UNITED SOYBEAN BOARD TO IMPLEMENT NEW INT'L MARKETING MODEL
AgriPulse reports
The United Soybean Board voted last week during its annual meeting in St. Louis to implement a new international marketing model and hire a contractor to implement it. "We chose a model that seeks to involve more of the U.S. soybean value chain," said newly elected USB Chairman Phil Bradshaw.
Currently, the United States Soybean Export Council (USSEC), a joint venture between USB and the American Soybean Association (ASA), carries out the industry's checkoff-funded international marketing campaign.
In 2009, USB budgeted more than $13.5 million, or nearly a quarter of its entire program funding, toward international marketing.
USDA figures for the just-ended 2009 marketing year show the U.S. exported more than 1.5 billion bushels of soy, a 4 percent increase over the previous year.
Under the new model, companies that process and export soy and sell planting seed to farmers will have a greater say in shaping the industry's export strategy. "We're really looking at getting the larger exporters more involved; we're also looking at getting other organizations and people involved so we can have a broader base of support," Bradshaw told Agri-Pulse. "If we can leverage our checkoff dollars it's better for the farmers, it's better for everybody throughout the soybean chain. So that's what we're trying to do here."
USB plans to select a new contractor during its February meeting and have the new marketing model in place by Oct. 1, the start of fiscal 2011. While it's unclear what, if any, role USSEC will have in promoting U.S. soybeans overseas beyond Sept. 30, Bradshaw predicted many of its employees would be retained by the new contractor. "The new model, hopefully, will have very little effect on them," he said.
In remarks to his fellow Board members upon assuming the chairmanship, Bradshaw suggested it was time for USB to reach out to ASA, the national soybean policy organization whose allegations last December regarding USB mismanagement of farmers' checkoff dollars led to an investigation of the soybean checkoff program by USDA's Office of Inspector General (OIG) that continues to this day.
"I said it might be time that we had a facilitated conversation about [our] differences and really the roles, goals and responsibilities of the two organizations and maybe develop some working documents."
USB officials estimated the checkoff board spent $845,000 through November on legal fees, staff time and other activities related to the OIG investigation. Vice Chairman Marc Curtis indicated that a smaller amount was penciled into the 2010 budget primarily because USB "expects the OIG to finish up sometime, hopefully, early in the year."