US study measures value of Pork Checkoff
A recently completed study of the economic value of
Pork Checkoff programmes has concluded that the returns to producers, on
average, substantially outweigh the costs.
The study, conducted by economists at RTI International of Research Triangle,
North Carolina, and North Carolina State University, also concludes that the
Pork Checkoff has "a significant positive effect on the demand for hogs and
The peer-reviewed study, called An Economic Analysis of the
Effectiveness of the Pork Checkoff Program focuses on the performance of
Checkoff programmes between 1999 and 2005. The study is required every five
years by the US Department of Agriculture as part of its oversight of the
National Pork Board and Pork Checkoff
Results of the study were
presented to members of the National Pork Board during their meeting in St.
Louis, Missouri. The study now goes to USDA for its review.
research was done by some of the most highly respected agricultural economists,
working independently and using the best evaluation methods known to the
economics profession," said Steve Meyer, president of Paragon Economics and a
consultant to the National Pork Board.
"The results are reasonable
when compared to similar analyses of a broad array of producer-funded Checkoff
The study concludes
that based on data from the five years of the study, marginal increases in
Checkoff programme expenditures would increase producer profitability, on
Specifically, the study's results indicate an overall
marginal benefit-cost ratio - the net return to producers divided by the
programme cost - of 13.8, "indicating that producers would gain an additional
$13.80 for each additional $1 of programme expenditures."
That ratio is the combined ratio of an analysis of four
specific Checkoff expenditure categories: Production research; post-farm
research (marketing-chain research); domestic promotion; foreign market
Among the four expenditure categories, the study found
the highest average benefit-cost ratios for marketing-chain research, followed
by foreign-market development.
â€¢ US Department of Agriculture (USDA)
â€¢ National Pork Board
â€¢ RTI International
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