I wanted to extend my congratulations, wish him good luck, and 

 tell him that I look forward to working together. 



Mr. Goldthwait. Thank you. 



Mr. Mendelowitz. Second, I think we are very much encouraged 

 by FAS's statement about interest in looking creatively at ways of 

 increasing exports and we look forward to working collaboratively 

 in that effort. 



In that light, I am pleased to be here today to testify on the im- 

 portance of strategic marketing as an approach to increasing ex- 

 ports and improving income in the farm sector. My testimony will 

 focus on how a shift from the traditional production-oriented ap- 

 proach to a market-oriented approach would help USDA adapt to 

 an increasingly competitive world marketplace. 



We believe that in making the shift, USDA will find it essential 

 to employ a strategic marketing approach that includes devising a 

 long-term market development plan, and changing its approach in 

 information gathering, personnel policies, and resource allocation. 

 Also, while this is taking place, USDA will still find it important 

 to emphasize programs to combat unfair foreign trade practices 

 and overcome market imperfections. 



USDA and the U.S. agricultural sector face a changing environ- 

 ment for world agricultural trade. The new multilateral trade 

 agreement, GATT, if approved by Congress, will provide greater 

 market access and wider opportunities for increasing U.S. exports. 



The world agricultural trade environment is changing in other 

 ways as well. Markets are emerging in East Asia, Eastern Europe, 

 and elsewhere that show potential for becoming major consumers 

 of United States agricultural products. And high-value products 

 such as fresh fruit, processed foods, and consumer-ready products, 

 are a growing share of world agricultural trade. 



At the same time, international agricultural trade has become 

 highly competitive; U.S. agricultural exporters have been increas- 

 ingly confronted by competitors who have government support for 

 aggressive and sophisticated marketing practices. In light of these 

 circumstances, USDA programs should shift from a production-ori- 

 ented approach to a more market-oriented approach. 



Since the Great Depression, U.S. agricultural policies and pro- 

 grams have primarily been directed at improving the efficiency of 

 the production of agricultural commodities. And I have to say that 

 this has been an extraordinarily successful program. U.S. agri- 

 culture is the world leader in efficient production. And many USDA 

 export activities have been aimed at seeking foreign markets for 

 excess production. 



These programs helped increase U.S. exports in the days when 

 United States and world agricultural trade consisted heavily of 

 trade in a few major bulk commodities, such as corn, wheat, and 

 soybeans. But these programs have not been sufficiently responsive 

 to current shifts in global trade from bulk commodities to profitable 

 market opportunities in high value products. 



In order to adapt to this new trading environment, strategic mar- 

 keting is essential. For many years, the United States' European 

 competitors have employed these practices with great success, par- 

 ticularly in exporting high-value products. Strategic marketing in- 



