Study shows Beef Checkoff program yields $11.20 per $1 invested

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Consequently with the decline in the national beef numbers, Beef Checkoff budgets have taken a significant hit – but that hasn’t stopped the $1 investment per head of cattle sold program from accelerating in returns.

In the recent Checkoff Return on Investment study conducted by Dr. Harry Kaiser of Cornell University, it was found that the $1 investment into the Beef Checkoff program yields $11.20 in returns, announces Kaiser during the 2014 Cattle Industry Summer Conference.

The objectives of the study analyzed:

  • Measure of impact of CBB marketing activities on beef demand in the U.S. and internationally
  • Compare benefits to cost of CBB activities for producer’s and importer’s investments into the Beef Checkoff.

The extensive study looked at different marketing activities by CBB to see what held the best return on investment. What the study found showed the Beef Checkoff program held substantial credit for beef demand within the U.S. From 2006 to 2013, CBB activities increased beef demand by 2.1 billion pounds, including a 6.4 percent increase in U.S. beef exports through export marketing programs – and an even bigger impact nationally.

The study evaluated the following CBB expenditures and their impacts on U.S. beef demand. Had it not been for these programs:

  • Beef advertising – Domestic beef demand would be 0.7 percent lower
  • Retail and foodservice marketing – Domestic beef demand would be 0.6 percent lower
  • Industry information – Domestic beef demand would be 0.2 percent lower
  • Public relations – Domestic beef demand would be 0.5 percent lower
  • Nutritional research – Domestic beef demand would be 3 percent lower
  • Beef safety research – Domestic beef demand would be 2.1 percent lower
  • New-product development – Domestic beef demand would be 1.2 percent lower
  • Product enhancement research – Domestic beef demand would have been 0.4 percent lower.

“If you didn’t have the CBB over these years, beef demand would be 11.3 percent lower,” says Kaiser. “That is what I would call a substantial impact.”

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MikeS.    
Kansas  |  August, 02, 2014 at 07:39 AM

This article is so far off from the truth. The corruption with the checkoff is evident and the lies told to protect the financing of the demise of the USA producers is unreal. Without question Country of Origin has done more for the beef demand and less contracted and committed cattle have done more for the price USA producers receive than any $1.00 checkoff has ever done. The Checkoff system as it is currently ran is broken, much like the government! Unless we all do our homework the system of "POLITICAL GROUP OF LIARS, THUGS AND THIEVES IN D.C." WILL NEVER CHANGE. Why we keep doing the same old thing is beyond belief. Just because it started out good doesn't usually mean it will not be corrupted or honest!

Jay    
Arizona/New Mexico  |  August, 02, 2014 at 10:27 AM

The study purports to measure demand over an 8-year period and cites 8 categories, measuring demand down to a tenth of a percent. How is demand measured so precisely and how was demand measured? Demand is logically measured by per capita consumption which is down by 1/3 since the implementation of the checkoff and is at its lowest level in over 50 years! For the period covered by the "study," per capita consumption fell every year but one. Here are the actual per capita consumption numbers for the study period according to USDA: 2006, 65.8; 2007, 65.3; 2008, 62.7; 2009, 61.1; 2010, 59.6, 2011, 57.3; 2012, 57.4; and 2013, 56.4. Over the "study" period, per capita consumption DECLINED over 9 pounds, or 14%! As a cow-calf producer, I highly resent i) the funding of such a nonsensical "study" and ii) the lengths NCBA and the Checkoff will go to misrepresent the putative benefits of the checkoff. Record high cattle prices are a direct consequence of the fact that the beef-cow inventory is at its lowest level in some 65 years, no thanks to the checkoff.

Dave    
Nebraska  |  August, 02, 2014 at 10:58 PM

I don't know what all the fuss is about. The return on investment has gone from $5 per $1 invested to $11.20 per $1 invested. I see no need to increase the $1 assessment.

Lamar Kelly    
Alabama  |  August, 06, 2014 at 10:16 AM

The numbers you present as fact may or may not be correct; however, they are as shaky as the assumptions my five year old daughter made when attempting to justify us buying her another pet. Shame on you for your presentation of these numbers as facts - they should be depicted as estimates based on broad assumptions.

Oscar    
August, 07, 2014 at 10:29 AM

Obviously we need to increase the Checkoff to $10/hd or maybe even $100/hd now that we can well afford it with these new beef price levels. Just imagine - if a measly $1 can reap over $12, what $100 could do!! This beef business just gets more and more profitable. Why did we wait so long to jack prices through the roof? I could have been raking in all this profit for years if the industry hadn't been so stingy with pricing and checkoff and all that.


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