Agricultural News
Checkoff's Impact Continues to Climb - Study Shows Industry Receives $11.91 for Every Dollar Spent
Wed, 31 Jul 2019 11:58:02 CDT
Dr. Harry Kaiser is a professor of economics at Cornell University and has been engaged over the years with the Beef Checkoff, conducting economic analyses of the program to determine the return on investment generated through its various marketing and promotional activities. Conducted every five years, the latest edition of this analysis was completed here in 2019. At the National Cattlemen's Beef Association Summer Business Meeting happening in Denver this week, Kaiser presented the findings of that analysis. He spoke with Radio Oklahoma Ag Network Farm Director Ron Hays about that research, according to which he claims beef producers have a lot to be proud of.
Using econo-metric methods combining basic statistics with data gleaned by the Cattlemen's Beef Promotion Board, Kaiser developed two separate supply and demand models representing both the domestic and foreign impact made by the Beef Checkoff. Five years ago, Kaiser found that the Checkoff's ROI was that for every dollar spent, the industry received in return approximately $11.20. This year's analysis concluded that over the past five years, that amount climbed 71 cents to an approximate total of $11.91. Compared to other Checkoff programs and marketing orders, Kaiser says that is actually quite good - in fact, nearly double what other programs typically receive.
While Kaiser's analysis was conducted from an industry-wide perspective, he says ultimately the revenue generated by the Checkoff ultimately filters back down to the producer level. Essentially, he says a producer could calculate their own return from their investment in the Checkoff by taking the total amount of their investment and multiplying it by 11.91. The sum of that equation is what a producer should be able to conclude as their own return.
"So, it's doing pretty good and it's going up- it's going in the right direction. And, not only is it going up, they're doing it with less money," Kaiser explained, when factoring in inflation and the fact that there is less beef production happening now than in previous years when the analysis was conducted. "So, they are doing very well in the face of shrinking budgets. The beef industry has a lot to be proud of."
Listen to Kaiser's full conversation with Hays about the latest ROI analysis of the Checkoff, on today's Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
