government agencies in a variety of ways as appropriate. A major publication outlet will be through the publication series of the Agribusiness, Food and Consumer Economics Research Center (AFCERC) at Texas A&M University. Presentations of the results to interested groups will be made. Conferences, seminars, and symposia also will be organized in cooperation with Texas AgriLife, the Center for North American Studies, and other interested groups to disseminate the research results to key producer and food industry decision makers. Publications in professional journals will provide linkages to on-going academic research in this area.

Progress 10/01/17 to 09/30/18

Outputs
Target Audience:U.S. agricultural producers and policymakers related to several key U.S. agricultural markets, including Hass avocados, livestock, soybeans and soybean products, dairy (production and processing), oranges, seafood, sorghum and other feed grains, cotton, and more. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Attended the annual meetings of the American Association of Agricultural and Applied Economics and the Food Markting research Symposium. How have the results been disseminated to communities of interest?Research results have been disseminated via: (1) presentations in meetings of private sector associations, boards, organizations, groups, and other interested parties; (2) presentations at academic conferences and annual meetings; (3) reports to the U.S. Congress and the USDA; (4) internet websites; (5) news releases; (6) printed copies to funding agencies and interested parties on request; and (6) scholarly publication. What do you plan to do during the next reporting period to accomplish the goals?Complete and publish work on ongoing research relating to the Hass avocado import supply chain, the economics of the U.S. pecan industry, the return on investment in lamb promotion, Norwegian promotion of seafood, and dairy industry market promotion.

Impacts
What was accomplished under these goals? Research outputs have enhanced information and improved decision-making in Texas and U.S. agriculture with particular emphasis on: (1) the management of checkoff programs in general to maximize producer returns from their generic advertising programs; (2) specific checkoff programs administrered by the United Sorghum Checkoff program, the Norwegian Seafood Council, Dairy Management, Inc., MilkPep, and the American Lamb Board; (3) effects of avocados imports on the U.S. economy for the Mexican Hass Avocado Import Association; and (4) understanding pecan market economics for the American Pecan Council. Began work on second five-year contract regarding a quantitative analysis of fluid milk processors' and dairy producers' generic promotion programs with MilkPEP and Dairy Management, Inc. Began work on an analysis of the return on investment in lamb promotion for the Aernican Lamb Board. began work on a study of the economic behavior of U.S. pecan markets for the American Pecan Council. Work completed: (1) completed final year of work on first five-year contract regrading a quantitative analysis of fluid milk processors' and dairy producers' generic promotion programs with MilkPEP and Dairy Management, Inc.; (2) scholarly publication on the national economic contribution of generic food and agricultural product advertising and promotion, (3) scholarly publication on generic promotion of sorghum for Food and Industrial Uses, (4) on the U.S. national economic impact of avocado imports from Mexico; (5) presentation to the American Agricultural and Applied Economics Association on the benefits of U.S. imports of Mexican avocados, (6) presentation at a conference at the Autonomous University of Chapingo in Texcoco, Mexico on the effects of the importation of Mexican avocados on the U.S. economy, (7) presentation to a conference at the Kangwon National University in Chuncheon, South Korea on U.S. agricultural policy and economic development, (8) presentation at the International Food Marketing Research Symposium in Bournemouth, England on the promotion of sorghum for food and industrial uses, (9) delivered a reserach report to U.S. Congress on a quantitative evaluation of the effectiveness of marketing and promotion activities by the Milk Processor Education Program (MilkPEP), Dairy Management, Inc. (DMI), and Qualified Programs (QPs), (10) delivered a technical research report to USDA on the quantitative evaluation of the effectiveness of marketing and promotion activities by the Milk Processor Education Program (MilkPEP), Dairy Management, Inc. (DMI), and Qualified Programs (QPs), (11) delivered a research report to the Norwegian Seafood Council on how effectively the Norwegian Seafood Council promotes Norwegian seafood exports and a research report on how effectively the Norwegian Seafood Council promotse Norwegian whitefish exports, (12) delivered a research report to the Asociacion de Productores y Empacadores de Aguacate (APEAM, A.C.) and the Mexican Hass Avocado Import Association (MHAIA) on the U.S. national and state-level economic benefits of avocado imports from Mexico, (13) obtained 3 new research contracts relating to the Hass avocado import supply chain, the economics of the U.S. pecan industry, and the return on investment in lamb promotion.

Publications

  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Williams, G.W., O. Capps, Jr., and D. Hanselka, The National Economic Contribution of Generic Food and Agricultural Product Advertising and Promotion. International Journal of Food and Agribusiness Marketing 30 (2):191-210, 2018.
  • Type: Journal Articles Status: Awaiting Publication Year Published: 2019 Citation: Williams, G.W. and O. Capps, Jr., Generic Promotion of Sorghum of Food and Industrial Uses, International Journal of Food and Agribusiness Marketing, 2019.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Williams, G.W., U.S. Agricultural Policy and Economic Development, Invited presentation, Kangwon National University, Chuncheon, the Republic of Korea, July 2018.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Williams, G.W., The Benefits of U.S. Imports of Mexican Avocados, AAEA Post-conference Workshop on The Convergence of Policy Issues in Produce Research: Labor/mechanization, NAFTA, and the Food Safety Modernization Act, Washington. D.C., August 8, 2018.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Williams, G.W., The Effects of the Importation of Mexican Avocados on the U.S. Economy (El impacto de las importaciones de aguacate mexicano en la econom�a de los EEUU), Keynote invited paper, 6th National Seminar on the Agricultural Economy and Natural Resources and the 1st National Congress on the Economic Environment of the Northeast (6to Seminario Nacional de la Econom�a Agr�cola y de los Recursos Naturales y 1er Congreso de Econom�a Ambiental del Noroeste), sponsored by the Division of Economic and Administrative Sciences (DICEA) at the Autonomous University of Chapingo (UACh), the Autonomous University of Southern Baja California (UABCS), and the Economics Program of the Postgraduate College (Texcoco), Texcoco, Mexico, Novermber 15-16, 2018.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2018 Citation: Williams, G.W., O. Capps, Jr., Promotion of Sorghum for Food and Industrial Uses, Selected Paper, International Food Marketing Research Symposium, Bournemouth, England, June 14-15, 2018.
  • Type: Other Status: Published Year Published: 2018 Citation: Capps, Jr., O, G.W. Williams, V.S. Salin, and D.S. Brown, Chapter 3: Quantitative Evaluation of the Effectiveness of Marketing and Promotion Activities by the Milk Processor Education Program (MilkPEP), Dairy Management, Inc. (DMI), and Qualified Programs (QPs), 2016 Report to Congress, Agribusiness, Food and Consumer Economics Research Center, Texas A&M University, College Station, Texas, April 6, 2018.
  • Type: Other Status: Published Year Published: 2018 Citation: Williams, G.W. and Capps, 2018 Update: How Effectively Does the Norwegian Seafood Council Promote Norwegian Seafood Exports? Research Report to the Norwegian Seafood Export Council, College Station, Texas, June 2018.
  • Type: Other Status: Published Year Published: 2018 Citation: Williams, G.W. and Capps, How Effectively Does the Norwegian Seafood Council Promote Norwegian Whitefish Exports? Research Report to the Norwegian Seafood Export Council, College Station, Texas, June 2018.
  • Type: Other Status: Published Year Published: 2018 Citation: Capps, Jr., O, G.W. Williams, V.S. Salin, and D.S. Brown, Technical Report: Quantitative Evaluation of the Effectiveness of Marketing and Promotion Activities by the National Dairy Promotion and Research Program and the National Fluid Milk Processor Promotion Program  1995 to 2016, Report to Agricultural Marketing Service, U.S. Department of Agriculture, Agribusiness, Food and Consumer Economics Research Center, Texas A&M University, College Station, Texas, July 2018.
  • Type: Other Status: Published Year Published: 2018 Citation: Williams, G.W. and D. Hanselka, 2018 Update: The U.S. National and State-level Economic Benefits of Avocado Imports from Mexico, Research Report to the Asociaci�n de Productores y Empacadores de Aguacate (APEAM, A.C.) and the Mexican Hass Avocado Import Association (MHAIA), September 2018.


Progress 09/14/17 to 09/30/17

Outputs
Target Audience:U.S. agricultural producers and policymakers related to several key U.S. agricultural markets, including Hass avocados, livestock, soybeans and soybean products, dairy (production and processing), oranges, tart cherries, seafood, sorghum and other feed grains, cotton, and more. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Research results have been disseminated via: (1) presentations in meetings of private sector associations, boards, organizations, groups, and other interested parties; (2) presentations at academic conferences and annual meetings; (3) presentation to the U.S. Congress; (4) internet websites; (5) news releases; (6) printed copies to funding agencies and interested parties on request; and (6) scholarly publication. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Research outputs have enhanced information and improved decision-making in Texas and U.S. agriculture with particular emphasis on: (1) the effects of Chinese exchange policy on global agricultural product supply chains; (2) the management of checkoff programs administered by the United Sorghum Checkoff program, U.S. agricultural promotion groups, the Norwegian Seafood Council, Dairy Management, Inc. and MilkPep, and the Mexican Hass Avocado Import Association, among others, to maximize producer returns from their generic advertising programs; (3) Latin American livestock markets; (4) USDA Export Market Development Programs; (5) (6) forecasts of U.S. imports of avocados from mexico. Work completed: (1) completed fifth and final year of work on a quantitative analysis of fluid milk processors' and dairy producers' generic promotion programs under a 5-year contract with MilkPEP and Dairy Management, Inc.; (2) scholarly publication on exchange rate policy and gobal supply chains for the case of the Chinese Renminbi and global soybean markets, (3) scholarly publication on the U.S. national economic impact of avocado imports from Mexico; (4) scholarly publication on U.S. agricultural export promotion; (5) scholarly pubication on the national economic contribution of generic food and agricultural product advertising and promotion; (6) completed an update of a chapter on the livestock industry of Latin America for an unpated edition an annual report by the U.S. Food and Agriculture Organization (FAO) (7) completed work on the developing a checkoff expenditure database under contract with the United Soybean Board; (8) completed forecasts of shipments of avocados from Mexico by avocado size for the Mexican Hass Avocado Import Association; (9) presented numerous research presentations to research funding organizations; (10) preented papers in various conferences; (11) presented invited testimony on USDA Export Promotion Programs to the hearings on "The Next Farm Bill: International Market Development" held by the Subcommittee on Livestock and Foreign Agriculture of the U.S. House of Representatives Committee.

Publications

  • Type: Journal Articles Status: Published Year Published: 2017 Citation: Williams, G.W. and J. Luo, Exchange Rate Policy and Global Supply Chains: The Case of the Chinese Renminbi and Global Soybean and Products Markets, Applied Economic Perspectives and Policy 39(1): 177-198, 2017.
  • Type: Journal Articles Status: Published Year Published: 2017 Citation: Williams, G.W., O. Capps, Jr., and D. Hanselka, The National Economic Benefits of Food Imports: The Case of U.S. Imports of Hass Avocados from Mexico, International Journal of Food and Agribusiness Marketing 29(2):139-137, 2017.
  • Type: Journal Articles Status: Published Year Published: 2017 Citation: Reimer, J., G.W. Williams, R. Dudensing, and H. Kaiser, Agricultural Export Promotion and Its Effects on the Broader Economy Choices 32(3), 3rd Quarter, 2017.
  • Type: Journal Articles Status: Published Year Published: 2017 Citation: Williams, G.W., O. Capps, Jr., and D. Hanselka, The National Economic Contribution of Generic Food and Agricultural Product Advertising and Promotion, International Journal of Food and Agribusiness Marketing, 2017 (Published online at http://www.tandfonline.com/eprint/rHNbr9m8eU33YEmJhDV6/full).
  • Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Williams, G.W., The Next Farm Bill: International Market Development, Written and oral testimony before the Subcommittee on Livestock and Foreign Agriculture of the U.S. House of Representatives Committee on Agriculture, Feb. 28, 2017.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Williams, G.W., O. Capps, Jr. and D. Hanselka, The National Economic Contribution of Agricultural Advertising and Promotion, Selected Paper, International Food Marketing Research Symposium, Dubrovnik, Croatia, June 13, 2017
  • Type: Book Chapters Status: Published Year Published: 2017 Citation: Williams, G.W. and D.P. Anderson, Livestock, in The Outlook for Agriculture and Rural Development in the Americas: A Perspective on Latin America and the Caribbean, 2017-2018, co-published by the Economic Commission for Latin America and the Caribbean (ELAC), the Food and Agriculture Organization (FAO) of the United Nations, and the Inter-American Institute for Cooperation on Agriculture (IICA), Santiago, Chile, 2017.
  • Type: Other Status: Published Year Published: 2017 Citation: Williams, G.W., O. Capps, Jr., D. Hanselka, The National Economic Contribution of Agricultural Advertising and Promotion, Research Report to the Commodity Roundtable Marketing and Communications (CRMC) Group, College station, Texas, April 2017.
  • Type: Other Status: Published Year Published: 2017 Citation: Capps, O. and G.W. Williams, Forecasts of Hass Avocado Shipments from Mexico By Size, February 2017 - April 2017, Research Report to the Asociaci�n de Productores y Empacadores de Aguacate (APEAM, A.C.) and the Mexican Hass Avocado Import Association (MHAIA), May 2017.
  • Type: Other Status: Published Year Published: 2017 Citation: Capps, Jr. and G.W. Williams, How Effectively Does the Norwegian Seafood Export Council Promote Norwegian Seafood Exports? Research Report to the Norwegian Seafood Export Council, College Station, Texas, June 2017.
  • Type: Other Status: Published Year Published: 2017 Citation: Capps, O. and G.W. Williams, Forecasts of Hass Avocado Shipments from Mexico By Size, May 2017 - July 2017, Research Report to the Asociaci�n de Productores y Empacadores de Aguacate (APEAM, A.C.) and the Mexican Hass Avocado Import Association (MHAIA), August 2017.
  • Type: Other Status: Published Year Published: 2017 Citation: Capps, Jr., O., G.W. Williams, and J.M. Welch, Producer Return on Investments in Sorghum Research, Promotion, and Information: An Updated Analysis, Research Report for the United Sorghum Checkoff Program Board, College Station, Texas, September 2017.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Williams, G.W. Comments on the Presentations in the LA Track Session Performance and Challenges for U.S. Free-Trade Agreements with Latin America: Do These Accords Need Improvements? AAEA annual meetings, Chicago, IL, August 1, 2017.