CBB analyzes attitudes toward and impacts of the Beef Checkoff in annual report
As part of its 2024 Impact Report, the Cattlemen’s Beef Board (CBB) published information on producer attitudes toward the checkoff, consumer behaviors at the meat counter and findings from an independent economic impact study conducted over the most recent five-year period.
Overall, the evaluation found positive attitudes and behaviors in producers and consumers alike and multiple positive economic impacts as a result of the Beef Checkoff’s demand-driving activities.
Producer attitudes
According to CBB, over one-half of the producers surveyed are happy with work being done by the Beef Checkoff, with 74 percent indicating they believe the checkoff has contributed to positive trends in consumer beef demand and 59 percent who said they trust the Beef Checkoff is being managed well.
CBB used the report to ask producers how they prefer their dollars to be invested, and the majority of those surveyed mentioned educational efforts in their answers.
Seventy-two percent noted they would like to see money go toward education about eating beef over other proteins, 65 percent said they wanted money to go to education regarding the benefits of beef and 57 percent said they would like their money to be spent on addressing misinformation spread by anti-ag groups.
Another 57 percent said they wanted their dollars to be used to influence consumer confidence in beef, 55 percent said they would like to see money go toward the advertisement and promotion of beef and 46 percent said they wanted more promotion of U.S. beef in foreign markets.
Consumer behaviors
CBB also conducted a survey to understand how consumers feel about the beef industry in general and what drives their decisions in the grocery store.
The survey found slightly more consumers – 86 percent – consider taste when choosing a protein source to take home, while 70 percent consider how their food is raised.
Of the 86 percent who indicated taste, 57 percent ranked beef as their top choice over other proteins, and of the 70 percent who consider how their food is raised, only 26 percent actively alter their shopping behavior based on sustainability claims.
CBB found animal welfare remains the top concern for consumers regarding how cattle are raised, with 27 percent citing this as a primary issue.
The survey also found people are spending more time in the grocery store following the COVID-19 pandemic, as online grocery ordering declined from 67 percent in 2020 to 59 percent in 2024.
In response to inflation, 37 percent of consumers are seeking deals and coupons more frequently, 36 percent are dining out less, 28 percent are finding more ways to use leftovers and 27 percent are stocking up or freezing food items more often.
Additionally, 52 percent of consumers indicated they use recipes at least weekly, 52 percent noted they prioritize budget-friendly options, 49 percent said they consider cooking time when purchasing groceries and 60 percent indicated they are drawn to recipes with appealing imagery.
Consumers also shared the top three reasons they plan to eat beef more often in the future are taste, more time spent grilling and because beef is quick and easy to prepare.
Return on investment study
In an effort to understand the impact of the Beef Checkoff, in terms of additional benefits and industry returns, a market simulation model was used to calculate an average return on investment (ROI).
“For this study, average ROI measured the incremental financial impact to producers and importers for each one dollar invested in national Beef Checkoff demand-driving activities,” CBB explains.
Overall, the study found the Beef Checkoff had a positive impact on beef demand in the U.S., compared to what it would have been in the checkoff’s absence.
“Had there not been any national Beef Checkoff demand-driven activities over the most recent five-year period, total domestic beef demand would have been 2.4 billion pounds lower per year than actual results,” the report reads.
The checkoff also had a positive impact on beef exports from 2019-23, with the study finding U.S. beef export demand at 372 million pounds lower per year than actual results.
Additionally, the ROI study found, without the checkoff, the price of steers would have been 7.8 percent lower per year than actual results, and checkoff-related money invested in domestic and export demand-driving activities from 2019-23 resulted in a total financial impact of $13.41 paid back to producers and importers who buy into the program.
Broader economic impacts
At the end of the five-year period analyzed in the ROI study, CBB used a macroeconomic input-output model to analyze the broader economic impacts of the Beef Checkoff on employment, labor income, value-added returns, gross domestic product (GDP) and tax revenue in 2023.
“The percentages for domestic beef demand – 8.5 percent – and U.S. beef exports – 11.5 percent – were used to calculate the national Beef Checkoff’s contribution to the incremental increase in total revenue to the beef industry,” explains CBB.
“Applying these percentages indicated the direct effect of the national Beef Checkoff added an incremental $3.3 billion to the beef industry in 2023,” CBB adds. “The 3.3 billion incremental amount was achieved by higher domestic sales volume, at 8.5 percent, and higher export volume, at 11.5 percent, due to national Beef Checkoff domestic and export demand-driving activities.”
CBB’s analysis also found the Beef Checkoff had positive indirect effects on the economy as well.
According to the report, the checkoff increased U.S. employment by almost 47,000 people, employment income by $2 billion, total value-added returns by $4.1 billion and the U.S. GDP by $9.5 billion.
In addition, the checkoff also increased tax revenue at the federal, state and local levels in 2023, amounting to $34 million in county tax revenue, $205 million in state tax revenue and $504 million in federal tax revenue, for a grand total of $743 million in total tax revenue.
Hannah Bugas is the managing editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.
