National Pork Board Update
Bill Winkelman
Pork Production Per Year
With weight and volume up,
2015 may be the largest pork production year on record!
PEDv: Few sow herd breaks
Data from 708 sow
farms, 14 of 19 large
systems reporting.
2.022 million sows!
Today’s U.S. Pork Production
Today’s U.S. Pork Production
So, where are we going?
Support the National Pork Board’s vision to:
Build
Consumer
Trust
Drive
Sustainable
Production
Grow
Consumer
Demand
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.
Building Trust – Antibiotics
This IS a different situation!
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•
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FDA regulated
Involves food safety and human health
Not pork-specific (crosses all species)
No real, strong advocates
For customers, changes are a brand differentiator
Our Focus: Research, Education, Communication
Defined 5 strategic research priorities
Pilot project and blue-ribbon taskforce
Increase funding in 2016
PQA Plus revision focused on Good Production Practices
Emphasize producer record-keeping tools
Producer publications – newsletter, magazine, pork.org
Be present at industry and government hearings
Proactive media outreach – reporters and bylines
On-farm continuous improvement shared through stories
Since 2000, $5.3 million invested in research
Budget
$600,000
$551,000
$527,000
$468,000
$500,000
$439,000
$431,000
$400,000
$357,000
$317,000
$307,000
$306,000
$319,000
$300,000
$236,000
$271,000
$264,000
$200,000
$207,000
$100,000
$192,000
$112,000
$0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
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.
Building Trust – Common Industry Audit
• Goal
Develop a workable, credible and
affordable on-farm verification system
• Objectives
– Consistent, reliable system assuring
on-farm animal well-being and food
safety
– Eliminate audit duplication and
minimize administrative burden
– Develop consistent standards
– Create a process for inter- and
intra-observer consistency and
protection of herd health
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.
Drive Sustainable Production – Swine Health
American Association
of Swine Veterinarians
Task Force determination:
PEDv NOT 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?
New 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
Executive Director – Dr. Paul Sundberg
Board comprised of NPB, NPPC, AASV and at-large representatives
Drive Sustainable Production – USPCE
Developing the next generation of pork producers
Enrollment numbers of last offering of the
following courses:
5 Years Ago
Current
In 5 Years
10-Year Growth
Percentage
Introductory Swine
Management
332
439
532
60 %
Swine Production
291
316
394
35 %
Monogastric Nutrition
358
422
484
35 %
Monogastric Nutrition
(Graduate)
106
118
123
16 %
Other*
41
50
58
29 %
Course
17
*Includes: Pork Fellows & Specialized Senior Capstone (ISU), Production Systems (AU), Swine
Reproductive
Management (graduate course NCSU) and Comparative Nutrition (OSU)
Drive Sustainable Production – USPCE
Developing the next generation of pork producers
Number of individuals training in swine-related
research at any given time:
Level of Study
5 Years Ago
Current
In 5 Years*
10-Year Growth
Percentage
Undergraduates
174
263
343
97 %
Masters of Science
75
74
92
23 %
Doctoral Candidates
58
65
75
29 %
Post-doctoral Fellows
12
14
20
*Assuming funding will increase
18
67 %
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.
Grow Consumer Demand – Export Goal
By 2020, increase pork exports through access
to new markets and expansion of existing
markets, and achieve an increase of 9% average
annual increase in value and quantity,
compared to 2014 year-end data.
Key U.S. Pork Export Statistics: (January - May 2015)
• Value: $2.423B, ↓15% from 2014
• Volume: 910,976 MT (2.01 B lbs.), ↓6% from 2014
• 25% of production
Grow Consumer Demand – China
• Population: 1.355 billion or
20% of world population
• More migration to urban areas
• Increasing disposable income
• Growing modern retail segment
• Outside experts, economists and
U.S. Meat Export Federation see
China as the No.1 priority market
for pork exports through 2025
Grow Consumer Demand – China
Self-sufficiency projected to be over 90% in 2020…?
• Challenges:
–Scarcity of arable land
–High feed costs
–Pollution, water, disease
• Declining sow numbers
and production
• Climbing live hog prices
• Is there a pork gap coming?
• China has a zero-tolerance on ractopamine in pork
imports
Grow Consumer Demand – U.S. Consumer
Meat is trending: Protein is in! Fat is back!
Grow Consumer Demand – U.S. Consumer
Grow Consumer Demand – U.S. Consumer
Segmentation Study 2010 vs. 2015
• As compared to 2010,
now significant group of
consumers eat fresh pork
3+ times every two weeks.
• In 2010, we could not find
a group that ate fresh pork
3 times/week.
Ave. number of serving at
home in last 2 weeks
Total
U.S.
NPB
Target
Fresh Pork
1.5
3.2
Total Beef
2.8
3.5
Chicken
3.9
4.6
Ground Beef
1.6
1.8
Beef Steaks/Roasts
1.2
1.7
Where do we go from here?
Productivity measures are CRITICAL in 2015!
• June report farrowing intentions look low, but the reason is that
year-ago farrowings were high vs. the breeding herd.
• Litter size is back on its 2% growth path – and March-May was
RECORD LARGE litter sizes.
Production up 12.2% week ending 6/26/15
Profit Past and Future
The Opportunities Ahead
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Elevate demand for U.S. pork in Asia and Latin America
Working with NPPC on trade issues (MCOOL, TPP, new access)
Expand the domestic consumer base and spending on pork
Lead the conversation on antibiotics
Develop capability to monitor and respond to foreign disease threat
Continue to improve animal handling practices
Support alternative production
Be the catalyst bringing people and investment into our industry
New Producer Tools for 2016
• PQA revision and site assessment alignment with
Common Audit
• Update and re-launch of our Safety System toolkit
• Resources for producers to create a We Care Barn
Culture
• Zoetis Individual Pig Care extended to additional
producers through NPB
• Small/Beginning Producer Resources - P.I.G.
• Self-study guide for Certified Swine Manager
Program
Thank you!
This message funded by America’s Pork Producers and the Pork Checkoff