EVALUATING PRIMARY PRODUCT PROMOTION: The Returns to Generic Advertising by a Producer Cooperative in a Small, Open Economy

Studies have used a variety of criteria to evaluate the benefits from promotion and, relatedly, to prescribe optimal advertising strategy. Gross benefit measures, that do not account for the costs of the commodity, are clearly inappropriate. Allowing for international or interregional trade, or multiple outlets for a commodity (e.g., fresh and Processing) may mean that net benefits are small or zero. Some questions require Measures that account for other costs and benefits (such as consumer benefits and effects on taxpayers through commodity programs). This paper explores the effects of horizontally disaggregating commodity markets (into domestic and foreign and fresh and Processing), and allowing for market distortions from commodity programs, on producer incentives and on measures of the private and social payoff to advertising financed by a Per unit tax or check-off