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Abstract

In 1982, American producers spent about $44 million on domestic generic promotion under Federal programs. Producers also spent about $22 million promoting U.S. farm products overseas. The U.S. Department of Agriculture (USDA) contributed an additional $19 million for promoting U.S. products abroad. Commodity groups spent $91 million generically promoting their products under State-legislated programs in 1979. Generic advertising promotes a type of food, such as milk, orange juice, or eggs, rather than a specific company's product. About 85 percent of all generic advertising and promotion is financed through producer agreements under various Federal and State programs. The effectiveness of generic advertising may depend on such factors as timing, the supply of the product, and prices of substitute products. Questions remain about the effectiveness of generic advertising programs and the costs and benefits to consumers.

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