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

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
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