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NPB Update 2015 Pork Management Conference

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Title: NPB Update 2015 Pork Management Conference


1
NPB Update 2015 Pork Management Conference
  • John Johnson, Chief Operating Officer

2
Update Subjects
  • New CEO
  • New Strategic Plan
  • Vulnerabilities Assessment
  • Antibiotics
  • Common Industry Audit
  • Swine Health Information Center
  • Supplemental Marketing Efforts
  • Restructuring

3
New CEO
4
Chris Hodges
  • Raised in Laurens, Iowa
  • Studied international relations and agricultural
    economics
  • 1981 Joined Smithfield Farmland
  • Led many diverse areas
  • Sales Marketing
  • Operations
  • Former NPPC board member
  • Married with two children (and two
    grandchildren!)

5
NPB Strategic Plan
6
Strategic Plan Summary
VISION The National Pork Board will
elevate U.S. pork as the global protein of choice
by continuously and collaboratively working
to do whats right for people, pigs and the
planet. MISSION The National Pork
Board is the catalyst that unites pork producers
with key stakeholders focused on building a
bright future for the pork industry through
research, promotion and education.
                                                  
          
7
2015-2020 Strategic Plan
8
Consumer-focused messages
freedom to operate
continuous improvement
9
Goal 1 Build Consumer Trust
  • Working collaboratively with food chain partners,
    the National Pork Board will enhance consumer
    trust in modern pork production by promoting
    producer adoption of on-farm management practices
    that reflect our ethical principles and by
    sharing our commitment to continuous improvement
    with consumers and key stakeholders.

10
How we will measure improvement
  • Adoption of on-farm management practices
    reflecting our principles.
  • Sharing our commitment to continuous improvement.

With food partners, address public concerns
related to animal care and improve engaged
consumer perceptions by 10 percent.
Reduce public health risk by 5 to 10 percent from
2015 levels, depending on specific foodborne
pathogens.
Improve overall animal well-being scores by 2
percent.
Implement an Enterprise Risk Management System to
prevent/mitigate threats.
Reduce national average carbon footprint by 5
percent.
Reduce national average water use by 5 percent.
Producers accounting for 50 percent of U.S. pig
production will annually report sustainability
performance metrics.
11
Goal 2 Drive Sustainable Production
  • The National Pork Board will invest in research
    and producer education programs that enhance the
    productivity and sustainability of pork
    production and deliver benefits to producers,
    consumers and the community.

12
How we will measure improvement
  • Invest in research education programs focused
    on productivity and sustainability.
  • Share benefits with producers, consumers and the
    community.
  • Improve U.S. swine herd productivity through
    research, tools and information. Targets
  • 10 percent decrease in pre-weaning and nursery
    mortality
  • 10 percent improvement in feed efficiency and sow
    lifetime productivity (from 38 to 42 P/S).

Expand worker safety metrics to 50 percent of
industry and reduce employee injury by 15 percent.
Improve industry professionalism by attaining 25
percent adoption of education, training and
development programs.
Develop diagnostic tools, surveillance and
mitigation strategies to eliminate top U.S. swine
diseases.
Decrease the annual economic impact of PRRS by 20
percent.
Improve ability to detect, prepare for and
respond to emerging disease.
13
Goal 3 Grow Consumer Demand
  • Working in concert with food chain partners, the
    National Pork Board will grow domestic and
    international consumer demand by focusing on
    porks improved nutrition, quality and
    sustainability.

14
How we will measure improvement
  • Connect and collaborate with food chain through
    focus on nutrition, quality and sustainability.

Increase positive perceptions of U.S. pork among
registered dietitians by 20 percent.
Reduce the percentage of pork loin chops scoring
below color score 3 by 10 percentage points.
Increase U.S. market share by 1 percentage point
(based on real/capita expenditures).
Increase average annual sales volume and value of
pork exports to new and existing markets by 9
percent annually.
15
Vulnerabilities Assessment
16
Vulnerabilities Assessment
  • Identify issues that
  • Can become a crisis
  • Would interrupt normal business flow
  • Threaten reputation of industry
  • Anticipate and prepare for priority issues
  • Build preparedness and response strategies
    supporting each vulnerability

17
Gathered Input From Industry Stakeholders
  • Deep dive on 2014 vulnerabilities
  • Began with program staff input
  • Electronic survey of 419 industry leaders
  • Pork Board and NPPC
  • All committees
  • State presidents and staff
  • Program staff
  • Industry organizations
  • Worked with Issues Assessment Team to finalize

18
2015 Prioritized Vulnerabilities
  • Antibiotics
  • Foreign animal disease
  • Market preparedness
  • Ethics of pork production
  • Dietary guidelines

The National Pork Board directors approved the
2015 Vulnerabilities in March, directing staff to
begin work on these 5 defined areas.
19
Antibiotics
20
A Different Situation
  • FDA regulated
  • Involves food safety and human health
  • Continuous/regular news coverage
  • Not pork-specific (crosses all species)
  • Not black or white (various methods)
  • No real, strong advocates for abx usage
  • For customers, changes can be seen as a brand
    differentiator

21
Brand Differentiator
22
Brand Differentiator
23
5.3M in NPB Antibiotic resistance research since
2000
24
Embrace 209 213 and more
25
National Pork Board Actions
  • ACTION National Pork Board adopted the new
    position and policy statement as presented in the
    June 2015 Board meeting.
  • ACTION The National Pork Board intends to
    allocate up to 1.4 million in funding of
    scientific research and antibiotic risk
    assessment studies, producer education and
    consumer awareness programs.

26
Common Industry Audit
27
Timeline and Evolution
  • 1959 The first HACCP system developed
  • 1989 The PQA program is launched
  • --Sulfa residues
  • --Food safety
  • 2001 TQA is launched
  • --Meat quality
  • --Animal care during handling and transport
  • --V5 released this year
  • 2003 SWAP program introduced
  • --On-farm animal care
  • --Site assessment
  • 2005 The Take Care program is released
  • 2007 The PQA Plus program is launched
  • 2008 The industry launches the We Care
    responsible pork initiative
  • 2008 Packers show commitment to PQA Plus

28
PQA Plus Program
  • Comprehensive platform to align producer
    performance with market chain expectations
  • Guiding principles
  • Workable
  • Credible
  • Affordable
  • Voluntary education program available through
    Pork Checkoff
  • Pork Checkoff legally cannot restrict market
    access to producers.
  • Many packers require certification and/or site
    assessment as condition of sale
  • Criticized for lack of teeth

29
Industry Evolution
  • The industry is clearly moving towards individual
    on-farm audits to meet customer expectations.
  • How do we avoid the British experience of
    multiple and redundant audits?
  • Can the industry agree to one set of audit
    criteria?
  • What is the future of PQA Plus?

30
2013 2014 Pork Forum Resolution
  • NPB shall work with the various packers and other
    industry stakeholders to develop a common
    foundation for on-farm animal welfare audits,
    facilitate equivalency among packers, and
    minimize the need for multiple audits on a farm
    supplying multiple packers. The common foundation
    for the audit would be based on PQA Plus and TQA.

31
Industry Audit Task Force
  • Purpose - Facilitate the development of a
    workable, credible and affordable on-farm
    verification system.
  • Objectives
  • Provide stakeholders with a consistent, reliable
    and verifiable system that assures on-farm animal
    well-being and food safety
  • Eliminate duplication of audits and/or minimize
    the administrative burden placed on producers
  • Develop consensus about consistent standards
    between and among various independent audit
    programs. PQA Plus could be the foundation with
    possible company-specific addendums
  • Create a standard process that results in inter-
    and intra-observer consistency and protection of
    herd health

32
Common Swine Industry Audit
  • www.pork.org/commonaudit
  • Audit materials
  • Audit instructions
  • Audit standards
  • Audit tool
  • Corrective Action template
  • Interactive audit tool spreadsheet
  • FAQs
  • Resources
  • PQA Plus TQA
  • Fact sheets and other educational materials
  • SOP templates
  • Record templates
  • Branding

33
Swine Health Information Center
34
Working on Our Preparedness
  • Those who cannot remember the past are condemned
    to repeat it.
  • Santayana (in The Life of Reason, 1905)
  • When the situation was manageable it was
    neglected, and now that it is thoroughly out of
    hand we apply too late the remedies which then
    might have effected a cure.
  • Winston Churchill, 1935

35
PEDv 8 million dead pigs - Working on Our
Preparedness
  • Lessons?
  • Pathway of introduction is difficult at best
  • Be prepared for the next one because it is coming
  • We cant expect USDA alone to respond to emerging
    diseases
  • Industry needs to take more responsibility for
    non-regulatory diseases
  • Better state-federal-industry response
    coordination is essential
  • Agreed upon response plan before the next disease

36
AASV Task Force PEDv Wasnt a Surprise!
  • Anecdotal reports from the region
  • Published papers from researchers
  • Researcher to researcher communications
  • Reports to AASV Swine Health Committee
  • BUT, what did we do with this information?

37
Swine Health Information Center
38
Working on Our Preparedness
  • Swine Health Information Center
  • Identify the biggest threats that are around the
    world
  • Be better prepared
  • Have better diagnostic capabilities in place
  • Have better awareness of how to respond to
    specific diseases
  • Inform production decisions
  • Sharing information will see trends and find
    risks much more quickly
  • Analysis of the information will inform swine
    health decisions on the farm

39
Swine Health Information Center
  • Board of Directors
  • NPB Mark Greenwood Brett Kaysen
  • NPPC Howard Hill Bill Luckey
  • AASV Matt Anderson Daryl Olsen
  • At Large Mark Schwartz Mike Terrill Matthe
    w Turner
  • Lifespan and funding
  • 5 year lifetime
  • One time Checkoff investment of 15 million

40
Supplemental Marketing Efforts
41
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42
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43
Board Action
  • At their March meeting the NPB Board of Directors
    approved a 2015 marketing supplemental for
    2.75M, (1.25M for International Marketing and
    1.5M for Domestic Marketing) and encouraged us
    to seek partners to contribute to the effort.
    The Board is planning an additional 4.75M in
    2016.

44
Restructure
45
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46
Questions?
47
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