Beef Producer Attitude Study – June 2010

Prepared for

Cattlemen’s Beef BoardBy

Aspen Media and Market Research

2

Methodology• Random telephone interviews with 900

beef and dairy producers nationwide.• Sample stratified, weighted by region &

type of operation using 2007 Ag Census.• Computer-assisted telephone interviews

conducted between June 21 and 28, 2010.• Statistical margin of error ± 3.3 %-points.• Study conducted by Aspen Media &

Market Research, Boulder, Colorado.

3

Survey Objectives

• Familiarity with checkoff

• Strengths and weaknesses of checkoff

• Expectations for checkoff program

• Visibility of checkoff

• Approval of checkoff

4

Knowledge About Checkoff Remains Fairly Consistent in Past Few Years

Awareness of Checkoff

July

‘05

Jan.

‘06

June

‘06

Jan.

’07

July

‘07

Jan.

‘08

June

’08

Jan.

‘09

Jan.

’10

June

‘10

Informed 70% 73% 72% 75% 68% 71% 68% 66% 68% 73%

Very well 29 30 27 33 31 32 35 30 33 36

Somewhat 41 43 45 42 37 39 33 36 35 37

Uninformed/

Unaware

30 27 28 25 32 29 32 34 32 27

Not too well

21 19 19 16 18 17 14 15 18 16

Not at all 4 3 2 2 5 5 3 5 5 4

Unaware 5 5 7 7 9 7 15 14 9 7

(n=) (1,225) (1,225) (1,225) (1,225) (1,225) (1,225) (900) (1,200) (1,200) (900)

5

Large Segment Believe Checkoff Is Well Managed – Some Are Unsure, However

-18 20 62

-15 24 62

-14 22 64

-16 22 63

-20% 0% 20% 40% 60% 80% 100%

Jun-10

Jan-10

Jan-09

Jun-08

Disagree Unsure Agree

--I trust that the beef checkoff is being managed well--

6

Many Producers Also Believe Checkoff Helps Profitability

-20 17 63

-22 18 61

-17 14 69

-17 17 67

-20 15 65

-24 16 61

-20 19 61

-21 16 63

-40% -20% 0% 20% 40% 60% 80% 100%

Jun-10

Jan-10

Jan-09

Jun-08

Jan-08

Jul-07

Jan-07

Jun-06

Disagree Unsure Agree

--Over the years, checkoff has helped contribute to profitability of my operation--

7

Producers Continue to Believe The Checkoff Is There For Them In A Crisis

-14 13 73

-12 13 76

-10 11 80

-13 17 71

-20% 0% 20% 40% 60% 80% 100%

Jun-10

Jan-10

Jan-09

Jun-08

Disagree Unsure Agree

--If there is a crisis, I am confident the checkoff program is on my side--

8

Large Majority Continue to Believe Checkoff Has Value, Even In Down Market.

-14 8 77

-12 9 80

-13 11 75

-12 10 77

-13 9 78

-13 7 81

-14 6 80

-14 6 79

-17 5 77

-20% 0% 20% 40% 60% 80% 100%

Jun-10

Jan-08

Jul-07

Jan-07

Jun-06

Jan-06

Jan-05

Jan-04

Jan-03

Disagree Unsure Agree

--When the cattle market is down, the beef checkoff program still has value to producers--

9

Majority Continue to Believe Checkoff Allows for Representation of Viewpoints

-19 19 63

-15 17 67

-11 19 70

-15 20 66

-16 20 64

-19 21 60

-22 20 57

-20 14 66

-40% -20% 0% 20% 40% 60% 80% 100%

Jun-10

Jan-10

Jan-09

Jun-08

Jan-08

Jul-07

Jun-06

Jan-06

Disagree Unsure Agree

--Checkoff allows for representation of producers’ viewpoints--

10

Majority Believe They Can Provide Input Into Checkoff Programs, Although Many Are

Unsure

-25 22 54

-21 23 56

-25 22 53

-40% -20% 0% 20% 40% 60% 80%

June--10

Jan--08

July--07

Disagree Unsure Agree

--I could provide input into state or national checkoff programs, if I chose to--

11

Most Checkoff Programs Essential—Confidence, Misinformation, Education,

Advertising at Top of List.

30%

33%

36%

38%

39%

40%

46%

51%

51%

57%

57%

23%

25%

29%

25%

26%

23%

22%

26%

27%

15%

22%

0% 20% 40% 60% 80% 100%

Infrmng producers about results

Prgms, beef quality & consistency

New convenient beef products

More beef items on menus

Increase sales at grocery

Educational programs for children

Promote U.S. beef outside U.S.

Adv beef to consumers

Education about nutrition

Address misinformation

Programs--increase consumer confidence

Absolutely essential Essential

--How essential is it to the beef industry that the checkoff is involved in these activities--

Percent

Total

79

72

78

77

68

63

65

63

65

58

53

12

Approval Levels Similar Recently, Remain Fairly High Over Time

84

-12

80

-15

82

-12

68

-20

71

-16

70

-21

64

-24

68

-16

68

-25

66

-25

68

-19

68

-20

60

-27

69

-20

73

-18

72

-17

73

-17

71

-16

70

-15

68

-17

72

-15

74

-12

68

-14

69

-16

72

-17

-40

-20

0

20

40

60

80

100

'91 '92 '93

Sep-94

Apr-95

Dec-9

5

Aug-96

Jul-97

Jul-98

Jul-99

Jul-00

Jan-02

Jan-03

Jan-04

Jan-05

Jul-05

Jan-06

Jun-06

Jan-07

Jul-07

Jan-08

Jun-08

Jan-09

Jan-10

Jun-10

Approve Disapprove

--Approve or disapprove of the beef checkoff program?--

13

Slight Rebound in Strong Approval for Checkoff

-9%-8% 38% 34%-8%-8% 40% 29%-8%-6% 35% 33%-6%-6% 41% 33%-7%-8% 41% 31%-8%-9% 35% 33%-8%-7% 40% 30%-9%-7% 41% 30%-7%-10% 39% 34%-8%-9% 36% 36%-8%-10% 37% 36%-8%-11% 35% 35%-9%-11% 37% 32%

-11%-16% 39% 21%

-40% -20% 0% 20% 40% 60% 80%

Jun--10

Jan--10

Jan--09

Jun--08

Jan-08

Jul-07

Jan-07

Jun-06

Jan-06

Jul-05

Jan-05

Jul-04

Jan-04

Jan-03

Somewhat Disapprove Strongly Disapprove

Somewhat Approve Strongly Approve

14

Knowledge of Checkoff Affects Approval Ratings Toward It

Approval Ratings

Very

Well

Informed

Smwht

Well

Informed

Not Too

Well

Informed

Not

Informed

At All

Strongly approve 47% 31% 15% 17%

Somewhat approve 32 45 39 12

Neither 3 8 5 18

Somewhat disapprove 8 8 14 11

Strongly disapprove 9 4 12 16

Don’t know 2 4 14 26

(n=) (324) (334) (142) (34)

76 54 2979 Totals – top two boxes

15

Checkoff Continues to Remain Visible In Ad, News Coverage

45%

46%49%

47%

51%

50%53%

52%56%

0% 20% 40% 60% 80% 100%

June'10

Jan.'10

Jan.'09

June '08

Jan.'08

July '07

Jan. '07

June '06

Jan. '06

Recall something about checkoff

--Seen, read or heard something about checkoff in past 6 months--

16

Perceptions About Coverage Continue To Be Largely Positive

64% 66% 67% 65%73% 71%

65%70%

25% 22% 22% 22% 18% 17% 20%14%

8% 7% 7% 7% 5% 7% 7% 9%3% 4% 3% 4% 3% 4% 5% 4%

65%70%

19% 19%12%

6%4% 5%

0%

20%

40%

60%

80%

100%

Positive Neutral Negative Positive & negative

--Perceptions toward checkoff coverage (if aware)--

17

Recall of “My Beef Checkoff Can” Tends to Be Low, Up Since January, However.

24%

19%

19%

0% 20% 40% 60% 80% 100%

June'10

Jan.'10

Jan.'09

Recall "My Beef CheckoffCan"

--Remember seeing “My Beef Checkoff Can” in trade magazines?--

18

Checkoff Print Ads Are Effective In Educating Producers About The Program

56%

41%

4%

55%

38%

7%

52%

42%

6%

0%

20%

40%

60%

80%

100%

Yes No DK/NS

Jan.'09 Jan.'10 June'10

--Did print ad increase your understanding of checkoff?*--

*Asked of producers aware of print ads.

19

Producers Supportive of All Proposed Checkoff Changes Except A Higher

Assessment

Overall Interest in Outcome of Referendum

Not inter, 13%

Very inter, 40%

Smwht inter, 47%

Definitely/Probably Vote in Favor*

40%

59%

69%

72%

78%

78%

0% 50% 100%

Increase assessment by $1

Exempt animals < $50

Manage programs directly

Revise nominating criteria

Regional beef councils

Periodic referendum

*Among those very interested in outcome of referendum.

20

Strategic Imperatives

• Producers recognize the checkoff can benefit them – more so in general sense– About three-fourths feel program has value when

cattle market is down, or are confident it is there for them in a crisis

– About six in ten think it has helped contribute to their profitability, trust it is being managed well

21

Strategic Imperatives (continued)

• Checkoff program remains visible.– About half recall something about it, usually positive

• Producers’ expectations for checkoff focus are not homogeneous– Different opinions about most important priority for

funding: consumer confidence, addressing misinformation, education, advertising come out on top

22

Strategic Imperatives (continued)

• Magazine ads have been effective checkoff educational vehicles– Majority of those aware of ads say it has increased

their understanding of the checkoff

• The more informed producers become about checkoff, the stronger they approve of it