[Federal Register Volume 62, Number 95 (Friday, May 16, 1997)]
[Notices]
[Pages 27006-27007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12836]


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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

[[Page 27007]]

     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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