July 26, 2007

US pork producers get much more out of Pork Checkoff

Pork producers get more out of the checkoff dollars than they put in, according to a study by economists at the North Carolina State University.

The study's results indicated that producers would gain US$13.80 for each additional US$1 of programme expenditures.

That ratio is the combined ratio of an analysis of four specific Checkoff expenditure categories: Production research; marketing-chain research; domestic promotion and foreign market development.

The highest cost-benefit-cost ratios were in marketing-chain research and foreign-market development.

Economists at the RTI International of Research Triangle said the Pork Checkoff has a significant positive effect on pork and hog demand.

The peer-reviewed study, studied the performance of Checkoff programmes between 1999 and 2005, required every five years by the USDA as part of its oversight of the National Pork Board and Pork Checkoff programmes.

The research was done by highly respected agricultural economists, working independently and using the best evaluation models, said Steve Meyer, president of Paragon Economics and a consultant to the National Pork Board.

Results of the study were presented to members of the National Pork Board and would go to USDA for review.