Iowa Beef Industry Council Iowa State University Econ

Iowa Beef Industry Council Iowa State University Econ Class

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

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

Current Beef Industry 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 7 th; -3% from Jan 16) 1, 160, 000 cattle on feed (4 th; -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 (9 th; +3%) 215, 000 total milk cows (12 th; +2%) 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)

Iowa Beef Industry Council • 1970 – created by Iowa law – collects 10¢ and 5¢ / head • 1974 – vote – 25¢ / 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)

Iowa State Beef Checkoff Program • Nov. 30 th - Iowa State Beef Checkoff Referendum vote • Dec. 14 th –Iowa State Beef Checkoff reinstated (IDALS certified vote) o Iowa Code Chapter 181 o IBIC worked with Treasurer, State of Iowa to establish collection procedure • March 1, 2017 – Collections begin ($1. 50/hd) • July, 2017 Administrative Rules Approved

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)

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 181 - 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.

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

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

Importers Pay $1/head or equivalent Dairy, Beef, Veal Producers Pay $1. 50/head State Beef Councils $1. 00 Iowa State Beef Checkoff 50¢ Cattlemen’s Beef Board 50¢ 10 Federation State Beef Councils 10 Operating Committee 50¢ State Programs Promoting Researching Educating Safeguarding National Programs

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

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

TOP 3 BEEF MEAL IMPORTANCE FACTORS What are three most important factors when you are deciding to eat beef either at home or at a restaurant? Total US Iowa Beef is great tasting 46% Beef is an excellent source of protein 35% Beef fits with a variety of meals 32% My family likes beef 30% Beef is part of a healthy diet 22% Beef is a good value 22% Many cuts of beef available 19% Beef is extremely safe to eat 19% Beef is raised responsibly 19% Beef is raised sustainably Beef helps build strength I trust the people that raise beef Beef enhances the social experience Source: Toluna State Dashboard January 2018 50% 42% 31% 28% 26% 31% 24% 16% 13% 15% 11% 14% 12% 9% Total US N=473; Iowa N=148 14% 9% 5% = Sig higher or lower rating at 90% CI than Total US

ATTRIBUTE AGREEMENT TOP 2 BOX AGREEMENT Total US Iowa Beef is great tasting 83% Beef is a very pleasurable eating experience 76% Beef is nutritious 75% Beef is a food that gives me strength 63% 58% Beef is my #1 protein choice 56% Beef is good for young children 56% I trust the people that raise beef 51% Beef is responsibly raised 51% Total US N=502; Iowa N=151 78% 66% 64% Beef is a good value for the money Source: Toluna State Dashboard January 2018 74% 70% Beef is part of a healthy diet Beef is raised sustainably and is nutritious 87% 64% 53% 51% 56% 60% 50% 48% = Sig higher or lower rating at 90% CI than Total US

BEEF INDUSTRY TRUST Those who trust (top 4 box) that Beef / the beef industry… Total US Iowa 32% You eat is healthy 27% Is doing everything they can to make beef safe Uses sustainable practices 25% Uses antibiotics responsibly 24% Treats animals humanely 23% Uses hormones responsibly 23% STRONG TRUST SEGMENT Top 4 box trust on 5 of 6 Statements 34% 21% 28% 25% 18% 23% 14% 17% Q 10. 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 …? Source: Toluna State Dashboard January 2018 Total US N=502; Iowa N=151 = Sig higher or lower rating at 90% CI than Total US

Beef Retail Marketing Data

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

Inspire Consumer Confidence in Beef & Protect Beef’s Image Meet our cattle farmers

FY 2016 -17 Advertising Highlights • Website: o 83, 964 sessions o 143, 310 pageviews o Content drilldown: • Best Burger Contest • Home Page • Summer Grilling • e. Newsletter: o 3, 400+ subscribers • Social Media: o 13% increase in Facebook Likes o Total Facebook reach of nearly 1. 4 million

FY 2016 -17 Advertising Highlights • Digital Advertising: o 5. 5 million impressions o 0. 17% average Click Through Rate • National average = 0. 08%

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

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

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

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

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

• Producer certification training program based on scientific research • Livestock management practices • Animal care • Keep cattle healthy • Optimum quality beef • Healthy cattle provide healthy beef!

Iowa Beef Quality Assurance • Coordinated with ISUEO Beef Specialists o Program guidance from Iowa Beef Industry Council • In-person – contact ISUEO Beef Specialists • Online – www. bqa. org; free year-round Highlights: • 2016 National Beef Quality Audit • BQA Transportation Modules • BQA Feedyard Assessment

Questions? www. iabeef. org 515 -296 -2305