Grain Foods Foundation Asks USDA to
Withdraw Checkoff Order from Further Consideration
GFF Board Votes to Move in Other Directions to Marshal Resources to Support GFF's Mission and Work
Why a Checkoff?
Mandatory industry marketing programs make sense when there are shared problems at a scale that defy individual company solutions.
Enhance industry reputation among consumers and value chain stakeholders.
Give consumers permission to consume the breadbasket of products they know and love.
Change retailer and food service perceptions of the role of breadbasket products.
Drive growth, market share, revenue and profits.
Total annual budget of approximately $15 million.
Allocation: 85 percent bakers: 15 percent millers
Assessment: combined baker and miller contributions to equal $0.16 per CWT of wheat flour to produce breadbasket products
- Bakers: $0.136 per CWT of flour
Millers: $0.024 per CWT of flour
Products subject to assessment: The Breadbasket
- Included: fresh and frozen sliced and unsliced bread, rolls, buns, bagels, naan, pitas, other flatbreads, English muffins
- Excluded: tortillas, biscuits, croissants, organic products, products sold in the frozen section of a grocery store, bars, crackers, or sweet goods
Exemptions: Companies using or selling less than 750,000 CWT of wheat flour. To claim an exemption, bakers and millers must substantiate one of the following:
- The baker annually purchases less than 750,000 CWT of wheat flour to produce breadbasket products;
- The miller annually sells less than 750,000 CWT of wheat flour to produce breadbasket products; or
- The miller is also exempt from assessment on that portion of wheat flour sold to an exempt baker, even if the miller would otherwise be subject to assessment on that wheat flour
Collection: Bakers are responsible for collecting the assessments from millers and remitting them to the Board along with their own assessments, or where millers sell wheat flour to co-packers, millers will remit directly to the Board upon receipt of an invoice issued by the Board.
What do we get?
Total annual budget of approximately $15 million
Accountability: A checkoff program and staff is accountable to a Board of Directors made up of the companies that fund the program. You are the governors of your dollars and program. Checkoff Boards are subject to USDA oversight and required to report an annual ROI analysis.
* Based on historical averages of existing programs AND based on studies commissioned by the Feasibility Steering Committee
The Approval & Termination Process
Referendum Requirement: To pass, a majority of companies and a majority of the volume of wheat flour must approve the referendum.
If approved, through the initial referendum, the Order is subject to a subsequent referendum every 7 years.