The nation’s pork producers receive an overall return of 25 to 1 on their Checkoff investment, according to a 2017 study conducted and released by Harry Kaiser, the Gellert Family Professor in the Dyson School of Applied Economics and Management, Cornell University.
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 Checkoff programs conducted from 2011 to 2016.
“Producers fund the Pork Checkoff, so it’s important for us to understand and quantify the value of our investment,” said National Pork Board President Terry O’Neel, Friend, Nebraska. “The results indicate a positive impact of all aspects of the Checkoff, from conducting production-focused research to growing consumer and export demand for pork.”
Specifically, the study documented a growing return on investment through defined benefit-cost ratios across several key program areas. Each dollar invested in:
- Production research to benefit on-farm practices yielded $83.30 in pork producer value.
- International marketing yielded $24.70 in producer benefits.
- Domestic marketing resulted in benefits of $14.20 for advertising and $12.40 for non-advertising promotion.
- Research market drivers to grow demand returned $8.30.
- Collectively, the overall return of Checkoff program activities is $25.50 for each dollar invested.
USDA requires that a return on investment analysis be conducted every five years. The 2001 to 2006 study showed an overall return to producers of $13.80 for every $1 invested, and the study released in 2012 for the time period of 2006 to 2011 found a return of $17.40.
“This analysis provides a comprehensive review of program development, and more importantly, the efficiency of our Checkoff program administration,” O’Neel said. “The net return of 25 to 1 on Checkoff investments demonstrates that we are meeting pork producer needs in the areas that drive sustainable production and grow consumer demand.”