Time to Roll Up Our Sleeves

Dear Fellow Beef Producers and Importers,

I am looking forward to the 2012 Cattle Industry Annual Convention in Nashville Feb. 1-4. I hope to see many of you there and look foward to working with you to help continue creating opportunities for a bright future for our industry. I don’t think that anyone would argue with the fact that we’ve had a rather difficult year, but this convention marks tremendous opportunity for us to come together and plan for smoother times ahead. 

The good news is that our Beef Checkoff Program has remained on track throughout the industry challenges of the last year or so, and we’ve seen some terrific results for all of us who invest our hard-earned dollars into the program. Our promotion, research, education and information programs are doing as intended, keeping beef center-of-plate with consumers worldwide.

As we gather in Nashville, those of you who volunteer your service on the Cattlemen’s Beef Board and the Federation of State Beef Councils will meet jointly in checkoff committees to learn about ongoing program results for the current year, and will begin setting priorities for next year. As most of you are aware, we already know to expect tight checkoff budgets for at least the next several years, so it will be critical to focus on the most important priorities for our checkoff investments.

As individual producers and checkoff committee members, each of us must be prepared both to discuss the issues and – maybe most important – to listen and be open to others’ ideas, even if they are different from ours. As Winston Churchill once said, “Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.”

With that in mind, I suggest that we all dig deep for our courage, keeping in mind that our fellow cattle producers and importers across the country have entrusted us with their checkoff investments, and we owe them our best. And while we may be volunteers in terms of our service on checkoff boards and committees, the work we do at our convention is directly tied to the success of our personal operations, our industry – and our very ability to keep our heritage alive for our children and our grandchildren. We owe them our best, too. 

So we have a lot of work to do, but we have tremendous opportunity, too. Let’s make our fellow producers – and the future generations who are counting on us – proud of what we are building for them. I’ll look forward to working with those of you in attendance toward that goal. 

And if you can’t be on site for the convention, stay tuned right here to this MyBeefCheckoff Meeting Blog to get updates on the goings-on at the convention and to add your own comments and questions wherever you see fit.

Sincerely, 

Wesley Grau
Chairman
Cattlemen’s Beef Board

CBB Secretary/Treasurer Previews Convention

Cattlemen’s Beef Board Secretary/Treasurer Roger West of Florida previews topics up for discussion by the Beef Board at the 2012 Cattle Industry Convention. That, he said, includes important discussions about proposed changes to the CBB Bylaws, including sections addressing the Nominating Committee and term limits for elected committee position.

Listen to Roger’s comments t Southeast AgNet’s Randall Weiseman at Roger West.

No Cost to Attend Checkoff Meetings

All beef checkoff meetings are open to every person who pays the checkoff.

During the upcoming 2012 Cattle Industry Convention in Nashville, Tenn., Feb. 1-4, these meetings include meetings of the Cattlemen’s Beef Board (Wednesday, Thursday and Saturday); Federation of State Beef Councils (Thursday) and joint committee meetings (Friday).

Registration closed in December, so if you would like attend checkoff meetings only, at no cost, you will need to go to the convention registration desk when you arrive in Nashville and let them know that you need a no-charge nametag to attend checkoff-only meetings. To learn more about other meetings and activities, click here.

If you can’t attend the convention in Nashville, Feb. 1-4, or other checkoff meetings, get the latest updates here on the MyBeefCheckoff Meeting blog throughout the meeting and afterward.

Contact dhenderson@beefboard.org  if you have any questions, or post them below.

State Beef Councils Talk Checkoff Compliance

Every time a bovine animal is sold, the $1-per-head beef checkoff is due. That includes sales of a single animal to a neighbor, or even freezer beef. Compliance with payment of that assessment is monitored through audits of collecting points, advertised sales, and various other collection techniques, and state beef councils responsible for collecting that dollar are meeting today to talk about how to improve that system.

Thirty staff members for state beef councils across the country are gathered in Denver this morning to work with each other and Beef Board staff to share and come up with ideas for reducing non-compliance. And the ideas are already flowing.

Producer communications will be part of the picture, as well, as the Joint Producer Communications Committee has asked for more emphasis on “compliance messages” in the national producer communications program in Fiscal Year 2012.

The message is this: Buyer and seller are responsible for seeing that the checkoff assessment is paid on every sale. If it’s not paid now and identified later in an audit or other compliance effort, stiff penalties can be attached, on top of full back payment. Need a refresher on the rules? Go to Who Pays the Checkoff?

Committee Approves Checkoff Plan of Work

The Cattlemen’s Beef Board will invest about $39.8 million, from a total budget of about $42.1 million, into programs of beef promotion, research, consumer information,  industry information, foreign marketing and producer communications in Fiscal Year 2012, if the recommendation of the Beef Promotion Operating Committee is approved by USDA, following review by the full Beef Board.

In action concluding its two-day meeting in Denver, the Operating Committee — including 10 members of the Beef Board and 10 members of the Federation of State Beef Councils — approved checkoff funding for a total of 39 “Authorization Requests,” or proposals for checkoff funding in the fiscal year beginning Oct. 1, 2011. The committee also will request full Board approval of a budget amendment to reflect the recategorization of the FY2012 budget in accordance with the programs approved. 

National organizations that had proposals approved by the Operating Committee (and the number of proposals and dollar amounts approved) are as follows: National Cattlemen’s Beef Association (19 programs totaling $30.2 million); U.S. Meat Export Federation (13 programs totaling $6.38 million); Cattlemen’s Beef Board (one program totaling $1.8 million); American National CattleWomen (two programs totaling $483,360); Meat Importers Council of America (three programs totaling $475,000); and the National Livestock Producers Association (one program at $35,000).

Based on the grim outlook for checkoff collections in the next few years (see post below), the Operating Committee voted to leave about $1.2 million “unallocated” to lessen the extent of the blow looking forward to Fiscal Year 2013 and beyond.

Broken out by budget component, the Fiscal Year 2012 Plan of Work for the Cattlemen’s Beef Board budget includes:

• $17.8 million for promotion programs
• $5.8 million for research programs
• $4.4 million for consumer information programs
• $3.1 million for industry information programs
• $6.4 million for foreign marketing programs
• $1.8 million for producer communications

Other categories funded through the 2012 CBB budget include $225,000 for evaluation, $180,000 for program development, $250,000 for USDA oversight; and about $2 million for administration, which includes costs for Board meetings, legal fees, travel costs, office rental, supplies, equipment, and administrative staff compensation. Fiscal Year 2012 begins Oct. 1, 2011.

Tough Times Ahead

“You can’t keep buying yourself out of a drought.”

That sentiment was voiced by Texas cattlewoman and Operating Committee member Linda Joy Stovall and other producers, as this morning’s portion of the Beef Promotion Operating Committee meeting kicked off with discussion of the tremendous impact that drought is having on the beef industry, particularly in Texas and Oklahoma.

Speaking of the “upshot,” Beef Board and Operating Committee member Chuck Kiker, noted: “I think consumers are going to get a whole new appreciation of the food industry in the next 10 or 12 years, because they’ll see the effect in increase in food prices.”

Beef Board member Dan Dierschke, who ranches near Austin, Texas, in the heart of the worst drought on record, echoed those sentiments, noting that cattlemen in the area are giving up on their generations-long businesses in large numbers. It’s clearly a very sad situation.

Discussion of this issue amounted to Operating Committee members reminding themselves of the outlook for the checkoff budget down the road, and the associated importance of planning ahead for even tougher times for the checkoff, in particular, and the beef industry, in general.

The committee is now voting on Authorization Requests for checkoff funding in Fiscal Year 2012, so we’ll get you details about the plan of work for the coming year here shortly.

Talking Beef With Consumers

In the home stretch of Authorization Request presentations this afternoon, NCBA presented proposals for checkoff funding of Promotion and Consumer Information programs in Fiscal Year 2012.

In presenting a $789,811 “Nutrition Influencer Program” proposal from NCBA, nutrition information program director Julie Sodano (pictured, presenting, right) talked about the important role that the checkoff plays in distributing information about the nutritional qualities of beef to today’s consumers. Having the research in hand from checkoff-funded research programs (see below) is a start, but getting that information to consumers is critical for it to be effective.

Along the same lines, the public relations AR, supported through the Consumer Informaiton budget component, along with the nutrition influencer program, gets the good word about beef out to consumers nationwide through national press releases, magazines, desk-side visits, and the like. View the Nutrition Influencer and Public Relations proposals, and visit Consumer Information Implementation to see the proposed costs associated with managing these two programs by NCBA.

In the area of Promotion, NCBA is presenting proposals today for Consumer Advertising, New Product and Culinary Initiatives, Retail Marketing, Foodservice Marketing, and Veal Marketing and Communications. For the costs associated with implementing those promotion programs, visit Promotion Implementation.

Research at Base of Checkoff Program

Consumer insights about beef and the beef ‘eating experience’ provide critical links to all other checkoff program efforts to build consumer demand for beef. After all, if the beef industry isn’t constantly adapting to meet consumers’ changing needs, then demand will nosedive. That’s the basic tenet for checkoff investment in consumer market research, via an Authorization Requested presented by market research director John Lundeen to the Operating Committee this afternoon.

Market research director John Lundeen presented the associated $1.35 million market research “Authorization Request” for checkoff funding in Fiscal Year 2012. Tactics/research topics included in the proposal include foundational product research; channels of distribution; new product development; enhancing the beef experience; tracking through the Consumer Beef Index; beef industry image; consumer barriers to eating beef; highlighing safety successes and perceptions; and eating personality validation. For details on the proposal, up for vote by the Operating Committee tomorrow morning, visit Market Research 2012.

Also in the research arena, NCBA is presenting Authorization Requests in the amount of $940,000 for beef safety research; product enhancement research; and human nutrition research. NCBA’s “implementation” AR (covering the costs associated with managing these research programs) is available at Research Implementation.

NCBA Presents Industry Information Proposals

After a hearty beef lunch, Operating Committee members are back at it this afternoon, and have begun listening to presentations from NCBA staff of Authorization Requests in the areas of promotion, research, consumer information and industry information.

Ryan Ruppert is kicking things off with a presentation of Beef Quality Assurance Programs proposed for checkoff funding in Fiscal Year 2012. Among highlighted new or improved tactics in the plan of work for the coming year are BQA training sessions for livestock marketing representatives, aimed at getting buy-in from all segments of the industry to include responsible practices from farm to slaughter, thus resulting in higher-quality beef and strong consumer confidence in beef and beef products. In addition, the BQA staff intends to increase its coordinated advertising efforts with producer communications staff by more than 25 percent. 

All told, the BQA program proposals seeks $800,000 in checkoff funding for FY12. Among elements in the program, funded through the Beef Board’s Industry Information budget component, are tactics to increase producer use of BQA; a national residue avoidance campaign; development and refinement of BQA management protocols; and an industry education campaign to avoid animal abuse and neglect. Next on the Operating Committee agenda today is presentation of “issues and reputation management” proposals, also funded through the Industry Information component. The “implementation AR” submitted for these Industry Information programs by NCBA is available at II Implementation.

Producer Communications & More

CBB Vice President of Communications Lynn Heinze (pictured) has completed his presentation and question-and-answer session with the Operating Committee, mapping out a FY2012 Plan of Work for producer communications funded through your national Beef Checkoff Program.

The main change in the producer communications plan for the coming year, compared to that occurring in FY2011 is an increased emphasis on regional advertising, including print, radio and online, to increase checkoff messages in areas that surveys indicate are home with producers who have less understanding of how the checkoff operates on their behalf, Heinze said. That will include regional programs in the Southeast, Northeast, Northwest, and Texas, primarily.

Another change, as prescribed by a recommendation from the Joint Producer Communications Committee, includes increase focus on messages about checkoff compliance, helping producers understand that the reason the checkoff is successful is because all producers and importers must pay the $1-per-head or equivalent assessment. That, said Heinze, is based on a request from state beef councils, and from research that indicates there are still some 15 percent of producer who say they’ve never heard of the checkoff.

Following the producer communications presentation, Sherry Hill of the American National Cattlewomen, presented a plan of promotion for the National Beef Cook-Off, and Sarah Bohnenkamp, also of ANCW, now is presenting a proposal for a “Telling the Beef Story” program, including the National Beef Ambassador Program.

Coming up next are presentations from the National Livestock Producers Association for checkoff assistance in funding a national forum about animal antibiotics, and proposals from the Meat Importers Council of America for another year of the Northeast Beef Promotion Initiative, which comprises foodservice and retail promotions, as well as consumer public relations regarding beef in the heavily populated Northeast corridor of the country.

(All above proposals include implementation costs, or the cost of managing the programs, within the amount requested.)

Foreign Marketing Kicks Off Funding Meeting

The Beef Promotion Operating Committee meeting is under way in Denver this morning. As every September, when proposals for checkoff funding of programs in the coming fiscal year, this promises to be heavy on information, with a day and a half schedueld for review of a total of 58 proposals.

Today, members of the Operating Committee — 10 members of the Cattlemen’s Beef Board and 10 members of the Federation of State Beef Councils — will hear presentations on 38 “Athorization Requests,” (ARs) or proposals for checkoff funding, in the areas of promotion, research, consumer information, industry information, foreign marketing and producer communications. Another 20 “Attachment A’s” map out “next-priority” proposals in the case that additional checkoff funding is available after the committee recommends the main ARs it believes should be funded. 

No voting on the ARs will take place today — that happens tomorrow.

The total amount requested in checkoff funding for Fiscal Year 2012 is $42.2 million, compared to an available budget of $40.6 million, so not everything presented can be funded. Fiscal Year 2012 begins Oct. 1, 2011.

National beef organizations presenting proposals, and the number of proposals and dollar amount requested, are as follows:

• National Cattlemen’s Beef Association, 35 proposals for $30.41 million
• U.S. Meat Export Federation, 15 proposals for $6.75 million
• American National Cattlewomen, two proposals for $1.72 million
• Cattlemen’s Beef Board, one proposal (producer communications), for $1.8 million
• Meat Importers Council of America, four proposals for $515,000
• National Livestock Producers Association, one proposal for $35,000

First up on the presentation block today is foreign marketing, and USMEF’s Greg Hanes is currently talking to the Operating Committee about how that organization wants to manage the checkoff’s international marketing efforts in the coming year. (For the individual foreign-marketing proposals, by country, visit Countries and scroll down to the “Foreign Marketing” section.) For proposed implementation costs, or the checkoff costs associated with managing these programs, is available at Foreign Marketing Implementation.

Stay tuned….

Committee Reviews Checkoff Proposals for FY2012

With the end of the Cattlemen’s Beef Board’s fiscal year around the corner, the Beef Promotion Operating Committee will meet in Denver Sept. 19-20 to consider nearly 40 “Authorization Requests,” or proposals for checkoff funding in FY2012, which begins Oct. 1, 2011.

The Operating Committee comprises 10 members of the Cattlemen’s Beef Board and 10 reprsentatives of the Federation of State Beef Councils, and is charged with making final recommendations about what national checkoff programs to fund with the Cattlemen’s Beef Board budget.

Given ongoing budget constraints, the committee continues to contend with tough decisions about what programs use producers’ checkoff investments most effectively and efficiently to build consumer demand for beef.

For a copy of the agenda for the September meeting, or to view any of the Authorization Requests that will be considered, click on “Committees” on the upper left side of this page, and then on “Beef Promotion Operating Committee” — or go straight to the page through THIS LINK.

Getting To Know Board Members

Mike Stahly is a Beef Board member who I caught doing a farm broadcaster interview at the summer conference. Let’s learn more about him.

Mike is a 4th generation rancher. He is the past president of the South Dakota Cattlemen’s Association, past president of Central South Dakota Cattlemen’s Affiliate, past president of the South Dakota Hereford Association and county board member for the South Dakota Farm Bureau. Mike is also an Army veteran.

Mike says about working on the Beef Board, “it’s an interesting experience.” He had served on the Federation board so he felt like that kind of prepared him for the experience. For cattlemen who are considering getting involved he says, “It’s well worth it. You’ll meet people that you’ll never get to meet elsewhere, from all walks of life. I just got done eating dinner sitting beside the meat buyer for Wendy’s. Just to listen to him for a half an hour was fascinating.”

You can listen to my interview with Mike here.

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2011 Cattle Industry Summer Conference Photo Album

Getting To Know Board Members

It’s time to meet another member of the Beef Board. This time let’s talk with E.B. Harris. He attended the summer conference where he could interact with other members from around the country.

Ernest “E.B.” is a third-generation cow-calf beef producer on a family farm established in 1916 in Warrenton, NC. He is also president and owner of E. B. Harris, Inc./Auctioneers, which launched in 1977. He is responsible for the farm sales of equipment, cattle, logging equipment and real estate.

E.B. says that Beef Checkoff advertising dollars help increase beef demand which is important to him since he’s in an area where they produce more than can be consumed locally. Besides his financial investment in the Beef Checkoff he says that investing his time working on Beef Board activities is worth it. He also feels very positive about “moving forward” to get beyond some of the recent challenges within the organization and industry. To other cattle producers he says, “Get involved. If you pay that one dollar Checkoff, get involved.”

You can listen to my interview with E.B. here.

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2011 Cattle Industry Summer Conference Photo Album

Getting To Know Board Members

Let’s meet another member of the Beef Board. He’s Larry Oltjen. Like the folks you see at work in this committee meeting Larry was attending the summer conference.

Larry is a fourth-generation farmer/feeder/stockman in Brown County, Kansas. He grows about 4,000 acres of corn, soybeans and alfalfa and also runs a 260-head commercial cow herd in partnership with his father and son. In addition, he feeds out the calves and feed in various feedlots in Iowa, Nebraska and Kansas.

Larry says that he gets the feeling that everyone is ready to look forward to the future. He says his time on the Board has been important since it has allowed him to get to know people across the country. He says that if you’ve got the time it’s well worth it to attend these meetings and get involved.

You can listen to my interview with Larry here.

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2011 Cattle Industry Summer Conference Photo Album

Getting To Know Board Members

Here are Beef Board members in action during one of the summer conference committee meetings.

I visited with one of them, Chris Schluntz, Republican City, NE, out in the hall in between meetings. Chris is part of the 4th generation to farm where his great grandfather homesteaded in south central Nebraska. He farms with two brothers, an uncle and two nephews. The farm consists of a commercial cow/calf herd, a feedlot and irrigated and dryland crops.

He says serving on the Beef Board has been very educational to him. It has helped him learn how the process works and how to serve the industry by promoting beef. He’s on the Joint International Markets Committee which he says has helped his business by building demand for his product and creating new markets. He encourages any cattle producer to get involved.

You can listen to my interview with Chris here.

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2011 Cattle Industry Summer Conference Photo Album

You’re A Blessing

Polly Ruhland, Interim CEO for the Beef Board started off her report during the board meeting with a question.

I’d like to start with a question.

How many of you are BLESSED?

Look around this room, at your neighbor and across the rows. This is an incredible group of people, jam-packed with blessings.

Now, another question.

How many of you are BLESSED to be here, right here, right now, doing what you are doing?

Take another minute to look around you. Nearly everyone in this room recognizes that they are blessed to be here.

I know why.

Every person in this room has been chosen to be here. You are here for a purpose.
What is that purpose?

To lead. To imagine what could be. To make it happen.

To make decisions. Even decisions, especially decisions, that are debatable…difficult…even dumbfounding. You were chosen to do that.

The Checkoff itself is a blessing…don’t you think so too?

You can listen to Polly’s report here.

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2011 Cattle Industry Summer Conference Photo Album

Wrapping Things Up With The Chairman

I started out these posts from the Cattle Industry Summer Conference with a preview interview with Wesley Grau, newly elected Beef Board Chairman. Now we’ll close things out with a wrap up interview.

Wesley says that things went well at the meeting, “We’ve had an attitude change. We’ve had a strengthening of the industry through unification. At the same time we endeavor to remain all inclusive for every producer in the United States.” He says he looks forward to moving in a positive direction.

You can listen to my closing interview with Wesley here.

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2011 Cattle Industry Summer Conference Photo Album

History of the Beef Checkoff

During the board meeting we heard a fascinating history of the Beef Checkoff by Wayne Watkinson. I had just interviewed him a couple days ago on this very subject.

Wayne made a point of starting out by saying that contrary to some reports he did not author the first attempt at a Beef Checkoff in 1922. We’ll add a link to his slides here later because he went into some detail about how the Beef Checkoff as we know it today came into being and has evolved.

You can listen to Wayne’s historical report here.

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2011 Cattle Industry Summer Conference Photo Album

Financial Report

Within mere hours after being elected to the officer team as Secretary/Treasurer, Roger West gave the financial report during the board meeting at the Cattle Industry Summer Conference.

This morning’s meeting went very smoothly and the business of the board concluded on a very positive note.

You can listen to Roger’s financial report here.

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2011 Cattle Industry Summer Conference Photo Album