Beef Checkoff Budget Totals $40.5 Million, CBB Trims $4.8 Million

September 21, 2018 10:41 AM
 
Nearly $4.8 million was trimmed by the Cattlemen’s Beef Promotion and Research Board from proposals by seven beef checkoff contractors to meet the approximately $40.5 million budget for activities like beef promotion.

A budget of approximately $40.5 million has been sent to USDA by the Cattlemen’s Beef Promotion and Research Board (CBB) for approval in the fiscal year of 2019. The budget is for programs including beef promotion, research, consumer information, industry information, foreign marketing and producer communications.

CBB’s Operating Committee approved the budget during a meeting in Denver from Sept. 11-12 with a total of 14 “Authorization Requests” or proposals brought forward by seven contractors. Members of the committee include 10 producers from the Cattlemen’s Beef Board and 10 producers from the Federation of State Beef Councils. The fiscal year begins on October 1, 2018.

“The members of the Operating Committee listened with open minds as contractors presented their requests for funding. The committee engaged in respectful debate as they went through the funding for each request, mindful of program committee comments from summer convention,” says Beef Board Chariman Joan Ruskamp, a feedlot owner from Nebraska.

Seven checkoff contractors had budget requests totaled $45 million, but nearly $5 million had to be removed from the funding request.

“Trimming nearly $4.8 million to meet the budget of $40,521,900 was not an easy task, yet the committee remained focused on program funding that would best strengthen demand for beef,” Ruskamp adds.

Funding approved by CBB for the seven contractors is as follows:

  • National Cattlemen’s Beef Association (five proposals for $27.4 million)
  • U.S. Meat Export Federation, a subcontractor to NCBA (one proposal for $8.3 million)
  • North American Meat Institute (four proposals for $1.9 million)
  • Cattlemen’s Beef Board (one proposal for $1.7 million)
  • American Farm Bureau Foundation for Agriculture (one proposal for $700,000)
  • Meat Import Council of America (one proposal for $417,000)
  • National Livestock Producers Association (one proposal for $60,000)

Broken out by budget component, the Fiscal Year 2019 Plan of Work for the Cattlemen’s Beef Promotion and Research Board budget includes:

  • $10.5 million for promotion programs, including continuation of the checkoff’s consumer digital advertising program, as well as veal promotion
  • $9.2 million for research programs, focusing on a variety of critical issues, including pre- and post-harvest beef safety research, product quality research, human nutrition research and scientific affairs, market research, and beef and culinary innovations
  • $7.6 million for consumer information programs, including a Northeast public relations initiative; national consumer public relations, including nutrition-influencer relations and work with primary- and secondary-school curriculum directors nationwide to get accurate information about the beef industry into classrooms of today’s youth
  • $3 million for industry information programs, comprising dissemination of accurate information about the beef industry to counter misinformation from anti-beef groups and others, as well as funding for checkoff participation in a fifth annual national industrywide symposium focused on discussion and dissemination of information about antibiotic use
  • $8.3 million for foreign marketing and education in 80 countries in the following regions: ASEAN region, Caribbean, Central America/Dominican Republic, China/Hong Kong, Europe, Japan, Korea, Mexico, Middle East, Russia/Greater Russian Region, South America, Taiwan, and new markets
  • $1.7 million for producer communications, which includes investor outreach using national communications and direct communications to producers and importers about checkoff results; as well as development and utilization of a publishing strategy and platform, and a state beef council content hub.

In total the fiscal 2019 budget is $43.9 million. This includes other expenses listed as follows:

  • $227,000 for evaluation
  • $300,000 for program development
  • $800,000 for USDA oversight/CBB legal
  • $2 million for administration

The fiscal 2019 budget represents an increase of $3 million from the $40.9 million FY19 budget.

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