Is the Checkoff Working?

    You bet!   It is hard to understand how anyone could want to get rid of the checkoff when it has done such a good job for us.   Remember December 23, 2003?   Which one of us thought that with a BSE case in the US, we would be able to improve beef demand by 8%?   Who thought we would sell $94 fat cattle in April?   

The checkoff's quick response to BSE kept the consumer's faith in our product.

In addition, new product development, nutritional research and communication of nutritional information and other checkoff programs have given the consumer a good reason to buy beef.

New product development with Checkoff dollars dealt with the chuck and the round.  The chuck decreased in value by 24% in the mid 90's.  Since '98, the value of the chuck has increased from $66 to $104.
It is no accident that it was 1998 that the industry started concentrating on one plan and speaking with one voice.   We have improved beef demand by 25% since '98 after losing about 50%.   '98 is also the year we started nutritional advertising. 

A lot of producers ask how demand has helped them.  In past years, some have even claimed that the packers and retailers have reaped all of the benefit form increased demand.   We can see, today, that this is not true.   Packers and retailers are not profitable today in spite of the fact that we are producing more beef.   We have kept per capita consumption steady while increasing prices to the consumer and to the producer.  

 
Every producer knows that his prices have increased.  We can thank our investment in the checkoff for that.

You may have heard folks say that this tremendous increase in prices is due to the Atkins diet.   If that is true, why hasn't chicken had the same increase in demand?   Why is it that the Pork demand increase dropped 2.76% between 1998 and 2003 during the height of the low carb craze?   In fact, pork demand didn't increase until Pork gained exports when we lost the ability to export.  The $250 increase per head is due to Checkoff dollars well invested.

In addition, we have invested a lot of dollars to make our product better and safer.   Being able to buy bulls with tender proven genes is just around the corner.   Our Checkoff funded research developed intervention strategies for e-coli that has reduced its incidence by 80%.  

What will the Supreme Court do to us?   I don't know.   However, I do know that whether we keep the mandatory Checkoff or not, we will have to have a Checkoff.  We can't afford to lose the progress we have made.