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

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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
Page 1 and 2: Funded by the Beef Checkoff. Workin
Page 3: 2012 Cattlemen’s Beef Board Leade
Page 7 and 8: Retail Food City and the beef check
Page 9 and 10: Nutrition Public Relations Thanks t
Page 11 and 12: Northeast Beef Promotion Initiative
Page 13 and 14: “My beef checkoff can help raise
Page 15 and 16: Statements of Assets, Liabilities a
Page 17 and 18: September 30, 2012: Demand Deposit
Page 19 and 20: Independent Auditors’ Report on I

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