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The Egg Research and Consumer Information Act (which authorizes the American 

 Egg Board and which this legislation, H.R. 1637, would amend) was enacted in 1974. The 

 American Egg Board program has a proud tradition. In the 1970s, it had one of the most 

 successful commodity promotion programs of any agricultural commodity. In fact, AEB's 

 success in those early years was an inspiration for other commodity groups to seek approval 

 for their own generic promotion programs. National advertisements for the "incredible 

 edible egg" encouraged consumers to look more favorably on eggs and increased per capita 

 consumption of eggs. 



Unfonunately, the funding level that the statutory rate of assessment provided - 

 5c per case ~ was not enough for the American Egg Board to continue a significant national 

 advertising campaign. In the face of double-digit inflation, cost increases were such that our 

 industry could no longer afford to keep its campaign afloat. 



In 1988, with the help of this Subcommittee, our authorizing legislation was amended 

 to eliminate the refund provision. This step was supported by over 90% of the egg 

 production in the U.S. As a result, our program now has an annual budget of a little over 

 $7 million, which has significantly contributed to its added success in recent years. 



Unfortunately, $7 million is not enough to allow for an effective national advertising 

 campaign. If the egg industry is to halt the slide in per capita consumption of eggs, it must 

 have the advertising and promotional dollars to compete with breakfast cereals and other 



