Meeting Consumer Demand Archives - Page 6 of 10

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.”

The food purchasing habits of city dwellers are often very different than those of people who live in more rural environments. For those who live “out in the country,” meals are often viewed as an opportunity to share the day’s happenings with their families. In cities – home to many on-the-go millennials who often live with roommates – cooking for one is a challenge. Restaurants and food trucks are on every corner, residential kitchens are smaller, storage is minimal, and at-home meals are few and far between.

The 2018 Power of Meat Study found that shoppers continue to look for ways to include convenience-focused solutions in their meal lineups.¹ Millennial urbanites are the demographic behind this shift in shopping priorities, favoring quick, easy and nutrition meals. The beef industry is aware of this cultural shift—and that’s where meal kits enter the picture.

Meal kits range from at-home, subscription delivery services to take-home options consumers can pick up in a grocery store. The Beef Checkoff is recognizing this niche market and driving beef into more than half the meal kits available at supermarkets.² In 2018, the Beef Checkoff’s Beef. It’s What’s For Dinner. brand launched fresh-beef meal kits in retail grocery stores across the country. Developed by the American Foods Group, the steak-bowl meal kits contain raw, USDA Choice beef packaged with all the ingredients needed to make different meal options. These grocery-store meal kits give consumers the convenience they want without the hassle of committing to a subscription.

Beef is the most valuable product at retail, according to the new custom Fresh Meat Market Basket Analysis.³ This study, commissioned by the Beef Checkoff, shows that beef shoppers generate more sales across the entire store. The average shopping cart containing beef is worth more than twice that of a cart without beef at the register, ringing up at $85.70 vs. $41.33 respectively. The power to drive additional food sales is one more reason beef remains a favorite item for both retailers and shoppers.⁴

The Beef Checkoff invests in studies like this to understand purchasing patterns and consumer interests. Furthermore, when beef is able to clearly show its retail advantages, it solidifies its presence within stores, encouraging greater availability for consumers.

While grocery-store meal kits present the beef industry with a tremendous opportunity, so do at-home-delivery meal kits. Companies specializing in these kits, like HelloFresh™ and Blue Apron™, ship boxes of refrigerated ingredients containing two to four recipes each. These kits are delivered at different intervals depending on the customer’s chosen meal plan. Within each box are all the ingredients and recipes needed to make delicious food right at home. Because consumers typically preselect the meals they wish to have delivered, these services can eliminate the more impulsive “shopping experience.” That means it’s even more essential to get beef into these meal kits during the product development process.

And, that’s exactly what the Beef Checkoff is doing. The checkoff has worked with dietitians at HelloFresh to demonstrate not only the benefits of including beef in a healthy lifestyle, but also the dedication cattle farmers and ranchers have toward raising high-quality beef. The Beef Checkoff hosted a group from HelloFresh’s corporate office for a full day of beef immersion complete with a farm tour and lessons on cattle feeding, reproduction, selection and herd health. The group also experienced an in-depth beef-cutting demonstration to help inspire them to include a wider variety of beef cuts within their consumer meal kits. By building a bridge between the farm and the finished product, the Beef Checkoff was able to help foster trust and increase positive sentiment about beef consumption.

Consumers must view beef as a favorable product for the beef industry to continue to thrive. There’s no doubt that cooking dinner looks very different today than in the past. The Beef Checkoff is investing resources toward research and promotion to continue increasing positive perception about beef while driving demand and enhancing availability at every turn.

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 Beef Promotion Operating Committee (BPOC) is one of the most influential and impactful producer-led committees in the beef industry, making major funding decisions on Beef Checkoff investments and priorities.

When the Beef Promotion and Research Act was first passed as part of the 1985 Farm Bill, many state beef councils were already working together and conducting checkoff-funded programs through the Beef Industry Council. The Act recognized this state effort, and by law allowed for half of the dollar to remain in the state to fund state programs and promotion. Then, to guarantee state and national programs were coordinated, the Act created the BPOC to ensure funding decisions about checkoff programs as well as decisions regarding which organizations to contract with and carry out the program.

The BPOC develops the annual checkoff budget, which is then approved by the Cattlemen’s Beef Board (CBB) and the U.S. Department of Agriculture. Programs and projects must remain in the areas of promotion, research, consumer information, industry information, foreign marketing, producer communications and must drive beef demand.

The Operating Committee has a unique makeup, with 20 members total from two different entities: 10 members are elected by the CBB, while the remaining 10 are selected by the states through the Federation of State Beef Councils. No checkoff program or project is approved unless two-thirds of Operating Committee members vote to accept it. This means that a program must have recognized value in order to earn the consensus needed to be successfully funded. By formulating a committee that reflects both national and state priorities, the Beef Checkoff is better equipped to spend dollars more effectively and efficiently.

Every August, members of the CBB and Federation of State Beef Councils gather at the industry’s annual Summer Business Meeting to review funding proposals from various checkoff contractors and make recommendations based on industry and producer needs. The BPOC then convenes in September to establish the final funding recommendations for the upcoming fiscal year.

Recently, Burger King, the second-largest burger chain in the U.S., announced it would begin serving another version of the iconic Whopper using an all-vegetarian patty. Burger King’s adoption of this plant-based, alternative patty is a big move in the primarily beef-focused foodservice arena, providing consumers greater access to alternative proteins. What does this mean for the beef industry?

Well, Americans love beef, especially burgers. It’s a fact. Americans consume roughly 50 billion burgers a year, with the average American eating three hamburgers a week⁵. There is even a national day dedicated to the love of the hamburger. National Burger Day, a day of appreciation for hamburgers, fell on May 28th this year. In 2018, ground beef accounted for 40 percent of dollar sales and half of last year’s pound sales⁶. All of these facts confirm that beef is what consumers continue to love, buy and eat.

Still, more and more restaurants and stores are offering plant-based alternative proteins to give their consumers greater variety on their menus and their shelves. Many restaurants and food service businesses that have latched onto this trend. While the trend is still growing, it is important to note that meat alternatives only represent a fraction of pounds sold, registering at 0.1 percent share in 2018⁷.

The main selling points for companies producing plant-based, alternative proteins revolve around the environment, nutrition and animal welfare. They contend plant-based proteins require fewer natural resources, including water and land, and emit fewer greenhouse gases when compared to the beef production system. Another view is based upon the common misconception that red meat is bad for the human diet. Lastly, these companies use emotional tactics to tell consumers that, by opting to eat plant-based proteins, they can keep animals from being slaughtered and consumed.

These selling points may attract a certain type of consumer. However, the Beef Checkoff has taken significant measures to bring beef to the consumer forefront and position it as one of the world’s most desirable proteins.

When it comes to sustainable production processes, the beef industry has moved forward in leaps and bounds. Producers are constantly looking for new ways to produce more beef with fewer resources. In fact, today, U.S. beef farmers and ranchers are able to produce the same amount of beef with one-third fewer cattle than they did in 1977⁸. The checkoff-funded lifecycle assessment gives consumers and the industry a clear picture as to what beef sustainability looks like today.

When it comes to health, the Beef Checkoff works with dietitians and physicians regularly to educate them on the health benefits of including beef in an everyday diet. The checkoff-funded Beef. It’s What’s For Dinner. brand serves as the consumer-facing resource dedicated to educating individuals through webinars, seminars, fact sheets, cooking lessons, nutrition research and more on the ways lean beef contributes to a healthy lifestyle. Research shows that consumers consider beef one of the best sources of protein⁹.

Ironically, meat eaters are the target audience for many of the companies promoting plant-based, alternative proteins. Their campaigns have centered around their products’ amazing similarity, texture and taste compared to beef. On April Fools’ Day, Burger King “fooled” some beef-loving restaurant goers into thinking they were eating the Whopper’s original beef patty when they were actually eating the newly introduced plant-based patty instead. The reaction was overwhelming, with many saying they couldn’t believe how alike the two options tasted.

“Beef has one ingredient—beef. While plant-based alternatives, consisting of dozens of ingredients, have demonstrated similarities to beef, it’s important that consumers understand exactly what they’re eating and where it came from,” states Janna Stubbs, Cattlemen’s Beef Board member from Alpine, Texas. “The beef industry has worked hard to be transparent and give consumers the high-quality beef they seek and trust to feed their families.”

The Beef Checkoff has dedicated valuable resources toward consumer and market research to determine how consumers think about beef and alternative proteins, as well as where they are spending their protein dollars. In 2019, annual projected beef consumption is more than 58 pounds per capita versus beef substitutes measuring in at a few ounces per capita¹⁰. Furthermore, the U.S. Retail Beef Demand Index has increased by almost 15 percent since 2012. This increase in demand is being driven by consumer beef expenditures, which reached an all-time high in 2018 of more than $105 billion¹¹.

Consumer marketing is also a big priority. For consumers to continue buying beef, the Beef Checkoff must invest in initiatives that increase beef’s visibility and appeal. The Beef. It’s What’s For Dinner. brand has created a series of social media ads that clearly position beef as one of the top proteins and address meat alternatives head on.

The Beef Checkoff also targets consumers who are actively searching for information on topics like beef sustainability—effectively disputing the claims made by companies producing plant-based alternatives—and driving them toward the Beef. It’s What’s For Dinner. website for accurate information.

The Beef Checkoff works to leverage resources in the most impactful areas so producers can be confident that consumers are purchasing their superior products. Listening to consumers and adapting to their purchasing decisions are key to the beef industry’s success. Much is still on the horizon when it comes to alternative proteins, but the Beef Checkoff will continue to identify ways to position beef as the number one protein choice amongst consumers and drive demand for beef.

At the beginning of 2019, CattleFax CEO Randy Blach noted that calves would have been worth $50 per cwt less and fed cattle $20 less if the industry had failed to meet consumer beef demand. Over the last 20 years, beef producers have answered the call for higher-quality beef, directly impacting demand, and therefore, beef prices and consumption.¹²

Consumer demand is perhaps the most important driver of the beef industry. Growing demand and responding to consumer trends are key to maintaining beef as a superior protein choice. The sole purpose of the Beef Checkoff is to do just that—help build beef demand. To do this, the Beef Checkoff continually funds research and tracks consumer trends to ensure producers have the full picture of how beef is performing at retail and foodservice establishments worldwide.

Defining “demand” and how it affects beef values

While the factors that go into demand are very complex, the concept of demand is simple: beef demand relies on sentiment, or the trust and loyalty one has for a product. Driving demand is the effort that goes into getting a consumer to think of beef first—positioning beef in the forefront of their minds when they enter the grocery store. The Beef Checkoff is building consumer confidence in order to drive demand.

The beef industry has many layers and sectors that work together. It includes various dynamics and complex markets that contribute to overall demand. According to Dr. Derrell Peel of Oklahoma State University, “The complexity increases when one realizes that beef demand is not a single market, but it is the net effect of the disassembly of beef carcasses into many products entering different, but often related markets.” ¹³ For beef producers, cattle prices are of the utmost importance and are a result of the total value that consumers place on beef products. In other words, consumer demand determines beef carcass values, as well as prices for fed cattle, feeder cattle and calves.

Demand vs. consumption

Dr. Peel notes that the beef industry, “is one of, if not the most complex set of markets on the planet.”¹³ When consumers believe in beef, it pushes the market. There are many influences behind beef demand, the most significant of which are population, income, taste and preferences, expectations and the prices of other goods. Demand can sometimes be confused with consumption. If demand is the sentiment toward beef, then consumption is the sales data – how much they are actually purchasing and eating. Consumption doesn’t take into account what leads to the purchasing decision or the price-vs-value relationship. Consumers must view beef as a favorable product in order for it to be competitive in the marketplace. ¹⁴

In 2018, cattle producers saw a large increase in consumer beef demand, particularly in the retail sector. According to the U.S. Retail Beef Demand Index, 2018 retail beef demand was 15 percent higher than in January 2012. Furthermore, the Beef Demand Index shows consumers are loving high-quality, USDA-Choice-graded beef products. In fact, approximately 80 percent of U.S. beef grades USDA Choice or higher today, compared to 50 percent in 2000.¹²

How the Beef Checkoff builds demand

Producing high-quality beef has led to greater consumer confidence, which is essential to continue building that demand. The Beef Checkoff echoes producers’ dedication to quality by promoting this at every turn and researching how consumers are responding to beef products in the marketplace. The Beef. It’s What’s For Dinner. brand showcases beef’s superior taste, nutrition and quality benefits in ads placed around the country. A $5 million consumer advertising budget allows the Beef. It’s What’s For Dinner. brand to reach more consumers than ever before, particularly online.

Online marketing is critical today because consumers are spending the majority of their time using digital resources. The National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, directs consumers to the BeefItsWhatsForDinner.com website whenever an individual searches for information about beef. This ensures consumers are obtaining the most accurate information about beef in their diets. Since October 2017, the website has had more than 15 million visits.

While beef prices are a top concern, the Beef Checkoff works to ensure consumers continue to feel confident purchasing beef. Over the past two decades, the beef industry has seen a direct correlation between industry success and consumer trends. The Beef Checkoff remains dedicated to growing overall beef demand through all avenues by promoting and educating consumers on the benefits of eating beef.

When they go out for breakfast, lunch or dinner, more consumers are choosing beef. Currently, 97 percent of restaurants report offering beef dishes¹⁵, which has been shown to increase restaurant traffic by 45 percent¹⁶. This data directly correlates to many Beef Checkoff efforts dedicated toward monitoring market trends and consumer interests and responding accordingly.

Overall, beef demand is up 15 percent since 2012¹⁷. The U.S. Department of Agriculture (USDA) is predicting strong consumer demand to continue through 2019, with U.S. consumers anticipated to consume nearly 9 percent more beef this year than in 2015¹⁸.

The National Cattlemen’s Beef Association (NCBA), contractor to the Beef Checkoff, oversees the iconic Beef. It’s What’s For Dinner. brand—a platform that not only promotes beef, but also monitors market trends and obtains consumer insights. By investing dollars in crucial market research, the checkoff is driving beef demand. To better understand foodservice-beef trends, completes an annual foodservice volumetric study through its iconic Beef. It’s What’s For Dinner. brand. This study measures operator purchases and distributor sales of beef and other proteins across all foodservice operator segments. Beef is the most prominent ingredient at these establishments, accounting for 16 percent of total foodservice food and non-alcohol purchases¹⁹.

For the beef industry to remain successful, it must recognize what consumers want. They hold the purchasing power; therefore, it is essential the beef industry responds to their requests and decision-making patterns. The NCBA monitors and measures consumer attitudes on a monthly basis. The Beef. It’s What’s For Dinner. brand has had an extremely positive impact on consumers’ perception of beef. According to the checkoff-funded Consumer Beef Tracker, people are more likely to feel positive about beef and more likely to eat beef more often when they are aware of the Beef. It’s What’s For Dinner. brand.

Consumers trust producers to deliver a superior beef product. Over the last decade, cattle producers have responded to trends calling for higher-quality beef, delivering more USDA prime- and choice-graded beef products. The choice/prime percentage moved from 55 percent in 2007 to 79 percent in 2018 and is projected to reach 80 percent this year.

With the checkoff gaining insight and data into market trends and consumer interests, the beef industry is better equipped to meet purchasing trends. Beef Checkoff research is identifying market opportunities and utilizing dollars to promote beef within different segments of the foodservice and retail chain.

Consumers want beef. From burgers to high-end steaks, restaurant owners recognize the economic incentive of offering beef on their menus. Producer-invested-checkoff dollars are arming the beef industry with insider knowledge so beef can continue to reign.

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 2017²⁰. 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.

This May, 2019, urban educators from around the nation traveled to Kansas and New York where they learned the principles of STEM (Science, Technology, Engineering, and Math) through the “On The Farm” experience.

Pioneered by the American Farm Bureau Foundation for Agriculture (AFBFA), contractor to the Beef Checkoff, the On The Farm STEM experience offers a first-hand look at beef production. It brings educators together with ranchers, researchers and veterinarians to see how they apply STEM concepts in the beef industry every day. The program’s goal is to increase participants’ agricultural knowledge and encourage them to better connect STEM with agriculture in their classrooms and curriculums. Over the past three years, AFBFA has engaged more than 200 education leaders, including those from the top 10 urban school districts in the nation.

“Prior to this On The Farm experience, I would have never thought to use hands-on STEM connected to agriculture, but now, I see immediate applications to tie what I’ve learned into science classrooms.” – Jennifer Mayo, Portland Public Schools.

As generations of consumers become further and further removed from agriculture, the need and demand for these experiences continues to grow. This is especially true in urban school districts, such as Los Angeles Unified School District (CA), Broward County School District (FL), Portland Public Schools (OR) and New York City Department of Education.

By investing checkoff dollars toward programs like the On The Farm STEM experience, beef producers are able to educate participants about the food system – resulting in a stronger pasture-to-plate connection.

These national events are moving the needle by enhancing beef perception and intent to consume while also increasing exposure to state programming. Pre- and post-event assessments administered to On The Farm participants indicated major changes in their perceptions of beef after attending the event.

Checkoff-funded consumer research shows us that the key generation for beef marketing – millennials – practically lives on digital devices. They use platforms like Facebook, Twitter, Pinterest and Instagram to get beef recipes, information and industry news. They see what their fellow consumers are saying about beef, then look elsewhere online to check if the information is scientifically sound. Most important for beef producers, they look to social media for quick and convenient recipe ideas to feed their families and help them thrive²¹

Your Beef Checkoff program is working diligently to make real, meaningful connections with these consumers to share positive, science-based stories about all things beef. It is the checkoff’s “Beef. It’s What’s for Dinner.” campaign that reaches this target audience in an authentic, genuine way – not only through the communication channels they use most but also through hands-on opportunities with Millennial influencers that are genuine beef advocates.

While challenging, all of these interests translate to tremendous opportunities for the Beef Checkoff program. Millennials are a growing generation, with expanding families and influence, who will make beef-buying decisions for the next 40-plus years.

The future of the industry depends heavily on this next generation of beef eaters, and your checkoff is seeing to it that they have the information to increase their confidence in you and your end product, making sure that beef remains “What’s for Dinner” for generations to come.

Connecting With Consumers Through “Chuck Knows Beef”

By the year 2020, 50 percent of all searches will be voice searches.²² That is why the checkoff is connecting with this important audience through “Chuck Knows Beef,” an all-knowing beef expert available on Amazon Alexa and Google Home. Chuck gives users the ability to connect with recipes and cooking information found on “Beef. It’s What’s For Dinner.”through voice activation. With nearly a half million sessions since being launched in 2018, the “Chuck Knows Beef” digital assistant, powered by Google Artificial Intelligence, is keeping beef information easily accessible for consumers. Chuck is available for download at ChuckKnowsBeef.com

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Defining “demand” and how it affects beef values

Demand vs. consumption

How the Beef Checkoff builds demand

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Frequently Asked Questions

Connecting With Consumers Through “Chuck Knows Beef”