Opinion

Help find solutions

Friday, November 23, 2001

Dear Editor,

The recent letter to the editor from Gary Malone about the beef checkoff contains some serious errors. Important checkoff facts include that Dr. Ron Ward, a researcher from the University of Florida, has done studies which conclude that the return to producers as a result of the checkoff is substantial. He calculates that producers receive about $5 for every $1 invested in the program in the form of higher prices than would have been received had there not been a checkoff.

I doubt even those who question the value of the checkoff would argue, as Mr. Malone seems to, that a $1/head is the difference between success and failure of their operation. If I felt that $1/head was keeping my cattle enterprise from being profitable I would liquidate it. No one is forcing me to be in the cattle business.

He speaks of high retail and low cattle prices. This is an issue we monitor, but it is also important that he acknowledge volatility has always been a part of the cattle industry. I see no reason to believe this is going to change. In turn, eliminating the checkoff will not eliminate price volatility.

As with most businesses, and certainly true for a commodity such as beef, research, development and promotion are key to success. If we want to increase consumption, we have to promote it. After all, if consumers decide not to purchase beef, how many packers will think it's a good idea to purchase cattle?

The 110 producers on the Cattlemen's Beef Board, seven of which are from Nebraska, all pay the checkoff and are who oversee the spending of national beef checkoff dollars. There are hundreds of other producers who sit on state beef councils, deciding how half of the dollars being collected in the states will be spent. And there are thousands of producers who have helped direct demand-focused programs through the beef checkoff over the years. If Mr. Malone is sincere about wanting to help, he ought to work to put himself on the Board, or at the very least make his complaints and suggestions known to his representative on the Board.

Mr. Malone is right in noting that an independent study found that 72 percent of producers currently support the beef checkoff. We support the petition process because it is the same method we all use throughout government to recall unwise laws or remove elected officials. However, there have not been enough valid petitions submitted to call a vote on the checkoff. The system is working.

Until enough valid petitions are submitted, he can be part of the solution by attending the Nebraska Cattlemen's Annual Convention Dec. 5-7 at the Cornhusker Hotel in Lincoln.

We invite Mr. Malone to join us in helping finding solutions to the industry's challenges.

Sincerely,

J.D. Alexander,

President

Nebraska Cattlemen

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