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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)
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The Who, What, & Where of the Pork Checkoff? A National Pork Board Update Swine Education In-Service Chris Novak, CEO October 2, 2013
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
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.
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?
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
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
95% Confidence Interval Significantly Higher Significantly Lower Pork Target Driving a Higher Proportion of Volume % of All Fresh Pork Consumed by Target
The Larger Puzzle Continuous Improvement USFRA Food Chain Outreach Exposing Truths Influencer Campaigns We Care
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”
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.
Our Vision Leading a world-class food industry Professional. Responsible. Profitable. Sustainable. • 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
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?