Study: ALB Promotional Efforts Increased Revenue
August 1, 2014

Texas A&M released results from its recent economic study, Returns to Stakeholders from the American Lamb Checkoff Program: A Supply Chain Analysis. The study was designed to help the American Lamb Board (ALB) evaluate the efficiency and effectiveness of the lamb checkoff program and ensure its promotional efforts deliver a good return on the industry's investment. The results of the study show that the average return for every dollar invested into the program during the time period ALB has been promoting American lamb was roughly $14 to the industry stakeholders.

Using the econometric model developed for this study (LamMod), a simulation analysis was conducted to answer two main questions:
  1. Has the lamb checkoff program effectively increased the consumption of American lamb as opposed to imported lamb?
  2. What have been the returns to U.S. sheep and lamb industry stakeholders from their investment in the lamb checkoff program?
According to the report, the lamb checkoff program has generated a positive lift for both domestic and imported lamb but the lift in imports has been much smaller (1.38 million pounds) than for domestic lamb consumption (11.5 million pounds). In addition, the lamb checkoff program has effectively increased U.S. lamb demand and created a positive lift for all sectors of the industry with net returns well in excess of the cost of the lamb checkoff program. The lamb checkoff program has worked well in its design not only to boost lamb demand but also to provide roughly equivalent returns to each stakeholder group -- producers, feeders and processors.

"We are incredibly pleased with the results that this report has shown us," said Dan Lippert, ALB chairman. "We know that we still have work to do, but this report shows that all of the efforts that our board and stakeholders have been working towards are beneficial to the entire American lamb industry."

The full report can be found at www.lambcheckoff.com.