Beef Checkoff
Successes & Challenges
Successes and Challenges
• Consumers and beef safety
• Consumers and beef’s nutrition
• Consumers and lifestyle/socio-economic
issues
2
SOURCES: Peter Hart Research – 2000; IPSOS 2001 - 2009
3
Supermarket Foods of Highest Safety Concerns
Percent of consumers naming a specific food as highest concern
50%
40% 37%
30%
44%
40%
28%
22% 21%
20% 14%
15% 17%
10%
13% 10%
7%
0%
33%
27%
25%
9%
41% 40%
40%
23%
39%
25% 22%
20%
Beef
13% 13%
13%
12%
Pork
11%
10%
12%
Chicken
11%
Fish/Seafood
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?
4
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
5
6
Beef’s Nutrition
The successes…
62% “Great source of vitamins and minerals (57%)
84% “Provides energy and fuel” (83%)
86% “Great source of protein” (85%)
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%)
Consumer Beef Index – July '09
7
Importance of Purchase Activities
Lean cuts of meat “most important” activity when shopping for food
31
Buying cuts of meats that are 'lean'
Buying foods with a low percentage of calories
from saturated fat
38
27
25
22
Buying foods that provide lots of protein
Buying foods that have lots of vitamins and
minerals
Buying foods with a low percentage of calories
from fat
Buying foods that have lots of nutrients but
relatively few calories
18
30
19
27
28
Buying foods with low sugar content
16
24
Buying foods that are low in calories
13
27
Buying foods with low sodium content
16
23
Buying foods that don't contain high fructose corn
syrup
16
IPSOS – 12/2009
4
3
2
20
6 8
8 10
28
31
15
5, extremely important
30
28
19
Buying foods that say 'zero trans fats'
17
10 12
35
7 8
31
14
7
32
12 10
37
8 12
35
14
38
31
29
12
15
21
9
11
15
14
1, not at all important
8
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
9
65%
Recession
is Over
Lag
Time
Consumer
Confidence
Rebounds
Lag
Time
Spending
Improves
(3) “38th Annual Forecast and Outlook Seminar: 2010: A Year of Challenge & Success”
Technomic Survey, August, 2009
50% of
consumers say
will be frugal
long-term after
the recession is
over
10
Overall Perceptions of Beef
Return to
higher level of
last summer
23%
46%
26%
45%
22%
33%
48%
26%
10%
Jan '07
(N=1,200)
20%
45%
20%
16%
9%
10%
May '07
(N=1,800)
Feb '08
(N=1,000)
7%
Jul '08
(N=1,006)
Bucket 1
– Positives strongly outweigh negatives
45%
20%
30%
Chicken
43%
Bucket 2
– Positives somewhat outweigh negatives
20%
18%
9%
9%
Mar '09
(N=1,008)
46%
42%
Bucket 3
7%
– Negatives somewhat outweigh positives
Bucket 4
– Negatives strongly outweigh positives
5%
Jul '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?
Consumer Beef Index – July '09
11
11
Per Week Average Number of Beef Servings (by consumer belief)
4.0
3.5
3.0
2.5
Consumers saying:
3.4
3.2
3.2
3.3
–Bucket
Beef positives
strongly outweigh negatives
1
2.9
2.8
2.7
2.7
2.6
– Positives
somewhat outweigh negatives
Bucket
2
2.4
1.8
1.8
1.5
1.6
1.6
1.5
1.7

2.0
– Negatives somewhat outweigh positives
Bucket 3
*
1.0
1.1
0.9
0.5
– Negatives strongly outweigh positives
Bucket 4
0.7
0.6
0.0
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)
Question: Q.20: How many times did you eat this type of food in the past week?
Consumer Beef Index – July '09
1212
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
15
Beef production
16
Consumers Don’t Know Us…
Percent of consumers saying how well they know beef industry
IPSOS Public Affairs 5/2009
17
…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
18
Advocacy Group
Consumers Union
HSUS
Environmental Defense
PETA
Sierra Club
CSPI
Greenpeace
PCRM
Farm Sanctuary
Budget
$206.6
$124.9
$69.5
$31.1
$29.3
$17.3
$10.7
$7.2
$5.3
19
SA
Esteem
High-End
Luxury
Natural and
organics
Animal
Welfare
Belonging
Safety
Physiological
Sustainability
Safety
Nutrition
20
Beef Report Card
Value
Taste
anSolid
Safety
Ongoing
Passion
Bounces
Back
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
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?
21 21
Beef Industry LRP Goal:
Export 3.0 Billion Pounds by 2010
2011 Forecast
3.06 billion lbs
(million lbs)
4,000
3,500
3,000
2,500
BVM
Beef
2,000
1,500
1,000
500
0
F
12
20
F
11
20
F
10
20
F
09
20
08
20
07
20
06
20
05
20
04
20
03
20
Source: USDA/USMEF Forecast
Beef Industry LRP Goal:
Become a Net Exporter by 2010
(million $)
5,000
2007 Net Imports
$780 million
4,000
2008 Net Exports
$453 million
3,000
2,000
2009 Jan-May
Net Imports
$40 million
1,000
-2,000
-3,000
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
19
-1,000
95
0
Exports
Imports
Net Export Value
-4,000
Source: USDA/FAS; Million USD
23