STUDY SHOWS STRONG RETURN ON INVESTMENT FOR BEEF CHECKOFF
The most comprehensive study ever conducted about the return on investment of beef checkoff assessments shows each dollar invested between 2006 and 2013 returned about $11.20 to the beef industry. Results from the study conducted by Cornell Professor of Applied Economics and Management Harry Kaiser were presented during this week’s Cattle Industry Summer Conference in Denver.
California cattleman Ted Greindanus, chair of the checkoff’s Evaluation Committee, said the findings suggest those determining how to spend checkoff dollars are on the right track.
“We are accountable to beef producers and importers who fund the work we do with checkoff dollars, so we wanted to know how much difference we were really making in the marketplace, good or bad,” said Greindanus. “I am quite pleased at how good the news really is.”
Kaiser’s cost-benefit analysis concluded without checkoff-funded marketing between 2006 and 2013, total domestic beef demand would have totaled 15.7 billion pounds or 11.3% less than it was with checkoff programs in place. Holding all other demand drivers constant, activities funded by the Beef Board resulted in a beef demand increase of 2.1 billion pounds per year. Had the checkoff not invested in foreign market development, demand for U.S. beef exports would have been 6.4% lower.
The bottom line of Kaiser’s study is that increased demand due to checkoff-funded marketing efforts resulted in higher prices for beef producers. This translated to higher net revenue than would have otherwise been experienced.
KLA Vice President of Communications Todd Domer previews upcoming ranch field days in Comanche and Bourbon counties.