Milling & Baking News - January 30, 2018 - 7

Editorial

Powerful case for wheat foods checkoff program

n coming months, grain-based foods executives care not to underinvest in this program.
likely will face a decision of monumental imporConversely, the researchers warn advocates against
tance over whether to back a wheat checkoff pro- overstating the potential impact of a checkoff program
gram to fund the largest industry effort ever aimed at or characterizing checkoff to constituents as a "panaboosting the domestic market for wheat-based foods. cea to their financial problems in an effort to gain supJudging by how the process has proceeded under the port for the establishment of such a program." Even
guidance of the Grain Foods Foundation, challenges with a successful checkoff program, forces pressuring
currently facing the industry and the long, successful demand will not magically disappear.
track record of such programs for other commodities,
Still, those forces include grain-bashing critics prothe case for supporting the initiative is compelling.
moting shoddy science, something the checkoff proFor those grappling with the important mix of is- gram will allow the industry to counter more vigorsues surrounding a wheat checkoff program, a 2016 ously than ever before.
research paper by agricultural economists Gary W.
Grains remain the largest energy source in the AmerWilliams and J. Mark Welch of Texas A.&M. University ican diet and as the leading food category finds itself
offers a good starting point, answering many funda- forever with a large target squarely on its back.
mental questions that require clear, objective answers.
In fact, it is the need to level the playing field with
Most basic among these is whether agricultural check- competitive foods that makes pursuit of a checkoff prooff promotion programs work.
gram so urgent. The degree to
Grains remain the largest energy
Answering in the affirmative, the
which grain-based foods stands
source in the American diet and
researchers cite consensus across
nearly alone without a checkoff
as the leading food category
a range of studies conducted by
program may not be widely apfinds itself forever with a large
numerous researchers looking
preciated by millers and bakers.
target squarely on its back.
at many different checkoff comOf the roughly 2,500 calories conmodities. Specifically, programs overwhelmingly have sumed daily, grains in 2015 accounted for about 524, or a
been effective in increasing sales by more than neces- little more than a fifth, according to U.S. Department of
sary to cover the checkoff funded costs. The researchers Agriculture data. Excluding grains and more indulgent
estimate that benefit-to-cost ratios, a key measure of a energy sources such as sweeteners and added fats, enercheckoff program's effectiveness, vary widely but gen- gy intake totals about 959 calories a day from remaining
erally range between $2 and $10 for each dollar invested. food sources, including dairy, protein and produce. It is
In milling and baking industry discussions about a pro- this collection of eating options that represents the playspective checkoff program to date, it is the unprecedented ing field on which baked foods has and will continue
cost of the program, potentially in the tens of millions of to compete. Of the 959 calories from competitive foods,
dollars, that understandably represents the single great- 675 calories, or 70%, come from products with ongoing
est concern. While worries about the near-term financial checkoff programs. The only major food source other
impact of the investment are understandable, the vali- than grains without a checkoff is poultry (accounting for
dated track record of return-on-investment of checkoff 166 calories per day). Realism is required when setting
programs should go a long way to ease apprehensions.
expectations for what may be accomplished through a
Interestingly, the researchers caution that pro- checkoff program, and millers and bakers must be asgrams with the highest benefit-to-cost ratios should sured program resources will be directed to the segnot be judged the most successful. Instead, very ments that fund it. Still, it must be appreciated that failhigh such ratios suggest underinvestment by the in- ure to launch such a program will leave the industry disdustry (though they acknowledge that a low ratio advantaged versus competitive segments that continue
may indicate that a program is ineffectively admin- to enhance their checkoff programs. It is a disadvantage
istered). Milling and baking executives should take the industry simply must not allow to endure. MBN
WE'RE EAGER TO GET YOUR FEEDBACK: E-mail editor@sosland.com or write to us at
Milling & Baking News, 4801 Main Street, Suite 650, Kansas City, MO, 64112
EDITORIAL STAFF
Editor-in-Chief
Morton I. Sosland
Executive Editor, Markets
Neil N. Sosland
Editor
L. Joshua Sosland
Managing Editor
Eric J. Schroeder
Senior Editors, Markets
Jay S. Sjerven
Ron Sterk

Associate Editor
Jeff Gelski
Associate Editor, Markets
Matt Noltemeyer
Digital Media Senior Editor
Monica Watrous
Digital Media Associate Editor
Rebekah Schouten
Markets, Graphic Designer,
Purchasing Seminar Coordinator
Christina Sullivan

7 / January 2, 2018
Milling & Baking News
bakingbusiness.com
/ world-grain.com

PUBLISHING STAFF
Publisher
G. Michael Gude
Associate Publishers
David DePaul
Bruce Webster
Matt O'Shea
Sales Associate
James Boddicker
Director of
Audience Development
Michael Barbee

Audience Development
Manager
Kay Hudspeth
Audience Development
Specialist
Molly Brown
Director of Digital Media
Jon Hall
Digital Advertising Manager
Carrie Fluegge

Advertising Manager
Nora Wages
Advertising Assistant Manager
Erica Reyes
Advertising Coordinator
Chelsea Bulmer
Design Services Manager
Sadowna Conarroe
Design Services
Assistant Manager
Ryan Alcantara

CORPORATE
Production Specialist
Marj Potts
Senior Design Consultant
Becky White
Promotions Manager
Jim White
Promotions Media Designer
Abby Chronister
Sales Coordinator
Whitney Hartman

Chairman and CEO
Charles S. Sosland
President
L. Joshua Sosland
Chief Financial and
Administrative Officer
Staci Greco
Director of Operations
Meyer Sosland

/ world-grain.com
Milling & Bakingbakingbusiness.com
News
January 30,
2018 / 7

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - January 30, 2018

Table of Contents for the Digital Edition of Milling & Baking News - January 30, 2018