Transcript Document
The Who, What, & Where of the Pork Checkoff? A National Pork Board Update Swine Education In-Service Chris 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 3% 5% 2013 Program Expenses Domestic Marketing 14% Science and Technology 50% 13% Trade Producer Services Communication 15% TOWM 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? 10 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 15 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 17 Is This Inspired Campaign Paying Dividends? 19 Pork Target Driving a Higher Proportion of Volume % of All Fresh Pork Consumed by Target 95% Confidence Interval Significantly Higher 20 Significantly Lower 21 Winning the Hearts & Minds of Consumers What We’re Facing Consumer Concerns About Agriculture Most Uncomf. (1-3) Influencers Uncomf. (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% - 1-10 scale: 1 = extremely UNCOMFORTABLE with it 10 = extremely COMFORTABLE with it 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 porkcompletely 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” 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 Responsible. •PQA Plus •TQA •Euthanasia •Pain Management •Verification Sustainable. •Carbon Footprint •Water Footprint •Environmental Assessment •Sustainability KPIs Professional. • HR Toolkit • Swine Science On-Line • Manager Certification • Worker Safety Profitable. •Sow Productivity •Seasonality •Feed Efficiency •Brand Launch •Trade Evaluation 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?