From staff reports A recent economic analysis of the national Beef Checkoff program found that each dollar invested positively impacted domestic beef demand and U.S. beef exports from 2019-2023. Producers and importers who paid into the program earned a return on investment of $13.41 per invested dollar.
This spring, the Beef Checkoff commissioned an independent economic analysis of the effectiveness and financial benefits of the programs demand-driving activities.
Dr. Harry M. Kaiser of Cornell University conducted the study. The study measured three program objectives: whether national Beef Checkoff’s demand-driving activities increased overall demand for beef, the benefits of those activities in terms of their incremental financial impact to beef producers and imports, and indirect macroeconomic benefits.
Current Secretary-Treasurer of the Cattlemen’s Beef Board and Chairwoman of the Beef Checkoff Evaluation Committee Cheryl DeVuyst was “extremely pleased” by the study and the return on investment.
Additionally, the study evaluated the national Beef Checkoff’s direct effects on the beef industry and its indirect effects on the U.S economy. To quantify their total revenue impact, the study used the beef demand (8.5%) and U.S. beef export (11.5%) percentages from the ROI simulation analysis. Applying these percentages, the study found that the national Beef Checkoff added an incremental $3.3 billion to the 2023 beef industry.
This direct effect had positive indirect effects on the broader U.S economy, seeing increases in: U.S employment (up 47,000 people), U.S employment income (up $2 billion), total value added to the U.S economy ($4.1 billion), and a U.S. GDP increase of near $9.5 billion.
The national Beef Checkoff also contributed to increased tax revenue: $504 million in federal, $205 million in state, and $34 million in county tax.
“While we’re pleased Beef Checkoff programs are having a positive impact, we know there’s always room for improvement,” DeVuyst said. “The CBB is dedicated to making the best possible decisions on behalf of beef producers and importers. As we head into the remainder of FY24, we’ll take what we’ve learned from this study and continue moving the needle forward.”
The study concluded that without investments in Beef Checkoff demand driving activities, there would be lower domestic beef demand, steer price, and U.S export beef demand.