A recent independent economic study assessing the Beef Checkoff’s effectiveness and financial benefits revealed substantial positive effects, including an incremental $3.3 billion added to the beef industry in 2023. The study was commissioned by the Checkoff Evaluation Committee and conducted by Dr. Harry M. Kaiser of Cornell University.
“We’re extremely pleased with the results of this latest study,” said Cheryl DeVuyst, chair of the Beef Checkoff Evaluation Committee and current secretary-treasurer of the Cattlemen’s Beef Board (CBB). “The Beef Checkoff’s primary goal is to increase beef demand here in the U.S. and worldwide. The statistics uncovered by this study tell us that we’re achieving that goal and providing producers and importers with an excellent return on their national Checkoff investments.”
The economic analysis of the national Beef Checkoff program was conducted to achieve three primary objectives.
The first was to measure the impact of demand-driving activities on domestic and international beef demand. The results indicated that domestic beef demand from 2019-23 would have been 8.5% lower without these activities, while demand for U.S. beef imports in key markets would have been 11.5% lower.
The study found the Beef Checkoff increased domestic and international beef demand and led to higher steer prices for beef producers. Without the domestic demand-driving activities from 2019-23, steer prices would have been 7.8% lower per year compared to actual results.
The second objective was to evaluate the financial benefits to the beef industry, calculating an overall return on investment (ROI) for the program. The analysis found that each dollar invested in the program generated $13.41 in financial benefits for producers and importers, reflecting a significant improvement from the previous evaluation conducted for 2014-18, which reported an ROI of $11.91.
The third objective assessed the program’s indirect benefits on the broader economy. The study found the Beef Checkoff program also contributed to broader economic growth by increasing U.S. employment by nearly 46,581 jobs, raising employment income by $2 billion, and boosting the U.S. gross domestic product by almost $9.5 billion. Additionally, the program’s activities increased federal, state and local tax revenues, totaling $743 million in 2023.
Overall, the study concluded the Beef Checkoff’s demand-driving activities enhanced beef demand and delivered extensive economic benefits.
“While we’re pleased Beef Checkoff programs are having a positive impact, we know there’s always room for improvement,” DeVuyst said. “The CBB is dedicated to making the best possible decisions on behalf of beef producers and importers. As we head into the remainder of FY24, we’ll take what we’ve learned from this study and continue moving the needle forward.”
Every five years, all commodity boards independently evaluate their program’s effectiveness following the USDA’s Agricultural Marketing Service guidelines for commodity research and promotion programs.
For the complete study, executive summary or more information about the Beef Checkoff and its programs—including promotion, research, foreign marketing, industry information, consumer information and producer communications—visit DrivingDemandForBeef.com. — Charles Wallace, WLJ contributing editor
