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Generic Promotion Of Beef: Measuring The Impact Of The Us Beef Checkoff

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  • R. W. Ward
  • C. Lambert

Abstract

Generic promotions of commodities are growing in importance. In the US, commodity industry assessments or checkoffs (i.e. a per unit levy or tax) are used to underwrite domestic and international promotions by commodity groups. The US beef checkoff is one of the largest of these new national commodity programmes. Evaluation of the economic impact of the beef promotion is an essential part of the beef checkoff. A model for evaluating the US beef programmes is estimated and the methodology is applicable to other commodity models that include advertising and promotion expenditures. The beef analysis shows a positive and significant return to the beef industry, with an average of approximately $5 for each $1 invested for the quarters 1987:1 through 1991:2.

Suggested Citation

  • R. W. Ward & C. Lambert, 1993. "Generic Promotion Of Beef: Measuring The Impact Of The Us Beef Checkoff," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 456-465, September.
  • Handle: RePEc:bla:jageco:v:44:y:1993:i:3:p:456-465
    DOI: 10.1111/j.1477-9552.1993.tb00287.x
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    File URL: https://doi.org/10.1111/j.1477-9552.1993.tb00287.x
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    1. Giancarlo Moschini & Karl D. Meilke, 1989. "Modeling the Pattern of Structural Change in U.S. Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 253-261.
    2. Ronald W. Ward & Julio Chang & Stan Thompson, 1985. "Commodity advertising: Theoretical issues relating to generic and brand promotions," Agribusiness, John Wiley & Sons, Ltd., vol. 1(4), pages 269-276.
    3. Roger K. Conway & Charles B. Hallahan & Richard P. Stillman & Paul T. Prentice, 1990. "Forecasting livestock prices: Fixed and stochastic coefficients estimation comparisons," Agribusiness, John Wiley & Sons, Ltd., vol. 6(1), pages 15-32.
    4. Wohlgenant, Michael K., 1985. "Estimating Cross Elasticities Of Demand For Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(2), pages 1-8, December.
    5. Ronald W. Ward & Bruce L. Dixon, 1989. "Effectiveness of Fluid Milk Advertising Since the Dairy and Tobacco Adjustment Act of 1983," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 730-740.
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    Cited by:

    1. Kinnucan, Henry W., 2003. "Optimal generic advertising in an imperfectly competitive food industry with variable proportions," Agricultural Economics, Blackwell, vol. 29(2), pages 143-158, October.
    2. Peter, Günter, 2011. "Gemeinschaftliche Absatz- und Exportförderung für Agrarerzeugnisse und Lebensmittel in Österreich und den USA. Bericht im Auftrag des Bundesministeriums für Ernährung, Landwirtschaft und Verbrauchersc," Arbeitsberichte aus der vTI-Agrarökonomie 04/2011, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    3. Marco A. Palma & Myriah D. Johnson & David P. Anderson, 2019. "The effects of experience versus description of attributes on willingness‐to‐pay for beefsteaks," Agricultural Economics, International Association of Agricultural Economists, vol. 50(2), pages 129-137, March.
    4. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. H. W. Kinnucan, 1996. "A Note On Measuring Returns To Generic Advertising In Interrelated Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 261-267, January.
    6. J. A. L. Cranfield, 2003. "Optimal Collective Investment in Generic Advertising, Export Market Promotion and Cost-of-Production-Reducing Research," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 299-321, November.
    7. Capps, Oral, Jr. & Seo, Seong-Cheon & Nichols, John P., 1997. "On The Estimation Of Advertising Effects For Branded Products: An Application To Spaghetti Sauces," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(2), pages 1-12, December.
    8. Meza, Liliana & Sanjuan, Ana I. & Mascaray, Maria A. & Albisu, Luis M., 1999. "An integrated approach to evaluate generic promotions," 67th Seminar, October 28-30, 1999, LeMans, France 241042, European Association of Agricultural Economists.
    9. Freebairn, John W. & Goddard, Ellen W. & Griffith, Garry R., 2005. "When Can a Generic Advertising Program Increase Farmer Returns?," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    10. Zhang, Mingxia & Sexton, Richard J., 2000. "Optimal Commodity Promotion In Imperfectly Competitive Markets," 2000 Annual meeting, July 30-August 2, Tampa, FL 21823, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    12. Verbeke, W. & Ward, R. W. & Avermaete, T., 2002. "Evaluation of publicity measures relating to the EU beef labelling system in Belgium," Food Policy, Elsevier, vol. 27(4), pages 339-353, August.
    13. Ward, Ronald W. & Moon, Wanki & Medina, Sara, 2001. "Measuring The Impact Of Generic Promotions Of U.S. Beef: An Application Of Double-Hurdle And Time Series Models," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(4), pages 1-11.
    14. Lee L. Schulz & John M. Crespi, 2012. "Presence of Check‐Off Programs and Industry Concentration in the Food Manufacturing Sector," Agribusiness, John Wiley & Sons, Ltd., vol. 28(2), pages 148-156, March.
    15. Ferrier, Peyton & Lamb, Russell, 2007. "Government regulation and quality in the US beef market," Food Policy, Elsevier, vol. 32(1), pages 84-97, February.
    16. Yadavalli, Anita & Jones, Keithly, 2014. "Does media influence consumer demand? The case of lean finely textured beef in the United States," Food Policy, Elsevier, vol. 49(P1), pages 219-227.
    17. Chung, Chanjin & Henneberry, Shida Rastegari & Tostao, Emilio, 2004. "Will The Voluntary Checkoff Program Be The Answer? An Analysis Of Optimal Advertising And Free-Rider Problem In The U.S. Beef Industry," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34694, Southern Agricultural Economics Association.
    18. Peter, Guenter, 2011. "Gemeinschaftliche Absatz- und Exportförderung für Agrarerzeugnisse und Lebensmittel in Österreich und den USA," Thuenen Working Papers 125733, Johann Heinrich von Thuenen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries.

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