Beef Program Funding Approved

September 25, 2000

The Beef Promotion Operating Committee has approved a comprehensive checkoff_funded promotion, research and information program for fiscal year 2001, which begins Oct. 1, okaying a $42.2 million program as the final step in 10_month planning process that has included input from more than 1,200 producer leaders of state beef councils and others in the beef industry.

"The action taken here today is the culmination of nearly a year of planning and the result of input from hundreds of producers who volunteer to serve on industry committees," said Cattlemen’s Beef Board Chairman Les McNeill, a Panhandle, TX, cattle feeder.

"The plan for fiscal 2001 is focused on helping the industry continue to build beef demand," McNeill, who also serves as operating committee chairman, pointed out. He said demand has increased for six straight quarters, and the industry can help continue that momentum through its research, education and promotion programs.

Ten of the operating committee members are elected by and represent the Cattlemen’s Beef Board, while10 other members are selected by state beef councils to represent them. The operating committee approves checkoff program plans and contractors.

Although the plan brought to the committee was organized according to points of focus, funding must come from specific categories defined in the Beef Promotion and Research Act and Order. These funding categories include promotion, research, consumer information, industry information, foreign marketing and producer communications.

The Operating Committee approved:

--Promotion efforts totaling $25,090,000, including consumer advertising aimed at "moms" (women ages 25_54) with both convenience and nutrition messages, and promotional efforts with grocers and restaurants;

--Research totaling $4,552,500 including funding for projects aimed at improving beef safety, product satisfaction and continuation of muscle profiling efforts;

--Consumer information programs totaling $4,250,000 aimed at improving the image of beef through work with doctors and dietitians, food writers and other media;

--Industry information programs totaling $1,770,000 aimed at improving the image of the cattle industry and working to manage issues affecting the beef industry;

--Foreign marketing totaling $4,675,000, which are to be leveraged with USDA foreign marketing service funds to continue to develop new beef export markets;

--Producer communications totaling $1,870,000 to provide information to producers who pay the checkoff to help them better understand the program and program results.

Programs authorized by the committee must now be approved by USDA before work can be done. Contractors with the Cattlemen's Beef Board work on a cost recovery basis – in other words, they are reimbursed after work is done and the out_of_pocket expenses are incurred and are not allowed to make a profit from the work they do on behalf of the Cattlemen's Beef Board.

The national beef checkoff is administered by the Beef Board, a 110_member board appointed by the Secretary of Agriculture to oversee the collection of the checkoff, certify state beef councils, implement the provisions of the Federal order establishing the checkoff and evaluate the effectiveness of checkoff programs. Funds are spent in the areas of promotion, research and information to increase demand for beef and veal.