Arizona Beef Education A record 3,500 high school and college food and consumer science and agriculture education students were reached through programs focusing on raising cattle, food safety, nutrition, cooking methods and cut fabrication. The Beef 101 workshop at the Arizona Cattlemen’s Association’s (ACA) summer convention focused on the BOLD (Beef in an Optimal Lean Diet) study, offering evidence that eating lean beef daily, as part of an overall healthy diet, can lower cholesterol. Ten beef grants were awarded to high school culinary teachers for beef purchases to use in their classrooms. One teacher took her students to the grocery store and explained how to purchase fresh beef. Through continued support from the Kemper and Ethel Marley Foundation, the ABC maintained touch screen displays in Harmony Farm at the Phoenix Zoo, allowing the zoo’s 1.3 million annual visitors to learn about Arizona’s cattle industry and beef nutrition. The ABC also participated in the annual Boo! at the Zoo and Earth Day events. Ranch tours to Quarter Circle U Ranch and Ash Creek Ranch and Beef Day at Sahuaro Ranch allowed classroom and hands-on activities so students could experience cattle ranching in Arizona firsthand. Agriculture students from the University of Arizona participated in the country-wide “Where’s the Food Without the Farmer? Day”, talked to their peers about agriculture and reached 500 people in four hours with handouts, beef snack sticks, pecans and cheese sticks. ABC assisted with Summer Ag Institute, a week-long continuing education seminar allowing teachers to gain first-hand experience with Arizona agriculture. Beef-focused stops included Pinal Feeding Co., La Cienega Ranch, the University of Arizona Meat Lab and Willcox Livestock Auction, Inc. ABC staff attended industry events to distribute checkoff information at Cattleman’s Weekend, Gila County Sale, Arizona Cattlemen’s Association Convention, Cowpunchers, the Yavapai Calf Sale and auction barns. ABC reached 250 students at the Family, Career and Community Leaders of America (FCCLA) conference with beef culinary information and a “Name that Lean Cut” game. Arizona Beef Council Board of Directors Norman Hinz, Chair, Cattle Feeder Linda Brake, Cattle Grower Wesley Kerr, Dairyman Larry McDonald, Cattle Feeder Michael Milroy, Cattle Grower Billy Sawyer, Cattle Feeder Casey Stechnij, Dairyman Gary Thompson, Dairyman James Webb, Cattle Grower Staff Bas Aja, Executive Director Lauren Scheller, Director of Consumer Marketing and Public Relations Tiffany Hayes, Director of Consumer Education and Producer Communication Arizona Beef Council 1401 N. 24th St., Suite 4 Phoenix, AZ 85005 602-273-7163 • www.arizonabeef.org Twitter @ArizonaBeef • Facebook AZ Beef Arizona Beef Council Audited Financials 2011-2012 National Programs............................................. $354,807 Consumer Information....................................... $144,005 Arizona Beef Council Established 1971 STATE ANNUAL REPORT Dear Fellow Beef Producers: Your Arizona Beef Council was busy in FY 2012. W ith beef prices on the rise, demand steady, shrinking cowherds and the economy attempting to rebound, we continued to focus on educating consumers about the value, safety and positive health effects of the beef we raise. We know Arizona’s beef ranchers are working hard and we let consumers know that beef works hard for them. 2012 brought the celebration of Arizona’s centennial and just like it was 200 years ago, beef is a core part of the state’s economy. Americans love beef and this year brought more good news to share about beef nutrition: the BOLD (Beef in an Optimal Lean Diet) study, published in the January 2012 American Journal of Clinical Nutrition, offers evidence that eating lean beef daily, as part of an overall healthy diet, can lower cholesterol. In today’s cyber and social media-driven world where information is just a click away, credible information about beef and raising cattle must be readily available. To serve as the go-to source for information about beef in Arizona, we have revamped our website, www.ArizonaBeef.org. You will find information about beef nutri- TWENTY TWELVE tion, videos about Arizona ranchers (you might recognize some neighbors) and other up-to-date topics. With diminished resources from less checkoff dollars, we continue to spend every penny in the most efficient fashion. Our focus on engaging with students, consumers, retailers and food service providers has provided the foundation for our statewide promotion programs. Our excellent staff, Lauren Scheller, Director of Consumer Marketing and Public Relations, and Tiffany Hayes, Director of Consumer Education and Producer Communications, continues to reach beef consumers across the state. The beef council continued its strong partnership with the Arizona State Cowbelles by providing financial support for important activities including Phoenix Cooks!, the Beef Ambassador program and the National Beef Cook-Off®. We continue to join forces at events to deliver our positive message about beef - the Cowbelles are our secret weapon! I thank you, my fellow beef ranchers, board members and Arizona Cowbelles for your commitment to the beef council and its mission, and by volunteering your time, wisdom and knowledge in promoting this wonderful product we raise – beef! Linda Brake Arizona Beef Council Chairman AZ Industry Information....................................... $48,311 AZ Cowbelle Programs........................................ $17,644 Administrative Costs............................................ $11,251 Producer Communication.................................... $12,495 AZ Department of Agriculture Fees..................... $31,309 Retail & Foodservice............................................ $65,826 Arizona Advertising and Promotion The latest consumer advertising highlighted the “Profiles” campaign, showcasing lean beef and the power of protein. Advertisements were placed in Prescott Woman and the Arizona Cattlelog. Sponsoring the Arizona Dietetic Association’s annual meeting allowed ABC to reach nutritional professionals. The Arizona Beef Council (ABC) and the Arizona State Cowbelles dished up a record 1,650 servings of Flat Iron Steak with Cowboy Coffee Rub at Phoenix Cooks!, Arizona’s premier culinary event. Dave Zino, Executive Chef for the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff Program, taught two beef classes. Arizona celebrated its centennial in 2012. ABC participated in centennial events showcasing Arizona’s rich cattle history. ABC’s website, www.ArizonaBeef.org, received an updated look in 2012! The site highlights ranching in Arizona, and also provides recipes, shopping and cooking tips, and nutrition and food safety information. ABC promoted beef over the airwaves on Culinary Confessions, Phoenix’s longest continually running food and restaurant radio show. The 13-week schedule consisted of daily “beef” commercials, in-studio interviews and live remotes at local restaurants. To celebrate Earth Day, ABC utilized newspaper advertisements and high-impact digital billboards to celebrate that beef is “Good for the planet; Good for you.” History Creates BasE for Proven Checkoff Program W hen we learn from the past, we build a foundation for the future. Take the national Beef Checkoff Program, for example. The current mandatory checkoff has its roots in demand-building efforts by the beef industry that began back in 1922, when agriculture’s first checkoff effort was created in the National Live Stock and Meat Board. Adding to that foundation are state beef councils around the country, which were started as far back as the mid-1950s. The first checkoffs were voluntary and collected at processing facilities. The assessments on producers were 5 cents per train carload, and a matching 5 cents a train carload from packers on cattle, hogs and sheep – an amount that was matched by progressive processing companies that What’s In a Name? participated in the program. In 1963, the Meat Board created species divisions that would help provide focus to individual meats. That’s when the Beef Industry Council (BIC) was formed, with guidance and support from state beef councils from around the country. When the mandatory $1-per-head Beef Checkoff Program was instituted in 1986, the BIC was identified in the Beef Promotion Order as the Federation of State Beef Councils, which would help identify programs to fund and represent Qualified State Beef Councils at the national level. When the National Cattlemen’s Association merged with the Meat Board in 1996, a Federation Division was created, making the new Federation of State Beef Councils the successor to the BIC. Did You Know... • • • Third Time is a Checkoff Charm The Beef Checkoff Program passed by producers in a 1988 referendum by an almost 4-1 margin wasn’t the first beef industry effort to create a uniform national checkoff. In 1977, a program was proposed that would have assessed 2/10th of one percent of an animal’s value at slaughter to fund a top-down organization – with a minimal role for state beef councils. It was voted down by producers. In 1980, a similar proposal was overwhelmingly defeated. After that defeat, the industry went back to the drawing board to determine what kind of program producers really wanted. An extensive survey found that producers sought a program that was jointly controlled by a state and national effort; utilized existing organizations (like the BIC and United States Meat Export Because of its independent nature, the Meat Board was Federation) to conduct programs, asked in the late 1920s to help develop criteria for a without creating new promotion national beef grading system, and the U.S. Department organizations; and a program of Agriculture would base its grading program on those that used a method of collecting standards; a set amount at the time of sale In the 1970s it was found that consumers were confused The $1-per-head assessment by different names for the same cut of meat, therefore and the Beef Checkoff Program a Uniform Retail Meat Identity Standards program was were the result. Surveys concreated by the Meat Board that helped make cut names ducted on a regular basis by an more uniform nationally; independent research firm show In the 1960s and 70s, the BIC worked every year with that producers remain supportthe American National CowBelles (now the Ameriive of this effort. In the last surcan National CattleWomen) on a “Beef For Father’s Day” promotion across the country. Millions of vey conducted in July 2012, 74 consumers were reached through the campaigns; percent of producers supported A consumer boycott of red meat in the Spring of 1973 highlighted the value of a checkoff-based the beef checkoff, and eight of industry response to societal issues (and underscored the need for more resources). The industry 10 said they thought the checkoff joined forces in a “Beef Steak Strategy” through the BIC to reach out to consumers, helping educate had helped contribute to a posithem through media outlets such as The New York Times, The Wall Street Journal, Time, Newsweek, tive trend in beef demand. and NBC-TV’s The Today Show. Why do some state promotion governing bodies have boards, while others have councils or commissions? The answer is that the bodies are controlled by grassroots producers in each state, who establish all aspects of how beef promoting efforts will be run. Regardless of their name, beef promotion entities in 45 states are considered Qualified State Beef Councils, and authorized by the USDA to collect the full $1-per-head national checkoff assessment. They remit half to the Cattlemen’s Beef Board for national and international promotions, research and information programs. The other 50 cents remains under the control of the state’s board of directors for investment in qualified demand-building programs. Individual producers who get involved in all aspects of the decision-making process at both the state and national level assure grassroots control – something all beef producers can support. • While improvements have been made along the way, many of the concepts established back in 1922, with additional focus in 1963, are intact in 2012. Today, the Federation remains dedicated to supporting the work of both state beef councils and the national Beef Checkoff Program through its work in beef research, information and promotion. Getting a Grip on the Future The Checkoff It doesn’t take a crystal ball to know the beef industry has plenty of marketing changes in store over the next 50 years. If the decreasing cattle herd and changing weather patterns aren’t good enough indicators, technology and the mercurial consumer should suggest that we’re in for quite a ride. Consumer demographic and behavioral trends suggest the beef industry can expect many changes. Based on current developments we would not be surprised to see: in 2012 Today, aggressive checkoff-funded programs are reaching their target audiences with positive messages New merchandising options. about beef. These programs Households comprised of one or two persons now represent 62 percent of the total U.S. include: households. Retailers are going to need plenty of merchandising options as they reach NUTRITION RESEARCH, such out to these consumers. as the Beef in an Optimal Lean Diet (BOLD) study that Technology driving decision-making. demonstrates eating lean beef Millennials – those 80 million consumers who were born between about 1980 and every day can be good for heart health; 2000 – use social media to make many of their decisions, as well as increase their knowledge base. What kind of instant messaging will drive millennial decisions and knowledge SAFETY RESEARCH, which searches for solutions tomorrow? to safety challenges to further enhance the industry’s safety record; Ethnic shifts change the marketing landscape. HEALTH PROFESSIONAL EDUCATION, which extends Hispanics will grow from 16 to 30 percent of U.S. households from 2010 to 2050. Not scientific research about beef nutrition to the only will culinary tastes shift, but the beef industry must be able to meet the needs of country’s leading health professionals through increasingly diverse consumer palates. organizations like the Academy of Nutrition and More new beef cuts for the budget-conscious. Dietetics; The beef industry has developed several new beef cuts (Denver Cut, Flat Iron Steak) ADVERTISING, which takes advantage of consumer that have helped make steak-eating more affordable, and increased the value of the recognition of the checkoff’s “Beef. It’s What’s For carcass. Today, about half of U.S. households are at low to moderate income levels. InnoDinner” campaign through print, radio and online vation is needed to find affordable beef options for all income levels. video advertising; More convenient beef products. FOODSERVICE AND RETAIL PROMOTIONS, such as a Nearly one-third of consumers think that 40 minutes from start to table is too long to new BEEFlexible for Foodservice campaign to wait for their meals, 70 percent say that an hour is too long. In addition, 70 percent of promote the value and versatility of steak, and a women are now working, so convenience is paramount. While ground beef has been refreshed version of the BeefRetail.org website; the “fall-back” product for the time-conscious, more convenient whole muscle cuts could ISSUES MANAGEMENT, which helps protect the boost demand. industry against unfounded attacks and provides Summary accurate information about beef issues. To help As we look down the road, these and other trends stand out as particularly relevant to debunk beef myths, a FactsAboutBeef.com beef producers. Obviously, no one can predict the future; however, it makes sense for the website was created to address animal care, the beef industry to be prepared for one. environment, nutrition and safety; BEEF QUALITY ASSURANCE, where producers are encouraged to follow guidelines that encourage better beef production. Released in 2012, the 2011 National Beef Quality Audit provided industry guideposts for improving the U.S. beef supply; Expenditures INFORMATION, with booklets like Program Expenses: Basics About Beef, a full color, Promotion ..................................... $18,497,850 24-page booklet designed to help consumers get optimal Research ........................................ $5,719,714 value when buying beef; Consumer Information ..................... $4,513,478 VEAL PROMOTION, with a Facebook Industry Information ........................ $3,866,592 summer grilling photo contest Foreign Marketing ........................... $6,129,529 generating awareness of veal and a Twitter handle posting Producer Communications .............. $1,745,326 local veal specials at retail and in Producer Evaluation ............................ $131,674 restaurants; and Program Development ....................... $198,498 Fiscal Year 2012 Expenditures Total Program Expenses: ........... $40,802,661 USDA Oversight ................................. $211,064 Administration .................................. $1,632,467 *Chart shows 2012 audited numbers Total Expenses: ........................... $42,646,192 INTERNATIONAL PROMOTIONS, which are helping raise awareness of beef’s value in dozens of countries around the world.