Criteria for Evaluating Market Development Proposals for Participation in the Foreign Market Development Cooperator Program

DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service

Criteria for Evaluating Market Development Proposals for

Participation in the Foreign Market Development Cooperator Program

AGENCY: Foreign Agricultural Service, USDA.

ACTION: Notice and request for comments.

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SUMMARY: The Foreign Agricultural Service (FAS) has developed approval

criteria and weighting factors for allocating funds on a competitive

basis under the Foreign Market Development Cooperator Program. FAS

invites suggestions and comments regarding these proposed factors.

DATES: In order to be considered, written comments must be received by

June 16, 1997.

ADDRESSES: Send comments to U.S. Department of Agriculture, Foreign

Agricultural Service, Marketing Operations Staff, STOP 1042, 1400

Independence Ave., SW., Washington, DC 20250-1042.

FOR FURTHER INFORMATION CONTACT:

The Marketing Operations Staff at (202) 720-4327.

SUPPLEMENTARY INFORMATION:

Background

The Foreign Market Development Cooperator (Cooperator) Program is

authorized by Title VII of the Agricultural Trade Act of 1978, 7 U.S.C.

5721, et seq. The program is intended to create, expand and maintain

foreign markets for United States agricultural commodities and

products. The Foreign Agricultural Service (FAS) administers the

Cooperator Program and provides cost share assistance to eligible trade

organizations to carry out approved market development activities.

Program regulations appear at 7 CFR part 1550. Under the Cooperator

Program, FAS enters into Market Development Project Agreements with

nonprofit U.S. trade organizations or associations of State Departments

of Agriculture. FAS enters into agreements with those nonprofit U.S.

trade organizations that have the broadest possible producer

representation of the commodity being promoted and gives priority to

those organizations that are nationwide in membership and scope.

Program participants may not, during the term of their agreement with

FAS, make export sales of the agricultural commodity being promoted or

charge fees for facilitating an export sale if promotional activities

designed to result in that specific sale are supported by Cooperator

program funds.

Market Development Project Agreements involve the promotion of

agricultural commodities on a generic basis and, therefore, do not

involve activities targeted directly toward individual consumers.

Approved activities contribute to the maintenance or growth of demand

for the agricultural commodities and generally address long-term

foreign import constraints by focusing on matters such as:

--Reducing infra-structural or historical market impediments;

--Improving processing capabilities;

--Modifying codes and standards; and

--Identifying new markets or new applications or uses for the

agricultural commodity or product in the foreign market.

Approval Criteria

FAS allocates funds in a manner that effectively supports the

strategic decision-making initiatives of the Government Performance and

Results Act (GPRA) of 1993. In deciding whether a proposed project will

contribute to the effective creation, expansion or maintenance of

foreign markets, FAS seeks to identify a clear, long-term agricultural

trade strategy by market or product and a program effectiveness time

line against which results can be measured at specific intervals using

quantifiable product or country goals. These performance indicators are

part of FAS's resource allocation strategy to fund applicants which can

demonstrate performance based on a long-term strategic plan, consistent

with the strategic objectives of the United States Department of

Agriculture's Long-term Agricultural Trade Strategy, and address the

performance measurement objectives of the GPRA.

FAS considers a number of factors when reviewing proposed projects.

These factors include:

--The ability of the organization to provide an experienced U.S.-

based staff with technical and international trade expertise to

ensure adequate development, supervision and execution of the

proposed project;

--The organization's willingness to contribute resources including

cash and goods and services of the U.S. industry and foreign third

parties;

--The conditions or constraints affecting the level of U.S. exports

and market share for the agricultural commodities and products;

--The degree to which the proposed project is likely to contribute

to the creation, expansion, or maintenance of foreign markets; and

--The degree to which the strategic plan is coordinated with other

private or U.S. government-funded market development projects.

Allocation Criteria

The purpose of this notice is to obtain comments from interested

parties regarding a proposed method of evaluating the relative merits

of different proposals for the purpose of determining an appropriate

funding level for each proposed project. Meritorious proposals will

compete for funds on the basis of the following allocation criteria

(the numbers in parentheses represent a percentage weight factor). Data

used in the calculations for contribution levels, past export

performance and past demand expansion performance will cover not more

than a 6-year period, to the extent such data is available.

(a) Contribution Level (40)

The applicant's 6-year average share of all contributions

(contributions may include cash and goods and services provided by U.S.

entities in support of foreign market development activities) compared

to

The applicant's 6-year average share of all Cooperator

marketing plan budgets.

(b) Past Export Performance (20)

The 6-year average share of the value of exports promoted

by the applicant across Cooperator Program targeted markets compared to

The applicant's 6-year average share of all Cooperator

marketing plan budgets plus a 6-year average share of Market Access

Program (MAP) program ceiling levels and a 6-year average share of

foreign overhead provided for co-location within a U.S. agricultural

trade office in those targeted markets.

(c) Past Demand Expansion Performance (20)

The 6-year average share of the total value of world

imports of the commodities promoted by the applicant across Cooperator

Program targeted markets compared to

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The applicant's 6-year average share of all Cooperator

marketing plan budgets plus a 6-year average share of MAP program

ceiling levels and a 6-year average share of foreign overhead provided

for co-location within a U.S. agricultural trade office in those

targeted markets.

(d) Future Demand Expansion Goals (20)

(This criterion will receive a weight of 10 beginning with the year

2000 program)

The total dollar value of the applicant's projected world

imports of the commodities being promoted by the applicant for the year

2003 across all Cooperator Program targeted markets compared to

The applicant's requested funding level.

(e) Accuracy of Past Demand Expansion Projections

(Since the information is not currently available, this criterion will

be used beginning with the year 2000 program and will receive a weight

of 10)

The actual dollar value share of world imports of the

commodities being promoted by the applicant for the year 1998 across

all Cooperator Program targeted markets compared to

The applicant's past projected share of world imports of

the commodities being promoted by the applicant for the year 1998, as

specified in the 1998 Cooperator Program application.

The Commodity Division's recommended program levels for each

applicant are converted to a percent of the total Cooperator Program

funds available and multiplied by the total weight factor to determine

the amount of funds allocated to each applicant.

Dated: May 6, 1997.

Timothy J. Galvin,

Acting Administrator, Foreign Agricultural Service.

[FR Doc. 97-12836 Filed 5-15-97; 8:45 am]

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