The National Live Stock and Meat Board will soon cease to exist as we know it today.
The National Live Stock and Meat Board is expected to consolidate with the National Cattlemen's Association to form the new National Cattlemen's Beef Association (NCBA) on Feb. 1. All that is needed is approval by the NCA, which is expected at its convention later this month.
Meat Marketing & Technology's Editor-In-Chief Mark Lefens and Editor Bryan Salvage interviewed Meat Board President John Huston in Chicago. Here's what Huston had to say on the consolidation, remaining industry challenges and the Meat Board's accomplishments.
MM&T: At a time when many in the industry say red meat industry segments (beef, pork, lamb and veal) should be pulling together to work on common issues and interests, it appears the meat industry is becoming more species specific. What are your thoughts on this?
Huston: The evolution into single-species organizations is not something that happened in one year or with the creation of the National Cattlemen's Beef Association.
It began more than 30 years ago with the [passage of the] Wool Act of 1954-when lamb promotion and merchandising was pulled out of the Meat Board.
The same trend followed later in pork. [Following the passage of the Farm Act of 1985], the pork industry chose not to continue investing 20 percent of its check-off funds in Meat Board programs; it continued with a 10 percent Meat Board investment.
MM&T: The Meat Board, as we know it today, will no longer exist after Feb. 1. What are your feelings about the Meat Board's changing nature-and the new National Cattlemen's Beef Association?
Huston: I have always felt strongly that the Meat Board and any industry organization exists to serve those who fund it. In recent years, the beef industry had been the primary investor. Today, 82 percent of the Meat Board's staff hours are spent on beef projects, and 95 percent of our total income comes from the beef segment of the meat industry. When that investor feels there's a better way to evolve and serve industry, I believe that's [the investor's] call.
There are several exciting opportunities offered by the new organization. The new organizational structure offers beef the potential for one plan, one budget, and most important-one set of program committees instead of competing committees working within the beef industry.
Bottom line, there will be a common information base, which will come from focused committees and joint board meetings. If we can meet in one room and hear the same information, maybe our decision-making process will be more efficient and effective since we have eliminated the turf barriers that have existed in the past amongst duplicate committees serving the program functions.
MM&T: The vote to consolidate the Meat Board into the new association barely passed. Did this surprise you?
Huston: The final vote was 75.2 percent [to consolidate]. We needed to have 75 percent for the consolidation. I thought it would pass, but did I think it would be that close? No.
MM&T: Are you concerned about the continuation of multi-species meat marketing, research and promotion projects once the Meat Board ceases to exist?
Huston: There will be times for beef, veal, pork and lamb segments to work together and times to compete.
If we review the pork, lamb and beef industries' long range plans, one of the common phrases you hear in each is "we must be a more consumer- and market-driven industry." If that's true, then we must seek ways to work together in those areas that make market sense for us to work as a meat industry. I'm very optimistic this will happen.
We will find it more efficient to work together in reaching certain target audiences-like the American Heart Association, doctors, dietitians, other health care professionals and educators- when talking about issues like diet and health.
In the new organization, we're still going to have priorities-and we're not going to have enough dollars to do everything the beef industry wants to do.
There are still going to be tough decisions to make, and some people's priorities are not going to prevail. It will still be the grass-roots directors who make the funding decisions.
Success [of the NCBA] will depend upon how effective Charles Schroeder, the association's new CEO, and his staff team are in leading group decision making and consensus building.
There are still 1 million-plus beef, dairy and veal producers who are making daily decisions-and hundreds of packers and processors each independently making daily decisions about their operations.
This obviously affects their individual and collective vision of the beef industry. But Chuck is an individual who will be a very good fit within this new organization. He will be a good leader for the beef industry.
MM&T: Will anything be left of the Meat Board after Feb. 1? Will it take a new form or be totally disbanded?
Huston: All Meat Board staff as of Feb. 1 will move into the new organization. For at least the following year, the current Meat Board office in Chicago will remain.
As far as my personal plans go, they have not been decided. Whether I will be part of the new organization is Chuck Schroeder's decision-just like the rest of the staff.
MM&T: You have been with the Meat Board for more than 28 years. What are the major accomplishments you will remember from your tenure?
Huston: Building the federation of state beef councils is perhaps most important. When I joined the Meat Board in 1967, we had $812,000 in beef dollars. In 1980, it hit $2.8 million in total, but with 28 state beef councils each going their own way.
So, following the failure of the second beef referendum in 1980, we thought it was important to pull the councils together to build a unified program.We accomplished that in 1983.
Today, we have 44 state councils working together and supporting one strategic direction.
Another accomplishment in 1988 was the passage of the national check-off referendums-the dollar-a-head on cattle-and also the legislated pork check-off funds.
In the early 1980s, we created a new Deli Prepared Meats Committee. Of all the Meat Board committees, it's the only one left that reflects the old Meat Board-funding of 50 percent from producer check-off funds and 50 percent from packers and processor investments. [Editor's note: This committee was designed to help improve the market for deli meat products and to increase consumer awareness of the role of deli meats in the diet.]
I'm proud of our efforts regarding the diet and health challenge. Who would have thought back in 1919 when Thomas E. Wilson first called for the creation of a meat board that our own federal government would one day recommend that people eat less red meat-and more fish and poultry?
Of course, that was the situation when the first edition of the Dietary Goals was published in January 1977. Those in the meat industry who had governmental affairs' responsibilities went to work immediately on that report.
About six months later, we got the attention of former Sen. Charles Percy (R-Ill.) and the other lawmakers who were responsible for that report and it was revised to say "eat more lean meat, fish and poultry."
Too often in the past, we were not consumer driven on this issue. If someone spoke out on a diet and health issue against meat in the 1970s and early 1980s, we would line our scientists up and counter. We were very defensive mainly because we still had a lot of industry decision makers who weren't sure diet and health was a real issue.
In March 1985, a joint Statement of Principles was signed by the Meat Board, AMI, NCA, National Pork Producers Council and the American Sheep Industry Association.
That, I'm very proud of. It simply stated that if you're interested in a fat-modified diet, we're [industry] not going to argue with you. We will show you how meat can be part of a fat-modified or cholesterol-modified diet, as well as a traditional diet-all backed by scientific facts.
We later met with executives of the American Heart Association and explained the difference between carcass weight data vs. what is actually consumed after the fat and bone are removed.
We have since had ongoing cooperative programs and dialogue with the American Heart Association. Prior to 1985, we were enemies.
We also have one of the finest market research programs that exists in any commodity organization. I give Dr. Sheila Courington (former director of marketing) much of the credit for getting us on the right track. As resources became available, we gave high priority to better understanding market segments and meat consumers.
Thanks to Sheila, we have a Gallup tracking system that tracks diet and health, meat safety, animal welfare and environment issues.
MM&T: Some say the diet and health issue is now behind us. Do you agree?
Huston: It is anything but behind us. It has leveled off. But when one out of two consumers still say they have a concern about diet and health issues with beef-and about one-third of total consumers say they're eating less beef-that's unacceptable.
MM&T: Will the Meat Marketing & Technology Center still open as planned?
Huston: Yes. The first group is scheduled to attend the center at the University of Chicago's downtown business school the second quarter of 1996. It's so ironic that this center will open after the Meat Board ceases to exist as we have known it over seven decades.
The center could well be the most important meat program the Meat Board ever initiated. The beef and pork organizations will operate the center as equal partners.[Editor's note: This center is a Meat Board managed cooperative education effort between the meat industry and the University of Chicago. The center will provide a curriculum that highlights the value-based marketing system, as well as provide retailers with implementation know-how. A technology showcase will also be used by retailers to update their equipment and materials.]
MM&T: What will happen to the American Meat Science Association after the merger? [Editor's note: AMSA consists of meat scientists from industry and academia. AMSA's business management oversight has been conducted by Meat Board personnel. AMSA co-produces the annual Meat Industry Research Conference with the AMI Foundation. AMSA also produces the annual Reciprocal Meat Conference, which has taken place since 1948.]
Huston: It would be in the meat industry's best interest to support AMSA, and the NCBA should reach out as a start. AMSA is one of the Meat Board's great legacies. It's my hope the [AMSA] business center will be located at the National Cattlemen's Beef Association and structured in a way that the pork, lamb and all other segments of the meat industry would feel comfortable being involved.
MM&T: Any final comment about the Meat Board?
Huston: When someone writes a complete history of the livestock and meat industry organizations 100 years from now, they'll include a chapter on the Meat Board because of its innovative marketing programs and the growing use of check-offs to fund commodity programs, which the Meat Board first pioneered in the early 1920s-as well as the impact it has had on American agriculture. MM&T
ASSOCIATED ARTICLE:
Meat Board Metamorphosis
The National Live Stock and Meat Board is expected to consolidate with the National Cattleman's Association on Feb. 1 to create the National Cattlemen's Beef Association. NCA members are expected to approve the plan at their convention later this month. The Meat Board will cease to exist as we know it today. The following are just some of the highlights of the Meat Board since its birth.
February 1919: Thomas E. Wilson, president of Wilson & Co., presents an idea that evolves into the National Live Stock and Meat Board during an annual meeting of the Kansas Livestock Association. He suggests an organization where packers and producers might work together on mutual problems, and that producers take the initiative to have the major voice in such an organization.
"I think we have many problems to solve, and I think we can better solve them together," Wilson says during the meeting.
The 1920s
In 1922, the Meat Board is recommended and endorsed at the annual convention of the American National Livestock Association. Collections of promotional funds are started on livestock marketing and slaughter at the rate of 5 cents a carload-thus beginning the first check-off to fund meat promotion and the first coordinated voice of the industry for presenting the meat story to the public.
The Meat Board is formally organized with 17 directors representing 12 supporting organizations. Of the 17 directors, 12 are livestock-producer representatives, two are spokesmen for the terminal markets, two are meatpackers, and two represent retail distribution.
The primary factor bringing these groups together is the prevalent belief of the time that high-level meat consumption is adverse to health, causing such things as rheumatism and "overloaded kidneys" from a high-protein diet.
The purposes of the Meat Board set in its constitution are to: initiate and encourage research and education in regard to livestock and meat products; disseminate correct information about meat in the diet and its relation to health; and to do all things necessary to promote the interest of the livestock and meat industry. The first important act in the first year is to inaugurate its research grants program.
In 1924, the Meat Board is instrumental in developing the "Meat Shoppe"-the first of a long line of Meat Board meat displays at the International Live Stock Exposition and other shows. The Board publishes its first recipe book: "Meat and How I Cook It." The first Cooperative Meat Conferences and Meat Investigations are sponsored by the Board in 1925 at agricultural experimental stations, colleges and universities. The Better Beef Association is created in 1927 by the Meat Board, which ultimately results in creating USDA's grading service for beef carcasses.
The 1930s
A new service of meat information for educational institutions is inaugurated in 1930 with the first issue of the monthly bulletin, "Food and Nutrition News." The Meat Board starts its first industry newsletter-"National Live Stock and Meat Board News" in 1931.
Meat cooking school programs begin in 1932, and a set of six illustrated "Food Value Charts" is produced. In 1933, a cooperative advertising campaign is conducted with the nation's newspapers on "Meat for Your Good Health." The following year, the board publishes its first quantity recipes for restaurants. In 1935, the Board inaugurates meat copy and photos for food editors. More than 500,000 women attend the board's cooking schools in 1938.
The 1940s
During World War II, the Board conducts an intensive training program on Army posts including instructions in cutting, cooking, carving and conservation and nutrition-at the request of the U.S. Army Quartermasters Corps.
In 1944, the Board publishes a new manual, "Cooking Meat in Quantity", for foodservice outlets. A teaching kit for high school girls was created, and "You and Your Engine" published for grade school use. In 1945, the "Meat Manual" is published for colleges, universities and high schools; exclusive meat features for metropolitan newspapers get underway in 1947; and the first Reciprocal Meat Conference is held in 1948.
The 1950s
The Meat Board makes good use of a new medium. Its educational meat movies are shown on scores of television stations during the decade. In 1952, results of a research project on frozen meat financed by the Board is made available in print. Undergraduate Clinics start in 1954 for animal and meat science students. In 1955, a National Meat Promotion Committee is formed to coordinate beef, pork and lamb promotions.
The 1960s
In 1962, far-reaching changes are initiated in the Meat Board's structure, organizational make-up, program direction and financing following an 18-month study. The program is expanded to include separate units devoted to promotion-education efforts for beef, pork and lamb exclusively-with the majority of new leadership elected from the cattle, hog and sheep producing industries. The Beef Industry Council, Pork Industry Committee and Lamb Committee are formed.
The following year, the National Beef Council merges with the new beef promotion program of the board. State directors are added to the Board who were elected by industry organizations within the states leading the nation in financial support of the board's program.
The per-head rate of investments was increased to 3 cents on cattle and calves and 1 cent on hogs, pigs, sheep and lambs. Income level at the time was $1 million; 10 years later, it reached $2 million for the first time in history. In 1968, David Stroud succeeds Carl Neumann as president and CEO of the Meat Board.
The 1970s
The decade is marked by practical application of the state-national species-oriented concept of promotion and financing and an expansion of the Meat Board's governing dictorate for commensurate industry representation in decision and policy-making.
In 1973, the Meat Board starts the Uniform Retail Meat Industry Standards. At the time, 315 cuts of meat had 1,000 names. After 16 months, a list of standardized names is approved. After 23 months, most big chains adopt the program and more than 15,000 copies of the Uniform Retail Meat Identity Standards Manual had been ordered by the meat trade.
There are 18 legislated check-off programs and 12 voluntary programs in place in 1974-collecting $3.4 million; almost double the level of four years earlier. And $1.4 million find its way to the Meat Board.
In 1976, the Beef Industry Council determines it needs $35 million for marketing beef-and a national legislated check-off program was the way to get it. Pork check-off funds were raised to 10 cents a head this year. In 1977, nutrient composition studies of red meat begin.
The 1980s
Pork check-off funds are raised to 20 cents in 1980. A new cooperative 10-cent check-off program begins by the Lamb Committee and National Lamb Feeders Association. John L. Huston succeeds David H. Stroud in 1980 as Meat Board president. He is the Meat Board's fourth chief staff officer.
In the early 1980s, the Pork Industry Group becomes the first commodity group to work cooperatively with McDonald's in rolling out the McRib sandwich. The first BIC long-range plan is unveiled. A national consumer retail beef study accelerates the retail move toward one-quarter inch trim of all meat cuts. The Deli Prepared Meats Committee is created.
In 1983, the Processed Meats Committee is formed. Nutrient data is made available by Meat Board and USDA studies, which made possible the "repositioning" of meat as an integral part of the lean-conscious diet.
A joint statement is issued in 1985 by the Meat Board, AMI, National Cattlemen's Association, National Pork Producers Council and the American Sheep Industry Association on how meat can be part of a balanced diet-based on scientific facts. The Meat Nutri-Facts program is launched.
In 1986, the Veal Committee is formed. The Meat Board begins conducting annual Demand Strategies conferences focusing the industry's attention on consumer demand for meat and meat marketing innovations.
The 1990s
The Meat Board leads the charge in promoting and implementing Value-Based Meat Marketing; a concept that stresses "keeping a focus on value is the key to selling more meat." It also sends economic signals from consumer to producer.
Through nationwide meat case assimilation and the use of computer technology, retailers and packers will have the ability to correlate their unit expenses with the net prices they are [passing on to customers. By gaining this information, retailers and packers can find a marketing mix that makes the most of consumer demand. It is also heavily involved in touting the CARDS (Consumer Assisted Retail Decision Support) program for retailers focusing on the value of meat with less fat.
The Meat Board is involved in numerous programs and industry research projects. But by 1995, 82 percent of its staff hours are spent on beef-oriented projects-and 95 percent of the Meat Board's income is derived from the beef industry.
The Meat Board's board of directors votes during the 1995 annual meeting to consolidate with the National Cattlemen's Association to form a new organization-the National Cattlemen's Beef Association.