AUTHORIZATION REQUEST FOR FY 2019

Transcription

1 AUTHORIZATION REQUEST FOR FY 2019 CBB Budget Category: Industry Information Name of Contractor: National Livestock Producers Association Name of Organization Subcontracting: National Institute for Animal Agriculture Start Date: 10/1/2018 End Date: 9/30/2019 AR OVERVIEW AR Description: Cattle disease traceability is a topic that has been top of mind for beef industry leaders for many years and adopting an individual animal ID traceability system(s) to equip the beef industry to effectively manage a disease outbreak, while enhancing both the domestic and global trust in beef and export markets, has been specifically identified as a key priority in the Beef Industry Long Range Plan. The concept of traceability is not new, however concerns about technology, privacy, and economic costs have challenged the development of a cattle disease traceability system. Today, industry stakeholders recognize the need for a viable cattle disease traceability system. The costs of current traceability systems with gaps are incredible. Some estimate the industry should expect to lose more than $5 billion should a significant disease outbreak occur, although it can be difficult to assess the total potential financial impacts because of the complexities of the beef market, variabilities in production, and the unknown longterm impacts caused by low consumer trust of the safety of the beef industry. According to a 2007 study on the economic impacts of a Foot and Mouth Disease (FMD) outbreak in the United States, the total economic impact if FMD was introduced at five large feedlots in Southwest Kansas would be nearly $1 billion on the area. Based on findings of another study, a largescale FMD outbreak could result in approximately $188 billion in losses to producers and consumers. Over the recent years we ve seen markets react quickly to small scale disease outbreaks, causing closures and subsequent demands for verification of beef information. Export markets are as sensitive as ever to meat production methods and concerns have driven some countries to place bans on use of specific technologies, 1

2 including growth promotants and GMOs and beef demand is being driven by the ability to meet requests for individual animal data. These economic studies and past export market experiences provide strong evidence of the critical ability to stop the spread of disease in order to minimize the impact of an outbreak on the industry and on consumer demand. The 2017 Consumer Image Index (funded by the beef checkoff) indicates less than half of consumers think the beef industry is doing everything they can do to make beef safe, and only 30 percent have strong beef industry trust. Couple these trust issues with the significant challenges of slowing and stopping a disease outbreak with the current Animal Disease Traceability system, and the impacts could be devastating to the beef industry for years to come. Consumer demand for transparent beef is further punctuated by the fact that many retailers now offer private label solutions to meet increased demand for information about how beef is raised, including where it was raised, how old it was when harvested, how its health was managed, etc. Consumer behavior studies indicate When there is not immediately available info, there is distrust, and an endtoend cattle disease traceability system could help to fill the voids consumers currently see. Transparency is an overarching, evolved value for consumers and it s driving buying decisions for a growing number of consumers, according to Deloitte Food Value Equation Survey 2015, Deloitte Analysis. The Transparency Roadmap for Food Retailers: Strategies to Build Consumer Trust report proposes the trustbuilding benefits of transparency is no longer optional, but rather a basic consumer expectation. These reports assert consumers don t typically use the word transparency, but rather refer to openness, honesty, clear, public, visible, not hidden and they want access to many types of product/brand information and want to access it across mediums (e.g., website, instore, apps, etc.) in real time. The implementation of individual animal ID solutions would support the infrastructure required to provide consumers the information being demanded, and will help to provide assurances that in the event of a debilitating animal disease outbreak, information can be quickly accessed, allowing for issues to be quickly mitigated. Speed of identifying and locating atrisk cattle is paramount in minimizing the damage to the industry and overall beef demand and the lack of an endtoend traceability system makes this impossible. That is why industry leaders have come together to work collaboratively to create practical traceability solutions. This plan of work is designed to support and intensify these efforts. An example of the work being done is that of the industryled Cattle Traceability Working Group. Nearly 40 different individuals and 28 organizations have been working together for several months to map out realistic solutions to fill in the gaps of current animal disease traceability systems, and a high level of momentum is being built over 2

3 key areas which are critical to implementing systems that meet the needs of all those engaged in the beef value chain, including communication and transparency. Another industryled group working to create credible traceability solutions is the Kansas based Cattle Trace Pilot (launched July 2018), which is being executed through a cooperative relationship between the Kansas Department of Agriculture Division of Animal Health (KDAH, the Recipient) and the United States Department of Agriculture (USDA), Animal and Plant Health Inspection Service (APHIS), Veterinary Services (VS). The primary focus of the pilot project is to build and test a purposebuilt infrastructure for cattle disease traceability that will increase the ability to trace cattle movement in order to identify atrisk cattle in a disease situation, and thus, minimize the impact a disease outbreak would have throughout the industry and on overall beef demand. The work of the Cattle Trace pilot will include collaborations with academia, veterinarians, state health officials, cattle associations, livestock markets, Kansas State Beef Council, beef producers and more. Communication has been identified as one of the most important and challenging aspects of the pilot. In addition to communicating with producers and industry stakeholders about the traceability system, the pilot also has an opportunity to communicate with consumers and influencers about steps beef producers are taking to improve safeguards and producing safe, wholesome beef products. The progress being made within these traceabilitycentered groups would benefit from extended support from the beef industry and this new proposed plan of work for the beef checkoff provides funding to administer collaborative communication strategy sessions to increase awareness and understanding of the benefits of an endtoend cattle disease traceability system. This type of collaboration will shape a strong communication framework that will provide the beef industry with tools and support needed to educate and communicate with consumers and influencers about new individual cattle disease traceability system(s), in an effort to build trust and confidence in beef and beef products. These communication tools will address the strategies being implemented to assure food safety and will help to demonstrate a meaningful commitment to transparency in modern beef production. The goal is to create support for a genuine and twoway dialogue to build trust with consumers and assure alignment with consumer priorities. The coordinated time spent working in partnership with traceability stakeholders, like the Cattle Traceability Working Group and the Cattle Trace Pilot team, will deliver valuable experience and tested communication and learning tools which can be leveraged in the future on a potential nationwide program that leverages the use of technologies that trace cattle disease and foodborne illnesses. This plan allows for the collaborative design, development, implementation, and evaluation of communication and training strategies, tailored plans, targeted tools and 3

4 interactive activities to be used to communicate and educate audiences around facts and concerns linked to traceability. As industry stakeholders through each step of the supply chain become more confident about the benefits of a traceability system, they will be able to share these messages with consumers and influencers to build trust in the safety of beef. The strategy is to start within a small segment of the beef industry, test the approach and tools, modify based on feedback to change or improve and then take the lessons learned, along with the finely tuned communication content to a larger audience (as capacity and industry support grows). Cattle disease traceability is an important component in a safe, wholesome and healthy food supply that consumers trust. The communication framework and activities delivered in this plan of work will help to create urgency to adopt new ways of doing business, mitigating impacts of disease outbreaks and capturing domestic and foreign market opportunities through individual animal ID traceability systems. Total Cost of this AR Source of Funding Direct Costs Implementation Total CBB/BPOC Funding $31,000 $23,000 $54,000 Request: Federation of SBCs Funding Request: (Informational Only) $0 $0 $0 Other Funding $0 $0 $0 Source(s): (Informational Only) Total Cost $31,000 $23,000 $54,000 Long Range Plan Core Strategies Addressed by this AR (Check all that apply) Grow Beef Exports Consumer Trust Protect & Enhance Beef s Value Proposition Digital properties and target audience(s) addressed by this AR: Beef producer audiences are key to this plan of work, and targeted groups who work with beef producers, including veterinarians and state animal health officials. Digital properties impacted could include social media channels, websites, etc. of industry partners. 4

5 PROGRAM INFORMATION FOR THIS AR Tactic A Tactic Name: Cattle Traceability Communication Strategy Development & Tool Development Tactic Description: Working in partnership with the Cattle Trace Pilot and other industry stakeholders, a Cattle Traceability communication framework will be developed, including communication objectives, proactive outreach messages, videos, downloadable FAQs and producer talking points, trainthetrainer content, web and social media content, digital traceability images, presentation slide decks, trade media and influencer outreach, and other engaging tools to be used to enhance future traceability conversations and presentations. Communication content will answer important questions like: 1. What is the goal of individual animal identification? 2. What are the implications of not having an endtoend cattle disease traceability system? 3. Why is the industry changing? 4. What are the benefits? The framework development will also include creating a traceability speaker schedule and plan which identifies and leverages recognized leaders in the beef industry at key industry events. Additionally, it will support the design of online traceability engagement tools and events that can be offered within targeted communities (webinars, social media livestream conversations, etc.), knowing the reach of the traceability messages can be amplified by using these communication channels. Educational materials and events will be made to create transparent conversations around how a traceability system can be implemented in current production models and also provide important assurances to consumers and influencers about how the industry is working to raise healthy, safe beef. The communication strategies and tools developed under this framework will be central to building an awareness of the importance of animal disease traceability in minimizing the overall impact of a disease outbreak, including affects to industry and to consumer demand. Measurable Objectives (List at least three outcomebased objectives for this tactic): 1. Develop downloadable communication tools and support for online, facetoface, and special industry influencer events by March 1, 2019 with a goal of reaching 530 KOLs. 5

6 2. 80% of key stakeholders will feel high levels of confidence in the plan and tools developed to support the Traceability Communication Framework, as measured by a formal attitudinal survey to be completed by April 1, Develop executive report of communication framework learnings and future recommendations necessary to educate and communicate regarding a national cattle disease traceability system by September 30, Performance Efficiency Measures (PEM are not required for research ARs) Consumer Reach Goal: N/A Consumer Engagement Goal: N/A Voice/KOL Reach Goal: 530 Voice/KOL Engagement Goal: 150 LRP Strategic Initiatives Addressed by this Tactic (Check all that apply) Drive Export Growth Grow Consumer Trust Protect & Enhance Business Climate Beef s Value Proposition Adopt traceability systems Increase market access Promote unique attributes of U.S. beef Ensure antibiotic stewardship Certify & verify production practices Ensure beef safety Protect beef s image Engage beef advocates Research & innovate new production tech. Ensure beef s inclusion in dietary recommendations Motivate producers & stakeholders to engage Develop crises management plans Attract, develop & enable the next generation Revolutionize beef marketing & merchandising Measure & improve sustainability Research & communicate beef s nutritional benefits Connect & comm. with consumers Improve product & production efficiency Defend beef s product identity Committee(s) to Score this Tactic (Check all that apply) Consumer Trust Export Growth Innovations Nutrition & Health Safety Investor Relations Mkt. Research 6

7 Tactic B Tactic Name: Producer Engagement and Collaboration Tactic Description: This tactic supports the execution of the planned communication events and new tools developed in Tactic A s Traceability Communication Framework. This work will amplify key messages that will help producers feel better educated about the benefits of individual animal traceability solutions and how they can be leveraged to increase consumer trust and thus beef demand. Online events (webinars, livestreams on social media platforms, etc.), inperson presentations during targeted industry meetings and workshops, and special events and activities will be conducted, providing platforms for important cattle traceability conversations that illustrate factbased content explaining the benefits of traceability systems, to ensure food safety. Authentic conversations around the gaps of current animal disease traceability systems, and examples of what might happen in the event of FMD (or other industry crippling disease event) will be central to the dialogues to facilitate learning. This tactic includes coordinating speaking engagement details, travel planning, trainthetrainer tasks, communication reporting, evaluation of realworld application of tools developed and measuring results and impact of the work, and making recommendations for future enhancement and amplification. Measurable Objectives (List at least three outcomebased objectives for this tactic): 1. A minimum of ten online and facetoface traceability communication events are conducted by September 1, Measure perceived knowledge shift of audiences using pre and post assessments for all online and inperson events conducted by September 1, Results will show more than half of audiences indicate they have a clearer understanding of the traceability landscape and future opportunities to drive beef demand. 3. A minimum of 17,000 beef producers will be exposed to the newly developed cattle traceability messages by September 30, Performance Efficiency Measures (PEM are not required for research ARs) Consumer Reach Goal: N/A Consumer Engagement Goal: N/A Voice/KOL Reach Goal: 30,000 Voice/KOL Engagement Goal: 17,000 7

8 LRP Strategic Initiatives Addressed by this Tactic (Check all that apply) Drive Export Growth Grow Consumer Trust Protect & Enhance Business Climate Beef s Value Proposition Adopt traceability systems Increase market access Promote unique attributes of U.S. beef Ensure antibiotic stewardship Certify & verify production practices Ensure beef safety Protect beef s image Engage beef advocates Research & innovate new production tech. Ensure beef s inclusion in dietary recommendations Motivate producers & stakeholders to engage Develop crises management plans Attract, develop & enable the next generation Revolutionize beef marketing & merchandising Measure & improve sustainability Research & communicate beef s nutritional benefits Connect & comm. with consumers Improve product & production efficiency Defend beef s product identity Committee(s) to Score this Tactic (Check all that apply) Consumer Trust Export Growth Innovations Nutrition & Health Safety Investor Relations Mkt. Research SUPPLEMENTAL INFORMATION FOR THIS AR 1. Will all work detailed in this AR be completed by the end of the fiscal year? Yes If not, please provide an explanation. 2. Please explain changes from FY 2018 approved AR: This is a new AR for FY List any proposed subcontractor/agencies that will be used to complete the work in this AR. None earmarked at this time. To be determined. 4. Will all work with subcontractors be competitively bid? Yes If not, why not? 5. Please list any relationships between this AR and projects previously funded by the Operating Committee: None. 8

9 DETAILED BUDGET SUMMARY: CBB/BPOC Funding Request: Committee Tactic Tactic Name Funding Source Direct Implementation Total Consumer Trust Communication BPOC $ 15,000 $ 14,000 $ 29,000 A Strategy & Tools Consumer Trust Beef Producer BPOC $ 16,000 $ 9,000 $ 25,000 B Engagement & Collaboration AR Totals $ 31,000 $ 23,000 $ 54,000 Federation of SBCs Funding Request: (Informational Only) Committee Tactic Tactic Name Funding Source Direct Implementation Total Consumer Trust A Communication Strategy & Tools Consumer Trust B Beef Producer Engagement & Collaboration AR Totals Federation $ $ $ Federation $ $ $ $ $ $ Other Funding Source(s): (Informational Only) Committee Tactic Tactic Name Funding Source Direct Implementation Total Consumer Trust A Communication Strategy & Tools Consumer Trust B Beef Producer Engagement & Collaboration AR Totals $ $ $ $ $ Total Cost Summary for All Funding Sources: (Informational only) Committee Tactic Tactic Name Funding Source Direct Implementation Total Consumer Trust A Communication All $ 15,000 $ 14,000 $ 29,000 Strategy & Tools Consumer Trust B Beef Producer All $ 16,000 $ 9,000 $ 25,000 Engagement & Collaboration AR Totals $ 31,000 $ 23,000 $ 54,000 9

10 Summary of Prior Year Actual Expenses: FY 2018 Actual Expenses (through May 30, 2018) CBB/BPOC FSBCs Other Source(s) Total Direct Cost Impl. Total AR Total $ $ $ $ $ Historical Summary of Budgets and Expenses Total Approved Budgets Total Actual Expenses FY 2017 FY 2016 FY 2015 FY 2017 FY 2016 FY 2015 AR Total 10