The NBS is proposing an increase of $1.50 to the National Check-Off that would generate roughly $16-17 million allocated to:
- Canada Beef (marketing): $9.5 million.
- Beef Cattle Research Council: $3.3 million.
- Issues Management: $1 million.
- Administration: $525,000
- Provincial Investments in Research and Marketing: $2 million.
The increase in check-off is to allow a few things. First is to fund the industry portion of the next Beef Science Cluster. That application will depend on what industry will have allocated to research over a five year period in the next Growing Forward. The funds from the increase will also replace the “Legacy Funds.” The “Legacy Funds” were $80 million allocated to the beef industry over 10 years by the Government of Canada ($50 million) and Government of Alberta ($30 million). This money was used for marketing and research activities over the course of the last 10 years and is now gone.
Most of these funds will be used to leverage government and other funders in research and promotion. Government has grown increasingly forceful that they will be there to partner with industry where industry is investing but will not be there on their own. Matching levels have also come down requiring industry to put up more cash to access government match. It has been noted by governments that the share of receipts the beef industry invests in marketing and research is less than others. This increase would leave beef investments at a lower level than supply managed producers but higher than the hog industry.