Meeting Consumer Demand Archives - Page 5 of 10

Driving beef demand is the Beef Checkoff’s number one goal. The Checkoff works toward that goal by encouraging beef sales and consumption through a multitude of efforts, initiatives and programs, all executed by beef industry contractors and subcontractors. This past year, in a changing climate with persistent challenges, these innovative organizations shifted their plans quickly to ensure beef demand remained strong.

According to the Checkoff-funded 2020 Consumer Beef Tracker managed by the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, beef perceptions, beef consumption and beef sales are up – how did this happen in a global pandemic? In part, it’s because Beef Checkoff contractors and subcontractors were able to carefully consider the situation, determine alternate courses of action and promote beef in ways that made good sense in a world where travel, in-person gatherings and restaurant meals weren’t possible.

Here are some highlights and examples of how Beef Checkoff contractors and subcontractors maintained and grew consumer confidence in beef throughout the 2020 fiscal year.

American Farm Bureau Foundation for Agriculture (AFBFA): In 2020, AFBFA developed two beef production science-based courses to familiarize students with the beef industry. Both the fall institute and pilot program have been fully executed. Due to the coronavirus, AFBFA pivoted their plans from hosting 10 in-person professional development workshops in urban districts across the country to a virtual, live-streamed experience with two e-learning courses. More than 1,000 teachers from across the U.S. participated in the virtual courses. There was teacher representation from the top 10 largest urban school districts.

Cattlemen’s Beef Board (CBB): To help producers stay informed on how Beef Checkoff contractors’ messages have changed in light of the pandemic, along with other timely contractor news, the CBB added a new webpage, “Beef Checkoff Current Programming Updates,” on DrivingDemandForBeef.com. Also reaching new heights is this newsletter, The Drive, with more than 99,000 subscribers between its printed and e-newsletter editions.

Foundation for Meat and Poultry Research and Education (FMPRE): In 2020, FMPRE initiated five research studies on post-harvest beef safety and processed beef nutrition research agendas. Specific emphasis has been placed on reducing Salmonella and STEC contamination of beef products, as well as how processed beef products can fit into healthy diets identified in the Scientific Report of the 2020 Dietary Guidelines Advisory Committee.

Meat Importer’s Council of America and the Northeast Beef Promotion Initiative (MICA/NEBPI): As life drastically changed in the heavily populated Northeast region during the coronavirus’ peak, NEBPI took a multi-pronged approach to reach consumers with beef messaging. Through influencer relationships and practical beef preparation messaging on multiple digital platforms, NEBPI achieved nearly 680,000 impressions.

National Cattlemen’s Beef Association (NCBA): Protecting beef’s reputation and providing consumers with at-home cooking knowledge were two main strategies during the coronavirus pandemic. NCBA took existing resources and leveraged them to maintain consumer confidence in beef and boost beef consumption. One key tactic executed over the summer was the “United We Steak” campaign, aiming to connect producers and consumers in their shared love of beef. This will be the longest-running and most extensive campaign ever released by Checkoff-funded Beef. It’s What’s For Dinner. The campaign garnered more than 153 million impressions through paid advertising and social media alone.

National Livestock Producers Association and National Institute for Animal Agriculture (NLPA/NIAA): To help consumers understand that healthy animals produce healthy food, NLPA and the Kentucky Beef Council released a new video series Telling Your Antibiotic Story. These videos highlight producers and how they understand the need for careful antibiotic stewardship. Watch the videos at NLPA.org.

North American Meat Institute (NAMI): NAMI strives to boost demand in the veal industry. Through influencer relations and digital marketing tactics, veal product messaging reached more than 1.4 million. NAMI also released veal industry information videos to help consumers learn how veal is raised and engage advocates. These informational videos reached 10.6 million people.

U.S. Cattleman’s Association and Kansas State University (USCA/KSU): The Meat Demand Monitor Project works to understand consumer perceptions of beef and tracks beef demand strength and determinants. Insights show that taste, freshness, safety and price are regularly the most important factors for consumers. This program surveys more than 2,000 U.S. residents monthly.

U.S. Meat Export Federation (USMEF): USMEF is accustomed to change in the international marketplace. With the coronavirus situation varying from country to country, international team members adjusted messaging and tactics by country to continue emphasizing the integrity of U.S. beef. For example, in South Korea, 76 grocery stores participated in U.S. beef product samplings. Sales recordings of U.S. beef in Korea had already experienced an 18 percent sales increase from January through May.

The iconic Checkoff-funded brand, Beef. It’s What’s For Dinner. has evolved for a new generation of consumers.

When the Beef. It’s What’s For Dinner. brand launched in 1992, it was seen as a catalyst for pushing beef to the forefront of consumer advertising and into the center of the dinner plate. With funding from the Beef Checkoff, the National Cattlemen’s Beef Association (NCBA) established the original Beef. It’s What’s For Dinner. campaign through television and radio advertisements. These memorable ads featured celebrity voiceovers, along with Aaron Copland’s famous “Hoe-Down” music from the ballet Rodeo. Television audiences – including cattle producers and other consumers – could see the brand’s advertisements on mainstream programming with large audiences.

Now in 2020, producers may wonder, “Why don’t I see those beef ads on television anymore?” Beef. It’s What’s For Dinner. is still successfully promoting beef’s greatest strengths on multiple digital platforms, including TV. However, producers may not see these advertisements because they are not in the defined target audience. Producers already know about and love beef, but consumer groups need to be reached purposefully in order to communicate beef’s strong attributes. Checkoff dollars are being used to efficiently target an urban consumer audience through digital platforms.

A Digital Strategy

In 2014, with an increased focus on targeting the older millennial parent ages 25 to 34, Beef. It’s What’s For Dinner. went 100 percent digital to effectively and efficiently reach very specific consumer audiences. Consider how differently this audience consumes media now versus in 1992. Many families no longer have broadcast or cable television, instead choosing to watch video entertainment from online streaming services like Hulu and YouTube. They spend an average of 50 hours per week using social media, primarily on their smartphones ¹.

Cutting the cord on traditional broadcast television advertising made it possible for the brand to more closely and cost effectively target and measure its beef promotion efforts. Television ads are typically more expensive to run during mainstream programming. That makes it difficult to accurately measure who actually watched the ad, because during commercial breaks, many viewers fast-forward or leave the room. With digital targeting, Beef. It’s What’s For Dinner. knows who viewed the ad, on which platform and for how long.

This approach is similar to the way the brand currently delivers ads online and via social media and music streaming services. In 2017, Beef. It’s What’s For Dinner. introduced “Nicely done, beef.”, a campaign positioning beef as the top protein. Utilizing technology, the brand delivers messages like the “Nicely Done, beef.” advertisements on streaming services, Facebook, Instagram, Pandora radio and premium websites, such as FoodNetWork.com, to specific consumers who meet certain targeted demographics and live in urban and suburban areas.

While producers paying into the Checkoff are often beef-eaters by nature, they may not see these ads because they’re not in the target audience. Beef. It’s What’s For Dinner. is now reaching more consumers with fewer dollars, with the added ability to more accurately measure its influence.

Influencer Outreach

Along with an overarching, integrated digital strategy, NCBA is using innovative and engaging ways to communicate beef’s nutrition, ease of preparation, convenience and taste to consumers.

One way this is accomplished is by working with influencers – people to whom consumers look for advice and guidance. In the beef industry, influencers include health professionals, fitness professionals, credentialed nutrition experts and communicators, medical doctors, non-governmental organizations, academics and third-party scientists, culinary leaders, bloggers and other experts. These individuals spread positive messages about beef to their audiences and partake in live or virtual experiences that expose them to beef’s many benefits firsthand.

By leveraging the strong relationships between influencers and their audiences, the Beef Checkoff can positively affect attitudes and perceptions about how beef is raised, its health value and its role in a nutritious diet.

Utilizing New Tools for Food Delivery

Today, more consumers are purchasing groceries online than ever before, a fact that hasn’t gone unnoticed by the Checkoff. A series of Beef. It’s What’s For Dinner. ads were placed online on Instacart, the largest third-party grocery delivery service in North America, to measure what messages and content would best drive online beef sales through the Instacart platform. For example, some content focused on beef’s delicious taste while others focused on beef’s nutritional value. All Instacart tests have shown a significant increase in beef sales. After the test period, sales increased between 26 to 36 percent after consumers viewed a Beef. It’s What’s For Dinner. ad at point-of-online purchase ².

Beef. It’s What’s For Dinner. also partnered with Postmates, a prominent third-party restaurant delivery platform, to determine which common beef-related keywords – beef, burger, steak and BBQ – would drive the strongest beef meal purchases. Almost 10 percent of customers purchased burgers during the week that keyword was promoted. Sponsoring the “burger” keyword with a Beef. It’s What’s For Dinner. logo led to a two percent increase in purchases, and “burgers” also drove the highest number of new customers ³.

These efforts, along with multiple other campaigns, contributed to the Beef. It’s What’s For Dinner. brand reaching consumers a staggering one billion times in 2019 ⁴. When consumers are aware of the Beef. It’s What’s For Dinner. brand, they’re more likely to eat beef more often and feel good about it.

A Proven Approach

Through an effective, research-driven digital approach, Beef. It’s What’s For Dinner. is helping increase per capita beef consumption. Consumers are eating beef more frequently than ever before, with 96 percent of consumers eating beef and more than 70 percent of consumers saying they are consuming beef at least weekly or more ⁵.

The Beef. It’s What’s For Dinner. brand is only one promotional effort funded by the Beef Checkoff. Multiple other initiatives are being executed by Checkoff contractors to push beef as consumer’s protein of choice. By implementing cohesive campaigns that include digital advertising, social media and influencer relations, the Beef Checkoff is reaching a targeted group of consumers and reminding them that beef is a wholesome and nutritious product. As consumer trends continue to evolve, the Beef Checkoff will continue to find new ways to actively promote beef as the protein of choice.

With warm weather comes the traditional backyard barbecues; families are grilling burgers, steaks and more. Research conducted by the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, shows one-third of consumers are planning to grill more this summer than they have in the past. This points to a prime opportunity to remind consumers that beef is the protein of choice for summer grilling ⁶.

The Checkoff-funded Beef. It’s What’s for Dinner. brand, managed by NCBA, is kicking off summer grilling season with a campaign aimed at connecting producers and consumers in their love of beef. This multi-pronged campaign encourages consumers to cook beef on the grill and serve up beef recipes all summer long.

To launch the campaign, a new video was released featuring beef farmers and ranchers from around the country working hard to provide consumers with nutritious beef. This video reminds consumers that this summer, grilling season is brought to them by beef farmers and ranchers.

Beef. It’s What’s For Dinner. also declared May 28 as National Beef Burger Day. Recipes and images demonstrating how to build and cook the perfect burger were shared on Beef. It’s What’s for Dinner. social channels. Nationally-known bloggers also shared beef burger content on their blogs and social media platforms, while segments on Good Morning America’s website and Celebrity Page TV showcased how to grill the perfect beef burger.

To further encourage consumers and producers to unite in their shared love of beef, Beef. It’s What’s For Dinner. released “United We Steak” as the centerpiece of the summer grilling season campaign. While challenging circumstances and uncertainty continue across the U.S., beef on the grill can unite everyone and connect consumers to the producers who raise their food.

“United We Steak” has been delivered to consumers through a series of integrated digital content running on social media platforms, as well as through streaming TV services and YouTube advertising. A new series of radio ads was released and shared nationally as well as locally through state beef councils. These advertising efforts drove consumers to a special website, where they could find an interactive map profile page, complete with state-themed beef recipes, a “meet your state beef producer” section and other fun and informative facts about the state.

Running from May to Labor Day, this new campaign promises to be the most extensive and longest running Beef. It’s What’s For Dinner. campaign. This is just one of the programs the Beef Checkoff will execute over the summer to inspire consumers to unite around the grill.

The main selling points for meat substitutes — which revolve around the environment, nutrition and animal welfare — may attract a certain type of consumer. It’s important to consider, however, that in spite of people trying these substitutes, beef is still a leading protein with consumers, and sales remain strong.

One reason beef remains so popular is because it can be divided into whole muscle cuts, like steaks and roasts. Currently, meat substitute companies can only create a ground-meat product, and they do not have the ability to culture fat cells — which contribute to the aroma and flavor of foods like steak. Data from the Department of Agriculture indicates that the average person’s meat consumption has risen each year since 2015 to about 220 pounds annually in 2018. Consumers are eating beef because it has an irreplaceable taste and texture. Overall, meat substitutes only represent a fraction of pounds sold, registering at 0.1 percent share in 2018, while ground beef represented 50 percent ⁷.

In an effort to compare beef with the substitutes, the Beef Checkoff has done a side-by-side assessment of each product’s ingredients. “You look at the ingredients on meat substitute products and it’s a list with up to 22 different ingredients,” says Greg Hanes, CEO of the Cattlemen’s Beef Board. “And here’s the ingredient list for beef: beef. You have one ingredient.”

A recent study gauging consumer acceptance of meat substitutes surveyed nearly 32,000 Americans and only 27 percent of those surveyed believe the substitutes are healthy and eco-friendly ⁸. Still, more restaurants and stores are offering meat substitutes on their menus and shelves.

The Beef Checkoff is actively working to ensure beef remains at the consumer forefront by dispelling misconceptions about the supposed health benefits of meat substitutes. The iconic Beef. It’s What’s for Dinner. brand, funded by the Beef Checkoff, has reached consumers more than one billion times since relaunching two years ago. And, the brand’s informative digital marketing campaigns are as effective as they are drool-worthy.

The checkoff’s “Nicely Done, beef.” campaign highlights beef’s greatest assets including its great taste, nutrient content, benefits over meat substitutes and the dedicated producers who raise beef. Delivered through a consistent theme, a few messages from the campaign include, “Nicely done, beef. You prove that meat substitutes are just that. Substitutes.” And, “Nicely done, beef. You build strong muscles. No protein shake required.”

Here are a few other examples of how the Checkoff shares beef’s story with the consumer:

The Right Way: This campaign introduces consumers to the Beef Quality Assurance program, a Beef Checkoff-funded, voluntary program ensuring the safe, high-quality production of U.S. beef within stringent animal care standards.
Chuck Knows Beef: Powered by Google Artificial Intelligence, Chuck can serve up recipes and answer a variety of beef-related questions from nutrition, cutting and cooking information to how beef is raised. Chuck can be accessed at ChuckKnowsBeef.com, through Amazon Alexa, or on Google Home smart devices.

At the end of the day, consumers still favor beef, and beef has certainly earned its spot at the dinner table. The Beef Checkoff and its continued consumer marketing efforts are working to make sure it stays there.

We’ve never seen anything like this current beef situation; actually, in our lifetimes, we have never seen an economic situation like this that’s affected every industry, including ours. All aspects of the economy are reeling, and yet beef producers continue to be a strong, resilient breed who weather what life throws at them. Still, in the current environment, it is easy to get frustrated, to want to point fingers and lay blame, or to just be downright angry at the situation itself. We understand that.

With frustration often comes misunderstanding. There has been more and more misinformation floating around about the Beef Checkoff in recent weeks as producers seek answers to questions about the state of our industry. But remember, while the Beef Checkoff does so many great things, it can’t do everything. It is important to remember that we are built on a law that squarely focuses our programs on beef promotion, research, and education to drive consumer demand. No lobbying. No stance on possible political actions or laws. No backroom dealings. Nothing to hide.

We want to have transparent, open, and honest conversations about the way we operate. We welcome questions, and we have heard our share of those in recent weeks. We’re always working to find ways to clearly communicate with producers about the Beef Checkoff’s mission and programs – including where your dollars are spent – with information that is both transparent and simple to find. Here’s some key information about the Beef Checkoff and the Cattlemen’s Beef Board that may help you better understand how our programs work.

Answers to the Five Most Frequently Asked Questions about the Beef Checkoff:

1. Who sits on the Cattlemen’s Beef Board?

The Beef Checkoff was first organized and built by fellow producers, and the law reflects their desire to have a program led by cattlemen and women from around the country. The Cattlemen’s Beef Board consists of 99 board members, appointed by the Secretary of Agriculture, representing nearly every state in the country. By law, both producers and importers pay into the checkoff, and are therefore represented on the board. The number of board members from each state is determined by the cattle population there, and importers are represented by a cattle equivalent of the beef imported. Currently the CBB has 92 beef producers (cow/calf, feeders, stockers, veal, and dairy) and 7 importers. There are no packer representatives on the CBB. Our CBB officer team is elected annually by their peers, and they are producers from all over the country. Meet our current CBB members

2. How do Beef Checkoff funds get distributed?

By law, only beef industry governed organizations who have been in existence for more than two years may apply for Beef Checkoff funding. We call these organizations “checkoff contractors”, and they must “apply” for checkoff funds annually through proposals called Authorization Requests. These requests are vetted through large, producer-led committees throughout the year. The Beef Promotion Operating Committee, a 20-member producer body, ultimately makes the funding decisions for contractors every September for the following fiscal year. Again, no checkoff dollars can be used for lobbying or influencing politics. Contractors to the Beef Checkoff are reimbursed for their work on a cost-recovery basis after a full review of their expenses through the internal financial controls at the Cattlemen’s Beef Board. This is watched VERY carefully. Learn more about our checkoff contractors and their requests.

3. What specific projects are currently being funded with Beef Checkoff dollars?

We understand producers want to know specifics about the programs and projects being funded with their checkoff dollars. We created The Drive, an email, print and online information source for producers about every aspect of the checkoff. Sign up for your complimentary subscription to The Drive. In addition, follow the Beef Checkoff on Facebook and Twitter, where we share timely updates, too.

4. Where can I find the annual audited financials of the Cattlemen’s Beef Board

We are required by law to provide our annual audited financials to the public. To reach as many producers as possible, these documents live on the Cattlemen’s Beef Board website. It is important to note that every fall, an independent, outside auditing firm thoroughly reviews all financials of the CBB / Beef Checkoff. The contract for this firm is renewed each year, voted on by producers on the Budget and Audit Committee. Read the annual audited financials.

5. How can a producer get involved with the Cattlemen’s Beef Board?

Please join us! The Cattlemen’s Beef Board meetings are open to every producer and we encourage your participation. While some meetings are the full 99-member board, others are smaller committees and groups. Find specific information on upcoming in-person and teleconference meetings.

While we continue to promote beef to consumers, we are also here to provide transparent information to you, our stakeholders. We invite you to visit DrivingDemandForBeef.com to find all the information listed in this column, plus frequently asked questions, member directories, annual reports, contractor information, and so much more. If you cannot find the answers to your questions there, give us a call or send us an email. We are a program built from producers, and we remain dedicated to providing transparent, open, and honest communication with you.

The conversation around plant-based, alternative proteins and meat substitutes remains top of mind for those active within the beef industry. While some people may believe that meat substitutes are gaining traction in the protein marketplace, data shows consumers are choosing beef over these substitutes and are overall confused about the ingredient composition and alleged benefits from meat substitutes.

In September of 2019, the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff, conducted an online survey to over 1,800 respondents to better understand consumers knowledge of meat substitutes. 44 percent of respondents believed the substitutes were lower in sodium, when the leading meat substitute brands are anywhere between 220 percent to 620 percent higher in sodium than the same size serving of real ground beef. And, 34 percent of respondents believed the substitutes to be less processed than real beef. ⁹ Meat substitutes are processed and some products contain up to 22 separate ingredients.

This data shows that as an industry there is immense room to grow in educating consumers on beef’s role in a healthy lifestyle. Although there is media buzz around meat substitutes they’re essentially a niche market with a small share of dedicated consumers who fully understand what the product is. Amongst consumers confusion about meat substitutes, beef remains a reliable and authentic source of protein. Sales data revealed 14 billion pounds of beef were sold compared to 700,000 pounds of beef substitutes at retail and foodservice locations. At the end of the day, beef substitutes only comprised half of a percent of the overall market in pounds.¹⁰

Because current chatter in the media is all about plant-based, meat substitutes, it is important to keep it in perspective and recognize beef’s excellent performance with consumers. Overall, 2018 retail beef demand showed a 15 percent increase over 2012 figures. While demand factors are very complex, the concept of demand is simple: beef demand relies on sentiment – the trust and loyalty one has for a product. “Driving demand” is the cumulative effort that goes into getting a consumer to think of beef first – positioning beef in the forefront of their minds when they enter a grocery store or restaurant. The Beef Checkoff is building consumer confidence in beef in order to drive overall demand.

How is this happening? By producing safer, higher-quality beef. The Beef Demand Index showed consumers are loving high-quality, USDA-Choice-graded beef products. In fact, today, approximately 80 percent of U.S. beef grades USDA Choice or higher, a 38 percent increase since 2004.

The Beef Checkoff is echoing producers’ dedication to quality in various ways. The latest effort is a full-fledged campaign educating consumers about the checkoff-funded Beef Quality Assurance (BQA) program. Preliminary research showed that simply introducing consumers to the concept of BQA increased their confidence in the safety of beef by 70 percent. It also increased their confidence that animals are treated humanely by 67 percent, and it helped them understand that BQA is an industry-wide effort.¹¹

Another reason consumers gravitate toward beef over meat substitutes is because of something we all know – beef tastes great! “Taste” is the top reason consumers cite when they say they’re planning to eat more beef.¹² The checkoff-funded Beef. It’s What’s For Dinner. brand is constantly showcasing new and exciting ways to incorporate beef into meals with recipes and nutritional facts found in digital ads online and in grocery stores across the country.

The Beef Checkoff also dedicates resources to consumer-tracking research in an effort to help identify which proteins consumers are gravitating toward when purchasing food. These metrics help the beef industry identify new market opportunities such as meal kits. According to the 2018 Power of Meat Study, shoppers continue to look for ways to include convenience-focused solutions in their meal plans. ¹³ Recognizing this niche market opportunity, the Beef Checkoff worked with the American Foods Group to develop a steak-bowl meal kit that contains UDSA Choice beef.

Consumer interests are constantly changing, and to remain successful, the beef industry must respond accordingly. The Beef Checkoff is steadfastly committed to actively participating in conversations about meat substitutes, and it will do so by promoting beef and educating consumers about beef’s unparalleled qualities at every opportunity. At the end of the day, it’s all about driving demand for beef.

Cattle producers Jared Brackett, Hugh Sanburg and Norman Voyles, Jr. are the new leaders of the Cattlemen’s Beef Promotion & Research Board (CBB). Elected by their fellow CBB members during the Cattle Industry Convention in San Antonio on February 7, 2020, this officer team is responsible for guiding the national Beef Checkoff throughout 2020.

Brackett, the 2019 Vice Chair, will now serve as the CBB’s Chair, while Sanburg will transition from his role as the 2019 Secretary-Treasurer to become the 2020 Vice Chair. Voyles is the newest member of the officer team, taking on Sanburg’s former responsibilities as Secretary – Treasurer.

2020 Chairman Jared Brackett is a fifth-generation cow/calf producer from Filer, Idaho. Brackett is a Texas A & M alumni and diehard Aggie fan with a degree in agriculture economics. A past president of the Idaho Cattlemen’s Association, Brackett continues to serve on a number of other livestock committees and boards in addition to his responsibilities with the Beef Checkoff.

“The beef industry has been a part of my family’s livelihood for decades,” Brackett said. “While there’s no doubt that our industry has its own unique set of challenges, I believe that by working together, we can enact positive change that will continue to drive beef demand worldwide. During my tenure as the CBB’s Chair, I plan to collaborate with our officer team and the entire board to encourage checkoff advocacy and find new ways to move our industry forward.”

Vice Chair Hugh Sanburg hails from Eckert, Colo., where he and his brother are managing partners of their primarily horned Hereford cow-calf operation, accompanied by a Registered Hereford operation to complement the commercial herd. Sanburg graduated from Colorado School of Mines with a degree in mining engineering in 1983 before moving back to the home ranch in western Colorado. For the past 30-plus years, Sanburg has been an active member of the Colorado Farm Bureau serving on various boards. He is also a member of the Colorado Cattlemen’s Association and serves as chairman of the Gunnison Basin Roundtable.

Secretary-Treasurer Norman Voyles, Jr. owns and operates a seventh-generation grain and livestock farm near Martinsville, Ind. with his brother Jim and son Kyle. Voyles received a bachelor’s degree in animal science from Purdue University and a master’s degree in ruminant nutrition from the University of Nebraska. Voyles is a member of the Morgan County (Ind.) Beef Cattle Association and the Indiana Cattlemen’s Association. He’s a past member of the Farm Service Agency board of directors and the Morgan County Fair board.

“We’re extremely fortunate to have such a dedicated and experienced group leading the CBB throughout the coming year,” said Greg Hanes, CEO of the Cattlemen’s Beef Board. “Not only are they cattle producers themselves, but they’ve also worked diligently on the beef industry’s behalf for many years. Jared, Hugh and Norman are fully aware of the challenges producers currently face, and they have what it takes to answer those challenges while also finding new opportunities. I have no doubt their leadership will help the Beef Checkoff achieve great success in 2020.”

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 2018¹⁴ 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.

Antibiotic resistance occurs when bacteria develops the ability to survive exposure to antibiotics, making it difficult or impossible to treat infections in people or animals. It is a growing concern amongst society today, with many fearing a “post-antibiotic era” where common infections become life threatening. Locations that frequently use antibiotics like hospitals, long-term care facilities, feedlots and crop production areas have been criticized for the overuse of antibiotics, resulting in less-effective treatments. However, even with this skepticism, it is unknown how much each location contributes to antibiotic-resistant bacteria. ¹⁵

Antibiotics play a critical role in the beef industry, safeguarding health and promoting high-quality beef. The beef industry has taken measures to practice the judicious use of antibiotics to dramatically decrease the potential risk of developing antibiotic-resistant bacteria. The Food and Drug Administration (FDA) reported domestic sales and distribution of medically important antibiotics for use in livestock has decreased 43 percent since 2015. ¹⁶

The checkoff-funded National Beef Quality Assurance (BQA) program now contains producer guidelines for antibiotic use, which were developed by cattle producers in collaboration with animal health experts. From administration practices to record keeping, these are tactics the beef industry is showcasing every day in order to produce the high-quality beef consumers depend on.

In 2016, the Beef Checkoff funded research into antibiotic resistance, which continues to be the largest study published to date examining the ecology of antimicrobial resistance (AMR) in the beef production system, using shotgun metagenomics, a way to sequence thousands of organisms in parallel. This unique study followed the same groups of cattle from feedlot entry through the harvest process to market-ready beef products. The purpose of the study was to help identify if at certain times in the supply process more resistance genes were prevalent. This is the first study of its kind, and the checkoff will continue to be involved in this important industry issue.

In order to continue to stay up to date on the use of antibiotics in food animals, the Beef Checkoff helped sponsor the 9th Annual Antibiotic Symposium. The event was held in Ames, Iowa on October 15-17th. The symposium discussed scientific updates on antimicrobial resistance, how research technology and innovation continue to impact that growing knowledge and how to better communicate to consumers the importance of antibiotic use for livestock health.