National Pork Board Update - 2015
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John Johnson, COO, National Pork Board, 2015 Pork Management Conference, June 16-19 in New Orleans.
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National Pork Board Update - 2015
- 1. NPB Update 2015 Pork Management Conference John Johnson, Chief Operating Officer
- 2. Update Subjects • New CEO • New Strategic Plan • Vulnerabilities Assessment • Antibiotics • Common Industry Audit • Swine Health Information Center • Supplemental Marketing Efforts • Restructuring
- 3. New CEO
- 4. 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!)
- 9. 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.
- 10. 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. Implement an Enterprise Risk Management System to prevent/mitigate threats. Reduce national average carbon footprint by 5 percent. Reduce national average water use by 5 percent. Producers accounting for 50 percent of U.S. pig production will annually report sustainability performance metrics.
- 11. 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.
- 12. Invest in research & education programs focused on productivity and sustainability. Share benefits with producers, consumers and the community. How we will measure improvement Develop diagnostic tools, surveillance and mitigation strategies to eliminate top U.S. swine diseases. Decrease the annual economic impact of PRRS by 20 percent. Improve ability to detect, prepare for and respond to emerging disease. Expand worker safety metrics to 50 percent of industry and reduce employee injury by 15 percent. Improve industry professionalism by attaining 25 percent adoption of education, training and development programs. Improve U.S. swine herd productivity through research, tools and information. Targets: • 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).
- 13. 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.
- 14. Connect and collaborate with food chain through focus on nutrition, quality and sustainability. How we will measure improvement 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. Reduce the percentage of pork loin chops scoring below color score “3” by 10 percentage points. Increase positive perceptions of U.S. pork among registered dietitians by 20 percent.
- 16. 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
- 17. 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
- 18. 2015 Prioritized Vulnerabilities • 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.
- 19. Antibiotics
- 20. A Different Situation • 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
- 23. $5.3M in NPB Antibiotic resistance research since 2000
- 24. Embrace 209 & 213 and more
- 25. 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.
- 27. Timeline and Evolution 1959 The first HACCP system developed 1989 The PQA® program is launched --Sulfa residues --Food safety 2001 TQA is launched --Meat quality --Animal care during handling and transport --V5 released this year 2003 SWAP program introduced --On-farm animal care --Site assessment 2005 The Take Care program is released 2007 The PQA Plus® program is launched 2008 The industry launches the We Care responsible pork initiative 2008 Packers show commitment to PQA Plus 27
- 28. 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”
- 29. 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?
- 30. 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.
- 31. Industry Audit Task Force • Purpose - Facilitate the development of a workable, credible and affordable on-farm verification system. • Objectives – 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
- 32. Common Swine Industry Audit • 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
- 33. Swine Health Information Center
- 34. 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
- 35. Lessons? 1.Pathway of introduction is difficult – at best Be prepared for the next one because it is coming 1.We can’t expect USDA alone to respond to emerging diseases Industry needs to take more responsibility for non-regulatory diseases 1.Better state-federal-industry response coordination is essential Agreed upon response plan before the next disease PEDv – 8 million dead pigs - Working on Our Preparedness
- 36. AASV Task Force: PEDv Wasn’t a Surprise! • 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?
- 37. Swine Health Information Center
- 38. Working on Our Preparedness Swine Health Information Center •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
- 39. • 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 • Lifespan and funding – 5 year lifetime – One time Checkoff investment of $15 million Swine Health Information Center
- 43. 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.
- 44. Restructure
- 46. Questions?
- 47. This message funded by America’s Pork Producers
Editor's Notes
- Thank you for taking the time to learn a bit more about the National Pork Board’s 5-year strategic plan. Again, working together at accomplishing these three goals by 2020 will position the U.S. pork industry for long-term success.
- Previously, the strategic plan was focused on the producer – articulating a need to re-enforce the producer’s freedom to operate. The new plan is customer-focused with all of our efforts centered on doing what’s right for people, pigs and the planet. It’s a sharply focused vision for the future of America’s pork producers. It defines in clear, customer-centered language a set of objectives focused on results. The planning task force included pig farmers and representatives from allied industries, academia and the supply chain. Collaboration across the industry and demonstrating continuous improvement is critical to achieve the vision.
- What do we mean by “Building consumer trust?” Well the key words are highlighted – building trust requires collaboration with our food chain partners and sharing with them our promotion and adoption by producers of on-farm management practices. Only through sharing our story of production practices -- which reflect our We Care principles -- can we even hope to demonstrated continuous improvement and build trust.
- We will measure improvement by demonstrating the adoption of key management practices. The bulk of the action items for Building Consumer Trust come from clearly defined metrics – ranging from sustainability practices to environmental practices, to animal welfare efforts. At the end of the day, success will measured through a tracking study of engaged consumers.
- Driving Sustainable Production is at the heart of our work in Producer Services and Science & Technology. This is where Checkoff dollars are invested in research and producer education programs that enhance productivity on the farm. But the key here is that it is not just about environmental sustainability, but includes practices that help build the profitability of the farmer’s business. To be sustainable means being able to financially stay in business. Profitability is not only OK, but it is a requirement.
- But investing in programs is only the first step. We must share the results and benefits of these investments equally with our producers, but also our packers and processors, our foodservice and retail customers, and our consumers. The development of diagnostic tools and strategies to identify and eliminate disease are critical. For example, that is why we are investing $15 million in a Swine Health Information Center. But it also means improving our industry’s professionalism, worker safety and swine herd productivity. Each of these will be closely monitored.
- Building Trust and Driving sustainable production results in Goal three: Growing Consumer Demand. If we build trust and enhance production, we will grow consumer demand – both in the U.S. and abroad. Our key messages with our consumers will be to demonstrate how our work creates an improved product. Pork that is of higher quality, more nutritious and, in the end, more sustainable.
- Measuring our success is again centered around collaboration with our food chain partners and a commitment to improved nutrition, quality and sustainability. Our objective is to increase U.S. market share by one percentage point – and that is a huge number, reflecting an increase of $2.35 billion in pork sales. We will measure success through increasing both sales and volume of pork exports. Additionally, improving the color of pork – from pale pink to a deeper red – and improving pork’s perception and position among registered dietitians are also key.
- Combined all input and prioritized—Dug deeper to understand what made up the last list of Vulnerabilities Antibiotics In all the areas we discussed –previously was listed in each area—this time we decided to use it as a full category so sharper focus on all aspects. Foreign animal disease—fell to 2nd place this time, had been #1. Not any less important, but other issues gained in importance. Highest impact, lowest likelihood Market preparedness—A change from 6th priority and Feed Availability to all aspects of what is happening with the markets. High likelihood and immediate threat Ethics of pork production—New name, but include many of the old vulnerabilities: sow housing, production practices, image of modern production Dietary guidelines –from last list, but new name. Being much more specific school lunch, sodium content, portion size
- The PQA Plus program was first launched in 1989 and was called Pork Quality Assurance®; it quickly became the pork industry’s leading educational program. Over the years, PQA has expanded and evolved, incorporating the latest scientific knowledge and production methods and in recent years, a site assessment component designed to evaluate animal care practices on farms. It is this commitment to continuous improvement – striving to be better – that has built confidence among industry customers and stakeholders in the program’s responsible production practices. As this timeline illustrates, the current PQA Plus program integrates aspects of other industry programs, providing producers with the most comprehensive food safety and animal care training available.
- To address these concerns about how to better address future emerging diseases NPPC passed a wide-ranging resolution at this spring’s Pork Forum. It was a multi-part resolution – including developing a plan in the event of new economically significant swine diseases. T