Beef Board News Archives - Page 7 of 8

The national Beef Checkoff was established as part of the 1985 Farm Bill and initiated by beef producers when 79 percent voted to make the Checkoff mandatory in a 1988 national referendum. To this day, the Checkoff is still producer-led. To accomplish the goals and objectives of the Beef Industry Long Range Plan, Checkoff committee members from the Cattlemen’s Beef Board (CBB) and the Federation of State Beef Councils collaborate together to drive demand for beef.

Producer leaders on the CBB with backgrounds in cow/calf, feeder, stocker, veal, dairy and imports oversee the investment of Checkoff funds. Nominated through a certified nominating organization, each member has the responsibility of serving on committees with specific functions.

The Beef Checkoff program committees and working groups are formed based on the strategies identified in the Long Range Plan; consumer trust, export growth, innovation, investor relations, market research, nutrition and health and safety. These committees review Checkoff work and make recommendations to the Beef Promotion Operating Committee, which ultimately makes program and contractor funding decisions. Approved contractors then develop plans and programs in the areas of promotion, research, consumer information, industry information, foreign marketing and producer communications. Also, the Checkoff has two additional joint committees with members of the CBB and Federation: the Beef Promotion Operating Committee and the Checkoff Evaluation Committee.

Members of Beef Checkoff program committees and working groups are split evenly with 20 members from the CBB and 20 members representing the Federation of State Beef Councils – the Beef Industry Council’s successor organization. This split reflects both national and state priorities and helps the Beef Checkoff spend dollars more effectively and efficiently.

The Beef Promotion Operating Committee has 20 members, 10 of whom are elected to serve by the Cattlemen’s Beef Board, while the other 10 are selected by the states through the Federation of State Beef Councils. No program is approved unless two-thirds of the members of the Operating Committee vote to accept it. This means a program must have recognized value to earn the consensus needed for funding.

There are two administrative committees under the CBB: Executive and Budget and Audit. Committees under the CBB administer matters related to the Beef Promotion Research Act and Order.

Committee members make significant decisions for the Beef Checkoff and the industry; that’s why the CBB encourages producers across the U.S. to get involved in the process. All Checkoff meetings are open for producers to attend. Visit the meeting center DrivingDemandForBeef.com to see upcoming meetings and teleconferences. To become a member of the board, a producer should work with a certified nominating organization to become nominated, then appointed by the Secretary of Agriculture. The Beef Checkoff is a program built by producers for producers and is strengthened by those involved who lend their voices, thoughts and ideas.

Driving the Demand for Beef

Jared Brackett

Cattle prices have plummeted in recent weeks due to supply chain disruptions from the coronavirus pandemic. Despite the current challenges, Cattlemen’s Beef Board Chair Jared Brackett says the checkoff program continues to drive demand for beef. The mandatory Beef Checkoff is $1 per head collected each time cattle are sold. Brackett, who is a cow/calf producer and cattle feeder in southern Idaho, says it is bothersome when prices are not profitable. “It does bother me when I get $1.09 for a pen of cattle I trade three weeks ago that graded 42 percent prime and 58 percent choice,” says Brackett. “That’s $20 under what I got last year at this time. I tell my fellow producers keep doing what you do best; that’s producing safe, nutritious beef.” The full RRFN interview with Brackett is available here.

Beef exports and imports are certainly a challenging topic to tackle for American cattle farmers and ranchers, but are an integral part of our beef industry here in the United States.

At first glance the idea of importing foreign beef into the U.S. may strike cattlemen and women here as a curious practice. If we grow arguably the best beef in the world in this country, why bring in more? The reason lies in the types of beef we Americans love to eat – mainly steaks and ground beef. In fact, CattleFax estimates that over 51% of the beef consumed in the United States is ground beef.

Steaks are high-demand, high-value cuts and consumers are willing to pay higher prices for them. This is great because it brings more value to the cutout. But American consumers also love hamburgers, and most of those are consumed at fast food restaurants at low prices. Since American farmers and ranchers are producing more Prime and Choice-graded beef these days, the value of the non-steak cuts, due to global demand, are higher than the value of hamburger. So rather than grind them into burgers, we can export them for a premium.

However, in order to meet that domestic demand for inexpensive fast food hamburgers we need to import beef. Despite what you might visualize imported beef to be, most of the beef we bring into the U.S. is lean trim, not muscle cuts for sale at retail. In conversations I’ve had with industry experts, most estimate that at least 90% of our imports are inexpensive lean trim or manufacturing beef that is then ground with fat (something we produce but consumers don’t buy outright) from our corn-fed animals to produce all those fast food hamburgers at cheap prices for hungry American consumers.

At the same time, we export other beef cuts (which could have been ground) and variety meats (which we don’t like to eat here) to other markets around the world. Those markets have a high demand for those cuts, so we can then receive top dollar back for those items. For example, short plate could be ground and get about $1.50 per pound here, but as a high demand item in Japan, they will pay double that price per pound. Assuming each short plate weighs 15 pounds, USMEF estimates that one item is adding about $22.50 per head of value. Tongues are another great example. No one I know around here grills them up on the weekend! Demand for those are low, only fetching about $1.00 per pound here in the United States. But in Japan, every person I know loves to grill tongue, so they pay more than $5.50/pound there. That adds another $13.00 per head.

This happens with other cuts in other countries as well, helping to add value – especially to low demand items in the U.S.According to CattleFax, the amount of beef we imported compared to the amount of beef we exported last year is expected to be about the same (final 2019 figures will be released in February).However, and this is very key, the value of our exported beef is estimated to be about $1.3 billion higher.

In a nutshell, we are meeting the desires of consumers with the beef they want to purchase, wherever they are in the world. The global competition for these cuts helps us get the best prices possible and boosts demand for our cattle.

Next time we’ll discuss the role the Beef Checkoff plays in imports and exports.

Dairy cattle operations contribute significantly to the beef industry, making up 21 percent of the total U.S. beef supply in 2018¹ and representing approximately 25 percent of Beef Checkoff assessments. To underscore the important relationship between the checkoff and the dairy sector, Beef Checkoff representatives traveled to the dairy industry’s joint annual meeting—organized by the National Milk Producers Federation with the National Dairy Promotion and Research Board and the United Dairy Industry Association—in New Orleans, November 4-6, to engage with dairy producers, educate them on how Beef Checkoff dollars are spent and gain their thoughts on checkoff programs and activities.

As dairy producers also pay into the Beef Checkoff for their beef cattle, it is important for the checkoff to be a part of these industry events. Of the 800-plus producers and industry professionals in attendance, more than half visited the Beef Checkoff booth where they were able to hear checkoff updates, ask questions and subscribe to The Drive.

Every fall, dairy producers, member cooperatives, Young Cooperators (YCs), industry representatives, staff and others from all over the country arrive for three days of speeches, reports, banquets, general sessions, town hall meetings and award ceremonies. Taking place in a different U.S. city each year, the annual meeting represents an opportunity for the dairy industry stakeholders to get together and share their common accomplishments and challenges, as well as discuss the best route for the industry’s future.

Throughout the course of the event, producers noted feeling pressure as milk demand declines, but with that, they are thankful the Beef Checkoff is supporting them through different revenue streams. Many said they are cross-breeding their heifers with other strong beef breeds to earn better premiums when the cattle eventually go to beef processing.

“It is great to see the Beef Checkoff engaging with dairy producers,” said Melvin Mederios, California dairy farmer and Cattlemen’s Beef Board Member. “As a whole, I think most producers are really pleased with the results coming out of checkoff-funded programs. The goal is to drive beef demand, and we are seeing dairy producers adjust their operations to capitalize on that demand.”

Attending events such as this to gain producer insights and feedback is a top priority for the Beef Checkoff. In order for the checkoff to remain effective, it is imperative producers understand the checkoff programs that are in place and how they are helping drive demand for beef. Producer thoughts and feedback directly impact future checkoff programs and initiatives, and these events create a great opportunity to foster relationships and encourage dialogue between the national program and the everyday beef farmer.

The Beef Checkoff was designed by producers, for producers, to build value by focusing on key areas of research and promotion to drive demand for our beef around the world. But who decides where checkoff dollars are best utilized?

The decision-making works with one simple purpose in mind – producers and importers making decisions to fund programs and activities that enhance their bottom lines. As it should be – it’s only right that those with skin in the game are the ones who make the funding decisions.

Simply Producer-Driven

As I described last month in “The Reality of the Beef Checkoff,” there are layers of processes and procedures in place to ensure that decisions are producer-driven at both a local and national level and that checkoff dollars are invested according to strict and specific parameters. This decision-making is mandated through the Beef Promotion and Research Act, and USDA has been delegated authority by Congress to ensure this happens.

Producer and importer representation and involvement are at the heart of the Beef Checkoff. It is through joint committee efforts between the Cattlemen’s Beef Board (CBB) and the Federation of State Beef Councils that producers can formally have their say in how Beef Checkoff dollars are invested each year.

Certified beef industry organizations nominate individual beef producers and importers to the Secretary of Agriculture for appointment to the CBB. The Secretary then selects individuals from those nominations, with the number of producers in each state determined by the cattle numbers in their state. In 2020, there will be 99 members of the CBB Board. Those members have the opportunity to serve on CBB checkoff committees, CBB administrative committees, the evaluation advisory committee, as well as the Beef Promotion Operating Committee (BPOC).

One of the most important roles for CBB Board members is to participate on CBB checkoff committees, which are comprised of 20 CBB members and 20 members of the Federation of State Beef Councils. These committees are created to match up with key goals that were determined by the industry Long Range Plan (LRP). These committees are Export Growth, Consumer Trust, Innovation, Safety and Nutrition and Health. Over several meetings throughout the year, qualified contractors present preliminary projects and ideas (Authorization Requests) to these checkoff committees, who then score each of the projects, provide comments and feedback, and request revisions to ensure the projects are as efficient and beneficial to the industry as possible. The updated projects and the committee feedback are then submitted, along with other evaluation results, to the BPOC.

BPOC members all go through an intense screening and interview process by fellow producers and importers before they are appointed. It is a very competitive process, which is conducted each year, with many more applicants than seats. Each September, the BPOC (comprised of 10 CBB members and 10 members of the Federation of State Beef Councils) reviews and hears presentations on all the Authorization Requests (ARs) by the qualified contractors.

Total amounts requested by the contractors are typically much higher than the available funds, so the BPOC must determine which projects to fund (or not to fund). This September, for example, the BPCO reviewed nearly $51 million in funding requests and allocated about $40.9 million into programs of beef promotion, research, consumer information, industry information, foreign marketing and producer communications for fiscal year 2020.

A two-thirds majority is required to approve any project, so those projects which appear to provide the best return to the industry are approved for funding. This proposed budgeting plan is then submitted to the full board for approval. If approved by the full board, the budget, ARs and contracts are finally submitted to USDA for approval.

Collaboration

It’s a well-defined, layered and structured process, full of checks and balances, all of it geared toward ensuring that your voices are heard, and that cattlemen and women benefit from the work that is done with Beef Checkoff dollars.

This decision-making process fosters collaboration among stakeholders in the industry, ensuring that all decisions are made with strong rationale.

For many, the best place to get involved is by attending CBB and qualified state beef council meetings. Meetings are open to the public, and all are encouraged to attend. To become a member of the Cattlemen’s Beef Board, a producer should work with a certified nominating organization in their specific state, region, or unit.

Producer-driven. As it should be. When it comes to the Beef Checkoff, those with skin in the game make the investment decisions and benefit from those investments.

The return on investment (ROI) analysis, independently conducted by Dr. Harry M. Kaiser of Cornell University in June, shows the promotional efforts by the Beef Checkoff during the five-year period from 2014 through 2018 were highly effective and positive for the beef industry. Overall, every dollar invested in Beef Checkoff activities returned $11.91 to the beef industry, driving demand.

During the five-year review period, all Beef Checkoff promotion and research activities increased total domestic beef demand by 12.8 billion pounds. In other words, had there been no Beef Checkoff activities during that time, domestic beef demand would have been 14.3 percent lower. As for foreign demand, results indicated that if there had been no foreign market development efforts by the Beef Checkoff, U.S. beef export demand would have been 5.5 percent lower in the eight foreign markets studied within the analysis.

The Beef Checkoff expenditures align within these nine areas of focus: general beef advertising, foreign market development, industry information, new product and culinary development, product enhancement research, channels marketing, beef safety research, nutritional research and public relations. Within those categories, advertising receives the most funding, followed closely by foreign market development, to ensure beef is at the forefront of consumers’ minds and helps grow U.S. beef demand around the world.

Every five years an outside research group conducts an ROI analysis to assess the program’s impact within the beef industry and to safeguard the effective and efficient use of producer dollars.

In the few months since I took the helm as CEO of the Cattlemen’s Beef Board (CBB) – the governing and administrative organization of the Beef Checkoff – there appears to be many misperceptions, false rumors, and misinformation about how the checkoff works and is administered. Let’s look at its history, what the Beef Checkoff can and cannot do, as well as the processes and procedures we have in place to continue to be strong stewards of your checkoff dollars.

THE CREATION OF THE BEEF CHECKOFF

The Beef Checkoff was created through the Beef Promotion and Research Act of 1985 as part of the Farm Bill. It was initiated as an effort driven by producers who saw an important need for more promotion and research to stave off falling beef demand in the late 1970s / 1980s and was designed to be producer driven at both a local and national level. Immediately following its passing, the Beef Promotion and Research Order was created, outlining the detailed rules for governance over the program, funding distribution, contractor requirements, etc. The areas where checkoff funding can be used are clearly defined: promotion, research, consumer information, industry information, and producer communications. Conversely, lobbying or “influencing governmental action or policy” is also clearly prohibited.

Within 22 months, a referendum was conducted among producers throughout the U.S. to vote on the continuation of the program – which was passed by 79% of farmers and ranchers. The Beef Checkoff as we know it came life in 1988. Copies of both “The Act and Order” are available online at beefboard.org/beef-act-and-order, or you can contact our office and we can ensure you get a copy.

USDA OVERSIGHT

The Act and The Order is our rulebook – set in law – that we must follow every day. To ensure all aspects of this law are followed, the USDA is delegated authority by Congress to oversee the Beef Checkoff Program. As part of its oversight responsibilities, USDA reviews and approves our plans, projects, budgets, contracts, processes and procedures, and keeps a watchful eye over our financials, our board, our communications, and our operations. In fact, the Secretary of Agriculture himself appoints all 99 CBB board members, which includes both domestic producers and importers, a process outside of our purview.

CATTLEMEN’S BEEF BOARD

The Act and The Order outlines additional specifics about the governance supporting your checkoff dollars. As noted, they outline the type of activities that can/cannot be funded; define that all efforts must be producer-driven; that the CBB board members must be producers and importers who serve on the national board in a voluntary capacity for 3-year terms; that no member shall serve more than two consecutive terms; and that the number of board members are based on the cattle inventory of each state.

BEEF PROMOTION OPERATING COMMITTEE

Another piece outlined by The Act and The Order is the Beef Promotion Operating Committee. This important group of 20 producers and importers is created by appointed positions from the Cattlemen’s Beef Board (10 members) and the Federation of State Beef Councils (10 members). This committee oversees the distribution each year of nearly $40 million of national Beef Checkoff dollars to beef industry contractors to do the work outlined in The Act and The Order. Funding decisions must be made together by both national and state-level decision-makers, with great consideration to the balance between the national and regional needs of producers. No funding decision can be made without approval from at least two thirds, or 14 of the Operating Committee members, so neither the CBB nor the Federation can dictate where funding goes. As such, programs must show great benefit to the industry as a whole to get approved.

BEEF CHECKOFF CONTRACTORS

The Beef Checkoff currently partners with eight national non-profit, beef industry-governed organizations we call contractors. All contractors are vetted, audited, and reviewed regularly by the Cattlemen’s Beef Board. Each contractor must meet specific criteria to receive Beef Checkoff funding, a process that can take up to a year to facilitate. In fact, the U.S. Cattlemen’s Association just became a new contractor this year.

The Act and The Order states that contractors to the checkoff be national non-profit industry-governed organizations that are governed by a board of directors representing the beef industry, and have been active and ongoing for at least two years. All contractors work on a cost-recovery basis, meaning they must do the work outlined in their funding request and then seek reimbursement for their costs. This allows for the Cattlemen’s Beef Board to have direct oversight of expenses that use checkoff funds. If expenses are submitted that do not meet The Act and The Order, they are not reimbursed. Thus, the checkoff does not pay for anything it should not. In addition, if a contractor has a lobbying arm, they must prove they have an accounting “firewall” between their checkoff and lobbying dollars. The Cattlemen’s Beef Board works closely with these organizations so that checkoff dollars aren’t used outside of the scope of the Act and Order.

Our eight contracting organizations for Fiscal Year 2020 (Oct. 2019 – Sept. 2020):

American Farm Bureau Foundation for Agriculture
Cattlemen’s Beef Board
Foundation for Meat and Poultry Research and Education
Meat Import Council of America
National Cattlemen’s Beef Association
National Livestock Producers Association
North American Meat Institute
United States Cattlemen’s Association

In addition, our contractors work with four subcontracting organizations:

Kansas State University
North East Beef Promotion Initiative
National Institute for Animal Agriculture
United States Meat Export Federation

The Beef Checkoff plays an extremely important role in providing education and driving demand for our beef. Competition is fierce among proteins in the United States and global markets now, so we are proud of our contractors and the work they do every day to ensure beef continues to be the number one protein to consumers everywhere. We have small contractors and large ones; we have contractors with very targeted audiences, and those who reach large swaths of the population. Whether building a promotional campaign, researching nutrition and health, championing handling and safety, or engaging consumers, together they each play an important role in driving beef demand, both here in the United States as well in the international markets.

Visit DrivingDemandForBeef.com for more information on the Beef Checkoff, Cattlemen’s Beef Board, Qualified State Beef Councils, and Beef Checkoff contractors.

On August 8, during the 79th Sturgis Motorcycle Rally, the South Dakota Beef Industry Council (SDBIC) hosted two separate events—one highlighting SDBIC’s consumer-focused beef promotion competition the “Sturgis® Beef Throw Down!” and the second educating beef producers on the importance of promoting beef in unique ways.

Earlier in the day at the Sturgis Motorcycle Rally, celebrity chef Justin Warner presented the award for the winning dish of the “Sturgis® Beef Throw Down!”, a competition among 10 participating restaurants throughout the Black Hills region. Each restaurant created a new beef dish that was judged by Warner and a producer panel. The winner was Chef Braun’s Steak Diane sandwich available at the Alpine Inn located in Hill City, SD.

Area producers gathered later that evening at the Mt. Rushmore Angus Ranch near Hermosa, South Dakota, to learn about the efforts the Beef Checkoff and SDBIC are making to drive beef demand. Greg Hanes, CEO of the Cattlemen’s Beef Board (CBB), was in attendance to share his vision for the Beef Checkoff and answer producer questions about the program and its initiatives. During the evening’s event Warner demonstrated the different ways he is cooking beef to widen its appeal to consumers.

“Both events today showcased the broad impact of the Beef Checkoff,” says Hanes. “Earlier in the day, we were able to see how the South Dakota Beef Industry Council is marketing beef to consumers. Tonight, we are able to come together, celebrate the success of many checkoff programs at the state and national levels and discuss how we can continue to drive demand for beef.”

The Beef Checkoff is a producer-driven program that relies on producer input in order to remain effective.

“Today’s events allowed us to showcase our efforts that are resonating positively with consumers in this state and give South Dakota producers the chance to have their voices heard,” says Suzanne Geppert, executive director SDBIC. “This positive engagement is important for the Beef Checkoff and the entire beef industry.”

From July 29th to 31st, cattlemen and women from across the country gathered at the Cattle Industry Summer Business Meeting to discuss current issues and develop programs and initiatives important to the beef industry. Contractors to the Beef Checkoff presented their 2020 authorization requests to their respective program committees, receiving valuable feedback that will help them further improve the Beef Checkoff’s positive impact. The Beef Promotion Operating Committee will review these authorization requests, and in September, the committee will make funding recommendations on Beef Checkoff investments and priorities for the 2020 fiscal year. The annual checkoff budget will then be approved by the Cattlemen’s Beef Board (CBB) and the U.S. Department of Agriculture (USDA).

Throughout the event, cattle producers attended various interactive sessions and meetings centered around Beef Checkoff efforts and other industry-related topics. A major highlight was an industry update from Randy Blach, CattleFax CEO. Producers heard him explore various factors, from herd expansion and export markets to swine fever ramifications and corn crop expectations, that will have a future impact on the U.S. cattle market.

Because the Summer Meeting’s primary focus centers on the Beef Checkoff’s future projects, beef producers and CBB members broke out into the five different committee sessions to hear from checkoff contractors about the efforts they are making to help drive beef demand. The program committees are Safety, Nutrition and Health, Innovation, Consumer Trust and Export Growth.

“By working as a team using this committee structure, we do our best to assure that we get the biggest bang for the buck for every producer dollar we receive,” says CBB member Jimmy Taylor from Cheyenne, Okla.

Some cattle producers voiced a concern over misinformation being shared from different industry groups that oppose the Beef Checkoff.

“The checkoff program is no stranger to criticism, and every question I had was answered openly,” says first-year CBB member, Bree DeNaeyer from Seneca, Neb. “I came away from the Summer Meeting feeling better armed to not just defend, but promote the Beef Checkoff.”

Being a CBB member provides producers with a unique opportunity to positively influence and help improve the Beef Checkoff. The checkoff is a complex program that requires producer input in order to remain successful.

“Before, I had no idea the Beef Checkoff did so many things to efficiently influence demand for beef,” Taylor adds. “As a producer, this makes me feel really good about how my checkoff dollars are being used, and I now realize how important the checkoff is to the success of the beef industry. As a result, I have become a much better advocate for the industry.”

Any and all beef producers can be nominated to be a member of CBB. If you are interested in serving on the board, begin the process today by speaking with your state beef council or certified nominating organizations. Members are appointed by the Secretary of Agriculture based on nominations submitted by these certified nominating organizations. Learn more here.

The Cattlemen’s Beef Board (CBB) has named Greg Hanes as its new CEO. Hanes comes to the CBB from the U.S. Meat Export Federation (USMEF), a subcontractor to the Beef Checkoff, where he was most recently the vice president of international marketing programs.

Q: Tell us a little bit about yourself and your background.

I was born and raised in Cheyenne, Wyoming, where cattle producers, with their solid work ethic and honesty, are simply part of the culture. My dad was a multigeneration Wyoming native, and my mom immigrated to the United States from Germany after World War II. Hearing stories from my mom, her siblings and my grandma about growing up in war-ravaged Germany and how they had to leave everything they owned behind in order to flee the Russian army had a powerful impact on me and my younger brother. Because of that, we always valued and appreciated everything we had.

After high school, I went to Colorado College (CC) in Colorado Springs and majored in economics. During my junior year, I studied abroad in Japan because it was “taking over the world” economically at the time. It was one of the greatest experiences of my life. Despite how different the culture, language, food and everything was, that experience showed me that at our core, people are people. After I graduated from CC, I spent a year back in Japan teaching English in public junior high schools with the Japan Education and Teaching Program.

After spending a bit more time in Japan and Asia, I enrolled in graduate school at the Thunderbird School of Global Management in Phoenix, Arizona and received a master’s degree in international management. I worked several jobs in Denver before joining USMEF in 1996. There, I worked with the international offices and helped to write the government funding proposal called the Unified Export Strategy document.

After four years with USMEF in Denver, my family had the opportunity to move back to Japan. At the time, we had two young kids – one was 3 years old and the other was only 9 months old. If we wanted them to learn the Japanese language and culture, now was the time, so we moved to Japan. I worked in telecommunications for five years and then, rejoined USMEF as the Japan director. After four years in that role, I transferred back to USMEF’s Denver headquarters where I have been the last 10 years – most recently as the vice president of international marketing programs.

Q: Why did you choose to make the jump from USMEF to the CBB?

Working for USMEF, I am well aware of the huge impact building international demand for beef has on bringing more value back to producers. At the same time, I have always been impressed by the excellent staff at the CBB and their dedication to the beef industry. When this opportunity arose, it seemed like the perfect way to leverage my deep appreciation and enthusiasm for the checkoff, beef producers, all the contractors and the CBB staff to help make the program even more successful going into the future.

Q: With your background at USMEF, you bring extensive knowledge of exports and international markets. How do you feel your experience with USMEF has prepared you to take the helm of the Beef Checkoff?

Working at USMEF has given me a deep understanding of the huge impact the checkoff can have on increasing the value of beef, both international and domestically. And, there are so many things the checkoff is doing to help build that demand.

I also had the opportunity to work with many of the state beef councils and other key partners and stakeholders in our industry. Not only has this allowed me to develop close relationships with many of those individuals and groups, but it has also given me insight into many of the issues the checkoff faces.

Q: The CBB is essential to ensuring the Beef Checkoff remains strong and thriving in the future. What do you feel the checkoff is doing well, and what does it need to work on in the months and years ahead? How do you foresee your role fitting into that mission?

There are so many things the checkoff is doing well; however, we need to ensure that producers around the country know exactly what these efforts are. The CBB has recently launched some new initiatives to facilitate producer communications, so I am excited to see how these efforts reach producers, what works and what doesn’t, and then adapt to continually make our outreach more effective.

Q: Lastly, what else would you like beef producers to know about you?

I want beef producers to know that I am 100 percent behind them. My sole focus is to ensure the checkoff is doing all it can to provide producers with the greatest returns and bring them the highest possible value they can get for each animal. Ranching and beef production has a long and storied history, and I want to make sure that history continues long into the future. Ranching is all about families, and I hope to see every ranch passed down to the next generation and the next.

I can honestly say inserting myself into a conversation is difficult from time to time. As a fifth-generation cattle rancher from Oklahoma, I don’t take credit for things I don’t earn. I don’t raise havoc when things get tough. And, I certainly don’t pat myself on the back when things go right. Being humble is a way of life for those of us in the agriculture industry, but sometimes, humility can be our biggest downfall.

The Beef Checkoff is one of the beef industry’s greatest achievements, yet few of us talk about the many ways it has benefited producers since its enactment in 1985. One of the biggest challenges facing the beef industry today is the fact that many producers don’t know what the checkoff is, what it does or how it benefits cattlemen and women every single day.

The only way to face this challenge is head on — by having the conversation. Beef farmers and ranchers need to start sharing successes, asking questions and voicing opinions about the Beef Checkoff. There is a new generation of young beef producers who are now responsible for their families’ operations, and they’ve never lived in a world without the checkoff. It is up to those producers who have lived both with and without the checkoff to educate them on why it’s a critical part of the beef industry.

So, how do we go about educating our fellow producers? There’s no one-size-fits-all solution. Younger ranchers may say social media is their preferred industry resource whereas producers like me who don’t have a Facebook or Twitter account, would probably rather have a face-to-face conversation or read a newspaper or magazine.

Regardless, the call to action is the same – beef producers need to communicate with each other – spreading the word about how the checkoff uses their dollar-per-head investments to advance the entire beef industry. We can’t shy away from engaging with those who may have opposing opinions but instead hear their arguments and share the true wins behind the checkoff.

For example, the Beef Checkoff is constantly identifying new and emerging market opportunities for beef in places like Asia to keep beef demand high. According to the U.S. Department of Agriculture and the U.S. Meat Export Federation, a contractor to the Beef Checkoff, U.S. beef exports reached over $8 billion in 2018. The U.S. is currently Japan’s largest beef supplier by value, and exports to Korea have jumped 43 percent in value since 2017². By opening market opportunities, the checkoff is ensuring consistent demand – so even when prices are down, sales can remain strong.

Furthermore, the Beef Checkoff is investing dollars to create new, innovative and convenient beef products that align with current consumer purchasing patterns. One such product is “Beefshi,” a new sushi-style concept using beef products like pastrami, roast beef and summer sausage, to be enjoyed as an appetizer or a full meal.

Those are just two of ways the checkoff is driving consumer demand. But that’s only part of the story. The Beef Checkoff is also dedicated to improving the industry as a whole – and that includes investing in producers. From the Beef Quality Assurance program and encouraging better management practices to the lifecycle assessment which showcases the real sustainability efforts that have decreased beef’s environmental footprint – the checkoff is engaged in every sector of the industry. We’re always looking for ways to help beef producers succeed.

Whether you’re at the sale barn, coffee shop, grocery store or even online, make sure your fellow beef producers know it’s your contribution that makes the beef industry great. It’s your superior product. It’s your time and effort. It’s your voice. It’s your dollar.

Survey says! The majority of beef producers are in favor of the Beef Checkoff program and have consistently supported it over time. In fact, according to a recent independent study, 80 percent say the checkoff drives demand for beef.

For more than 25 years, the checkoff has commissioned a third-party research firm to conduct an annual survey of beef and dairy producers nationwide to determine their awareness of the Beef Checkoff, as well as their sentiment and concerns about the program.

This year’s key survey findings include:

80 percent say the Beef Checkoff drives demand for beef
72 percent say they approve of the Beef Checkoff
68 percent say the Beef Checkoff leads to greater profitability in their own operation

In January 2019, Luce Research conducted the survey by calling the cell phone and landline numbers of 1,200 beef and dairy producers nationwide. These producers were randomly chosen from a master list of 150,000 U.S. producers. Using 2012 Agriculture Census statistics, the research firm weighted the survey data by age, geography and type of operation to be proportionate to the number of beef and dairy farms in that region – resulting in the adjusted sample size of 1,200 producers.

To participate, responding producers had to indicate they managed an operation that included cattle. For a sample of 1,200, the maximum statistical margin of error (95 percent confidence level) is ± 2.8 percent around any one reported result. For those producers who said they were aware of the checkoff, the maximum margin of error is ± 2.9 percent.

According to the survey results, producers conclude that the checkoff is making a difference in the beef industry, and they understand its positive, global impact. Investing in areas such as research, promotion and producer communications are ways the checkoff keeps the industry growing and beef on dinner tables around the world.

“We’re pleased to learn that producers continue to see the value of the checkoff and support its efforts,” said Brian Malaer, co-chair of the Cattlemen’s Beef Board Investor Relations Working Group. “With 80 percent of producers saying the checkoff help drives demand for beef, it’s clear that they see the return on their investment and feel the checkoff is a necessary part of the beef industry. As 2019 continues, we will keep communicating the checkoff’s many successes so even more producers can better understand how their dollars are advancing the demand for beef.”

The funding for the Producer Attitude Survey initiative sits under the Producer Communications Authorization Request and is overseen by the Investor Relations Working Group and commissioned by the Cattlemen’s Beef Board. The dollars come solely from the Beef Checkoff without input from contractors to ensure unbiased results. The checkoff will take the information gathered from this year’s survey and use it to develop authorization requests for the coming year.

“To ensure the Beef Checkoff‘s continued success, we must communicate the value it brings to the beef industry and the every-day beef producer,” Malaer said. “Their dollars support the industry. Their dollars make a difference. Their dollars are driving demand.”

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Luce Research is a multi-dimensional consumer and market research firm whose data-gathering technologies help organizations better understand their constituencies. Their expertise includes scientifically-driven consumer and market research, institutional insights, campaigns, large and small population polling, and custom-developed surveys.

Dan Hoffman, adjunct professor of market research at University of Denver, and contractor to Luce Research, explained why the annual survey is conducted via phone versus online polling.

“Online polling suffers from very low participation and can result in a skewed picture of the audience being surveyed,” said Hoffman. “These polls often garner emotional responses, not factual conversations. When looking at where and how the checkoff is viewed by producers, it is vitally important to use the most statistically weighted process to truly gauge these opinions.”

For more information about the Beef Checkoff and its programs, including promotion, research, foreign marketing, industry information, consumer information and safety, visit Beef Checkoff Program Areas.

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