20 years on, the
industry’s checkoff program is proving the sense and power of
taking matters into your own hands.
by Wes Ishmael
“In 1973, there was national beef boycott. We were coming into a
time of increasing inflation and consumer activists used beef as
a symbol of inflation. And the headline news was always the high
meat prices and the beef boycott,” remembers John Huston, former
president of the Beef Industry Council (1969-1980) who went on
to lead the National Live Stock and Meat Board from 1980 to
1996.At the
same time consumer activists found it easy to question the
healthfulness of beef because there was no unified voice to
respond with cohesive scientific research.
This crisis was one
of the drivers behind cattle producers working to develop an
“everyone pays—everyone benefits” industry self-help program.
The core idea was nothing new of course; the first voluntary
industry checkoff program began in the 1920’s.
What did prove new,
was producers’ collective conviction to have and fund such a
program. Ultimately, after two failed efforts, the Beef
Promotion and Research Act of 1985—part of the 1985 Farm
Bill—was passed. This legislation created the $1-per-head Beef
Checkoff Program and established the current framework under
which the today’s programs exist.
Despite vocal
efforts from some in the industry to disband the checkoff—a
constitutional challenge made it to the Supreme Court—this has
always been a minority voice. When the referendum passed in 1985
it did so with 79% of producers agreeing to it. Through the
years producer approval rating has consistently hovered around
70%.
In the most recent
survey, the top three checkoff–funded activities producers
describe as essential to the beef industry are: continuing to
foster consumer confidence in the safety of beef (62%);
advertising beef to consumers (57%); and promoting U.S. beef in
other countries (51%).
The Value of Self-Help
Though difficult to quantify, history underscores the wise
investment producers made and continue to make with checkoff
dollars. A University of Florida study in 2004 pegged the
industry return at $5 for every $1 paid by producers.
That’s not hard to
believe when you stop to think about the number of industry
programs taken for granted today that came to life through full
or partial checkoff funding.
Certainly, the most
visible is all of the advertising, with the current “Beef. It’s
what’s for dinner,” campaign being one of the most recognized ad
programs in the nation. That along with student education
programs and consumer education about the health facts
concerning beef.
Within the industry
the Strategic Alliances study helped forge the path to industry
alliances and value-added grids and programs. The national Beef
Quality Audit established a benchmark for the ability of U.S.
cattle carcasses to satisfy the consumer, then serve as a
barometer of progress through the years.
The Beef Quality
Assurance (BQA) program many producers are familiar with or
participate in also traces its roots to checkoff funding.
“Early on, through
this program (BQA), we came to understand through research that
many things producers had routinely done to manage their cattle
over the years have a profound effect on the final quality of
the product,” explains Bill Mies, a BQA technical advisor for
more than 20 years. “If producers know what the effect of a
particular management practice is, then they can change it or
alter it or improve it and then that gives a better final
quality of product that we can present to the consumer.
“When we attacked
the issue of injection site lesions, for example, in the butt
ends of cattle, we took that information to the country and in a
very short time producers responded and said, if that’s a
problem we’ll change it. Nobody paid them, nobody gave them any
extra money. They just did the right thing in order to improve
the quality of the product.”
Research has been a
constant focus of checkoff dollars, research that aims to
satisfy beef consumers and return more dollars to producers.
Over the years this has included everything from research about
how to mitigate e. Coli, to development of added-value cuts from
the least valuable carcass primals.
As to the former,
partially due to checkoff-funded research in harvest facilities
the number of positive E. coli O157:H7 ground beef samples was
reduced 80% between 2000 and 2005. Since a 19-million-pound
ground beef recall in 1992 due to E. coli O157:H7, the beef
checkoff has invested more than $20 million in safety research
and implementation.
“That’s been huge,”
says Mike Engler, a Texas feedlot operator and chairman of the
Beef Safety Committee. “Checkoff dollars have been used
consistently and in great volume into beef safety research. We
spent dollars in the early days where it needed to be spent, on
interventions in the packing plant, and we’ve spent a lot of
money in the last few years on pre-harvest. All these
researchers today, and by good measure, were always thanking the
checkoff for funding.”
As for those value cuts, they’ve contributed $60-$70 per head to
the value of chucks since 1998.
“It’s very difficult to get a large, industry-based commodity to
change the way they do things. But we changed the way those
carcasses were taken apart and the way those muscles were
merchandized. To the good, to the advantage, to the extent that
they retain value to the producer and return value to the
processor for the little bit of extra time it takes,” explains
Chris Calkins a meat scientist from the University of Nebraska
who helped pioneer the notion. “And that fundamental shift in
how the industry operates is something that absolutely would not
have occurred had not the checkoff project been conceived,
initiated, conducted and, in turn, put to work for the
industry.”
Looking beyond the
U.S. borders, checkoff dollars and programs have been key to
securing an international market that was responsible for about
$10/cwt. on fed cattle befor e BSE according to many industry
estimates.
“The checkoff was
instrumental in the real launch of our product internationally,”
says Phil Seng, president and CEO, U.S. Meat Export Federation.
“Up until 1985, of course, we were dealing primarily with the
Japanese market, or 90 percent of our exports were going to the
Japan and so the precious little money we had at the MEF at that
time was developing the Japanese market. With the checkoff,
we’ve been able to diversify and go into other markets—I think
with the checkoff you can see that the work done in these other
markets has been phenomenal. When you look at growth in Mexico,
in Korea—this has all been done with checkoff dollars partnered
with USDA dollars so the checkoff has been a real catalyst for
us to be diversified in other markets as well. When the markets
closed in 2003, we were in 133 countries, which is quite a
success story if you take a look at that.”
All of this fails
to begin scratching the surface (see What the Checkoff Does) of
what checkoff dollars have accomplished on a national basis and
doesn’t account for the wealth of innovation that has occurred
through the state beef councils which are also funded with
checkoff dollars.
After 20 years, Huston says there’s no question that the
checkoff has made a difference. “It has been a catalyst in the
market,” he explains. “No one is suggesting that the checkoff
alone is responsible for the increase in beef demand, but it’s a
very important factor in the total mix.”
“Our accomplishments are legendary and viewed by many others in
agriculture as standards by which to measure success,” says Jay
O’Brien, a cattleman from Amarillo, Texas, who served as
Cattlemen’s Beef Board Chairman last year. “At the same time,
we’re a stronger program as a result of the challenges we’ve
been through.”
Jo Ann Smith, who
served as first chairman of the Cattlemen’s Beef Board from 1986
to 1988, says , “I’d have to give it (the checkoff) very high
marks. Obviously we are currently experiencing a strong demand
factor and we’ve increased beef demand 25 percent. Now we know
the checkoff program isn’t the only thing but certainly that
education to the consumer has played a big role in helping them
understand that we can eat beef.”
“The history of the
Beef Checkoff Program is impressive, but we’re even more excited
about its future,” says O’Brien. “Going through growing pains is
a difficult but empowering experience. Now we have the
foundation, experience and momentum to create an even greater
effort to build demand for beef.”
“The one thing that
remains constant through the 20 years is that this program was
designed to enhance demand for beef and profit opportunities for
cattle producers,” says Monte Reese, who retired as chief
operating officer of the Cattlemen’s Beef Board earlier this
year. “That has not changed and I don’t expect it to ever
change. That’s the reason for the existence of this program.”
So, thank the checkoff, which is the same as thanking yourself
and your peers for the commitment in investing dollars for the
industry good.
What the
Checkoff is
Heading into the 20th anniversary celebration of the
nation’s beef checkoff, folks at the Beef Board set about
coming up with a list of the 20 check-off funded programs
that have made the biggest difference.
According to Jay
O’Brien, a beef producer from Amarillo, Texas, who served as
Beef Board Chairman last year, it was easy coming up with 20
programs, but it was tough to limit the list to only 20.
Here’s what they
came up with:
Beef. It’s What’s for Dinner—Research shows that more than 80%
of people surveyed recognize the “Beef. It’s What’s For Dinner®”
ads, with the familiar voice of cowboy actor Sam Elliott.
Beef Nutrition—Checkoff-funded research has confirmed that,
calorie for calorie, lean beef packs a punch. A nutrition parity
study between beef and chicken revealed that a 3-ounce cut of
lean beef has, on average, only one more gram of saturated fat
than the same size serving of a skinless chicken breast. That
3-ounce serving of lean beef delivers eight times more vitamin
B12, six times more zinc and three times more iron than the
chicken. And 29 beef cuts now meet government guidelines for
lean.
Beef Quality Assurance—This program has helped certify 60,000
producers on herd management practices that can make or break
final product quality. BQA information set the quality bar
through fed steer/heifer and cow/bull audits, which began to
show significant drops in several common areas of pre-harvest
injury that can de-value the carcass. Damage from injection site
lesions dropped from 22% of all top butts to less than 3% in
recent years.
Carcass Value.—Checkoff-funded Muscle Profiling research has
improved carcass value by creating new products from previously
underutilized muscles in the chuck and round. New checkoff-funded
products include the Beef Value Cuts, which have contributed to
a $60- to $70-per-head increase in the value of the chuck since
1998. Research into more new products continues.
Consumer Confidence—BSE made U.S. headlines in late 2003, but
thanks in part to beef checkoff-funded efforts, consumers were
reassured about the safety of the U.S. beef supply. Information
programs helped maintain consumer confidence levels, which rose
as high as 91% after the first case was discovered in the United
States.
Dairy Coordination—As beef producers, dairy producers pay the
checkoff, too. Dozens of delicious dishes combining beef and
dairy appear regularly in checkoff-funded recipe resources, such
as beefitswhatsfordinner.com web site. In 1991, the beef
checkoff partnered with the American Dairy Association to
promote “Double Cheeseburger Days,” a point-of-purchase
promotion at 24,000 U.S. retail outlets. Targeting college
students and other consumers, this promotion generated $22
million in positive exposure—at a cost to the beef industry of
$1.7 million.
E. coli O157:H7—The U.S. beef industry has invested more than
$20 million in checkoff funds since 1993 to battle continuing
challenges created by E. coli O157:H7 and other pathogens. Due
in part to this research and implementation efforts, incidence
of E. coli O157:H7 was reduced 80% over the past five years,
surpassing government goals six years ahead of schedule.
Food Communications—Behind-the-scenes work to provide editors
with recipes, photos and beef information is a checkoff
information effort that reaches consumers more than 1 billion
times a year through newspapers, magazines, cookbooks and web
sites. The checkoff’s own culinary center aids the effort with
recipe development and program support.
Foodservice Partnerships—Partnerships with foodservice entities
have earned high visibility for beef through savvy checkoff
investment. A 2005 promotion with Boston Market helped introduce
new sirloin items to the 630-store chain, previously known for
its chicken entrees. During the last five years, the checkoff
allocated about $2 million to foodservice partnerships, with
restaurant partners investing nearly $123 million.
Foreign Marketing—During the first 10 years of the checkoff,
beef exports nearly tripled. The United States lost 72 of its
133 foreign markets following a December 2003 BSE case. By
mid-2006, however, 50 of those markets had reopened and checkoff
dollars immediately went to work to regain U.S. market share.
Instrument Assessment Plan—A National Beef Instrument Assessment
Plan helped generate information about how to measure such
factors as intramuscular fat, subcutaneous fat and meat
tenderness and provide the consumer with a predictable,
pleasurable eating experience.
Market Basket Survey—A 1987 checkoff-supported survey of beef
marketing showed that beef contained 27% less fat than just a
few years earlier. This information, which also showed that beef
trim had been reduced to 1/8-inch, was featured in a USDA news
briefing and video news release sent to 600 TV stations,
providing significant positive exposure for beef.
Market Research—Continuing research helps the industry monitor
the attitudes and actions of customers. Market intelligence has
helped drive development of beef products that are fast,
convenient and meet consumers’ expectations for a tender,
delicious meal. Market research is at the heart of current
efforts to roll out a handheld beef product in the near future
that is kid-friendly and mom-approved.
National Beef Cook-off—Amateur cooks nationwide submit hundreds
of recipes for the biannual National Beef Cook-Off. This
promotion event, funded in part through the checkoff, provides
thousands of opportunities for publicity. Media coverage for the
2005 Cook-off generated more than 2,300 placements, equaling 357
million media impressions.
New Product Promotion—The checkoff’s BEEFlexible promotion
helped move 103 million pounds of Beef Value Cuts through
foodservice channels last year, putting the new products on the
menu in some 20,000 U.S. restaurants. On the retail side, 5,000
supermarkets sold value cuts in 2005, up from just 321 in 2003.
Nutrition Partnerships—Checkoff partnerships with the American
Dietetic Association (ADA) and the American Heart Association
(AHA) help make a difference in how health influencers and
consumers perceive beef. The Healthy Beef Cookbook was produced
via a checkoff information partnership with the ADA in 2005 and
generated 80 million impressions in consumer media in its first
six months on the market.
Retail Assistance—A checkoff-funded promotion planner and
merchandising guide, first introduced in the late 1980s, along
with training sessions and the Beef Made Easy program materials,
have helped retailers become more savvy beef and veal marketers.
Summer Grilling Promotion—The checkoff launched this annual
promotion five years ago and powers it via combined state and
national checkoff funds, as well as promotional funds from
high-profile retail partners. In 2005, grilling cuts accounted
for more than 67% of beef sales during the summer, driving beef
sales up 3.7% on a dollar basis over 2004 numbers.
Youth Education—In 2005, beef checkoff information highlighted
the role of beef in a healthy diet to “tween” girls. Checkoff-funded
materials went to 35,000 teachers; 80,000 girls participated in
the checkoff’s Fit for a Princess Girl Scout patch program.
10,000 copies of Choose Well, a healthy grade school curriculum,
were sent to teachers in summer 2006. Choose Well is produced in
partnership with the ADA, as part of its Healthy Families,
Healthy Kids initiative.
Veal Possibilities—The checkoff funded veal promotion began in
1997 to reach both retail and foodservice outlets. A new
tagline, Veal. Explore the Possibilities, and a strong
“go-to-market” strategy strive to help veal find a new audience
among casual diners, as well as the traditional fine-dining
aficionados.
Source: Beef Board |
