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Should Imports Free-Ride Or Help Pay-- Decisions About Generic Promotion Programs For Agricultural Commodities

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  • Sterns, James A.
  • Ricks, Donald J.

Abstract

Many U.S. agricultural commodity industries are currently considering if and how they might implement a mandatory national generic promotion program. As U.S. industries consider how to finance these programs, one of the key decisions they face is the choice to include or exempt imported products from promotional assessment fees. Free-riders, unwilling riders, exclusion costs, economies of scale, market share, seasonality of production, storage constraints, and the role of government are reviewed within the context of this choice. The paper concludes that perceptions of fairness and ownership of decision processes, commonly held objectives, and effective communication links are key factors affecting decisions about the structures of generic commodity promotion programs.

Suggested Citation

  • Sterns, James A. & Ricks, Donald J., 2000. "Should Imports Free-Ride Or Help Pay-- Decisions About Generic Promotion Programs For Agricultural Commodities," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(2), pages 1-17.
    • Handle: RePEc:ags:ifaamr:34277
    DOI: 10.22004/ag.econ.34277
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    References listed on IDEAS

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    1. Goddard, E.W., 1994. "Nec-63 Conference On Promotion In The Marketing Mix: What Works Where And Why," Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada 279588, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    2. Alston, Julian M. & Carman, Hoy F. & Chalfant, James A., 1994. "EVALUATING PRIMARY PRODUCT PROMOTION: The Returns to Generic Advertising by a Producer Cooperative in a Small, Open Economy," Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada 279601, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
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