National Pork Board Update

Bill Winkelman, V.P. Producer & Industry RelationsNational Pork Board

Our Agenda

• A Growing Industry• How to handle the

“Growing Pains”• 2017 Action Plans

Welcome Bill Even

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Packing Capacity Under Construction

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Wright County, IA

Trajectory of Domestic Growth

2013 = 5.5%2014 = 7.5%2015 = 3.0%2016 = -3.2%

(Year to Date)

What Does 1% Gain Mean for Producers?• In 2014, pork’s share of meat

expenditure was 26.1%• 1% share gain for pork

expenditures = $2.35 billion increase retail sales

OR$23.69 additional domestic retail

value to every pig

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Beef50.3%

Chicken

23.6%

Pork

26.1%

Meat Expenditure Share, 2014

2016 Consumer Outreach

• Marketing content focused on how consumers behave– Shape consumer reference for cooking– Position pork as an ingredient and trendy– Define how out target uses pork

• Social and video content critical to reaching consumers

• A “1-market approach” that speaks to diversity of U.S.• Pork’s point of differentiation is creativity• Our target audience generally does not recognize on-

farm issues in their purchase decisions YouTube video views = 5.8 million(May 9-30, 2016)

2016-2017 Channel Outreach

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• Three pillars to success:

• We will meet the consumer where they are…

145°

NAMES

QUALITY

STEAL SHARE

2016 Goal: A Focus on Pork Quality

• Reduce the percentage of pork chops scoring below “3”• Voluntary commitment from the industry• Seek consistent eating experience and repeat purchases

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Trade Challenges• 2015 West coast port slowdown = Need to rebuild trust• Strong Dollar $• Russian market closure• Steep competition• Tariff and SPS barriers / Trade Agreements

Brazil CanadaChile ChinaEuropean Union MexicoSouth Africa United StatesAll others

Share of Global Exports

Investment by Strategic Goal

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Draft 2017 Pork Board Budget Allocations

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Building Trust – Responsible Antibiotic Use

• Tangible research priorities• Producer, consumer (and media)

education• Food chain and influencer

outreach

Our No. 1 priority is to shape the dialogue through demonstrating antibiotic stewardship.

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• Food chain partners (Channel)– #1 stakeholder group to impact change– Partnership opportunity with supply chain and/or sustainability stakeholders

• Human health experts– Meeting with health leaders generated by Atlantic Media event – In talks with Dr. Georges Benjamin, American Public Health Association– Defining co-speaking opportunities in the human health setting– Creating byline articles defining responsible use, shared responsibility

• Nutritionists/dietitians• Consistent content push to our increasing database of key influencers• Operation Main Street speaking opportunities in this area

2016 Q3-Q4: Influencer Engagement Priorities

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Consumer priorities:1. Address real change is occurring on the farm through

Guidance 209 and 213 2. Pig farmers are committed to continuous

improvement of on-farm practices

Key Messages:• Safe Food Comes from Healthy Animals –.• Antibiotics and Antibiotic-Resistant Bacteria in Meat –

– USDA tests meat for antibiotic residue to ensure a safe product in the meat case and in restaurants.

– Antibiotic-resistant bacteria is also tracked by the federal government. – To date, no patterns have emerged showing resistant bacteria is routinely

transferred from animals to humans.

• Cost of Antibiotic-Free Meat – Although some suppliers offer pork from pigs raised without antibiotics, others have not. Based on the current market, consumers do pay more for pork from pigs raised without antibiotics.

2017: Define Needs and Evolve our Key MessagesProducer priorities:1. Define and leverage the work of

Dr. Peter Davies to establish responsible use models and metrics

2. Define and create additional tools from research (including newsletters, fact sheets, videos, FAQs, digital materials)

Key Messages:• Producers are aware of the challenge • New FDA guidelines define how medically important

feed-grade antibiotics will be used • New guidelines require veterinarian oversight • Preserving the effectiveness of medically important

antibiotics is critical in our commitment to ensure a safe food supply and to build consumer trust.

Our Priorities Are In Motion• LEAD the conversation on antibiotics.• DEFINE new quality standards for

pork that return value to pig farmers.• EXPAND the domestic consumer base

and spending on pork. • ELEVATE demand for U.S. pork in

international markets.• REFINE our ability to monitor and

respond to foreign disease threats.• CONTINUE to improve animal handling practices.• RECRUIT the next generation to our industry.