Report: Pork Checkoff pays off for pork producers

Two recent studies show majority of producers support the Checkoff program that provides a large return on investment.

Forty cents of every $100 in value of hogs sold is invested by hog producers as the Pork Checkoff and funds national and state programs in advertising, consumer information, retail and foodservice marketing, export market promotion, production improvement, science and technology, swine health, pork safety and sustainability and environmental management.

According to a 2017 study conducted and released by Harry Kaiser, the Gellert Family Professor in the Dyson School of Applied Economics and Management at Cornell University, U.S. pork producers receive a positive return on their Checkoff investment.

“It’s important to producers — those who directly fund the Pork Checkoff — to understand and quantify the value of their investments,” says Terry O’Neel, National Pork Board president and a pig farmer from Friend, Neb. “The results indicate a positive impact of all aspects of the Pork Checkoff, from conducting production — focused research to growing consumer and export demand for pork.”

The USDA requires a return on investment analysis every five years. The 2001-06 study showed an overall return of $13.80 to $1 invested, and the most previous study, released in 2012 for the time period of 2006-11, found a return of $17.40 to $1 invested.

“This analysis provides a comprehensive review of program development, and more importantly, efficiency of our Checkoff program administration,” O’Neel says. “The net return of 25 to 1 on Checkoff investments demonstrates that we are meeting producer needs in the areas that drive sustainable production and grow consumer demand.”

An economic analysis of Pork Checkoff programs is commissioned every five years by the National Pork Board. The study quantifies the returns generated by Pork Checkoff investments in research, pork promotion and producer education programs. The latest results, published in 2017, cover 2011 to 2016 programs.

The Pork Checkoff also reports findings from a study that gauges producer support of the Pork Checkoff. Since 2002, the National Pork Board surveys producers annually to gain insight about the condition of the industry, general attitudes on pig farming and their support of the Checkoff. The most recent survey of 550 pork producers, conducted Nov. 6-16, 2017, showed that for the eighth consecutive year, pig farmer support for the Checkoff has improved.

The following slide show presents some highlights from the two studies.

 

TAGS: Marketing
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