Study confirms strong ROI from beef checkoff program
By Farms.com
The effectiveness of the national Beef Checkoff program in bolstering the beef market has been underscored by a new independent study conducted by Dr. Harry M. Kaiser from Cornell University.
According to his findings, for every dollar spent on the program, beef producers receive a remarkable $13.41 in return, highlighting a significant ROI that benefits various stakeholders.
Dr. Kaiser noted, “These programs tend to have very high ROIs, which is indicative of two things. One on the very positive side, they’re giving a big bang for the buck for the stakeholders." However, he also suggested that the high returns indicate an underinvestment in the program, with potential profits still unexploited.
The study assessed the effects over the past five years, particularly examining how the Beef Checkoff has influenced beef demand within the U.S. and internationally. It concluded that the program prevented an 8.5% decline in per capita beef demand that would have occurred without it.
Additionally, the analysis detailed significant economic contributions beyond direct market impacts, including enhancements to the broader U.S. economy such as nearly 47,000 new jobs, a $2 billion increase in employment income, and a substantial boost to the GDP by nearly $9.5 billion. Tax revenues also saw a significant increase, with $743 million generated in 2023 alone.
These results not only highlight the financial benefits of the Beef Checkoff but also its role in strengthening the overall agricultural sector, making a compelling case for increased investment in such programs.
Dr. Kaiser emphasized the independence of the study, ensuring that his findings remain unbiased, thus reinforcing the reliability of the results presented.