american lamb board

American Lamb Checkoff Program Proves Value in Recent Report

Brian German Dairy & Livestock, Industry

A recent report found that the American Lamb Checkoff Program is positively influencing the industry by helping increase demand and profits.  The report from Texas A&M University, Return on Investment in the American Lamb Checkoff Program, compiles information from econometric modeling which found that the checkoff program added nearly three percent to the value of retail lamb.  The report is the latest offering from the American Lamb Board (ALB), which routinely commissions evaluations on its programs through third-party universities.

Lamb Checkoff Program“These results are a win for every member of the American lamb industry,” ALB Chairman Dale Thorne said in a news release. “The purpose of our checkoff is to increase demand for American Lamb and enhance opportunities for all segments to profit. This extensive analysis tells us that we remain on the right track with our promotion programs.”

The checkoff program is required by law to have a return on investment analysis conducted every five years.  One of the aspects highlighted by the report was the cost-to-benefit ratio for the overall checkoff program.  The data showed that every dollar invested in the program by industry stakeholders equates to approximately $14.20 in return.

The report uses pertinent information taken from the Livestock Marketing Information Center, U.S. Department of Agriculture, as well as industry reports along with other reputable sources.  Researchers found that ALB has demonstrated significant success with the promotion of lamb to consumers.  The promotion program that is a part of the American Lamb Checkoff Program is $1.5 million annually, which is accompanied by another $500,000 for investment in education and research programs.

The demand for lamb was shown to be impacted by lamb price, as well as beef prices.  A ten percent increase in the price of lamb resulted in a decline in demand of about six percent.  Demand for lamb also fell by about five percent when beef prices experienced a decline of ten percent.  Pork and chicken prices did not appear to have a measurable impact on lamb demand.

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Brian German

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Ag News Director, AgNet West