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The Who, What, & Where of the Pork Checkoff?

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?

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  1. The Who, What, & Where of the Pork Checkoff? A National Pork Board Update Swine Education In-Service Chris Novak, CEO October 2, 2013

  2. The Foundation: 1985 Farm Bill

  3. 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

  4. Checkoff Rate & Collections: 1986-2012

  5. Organizational Flow Chart

  6. 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

  7. 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

  8. 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.

  9. Board, Council, & States?

  10. Pigs, Pork, & People

  11. PEDv – A Silver Lining?

  12. 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?

  13. An “Inspiring” Summer?

  14. 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

  16. Radio & Online Advertising

  17. Is This Inspired Campaign Paying Dividends?

  18. 95% Confidence Interval Significantly Higher Significantly Lower Pork Target Driving a Higher Proportion of Volume % of All Fresh Pork Consumed by Target

  19. Winning the Hearts & Minds of Consumers

  20. What We’re Facing

  21. Consumer Concerns About Agriculture H2O

  22. The Larger Puzzle Continuous Improvement USFRA Food Chain Outreach Exposing Truths Influencer Campaigns We Care

  23. 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”

  24. Keeping the Momentum

  25. 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.

  26. Say : Do

  27. 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

  28. The 2014 Strategic Planning Process

  29. 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?

  30. A Note of Thanks& Questions?

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