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Iowa Beef Industry Council Iowa State University Econ Class

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Presentation on theme: "Iowa Beef Industry Council Iowa State University Econ Class"— Presentation transcript:

1 Iowa Beef Industry Council Iowa State University Econ Class

2 Mission Statement The Iowa Beef Industry Council is dedicated to expanding consumer demand for beef, strengthening beef’s position in the global marketplace and improving producer profitability Approved August 30, 2007

3 Iowa Beef Industry Council
Everyone pays— $1 National Beef Checkoff Program $0.50 Iowa State Beef Checkoff Program Programs Promotion Research Consumer Information Industry Information Foreign Marketing Producer Communications Chris

4 Current Beef Industry Iowa Cattle Inventory
U.S. Cattle Inventory (USDA Jan 2017) 93.6 M total cattle inventory – up 2% from Jan 16 31.2 M beef cows – up 3% from Jan 16 9.35 M dairy cows – stable from Jan 16 Iowa Cattle Inventory 3,850,000 total cattle inventory (Tied 7th; -3% from Jan 16) 1,160,000 cattle on feed (4th; -6% from Jan 16) NE (18.9%) TX (18.6%) KS (17.6%) IA (8.9%) CO (7.2%) = 71.2%; other 45 states = 28.8% 965,000 total beef cows (9th; +3%) 215,000 total milk cows (12th; +2%) Iowa has a strong cattle history we need to continue to drive demand and develop markets for our future. We have an opportunity nationally ranked among top cattle feeding states we want to maintain that position. Sources:  Department of Economics, Iowa State University; Iowa Agricultural Statistics, U.S. Department of Agriculture; 2017 Cattle Inventory Report National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA)

5 Iowa Beef Industry Council
1970 – created by Iowa law – collects 10¢ and 5¢ / head 1974 – vote – 25¢ / 5¢ / 10¢ / head 1978 – vote 1982 – vote – 50¢ 1986 – suspend the Iowa law, begin national beef checkoff of $1 /head 2016- reinstate the Iowa law $0.50/head in addition the national checkoff (Iowa state checkoff collections implementation March 1, 2017) Chris

6 Iowa State Beef Checkoff Program
Nov. 30th - Iowa State Beef Checkoff Referendum vote Dec. 14th –Iowa State Beef Checkoff reinstated (IDALS certified vote) Iowa Code Chapter 181 IBIC worked with Treasurer, State of Iowa to establish collection procedure March 1, 2017 – Collections begin ($1.50/hd) July, 2017 Administrative Rules Approved Chris – admin rules, allowed IBIC to collect on cattle out of state

7 Iowa Beef Industry Council Board of Directors
5 elected directors (at IBIC annual meeting) Two – 3-year terms Become officers 3 statutory directors Iowa Secretary of Agriculture Dean, ISU College of Agriculture Iowa Livestock Markets representative 2 Iowa Cattlemen Association (ICA) appointed directors 3-year terms These 10 members make up the Executive Committee for national and state checkoff boards 7 appointed directors with one-year terms (3 terms maximum)

8 Iowa State Beef Checkoff Governance
Executive Committee (10 member board) 5 elected producers 2 ICA appointed producers 1 Iowa LMA representative 1 Iowa Secretary of Agriculture, or designee 1 ISU Dean of Agriculture and Life Sciences, or designee Refund of $0.50/hd Iowa State Beef Checkoff Iowa Code Chapter allows request for refund by producers within 90 days cattle sold Investments $0.50/hd Iowa State Beef Checkoff Marketing & promoting beef and beef products, enhancing beef industry image; production research; expanding international trade relationships; and providing producer, consumer, youth educational opportunities; also enhancement of current checkoff programs.

9 What CAN The Checkoff Do?
Checkoff is a catalyst for change Designed to stimulate the supply chain to sell more beef and encourage consumers to buy more

10 What CAN’T the checkoff do?
No Lobbying No Unfair or Deceptive Practices No Reference to a Brand or Trade Name of ANY beef product without Board and USDA approval. No Expenditures which relate primarily to live cattle production or marketing -- must be directly related beef or beef products State dollars can be used more flexibly based on Iowa Code Chapter 181 Producer Leader

11 Promoting Researching Educating Safeguarding
Dairy, Beef, Veal Producers Pay $1.50/head Importers Pay $1/head or equivalent State Beef Councils Cattlemen’s Beef Board 50¢ 10 $1.00 Federation State Beef Councils Iowa State Beef Checkoff Operating Committee 10 50¢ 50¢ State Programs National Programs Promoting Researching Educating Safeguarding

12 Chris-The national long range plan is for consistency across all state beef councils for a larger impact. In Iowa we use the national long range plan to develop our own state specific marketing plan. Moving forward after March 1 we will have some flexibility in how we use the state dollars through the Iowa State Beef Checkoff as outlined in Chapter 181 of Iowa Code.

13 Target Audience & Market Data
Millennial parents ages 18-34 Future consumers beef and beef demand long-term Purchasing power Market intelligence data Online survey Retail scanner Focus Groups Producer Leader

14 IOWA-Key Findings Online Consumer Survey
Iowa has a greater proportion of weekly beef eaters than the Total U.S. and fewer who eat chicken, fish and plant-based every week General perceptions and production perceptions (buckets) are more positive/less negative for beef, chicken and pork in Iowa than in the Total U.S., and Iowans are more likely to keep their future consumption of these proteins ‘about the same’ Iowans rate themselves as less knowledgeable about how cattle and chickens are raised for food than the rest of the U.S. does, though their knowledge of raising hogs is somewhat higher The variables that drive the decision to eat beef are similar in Iowa as in the Total U.S., with great taste, excellent protein source, and versatility at the top. However, in Iowa, being a good value is rated as more important than in the total U.S. yet fewer Iowans give beef high marks on it When comparing beef vs. chicken Iowans are significantly less likely than the Total U.S. to: Trust people who raise chicken or to see chicken as responsibly raised Consider chicken to be strength-giving or good for young children Rate chicken as great tasting or a pleasurable experience to eat Overall concerns about raising beef are far lower in Iowa than in the Total U.S. across every aspect rated in this research, from slaughter facility sanitation to use of hormones and antibiotics, to the environmental impact among many others To encourage more beef consumption, Iowa consumers are more likely than the U.S. to want new recipes for ground beef; Iowans say they are less motivated by info on how antibiotics are use or by visits to a local farm or ranch

15 TOP 3 BEEF MEAL IMPORTANCE FACTORS
What are the three most important factors when you are deciding to eat beef either at home or at a restaurant? Total US Iowa = Sig higher or lower rating at 90% CI than Total US Source: Toluna State Dashboard January Total US N=473; Iowa N=148

16 ATTRIBUTE AGREEMENT TOP 2 BOX AGREEMENT Total US Iowa
= Sig higher or lower rating at 90% CI than Total US Source: Toluna State Dashboard January Total US N=502; Iowa N=151

17 Those who trust (top 4 box) that Beef / the beef industry…
BEEF INDUSTRY TRUST Those who trust (top 4 box) that Beef / the beef industry… Total US Iowa STRONG TRUST SEGMENT Top 4 box trust on 5 of 6 Statements 21% 17% Q10. On a scale of 0 to 10, where 0 is ‘do not trust at all’ and 10 is ‘completely trust’, how would you rate your trust that the …? = Sig higher or lower rating at 90% CI than Total US Source: Toluna State Dashboard January Total US N=502; Iowa N=151

18 Beef Retail Marketing Data
is a great resource for us to further understand the retail environment

19 State-wide billboard buy, water bottle stations to enhance image

20 IMPLAN, Digital advertising is increasingly important not only from a cost perspective but for reaching our target market audiences who are millennial consumers

21 Top U.S. Beef Export Markets
Top 3 export markets: Japan, Mexico, South Korea Exports accounted for 12.8% year-to-date goal for upcoming year is 16% 96% of the world population resides outside U.S. borders International sales added over $280 year-to-date value to fed steer Have hosted several trade teams on Iowa farms & participated in foreign trade missions Investment in U.S. MEF allows foreign market access opportunities (Jan-Sept) Japan – 236,536 metric tons (up 22% compared to 2016) ● value up 30% to $1.45 billion ● chilled beef exports up 42% to 113,347 mt, valued at $833 million (up 45 percent) Mexico – 175,885 mt (1% higher) ● value down 1% to $726.9 million South Korea – 131,774 mt (up 7%) ● value up 20% to $856.9 million ● chilled beef up 85% to 31,648 mt, valued at $283 million (up 92%) Japan – 74,411 metric tons (up 41% compared to 2016) ● value up 42% to $427.3 million ● chilled beef up 55% to 33,366 mt Mexico – 57,057 mt (17% higher) ● value up 3% to $226.8 million South Korea – 42,551 mt (up 23%) ● value up 30% to $267.5 million ● chilled beef up 78% to 8,508 mt

22 Investment in U.S. MEF allows foreign market access opportunities
(Jan-Sept) Japan – 236,536 metric tons (up 22% compared to 2016) ● value up 30% to $1.45 billion ● chilled beef exports up 42% to 113,347 mt, valued at $833 million (up 45 percent) Mexico – 175,885 mt (1% higher) ● value down 1% to $726.9 million South Korea – 131,774 mt (up 7%) ● value up 20% to $856.9 million ● chilled beef up 85% to 31,648 mt, valued at $283 million (up 92%) Japan – 74,411 metric tons (up 41% compared to 2016) ● value up 42% to $427.3 million ● chilled beef up 55% to 33,366 mt Mexico – 57,057 mt (17% higher) ● value up 3% to $226.8 million South Korea – 42,551 mt (up 23%) ● value up 30% to $267.5 million ● chilled beef up 78% to 8,508 mt

23 Investment in U.S. MEF allows foreign market access opportunities
(Jan-Sept) Japan – 236,536 metric tons (up 22% compared to 2016) ● value up 30% to $1.45 billion ● chilled beef exports up 42% to 113,347 mt, valued at $833 million (up 45 percent) Mexico – 175,885 mt (1% higher) ● value down 1% to $726.9 million South Korea – 131,774 mt (up 7%) ● value up 20% to $856.9 million ● chilled beef up 85% to 31,648 mt, valued at $283 million (up 92%) Japan – 74,411 metric tons (up 41% compared to 2016) ● value up 42% to $427.3 million ● chilled beef up 55% to 33,366 mt Mexico – 57,057 mt (17% higher) ● value up 3% to $226.8 million South Korea – 42,551 mt (up 23%) ● value up 30% to $267.5 million ● chilled beef up 78% to 8,508 mt

24 Inspire Consumer Confidence in Beef & Protect Beef’s Image Meet our cattle farmers
Series of videos featuring Iowa farmers, social media and advertising featuring farmers telling their beef story…image campaign

25 FY 2016-17 Advertising Highlights
Website: 83,964 sessions 143,310 pageviews Content drilldown: Best Burger Contest Home Page Summer Grilling eNewsletter: 3,400+ subscribers Social Media: 13% increase in Facebook Likes Total Facebook reach of nearly 1.4 million

26 FY 2016-17 Advertising Highlights
Digital Advertising: 5.5 million impressions 0.17% average Click Through Rate National average = 0.08% Forecasting – FY17-18 digital advertising, SEM, Pandora, radio, etc.

27 Foodservice 2017 Iowa’s Best Burger Contest
Smokin’ Hereford BBQ, Storm Lake Nearly 300,000 people reached through Facebook promotions Most visited page at iabeef.org State-wide media coverage including the Des Moines Register Chef Education Iowa Restaurant Association American Culinary Federation

28 Nutrition and Health Registered Dietitians
Hy-Vee Dietitian Pick of Month, Lean Beef As A First Food – 27.42% increase ground beef, top sirloin & sirloin Balance Magazine – 2 million readers 10% infants eating meat by 9 months age. 90% FE and ZN needs to come from foods at 9 months age. Health influencers – multiplier effect. "The purpose of the beef checkoff’s outreach to health professionals is to provide credentialed health professionals, like family physicians, new science-based information about the nutrition and health benefits of beef. Family physicians can have a positive influence with beef as a healthful food by making recommendations regarding beef’s role in a healthy diet to patients on a daily basis.” HV RD POM: Sales Data for promotion – lean ground beef, top sirloin and sirloin: (all HV stores 8 states) August 2017 vs ↑27.42% in Sales HV Balance Magazine ad – 900,000 copies, 2 million readers Digital – FB, social media posts TV segments and newspaper Refer to Banner – used at Dr and RD conferences. (Also state fair wellness bus)

29 Nutrition and Health Physicians & Nurses
Iowa Family Physician Conference Exhibit – 150 physicians Physician & Nurse Newsletter Ads 2,000 physicians 61,000 RN’s

30 Retail Holiday Beef Roast & Prime Rib Brochures
28,100 Perfect Prime Rib 12,800 Holiday Roast 5,550 meat thermometers (HyVee) Fareway ad – QR code Fareway TV monitors Recipe & producer videos Roast pictures FY

31 National Program Investments
Federation of State Beef Councils Northeast Beef Promotion Initiative New York Beef Council Initiatives Midwest Digital Campaign Michigan, Nebraska, Kansas, Illinois, Missouri, Iowa Consumers outside the state of Iowa account for population and maybe less connected to agriculture as well as sheer numbers of consumers compared to Iowa. Iowa is a cattle heavy state with less people so producing the food here in the beef belt while ensuring consumption extends beyond our borders are key factors in driving demand.

32 Healthy cattle provide healthy beef!
Producer certification training program based on scientific research Livestock management practices Animal care Keep cattle healthy Optimum quality beef Healthy cattle provide healthy beef! Consumers want to know their food is raised humanely and of highest quality standards. Available in person or online BQA is important as packers are requiring more documentation on animal handling techniques for market access. Consumers are demanding certain standards with their food supply.

33 Iowa Beef Quality Assurance
Coordinated with ISUEO Beef Specialists Program guidance from Iowa Beef Industry Council In-person – contact ISUEO Beef Specialists Online – free year-round Highlights: 2016 National Beef Quality Audit BQA Transportation Modules BQA Feedyard Assessment 2016 National Beef Quality Audit Steer and Heifer Audit Market Cow and Bull Audit BQA Transportation Farmer and Rancher Professional Driver BQA Feedyard Assessment Forecasting: Research

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35 Questions?


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