2012 Beef Board Annual Report - Cattlemen's Beef Promotion and ...

Funded by the Beef Checkoff.
Working to strengthen beef’s
position in the marketplace
Cattlemen’s Beef Board • 2012 Annual Report

Dear Fellow Producers,
As we reflect back on Fiscal Year 2012, the beef industry has seen changes throughout the
market chain. Our Beef Checkoff Program has been there to represent our industry and
share our story with consumers in the U.S. and around the world. As Beef Board members,
I share your commitment to our industry: To perform research, education and promotion
that enhances producer profitability. CBB’s main responsibility is to make sure our checkoff
dollars are spent correctly, provide oversight for checkoff expenditures, and get the most
mileage that we can out of each dollar invested.
Looking back on 2012, here are a few of the highlights of checkoff work you can be proud of:
• Discovering new, hand-held products: J.M. Garret Foods, Inc., worked with the checkoff’s Beef Innovations
Group to roll out three new fun appetizer products loaded with beef and other quality ingredients, including the
Philly Cheesesteak Bites, Beefy Queso Bites and Reuben Bites.
• Sharing the findings of the BOLD nutrition study and how lean beef fits a healthy lifestyle: The BOLD study
was published in the American Journal of Clinical Nutrition.
• Conducting the 2011 National Beef Quality Audit that shows our industry’s continued commitment to quality:
The checkoff has issued a number of fact sheets and final reports detailing what we as producers can do to
improve quality on our farms and ranches and then communicate that back to the consumer.
• Exports into foreign markets: The population outside the U.S. is growing steadily and expected to continue to
do so through at least 2050. If you calculate the population on a country-by-country basis, you’ll discover that
the population of the United States represents just 4.5 percent of the world population. All told, there are 22
times as many consumers outside of the U.S. as there are within our borders, which gives us a clear sense of the
opportunities to grow sales of our end product through exports. Today, the checkoff is promoting U.S. beef in
more than 80 of the 228 countries across the globe, and working toward expanding that wherever and whenever
opportunity knocks.
Another thing I want to reemphasize is the importance of our checkoff’s state/national partnership. I’m proud that
since the start of the checkoff 26 years ago, producers in the U.S. have contributed millions of dollars every year to
help keep the beef industry competitive with other proteins. That money has helped us target heavily populated urban
areas, like New York and California. And, with these dollars we’re reaching “millennials” — those born between 1980
and 2000 — a priority target group for the beef industry as they will soon become the dominant group in society.
Checkoff-funded market research has also found that perceptions about beef are more positive than perceptions about
the way cattle are raised. This gap will be a critical, ongoing measure of the effects of communications and issues
management programs designed to inform and reassure consumers about beef production. To address these everchanging
consumer needs in the coming year, the checkoff has developed a new committee structure that will make us
more focused on consumer preferences in order to achieve greater program results. Beef is the No. 1 protein and our
checkoff programs are geared to keep it that way!
We have been charged with feeding our nation and the world. That requires you to spend time away from your farms,
ranches and businesses, but in doing that, we keep beef top-of-mind with consumers around the globe. So get to
know your checkoff better through this 2012 annual report. And, from my ranch in New Mexico to yours, thank you
for your investment in this industry we all care so much about. I’m looking forward to a wonderful 2013.
Warm regards,
Wesley Grau
Grady, New Mexico
2012 Chairman
Cattlemen’s Beef Research and Promotion Board

2012 Cattlemen’s Beef Board Leadership
Seated left to right: Vice Chairman Weldon Wynn, Arkansas; Beef Board Chairman Wesley Grau,
New Mexico; Secretary/Treasurer Kim Brackett, Idaho; CBB Chief Executive Officer Polly Ruhland
2012 Beef Board Members
Beef Board members are nominated by fellow producers in their respective
states or regions. The U.S. Secretary of Agriculture appoints producers to the
Board from these nominations, and the U.S. Department of Agriculture oversees
the Board. Each Board member serves a three-year term and may serve a
second consecutive term if reappointed. Beef Board members serve without
compensation. In 2012, Beef Board members represented 10 different sectors of
the beef industry with the largest being cow-calf. There are no packer seats on
the Beef Board.
Barbara Jackson
Tucson
AZ
Leo Sutterfield, Jr.
Mountain View
AR
AR
Weldon Wynn
Star City
Wayne Buck
Ignacio
Phyllis Snyder
Cortez
Andy Wick
Austin
Sarah Childs
Lake Placid
Jim LeFils
Osteen
Kim Brackett
Buhl
Dan Hinman
Emmett
Jeanne Harland
LaFayette
Andrew Banchi
Kenosha, WI
CO
CO
CO
FL
FL
ID
ID
IL
Importer
2012 Beef Board Annual Report
3

OVERVIEW
The aim of the Beef Checkoff Program is building beef demand. Demand often is confused with
per capita consumption — a different measure. Consumption is driven by supply and is the result
of market conditions, which are affected by many factors, including cattle inventory, natural
disasters, changes in imports and exports, and growth in the U.S. population — all of which
make less beef available per capita.
Demand, on the other hand, is driven by consumer preference, the amount of beef that consumers
will purchase combined with the price they are willing to pay for that beef.
Why Demand Matters
We consume our beef supply in the United States every year, but the benefits to beef producers
and the rest of the industry are based on the price at which that supply is sold. The variable is
the price at which we are able to sell that beef to clear the market. If consumer
preference, or demand, for beef is high, we will sell the supply at a higher price.
To have an impact on producers’ bottom lines, consumers have to want beef
products enough to pay strong prices for them.
Do Consumers Prefer Beef
The short answer is Yes.
U.S. per capita beef consumption has declined in recent years, but that does
NOT mean that consumer preference or demand has waned. In fact, quite
the opposite: Lately, we’ve seen beef prices increase much faster than the rate
of inflation while consumption declined only slightly, which means that
beef demand has remained steady.
Where the Beef Checkoff Comes In
The Beef Checkoff Program focuses on maintaining strong consumer preference for beef by
providing products and qualities in beef that consumers demand — like taste, nutrition,
consistency and tenderness — so that consumers are willing pay more for that same quantity
of beef.
In this report, you’ll get information
about some programs your beef
checkoff dollars were invested in
during FY 2012 — and how those
investments helped move the
needle on consumer perference.
Industry
Information
$3,866,591; 9.1%
Program
Evaluation
$131,674; 0.3%
Producer
Communications
$1,745,326; 4.1%
Foreign
Marketing
$6,129,529;
14.4%
Program
Development
$198,499; 0.5%
USDA Oversight
$211,065; 0.5%
Administration
$1,632,467; 3.8%
Consumer
Information
$4,513,478;
10.6%
Research
$5,719,714;
13.4%
Promotion
$18,497,849;
43.4%
Laurie Bryant
Reston,VA
Andrew Burtt
McLean, VA
Stephen Edwards
Washington, D.C.
Kim Holzner
Windsor, CO
Chris Hutton
Chicago, IL
Al Senosiain
Coconut Creek, FL
Don Gurtner
Fremont
Dean Black
Somers
Will Frazee
Emerson
4
Importer
Importer
Importer
Importer
Importer
Importer
IN
IA
IA

Nutrition Research
The “Beef in an Optimal Lean Diet (BOLD) study: Effects on lipids,
lipoproteins, and apolipoproteins” manuscript was published in the
January 2012 issue of the American Journal of Clinical Nutrition
(AJCN), a top-tier, peer-reviewed nutrition science journal, known as
one of the 100 most influential journals in biology and medicine.
The BOLD study, conducted by Penny Kris-Etherton, PhD, RD, and
her team at The Pennsylvania State University, provides evidence that
the inclusion of lean beef as part of a heart-healthy diet is as effective in
lowering heart disease risk as the DASH (Dietary Approaches to Stop
Hypertension) diet — the most recommended heart-healthy diet.
Research
The BOLD study manuscript on the AJCN website was downloaded
nearly 18,000 times — double that of similar studies —
demonstrating the impact of the checkoff-funded research study.
Product Enhancement
An important component of this effort is benchmarking and tracking
attributes of beef that contribute to overall quality and palatability
as determined by tenderness, juiciness and flavor. Tenderness is also
a critically important economic factor, since consumers may pay a
premium for guaranteed‐tender meat products. With funding from
the beef checkoff, the industry has tracked beef tenderness for 20 years
through a series of four National Beef Tenderness Surveys. In 2010,
the latest tenderness survey was conducted, and despite the increased
prevalence of round cuts in the marketplace and less stable aging times,
most steaks evaluated in the 2010 survey were considered tender.
Beef Safety
The 10th anniversary of the Beef Industry Safety Summit, funded in
part by the beef checkoff, is considered the premier beef safety event
in the country, with more than 230 representatives from all sectors of
the beef supply chain attending. The event featured a special session to
reflect on the pledge the beef industry made 10 years ago committing
to reducing E. coli O157:H7. A new pledge was signed in 2012 to
recommit to reducing the presence of any foodborne pathogens in beef.
Market Research
Checkoff market research has established an annual tracking survey
— the Consumer Image Index (CII) — to measure consumers’
perceptions of beef and the beef industry. The 2012 CII found
perceptions about beef to be more positive than perceptions about
the way cattle are raised. The size of this gap will provide an ongoing
measure of the effects of communications and issues management
programs designed around beef production.
Kent Pruismann
Rock Valley
Danny Herrmann
Dodge City
Brittany Howell
La Crosse
Steve Irsik
Ingalls
Stacy McClintock
Soldier
Larry Oltjen
Robinson
Perry Owens
Minneapolis
Julianna Jepson
Franklin
Daniel Smith
Stamping Ground
IA
KS
KS
KS
KS
KS
KS
KY
KY
2012 Beef Board Annual Report
5

Promotion
Consumer Advertising
With a spotlight on beef’s delicious lean cuts, the FY 2012 beef
checkoff “Profiles” advertising campaign worked to educate
consumers on the healthfulness of beef while reinforcing consumers’
passion for the product.
The checkoff advertising campaign appeared in 26 national
magazines, including Women’s Day, Parenting, Food Network
Magazine and Men’s Health, and on satellite radio throughout the
summer, working to shift consumer perceptions about beef in a
positive way. Data from the Annual Advertising Tracking Study
showed the power of the messaging with results of a 15 to 20
percent increase in the positive perceptions of beef.
The checkoff’s Facebook advertising campaign proved to be a huge
success, generating more than 334,000 new fans on the “Beef. It’s
What’s For Dinner.” page, who engaged with the beef checkoff by
sharing, linking and commenting a total of 701,222 times.
The consumer advertising program also secured more than
$1 million worth of free media space to bring the concept of
family farms to life for consumers. These full-page “advertorials”
appeared in popular consumer publications such as
Sports Illustrated, Cooking Light and Redbook.
Foodservice
Steak Verrine, one of the recipes featured in the foodservice
BEEFlexible advertising campaign, ranked #1 among Flavor &
the Menu readers according to the publication’s Signet AdEffect
Study. Food Arts magazine recognized the ad for its outstanding
readership response measured through face-to-face interviews with
a national sample of readers. The 2012 BEEFlexible campaign
generated significant leads through the new foodservice “Idea
Bank,” one of the most requested pages on BeefFoodservice.com.
More than 30 leading research and development chefs from
nationally recognized companies — including Applebee’s,
Whole Foods Markets, HEB, Tyson and Cargill — attended the
“beef-immersion” course at the Culinary Institute of America
at Greystone. Chefs received training in culinary innovation,
butchering techniques and cooking with alternative beef
cuts. Current industry issues such as product sustainability,
environmental stewardship and safety were also discussed.
Genevieve Lyons
Church Point
Andy Salinas
Marion
Larry Echols
Gap Mills, WV
Paul Kent
Mora
John Schafer
Buffalo Lake
Mike McCormick
Union Church
Brenda Black
Deepwater
Kevin Frankenbach
Hannibal
Howard Hardecke
Springfield
6
LA
MI
Mid-Atlantic
MN
MN
MS
MO
MO
MO

Retail
Food City and the beef checkoff introduced four American Heart
Association (AHA)-certified extra-lean beef cuts that meet the
AHA criteria for saturated fat and cholesterol. Ninety-four Food
City retail stores in Kentucky, Virginia and Tennessee displayed the
powerful Heart-Check mark on fresh beef packages, promoting beef’s
role in a healthy diet and driving nutrition-conscious shoppers to the
meat case.
A refreshed version of BeefRetail.org was launched to make it easier
for retailers to access information to support beef sales at the retail
meat case, and as a resource for market intelligence, shopper trends
and more.
New Product & Culinary Initiatives
Convenient Fresh Beef provides consumers with a variety of fresh
and convenient beef product ideas, which help make beef a “fast
food” by allowing consumers to have a delicious fresh beef meal
in less time than it would take using standard cooking methods.
Beef will be sold either in “starter kits” with seasoning packets or in
special microwave packaging.
Promotion
The checkoff partnered with Garret Foods to launch three new
hand-held products this summer: Beefy Queso Bites, Philly Steak
Bites and Reuben Bites. These products are great for on-the-go
consumers or as appetizers “at-home” or at casual theme restaurants.
The checkoff’s Culinary Innovations Team developed over 15 new
recipes responding to culinary trends and popular ethnic flavors.
These new recipes turn simple ground beef and top sirloin steak into
chef-caliber dishes and can be found on BeefItsWhatsForDinner.com.
Veal
To date, more than 1 million people have read how chefs across the
country are inspired to create fresh veal dishes.Veal breast was the
spotlight ingredient in Food Arts magazine’s “Mystery Basket,” a
feature that provides three chefs with a box of mystery ingredients
and challenges them to create an innovative dish. A National
Culinary Review article titled, “Veal’s the Real Deal,” showcased
interviews with top corporate chefs, including Bravo/Brio Restaurant
Group and Fleming’s Prime Steakhouse. “Veal Made Easy” was launched
on Twitter and Facebook and reached over 1,000 “likes.”
Leon Kreisler
Salem
Leo McDonnell
Columbus
Linda Nielsen
Nashua
Lyle Peterson
Hathaway
Al Davis
Hyannis
Kristy Lage
Arthur
Judy Reece
Valentine
Doug Temme
Wayne
Sherry Vinton
Whitman
MO
MT
MT
MT
NE
NE
NE
NE
NE
2012 Beef Board Annual Report
7

Consumer Information
Public Relations
Your public relations program is the good news engine for beef.
With materials such as monthly media pitches, fact sheets,
delicious recipes, social media and online engagement, positive
beef information is spread across the entire country. In FY 2012,
the national consumer public relations program generated more
than 2.7 billion media impressions — the number of times
consumers may see or hear a message.
Relevant Content for Media and Consumers
Consumers increasingly turn to media and online resources for
food inspiration and education. Through the “Beef. It’s What’s
For Dinner.” social media channels — Facebook (with more
than half a million fans), Twitter, Beef So Simple and blogger
outreach — the checkoff drives content that helps maintain
BeefItsWhatsForDinner.com as a top-ranked page on Google.
From the Wall Street Journal to Food Network Magazine, there
is no shortage of publications looking to the checkoff for
recipe inspiration, preparation techniques and cooking tips.
The checkoff held a deskside tour in New York City, meeting
with more than 10 publications, including Food Network
Magazine, Every Day with Rachael Ray and Family Circle, to
re-emphasize the checkoff’s role as an expert resource and
perform recipe demonstrations.
National Beef Cook-Off
The National Beef Cook-Off gained nationwide exposure with a
live segment on “Good Company” featuring Chef Jason Roberts.
The segment showcased four beef dishes, and Roberts spoke
about why he loves beef and how to cut and prepare it.
This television component of the “Fabulous Food Show”
sponsorship created awareness and additional
media through the Cook-Off’s endorsement
by Chef Roberts.
Retail recipe promotions in nearly 90
grocery stores also created awareness of
the National Beef Cook-Off. And, the
promotion paid off in beef sales. In
HAV, Inc. stores, pound sales of top
sirloin increased 65 percent during
this promotion as compared to a
year ago.
Chef Jason Roberts
David Wright
Neligh
Wesley Grau
Grady
Tamara Ogilvie
Silver City
Patty Bikowsky
Madison
E.B. Harris
Warrenton
Woody Barth
Solen
Pat Becker
Selfridge
Jane Clifford
Starksboro, VT
Pete Guglielmino
Kettle Falls, WA
8
NE
NM
NM
NY
NC
ND
ND
Northeast
Northwest

Nutrition Public Relations
Thanks to an educational webinar, thousands of registered
dietitians and other health professionals received factual,
scientifically supported nutrition information about beef in a
heart-healthy diet. The webinar was based on the checkoff-funded
Beef in an Optimal Lean Diet (BOLD) research study. Also,
following publication of “Evolution of Lean Beef” in the journal
Meat Science, more than 9,000 registered dietitians learned how
changes made by the beef community in breeding, feeding and
trimming practices have increased access to leaner beef choices.
Two other research studies — one on protein and another on
healthy aging and nutrient-rich foods — were shared with more
than 4,000 subscribers of Beef Nutrition News, the beef checkoff’s
e-newsletter for health professionals.
Beef Gets BOLD
The checkoff-funded Beef in an Optimal Lean Diet (BOLD)
study has realized ongoing media attention since its publication.
The BOLD study findings were included in a feature article titled
“The Meat Manifesto” in Men’s Fitness as well as mentions in
Shape, Reuters, FoxNews.com and WebMD.
As part of an online promotion of the study’s results, five
consumer nutrition blogs — She’s A Fit Chick, Sweet Tooth
Sweet Life, Hungry Runner Girl, Green Lite Bites and Then
Heather Said — shared with their followers the BOLD study
findings through recipes,
giveaways of The Healthy Beef
Cookbook and how the challenge
changed their preconceived
notions of beef nutrition.
The checkoff hosted its first
Facebook Q&A and Twitter
party — resulting in 647,337
impressions — to give consumers
the chance to learn more about
the BOLD study by interacting
with nutrition expert Dr. Mike
Roussell, one of the study’s lead
investigators.
Consumer Information
Davis Denman
Cortland
Terry Detrick
Oklahoma City
Brian Healey
Davis
Barbara Jacques
Shidler
Brett Morris
Ninnekah
Terry Wyatt
Hollister
Pat Venable
Klamath Falls
Joyce Bupp
Seven Valleys
Dan Kniffen
Spring Mills
OH
OK
OK
OK
OK
OK
OR
PA
PA
2012 Beef Board Annual Report 9

Industry Information
Issues and Reputation Management
A hub that addresses top beef myths, FactsAboutBeef.com launched in
July with more than 10 myths posted, including one about “Meatless
Mondays.” Along with the new site, a new Twitter handle —
@BeefFacts — was created to help drive users to answers for their
beef questions. In August, the site received 2,250 views, compared to
1,997 for the top page on ExploreBeef.org during the same time period.
This year, 26 influencers — major retailers, foodservice operators,
conservationists, chefs and health professionals — participated in
farm/ranch tours. Prior to the tour, only 42 percent of attendees gave
producers top marks on animal care; post-tour that number more than
doubled. Kansas rancher Debbie Lyons-Blythe was featured in a Girl
Scouts of the USA video series about women entrepreneurs, created by
a past tour attendee.
Beef Quality Assurance (BQA)
The 2011 National Beef Quality Audit (NBQA) had extensive
enhancements made to its design to provide the industry with direction
on factors beyond the physical characteristics of beef, including food
safety, sustainability and animal well-being. To roll out audit results,
the NBQA Executive Summary was published, a 10-minute video
created and placed on YouTube, and social media messages developed
for Facebook and Twitter. Ongoing communications efforts include
audit webinars for specific industry sectors and the release of 12 fact
sheets outlining opportunities and challenges within the sectors.
The BQA Facilities Design video was created to help
farmers, ranchers and cattle feeders better understand
how to properly design and build facilities for specific
needs. Experts such as Curt Pate and Dr. Temple
Grandin shared tips to enhance an operator’s ability to
work cattle in a low-stress environment and in a timely
manner to improve the overall experience for the
cattle and the handler. The second video, entitled
BQA Cattle Handling Tips for Cow/Calf
Producers, features Dr. Ron Gill, Curt
Pate and Dr. John Maas discussing various
production settings and cycles of a cattle
operation to better understand how
the handler and the cattle react to these
differing situations.
Danni Beer
Keldron
Linda Gilbert
Buffalo
Vaughn Meyer
Reva
Gary Sharp
Bath
Linda Crumley
Winder, GA
Craig Kesler
Newberry, SC
Eric Smith
Reform, AL
Willie Bylsma
Oakdale, CA
Ted Greidanus
Tipton, CA
10
SD
SD
SD
SD
Southeast
Southeast
Southeast
Southwest
Southwest

Northeast Beef Promotion Initiative (NEBPI)
Beef was present in a big way at the Boston Marathon. The beef
checkoff partnered with Johnnie’s Foodmaster’s 11 retail stores for a
beef promotion that included recipes and nutritional information.
Additionally, 655 sweepstakes entries vied for a grand prize of an
“I Heart Lean Beef” engraved iPod and a $200 steakhouse gift card.
During the three days leading up to the marathon, an estimated
85,000 runners and their families came to the Sports & Fitness Expo,
which provided the perfect opportunity to speak with the world’s most
elite runners about lean beef as a great source of protein. The National
Beef Ambassadors were on hand to talk with the runners and to serve
lean beef samples to the crowd. Sixteen Team BEEF members from
across the United States ran the marathon in their team jerseys.
National Beef Ambassadors
The National Beef Ambassador Program reached nearly
295,000 consumers and 3,500 youth during beef story activities
at both state and national levels, increasing the number of impressions
by 19 percent above the previous year. Additionally, 70 percent of
nearly 300 consumers surveyed agreed their opinions about beef
improved as a result of interacting with National Beef Ambassadors.
More than 6 million positive beef impressions were realized during
“Beef Story” Twitter parties that featured nutrition information,
recipes and production messages in 2012.
The National Beef Speakers Bureau exceeded its
goal for consumer impressions by reaching
10,141 meal-time decision makers and youth, an
87.8 percent improvement over prior year results.
Pre- and post-survey results indicated an 11 percent
average positive shift in beef opinions.
Industry Information
Jimmy Maxey
Fresno, CA
Manuel Rodrigues
Tipton, CA
Annalyn Settelmeyer
Gardnerville, NV
Darrel Sweet
Livermore, CA
Rob Reviere, Jr.
Ripley
Ronnie Yeargin
Greenfield
Hughes Abell
Austin
Tom Alger
Friona
Anne Anderson
Austin
Southwest Southwest Southwest Southwest
TN
TN
TX
TX
TX
2012 Beef Board Annual Report 11

Foreign Marketing
Japan on the Upswing
Once the mainstay of U.S. beef export markets, Japanese trade
peaked in 2001, reaching more than 1.1 billion pounds of U.S.
beef valued at more than $1.6 billion. Those totals declined in the
aftermath of BSE, but continue to rebound despite restrictions
that limit exports to beef from cattle 20 months of age and
younger.
In Japan, the focus has been on rebuilding consumer confidence
in U.S. beef while targeting markets that offer immediate growth
potential — the yakiniku sector, bento boxes, and variety meats
and alternative cuts for both national and regional retail stores.
As a result, U.S. beef trade with Japan has rebounded to No. 2 in
value and No. 3 in volume due to:
• Confidence levels of Japanese consumers in the quality and safety of
U.S. beef have nearly tripled over the past four years.
• Exports to Japan were up 23 percent in value on steady volumes in
the first nine months of 2012, particularly impressive when overall
U.S. beef exports were up 2 percent in value on 12 percent lower
volume.
Central/South America: Up-and-Comer for Trade
Working against a global market where beef imports are generally
down, Central and South America have emerged as top growth
markets for U.S. beef — purchasing 57.7 million pounds of U.S.
beef valued at $99.2 million, increases of 36 percent in volume
and 73 percent in value. That growth is even more astounding
when considering that it comes on the heels of significant annual
gains — more than 50 percent in volume and more than 85
percent in value — over the previous two years.
US beefconsumer perception
Would you buy US beef
70%
60%
50%
40%
30%
20%
10%
0%
22.9%
Yes!
64.1%
Yes!
2007.11 2011.12
In 2011, 64% of consumers say they will buy American beef.
Number of Japanese consumers who are willing to buy US beef is increasing.
SourceUSMEF Online Tracking Survey, 300 samples
Central/South America
U.S. Beef Exports
90
80
70
60
50
40
30
20
10
0
2007 2008 2009 2010 2011
Value in
Million $
Bruce Dopslauf
LaGrange
Leroy Ezer
Anahuac
Chuck Kiker III
Beaumont
Paul Looney, Jr.
Mineral
Jackie Means
Van Horn
Larry Pratt
Eliasville
Andrea Reed
Dodd City
Sugie Sartwelle
Sealy
Rudie Tate
Wellington
12
TX
TX
TX
TX
TX
TX
TX
TX
TX

“My beef checkoff can
help raise consumer confidence in beef.”
“Simply put, our beef checkoff promotes safe,
nutritious beef. All beef producers invest in the
checkoff — so folks like you and me decide how to
allocate these dollars to keep our product top-ofmind
with consumers,” says Ronnie Yeargin, a cowcalf
and stocker producer from Greenfield, Tenn.
The checkoff is working to build demand for
beef by educating consumers about beef’s role in
healthful diets.
My beef checkoff…reaching consumers with the
benefits of beef.
Ronnie Yeargin
Ronnie Yeargin
Yeargin Farms
Greenfield, Tenn.
Hear more from Ronnie at MyBeefCheckoff.com
or scan this QR code
Funded by the Beef Checkoff.
Paid Media
The producer communications progam continues to feature producer
testimonials with copy and video under the theme “My beef checkoff
can…”. Efforts continue to be extended regionally and in cooperation
with BQA efforts to help producers get to know their checkoff. A
new measurement tool, called Focus Point, is helping the producer
communications team measure real-time media results and make
tactical enhancements to improve effectiveness. Qualified State
Beef Councils (QSBCs) are rolling out the national ads, adding
local testimonials or using new “generic” ads available in the newly
redesigned QSBC Toolkit on MyBeefCheckoff.com.
Earned Media
The checkoff delivered more than 73,000 pieces of mail along with
daily contact with the editors and broadcasters, which resulted in
7,200 news placements. Video news packages reached beyond the
traditional 600 TV stations and are extended through Facebook,
YouTube and other online outlets to thousands of additional viewers.
Direct Communications
The checkoff website, MyBeefCheckoff.com, is designed as a one-stop
shop for producers to learn how their national beef checkoff dollars are
invested, and continues to draw a growing number of visitors, with an
estimated 80,000 unique visitors viewing more than 272,000 pages.
MyBeefCheckoff.com e-newsletters had an average open rate of
61 percent and a click-through rate of nearly 18 percent — both
measures are many times higher than industry averages.
Trade Shows
National producer communications staff, often coordinating with state
beef councils, participates in industry trade shows, including World
Dairy Expo, American Farm Bureau Federation, National Farmers
Union and Livestock Marketing Association.
producer communications
Richard Winter
Canyon
Anne Wirtz
Brenham
Laurie Munns
Snowville
Joe Guthrie
Dublin
Hank Maxey, Jr.
Chatham
Marty Andersen
New Glarus
Alvin Bartz
Shawano
Randy Geiger
Reedsville
Spencer Ellis
Lovell
TX
TX
UT
VA
VA
WI
WI
WI
WY
2012 Beef Board Annual Report 13

Cattlemen’s Beef Promotion and Research Board
Financial Statements as of September 30, 2012 and 2011
Together with Independent Auditors’ Report Thereon
Board of Directors
Cattlemen’s Beef Promotion and Research Board
Independent Auditors’ Report
We have audited the accompanying statements of assets, liabilities, and net assets — modified cash basis of the Cattlemen’s Beef Promotion
and Research Board (the Board) as of September 30, 2012 and 2011, and the related statements of revenues, expenses, and changes in
unrestricted net assets — modified cash basis for the years then ended. These financial statements are the responsibility of the Board’s
management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
As described in Note 2, these financial statements were prepared on the modified cash basis of accounting, which is a comprehensive basis of
accounting other than generally accepted accounting principles in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, and net assets of the
Board as of September 30, 2012 and 2011, and its revenues, expenses, and changes in unrestricted net assets for the years then ended, on the
basis of accounting described in Note 2.
In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2012 on our consideration of the
Board’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying
supplementary statements of assessment revenue by state — modified cash basis is presented for purposes of additional analysis and is not a
required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.
In connection with our audits, nothing came to our attention that caused us to believe the Board was not in compliance with the provisions
of the Beef Promotion and Research Act of 1985 and the Beef Promotion and Research Order (the Order) related to the use of funds
collected by the Board insofar as they relate to accounting matters. Further, in connection with our audits, nothing came to our attention
that caused us to believe the Board was not in compliance with the terms of Section 1260.149(f) of the Order, or with the terms of the
Agricultural Marketing Service Investment Policy, which describe the type of instruments in which the Board may invest, insofar as they
relate to accounting matters. However, our audits were not directed primarily toward obtaining knowledge of such noncompliance.
The report is intended solely for the information and use of the members of the Board and its management, the Audit Committee, and the
United States Department of Agriculture and is not intended to be and should not be used by anyone other than these specific parties.
Clifton Larsen Allen LLP
Greenwood Village, Colorado
November 30, 2012
14

Statements of Assets, Liabilities and Net Assets
(Modified Cash Basis, Note 2)
September 30, 2012 and 2011
Assets 2012 2011
Cash and Cash Equivalents (Note 3) $ 8,545,965 $ 4,325,154
Short-Term Investments (Note 3) 10,696,000 15,443,950
Capital Assets, net of accumulated depreciation
of $83,941 and $99,676, respectively 18,066 21,488
Other 2,252 3,407
Total Assets $ 19,262,283 $ 19,793,999
Liabilities and Net Assets
Due to State Beef Councils and Other $ 1,313 $ 1,517
Net Assets - Unrestricted (Note 5):
Designated for future expenses 10,158,245 13,044,165
Designated - Board reserve 4,350,000 4,350,000
Undesignated 4,752,725 2,398,317
19,260,970 19,792,482
Commitments and contingencies (Note 9)
Total Liabilities and Net Assets $ 19,262,283 $ 19,793,999
Statements of Revenues, Expenses and
Changes in Unrestricted Net Assets
(Modified Cash Basis, Note 2)
For The Years Ended September 30, 2012 and 2011
Revenues 2012 2011
Assessments (Note 1) $ 41,977,438 $ 41,918,289
Interest 40,812 48,640
Other 96,430 196,143
Total revenues 42,114,680 42,163,072
Expenses
Program Expenses -
Promotion 18,497,849 17,782,309
Research 5,719,714 5,732,492
Consumer Information 4,513,478 4,333,552
Industry Information 3,866,591 3,582,286
Foreign Marketing 6,129,529 5,929,362
Producer Communications 1,745,326 1,726,265
Program Evaluation 131,674 156,700
Program Development 198,499 204,923
Total program expenses 40,802,660 39,447,889
Supporting Services -
USDA Oversight 211,065 255,941
Administration (Note 4) 1,632,467 1,970,479
Total expenses 42,646,192 41,674,309
Change in net assets (531,512) 488,763
Beginning unrestricted net assets 19,792,482 19,303,719
Ending unrestricted net assets $ 19,260,970 $ 19,792,482
The accompanying notes to financial statements are an integral part of these statements.
2012 Beef Board Annual Report
15

Notes to Financial Statements
(Modified Cash Basis)
September 30, 2012 and 2011
(1) Organization and Operations
The Beef Promotion and Research Act of 1985 (the Act),
approved on December 23, 1985, by the United States
Congress, established a coordinated program of promotion and
research designed to strengthen the beef industry’s position in
the marketplace, as well as to maintain and expand domestic
and foreign markets and uses for beef and beef products.
As provided in the Act, the Secretary of the United States
Department of Agriculture (the Secretary) issued the Beef
Promotion and Research Order (the Order), effective July 18,
1986, which provides the terms and conditions for the Act’s
administration. The Cattlemen’s Beef Promotion and Research
Board (the Board), which was created and approved by the
Secretary to administer the Act, consists of 103 members who
are representatives of the cattle industry in the United States,
including importers. Board members are appointed by the
Secretary.
The program is financed by a $1 per head assessment on
domestic sales of cattle and on imported cattle, beef, and beef
products. The Board, as part of its responsibilities under the Act
and Order, may certify no more than one Qualified State Beef
Council (Council) in each state and authorize that Council to
collect such assessments. The assessments are remitted to the
Councils or the Board. The Board receives one‐half of assessment
monies from states with Councils and the Councils retain the
remainder. The Board receives all assessment revenues from
states without Councils and from imported cattle, beef, and beef
products.
Pursuant to the Act, the Board’s expenses for administration
are limited to 5% or less of projected revenues. All remaining
revenues are expended on programs related to promotion,
research and information for the beef industry. The Board
contracts with established national cattle‐ or beef‐industrygoverned
nonprofit organizations for the implementation and
conduct of these programs. Under the terms of these contracts,
the entities which receive Board contracts are subject to annual
audits and reviews.
During fiscal years 2012 and 2011, the Board reimbursed the
following industry organizations for program expenses incurred
on approved projects:
Name of Contractor 2012 2011
Meat Importers Council of America $490,239 $347,756
National Cattlemen’s
Beef Association (NCBA)
National Livestock Producers
Association
$38,040,527 $36,931,474
$35,000 —
American National CattleWomen $161,395 $80,771
The program expenses incurred by NCBA during fiscal years
2012 and 2011 included reimbursements for costs incurred
under subcontracts with the American National CattleWomen
of $408,935 and $289,208, and the U.S. Meat Export
Federation of $6,129,529 and $5,929,362, respectively.
(2) Summary of Significant Accounting Policies
Basis of Accounting
The accompanying financial statements have been prepared
on the modified cash basis of accounting. Under this method,
certain revenues are recognized when received rather than when
earned and certain expenses are recognized when paid rather
than when incurred. At September 30, 2012 and 2011, there
were assessment receivables of approximately $5,600,000 and
$6,400,000, interest receivables of approximately $16,000 and
$11,000, and accounts payable of approximately $6,200,000
and $7,300,000, respectively, which are not reflected in the
accompanying financial statements. Accounts payable relate to
appropriated expenditures and are included in the net assets
designated for future expenses in the accompanying statements
of assets, liabilities and net assets (Note 5).
As discussed in Note 1, the Board receives one‐half of the
assessment monies collected by the Councils and the remainder
is retained by the Councils. The accompanying financial
statements include only the Board’s share of assessment monies
and do not include amounts related to either revenues or
expenses of the individual Councils.
Cash, Cash Equivalents and Short‐Term Investments
For purposes of classifying investments, the Board considers
all highly liquid investments with an original maturity of three
months or less to be cash equivalents. Cash equivalents and
short‐term investments are recorded at cost.
Depreciation
Capital assets, which include equipment and leasehold
improvements, are recorded at cost. Depreciation is computed
using the straight‐line method over the estimated useful lives of
three to ten years.
Use of Estimates
The preparation of financial statements require management
to make estimates and assumptions that affect certain reported
amounts and disclosures, primarily those estimates included in
the Basis of Accounting disclosure above. Accordingly, actual
results could differ from those estimates.
(3) Cash, Cash Equivalents and Short-Term
Investments
The Secretary has provided that excess cash may be invested,
on a short‐term basis, in certificates of deposit insured by the
Federal Deposit Insurance Corporation or obligations of the
United States, U.S. Government agencies or U.S. Governmentsponsored
corporations. Cash, cash equivalents and short‐term
investments at September 30, 2012 and 2011, by investment
type, are as follows:
16

September 30, 2012:
Demand Deposit
Account
Money Market
Accounts
Certificates of
Deposit
Less —
Outstanding
Checks
Cash
and Cash
Equivalents
Short-Term
Investments
Total
Carrying
Value
Total Fair
Value
$7,752,590 $ - $7,752,590 $7,752,590
3,755,634 - 3,755,634 3,755,634
- 10,696,000 10,696,000 10,690,818
(2,962,259) - (2,962,259) (2,962,259)
Totals for 2012 $8,545,965 $10,696,000 $19,241,965 $19,236,783
September 30, 2011:
Demand Deposit
Account
Certificates of
Deposit
U.S. Government
Securities
Less —
Outstanding
Checks
Cash
and Cash
Equivalents
Short-Term
Investments
Total
Carrying
Value
Total Fair
Value
$5,922,436 $ - $5,922,436 $5,922,436
- 13,942,002 13,942,002 13,922,093
- 1,501,948 1,501,948 1,500,117
(1,597,282) - (1,597,282) (1,597,282)
Totals for 2011 $4,325,154 $15,443,950 $19,769,104 $19,747,364
In accordance with the Board’s policy, the demand deposit
accounts, the money market accounts and the certificates
of deposit are insured by the Federal Deposit Insurance
Corporation and/or fully collateralized by U.S. Government
securities held at the Federal Reserve Bank in the Board’s name.
(4) Administration Expense
The Act limits expenses for the administration of the program
to 5% or less of projected revenues. Projected revenues were
$40,870,000 for 2012 and $41,000,000 for 2011. Accordingly,
the administrative expenses incurred by the Board were limited
to $2,044,000 in 2012 and $2,050,000 in 2011. Administrative
expenses incurred by the Board on the accrual basis (versus
modified cash basis amounts reflected in the accompanying
statements of revenues, expenses and changes in net assets)
were approximately $1,630,000 (4.0% of projected revenues)
in 2012 and $1,950,000 (4.8% of projected revenues) in
2011. Expressed as a percentage of actual revenues, the Board’s
administrative expenses were 3.9% in 2012 and 4.7% in 2011.
The Board has entered into an Administrative Services
Agreement with NCBA whereby NCBA agreed to provide
certain administrative services to the Board in return for
reimbursement of all direct and indirect costs related to the
provided services. During 2012 and 2011, respectively, the
Board paid NCBA approximately $58,000 and $59,000 related
to this agreement.
The Board leases office facilities and equipment from outside
third‐parties under operating leases. Payments required under
the leases were approximately $91,000 during 2012 and $97,000
during 2011. Future annual payments related to the leases are
approximately $97,000 in 2013, $100,000 in 2014, $46,000 in
2015 and $4,000 in 2016.
(5) Unrestricted Net Assets
Unrestricted net assets represent amounts currently available for
the use in the Board’s operation in accordance with the Act and
those resources invested in fixed assets. Designated net asset
balances represent tentative plans of the Board for future use of
financial resources, as follows:
Designated for Future Expenses
This balance relates to unexpended program appropriations.
Designated ‐ Board Reserve
On October 6, 2010, the Board has approved the establishment
of a reserve in the amount of $4,350,000 to be used as the Board
may deem necessary, with the approval of the Secretary.
Undesignated
As of September 30, 2012 and 2011, $4,752,725 and
$2,398,317 of the net assets had not been designated by the
Board and is available for budgeting to the various program
areas. Of these amounts, $18,066 and $21,488 represent net
assets invested in fixed assets as of September 30, 2012 and
2011, respectively.
(6) Income Tax Status
The Board has received a ruling from the Internal Revenue
Service stating that it is classified as a tax‐exempt entity that
engages in activities under the aegis of the United States
Department of Agriculture.
(7) Pension Plan
The Board provides a defined contribution plan for all of its
employees under which annual contributions are provided
based on a percentage of each employee’s salary. Contributions
required and funded by the Board were approximately $118,000
and $120,000 in 2012 and 2011, respectively.
(8) Subsequent Event
Management evaluated subsequent events through November
30, 2012, the date the audited financial statements were available
to be issued. Events or transactions occurring after September
30, 2012, but prior to November 30, 2012, that provided
additional evidence about conditions that existed at September
30, 2012 have been recognized in the financial statements for
the year ended September 30, 2012. Events or transactions
that provided evidence about conditions that did not exist at
September 30, 2012, but arose before the financial statements
were available to be issued, have not been recognized in the
financial statements for the year ended September 30, 2012.
In October 2012, the Board and the Secretary approved
$3,713,205 of the September 30, 2012 net asset balance as
designated for expenditures in 2013.
(9) Litigation
The Board is a defendant in connection with certain legal
actions. While the final outcome of these actions cannot be
determined at this time, management is of the opinion that the
outcome of such matters will not have a material effect on the
financial statements.
2012 Beef Board Annual Report 17

Supplementary Statements of Assessment Revenues By State
For the Years Ended September 30, 2012 and 2011
ASSESSMENT REVENUES (Modified Cash Basis) 2012 2011
Qualified State Beef Councils:
Alabama $ 346,952 $ 391,848
Arizona 335,717 285,322
Arkansas 475,693 476,534
California 1,921,761 1,704,276
Colorado 1,668,611 1,651,922
Delaware 6,082 4,566
Florida 317,331 315,411
Georgia 287,163 317,478
Hawaii 16,409 20,596
Idaho 798,165 789,069
Illinois 334,433 343,084
Indiana 239,238 242,663
Iowa 1,680,340 1,755,267
Kansas 3,832,633 3,878,885
Kentucky 706,724 701,259
Louisiana 189,728 163,644
Maine 13,912 13,890
Maryland 47,453 47,479
Michigan 268,879 260,357
Minnesota 660,911 713,397
Mississippi 290,594 383,118
Missouri 1,340,534 1,329,132
Montana 881,788 851,928
Nebraska 3,688,045 3,568,242
Nevada 128,037 137,399
New Jersey 4,738 4,941
New Mexico 655,304 627,241
New York 311,564 299,525
North Carolina 176,464 188,048
North Dakota 538,942 568,096
Ohio 308,475 305,767
Oklahoma 1,936,502 2,208,993
Oregon 417,904 406,192
Pennsylvania 394,712 394,303
South Carolina 80,269 89,502
South Dakota 1,538,686 1,566,257
Tennessee 453,117 456,271
Texas 5,685,045 6,197,659
Utah 293,827 262,192
Vermont 55,809 55,429
Virginia 389,340 391,475
Washington 539,116 538,513
West Virginia 98,355 84,561
Wisconsin 718,343 712,462
Wyoming 530,110 487,399
Total Qualified State Beef Councils 35,603,755 36,191,592
States Without Qualified State Beef Councils:
Alaska 133 238
Connecticut 13,041 11,486
Massachusetts 18,891 19,920
New Hampshire 15,112 15,765
Rhode Island 526 656
Total States Without Qualified State Beef Councils 47,703 48,065
Importers 6,325,980 5,678,632
Total Assessment Revenues $ 41,977,438 $ 41,918,289
See the accompanying independent auditor’s report.
18

Independent Auditors’ Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Board of Directors
Cattlemen’s Beef Promotion and Research Board
We have audited the statements of assets, liabilities, and net assets — modified cash basis of the Cattlemen’s Beef
Promotion and Research Board (the Board) as of September 30, 2012, and the related statements of revenues,
expenses, and changes in unrestricted net assets — modified cash basis for the year then ended, and have issued
our report thereon dated November 30, 2012. As described in Note 2, these financial statements were prepared on
the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted
accounting principles in the United States of America. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
Management of the Board is responsible for establishing and maintaining effective internal control over financial
reporting. In planning and performing our audit, we considered the Board’s internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control over
financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will
not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting
that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Board’s financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of
our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the members of the Board and its management, the
Audit Committee, and the United States Department of Agriculture and is not intended to be and should not be used
by anyone other than these specified parties.
Clifton Larsen Allen LLP
Greenwood Village, Colorado
November 30, 2012
2012 Beef Board Annual Report
19

Cattlemen’s Beef Board
Mission Statement
The Cattlemen’s Beef Promotion & Research Board
is dedicated to improving producer profitability,
expanding consumer demand for beef, and
strengthening beef’s position in the marketplace.
MyBeefCheckoff.com
Funded by the Beef Checkoff.
Cattlemen’s Beef Promotion and Research Board
9000 East Nichols Avenue, Suite 215 • Centennial, Colorado 80112 • Phone: 303.220.9890 • Fax: 303.220.9280