DRAFT MINUTES BEEF PROMOTION OPERATING COMMITTEE BEEF PROMOTION AND RESEARCH BOARD DENVER AIRPORT EMBASSY SUITES HOTEL DENVER, COLORADO

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1 DRAFT MINUTES BEEF PROMOTION OPERATING COMMITTEE BEEF PROMOTION AND RESEARCH BOARD DENVER AIRPORT EMBASSY SUITES HOTEL DENVER, COLORADO September 16-17, 2014 Call to Order Operating Committee Chairman called the meeting to order at 8:00 a.m. Members present, Chair, Vice Chair Guests/Staff Present Jim Handley FLBC Dean Black, CBB Heather Buckmaster, OKBC Laurie Bryant, CBB Laurie Munns, CBB John Freitag, WIBC Patti Buck, ANCW Barbara Jackson, CBB Kevin Thielen, KSBC Brett Morris, CBB Dina Reitzel, NMBC Wayne Watkinson, Legal Counsel Barry Carpenter, NAMA Mandy Carr Johnson, NCBA Martin Roth, NCBA Jennifer Orr, NEBPI/MICA Daren Williams, NCBA Rick Husted, NCBA Meghan Pusey, NCBA Bridget Wasser, NCBA Greg Hanes, USMEF Michelle Rossman, NAMA Alison Krebs, NCBA Jim Ethridge, NCBA Anne Marie Bosshamer, NEBC Blaine Lotz, LMA Lindsey Graber, LMA Chelsea Good, LMA Gary Sharp, CBB Ann Nogan, ANCW Melanie Fowle, ANCW Fred Lombardi, COBC Mike McCormick, CBB Kent Pruismann, CBB Leann Saunders, USMEF Angie Snyder, USDA/AMS Todd Johnson, NCBA Season Solorio, NCBA Shalene McNeill, NCBA Christie Brown, NEBPI/MICA Doug Evans, NCBA Forrest Roberts, NCBA Julie Sodano, NCBA Michele Murray, NCBA John Lundeen, NCBA Bill Sessions, NAMA Patty Lalich, USMEF Steve Wald, NCBA 1

2 Jackie Buehner, ANCW Sarah Bohnenkamp, ANCW Karli Millspaugh, NCBA Sherry Hill, ANCW Scott Stuart, NLPA Katie Ambrose, NLPA Beth Allen, NCBA Shawn Darcy, NCBA Diane Henderson, CBB Polly Ruhland, CBB Charlotte Coates, CBB Chad Smith, CBB Angela Mayfield, AFBFA Kim Stackhouse, NCBA Dan Halstrom, USMEF Julie Tesch, AFBFA Ronald Goss, USMEF Mike Miller, NCBA Brittany Schaneman, NCBA Phil Seng, USMEF Dean Oyster, CBB Courtney Kalous, CBB Lynn Heinze, CBB Katherine Ayers, CBB Quorum Established Chairman Brackett declared that a quorum was present to conduct business. Agenda Approved requested to add a discussion on competitive bidding under Other Business on the agenda. moved and seconded approval of the meeting agenda as amended. Motion passed. Minutes Approved moved and seconded approval of the August 2, 2014 minutes as ed. Motion passed. Financial Report, CBB secretary/treasurer, presented the Beef Board s financial statements for the period ending August The report was accepted. Veal Funding Ms. Anderson reported that the revenue attributable to veal collections in the coming fiscal year is anticipated to be $696,193. FY 2015 Budget Information Ms. Anderson explained the revised FY 2015 projected funds available for programs of $39,792,017 that included an additional $2,326,882 in FROEs received from contractors and CBB s release of funds from some budget categories coming in under budget in FY Ms. Anderson stated there are $39,966,073 in authorization requests, that creates a gap between available funding and submitted project proposals of $174,056. moved and seconded to target $2M out of the available funds for FY Discussion. Motion passed with 19 yes votes and 1 no vote. (Exhibit 1) 2

3 Evaluation Report, chairman of the Joint Evaluation Advisory Committee, presented a progress report of evaluation efforts, including the recent Return on Investment study. moved and second to ratify the Evaluation Advisory Committee minutes of July 30, Motion passed. moved and seconded to have the Operating Committee review and ratify the minutes of the Joint Evaluation Advisory Committee on a regular basis. Discussion. Motion passed. Presentation of and Action on Extension Requests and Amended ARs Michele Murray presented a no-cost extension request for 1410-CI, Tactic 1A-Consumer Education; Tactic 1B-Consumer Engagement; and Tactic 1D-Retail/Foodservice Influencer Engagement, NCBA. moved and seconded to extend the completion date of 1410-CI, Tactic 1A- Consumer Education, NCBA, from September 30, 2014 to December 31, Motion passed. moved and seconded to extend the completion date of 1410-CI, Tactic Tactic 1B-Consumer Engagement from September 30, 2014 to December 31, 2014 and Tactic 1D- Retail/Foodservice Influencer Engagement, NCBA, from September 30, 2014 to January 30, Motion passed. Mandy Carr Johnson presented a no-cost extension and amendment to 1406 R, Tactic 3A-Research to Improve Beef Sustainability and Science Outreach, NCBA. moved and seconded to amend 1406 R, Tactic 3A-Research to Improve Beef Sustainability and Science Outreach, NCBA and extend the completion date for Tactic 3A to May 31, Motion passed with 19 yes and 1 no vote. (Exhibit 2) The request to extend the completion date of 1415-II was withdrawn by the contractor due to funding obtained from a third party. Doug Evans, NCBA s CFO, presented the following amended NCBA implementation authorization requests: 1411-CI Consumer Information Implementation, NCBA - Reduce by $60, P Promotion Implementation, NCBA - Increase by $60,000 moved and seconded to amend NCBA s Implementation ARs by reducing 1411-CI Consumer Information by $60,000 and increasing 1404-P Promotion by $60,000. Motion passed. Presentation of FY 2015 Contract Wayne Watkinson, CBB legal counsel, presented a draft template of the 2015 contract between the Operating Committee and its contractors. Review of Operating Committee Schedule and Procedures Chairman Brackett asked if there were questions regarding the Operating Committee schedule or the procedures and hearing none, proceeded with the AR presentations. 3

4 Presentation of FY 2015 Authorization Requests by Program Budget Categories President and CEO Phil Seng and Chair-elect Leann Saunders, from the United States Meat Export Federation (USMEF), gave an overview of the export markets and USMEF s proposed FY 2015 plan of work. USMEF subcontracts with NCBA for work on the Foreign Marketing proposals. Foreign Marketing 1516-FM, NCBA/USMEF presented by Greg Hanes and Dan Halstrom, United States Meat Export Federation Strategy 4: Tactic 4A ASEAN Market Development Tactic 4B ASEAN Market Access Tactic 4C Caribbean Market Development Tactic 4D Caribbean Market Access Tactic 4E Central America Market Development Tactic 4F Central America Market Access Tactic 4G China/Hong Kong Market Development Tactic 4H China/Hong Kong Market Access Tactic 4I Europe Market Development Tactic 4J Europe Market Access Tactic 4K Japan Market Development Tactic 4L Japan Market Access Tactic 4M Korea Market Development Tactic 4N Korea Market Access Tactic 4O Mexico Market Development Tactic 4P Mexico Market Access Tactic 4Q Middle East Market Development Tactic 4R Middle East Market Access Tactic 4S Russia Market Development Tactic 4T Russia Market Access Tactic 4U South America Market Development Tactic 4V South America Market Access Tactic 4W Taiwan Market Development Tactic 4 Taiwan Market Access Tactic 4Y New Market Research & Development Research 1505-R, NCBA presented by Mandy Carr Johnson and Rick Husted, National Cattlemen s Beef Association Strategy 1: Tactic 1A Pre-Harvest Beef Safety Research & Science-Based Research Tactic 1B Nutrition Research & Scientific Affairs Tactic 1C Product Quality Research and Technical Services Tactic 1D Beef Innovations Tactic 1E Culinary Innovations Tactic 1F Market Intelligence Tactic 1G Foundational Demand Tracking Tactic 1H Millennial Listening Panel Tactic 1I Convenience Research Tactic 1J Taste Research Tactic 1K Value Research Tactic 1L Nutrition Research 4

5 1506-R, NCBA Research Implementation presented by Rick Husted 1506-R, NAMA presented by Michelle Rossman, North American Meat Association Strategy 1: Tactic 1A Post Harvest Beef Safety Research and Stakeholder Engagement Promotion 1501-P, NAMA presented by Michelle Rossman, North American Meat Association Strategy 1: Tactic 1A Integrated Consumer and Channel Marketing 1502-P, NCBA presented by Michele Murray Strategy 1: Tactic 1A Digital Advertising 1503-P, NCBA Promotion Implementation presented by Michele Murray Consumer Information 1507-CI, ANCW presented by Sarah Bohnenkamp, American National CattleWomen Strategy 1: Tactic 1A Retail Tactic 1B Campus Tactic 1C Metro Cooking Event Tactic 1D Creative Social Media Strategy 2: Tactic 2A K-12 Beef Ed Research 1508-CI, MICA presented by Christie Brown and Jennifer Orr, Meat Import Council of America Strategy 1: Tactic 1A Consumer Influencers Tactic 1B Channel Influencers Tactic 1C Consumer Events 1509-CI, AFBFA presented by Julie Tesch and Angela Mayfield, American Farm Bureau Foundation for Agriculture Strategy 1: Tactic 1A Nutrition/Quality Game Strategy 2: Tactic 2A Beef Heritage Game Tactic 2B Mobile App Tactic 2C Ag Mag Tactic 2E Weeklong Urban Outreach 1510-CI, NCBA presented by Michele Murray and Season Solorio Strategy 1: Tactic 1A Consumer Content and Engagement Tactic 1B Retail/Foodservice Content and Engagement Strategy 2: Tactic 2A Beef Advocacy Training Tactic 2B U.S. Farmers and Ranchers Alliance Tactic 2C Beef Production Engagement and Education Strategy 3 Tactic 3A Educational Programs (BQA) 1511-CI, NCBA Consumer Information Implementation presented by Season Solorio Industry Information 1513-II, NLPA presented by Scott Stuart and Katie Ambrose, National Livestock Producers Association Strategy 2: Tactic 2A Symposium Development 5

6 Tactic 2B Tactic 2C Producer Information Consumer Information 1514-II, NCBA presented by Season Solorio Strategy 2: Tactic 2A Issues Management and Crisis Preparedness 1518-II, NCBA presented by Season Solorio Strategy 2: Tactic 2A Protect and Defend (Issues Management Crisis Reserve) 1515-II, NCBA Industry Information Implementation presented by Season Solorio 1512-II, NAMA presented by Michelle Rossman, North American Meat Association Strategy 2: Tactic 2A Veal Issues Management Strategy 3: Tactic 3A Veal Quality Assurance Producer Communications 1517-PC, CBB presented by Lynn Heinze, Cattlemen s Beef Board Strategy 5: Tactic 5A National Communications Tactic 5B Conduit Tactic 5C State Support Tactic 5D Independent Producer Attitude Surveys (PAS) Identification of ARs to be Set Aside for Further Discussion The following authorization requests were set aside for further consideration and discussion: 1516-FM - National Cattlemen s Beef Association/United States Meat Export Federation 1505-R - National Cattlemen s Beef Association 1506-R - Research Implementation, NCBA 1504-R - North American Meat Association 1501-P - North American Meat Association 1502-P - National Cattlemen s Beef Association 1503-P - Promotion Implementation, NCBA 1507-CI - American National CattleWomen 1509-CI - American Farm Bureau Foundation for Agriculture 1510-CI - National Cattlemen s Beef Association 1511-CI - Consumer Information Implementation, NCBA 1514-II - National Cattlemen s Beef Association 1515-II - Industry Information Implementation, NCBA 1512-II - North American Meat Association 1517-PC - Cattlemen s Beef Board Action on FY 2015 ARs moved and seconded to fund 1508-CI, Meat Import Council of America, in the amount of $350,800. Motion passed. moved and seconded to fund 1513-II, National Livestock Producers Association, in the amount of $45,000 and 1518-II - Issues Management Crisis Reserve (capped at $2 million only if the AR is activated by a vote of checkoff leadership in the event of a crisis). Motion passed. 6

7 The Operating Committee recessed at 6:15 p.m. Wednesday, September 17 The Operating Committee reconvened at 8:00 a.m. Action on FY 2015 Authorization Requests Chairman Brackett asked the Committee if there were any additional ARs to be set aside. No additional ARs were set aside. moved and seconded to fund 1516-FM, National Cattlemen s Beef Association/United States Meat Export Federation, in the amount of $7,634,898. Discussion. Motion failed with 10 yes votes and 10 no votes. (Exhibit 3) moved and seconded to fund 1516-FM, National Cattlemen s Beef Association/United States Meat Export Federation, in the amount of $7,730,200. Discussion. Motion passed. moved and seconded to fund 1505-R, National Cattlemen s Beef Association, in the amount of $5,495,244 and 1506-R Implementation, National Cattlemen s Beef Association, in the amount of $3,837,825. Motion passed. moved and seconded to fund 1504-R, North American Meat Association, in the amount of $400,000. Motion passed. moved and seconded to fund 1501-P, North American Meat Association, in the amount of $631,250. Discussion. moved and seconded to table the motion to fund 1501-P until the next North American Meat Association authorization request was under consideration for funding. Motion passed. moved and seconded to fund 1502-P National Cattlemen s Beef Association in the amount of $6,830,742 and 1503-P Implementation, National Cattlemen s Beef Association in the amount of $572,731. Motion passed. moved and seconded to fund 1509-CI, Tactics 2A, 2C, and 2D, American Farm Bureau Foundation for Agriculture, in the amount of $105,850. Discussion. moved and seconded to amend the motion by adding Tactic 2B to the motion and fund 1509-CI, Tactics 2A, 2B, 2C, and 2D, American Farm Bureau Foundation for Agriculture, in the amount of $189,150. Discussion. Motion passed with 17 yes votes and 3 no votes. (Exhibit 4) The main motion as amended failed with 7 no votes and 13 yes votes. (Exhibit 5) moved and seconded to fund 1509-CI, Tactics 2A, 2B, and 2C, American Farm Bureau Foundation for Agriculture in the amount of $133,650. Discussion. Motion passed. 7

8 moved and seconded to fund 1509-CI, Tactic 1A, American Farm Bureau Foundation for Agriculture, in the amount of $33,350. Discussion. Motion passed with 18 yes votes and 2 no votes. (Exhibit 6) moved and seconded to fund 1509-CI, Tactic 2D, American Farm Bureau Foundation for Agriculture, in the amount of $55,500. Discussion. Motion passed with 17 yes votes and 3 no votes. (Exhibit 7) moved and seconded to fund 1510-CI National Cattlemen s Beef Association in the amount of $5,708,047 and 1511-CI Implementation, National Cattlemen s Beef Association, in the amount of $3,812,781. Discussion. moved and seconded to amend the motion by removing Tactic 2B and fund 1510-CI, National Cattlemen s Beef Association, in the amount of $5,489,113. Discussion. Motion failed with 11 no votes and 9 yes votes. (Exhibit 8) Following further discussion, the motion as presented passed with 16 yes votes and 4 no votes. (Exhibit 9) moved and seconded to fund 1514-II, National Cattlemen s Beef Association, in the amount of $862,600 and 1515-II Implementation, National Cattlemen s Beef Association, in the amount of $643,228. Motion passed. moved and seconded to fund 1501-P, North American Meat Association, in the amount of $550,000 and 1512-II, North American Meat Association, in the amount of $115,625. Discussion. moved and Steve Hansen seconded to amend the motion to vote on the above listed ARs separately. Motion passed. The main motion as amended to fund 1512-II, North American Meat Association, in the amount of $115,625. Motion passed with 17 yes votes and 3 no votes. (Exhibit 10) The main motion as amended to fund 1501-P, North American Meat Association, in the amount of $550,000. Motion passed. moved and seconded to fund 1517-PC, Cattlemen s Beef Board, in the amount of $1,600,000. Discussion. moved and seconded to amend the motion and fund 1517-PC, Cattlemen s Beef Board, in the amount of $1,500,000. Discussion. Motion passed with 18 yes votes and 2 no votes. (Exhibit 11) Main motion as amended passed. moved and seconded to fund 1507-CI, American National CattleWomen, Tactic 1 A in the amount of $200,000, 1B in the amount of $75,000, 1C in the amount of $92,000, and 1D in the amount of $79,000 for a total funding of $446,000. Discussion. moved and seconded to amend the motion and fund only Tactic 1D of 1507-CI, American National CattleWomen in the amount of $79,000. Discussion. Motion passed with 15 yes votes and 5 no votes. (Exhibit 12) 8

9 The main motion as amended passed. moved and seconded to fund Tactic 1A of 1507-CI, American National CattleWomen, in the amount of $200,000 with at least five retail events in major metropolitan markets. Motion passed. moved and seconded to fund Tactic 1C of 1507-CI, American National CattleWomen, in the amount of $92,000. Motion passed. moved and seconded to approve an amended CBB FY 2015 budget in the amount of $39,048,323. Discussion. Motion failed with 7 no votes and 13 yes votes. (Exhibit 13) Britany Howell moved and seconded to fund Tactic 1B of 1507-CI, American National CattleWomen, in the amount of $50,000. Motion failed with 15 no votes and 5 yes votes. (Exhibit 14) moved and seconded to reduce funding of 1502-P by $250,000 and fund in the amount of $6,580,742. Discussion. Motion failed. moved and seconded to fund the FY 2015 authorization requests in the amount of $39,048,323. Motion passed. The committee directed staff to produce a summary of the funding of all authorization requests by tactic. Action on FY 2014 Budget Amendment moved and seconded to approve the amended CBB FY 2014 budget. Motion passed. Action on FY 2015 Budget Amendment moved and seconded to approve the amended CBB FY 2015 budget in the amount of $41,842,573. Motion passed. Action on FY 2015 Contract Chairman Brackett asked the Committee if there were any additional questions on the FY 2015 contract template. moved and seconded acceptance of the FY 2015 contract template as presented. Motion passed. Other Business moved and seconded a motion to request that a working group be formed, consisting of CBB members, Federation members, and contractor representatives, to develop a set of digital eco-system standards to be brought to the Operating Committee for adoption. If approved by the Operating Committee, these standards would apply to contractors seeking Beef Board funding for FY 2016 ARs. Discussion. Motion passed. 9

10 moved and seconded a motion to form a joint CBB/Federation task force to study the current veal funding policy and formula and report back to the Operating Committee with recommendations as appropriate. Discussion. Motion passed. moved and seconded a motion to standardize the authorization request format to include all contractor implementation in a single authorization request. Discussion. Motion passed. suggested that the Operating Committee consider requesting proposals to define what agriculture educational activities are currently available in American classrooms and then develop an integrated/coordinated approach to K-12 agricultural education. Chairman Brackett thanked the committee for its work this year. Adjourn A motion was made to adjourn. The meeting adjourned at 11:30 a.m. 10

11 EHIBIT 1 Vote to target $2M out of the available funds for FY Passed TOTAL 19 YES 1 NO 11

12 EHIBIT 2 Vote to amend 1406 R, Tactic 3A-Research to Improve Beef Sustainability and Science Outreach, NCBA Passed TOTAL 19 YES 1 NO 12

13 EHIBIT 3 Vote to Fund 1516-FM, USMEF in the amount of for $7,634,898 Failed TOTAL 10 YES 10 NO 13

14 EHIBIT 4 Vote to Amend the Main Motion by adding Tactic 2B to the Main Motion and Fund 1509-CI, Tactic 2A, 2C, and 2D, American Farm Bureau Foundation for Agriculture in the amount of $189,150 Passed TOTAL 17 YES 3 NO 14

15 EHIBIT 5 ROLL CALL VOTE TALLY Vote on Main Motion as Amended to Fund 1509-CI, Tactic 2A, 2B, 2C, and 2D, American Farm Bureau Foundation for Agriculture in the amount of $189,150 Failed TOTAL 13 YES 7 NO 15

16 EHIBIT 6 Vote to Fund 1509-CI, Tactic 1A, American Farm Bureau Foundation for Agriculture, in the amount of $33,350 Passed TOTAL 18 YES 2 NO 16

17 EHIBIT 7 Vote to Fund 1509-CI, Tactic 2D, American Farm Bureau Foundation for Agriculture, in the amount of $55,500 Passed TOTAL 17 YES 3 NO 17

18 EHIBIT 8 Vote to Amend 1510-CI, National Cattlemen s Beef Association, by removing Tactic 2B and fund in the amount of $5,489,113 Failed TOTAL 9 YES 11 NO 18

19 EHIBIT 9 Vote on Main Motion to Fund 1510-CI, National Cattlemen s Beef Association, in the amount of $5,708,047 Passed TOTAL 16 YES 4 NO 19

20 EHIBIT 10 Vote to Amend the Main Motion to Fund 1512-II, NAMA, in the amount of $115,625. Passed TOTAL 17 YES 3 NO 20

21 EHIBIT 11 Vote to Amend the Main Motion to Fund 1517-PC, CBB, in the amount of $1,500,000. Passed TOTAL 18 YES 2 NO 21

22 EHIBIT 12 Vote to Amend the Main Motion to Fund 1507-CI, Tactic 1D, ANCW, in the amount of $79,000. Passed TOTAL 15 YES 5 NO 22

23 EHIBIT 113 Vote on the Amendment to the CBB FY 2015 Budget Needed to Fund all of the Approved ARs in the amount of $39,048,323 Failed TOTAL 13 YES 7 NO 23

24 EHIBIT 14 Vote to Fund 1507-CI, Tactic 1B, ANCW, in the amount of $50,000. Failed TOTAL 5 YES 15 NO 24