Beef CheckoffBeef Checkoff

Successes & ChallengesSuccesses & Challenges

2

Successes and Challenges

• Consumers and beef safety

• Consumers and beef’s nutrition

• Consumers and lifestyle/socio-economic issues

3

SOURCES: Peter Hart Research – 2000; IPSOS 2001 - 2009

4

13%15%

28%

25% 13% 13%

10%

12%14%

10% 7% 9% 11% 11%

13%

12%

22% 21%

17%

27%23% 25% 22% 20%

37%44% 40%

33%40% 39%

41% 40%

0%

10%

20%

30%

40%

50%

Beef

Pork

Chicken

Fish/Seafood

Supermarket Foods of Highest Safety ConcernsSupermarket Foods of Highest Safety ConcernsPercent of consumers naming a specific food as highest concern

Q: When you think of the safety of foods you might buy in the supermarket, which one of the following types of food are you most concerned about?

5

TABLE 6

Percent of Consumers Confident in the Safety of Beef and Chicken

DATE FRESH BEEF STEAKS/ ROASTS

FRESH GROUND BEEF

FRESH CHICKEN

Nov. 09 83% 76% 79%

Nov. 08 91% 84% 81%

May 08 85% 77% 81%

Oct. 07 76% 66% 71%

Nov. 06 86% 75% 75%

Nov. 05 84% 77% 77%

Nov 04 76% 64% 63%

Nov. 03 76% 64% 63%

Nov. 02 74% 60% 62%

Nov. 01 80% 64% 69%

Nov. 00 83% 68% 77%

Aug. 99 815 60% 69%

Source Peter Hart Research 1998-2000: IPSOS 2001-2009

6

7

Beef’s Nutrition

And the challenges…56% “Can be eaten every day” (76%)48% “Fits a health-conscious diet” (81%)32% “Low in sat fat” (64%)30% “Low in cholesterol” (60%)

The successes…62% “Great source of vitamins and minerals (57%)84% “Provides energy and fuel” (83%)86% “Great source of protein” (85%)

Consumer Beef Index – July '09

8

Importance of Purchase ActivitiesImportance of Purchase ActivitiesLean cuts of meat “most important” activity when shopping for food

31

27

22

19

18

19

15

16

13

16

16

38

25

28

31

30

27

28

24

27

23

20

17

30

28

35

31

32

37

35

38

31

29

6

8

10

7

14

12

8

14

12

15

21

8

10

12

8

7

10

12

9

11

15

14

Buying cuts of meats that are 'lean'

Buying foods with a low percentage of caloriesfrom saturated fat

Buying foods that provide lots of protein

Buying foods that say 'zero trans fats'

Buying foods that have lots of vitamins andminerals

Buying foods with a low percentage of caloriesfrom fat

Buying foods that have lots of nutrients butrelatively few calories

Buying foods with low sugar content

Buying foods that are low in calories

Buying foods with low sodium content

Buying foods that don't contain high fructose cornsyrup

5, extremely important 4 3 2 1, not at all important

IPSOS – 12/2009

9

2010 Dietary Guidelines• Nutrition research program has submitted nine

sets of scientific comments:– Explaining the leanness of beef

– Explaining beef’s excellent nutrient package

– Demonstrating beef intake is not associated with heart disease

– Clarifying beef’s contribution to the total saturated fat in the American diet

– Clarifying beef’s sustainability / environmental impact

10

50% of consumers say will be frugal long-

term after the recession is

over

Recession is Over

Lag Time

Consumer Confidence Rebounds

Lag Time

Spending Improves

65%

(3) “38th Annual Forecast and Outlook Seminar: 2010: A Year of Challenge & Success” Technomic Survey, August, 2009

11

Consumer Beef Index – July '09

11

9% 10%

20% 20%

45%48%

26%22%

9%10% 7% 9%

18%20%

16%20%

43%

46%

45%

45%

30%23%

33%26%

J an '07(N=1,200)

May '07(N=1,800)

Feb '08(N=1,000)

J ul '08(N=1,006)

Mar '09(N=1,008)

J ul '09(N=1,009)

Question: Q.35: Considering all you know about beef, would you say the positives of beef outweigh the negatives or do the negatives of beef outweigh the positives? Q.36: Considering all you know about chicken, would you say the positives of chicken outweigh the negatives or do the negatives of chicken outweigh the positives?

Bucket 1 – Positives strongly outweigh negatives

Bucket 2 – Positives somewhat outweigh negatives

Bucket 3 – Negatives somewhat outweigh positives

Bucket 4 – Negatives strongly outweigh positives

Chicken

5%

7%

42%

46%

Overall Perceptions of BeefReturn to

higher level of last

summer

12

Consumer Beef Index – July '09

12

Question: Q.20: How many times did you eat this type of food in the past week?

2.9

3.4

3.2 3.23.3

2.82.7 2.7

2.4

2.6

1.8

1.51.6 1.6

1.8

0.6

0.9

0.7

1.1

1.7

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

May '07(N=51-225)

Feb '08(N=98-477)

Jul '08(N=66-449)

Mar '09(N=93-454)

Jul '09(N=88-437)

Bucket 1

Bucket 2

Bucket 3

Bucket 4

– Beef positives strongly outweigh negatives

– Positives somewhat outweigh negatives

– Negatives somewhat outweigh positives

– Negatives strongly outweigh positives

Per Week Average Number of Beef Servings (by consumer belief)

*

Consumers saying:

15

Food expenditure retail vs. foodservice

• Food purchased for at-home consumption accounted for 55.7% total food expenditure, 2009 (↑ from 2008)

• Food purchased away-from-home accounted 44.3% total food expenditure (↓ from 2008)

USDA, 2009

16

Beef production

17

Consumers Don’t Know Us…Consumers Don’t Know Us…

IPSOS Public Affairs 5/2009

Percent of consumers saying how well they know beef industry

18

…in a void, others will define us• HSUS“Farm animals are mutilated. They’re crammed into tiny cages. They endure

often-agonizing slaughter. Farms routinely abuse them. No federal law protects them from cruelty while on the farm, and most states exempt common agricultural practices from animal cruelty laws, regardless of how abusive."-HSUS Web site

• PETA“Animals on factory farms do not see the sun or get a breath of fresh air until they are

prodded and crammed onto trucks for a nightmarish ride to the slaughterhouse, often through weather extremes and always without food or water. Many die during transport, and others are too sick or weak to walk off the truck after they reach the slaughterhouse. The animals who survive this hellish ordeal are hung upside-down and their throats are slit, often while they're completely conscious. Many are still alive while they are skinned, hacked into pieces.”

-PETA Web site

19

Advocacy Group Budget Consumers Union $206.6

HSUS $124.9

Environmental Defense $69.5

PETA $31.1

Sierra Club $29.3

CSPI $17.3

Greenpeace $10.7

PCRM $7.2

Farm Sanctuary $5.3

$224 mil

20

Esteem

Belonging

Safety

Physiological

High-End Luxury

Natural and organics

Animal Welfare

Safety

Nutrition

Sustainability

SA

2121

Beef Report Card

Questions: Q.32a/b: Thinking only about beef, how much do you agree or disagree with each of the following statements when eating this food type at home/a full-service restaurant?

At Home At Restaurant

1-07 5-07 2-08 7-08 3-09 7-09 1-07 5-07 2-08 7-08 3-09 7-09

Great tasting 85% 82% 84% 85% 84% 87% 80% 81% 86% 83% 84% 85%

Extremely safe to eat 55% 60% 50% 57% 54% 63% 52% 62% 55% 60% 60% 58%

A good value for the money 60% 54% 62% 62% 62% 67% 57% 54% 61% 60% 63% 63%

Food you crave 62% 59% 63% 69% 67% 67% 60% 58% 65% 66% 68% 68%

Source: Consumer Beef Index: July, 2009

Safety SolidValue

Bounces Back

Taste an Ongoing Passion

Beef Industry LRP Goal:Export 3.0 Billion Pounds by 2010

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

BVM

Beef

Source: USDA/USMEF Forecast

2011 Forecast 3.06 billion lbs(million lbs)

23

Beef Industry LRP Goal:Become a Net Exporter by 2010

-4,000

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Exports

Imports

Net Export Value

Source: USDA/FAS; Million USD

2007 Net Imports$780 million

2008 Net Exports $453 million

2009 Jan-May Net Imports

$40 million

(million $)