2000 News Archive
BEEF BOARD APPROVES FY2001 CHECKOFF BUDGET
DENVER, CO (August 5, 2000) - Amid reports of a sixth consecutive quarter of increasing beef demand, Cattlemen’s Beef Promotion and Research Board directors approved a $45 million checkoff budget for Fiscal Year 2001 at their summer conference August 2-5 in Denver.
Consumer spending for beef set a new record during the first half of 2000, CBB directors and other cattlemen were told earlier in the conference. According to an analysis by Cattle-Fax, an independent market research firm, demand averaged 5.2 percent higher than demand during the first half of 1999. Total beef spending in 2000 is expected to grow by more than $2.6 billion and total a record $52 billion, about $6.5 billion larger than 1997. In addition, beef’s share of total meat spending is expected to grow in 2000 by about 0.5 percent to 40.3 percent - the largest share since 1997.
“The checkoff can’t take all the credit for this increase in demand,” CBB Chairman Les McNeill said, “but if the good economy and popularity of high protein diets were the only reasons for increased demand, our competitors would be enjoying the same increases. We know from recent reports, however, that the poultry industry is facing tough times that are, attributed in part to aggressive beef promotion and new product development. So I’m convinced my checkoff dollar did it.”
The FY 2001 checkoff budget includes funding for programs to be implemented Oct. 1, 2000 to Sept. 30, 2001, including: $25,090,000 for promotion; $4,600,000 for research; $4,250,000 for consumer information; $1,770,000 for industry information; $4,675,000 for foreign market development; $1,870,000 for producer communications; $150,000 for evaluation; $120,000 for program development; $225,000 for USDA oversight; and $2,250,000 for administration. By law, Beef Board administrative expenses cannot exceed 5 percent of projected revenues. The administration budget is typically set at that 5 percent level, but actual expenditures have been less than 3.2 percent in recent years.
The Beef Promotion Operating Committee, with its 20 producer members representing the Beef Board and state beef councils, must still approve individual checkoff-funded program authorizations and contractors. The Operating Committee next meets Sept. 21-22 in Denver.
In other action, Beef Board directors received a report on the latest producer attitude survey research and ratified actions of the Board’s Executive Committee to make minor changes to the administration of the $1-per-head beef checkoff program.
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The 110-member Beef Board is appointed by the Secretary of Agriculture to oversee collection of the $1-per-head checkoff, certify state beef councils, implement provisions of the Federal Order establishing the checkoff and evaluate the effectiveness of checkoff-funded programs.