An economic analysis of California raisin export promotion

The effectiveness of the California raisin industry’s export promotion programs in Japan and in the United Kingdom is addressed in this article. An econometric import demand equation was estimated for each of the two foreign markets. The results indicate that the export promotion programs have increased the demand for California raisins in both Japan and the United Kingdom. The benefit-cost ratios for the Japanese and the United Kingdom markets were computed to be 5:1 and 15:1, respectively; indicating that the benefit of export promotion in terms of expanding export revenue was greater than the cost of the programs. Optimality analysis suggest that, while the current export promotion spending level in Japan is about optimal, the industry should explore the option of investing more money in its export promotion activities in the United Kingdom. [EconLit citations: Q130: Agricultural Markets and Marketing; Cooperatives; Agribusiness; Q170: Agriculture in International Trade; Q180: Agricultural Policy; Food Policy.]