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National Pork Producers Council Update
Courtney KnuppDeputy Director of International Trade [email protected]
Organizational Structures
• 80 employees• 16 board members• Office in Des Moines• Membership: Producers
• 30 employees• 15 board members• Offices in Des Moines, DC• Membership: Producers,
Packers, Allied Industry
42 affiliated states
Issue Engagement Areas• Nutrition• Antibiotics• Animal Welfare• Foreign Animal
Disease• Trade• Price Reporting• Farm Bill• International
Standards Setting• GIPSA
• Environment• Immigration• Transportation• Tax• Political Action
Committee (PAC)• State Ballot
Initiatives• Disease and Parasite
Mitigation• Food Safety
NPPC Advocac
y
U.S. Executive
BranchU.S.
Congress
U.S. & Foreign Private Sector
International Organization
s
Foreign Government
s
U.S. & Foreign Media
U.S. Judiciary
Trans Pacific
Partnership
(TPP)
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
150,000
300,000
450,000
600,000
750,000
900,000
1,050,000
1,200,000
1,350,000
1,500,000
1,650,000
1,800,000
1,950,000
2,100,000
2,250,000
U.S. Pork Exports
Year
Met
ric
Tons
Canada FTA
NAFTA(Mex-ico)
WTO Uruguay Round(Japan)
DR-CAFTA
Korea FTAColombia
FTAPanama FTA
Peru FTA
Source: USDA GATS
Singapore FTAChile FTA
China WTO Ac-cession
Australia FTA
USDA-FAS-GATS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Pork Exports & Free Trade Agreements
20 FTA 174 Non-FTA
Billi
on U
SD
Trans-Pacific Partnership (TPP)
Regional AgreementsTrans-Pacific Partnership
• Negotiations concluded October 5, 2015
• 21st Century FTA set the stage for future trading frameworks.
• 12 current TPP members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam.
• Toughest issues: rice, dairy, tobacco exemption, biologics etc.
• Address tariff, but real payout for U.S. pork is resolving sanitary (SPS) issues
• NPPC supports negotiated agreement
Issues, Interests & Implications
AgricultureIssue:
• Most US groups support TPP. But several are disappointed or opposed. Important to demonstrate to Congress that vast majority of producers support.
Interests:• Dairy disappointed but supporting with reservations; rice very unhappy but
undecided; NFU strongly opposed as usual.
Implications:• All votes are critical if TPP is to pass. Important that agriculture (other than NFU)
be unified in support.
Other controversial issues: • Biologics & data exclusivity, Financial services data storage carve-out, Currency
manipulation, Autos and Rules of Origin, Labor, Investor State Dispute Settlement, Tobacco Carve-Out
NPPC Supports Trade• Pro-trade organization• Pork producers benefit from trade • NPPC has been, and continues to be, a
supporter of the TPP• NPPC wants to make sure that when TPP
is implemented that pork producers get the benefit of the deal as advertised
• Action Plan: Lame Duck session vote
TPP Social Media Campaign• Partnership with NPPC, NCBA and AFBF• Goals of campaign:
– Introduce #FarmedInAmerica hashtag on Facebook and Twitter– Generate positive messaging around ag-trade and TPP– Targeting students, proud Americans, small business owners,
agricultural organization members and members of Congress
Foot and Mouth (FMD) Vaccine Bank
Foreign Animal Disease Preparedness
Economic Impacts of FMD
• Center for Agricultural and Rural Development, Food and Agricultural Policy Research Institute (CARD FAPRI) model
Cumulative ($) losses over 10 years to:• Pork – 57 Billion• Beef – 71 Billion• Poultry - 1 Billion• Corn - 44 Billion• Soybeans – 25 Billion• Wheat – 1.8 Billion
FMD Vaccine Background
• 2013 Decision was made to vaccinate rather than “stamping out”
• Discovered there was a vaccine shortage
• Antigen bank maintained at Plum Island, NY
• Limited number of Serotypes • Antigen is shipped to Europe to
produce finished vaccine• After 3 weeks, 2.5 M doses available
FMD Vaccine Bank• FMD presents a critical risk to the US livestock
industry• USDA APHIS must have a robust and timely
response capability in the form of a rapidly deployable FMD vaccine bank
• NPPC requests APHIS contract for an offshore FMD vaccine bank that would provide vaccine antigen concentrate for all FMD strains currently circulating in the world; contract for production capacity that would produce in the shortest amount of time, including surge capacity necessary to address the needs in the early stages of an outbreak, the millions of vaccine doses needed in the event of a medium- or large-scale outbreak.
FMD Vaccine Bank• NPPC is urging that the next Farm Bill include
language authorizing mandatory funding of up to $150 million for development of a vaccine bank sufficient to meet the needs of today’s livestock industry and to mitigate the increasing threat of an FMD outbreak.
Action Plan• Drafting the Farm Bill language that has
mandatory funding• Identifying rationale for “the ask”
– $30 million per year for the National Animal Health Laboratory System (as per budget documentation that have lobbied before)
– $150 million per year for the FMD vaccine bank (based on a paper by FAPRI)
– Up to $70 million for other emergency preparedness activities
• Will be a heavy lift, we are asking for over $1 Billion!
• Will require the support of, and leadership from, the entire agribusiness sector
Grain Inspectio
n, Packers
and Stockyard
s Act (GIPSA)
Rule
GIPSA• USDA is moving forward with two rules
previously blocked by Congress that could limit farmers’ ability to sell animals, dictate terms of private contracts, make it harder to get farm financing, raise consumer prices and reduce choices, stifle industry innovation and lead to more vertical integration of the pork industry
• The regulations may be similar to provisions included in a 2010 proposed GIPSA Rule that would have made certain actions inherently illegal for the livestock industry in the guise of interpreting what is “unfair”, federalized every contract dispute in the livestock and poultry industries and required packers to document and justify any differences in prices paid to producers.
GIPSA• NPPC opposes legislation and regulation that
restrict producers’ ability to sell and packers’ ability to buy livestock, including policies that limit the use of production contracts and marketing arrangements.
• NPPC urges congressional lawmakers to pressure USDA not to promulgate the two GIPSA rules.
GIPSA Impact Potential• A study found that the 2010 rule would have cost
the pork industry more than $330 million annually.
• NPPC / NCBA funded an update of our 2010 study on impact– Potential impact estimated at ∞ $1.5 Billion
• Issues– Price justification (Mktg. and Prod. Contracts)– Redefinition of injury– Tournament scoring
GIPSA Action Plan• Waiting for a rule of some type• GIPSA Rider included in House FY17 Ag Approps
– Not included in Senate version– Plan is to address the issue in conference
• Request made by NPPC, NCBA, NCC, NTF and NAMI to extend comment period
GIPSA Next Steps • Keep language in House FY17 Ag Approps
– Address the issue in conference
• Secretary Vilsack testified before Senate Ag Committee
• Barnyard letter to USDA• Request made by NPPC, NCBA, NCC, NTF and
NAMI to extend comment period