Beef Demand May Bolster Cattle Cycle

SDBIC Director Ernie Mertz (left), Bowdle, talks over checkoff-related issues with Monte Reese, Cattlemen’s Beef Board COO.

PIERRE (June 13, 2006)—The Chief Operating Officer of the Cattlemen’s Beef Board told South Dakota beef producers last week that a strong beef demand should help ease what many in the industry expect to be a downtrend in the cattle cycle.

“We’ve probably enjoyed the top part of this cattle cycle,” admits Monte Reese, COO for the board that oversees the national $1-per-head checkoff. “But it should not hit as low as in past cycles because of the increased demand.”

Reese was one of several speakers driving home the importance of the beef checkoff to directors of the South Dakota Beef Industry Council (SDBIC) during their quarterly meeting in Pierre June 9. According to Reese, the industry has enjoyed more than a 20 percent increase in demand since 1998, translating into a corresponding increase of more than $200 head per head in the price of cattle sold. While other factors have certainly contributed to that demand surge, he says, checkoff programs have played a role.

“Checkoff dollars are currently funding a 19-week summer grilling promotion to ignite strong demand during the summer months,” he explained.

John Haverhals , cattle feeder from Hudson , S.D. , drove home the importance of checkoff-funded marketing and promotion materials to businesses selling beef. Haverhals, a past SDBIC director, is part-owner and chief executive officer of Marshall John’s Beef, a marketer of South Dakota Certified Beef. He touted the quality of materials available to producers wanting to add value to their livestock businesses through retail operations.

South Dakota Agriculture Secretary Larry Gabriel and “Beef Wrangler” Tracey Orsburn, who visits with beef producers at livestock markets throughout the country with the checkoff-funded Beefmobile, also addressed the directors and other beef producers attending the open meeting.

“There was a lot of excellent information exchanged at the meeting,” says SDBIC President Roger Gerdes. “We were happy to see some beef producers attending other than directors. It’s a great way to find out more about their beef checkoff and programs that it funds.”

In addition to speakers, the business meeting included a report on in-state promotional and educational activities as well as the selection of the 2006 Prime Promoters Award winners which will be announced at a later date.

The SDBIC annual meeting will be October 7 during the South Dakota State University (SDSU) Beef Bowl events on the SDSU campus.

The SDBIC collects the $1-per-head beef checkoff on cattle sold in South Dakota . The state council, comprised of representatives from eight agriculture organizations, can retain up to 50 cents for state checkoff programs, while the remaining amount is forwarded to the Cattlemen’s Beef Promotion and Research Board. All checkoff dollars, state or national, must be utilized for promotion, research or educational projects.

Representative organizations are: SD Beef Breeds Council, SD Cattlemen’s Association, SD Cattlemen’s Auxiliary, SD CattleWomen, SD Farm Bureau, SD Farmers Union and SD Stockgrowers Association.