While incentive payments from funds derived from import duties on foreign wool are vitally necessary at present, the sheep industry also has taken upon itself the duty and responsibility of helping itself through a program of promotion and advertising in order to encourage increased production. In establishing this self-help program, the sheepman has acknowledged his sincere intent and purpose to provide a sound foundation for the future. Through the efforts of many woolgrower associations and other farm and livestock groups, a promotion organization was developed and organized in close cooperation with the United States Department of Agriculture. Soon after the Wool Act was passed, the National Wool Growers Association took the lead in organizing the American Sheep Producers Council by inviting all the national farm organizations and national and regional sheep associations to participate. Two organizational meetings were held in 1955 at which NWGA, the National Farmers Union, the Grange, National Livestock Producers Association, the American Farm Bureau Federation, National Wool Marketing Corp., the National Lamb Feeders Association, the Pacific Wool Growers, and the Ohio Sheep Improvement_Association participated. This group with the exception of the American Farm Bureau Federation became the member organizations making up the American Sheep Producers Council. On March 17, 1955, an agreement was entered into between the Secretary of Agriculture and the American Sheep Producers Council in accordance with section 708. Following is the agreement between the Secretary of Agriculture and the American Sheep Producers Council: "Agreement made as of the 17th day of March 1955, between the United States Secretary of Agriculture, Department of Agriculture, Washington 25, D. C. (hereinafter referred to as Secretary) and the American Sheep Producers Council, Inc. (hereinafter referred to as Council), a nonprofit, membership corporation organized under the laws of the State of Illinois "Whereas the Secretary, pursuant to the National Wool Act of 1954 (Title VII of the Agricultural Act of 1954, 68 Stat. 897), hereinafter referred to as the "Act" has announced a price support program for wool marketed during the year April 1, 1955, to March 31, 1956, by means of payments to be made by the Commodity Credit Corporation to the producers of such wool as soon as practicable after the close of such marketing year; and "Whereas it is anticipated that similar programs will be instituted for subsequent marketing years under the Act; and "Whereas section 708 of the Act authorizes the Secretary to enter into agreements with marketing cooperatives, trade associations or other organizations engaged or whose members are engaged in the handling of wool, sheep, and the products thereof for the purpose of developing and conducting on a National, State, or a regional basis advertising and sales promotion program for wool, sheep, and the products thereof; and "Whereas it is desirable that there be instituted an advertising and sales promotion program or programs beneficial on a national basis, for wool, sheep, and products thereof to be financed by pro rata deductions from such price support payment to wool producers; and "Whereas the Council is qualified to conduct such a program, being so organized, having the necessary powers under its charter and bylaws, having for its members marketing cooperatives and other associations who are engaged in or whose members are engaged in handling wool, sheep, and products thereof, and who are represented at meetings of the Council's membership by wool and sheep producers selected on a basis affording nationwide representation, and having a board of directors who also are producers of wool and sheep selected to afford nationwide representation; "Now, therefore, the parties hereto agree as follows: "1. This agreement shall become effective only upon determination by the Secretary that this agreement has approval of the producers as provided in section 708 of the Act. The Secretary will notify the Council in writing as to whether the producers have approved this agreement and as of what day the agreement shall become effective, such effective date to be not later than the 20th day after the date of the notification. "2. The Council shall, from time to time, develop and submit to the Secretary for approval advertising and sales promotion programs and supporting budgets for wool and lambs and the products thereof and such amendments thereto as may be needed. Each such submission shall describe, among other things, the plan of operation and the benefits to be derived on a national basis by producers, commodities to be promoted, the proposed media and methods which the Council intends to use in advertising and otherwise promoting (including related educational and developmental activities) the sale of wool and lambs and the products thereof. After such program and budget have been approved by the Secretary, and in accordance therewith, the Council will enter into such agreements with advertising and promotional agencies, radio and television stations and others, will employ such personnel and will take such other action as the Council deems appropriate or necessary to effectuate such program. 3. When price support payments are made to producers pursuant to the Act, the Secretary will make a pro rata deduction from such payments and pay the amount so deducted to the Council in order to provide the funds necessary to defray the expenses of the Council incurred pursuant to this agreement: Provided, however, That deductions will only be made from payments, if any, which are made to producers for marketings during the marketing years beginning April 1, 1955, and ending March 31, 1959. The deductions from payments for marketings during the marketing year April 1, 1955-March 31, 1956, shall be at the rate of one cent per pound of shorn wool marketed, and shall be made at a comparable rate as determined by the Secretary on lambs and yearlings (pulled wool) marketed; thereafter the deductions shall be at such rates as the Secretary and Council may agree upon, but in no event shall be in excess of a rate of one percent per pound in the case of shorn wool marketed and a comparable rate in the case of lambs and yearlings marketed, as determined by the Secretary. "4. The charter and bylaws of the Council having been approved by the Secretary, any amendments or additions to the charter or bylaws shall be subject to his approval. "5. The Council shall submit annually for the approval of the Secretary proposed budgets for the administration of the advertising and sales promotion programs, and, from time to time, any amendments thereto that it may determine to be necessary. "6. The Council shall furnish the Secretary with a report of its activities semiannually beginning with the period in which the Council either receives any funds from the Secretary under this agreement or undertakes obligations as part of its advertising and sales promotion program, whichever event is the earlier. Such reports shall be furnished within 15 days following the close of each such period. On or before September 15, 1956, and each September 15 thereafter during the life of this agreement, the Council shall furnish a statement of assets and liabilities to the Secretary as of the preceding June 30. The Council shall also furnish the Secretary with such other reports and with such information as he may ffom time to time request. The Council shall keep accurate records of all its transactions, and these records shall be subject to inspection and audit by representatives of the Secretary at all times during regular business hours after the date of this agreement and for three years after the Council has completed performance of all contracts made and obligations incurred. "7. This agreement shall terminate June 30, 1962, unless extended by agreement of the parties hereto. Prior to such date, either party may terminate this agreement by delivering, or mailing by registered mail, a written notice of such termination effective on the date to be specified therein, but not earlier than 30 days after giving of such notice. If the Secretary, on or after April 1, 1956, upon petition or referendum of the wool producers, or otherwise, determines that this agreement is no longer favored by the requisite number of producers, he shall so declare and no deductions from payments to producers shall thereafter be made to defray expenses of the Council, under this agreement, except deductions from such payments as are being made in connection with marketings of a prior marketing year. 8. Upon termination of this agreement, if all the funds of the Council were derived from the payments pursuant to this agreement, all such funds remaining unobligated in the hands of the Council shall be returned to the Secretary of Agriculture, together with a statement explaining the various items which entered into the amount returned to the Secretary; if the Council received funds for advertising and promotion purposes, and general administrative purposes from other sources than the Secretary acting pursuant to this agreement, the Council shall return to the Secretary the same proportion of the unobligated funds as the funds contributed by the Secretary bore to all funds received by the Council for these advertising and sales promotion programs and general administrative purposes. A statement of the assets and liabilities of the Council shall be furnished to the Secretary within 60 days after such termination becomes effective. The provision with respect to the return of unobligated funds shall also apply in case of dissolution or liquidation of the affairs of the Council. "9. The authority reserved to the Secretary under the provisions of this agreement may be exercised by an official or officials of the Department of Agriculture designated by him for such purpose. "March 17, 1955. "March 21, 1955. "E. T. BENSON, "Secretary of Agriculture. "AMERICAN SHEEP PRODUCERS COUNCIL, INC., By: G. N. WINDER, President." This agreement was the subject of a national referendum conducted among sheepgrowers during the summer of 1955 by the United States Department of Agriculture. SHEEP PRODUCERS VOTE FOR PROMOTION The referendum was completed with results showing that 71.3 percent of producers and owners of 72 percent of the sheep represented by those voting in the referendum favored the establishment of the American Sheep Producers Council. This referendum provided the Secretary of Agriculture with positive proof that the majority of sheep producers in the United States favored such a promotion and advertising program. Sheep producers in the United States not only give their own money for a program of promotion and education on lamb and wool, but they have devoted their own time, money and effort in organizing representative State and area sheep councils throughout the country. Membership in the American Sheep Producers Council consists of organizations, such as cooperative marketing associations, trade associations, producer groups, and the like, whose members engage in the production, marketing or handling of lamb or wool and represent all types and areas of sheep production in the United States. The American Sheep Producers Council was formally activated on September 12, 1955, in accordance with the agreement executed on March 17, 1955. The original membership continued to make up the ASPC until March 1957 at which time, in order to provide a broader and more democratic representation, the bylaws were changed to provide for two classes of membership. Class Í members consist of 20 State or area sheep councils which are formed by sheep and wool groups or organizations within a State or group of States. Representation is determined on the basis of one delegate from a State or area sheep council for every $25,000 or major fraction thereof, paid into the promotion and advertising fund. One director is allowed for every $100,000 or major part thereof paid into the fund. Each council is represented by delegates on the above basis and at least one director. In order to meet this provision, it was necessary in some areas to combine two or more States into one council but every State and every area and type of sheep production now has representation on the ASPC. Class I member sheep councils are: Eastern Seaboard Sheep Council including: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Pennsylvania, Maryland, West Virginia and Virginia; Southern States Sheep Council including: North and South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Tennessee and Kentucky; Ohio Sheep Council; Michigan-Wisconsin Sheep Council; Indiana-Illinois Sheep Council; North Dakota-Minnesota Sheep Council; Iowa Sheep Council; South Dakota Sheep Council; Nebraska-Kansas Sheep Council; Missouri-OklahomaArkansas Sheep Council; Texas Sheep Council; New Mexico Sheep Council; Colorado Sheep Council; Wyoming Sheep Council; Montana Sheep Council; Utah Sheep Council; Idaho Sheep Council; Oregon-Washington Sheep Council; California Sheep Council; and Arizona-Nevada Sheep Council. NATIONAL AND REGIONAL MEMBERSHIP Class II members serve the sheep industry on an extensive national or regional basis. Present class II members include: the National Wool Growers Association, the National Wool Marketing Corp., the National Grange, the National Farmers Union, the National Livestock Producers Association, the National Lamb Feeders Association, and the Pacific Wool Growers. All major farm organizations that serve the sheep industry have full opportunity to participate in membership at any time. Each class II member is represented by delegates and not more than one director. All State or area sheep councils were formed at the local level by sheepmen within that State, or area. Delegates to represent the various councils, as well as the class II member organizations, must be engaged in production of wool and lamb, and are selected by their fellow sheepmen making up that council or organization. Delegates representing class I and class II members elect the directors from their own group. Directors of the council annually elect officers, including a chairman of the board, a president, vice-president, treasurer, assistant treasurer and executive secretary. The executive secretary is responsible for the active administration of the council's headquarters office and supervisor of its staff and personnel. Because the sheep is a dual product animal, the board of directors were faced with two distinct products to promote with entirely different problems. With respect to wool, there were already several established agencies working in the field of wool promotion and advertising so in order to make a well coordinated program and to avoid duplication, we decided to work in conjunction with these agencies and to thus supplement the work that they were doing. In addition, joint advertising was worked out with several individual woolen mills. The Brilliant full-color advertisements are used to stimulate interest in wool as a quality product and to educate the consumer as to the advantages of wool. largest wool advertising and promotion program in history is currently being conducted by the sheep industry through the American Sheep Producers Council and allied wool organizations. These color ads in national consumer magazines educate the consumer-men, women, teen-agers and children—in the advantages of wool, help to establish style trends for consumers, and assist in building wool as a prestige product. Considered important in the advertising and promotion program for wool are the trade ads, which keep designers and manufacturers informed of the style trends and at the same time assure them that there is a market for wool products. Trade ads cover every facet of production, from blankets and clothing to upholstery for automobiles. Wool sportswear, an increasingly important market, also is promoted extensively both in consumer ads and in trade magazines. To round out the advertising program for wool, educational and promotion materials for retail stores play a vital role. Booklets, publicity, educational films, and other promotional aids keep the retailer and his sales force completely informed on wool fabrics and merchandising and sales techniques. In addition, the retailer is provided with display material on wool fabrics, window display ideas and copies of wool ads, all to help increase the demand for wool by creating instore consumer interest. When it come to lamb, we found an entirely different situation. There were no existing agencies set up to advertise and promote lamb except the National Livestock and Meat Board and they are concerned with all types of meat and could devote only that portion of their time and effort to lamb that lamb represents in the overall meat picture; further the policy of the National Livestock and Meat Board prevents them from using any paid advertising. I am quite familiar with the activities of the National Livestock and Meat Board, having served for 13 years on the board and was privileged to serve 2 years as chairman. The sheep producers support the National Livestock and Meat Board today as they always have in the past. Let me say here that all of our programs have been well coordinated with the Meat Board and their staff and facilities have been made available wherever and whenever they could be of assistance. In order to get a lamb promotion program underway, it was necessary to start from scratch. In order to properly operate, we set up a lamb advertising department, a lamb merchandising department, a consumer service department and an education and information service. Each department is supervised by a department director or chief, who works closely with all departments to develop a wellcoordinated program. us. After careful investigation and study, we found three basic problems confronting One was the extremely distorted pattern of distribution and consumption of lamb. It was found that 70 percent of the lamb was consumed in 6 States that comprise only 30 percent of the population. These States were New York, New England, and California which, with the exception of California, are the areas where lamb is not raised. Another problem was the amazing lack of knowledge of lamb on the part of consumers and meat retailers. Another was the unfounded prejudices regarding lamb in the minds of many people. After careful consideration it was decided that in order to overcome these problems we would conduct an educational type advertising and promotion campaign in a selected group of metropolitan areas. They are: Baltimore, Washington, Philadelphia, Cleveland, Detroit, Chicago, Milwaukee, Houston, Denver, Salt Lake City, Portland, Seattle, Northern California and Southern California. It is anticipated that more cities will be added as the program develops. Briefly here is how the various departments coordinate a lamb promotion and advertising program in a metropolitan city. After considerable research and study of all phases of supply and demand, a promotion and advertising schedule is prepared. At least a month before advertising begins, the lamb merchandising and the consumer service departments make personal contact with persons and firms who will be, in any way, connected with the purchase or sale of lamb. Lamb merchandising men contact all packers and many retailers in the marketing area informing them of the approaching advertising campaign and soliciting their cooperation. Home economists in the consumer service department solicit the help of food editors in publicizing lamb recipes. They also conduct an intensive grassroots program by giving demonstrations on lamb cookery before women's groups and the home economics classes of schools and colleges. Once this thorough groundwork is well underway, the advertising program is launched using newspapers, radio or television or some combination of those media. This advertising stresses the economy, nutritional value and taste appeal of the lesser known cuts of lamb. The consumer advertising approach is one of information and education. Conducted on a market-by-market basis, expenditures are determined by population, dollar volume of food sales and the lamb consumption factor in that particular area. The ASPC conducts an intensive educational advertising program in hotel, restaurant, institutional, meat retail and provisioner trade publications. Advertising is coordinated with media merchandising, publicity and fieldwork of ASPC home economists and merchandisers. Examples of ads and materials include: Full-page, full-color ads in major metropolitan newspapers featuring new uses, new recipe ideas. One-third of a page black-and-white newspaper ads featuring recipe ideas and slanted toward overcoming misconceptions about lamb. Fine, informative television commercials featuring recipe ideas. Meat retail trade ads-new methods and profitable techniques. As a part of its advertising and promotion effort, the American Sheep Producers Council found that it had to create and develop many merchandising aids for lamb. There were no new educational tools or aids. For example, no new recipes had been developed for lamb in the field of quantity feeding for hotels, restaurants, and institutions since 1938. There were no educational devices for schools and colleges. There were few merchandising aids for packers and retailers. Since its inception, the American Sheep Producers Council has developed many aids and merchandising tools. A few of the educational and merchandising aids developed by the ASPC include its complete Lamb Cutting and Merchandising Manual, the first of its kind ever developed for packers and meat retailers; pointof-sale material, consumer recipes, motion pictures for consumer and retailer education, and a restaurant technical bulletin. ASPC merchandising materials have been acclaimed as among the finest and most helpful aids ever offered. Examples of merchandising aids for meat retailers are: Full-color point-of-purchase poster materials supplied to all meat retailers at no charge. Colorful series of recipe folders supplied to all meat retailers for distribution to customers. Several million folders also have been distributed to consumers through direct mail, media editorial departments, women's clubs, schools and colleges. Recipe labels produced for either heat sealing to outside of packaged lamb, or for insertion inside wrapped lamb packages. Since one of the principal goals of the American Sheep Producers Council is to broaden the demand for lamb, extensive "grassroots" promotion is needed. This is accomplished by supplying Mrs. Homemaker with information on how to properly prepare and serve lamb. Home economists in the consumer service department work with women's groups, clubs, colleges, and high schools in con |