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.”