
The national check-off is a mandatory levy of $1 per head collected from beef cattle producers when they market their cattle. The check-off generates approximately $8.2 million annually for research and marketing activities on behalf of the entire industry.
A study evaluating the economic benefits from the Canadian beef cattle check-off was completed March 2010 and marks the first of its kind analysis of the effectiveness of national check-off expenditures on producers’ economic well-being. The study reports that on average from 2005 and 2008, every check-off dollar invested in national research and marketing activities earned back $9 for Canadian cattle producers.
Research delivered a return of $46 in producer benefits for every check-off dollar invested.
Marketing delivered a return of $7.55 in producer benefits for every check-off dollar invested.
As well, by 2008 the return to the average dollar invested slightly exceeded the return to the average dollar invested prior to the BSE crisis.
Canada’s beef cattle check-off return on investment of $9 for every dollar invested (9:1) is higher than Australia and the United States. Recent reviews of their check-offs reported returns of 5:1 and 5.5:1 respectively. And compared to other commodities, Canadian beef cattle check-off return falls squarely within the range of values reported in previous studies for other regions and commodities and is higher in some cases.
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