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Pork Industry Update

                     Dallas Hockman
    Vice President Industry Relations
A Comprehensive Approach

                       Protecting
        Producer       Freedom
      Accountability       To
                        Operate




      Marketplace       Exposing
      Engagement       The Activist
                        Agenda
A Comprehensive Approach

        Producer
      Accountability
A Comprehensive Approach
The We Care Model
                  Prevention/Preparedness

Principles + Practices + Proof = Public Trust
• Shared Values      •   Hiring           •   Certification
• Ethical Principles     Practices        •   Assessment
• Establishing a     •   Codes of         •   Verification
  Culture                Conduct          •   Corrective Actions
                     •   PQA Plus         •   Continuous Improvement
                     •   TQA              •   Transparency – Farm Visits
                     •   Ongoing          •   Animal Care Review Panel
                         Training
                     •   SOP’s
                     •   Zero Tolerance
                     •   Whistle Blower
                     •   Documentation
A Comprehensive Approach

             Protecting
             Freedom
                 To
              Operate
Legislative/Regulatory
HSUS/UEP Agreement
Legislative /Regulatory Issues

 • Egg Bill
   – Sets dangerous precedent
      • Brings Government Regulation to
        the farm
   – Takes away from producers
     freedom to operate/choice
Legislative /Regulatory Issues
• Animal Drug User Fee Act (ADUFA)
  • Must be reauthorized in 2013
  • Authorizes FDA to collect fees to review animal drugs
• NPPC Concerns
  • New Reporting Requirements at Feed mills that Mix
    ABX in Feed
  • Trouble Ahead: Rep. Waxman (CA) “DATA ACT”
     • Pushed by Activists, PEW, CU, Etc.
     • Data Collection on Levels of Specific Drugs Mixed
       in Feed; What Dosages; For What Species & What
       Purpose
Legislative/Regulatory Issues
• Farm Bill
  – Extension passed as part of fiscal cliff deal
• Supported Farm Bill Issues
  –   New Comprehensive Surveillance System: Pilot for Pork
  –   New Catastrophic Event Insurance Program Study
  –   Reductions in CRP to Address Feed Availability Situation
  –   Increase in Swine Research Funding
  –   Foreign Market Development & Market Access Programs
  –   Feral Swine Eradication Efforts
Legislative/Regulatory Issues
• Opposed Farm Bill Issues
  – Livestock Title
  – Egg Inspect. Amendments (aka Farm Takeover, Rotten Egg
    Bill HR 3798/S 3239)
  – “GIPSA Rule-Like” Provisions
  – Antibiotics Ban (PAMTA)
  – Federal Purchasing Restrictions to Mandate Production
    Practices
Legislative/Regulatory Issues
• USDA - Animal Welfare Issues
  – Federal Purchasing Restrictions to Mandate
    Production Practices
  – FSIS – Animal Welfare Inspectors
     • Plant Suspensions
        – Animal Handling/Unloading
        – Stunning
A Comprehensive Approach




      Marketplace
      Engagement
Times Have Changed…
A Frustrating Time
for Producers
A Difficult Time for
Customers
A Conundrum
Bacon, Bacon Everywhere
Cease use of
                                                                                              gestation crates          Walmart                              Meat is the
          Inside a Beef                                                                                                                   Back to Start ad      New
                                                                                                                     launches label
         Slaughterhouse                 Undercover             Undercover                                                                                     Tobacco
                                          Video               Video leads to
                                                             loss of business   Files complaint with
                                                                                SEC over Smithfield                Ban on “extra-label             Better World
                                                                                    Food videos                   uses” of some drugs               for Farmed
                                                                                                                                                      Animals




Dec 2011 Jan Mar May Jul                               Sep          Oct          Nov            Dec              2012          Jan           Feb             Mar



                                                                                                                               COK
                                                                                                                              Video of
                                                                                                                             Iowa sow
 Whole Foods                                                                                                                    farm
Animal Welfare                            UEP and HSUS                                                                                            New animal
Raiting System                           Promote federal                                                                                            welfare
                                            standards                                                                                               policy
                                                                                   Video of alleged
                 Mark Bitman - A Food                                                                                                        NPR:
                                                                                 abuse at major pork
                  Manifesto for The                                                                                                        Antibiotics
                                                                Teaming up vs.        producers
                         Future                                                                                                             Create
                                                           antibiotics at US Senate
                                                                                                                                           Superbugs

                                                                                                                         Phase out                         Phase out
                                                                                                                       gestation stalls                  gestation stalls
Removing Choices
Who’s Agenda?
Vegetarian/Vegan
  Do you consider yourself to be a vegetarian/vegan?




                                                        Yes
                                                       2.9%




                                        No
                                       97.1%




Source: Consumer Issues Monitor 2010
A dynamic new environment
Driven by 3 Negative Topic Areas
Passion against “factory   Concerned about their
                                                   “Green”
  farms” and farming         food and health
Groups Attacking Our
Industry
Influencers


Leadership                                                 Engaged     General
             Industry   Brands    Channels       Policy
 and Staff                                                Consumers   Consumers




                             Those with the greatest
                               influence on market
                            access tend to come from
                                these key audience
                                     segments


              27
FEBRUARY      MARCH   APRIL   MAY   JUNE   JULY   AUGUST   SEPTEMBER   OCTOBER   NOVEMBER   DECEMBER

                                           2012


           2003

                                                              JANUARY 2013
           2008
100% Committed to a Date
       2015   2017    2022
Unclear/Non-Specific
    Commitments

“could take     “could take up to   “could take up to “substantial majority 2008: 5% per           “plans        “within        “solution
 ten years”        ten years”          ten years”        In 5-7 years”      year for 3 Years      by 2017”      10 years”       by 2022”




“It will take time.”   “working with    “determining          “discussions            “over time”      “shifting away”      “formulating a
                         Suppliers”       a timeline”       complete by 2022”                                                    plan”




“directing suppliers “actively collaborating “formulating    “encouraging       “continue        “20%     “working with     “committed to
      by 2018”           with suppliers”         plans”        suppliers”        working”      over time” Suppliers”          suppliers”
No Simple Solution




Animal    Carbon      Supply Chain     Brand
Welfare   Footprint   Management     Reputation
Two-Pronged Approach
In Defense of Choice   Changing the
                         Dynamic




32
Our Food Company Requests
 Work with those of us who support your business
  mission and goals
 Reflect your commitment to improving animal
  welfare through investments in research and
  engagement with the industry & academic experts
  who understand the science
 Be open to listening to producers — beyond your
  immediate suppliers — who will be effected by
  your decisions
 Do your due diligence — evaluate the economic,
  scientific, consumer, and environmental
  consequences of your welfare decisions
 Consider the long-term agenda of animal rights
  activists
A Comprehensive Approach
Porkcares.org
USFRA – Enhancing Confidence
    in Today’s Agriculture
Public Launch – Food Dialogues




3/4/2013                         38
Food Dialogues: Los Angeles




• Lights, Camera, Food: PERCEPTIONS AND
     REALITIES OF FARMING AND RANCHING IN AMERICA
• June 20-21, 2012, Los Angeles


3/4/2013                                            39
New York – November 15
Your Toughest Questions Answered on
Antibiotics & Your Food




   Panelists:
   •   Dr. Christine Hoang, DVM, MPH, CPH, Assistant Director of the Division of Scientific
       Activities of the American Veterinary Medical Association
   •   Barb Determan, Pork Producer (Iowa), Heartland Marketing Group
   •   Keith Ayoob, pediatric nutritionist, Albert Einstein School of Medicine
   •   Jean Halloran, Director of Food Policy Initiatives, Consumers Union
   •   Dr. Karen Jordan, Brush Creek Swiss Farms, North Carolina – dairy farmer
       and veterinarian
www.fooddialogues.com homepage
FoodSource

             • One place that brings to life the
               best information around nine key
               issues
             • Easy to navigate in language
               consumers use
                – Questions people really want
                  answered
                – Easy to find and easy to share for
                  everyone
                – Best information from across
                  commodities and industry partners in
                  one place (USFRA POVs, facts,
                  videos, white papers, links to other
                  sites, news articles, etc.)
             • Creates thought-leadership
               expertise to share with media,
               influencers, policymakers, and
               entertainment industry

3/4/2013                                            42
Questions
 & Topics




Infographic




              Videos
 3/4/2013              43
Faces Of Farming - The Finalists




3/4/2013                           44
National Documentary

• Director chosen
   – Academy Award, Emmy Award
     and Grammy Award winning
     storyteller
• Public announcement /
  Treatment complete Feb 15
• Filming begins in April
• First rough cut mid-August
• Final cut mid-October
• Entry to Film Festivals in
  September
• Sharing with industry insiders
  in the fall
• National premiere and
  distribution– Jan/Feb 2014
A Comprehensive Approach




            Exposing
              The
             Activist
             Agenda
Dear Mr. Hockman: If you agree with this please
  send to the powers that be. Hope we can stop
  it.

 While I always agree that hunting is an ethical
  God given right, I think that I would have to
     agree with the author on this one.... fox
     hunting in Colorado should be banned!
     Please help ban fox hunting in Colorado

         THIS MADNESS MUST STOP!!
• Signed,
49
       Peter Cottontail
Paragon Economics, Inc.
  From information, knowledge
US Share of World Exports

 • US is #1 exporter of pork
2011 Year-end Pork Exports – A New
             Record
• $6.108 billion in value
   – 28% higher than 2010
   – 25% higher than previous record year 2008
• 4.97 billion pounds
• Export value equal to over $55 per head
• 27% of Hogs Marketed
US Pork Exports 2012 vs. 2011
           (Including variety meat)
         Volume: Metric Tons




                                      Source: USDA statistics compiled by USMEF
                                      for 2012
Exporting the “Whole” Hog
          Picnics and                          Bellies and
           Trimmings                            Butts to
           To Russia                           South Korea
                                     Variety
                                     Meats           Loins and
                                    to China        Tenderloins
Hams to
 Mexico                                               to Japan




               Boston      Loin
                Butt    U.S. Pork
                        U.S. Pork     Ham

                 Picnic    Belly

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Dallas Hockman - Dissecting D.C.: Pork Policy Update

  • 1. Pork Industry Update Dallas Hockman Vice President Industry Relations
  • 2.
  • 3. A Comprehensive Approach Protecting Producer Freedom Accountability To Operate Marketplace Exposing Engagement The Activist Agenda
  • 4. A Comprehensive Approach Producer Accountability
  • 6. The We Care Model Prevention/Preparedness Principles + Practices + Proof = Public Trust • Shared Values • Hiring • Certification • Ethical Principles Practices • Assessment • Establishing a • Codes of • Verification Culture Conduct • Corrective Actions • PQA Plus • Continuous Improvement • TQA • Transparency – Farm Visits • Ongoing • Animal Care Review Panel Training • SOP’s • Zero Tolerance • Whistle Blower • Documentation
  • 7. A Comprehensive Approach Protecting Freedom To Operate
  • 9. Legislative /Regulatory Issues • Egg Bill – Sets dangerous precedent • Brings Government Regulation to the farm – Takes away from producers freedom to operate/choice
  • 10. Legislative /Regulatory Issues • Animal Drug User Fee Act (ADUFA) • Must be reauthorized in 2013 • Authorizes FDA to collect fees to review animal drugs • NPPC Concerns • New Reporting Requirements at Feed mills that Mix ABX in Feed • Trouble Ahead: Rep. Waxman (CA) “DATA ACT” • Pushed by Activists, PEW, CU, Etc. • Data Collection on Levels of Specific Drugs Mixed in Feed; What Dosages; For What Species & What Purpose
  • 11. Legislative/Regulatory Issues • Farm Bill – Extension passed as part of fiscal cliff deal • Supported Farm Bill Issues – New Comprehensive Surveillance System: Pilot for Pork – New Catastrophic Event Insurance Program Study – Reductions in CRP to Address Feed Availability Situation – Increase in Swine Research Funding – Foreign Market Development & Market Access Programs – Feral Swine Eradication Efforts
  • 12. Legislative/Regulatory Issues • Opposed Farm Bill Issues – Livestock Title – Egg Inspect. Amendments (aka Farm Takeover, Rotten Egg Bill HR 3798/S 3239) – “GIPSA Rule-Like” Provisions – Antibiotics Ban (PAMTA) – Federal Purchasing Restrictions to Mandate Production Practices
  • 13. Legislative/Regulatory Issues • USDA - Animal Welfare Issues – Federal Purchasing Restrictions to Mandate Production Practices – FSIS – Animal Welfare Inspectors • Plant Suspensions – Animal Handling/Unloading – Stunning
  • 14. A Comprehensive Approach Marketplace Engagement
  • 17. A Difficult Time for Customers
  • 20. Cease use of gestation crates Walmart Meat is the Inside a Beef Back to Start ad New launches label Slaughterhouse Undercover Undercover Tobacco Video Video leads to loss of business Files complaint with SEC over Smithfield Ban on “extra-label Better World Food videos uses” of some drugs for Farmed Animals Dec 2011 Jan Mar May Jul Sep Oct Nov Dec 2012 Jan Feb Mar COK Video of Iowa sow Whole Foods farm Animal Welfare UEP and HSUS New animal Raiting System Promote federal welfare standards policy Video of alleged Mark Bitman - A Food NPR: abuse at major pork Manifesto for The Antibiotics Teaming up vs. producers Future Create antibiotics at US Senate Superbugs Phase out Phase out gestation stalls gestation stalls
  • 23. Vegetarian/Vegan Do you consider yourself to be a vegetarian/vegan? Yes 2.9% No 97.1% Source: Consumer Issues Monitor 2010
  • 24. A dynamic new environment
  • 25. Driven by 3 Negative Topic Areas Passion against “factory Concerned about their “Green” farms” and farming food and health
  • 27. Influencers Leadership Engaged General Industry Brands Channels Policy and Staff Consumers Consumers Those with the greatest influence on market access tend to come from these key audience segments 27
  • 28. FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 2012 2003 JANUARY 2013 2008
  • 29. 100% Committed to a Date 2015 2017 2022
  • 30. Unclear/Non-Specific Commitments “could take “could take up to “could take up to “substantial majority 2008: 5% per “plans “within “solution ten years” ten years” ten years” In 5-7 years” year for 3 Years by 2017” 10 years” by 2022” “It will take time.” “working with “determining “discussions “over time” “shifting away” “formulating a Suppliers” a timeline” complete by 2022” plan” “directing suppliers “actively collaborating “formulating “encouraging “continue “20% “working with “committed to by 2018” with suppliers” plans” suppliers” working” over time” Suppliers” suppliers”
  • 31. No Simple Solution Animal Carbon Supply Chain Brand Welfare Footprint Management Reputation
  • 32. Two-Pronged Approach In Defense of Choice Changing the Dynamic 32
  • 33. Our Food Company Requests  Work with those of us who support your business mission and goals  Reflect your commitment to improving animal welfare through investments in research and engagement with the industry & academic experts who understand the science  Be open to listening to producers — beyond your immediate suppliers — who will be effected by your decisions  Do your due diligence — evaluate the economic, scientific, consumer, and environmental consequences of your welfare decisions  Consider the long-term agenda of animal rights activists
  • 35.
  • 37. USFRA – Enhancing Confidence in Today’s Agriculture
  • 38. Public Launch – Food Dialogues 3/4/2013 38
  • 39. Food Dialogues: Los Angeles • Lights, Camera, Food: PERCEPTIONS AND REALITIES OF FARMING AND RANCHING IN AMERICA • June 20-21, 2012, Los Angeles 3/4/2013 39
  • 40. New York – November 15 Your Toughest Questions Answered on Antibiotics & Your Food Panelists: • Dr. Christine Hoang, DVM, MPH, CPH, Assistant Director of the Division of Scientific Activities of the American Veterinary Medical Association • Barb Determan, Pork Producer (Iowa), Heartland Marketing Group • Keith Ayoob, pediatric nutritionist, Albert Einstein School of Medicine • Jean Halloran, Director of Food Policy Initiatives, Consumers Union • Dr. Karen Jordan, Brush Creek Swiss Farms, North Carolina – dairy farmer and veterinarian
  • 42. FoodSource • One place that brings to life the best information around nine key issues • Easy to navigate in language consumers use – Questions people really want answered – Easy to find and easy to share for everyone – Best information from across commodities and industry partners in one place (USFRA POVs, facts, videos, white papers, links to other sites, news articles, etc.) • Creates thought-leadership expertise to share with media, influencers, policymakers, and entertainment industry 3/4/2013 42
  • 43. Questions & Topics Infographic Videos 3/4/2013 43
  • 44. Faces Of Farming - The Finalists 3/4/2013 44
  • 45. National Documentary • Director chosen – Academy Award, Emmy Award and Grammy Award winning storyteller • Public announcement / Treatment complete Feb 15 • Filming begins in April • First rough cut mid-August • Final cut mid-October • Entry to Film Festivals in September • Sharing with industry insiders in the fall • National premiere and distribution– Jan/Feb 2014
  • 46. A Comprehensive Approach Exposing The Activist Agenda
  • 47.
  • 48. Dear Mr. Hockman: If you agree with this please send to the powers that be. Hope we can stop it. While I always agree that hunting is an ethical God given right, I think that I would have to agree with the author on this one.... fox hunting in Colorado should be banned! Please help ban fox hunting in Colorado THIS MADNESS MUST STOP!!
  • 49. • Signed, 49 Peter Cottontail
  • 50. Paragon Economics, Inc. From information, knowledge
  • 51. US Share of World Exports • US is #1 exporter of pork
  • 52. 2011 Year-end Pork Exports – A New Record • $6.108 billion in value – 28% higher than 2010 – 25% higher than previous record year 2008 • 4.97 billion pounds • Export value equal to over $55 per head • 27% of Hogs Marketed
  • 53. US Pork Exports 2012 vs. 2011 (Including variety meat) Volume: Metric Tons Source: USDA statistics compiled by USMEF for 2012
  • 54. Exporting the “Whole” Hog Picnics and Bellies and Trimmings Butts to To Russia South Korea Variety Meats Loins and to China Tenderloins Hams to Mexico to Japan Boston Loin Butt U.S. Pork U.S. Pork Ham Picnic Belly

Notas del editor

  1. Build by Column
  2. Dallas-And of course our evaluation goes beyond economics and includes-Commitment to animal care The welfare of the animal. Does a change in housing improve the welfare of the animal? We are looking for better alternatives, not simply more alternatives that have both pros and cons associated with them.The amount of natural resources required to raise pork. Does a housing change affect the carbon footprint of pork production? There’s little advantage to a housing option that does nothing to improve animal welfare but does increase the carbon footprint of hog farming.Supply Chain, regardless of what is decided, all have cost implications at the producer, packer/processor, and cost of distribution, 6-8% is housed in some kind of alternative housing system; we’re also working sow segregation to provide assurances for verification & traceability; Currently our best estimate is that 6-8% of the total sow today are housed in segregated operations. That does not mean that the offsring of these sows are uniquely segregated.Since 2017/18 is the number that is often used as a timeline, Our estimates is that the states that have pending referendums that will be in place and the public announcements of pork companies who have used this date, our estimate is that there will be 15% of the total sow hers converted. Why is that important? Because it is along way from meeting the current announcements that have been made by food companies.The point in all of this we have to do a better job of understanding the supply chains ability to meet these expectations. Brand reputation. Are we increasing consumer confidence in pork production … or are we making promises that we can’t meet and thereby jeopardizing consumer confidence in pork and in a company who made the promise. We all recognize the confusion and challenges with the recent LFTB issue. We recognize at some point we are going to be expected to verify and ultimately trace the claims made on product.
  3. So our ask of you is to work with us. If you want to reflect your commitment to animal welfare, contribute to the effort of researching how to best optimize systems. Listen to producers because they will be the ones effected by your decisions. Do your due diligence and evaluate economic, scientific, consumer and environmental consequences of your decisions – and the possible animal welfare consequences as well.
  4. Hugh - It’s good to be with you this morning. I would like to thank DuPont Pioneer for their wonderful financial and leadership support. You were the first industry partner at the Premier Partner Advisory Group level. I would also like to thank Bill Even and Tracy Willets for providing us the opportunity to share with you information about our movement. Yes, we consider our efforts a movement, not a campaign. The U.S. Farmers & Ranchers Alliance (USFRA) is now about 21 months old. Over the next 20 minutes, John Johnson and I will explain who we are, update you on our progress, and outline plans for the remainder of this year and into 2013. Following the two of us, Bill Zucker will explain how USFRA went about collecting research, and how we used that research to design and execute our strategic communications program.
  5. Linda/Ken
  6. Photo from Wattles panel discussion. Wattles is a community farm/garden in the heart of Hollywood.
  7. Today, until we launch in late summer, there is not one place that consumers, influencers or farmers can go that doesn’t focus on just one industry specific to food productionWith lack of central resource, detractors can easily go uncheckedAlso, farmers and ranchers often don’t have the best information at their fingertipsWILL BE/WILL OFFER:The Aggregator will present todays’ most pressing agriculture issues and provide a fair & balanced POV, enhanced by emotionally engaging content. A central portal for today’s most heavily discussed agriculture issuesA gateway to deeper agriculture information housed by issue category within Food Dialogues (library, panels, videos, whitepapers, etc.)Balanced, credible viewpoints from both sidesA hub for anyone who is interested in todays trending issues (reporters, bloggers, policymakers, etc.)
  8. Antibiotics page of AGgregator
  9. The idea was used for a segment of an episode of the Penn & Teller show Penn & Teller: Bullshit!, in which an actor (Kris McGaha) and a camera crew gathered signatures from people considering themselves "concerned environmentalists" on a petition to ban DHMO.