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Checkoff Builds Beef Demand

published: July 8th 2008

Making sense of the beef checkoff structure and where your dollars are invested

Working cattle, balancing environmental conditions and frequent herd inspections to monitor health and well being are all part of a typical day for a beef producer.  From the pasture to the plate, a great deal of hard work goes into producing beef that is great tasting, nutritious and safe for consumers. 

While there are numerous stages in the production process and countless individuals who contribute to the end result, the importance of consumers buying beef at the meat counter and choosing steak at their favorite restaurant is critical.  The Beef Checkoff was developed specifically for this purpose and works to build beef demand through research, promotion and education, ensuring that consumers everywhere continue to enjoy the beef they love. 

Checkoff Structure – How does it work?

Established as part of the 1985 Farm Bill, the checkoff assesses $1-per-head on the sale of live and imported cattle, in addition to a comparable assessment on imported beef and beef products.  The checkoff assessment became mandatory following approval from 79 percent of beef producers in a national referendum.  In Texas, there was an 89 percent approval on the vote. 

The checkoff is administered by the Beef Promotion and Research Act on behalf of U.S. producers and the United States Department of Agriculture (USDA).  The Cattlemen’s Beef Promotion and Research Board (CBB) is made up of 104 volunteers nominated by state producer organizations and importers, and appointed by the U.S. Secretary of Agriculture.  The number of producers serving on the CBB fluctuates from year-to-year depending on the current cattle inventory. 

One of 14 Texas producers serving on the board, Sugie Sartwelle represents the Texas and Southwestern Cattle Raisers Association on the Cattlemen’s Beef Board executive committee.  She is the Beef Board’s representative to the joint industry producer communications committee and currently serves as chair.  “Being involved in the beef checkoff on a national level allows me to witness firsthand the strategic planning process that goes into developing programs that continue to increase demand for our beef products,” said Sartwelle, who operates livestock markets in Sealy and Brenham.  Duties of the board include certification of state beef councils, evaluation of programs, annual budget approval and overseeing collection of the $1-per-head beef checkoff. 

By law, the Beef Promotion Opera-ting Committee reviews and recommends approval of checkoff programs and must contract with national industry-governed organizations to implement programs.  Some of the primary contactors are the National Cattlemen’s Beef Association (NCBA), American National CattleWomen (ANCW), the National Livestock Producers Association (NLPA), the United States Meat Export Federation (USMEF), and the Meat Importers Council of America (MICA).  All programs and budgets must be approved by the United States Department of Agriculture (USDA). 

The CBB selects 10 of its members to serve on the Beef Promotion Operating Committee.  Together as a Federation, state beef councils select the other 10 producers to serve on the 20-member board.

Administered by the CBB, with oversight provided by the USDA, the beef checkoff process starts at the state level.  Qualified state beef councils collect the dollar and retain control of 50 cents for use in-state, while 50 cents is remitted to the national program. More than 600 producers sit on state beef council boards and play a key role in directing state and national programs. 

The Texas Beef Council (TBC) represents the state’s 149,000 beef producers who are committed to providing a safe and wholesome product for beef lovers everywhere.  Part of the Beef Checkoff Program, TBC is governed by a 20-member board of individuals from across the state representing various segments of the cattle industry.  The TBC board approves funding and implementation of all programs as well as funding for national and international programs.

Checkoff dollars may be invested in areas including promotion, research, consumer information, industry information, foreign marketing or producer information.  However, by law, checkoff funds cannot be used to influence government policy or action, including lobbying.

Beef Checkoff at Work – Where is my money invested?

The Beef Checkoff Program was designed to stimulate others to sell more beef and encourage consumers to purchase more beef.  This is accomplished through a combination of initiatives including consumer advertising, research, education and new product development.   

Consumer advertising has proven an effective way to reach the public and reinforce the beef message.  The most recent consumer advertising is the “Beef. It’s What’s for Dinner” campaign.  This memorable consumer advertising promotion, complete with the familiar voice of actor Sam Elliot and Aaron Copeland’s captivating Rodeo music, is recognized by more than 80 percent of consumers.

While promoting beef to U.S. consumers is a primary focus for the checkoff program, international markets are also a key factor in the industry’s goal of building beef demand.  Recognizing the importance of the global economy to the beef industry, checkoff dollars travel across borders to promote U.S. beef.  Through a partnership with the U.S. Meat Export Federation (USMEF), TBC promotes the advantages of U.S. beef to foreign buyers, influencers and consumers through trainings, educational seminars and Texas beef festivals and events.

Dan Dierschke, a cow/calf producer from Austin who serves on the Beef Promotion Operating Committee, the TBC board of directors and the USMEF executive committee, understands the importance of these efforts.  “With the reopening of various international markets, the beef checkoff is working to ensure U.S. beef remains in high demand in foreign countries and will continue to support promotions to the export market,” said Dierschke. 

In order to promote beef as a safe and wholesome product, consumers today demand science-based facts and information proving beef’s competitive advantages.  Research provides the tools and foundation for checkoff activity in areas such as nutrition, product enhancement and beef safety.  “Beef research enables the industry to create options that meet consumer demands,” said Rosemary Brizendine, TBC chair and beef producer from Winona. “Not only are we able to prove the nutritional value of beef in a healthy diet, but we have also developed new products that enhance the value of our product.”

Checkoff-funded nutrition research helped confirm that lean beef packs a nutritional punch.  Through promotions and partnerships with organizations such as the American Dietetic Association and the American Heart Association, health influencers and consumers are being made aware of the nutritional benefits of beef.  Youth education is also a focus with a checkoff-funded school curriculum, websites and other materials reaching 20 million U.S. young people with the message of beef’s role in a healthy diet. 

Research also impacts new products.  The Beef Value Cuts program began in the late 1990s with the checkoff’s groundbreaking muscle-profiling research that created new products from underutilized muscles in the chuck and round.  The first wave of value cuts experienced dramatic growth in both foodservice and retail outlets.  To date, cuts such as the Flat Iron, Petite Tender and Ranch Steak have been menued in nearly 20,000 U.S. restaurants and sold in 9,000 grocery stores across the country.  Cattle-Fax estimates the first round of value cuts has added $50 to $60 a head to the value of the chuck.

Additional program areas include outreach to foodservice and retail professionals, direct to consumer events and promotions, issues management preparation and beef quality programs that provide information on quality management practices for producers. 

Checkoff Initiatives Continue

Celebrating 20 years of beef programs in 2006, there have been several milestones in the cattle industry during the Beef Checkoff Program.  Beef demand is up more than 13 percent between 1998 and year-end 2006.  Cattle-Fax estimates that the increase in beef demand since 1998 has added about $250 per-head to the prices of fed cattle and about $200 per-head to the price of calves.  Beef continues to hold its own on the American dinner table and demand remains strong. 

“As long as beef producers continue providing product, we will continue our efforts to promote beef through research, promotion and educational programs,” said Richard Wortham, Executive Vice President of the Texas Beef Council.  “Our goal is to arm consumers with the right beef tips, cooking information and tools so they will continue choosing steaks, ribs, beef burgers and roasts.”