1. Proposed Joint Program Advisory Committee Structure Craig Uden, Chair Federation of State Beef Councils Hank Maxey, Chair CBB Special Committee on Committee Structure

2. 2 Background New Joint Committee Agreement between CBB and Federation adopted in February 2012 Working group with CBB and Federation members examined checkoff’s joint program committee structure to assure “best practices”

3. 3 Background Proposal shared with NCBA officers and NCBA Executive Committee for discussion on June 26 and again on July 18 Proposal shared with CBB Executive Committee on June 27. Executive Committee unanimously recommended approval by the full Beef Board

4. 4 Joint Checkoff Committees Critical Success Factors Joint Checkoff Advisory Committees should: Strategically align to the Beef Industry Long Range Plan and research- based beef demand drivers Be flexible enough to change with industry needs Be efficient in the decision-making process and provide valuable input to program staff and Operating Committee Increase awareness about Beef Checkoff Program – both current situations that drive demand and outcomes from checkoff-funded programs – among greater number of producers Engage committee members and provide them a greater sense of ownership in their beef checkoff.

5. 5 LRP Vision and Mission An industry united around a common goal of being the world’s most trusted and preferred source of beef and beef products Provide the safest, highest-quality, most consumer friendly beef and beef products in an environmentally and economically sustainable manner Both CBB and Federation support the LRP

6. 6 Checkoff-Associated Beef Industry LRP Core Strategies Improve domestic consumer preference for beef Capitalize on global growth opportunities Strengthen image of beef and the beef industry Protect and enhance our freedom to operate

7. 7 Beef Demand Drivers, Opportunities Price/Value Food Safety Health and Nutrition Convenience Taste

8. 8 Consumer Demand Driver Subcommittees (of the Domestic Consumer Preference Committee) LRP Core Strategy Committees Domestic Consumer Preference Committee Global Growth Committee Beef's Image Committee Freedom to Operate Committee Convenience Subcommittee: Fulfill consumer expectations for selection, preparation and ease of use. Market Research Working Group: Chair and VC of Federation will appoint 6 members, Chair and VC of the CBB will appoint 6 members from sitting committee members Safety Subcommittee: Continually improve safety, while maintaining and improving consumer confidence in beef. Producer Communications Working Group: Chair and VC of Federation will appoint 6 members, Chair and VC of the CBB will appoint 6 members from sitting committee members Value Subcommittee: Satisfy consumer preference, at a fair price. Nutrition & Health Subcommittee: Enhance consumer knowledge of positive health and nutrition benefits. Taste Subcommittee: Deliver a consistent and memorable eating experience.

9. 9 Gut Check: Critical Success Factors This model accomplishes the five critical success factors in these ways: Efficiency in decision making Greater collaboration across program areas Enhanced input to Operating Committee Proposed plan of work will be solution-focused and cross-functional Strategic alignment Committees match up with LRP core strategies Committees focused on achieving LRP objectives.

10. 10 Gut Check: Critical Success Factors Flexible to change If next LRP has new core strategies, committees change to align Increased awareness Checkoff strategic function across programs Greater engagement and ownership by committee members

11. Industry Scan Safety Value Nutrition & Health Convenience Work Flow of Checkoff Program Advisory Subcommittees & Committees Taste Consumer Demand Driver Subcommittees* LRP Core Strategy Committees** Freedom to Operate Beef’s Image Global Growth Domestic Consumer Preference Beef Promotion Operating Committee (BPOC) (Approves ARs and determines funding) Serves as a general session for all committee members to learn about beef demand topics. *Subcommittees recommend ARs to full committee **Advisory committees recommend ARs to the BPOC

12. 12 Questions ?