BEEF INDUSTRY LEADERS IBP AND NCBA TEAM UP TO DEVELOP NEW PRODUCTS

DENVER, Feb. 4, 1998-- Competing in the food business these days means marketing warfare. But the beef industry is prepared, and with two of the industry’s largest players joining forces, there is added reason for optimism. IBP inc., the world’s largest producer of fresh beef, and the National Cattlemen’s Beef Association (NCBA) have agreed to work together to develop some new, value-added beef products to meet consumer demand and better compete with poultry.

"IBP and NCBA share a common vision," according to Eugene D. Leman, IBP president-fresh meats. "Research has shown that consumers want a delicious beef experience in a convenient manner. By investing joint resources as well as years of expertise from the product and marketing sides, we are both committed to responding to this demand and finding new ways to add value to beef."

The partnership is significant for the future of the beef industry as it moves toward a more consumer-focused approach in an effort to stabilize beef demand by the year 2001.

"This is a great marriage between two organizations that share a vision to meet consumer demand and meet it right away," said Lee Hall, NCBA director and chairman of the New Marketing Initiatives Committee. "This kind of cooperative working relationship between segments is a perfect example of how NCBA is working as a catalyst with private industry to build demand for beef."

Work by NCBA and IBP representatives to develop new products is already underway. In fact, test marketing may begin later this year on a new retail beef item designed to help grocery stores better compete in the growing "home meal replacement" market. The new product is expected to be very competitively priced with poultry.

The two organizations bring unique capabilities to the partnership. As the world's largest producer of fresh beef, IBP has extensive reach into the foodservice and retail segments. NCBA, with a re-focused initiative is working as a catalyst towards adding value to under-utilized cuts such as the chuck and the round. Both will invest time, dollars and other resources to the project.

NCBA’s portion of New Product Development is funded by the national beef checkoff, administered by the Cattlemen's Beef Board. This 111-member board is appointed by the Secretary of Agriculture to oversee the collection of the $1-per-head checkoff, to certify state beef councils, to implement the provisions of the Federal Order establishing the checkoff and to evaluate the effectiveness of checkoff programs.

Initiated in 1898, the National Cattlemen's Beef Association is the marketing organization and trade association for America's one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington, D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation's food and fiber industry.

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