2014 Beef Checkoff Annual Report - Page 5

$ EVERY DOLLAR INVESTED RETURNS $11.20 Advertising Creates all domestic consumer advertising –radio, print, outdoor and digital – to reinforce how beef is part of their everyday life Beef Safety Research Identifies potential risks to beef safety and develops solutions to maintain a safe beef supply for consumers Foreign Marketing Provides beef market development, promotion, research, consumer and industry information in more than 100 countries worldwide Public Relations Proactively shares positive beef messages with consumers, health professionals and other food influencers Channel Marketing Develops all promotions, training and other programs to help promote beef in restaurants and grocery stores Product Enhancement Research Discovers new ways to improve beef quality, consistency and value, including research focused on new cuts, taste, tenderness and carcass value Nutrition Research Focuses on beef’s role in human nutrition as it relates to overall health and well-being New Product Development Works with industry leaders to develop new beef products, plus shares beef recipes and cooking tips Industry Information Safeguards the image of the beef industry by responding to, and correcting, misinformation about beef and sharing the beef production story In a comprehensive economic study about the return on investments of checkoff programs funded by the Cattlemen’s Beef Board, Dr. Harry Kaiser of Cornell University concluded that the return on investments is vastly greater than the cost of the program. 6.4 11.3 15.7 PERCENT LOWER PERCENT LESS BILLION POUNDS MORE BOTTOM LINE The reduction in foreign demand for U.S. beef between 2006 and 2013, if not for the checkoff The reduction in domestic beef sales between 2006 and 2013, if not for checkoff programs The amount of additional beef sold domestically between 2006 and 2013 because of checkoff programs Your investment in the checkoff results in higher prices, which means higher net revenue for your operation Brian Sampson Nevada IA Danny Herrmann Dodge City KS Brittany Howell La Crosse KS Stacy McClintock Soldier KS Larry Oltjen Robinson KS Perry Owens Minneapolis KS Beth Patterson Yates Center KS Julianna Jepson Franklin KY 2014 Daniel Smith Stamping Ground KY Beef Board Annual Report 5