Checkoff Revenue Maximized Through Matching Funds

Checkoff Revenue Maximized Through Matching Funds

In today’s environment, where can you invest $1 and more than triple your investment?   Not the stock market.  Not gold bullion.  If you’re in the business of exporting red meat, try the U.S. Meat Export Federation (USMEF).

During the current fiscal year, for every dollar invested by the U.S. agriculture industry through Checkoff funding, USMEF has turned it into $3.13, matching it with $1.21 of federal funding (principally Market Access Program and Foreign Market Development funds), $0.07 of non-Checkoff funding (mainly USMEF membership dues) and $0.85 of third-party contributions (primarily matching funds provided by international retail and food service organizations that USMEF partners with on in-market promotional activities).

That ability to combine federal funds with Beef, Pork, Corn and Soybean Checkoff dollars and monies from international marketing partners enabled USMEF this year to generate a 213 percent return on those Checkoff contributions to support promotions and market access activities for U.S. beef, pork and lamb.

The greatest growth opportunity for U.S. red meat – and for the corn and soybean industries that provide the feed – is through the export market,” said USMEF Chairman Jon Caspers, a hog producer from Swaledale, Iowa. 

Caspers noted that over the next 10 years, pork consumption in the United States is predicted to grow 6.7 percent, or 1.3 billion pounds more in 2018 than it was last year.   By contrast, pork consumption in the rest of the world is expected to jump 20 percent.  That means that global pork consumption in 2018 would be 39.7 billion pounds more than it was in 2008.  That increase in consumption alone is nearly double the amount of all pork produced in the United States last year.

The story on the beef side is equally compelling.   U.S. beef consumption is expected to grow 5.5 percent, increasing 1.5 billion pounds between 2008 and 2018.  Beef consumption in the rest of the world is predicted to increase 15 percent, with totals for 2018 being 17.2 billion pounds higher than in 2008.

During 2008, the United States was the world’s largest pork exporter, shipping the equivalent of nearly 80,000 hogs per day overseas – or nearly 25 percent of all U.S. pork production.   Those exports accounted for $42.31 in value per hog.

While U.S. beef exports continue to rebound from the BSE-related drop in exports, the United States shipped 11.6 percent of its beef production overseas in 2008, with the value of those exports equating to $133.84 for every head of cattle slaughtered last year.   U.S. beef exports are predicted to set an all-time record of more than 3 billion pounds in 2011.

“There is no doubt that the support these Checkoff organizations have provided has had a measurable impact on the success of U.S. red meat marketing efforts overseas,” said Philip Seng, president and CEO of USMEF.   “The largest single outlet for our corn and soybean crops is livestock feed to create delicious, grain-fed beef and pork, and the global appetite for red meat is growing at a voracious pace.  USMEF’s goal is to ensure that U.S. producers are represented in those markets and U.S. products get a fair opportunity to compete.  When the playing field is level, the quality of U.S. red meat products invariably prevails.”

Looking at USMEF’s total revenue of $33.1 million for fiscal year 2008, funds from USDA (MAP and FMD) accounted for just over half (51.1 percent).   The Beef Checkoff accounted for nearly one quarter of revenue (23.1 percent), followed by the Pork Checkoff (12.2 percent), Soybean Checkoff (6.4 percent) and Corn Checkoff (3.2 percent).  The matching funds that are generated by third-party contributions from international sponsorship partners, which equaled approximately 37 percent of USMEF’s total available funds last year, are calculated separately.

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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.

For more information, contact Jim Herlihy at jherlihy@usmef.org.

USMEF complies with all equal opportunity, non-discrimination and affirmative action measures applicable to it by contract, government rule or regulation or as otherwise provided by law.

Checkoff Revenue Maximized Through Matching Funds

In today’s environment, where can you invest $1 and more than triple your investment?   Not the stock market.  Not gold bullion.  If you’re in the business of exporting red meat, try the U.S. Meat Export Federation (USMEF).

During the current fiscal year, for every dollar invested by the U.S. agriculture industry through Checkoff funding, USMEF has turned it into $3.13, matching it with $1.21 of federal funding (principally Market Access Program and Foreign Market Development funds), $0.07 of non-Checkoff funding (mainly USMEF membership dues) and $0.85 of third-party contributions (primarily matching funds provided by international retail and food service organizations that USMEF partners with on in-market promotional activities).

That ability to combine federal funds with Beef, Pork, Corn and Soybean Checkoff dollars and monies from international marketing partners enabled USMEF this year to generate a 213 percent return on those Checkoff contributions to support promotions and market access activities for U.S. beef, pork and lamb.

The greatest growth opportunity for U.S. red meat – and for the corn and soybean industries that provide the feed – is through the export market,” said USMEF Chairman Jon Caspers, a hog producer from Swaledale, Iowa. 

Caspers noted that over the next 10 years, pork consumption in the United States is predicted to grow 6.7 percent, or 1.3 billion pounds more in 2018 than it was last year.   By contrast, pork consumption in the rest of the world is expected to jump 20 percent.  That means that global pork consumption in 2018 would be 39.7 billion pounds more than it was in 2008.  That increase in consumption alone is nearly double the amount of all pork produced in the United States last year.

The story on the beef side is equally compelling.   U.S. beef consumption is expected to grow 5.5 percent, increasing 1.5 billion pounds between 2008 and 2018.  Beef consumption in the rest of the world is predicted to increase 15 percent, with totals for 2018 being 17.2 billion pounds higher than in 2008.

During 2008, the United States was the world’s largest pork exporter, shipping the equivalent of nearly 80,000 hogs per day overseas – or nearly 25 percent of all U.S. pork production.   Those exports accounted for $42.31 in value per hog.

While U.S. beef exports continue to rebound from the BSE-related drop in exports, the United States shipped 11.6 percent of its beef production overseas in 2008, with the value of those exports equating to $133.84 for every head of cattle slaughtered last year.   U.S. beef exports are predicted to set an all-time record of more than 3 billion pounds in 2011.

“There is no doubt that the support these Checkoff organizations have provided has had a measurable impact on the success of U.S. red meat marketing efforts overseas,” said Philip Seng, president and CEO of USMEF.   “The largest single outlet for our corn and soybean crops is livestock feed to create delicious, grain-fed beef and pork, and the global appetite for red meat is growing at a voracious pace.  USMEF’s goal is to ensure that U.S. producers are represented in those markets and U.S. products get a fair opportunity to compete.  When the playing field is level, the quality of U.S. red meat products invariably prevails.”

Looking at USMEF’s total revenue of $33.1 million for fiscal year 2008, funds from USDA (MAP and FMD) accounted for just over half (51.1 percent).   The Beef Checkoff accounted for nearly one quarter of revenue (23.1 percent), followed by the Pork Checkoff (12.2 percent), Soybean Checkoff (6.4 percent) and Corn Checkoff (3.2 percent).  The matching funds that are generated by third-party contributions from international sponsorship partners, which equaled approximately 37 percent of USMEF’s total available funds last year, are calculated separately.

# # #

The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.

For more information, contact Jim Herlihy at jherlihy@usmef.org.

USMEF complies with all equal opportunity, non-discrimination and affirmative action measures applicable to it by contract, government rule or regulation or as otherwise provided by law.