USSEC Commissions Independent Study on International Marketing
An independent study commissioned by the U.S. Soybean Export Council (USSEC) to measure the producer return from the combined soybean checkoff and FAS (MAP and FMD) concluded that international market promotion has significantly boosted U.S. soybean industry profitability. The evaluation, conducted by Dr. Gary Williams of Texas A&M University in 2014, used an econometric simulation model of world soybean and soybean product markets dating back more than 20 years. According to the study, international marketing activities conducted on behalf of U.S. soybean growers increased soybean exports each year by an average of 993,600 metric tons (MT) or nearly 5 percent. For soybean meal and soybean oil, the average annual growth over that period was estimated to be somewhat larger at 15 percent (808,600 MT) and 24 percent (149,600 MT) respectively. Using those results, a gross export revenue benefit-cost ratio (BCR) over the period resulted in $29.6 of additional export revenue (net of the cost of the promotion) per dollar spent on international promotion. At the producer level, that additional export revenue translates into a BCR of $10.1 in additional profit to growers per dollar spent on international promotion. The U.S. Soy Family – American Soybean Association (ASA), United Soybean Board (USB), and Qualified State Soybean Boards (QSSB) – and the U.S. Department of Agriculture (USDA) each contributed about half the total funds for international market promotion over the years measured. Since 1970/71 through 2011/12, a total of $764,500,000 from the checkoff and matching FMD/MAP funds were used with FAS contributions totaling approximately $382,250,000. The international market promotion component of the U.S. Soy Family generated over $20 billion in additional export revenue since 1980/81 with a BCR of $34.8 per dollar spent on international promotion and over $6.2 billion in additional soybean grower profits since 1980/81 with a producer BCR of $10.1 in producer profit per dollar spent on international promotion.