Excerpt from Agricultural Commodity Promotions: Features Encouraging Participation of Retailers and Wholesalers

Agricultural producers have become increasingly active in promoting the sales of their products through organized efforts. A survey conducted by the u.s. Department of Agriculture (usda) in 1958 revealed that approximately organized groups, including commissions, institutes, boards, cooperatives, and State departments of markets, were actively conducting sales promotional campaigns with annual expenditures of approximately $67 million.2/ A similar survey conducted in 1963 revealed the number of agricultural organizations conducting promotional campaigns had increased to with an additional 375 collecting funds and contributing financially to programs conducted by these organizations. Agricultural groups spent approximately $86 million in 1962 and had budgeted expenditures of $92 million in The number of such groups actively conducting promotional activities in 1970 probably exceeds with expenditures of $110 to $120 million.

Although a promotional campaign can be effective in increasing product demand and in marketing excess supplies during short periods of time, the effectiveness is limited if the campaign is not supported by retailers and wholesalers. Stimulating consumer interest through media advertising, publicity, and other activities is of little value for sales if products are not available and are not properly displayed in the outlets where they are usually purchased. Commodity promotional groups, except for marketing cooperatives, are in a difficult position for soliciting trade cooperation in conduct ing campaigns.4/ These groups do not hold title to products promoted and perform no marketing function other than that of sales-promotion activities. To obtain trade support, they cannot give price concessions or use other similar means available to brand advertisers or owners of a product. Moreover, the budgets of such organizations are relatively small. This precludes the use of media advertising massive enough for consumers to ask retailers to stock a particular product.

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