050504 Check-Off Dollars Impact the Beef Industry

Mark Huseth has been involved with the state's cattle industry for many years and, during that period, has seen good times and bad. Presently the cattle business is in one of those good times and Huseth gives some of the credit for this extended positive phase of the cattle cycle to the nationally funded beef check- off program.

Even though meat case prices for beef are at record levels, the consumer demand for beef remains strong. In fact it has grown over the past two or three years. According to this McLeod, N.D., area commercial cow-calf operator and vice president of the North Dakota Stockmen's Association, this continued high demand for beef is a result of research, promotion and education programs funded with check-off funds.

Huseth, who has also served as chairman of the N.D. Beef Commission, listed three main areas where the check-off funds have been instrumental in helping consumer demand for beef grow:

€ An educational program for beef producers - Efforts have been made over the past several years to show beef producers the need to strive for a better and more consistent product. Progress has been made on this front, and according to Huseth the theme for beef producers has become: "We want the consumer to have a great eating experience and they will come back for more."

€ A better promotion program - The check-off funds have provided the opportunity for the beef industry to do a better job of promoting their products and also funding research that has led to convenience beef products on the supermarket shelves, which when combined together have increased beef sales.

€ An educational program for consumers - Educational efforts have been aimed at consumers, highlighting the nutritional aspects of eating beef and dispelling the flawed information disseminated a few years ago that eating beef is not healthy.

The fate of the nationwide beef check-off program is now in the hands of the U.S. Supreme Court, with a decision expected by early summer, and Huseth is concerned on how the court will rule.

"With changing eating habits and varying dietary ideas, it is important that we have a means to continue these educational and research efforts," he said. "If the nationwide check-off is struck down, hopefully we will see many states institute individual state check-offs, which would continue to fund these programs."

Huseth points to the good cattle prices and the overall health of the beef industry right now, which he says from a producer's standpoint, is probably in the best shape ever. But he is quick to add that the prices need to be at that level to pay for the inputs that are needed to operate a cattle business. He expects the good cattle prices to continue through at least 2007, and that could be extended for another year or two, depending on the continued drought conditions in the western regions of the U.S.

Generally, in the past, the cattle price cycle has taken about 10 years to complete, however this current cycle isn't following traditional patterns, and Huseth predicts that maybe the traditional cattle cycle is a thing of the past.

"I really think that from now on we aren't going to see the deep valleys and high peaks in the cattle price cycle," he related. "We are still going to see ups and downs, but I think we are going to get closer to an average price."

Source: DALE HILDEBRANT, The Prairie Star: Montana Ag Newspaper

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