Risk Communication Exploring A New Frontier

1. Risk CommunicationExploring A New Frontier Lynn HeinzeVice President InformationU.S. Meat Export Federation Putting U.S. Meat On The World’s Table

2. Re-entry “Eminent” • Early – industry held “they’ll have to open,” and “if they focus on the science they’ll have no choice” • Then – technical teams, scientific teams, NGO teams, official visits, face-to-face discussions, mutual points of view, frameworks and politics • Finally – cautious assessments, risk analyses, customary procedures and rule-making Putting U.S. Meat On The World’s Table

3. USMEF/FAS: A New Alliance • “Business as usual” no longer possible • Need for “white-hat”/“black-hat” approach • Maintain trade relationships and consumer interest; maintain political pressure • Show industry commitment to quality and safety; show government resolve to regulate protocols • Need to set the record straight • Media unbalanced, often negative • Opposition politicians, activists attack • Competitors working to take market share Putting U.S. Meat On The World’s Table

4. Early – Reactive • USMEF-Denver and internationally: • Thousands of media calls • Daily industry and trade contact • Daily USDA/FAS/Embassy/local government contact • USG: • Quietly focused on science/politics • Government-to-government communication Putting U.S. Meat On The World’s Table

5. Then – Proactive USMEF launched: • Consumer attitude tracking research • Key market assessments: • Japan, Mexico, Korea, China, Russia, Middle East • Worldwide strategy/messaging • Contingency planning • Established relationship with international third-party experts • Media contact/monitoring Putting U.S. Meat On The World’s Table

6. Proactive Goals • Gain permission to do business • Effect successful re-entry • Guard against future market interruptions • Longer-term: build global marketing environment favoring U.S. meat Putting U.S. Meat On The World’s Table

7. Proactive Approach • Gain science-based support • Create/maintain dialog • Separate “surveillance” from “safety” • Reach out to in-country influencers • Maintain communications • Monitor competition Putting U.S. Meat On The World’s Table

8. Recognizing The Differences Japan: • Second BSE scare; continuing cases • Consumers more aware • Government set 100% testing rule; supported position with public relations • Rule had to be changed domestically before U.S. beef could be considered • Media active, focused on politics, not science Putting U.S. Meat On The World’s Table

9. Recognizing The Differences Korea: • No domestic cases • Consumers scared early; but fears shifted and put in perspective • Interested NGOs involved early • Government could accept international standards, but said they’d follow Japan • Influencers enlisted • Media not a long-term negative factor Putting U.S. Meat On The World’s Table

10. Focus On Japan Putting U.S. Meat On The World’s Table

11. Consumer Research • Japanese consumers are “conflicted” – don’t want to think about BSE, yet have broad knowledge of BSE when pushed. • Domestic cases of BSE now total ??. • Extensive media coverage of market access negotiations. • Reporting by media has been less than “balanced”. Putting U.S. Meat On The World’s Table

12. Consumer Research • Consumer research (broad-based surveys and focus groups) has consistently identified: • Consumers feel a sense of betrayal and that the trust/relationship with the U.S. beef industry has been badly damaged. • Confidence levels in the safety of U.S. beef have weakened. • Lifting of the ban will signal the “all clear” Putting U.S. Meat On The World’s Table

13. Consumer Research • Research has also suggested: • Consumers want to know the facts. • Believe health and safety experts to be credible sources. • Need emotional support from industry to overcome feelings of betrayal necessary to re-establishing trust/relationship with U.S. beef. Putting U.S. Meat On The World’s Table

14. Consumer Focus Groups Putting U.S. Meat On The World’s Table

15. Changing Image of U.S. Beef Best illustrated by findings from focus groups conducted July 25-26 with 30-55 year old married females who have children and live in the Tokyo or Osaka metro areas. Ideal Food American Beef before BSE American Beef after BSE Putting U.S. Meat On The World’s Table

16. Image Goal At Reopening American Beef Before BSE American Beef After BSE American Beef at Market Reopening Ideal Food Putting U.S. Meat On The World’s Table

17. U.S. Experts Teams Putting U.S. Meat On The World’s Table

18. Seminars/Briefings Putting U.S. Meat On The World’s Table

19. Inoculation Strategy Intensifies Putting U.S. Meat On The World’s Table

20. Japan Economic Impact Study AMITA’s Economic Impact Study Economic damage on the meat-related companies in Japan December ‘04 to late June ‘05 • $5.7 billion Putting U.S. Meat On The World’s Table

21. Economic Impact Study Rollout Putting U.S. Meat On The World’s Table

22. “Project J”Carcass Utilization Project • To avoid a “run” on specific, popular cuts • Developed alternative 17 cuts and suggested recipes • Developed a guidebook • Estimated additionof 15%-35% in tonnage Putting U.S. Meat On The World’s Table

23. “Project J” Rollout Putting U.S. Meat On The World’s Table

24. Direct Risk Communication • Five banner advertorials in Yomiuri Shimbun with daily circulation >10 million. • Key message points: • Protecting the consumer (6/3) • U.S. firewalls (6/5) • SRM removal (6/8) • No MBM (6/10) • U.S. industry striving to be the best (6/15) Putting U.S. Meat On The World’s Table

25. RsCom Expands Putting U.S. Meat On The World’s Table

26. RsCom Adds TV Program TVK (Kanagawa) on 9/28&29 MX (Tokyo) on 9/28 TVS (Saitama) on 9/27 CTC (Chiba) on 9/30 GTV (Gunma) on 9/29 GYT(Tochigi ) on 9/30 BBC (Shiga) on 9/25 KBS (Kyoto) on 9/25 SUN (Osaka) on 9/26 TVN (Nara) on 9/24 WTV (Wakayama) on 9/26 GBS (Gifu) on 9/26 MTV (Mie) on 9/24 Total Households covered: 37,557,000 30-minute program about U.S. production produced by TV Kanagawa On air TVK and other 13 independent local TV stations Putting U.S. Meat On The World’s Table

27. RsCom Includes TV Spot • U.S. industry efforts • Sincere efforts to assure safety • Visual of ranch/open spaces TBS/CX in Tokyo (17,055,000) ABC/KTV in Osaka (8,621,000) CBC/CTV in Nagoya (3,969,300) FOX/Drama Channel/Fuji TV721/Foodies/Super Channel/Family Theater Putting U.S. Meat On The World’s Table

28. RsCom Goes Mobile Commitment message reinforcedto reach 10 million Tokyo/Osakacommuters per day Putting U.S. Meat On The World’s Table

29. Communications Impact? • 20% of respondents to May ’05 consumer survey conducted by Ipsos (prior to placement of advertorials) indicated they “would be comfortable purchasing U.S. beef if available in Japan” • A July ’05 survey conducted by Yomiuri newspaper of its readers immediately following the placement of USMEF advertorials found 40% of respondents “will buy and eat U.S. beef after the ban is lifted” Putting U.S. Meat On The World’s Table

30. Communications Impact? • Percent of Japanese “confident in purchasing U.S. beef” at 26% in 3rd quarter, up from 20% in 2nd • Percent “confident in U.S. food inspection system” at 22%, up from 18% • Trend is moving in the right direction for the first time in two years Ipsos, 3rd Qtr ‘05 Putting U.S. Meat On The World’s Table

31. Industry flexible Industry responsive Industry funded for RsCom USG reflects industry USG can pressure Industry - working relationships USG rigid USG slower to respond USG funding limited Industry not always on mission Industry waits USG - ‘formal’ relationships Pluses, Minuses Putting U.S. Meat On The World’s Table

32. What’s Ahead? • Back to normal – what ever that turns out to be! • Expect to return to traditional roles • Marketing • Government affairs • Increased communication • Future partnerships Putting U.S. Meat On The World’s Table

33. Questions? Lynn Heinze lheinze@usmef.org www.usmef.org 303-623-6328 Putting U.S. Meat On The World’s Table