Cattle group says beef checkoff has high return on investment
PIERRE — The Beef Checkoff Program, which helps cattle producers promote beef to consumers, appears to be a successful, according to a study released last week at the Cattle Industry Summer Conference in Denver.
The study found that return on investment for the program has doubled since the last study five years ago.
The last study done on the checkoff was conducted in 2009 and looked at the previous five years of the checkoff (2003-2008). It concluded there was a return of $5.55 for every $1 invested in the beef checkoff, according to South Dakota Beef Industry Council executive director Ron Frederick.
The 2014 report, according to Frederick, looked at 2006-2013 and found a return of $11.20 for every $1 invested.
The study examined how effectively the Beef Checkoff Program helps to boost both domestic beef demand and global exports.
"Basically, the study concluded that if the beef checkoff did not exist, U.S. beef demand would have been down 11.3 percent at the end of 2013 and foreign demand for U.S. beef would have declined by 6.4 percent," Frederick said.
According to the South Dakota Beef Council, with the U.S. cow herd at its lowest since the 1950s, there are fewer checkoff dollars available. They say the study shows that beef producers are getting the "best bang for their buck" through the Beef Checkoff Program.