A Tough Cutting Job for the Checkoff

Members of the Operating Committee had a tough time making the cuts they needed to today to balance checkoff funding requests with anticipated checkoff collections in Fiscal 2008, which begins Oct. 1. The producer members of the committee debated for hours trying to agree on the prioritization of some 40 proposals, or “Authorization Requests” that surpassed the national checkoff’s $46.8 million national program budget for the coming year.

Motion after motion, amendment after amendment, vote after vote, the producer members went back and forth looking for ways to cut a little here, add a little there, move a little from here to there, and then start over  and do it again. In the end, CBB and Operating Committee Chairman Ken Stielow said he thought that while it was among the toughest Operating Committee meetings ever, it was also one of the best, because the committee members really went to the mat to choose a slate of programs that they believe truly will leverage producers’ checkoff dollars to the greatest extent possible in 2008.

The recommended plan of work — which still must be approved by USDA before any funds are expended — breaks down by budget category and then by individual programs approved, with contractor identified, as follows:

• Promotion — $27.8 million
  • Northeast Retail Marketing — Meat Importers Council of America (MICA) and Northeast State Beef Councils
  • Northeast Foodservice Marketing – MICA and Northeast State Beef Councils
  • Consumer Advertising – National Cattlemen’s Beef Association (NCBA)
  • Retail Marketing – NCBA
  • Foodservice Marketing – NCBA
  • New Product, Culinary Initiatives & National Beef Cook-off – NCBA and American National CattleWomen (ANCW)
  • Veal Promotion – NCBA and American Veal Association

• Research — $7.4 million – NCBA
  • Beef Safety Research
  • Product Enhancement Research
  • Nutrition Research
  • Market Research

•  Consumer Information — $6.3 million
  • Northeast Public Relations — MICA and Northeast State Beef Councils
  • Public Relations – NCBA
  • Nutrition Influencers – NCBA
  • Youth Education & Information – NCBA

• Industry Information — $2.4 million -
  • Beef & Veal Issues Management – NCBA
  • National Beef Ambassador Program – ANCW
  • Beef & Veal Quality Assurance – NCBA

• Foreign Marketing — $5.25 million — USMEF
  • Taiwan Promotional Campaign
  • ASEAN Promotional Campaign
  • Caribbean Promotional Campaign
  • Central/South America Promotional Campaign 
  • Dominican Republic Promotional Campaign
  • Europe Promotional Campaign
  • Greater China Promotional Campaign
  • Japan Promotional Campaign
  • South Korea Promotional Campaign
  • Mexico Promotional Campaign
  • Middle East Promotional Campaign
  • Russia Promotional Campaign

• Producer Communications — $2.3 million
  • Producer Outreach Using Beefmobiles — National Livestock Producers Association
  • Producer Communications — CBB

With redistribution of some dollars in specific program areas, the plan of work will also require approval of a budget amendment by both the full Beef Board and USDA. The Board approval on the amendment will be requested via mail before program expenditures can be reimbursed for Fiscal 2008.

Day Two: Debate at the OC

After a long day of presentations of about 40 proposals for FY08 checkoff funding yesterday, the 20 producer members of the Beef Promotion Operating Committee have opened debate on the proposals today. Specifically, the committee has ‘set aside’ 14 of the 40 proposals to debate at greater length today. Those address the following areas: Beefmobiles; Peer-to-Peer Producer Outreach; Nutrition & Issues Training of Industry Influencers; Consumer Advertising; Beef Safety Research; Product Enhancement Research; Nutrition Research; Market Research, National Beef Ambassador Program; Beef & Veal Quality Assurance; three Implementation proposals; and Producer Communications.

Debate this morning got under way with discussion about the Beefmobile program funded by the beef checkoff, ending in a 14-6 vote in favor of funding the program again in Fiscal 2008, at $295,000, as proposed by the National Livestock Producers Association (NLPA). A second proposal from NLPA for a $200,000 checkoff investment in a “Peer-to-Peer Producer Outreach” program that used a conference call format for sharing checkoff information with producers across the country, however, was defeated.  Discussion continues.  

Operating Committee Meeting Under Way

The action-packed September meeting of the Beef Promotion Operating Committee is just getting under way, with all producer volunteer leaders on the committee in attendance. The agenda for the two-day meeting is extensive and promises some active discussion about how to invest checkoff dollars in Fiscal 2008, which begins Oct. 1. (The agenda is posted below.)

During the day today, the Operating Committee — comprising 10 members of the Cattlemen’s Beef Board and 10 members of the Federation of State Beef Councils — will hear presentation of a total of 40 “Authorization Requests,” or program proposals for checkoff funding in the coming year. They will ask questions they have about each proposal today, then tonight determine which programs they want to “set aside” for debate during tomorrow’s meeting. And with a tight budget for FY08, a lively debate is inevitable. Stay tuned.

MEETING AGENDA
BEEF PROMOTION OPERATING COMMITTEE
TIMBERS HOTEL
DENVER, COLORADO
SEPTEMBER 19-20, 2007
 

Tuesday, September 18
 6:00 p.m. – Dinner

Wednesday, September 19
 7:00 a.m. – Breakfast
 8:00 a.m. – Meeting
 9:30 a.m. – Break

 1. Call to Order – Chairman Ken Stielow

 2. Establish a Quorum

 3. Approve Agenda

 4. Approve Minutes of May 17, 2007 and August 6, 2007 Meetings

 5. Financial Report – Neil Kayser, Secretary/Treasurer

 6. Presentation of Extension Request

 7. Presentation of Authorization Request Amendments (If any)

 8. Discuss Market Research of Consumer Perceptions of Natural Beef Products

 9. Review of Operating Committee Schedule and Procedures

 10. Presentation of FY 2008 Authorization Requests

 Noon – Lunch
 1:00 p.m. – Reconvene
 2:30 p.m. – Break
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 11. Continue Presentation of FY 2008 Authorization Requests 

 12. Presentation of FY 2008 Contract

13. Evaluation Update

14. Results of Producer Attitude Survey

6:00 p.m. – Recess for Dinner
7:00 p.m. – Reconvene

 15. Identify FY 2008 ARs which have unanimous support and ARs which need to be set aside for further discussion

 16. Action on FY 2008 ARs not set aside

 8:00 p.m. – Recess for the Evening

Thursday, September 20
 7:00 a.m. – Breakfast
 8:00 a.m. – Reconvene
 9:30 a.m. – Break

17. Revisit previous evenings meeting activities to determine whether any previously approved ARs need to be set aside

18. Action on FY 2008 Authorization Requests Continues

19. Action on FY 2008 Budget Amendment (if necessary)

20. Action on FY 2008 Contract

21. Discuss Suggestions for Improvements to Planning and Budgeting Process

22. Progress Reports (Reports are in the meeting book.  No presentations are scheduled, but there will be an opportunity to ask questions about the reports.)

23. Other Business

24. Adjourn

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MEETING AGENDA

EXECUTIVE COMMITTEE
BEEF PROMOTION AND RESEARCH BOARD
TIMBERS HOTEL
DENVER, COLORADO
September 18-20, 2007
Tuesday, September 18
3:30 p.m. – Meeting Convenes
6:00 p.m. – Dinner

 1. Call to Order and Introduction of Guests – Chairman Dave Bateman

 2. Establish a Quorum

3. Approve Agenda

4. Discuss CBB’s Policy Concerning Natural Beef Promotion and Research

Thursday, September 20
12:00 p.m. – Lunch
1:00 p.m. – Meeting Reconvenes

 5. Approve Minutes of July17, 2007 Meeting and August 6, 2007 Conference Call.

6. Financial Report – Neil Kayser, Treasurer

7. Executive Committee Subcommittee Report (if necessary)

8. Operating Committee Report—Ken Stielow

9. FY 2008 Administrative Services Agreement with NCBA

10.  Status of State Marketing Plans

11. Status of State Audit Reports

12. Brand or Trade Name References

• National Partnerships
• State Partnerships

2:30 p.m. – Break

13. Other Business

• Summer Conference Evaluations
• Future Dates and Locations for Executive Committee Meetings

a) December—Determine if meeting is needed
b) February 6, 2008—Winter Convention—Reno
c) March 19, 2008—Location TBD

14. Executive Session

15. Adjourn