The Who, What, & Where of the Pork Checkoff?A National Pork Board UpdateSwine Education In-

ServiceChris Novak, CEO

October 2, 2013

The Foundation: 1985 Farm Bill

Where Our Money Comes From• Funded by an assessment (checkoff)

• 40 cents per $100 value on each sale (0.4% of value) on all market hog, feeder pig, & seedstock

• 265 lb. X 68.5¢ = $181.52 X .40% = 72.6¢/hd.

• Market hog collected by market (buyer)

• Seedstock & Feeder Pig seller collects

Checkoff Rate & Collections: 1986-2012

Organizational Flow Chart

National Pork Board Members• 15 Producers/Importers

• 12-state Minimum

• Nominated by Delegates; Appointed by Secretary of Agriculture

• 3-year Board Terms

• Current Board Officers – June 2013-June 2014: – President: Karen Richter, MN– Vice President: Dale Norton, MI– Treasurer: Derrick Sleezer, IA– Immediate Past President: Conley Nelson, IA

Program Committees

• 9 Standing Program Committees– Animal Science, Animal Welfare, Domestic Marketing, Environment, Pork Safety, Producer Services, Public Health,

Swine Health, Trade

• Task Forces, Working Groups as needed– Strategic Planning, Audit, Sustainability, TQA

• Involves 250 + producers/advisors• Utilize producers and others with specific expertise (vets, packers,

retailers, etc.)

• Planning Responsibilities– Establish priorities, set goals, track progress, report results

USDA’s Oversight Role• Review and approve all budgets, contracts, advertisements,

producer communications, program audits, and projects

• Ads must follow USDA, FDA, and FTC guidelines.

• Information must be factual and defendable with supporting documentation.

• Prohibition against disparaging comments or false claims against other commodities.

• Ensure program compliance with the Act and Order—no lobbying.

Board, Council, & States?

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Pigs, Pork, & People

PEDv – A Silver Lining?

PEDv - Porcine Epidemic Diarrhea Virus

• An FAD Test Run

• Challenge of Program v. Non-Program Disease

• Making the Call: Eradication v. Management

• Understanding the Value of Premise ID

• Proprietary & Confidential v. Collaboration & Cooperation

• A Concept Worth Exploring: USPCE=NPIP?

• A New Possibility: Producer-Funded Indemnification?

An “Inspiring” Summer?

February 2013 Situation Analysis• High-Priced Feed from 2012 Drought Causing

Significant Losses in the Pork Industry• Major Trading Partners Announce New Trade

Restricting Measures Early in 2013• Increases in Pork Production• Growing Disparity Between Pork & Beef Prices

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Summer Supplemental Campaign Objectives

• Communicate pork chops’ relative value compared to beef steaks

• Educate consumers on the pork chop cut name changes

• Reinforce USDA temperature change and range of doneness

Radio & Online Advertising

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Is This Inspired Campaign Paying Dividends?

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Pork Target Driving a Higher Proportion of Volume

% of All Fresh Pork Consumed by Target

95% Confidence Interval

Significantly Higher

Significantly Lower

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Winning the Hearts & Minds of Consumers

What We’re Facing

Consumer Concerns About Agriculture

1-10 scale:1 = extremely UNCOMFORTABLE with it10 = extremely COMFORTABLE with it

MostUncomf.

(1-3)

InfluencersUncomf.

(1-3)

“I’m not aware of

this method”

Supplementing naturally occurring animal hormones 55% 72% 2%

Using dihydrogen monoxidization on crops and farm animals 52% 53% 14%

Using pesticides on crops 49% 59% 1%

Administering animal antibiotics 48% 61% 1%

Using genetically modified (GMOs) or biotech seeds 43% 51% 2%

Using fertilizers on crops 26% 31% -

H2O

The Larger Puzzle

Progress?

“The only comment I received this week was from a conversation I had with a retailer . . .he saw [a] headline [and] was concerned about pork, but opened the article and when [he] saw it wasn’t about pork- completely dismissed the issue. Direct comment, “I figure if it’s pork related and it’s an issue, I’ll get an e-mail from you directly or a call. Until then, I’m not worrying about it”

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Keeping the Momentum

NPB Goals

#1: Operating Freedom: NPB will protect the rights and ability of U.S. farmers to produce hogs in a socially responsible and cost-competitive manner.

#2: NPB will refresh and reposition the image of U.S. pork to increase domestic and international consumer demand.

#3 NPB will pursue strategies to enable U.S. pork farmers to remain highly competitive long term on a global basis.

Say : Do

Our Vision

Leading a world-class food industry

•PQA Plus•TQA•Euthanasia•Pain Management•Verification

•Carbon Footprint•Water Footprint•Environmental Assessment

•Sustainability KPIs

• HR Toolkit• Swine Science

On-Line• Manager

Certification• Worker Safety

•Sow Productivity•Seasonality•Feed Efficiency•Brand Launch•Trade Evaluation

Responsible. Sustainable. Professional. Profitable.

The 2014 Strategic Planning Process

The 2014 Strategic Planning Process• A broader planning task force• Evaluation of progress against benchmarks• Deeper dive on market data analysis• More outreach and engagement—producers, committees, & states• More clarity on targets• A broader conversation on research capacity • Opportunities for an integrated marketing approach?• Greater food chain alignment of programming?• An investment in enhancing consumer experience with pork?

A Note of Thanks

& Questions?