NCBA DIRECTORS SET DIRECTION FOR FISCAL YEAR 1999

DENVER (July 20, 1998) – The National Cattlemen’s Beef Association (NCBA) Board of Directors approved an operating budget of $64 million for the 1999 fiscal year, which begins Oct. 1.

For the first time, the complete budget, including checkoff and non-checkoff areas, was organized around strategic objectives based on outcomes. The budget was designed to reflect a commitment to the industry’s goal to stabilize beef demand by the year 2001, the long-range priorities and an effort to focus resources.

The $55.9 million checkoff portion of the NCBA budget includes $42.225 million of Beef Board funding. The Beef Promotion Operating Committee, the independent body created by law to approve individual program authorizations and contractors, meets September 9-10 in Denver to consider these and other funding proposals. Most of the remaining $13.675 million is from state beef council investment in national checkoff programs, such as promotion, information and education.

The Checkoff Division places the highest value on increasing the value of the carcass, with an emphasis on adding value to the chuck and round. Those cuts comprise about two-thirds of the carcass and are the most under-utilized cuts, resulting in a negative effect on the total carcass value. It is proposed that $25.8 million be spent in this area.

Increasing consumer confidence in beef safety is also a top priority, with $4.8 million budgeted. Work on nutrition attitudes and behavior are recommended for funding at $3.5 million.

The budget also includes $8.18 million from non-checkoff revenues that focuses on increased action in policy areas, especially in light of emerging environmental issues. This cost must be paid only with dues dollars, because according to federal law, checkoff funds cannot be used for policy issues.

Administrative costs are projected to be $3.8 million, $340,000 less than fiscal year 1998. Budgeted staff positions have decreased by 21 employees since Oct. 1, 1997.

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.