How their contributions are allocated in programs such as the Beef Checkoff is a concern for many beef producers. At a Sept. 10-11 meeting in Denver, CO, the Beef Promotion Operating Committee (BPOC) approved the checkoff budget for the fiscal year (FY) 2020, beginning Oct. 1. Of the total $44.5 million budget approved, $40.9 million will be invested in beef promotion, research, consumer and industry information, foreign marketing, and producer communications.
A total of 15 grant proposals were approved from seven contractors. Most of the funding will go to promotion programs, with $10.4 million allocated towards promotional efforts. A close second, research programs will receive $9.5 million to focus on a variety of research-based issues. Foreign marketing and education programs in 80 countries will be allocated $8.3 million. Consumer information programs will receive $7.6 million and industry information programs will see $3.4 million. Finally, a total of $1.6 million will be used for producer communications.
Approved contractors include the National Cattlemen’s Beef Association (NCBA), North American Meat Institute (NAMI), Cattlemen’s Beef Board (CBB), American Farm Bureau Foundation for Agriculture (AFBFA), Meat Import Council of America (MICA), United States Cattlemen’s Association (USCA) and the National Livestock Producers Association (NLPA).
The BPOC is responsible for developing the annual checkoff budget, which must be approved by both the USDA and CBB. BPOC is made up of 10 producers elected by the CBB and 10 producers elected by the Federation of State Beef Councils.
“The BPOC is completely producer-driven. We have cattlemen and women from all over the U.S. as well as importers deciding where these checkoff dollars need to be spent,” said CBB and BPOC Chairman Chuck Coffey in an official statement.
“It’s always great to hear about the programs and projects proposed by our contractors to utilize our checkoff dollars, yet on the other side, an equally difficult decision is to balance the budget and distribute those dollars according to where we believe will be most useful for driving beef demand.”
Promotion allocations
NAMI and NCBA received the majority of funds allocated towards promotional efforts. NAMI plans to continue outreach with millennial consumers, health professionals, and media influencers. The organization plans to run a campaign targeting processed meats, and switch to calling the products “prepared meats” because it has a more positive health connotation.
The association recently introduced Beefshi, which is a sushi-based product made with processed meats such as hot dogs instead of raw fish. NAMI plans to further promote the product and make it more established in the market. The organization also plans to increase veal marketing efforts by updating and further marketing a website around the product, as well as producing recipes and incentive contests
NCBA said it is going to continue its previous marketing strategy by expanding the “Beef. It’s What’s For Dinner.” campaign and reaching consumers more digitally. The organization also plans to implement third-party monitoring of Chuck Knows Beef, a recently-introduced interactive platform to assist with beef recipes.
Research funding
Three groups will be receiving funding for research purposes. The Foundation for Meat and Poultry Research and Education, in collaboration with NAMI, was granted funds for post-harvest beef safety research. This includes studying the development and onset of human illness from bacteria such as E. coli. The organization also plans to research the nutritional and health benefits of processed beef. The projects will span three years and will be completed by the end of FY 2022.
NCBA plans to use funds to build science-based evidence through research to inform the supply chain of beef safety decisions. This includes targeting the scientific community with results in order to provide evidence for dietary recommendations. NCBA also plans to study pre-harvest challenges. The association is set to conduct culinary research as well, and develop new recipes for inspiration about the nutrition, value, and ease of preparation of beef.
The USCA will work with Kansas State University to monitor the status of beef demand in the U.S. and the notable need and value for the entire meat industry. This initiative also includes training graduate students with economic interest in the meat livestock industry.
Consumer information
Three contractors will receive funding to increase consumer awareness and information. MICA plans to target the consumer-heavy Northeast population to engage with about beef quality, safety, and nutritional value. The organization is also set to expand consumer marketing and engage nutrition influencers to help share the beef industry’s story and merit.
AFBFA will utilize funding to promote STEM (science, technology, engineering, math) materials about cattle production. This includes educating K-12 science teachers through programs with industry information they can bring back to the classroom.
NCBA will receive funds to increase marketing efforts such as the “Beef. It’s What’s For Dinner.” campaign and further expand beef experts’ networks to include food, health, culinary, and beef industry influencers.
Industry information
NAMI will be receiving additional funding to develop crisis management plans and to certify and verify production practices. These plans aim to protect the beef industry’s image and engage beef advocates. This includes further developing a veal quality assurance program, similar to the Beef Quality Assurance (BQA) program.
The NLPA will utilize funding to expand antibiotic stewardship among producers and promote the science of antibiotic use in animal agriculture. This will include holding antibiotic symposiums and a partnership with the Centers for Disease Control.
NCBA plans to use funding for issues and crisis management, as well as implement a reserve for industry crises such as disease outbreak, foodborne illnesses, or other events that will negatively affect beef’s image. NCBA also plans to update BQA funding and expand beef advocacy training.
Foreign marketing and producer communications
NCBA and subcontractor USMEF will utilize funding for further developing beef’s presence in global markets. Tactics include maximizing the impact of market access initiatives, educating target buyers, and capitalizing on cooking trends and collaborating with regional retailers. These efforts will help to establish a positive image of beef for international suppliers.
CBB plans to revamp producer communications this upcoming fiscal year to better accommodate the diversity of producer geographies, demographics, checkoff sentiment, history, and economics. They plan to do this through surveys, engaging directly with individual producers, and by conducting roundtables. CBB also plans to expand integrated producer communications by increasing both digital and print communications and having more frequent public relations with the media.
The total FY 2020 CBB budget is around $44.5 million, a $614,600 increase from the FY 2019 budget of $43.9 million. In addition to the grant proposals it includes: $227,000 for program evaluation; $474,500 for program development; $800,000 for USDA oversight, which includes $400,000 for Agricultural Marketing Service oversight and $400,000 for CBB’s legal and compliance; and $2.1 million for CBB administration. — Anna Miller, WLJ editor
