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area. Is that a relatively recent development? Was there a time 

 years ago when the timeframe was shorter? 



Mr. Seng. Well, initially under the TEAP program it would seem 

 to be shorter. Our fiscal year would be the Government fiscal year, 

 October through September, but because of the inordinate delays 

 we have had, we extended our fiscal year on MPP to April 1. That 

 is 6 months from the beginning of the fiscal year, obviously. This 

 year alone we will not have MPP plans for 1994 available even by 

 April 1. 



Now in the meat area, we probably don't have as much of a prob- 

 lem because we don't have the seasonality of product. But in some 

 of the horizontal areas, this is a major factor. 



Mr. Penny. You are halfway into the year before you can get as- 

 sistance and, by then, it is too late for most commodities. 



Mr. Seng. We have found we have about 6 months in order to 

 react, activate, and do our activities in the way it is averaged. 



Mr. Penny. Do you suggest we analyze program effectiveness, if 

 we don't put this on a year-to-year leash, which is one way of pro- 

 viding a check on the use of the funds. How better could we 



Mr. Seng. I think that the participants, either the cooperators or 

 the cooperators in conjunction with FAS developing these plans 

 would come up with maybe a 3- to 5-year plan. At that point in 

 time, they would set very definite quantifiable goals. 



Mr. Penny. Just measure against those goals rather than going 

 through a whole new round of paperwork. 



Mr. Seng. You said you have goals and have certain activities 

 under those goals and breakout or markets. And every division 

 under FAS — I think there are nine — would have different commod- 

 ity groups within that. You would set up your goals depending on 

 how you want to break down your market. There would be certain 

 activities attendant to that. You could adjust those where need be. 



But the idea, you are lifting your goal. For example, in meat ex- 

 ports, if we project 2 billion in the next 2 years, where are they 

 coming from? And if you haven't, you adjust your plans accordingly. 



Mr. Penny. You indicated that foreign promotion on the part of 

 the United States represents about 1 percent of sales. Is that for- 

 eign promotion from Government sources? 



Mr. Seng. The foreign promotion, for example, in the case of 

 Australia, they would spend 20 to 1 per annuaJ unit compared to 

 the United States, that those dollars would be primarily from the 

 private sector. On the other hand, Denmark, a major competitor of 

 ours in Japan for pork, would spend close to about $50 million in 

 Japan promoting Danish pork. We spend about $500,000 in Japan 

 promoting pork. And the source of funding from Denmark would be 

 Government. 



To answer your question, we deal with mostly the privateer sec- 

 tor. 



Mr. Penny. How do you feel you compare in terms of private sec- 

 tor investment. It is pretty clear by the record that in terms of Gov- 

 ernment support or Government funds complementing private 

 funds, that we are well behind the pace of our competitors. But 

 how about private sector contributions. 



Mr. Seng. On the private sector as well as all the major coun- 

 tries, we have the lowest level of private sector expenditure as well. 



