NPB Update
2015 Pork Management Conference
John Johnson, Chief Operating Officer
Update Subjects
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New CEO
New Strategic Plan
Vulnerabilities Assessment
Antibiotics
Common Industry Audit
Swine Health Information Center
Supplemental Marketing Efforts
Restructuring
New CEO
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!)
NPB Strategic Plan
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 what’s 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.
2015-2020 Strategic Plan
Build
Consumer
Trust
Drive
Sustainable
Production
Grow
Consumer
Demand
Consumer-focused messages
freedom to operate
continuous
improvement
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.
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.
Reduce national average carbon
footprint by 5 percent.
Implement an
Enterprise Risk
Management System
to prevent/mitigate
threats.
Reduce national average water
use by 5 percent.
Producers accounting for 50 percent of U.S. pig production
will annually report sustainability performance metrics.
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.
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:
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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.
Develop diagnostic tools,
surveillance and mitigation
strategies to eliminate top U.S.
swine diseases.
Improve industry professionalism by
attaining 25 percent adoption of education,
training and development programs.
Decrease the
annual economic
impact of PRRS by
20 percent.
Improve ability to detect,
prepare for and respond
to emerging disease.
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 pork’s improved
nutrition, quality and
sustainability.
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.
Vulnerabilities Assessment
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
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
2015 Prioritized Vulnerabilities
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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.
Antibiotics
A Different Situation
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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
Brand Differentiator
Brand Differentiator
$5.3M in NPB Antibiotic resistance research since 2000
Budget
$600,000
$551,000
$527,000
$468,000
$431,000
$500,000
$439,000
$400,000
$357,000
$319,000
$271,000
$300,000
$317,000
$307,000
$306,000
$264,000
$236,000
$207,000
$192,000
$200,000
$112,000
$100,000
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Embrace 209 & 213 and more
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.
Common Industry Audit
Timeline and Evolution
1959
1989
2001
2003
2005
2007
2008
2008
The first HACCP system developed
The PQA® program is launched
--Sulfa residues
--Food safety
TQA is launched
--Meat quality
--Animal care during handling and transport
--V5 released this year
SWAP program introduced
--On-farm animal care
--Site assessment
The Take Care program is released
The PQA Plus® program is launched
The industry launches the We Care responsible pork initiative
Packers show commitment to PQA Plus
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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”
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?
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.
Industry Audit Task Force
• Purpose - Facilitate the development of a workable,
credible and affordable on-farm verification system.
• Objectives
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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
Common Swine Industry Audit
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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
Swine Health Information Center
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
PEDv – 8 million dead pigs - Working on Our Preparedness
Lessons?
1.Pathway of introduction is difficult – at best
Be prepared for the next one because it is coming
2.We can’t expect USDA alone to respond to emerging diseases
Industry needs to take more responsibility for non-regulatory
diseases
3.Better state-federal-industry response coordination is essential
Agreed upon response plan before the next disease
AASV Task Force: PEDv Wasn’t a Surprise!
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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?
Swine Health Information Center
Swine
Disease
Matrix
project
Global swine
health and
issues
identification
Scope
of
Work
Improve the
biosecurity
ability of the
US swine
herd
Swine
health data
– analysis &
monitoring
for trends
Working on Our Preparedness
Swine Health Information Center
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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
Swine Health Information Center
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Board of Directors
– NPB
Mark Greenwood
Brett Kaysen
– NPPC
Howard Hill
Bill Luckey
– AASV
Matt Anderson
Daryl Olsen
– At Large
Mark Schwartz
Mike Terrill
Matthew Turner
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Lifespan and funding
– 5 year lifetime
– One time Checkoff investment of $15 million
Supplemental Marketing Efforts
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.
Restructure
VP Consumer Marketing
Ceci Snyder
Admin. Assistant
Anne Rehnstrom
Pork Information
Specialist
Carma Rogers
Manager Channel
Communications
Angela Anderson
Director Consumer
Advertising
Laurie Bever
Director State
Marketing and
Consumer Insight
Stacie Schafer
Director Multicultural
Marketing
Jose de Jesus
Manager Nutrition
Communication and
Research
Adria Huseth
Director Consumer
Communications
Pam Johnson
Manager Digital
Marketing and
Communications
Amy Busch
VP Social Responsibility
and Food Chain
Innovation
Jarrod Sutton
VP Strategic
Communications
Kevin Waetke
Admin. Assistant
Anne Rehnstrom
Director of
Retail Innovation
Rob Kirchofer
Director of Category
Management &
Innovation
Patrick Fleming
Director of
Culinary Innovation
Stephen Gerike
Manager of
Retail Innovation
Melissa Rosenbauer
Manager of
Culinary Innovation
David Bottagaro
Manager of
Retail Innovation
Bob Gabage
Manager of
Culinary Innovation
Jim Murray
Manager of
Retail Innovation
Manager of
Culinary Innovation
Neel Sahni
Questions?
This message funded by America’s Pork Producers