The beef checkoff where we ve been and where we re going
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The Beef Checkoff: Where we’ve been and where we’re going. Beef Checkoff History. Beef checkoff programs in the U.S. date back to 1922 … when the assessment rate was 5¢ a carload. Beef Checkoff History. Voluntary state programs Referendum in 1977. Referendum in 1977. Complicated

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The Beef Checkoff: Where we’ve been and where we’re going

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The beef checkoff where we ve been and where we re going

The Beef Checkoff:Where we’ve been and where we’re going


Beef checkoff history

Beef Checkoff History

  • Beef checkoff programs in the U.S. date back to 1922 … when the assessment rate was 5¢ a carload


Beef checkoff history1

Beef Checkoff History

  • Voluntary state programs

  • Referendum in 1977


Referendum in 1977

Referendum in 1977

  • Complicated

  • Value-added assessment

  • Voting at ASCS offices

  • Required two-thirds majority

  • Failed (56.6%)


Referendum in 1980

Referendum in 1980

  • Reduced assessment

  • Required simple majority

  • Targeted 30,000 “joiners”

  • Failed (34.6%)


Prior to 1985 farm bill

Prior to 1985 Farm Bill

  • Surveyed producers – ask what they wanted


What producers wanted

What Producers Wanted

  • Everybody pays/simple assessment

    • No free rides

  • Grass-roots Control

    • States keep 50 cents

  • Producer Control

    • Nominated by fellow producers


What producers wanted1

What Producers Wanted

  • Cost-effective program

    • Limit on administrative expenses

  • Test run to see if it works

    • 18-month test period before voting


Referendum in 1988

Referendum in 1988

  • Simple assessment ($1 per head)

  • Voting at Extension offices

  • Required simple majority

  • Passed (79%)


Today s beef checkoff program

Today’s Beef Checkoff Program

  • Established as part of the 1985 Farm Bill

  • Became mandatory via national referendum vote by producers in 1988

  • States retain 50 cents on the dollar; forward 50 cents to Beef Board

  • CBB administers program, subject to USDA approval


Where checkoff dollars come from

Where Checkoff Dollars Come From

$1 per head invested by about 900,000 beef, dairy & veal producers – $72.1 million

$1-per-head equivalent invested by importers – $7.6 million

$1 per head invested by producers in five states without beef councils – $44,000


Program definitions

Program Definitions

  • Promotion

  • Research

  • Consumer Information

  • Industry Information

  • Foreign Marketing

  • Producer Communications


Beef checkoff guidelines

Beef Checkoff Guidelines

  • No lobbying

  • No Unfair or Deceptive Practices

  • No reference to a brand or trade name of any beef product without Beef Board and USDA approval


Beef checkoff guidelines1

Beef Checkoff Guidelines

  • No expenditures that relate primarily to live cattle production or marketing – must be directly related beef or beef products.


Coordinated programs

Coordinated Programs

  • Nationwide industry

  • Global marketplace

  • Operating Committee combines state and national leadership


2008 beef industry contractors

2008 Beef Industry Contractors

National Cattlemen’s Beef Association

National Livestock Producers Association

American National CattleWomen

U.S. Meat Export Federation

Meat Importers Council of America

American Veal Association


Key beef checkoff accomplishments

Key Beef Checkoff Accomplishments


Beef it s what s for dinner

“Beef. It’s What’s for Dinner”

86 percent of consumers recognize tagline

New campaign celebrates “The Power of Protein in the Land of Lean Beef.”


Muscle profiling

Muscle Profiling

  • Analyzed more than 5,500 muscles from chuck and round

  • Found several muscles traditionally ground had potential for higher-value steaks


New product development

New Product Development

  • More than 2,500 new products since 1998


Beef nutrition education

Beef Nutrition, Education

  • Nutrition & Beef: Developing a positive relationship


Leaner than ever

Leaner than Ever!

29 beef cuts meet government guidelines for “Lean” – including favorites like tenderloin, T-bone and 95% lean ground beef.


Leaner than ever before

Leaner than Ever Before!

  • Comparing 3-ounce cooked servings, these cuts have only 1.2 grams more saturated fat than a skinless chicken breast yet less total and saturated fat than the same size serving of a skinless chicken thigh

  • Research shows lean beef can play the same role as skinless chicken or fish in a cholesterol-lowering diet


Beef quality audit

Beef Quality Audit

  • National Beef Quality Audit in 1991 said industry was leaving $279.82 per carcass on the table due to:

    • waste (fat)

    • insufficient muscling

    • taste (palatability, marbling, maturity and gender)

    • management (hide defects, carcass and liver pathology, tongue infection, injection sites, bruises, dark cutters, etc.)

    • carcass weight.


Beef quality audit1

Beef Quality Audit

Follow-up audits in 1995 and 2000 showed reductions in waste from $279.82 per animal in 1991 to $104.92 per animal in 2000!


Beef quality assurance

Beef Quality Assurance

2005 BQA audit:

Focused on identifying needs for BQA/producer education efforts vs. comparison, but still found:

  • 6-percent increase in cattle grading Choice or higher and 3 percent increase in yield grades 1 and 2.

  • Significant reductions in brands, bruising and horns


Safety research intervention

Safety Research & Intervention

  • Since 1993, checkoff has invested more than $35 million in beef-safety research

  • Today, checkoff-developed food safety systems are used in processing of 90% of fed cattle in the U.S. and can reduce bacteria during processing by 99.99 percent


Foodservice partnerships

Foodservice Partnerships

  • Over six years, the beef checkoff allocated $2.4 million to foodservice partnerships, while partners invested $138.6 million


Food communications

Food Communications

  • Reach consumers more than 1 billion times a year by providing editors with recipes, photos and beef facts


Checkoff results

Checkoff Results?

What does it all mean for the beef industry?


Evaluation

Evaluation

  • Specific outcomes

  • Measurable

  • Achievable

  • Relevant

  • Time bound


Beef demand index

Beef Demand Index

1. USDA per capita beef supplies

2. USDA Choice retail prices

3. Adjustment for inflation based on Consumer Price Index

4. Fixed relationship between beef price and quantity demanded, called elasticity


Beef demand

Beef Demand

All told, Cattle-Fax estimates that the increase in consumer demand for beef since 1998 has added about $250 per head to the price of fed cattle and about $200 per head to the price of calves


Consumer confidence

Consumer Confidence

Percent confident U.S. beef is safe from BSE


Beef safety

First BIFSCo Meeting Held

Jan. 2003

Beef Safety

Prevalence of E. coli O157:H7 in Ground Beef

* and ** indicate a change to more sensitive sampling and methodology


Carcass value

Chuck Roast 99¢/lb

Flat Iron $5 - $6 lb

Carcass Value

  • New products created through muscle profiling contributed to a $60- to $70-per-head increase in value of the chuck, and new products represent 28 percent of demand growth since 1998

    - Cattle-Fax


Consumers responding

Consumers Responding!

More than 20,000 restaurants have offered Beef Value Cuts and about 10,000 U.S. supermarkets are offering them – nearly double the 5,000 offering them in 2005 and up from just 321 in 2003


Consumer expenditures on beef

75

70

65

Record $74 billion

B

60

I

55

L

50

$

45

40

35

90

91

92

93

94

95

96

97

98

02

03

04

05

06

07

99

00

01

YEARS

Source: USDA & Cattle-Fax

Consumer Expenditures on Beef


Accountability

Accountability

  • Producers in the U.S. are the investors and hold all contractors accountable for expenditures

  • Important to follow procedures set by the Beef Board through USDA and the CBB Executive Committee

  • Two important rules include checkoff acknowledgment and brand or trade name references


Acknowledgment

Acknowledgment

  • Critical to acknowledge funding source or sources so investors realize return on investment

  • Simple “Funded by the Beef Checkoff” with Beef Check Logo with domestic use

  • USMEF has a variance for multi-species international marketing


Beef checkoff acknowledgment

Beef Checkoff Acknowledgment

  • With the realization that the Beef Check Logo may not have particular meaning in some international arenas, it is adequate for multi-species promotional and educational materials in these markets to appear with USMEF’s U.S. Meat logo.

    • If, however, the materials are used in presentation in the U.S., the Beef Check Logo and tagline must be used.

  • If another funding source, such as pork or MAP funding, is recognized with a separate logo, then the Beef Check Logo must also be included, though the domestic tagline is not required.

    • Must be at least as prominent in size and location as other logos.


Beef checkoff acknowledgment1

Beef Checkoff Acknowledgment

  • The “American Beef Club” logo may be used in place of the Beef Check Logo in international markets if no other protein logos are used.

  • The “High Quality American Beef” logo is appropriate for use in place of the Beef Check Logo when the nature of the activity requires use of only one logo.

  • When no other species’ logo is used but the activity is jointly funded by beef and pork, for example, the tagline “Funded by U.S. beef and pork producers” or similar wording may be used, and the Beef Check Logo omitted.


Brand trade name references

Brand & Trade Name References

  • Any reference to brand or trade names where beef checkoff dollars are invested must be approved by the Beef Board and USDA


Looking ahead

Looking Ahead

What can we do better?


Long range plan 2010

Long Range Plan 2010

  • Increase demand 10% by 2010

  • Become a net exporter in terms of value by 2010


Enhancing the checkoff

Enhancing the Checkoff

  • USDA asked Beef Board to gather ideas

  • CBB Administration Subcommittee will make recommendations to CBB Executive Committee by November 2008

  • Full Beef Board will vote on recommendation from Executive Committee in January 2009


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