What Has Your Beef Checkoff Program Done for You Lately?
Every time you sell a beef animal, you pay your $1-per-head assessment into the Beef Checkoff Program, which invests those dollars into programs aimed at building demand for beef – in Pennsylvania, across the nation, and around the world. But after that dollar leaves your pocket, it’s important that each of you who pays the beef checkoff tracks your investments to ensure that they are working in your favor – just like you do with any other investment you make.
Well, we’re here to tell you that the latest results are just about as good as you could hope for. Between the prodigious results we recently got from the Return on Investment (ROI) study of your checkoff dollars; the increase of 6.7 percent in beef demand during the second quarter of 2014; and the robust beef market and prices, we have a lot to celebrate!
In fact, by just about every measure, 2014 is panning out to be something you will talk about for years to come – but for good reasons! And with the efforts of the checkoff program continuing to make consumers better understand the benefits of eating beef as part of their healthy diets, Kansas State University ag economist Glynn Tonsor says 2015 is likely to be a reiteration of this year.
During a recent beef-outlook webinar, Tonsor concluded that “2014 and 2015 are expected to be record-setting for cow-calf producers – and by a long way.” Add to that the conclusion of that ROI study, which indicates that each dollar you invested in the Beef Checkoff Program between 2006 and 2013 returned about $11.20 to the beef industry – and you’ve got yourself a strong set of results you can wrap your arms around.
Dr. Harry Kaiser, the Gellert Family professor of applied economics and management at Cornell University, completed that ROI study: “The findings couldn’t be better for beef importers and beef growers in the United States,” he said. “I found that the Beef Checkoff Program had a substantial impact on beef demand, both in the United States and in international markets… Had there not been CBB marketing activities during the study period, beef demand in the United States would have been 11.3 percent lower than it actually was.”
With these kinds of results, it’s not hard to see why producer support for the beef checkoff is 78 percent – its highest in 21 years, according to the latest producer attitude survey. As determined by the beef producers and importers who make up the Cattlemen’s Beef Board and the Federation of State Beef Councils, those kinds of results come from checkoff investments in programs including:
• Promotion and education to and for consumers, retailers and restaurant owners
• Extensive beef-safety, product-enhancement, human-nutrition, and new-product development research to continue improving the quality and safety of your end product
• Market research to identify and respond to consumers’ changing demands for beef and beef products
• Beef-industry training, from farm to fork, to help everyone in the production chain take responsibility for their roles in maintaining a desirable product
• Foreign-marketing efforts in more than 100 countries across the globe – which theROI study shows boosted foreign demand for U.S. beef by an additional 6.4 percent between 2006 and 2013
With millions of checkoff dollars a year ($7.5 million in 2014) going to promotion of and education and training about U.S. beef across the globe, the value of U.S. beef exports in 2013 eclipsed the $6 billion mark for the first time, surpassing 2012 totals by nearly 13 percent in volume and 12 percent in value. And thanks to those results in the global marketplace, the export value of fed slaughter is currently about nearly $300 per head.
In addition, the checkoff’s new all-digital consumer-advertising program is reaching out to the target domestic beef audience – the millennial generation (between about 18 and 35 years old) – in the places where these consumers say they get pretty much all of their information – the Internet, especially social-media platforms, like Facebook, Twitter, Pinterest, and Instagram.
This critical market of consumers is 80 million strong and represents the consumers of the future, so responding their demands from our products is critical. That includes providing products that are convenient, ease to prepare (with tips readily available online), nutritious, and providing information to them about exactly where their beef comes from and the processes it goes through to reach their supper tables.
The bottom line is this: Thanks in great part to your checkoff investments, beef is driving traffic to grocery stores and meat cases, where consumers have remained steadfast in their wiliness to pay more for beef, even as beef sets new high prices and supply remains at one of its lowest levels ever. And we think that is something that every beef producer and importer who pays the checkoff should be proud of!