C4-Lanc«tar Farming, Saturday, Saptambar 18,1993 Promotion Committee CHICAGO, HI. Concerned about erosion in the buying power of their checkoff dollars, beef pro ducer directors on the Beef Indus try Council (BIC) Promotion Committee have encouraged exploration of increasing checkoff investments. The move was in the form of a resolution made by the Promotion Committee at the National Lives tock and Meat Board Annual Meeting, held in Chicago recently. According to Clark Willing ham, promotion committee chair man, there is substantial evidence that the checkoff has been effec tive. But that effectiveness is being challenged by media infla tion straining limited checkoff dollars, as well as promotion com petition from other protein sources. .“We’ve demon strated that we have the capability to use check off dollars wisely to increase demand for beef,” said Willingham, a cattleman from Dal las, Texas. “Research shows that our promo tion and information programs return about $3.80 for every dollar invested by producers.” The national beef checkoff, which started in 1986, requires that producers remit $1 per head each time cattle are sold. These funds are used in national and state research, promo tion and information programs through vari ous organizations, including state beef councils and the Beef Industry Council. Butch Van Vcl dhuizen, a beef and dairy producer from Turner, Ore., moved adoption of the resolu tion, which was unani mously passed by the committee. He said research has established the need for more checkoff-related programs. “The beef industry isn’t close to the $lOO million in marketing programs recom mended in art analysis conducted two years ago by the marketing firm Booz, Allen & Hamilton,” Van Vel dhuizen said. “With supplies of beef and competing meats pro jected to increase sub stantially over the next several years, we must be aggressive now to keep consumer demand in line with increasing supplies.” The successful advertising placed as a result of checkoff investments is one area that’s being threatened not only by the chal lenge of competing meats, but by media inflation. According to BIC Advertising Sub committee Chairman Don Sonnier, a beef producer from Bossier City, La., spending on advertising would have to increase significantly just to keep pace with inflation.- “Just with inflation of media placements, we would need to spend $40.8 million this year in order to keep up with our advertis ing efforts of six years ago,” Son nier said. “Our advertising budget for 1993/94 year is $22.6 million. "And when you compare that to ( the poultry industry which spent $37 million in advertising in 1991/92 it’s obvious we must do more to hold our own in bat tling to keep our share of the con sumer’s protein dollar. In fact, in Louisiana the beef industry has approved an additional fifty cent voluntary checkoff above the $1 per head already being collected.” Sonnier pointed out that research has demonstrated the effectiveness of the beef indus try’s advertising efforts. A study found that consumers intend to eat beef 13 percent more often then they had intended to eat before the EXTRA HEAVY DUTY ALL-PURPOSE FEED TRAILER 11 Gauge All-NEW Metal Construction: 12% Heavier Than Competition SEWARD COLLARD Otwaco, NY (315) 784-5524 JOHN KING Box 42 Greenpark, PA 17031 Perry Co. RON REINFORD New Bethlehem, PA (814) 275-3033 BARTVILLE WELDING SHOP ■l'l i ! I I !■ I' I 1 I .1 Explores Increasing Beef advertising campaign began. Assuming these representative consumers follow through on their intent to purchase, this would gen erate a demand for an additional 1.2 billion pounds of beef. Already successful foodservice and retail promotions could also be expanded through an increased beef checkoff, according to other beef producers represented on the BIC. Larry Oltjen, a beef producer from Robinson, Kan., said part nerships being created through beef industry foodservice prog rams would be expanded and enhanced with increased funding. “We’ve created successful part nerships with Pizza Hut and Wen dy's through our checkoff efforts, but we’re just scratching the sur face," said Oltjen, subcommittee chairman. “By helping move mil lers GAYWINDS TRAILER AUKER AG PRODUCTS & EQUIP. SALES Oakland Milli, PA Keymar, MD (717) 463-2394 (301) 775-7177 TIM REINFORD Cumberland Co., PA (717) 776-3389 lectors ' lign for (owing on •hways THOMAS BACHMAN Falliton, MD (301) 836-6877 557-7529 lions of pounds of additional beef through promotions for the Steak Lover’s™ Pizza and Big Bacon Classic™, we’re creating addition al demand for beef. We'd like to be able to partner with more food service operators.” Jane Frost, a beef producer from San Jon, N.M., and chairman of the BIC Retail Subcommittee, agrees that the partnering oppor tunities that would come with increased funding would build beef demand. “This past year we offered retailers incentives to increase their beef advertising, with great success,” Frost said. “That effort yielded a $3O return on every checkoff dollar used to fund the program. It’s difficult to argue with that kind of return on investment” Meet the LVHB AgriGroup at the Fair! Have your financial questions answered by one of Lebanon Valley National Bank’s agricultural loan professional. 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