Bill Winkelman - Your Investments at Work: Pork Checkoff Programs
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Part II Pork Checkoff Programs, Your Investments at Work: National Organization Update - Bill Winkelman, National Pork Board, from the 2012 Iowa Pork Congress, January 24 - 26, Des Moines, IA, USA.
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Bill Winkelman - Your Investments at Work: Pork Checkoff Programs
- 1. Building A Better Tomorrow Bill Winkelman Iowa Pork Congress January 2012
- 2. Our Belief & Our Messages
- 3. Our Belief : We can produce measurable results that provide pork producers a return on their checkoff investment that will make a meaningful difference in their lives.
- 5. Our Message COMMITTED TO CONTINUOUS IPROVEMENT
- 6. Our Message
- 9. New Brand Received Well!
- 12. 2011 = + 3.8% to-date vs. 2010 Goal Status: Real Per Capita Pork Expenditures
- 17. PQA Plus® Certifications PQA Plus® Certified Producers = 53,674
- 23. U.S. Farmers and Ranchers Alliance 02/21/12
- 24. Language Matters Don’ t Say that “ Using pesticides on crops” “ Using fertilizers on crops” “ Using genetically modified (GMOs) or biotech seeds” “ Supplementing naturally occurring animal hormones” “ Administering antibiotics to animals” Say this Comfortable (8-10) Total Food Com “ Preventing bugs and other pests from eating crops” 5.21 4.36 “ Nurturing crops with the nutrients they need to grow” 6.41 5.99 “ Using seeds developed to grow stronger, more resilient crops” 6.00 5.54 “ Helping animals maintain lean muscle growth” 4.98 4.18 “ Keeping animals from getting sick” 5.40 5.11 Comfortable (8-10) Total Food Com 3.49 3.90 5.21 4.64 4.28 3.86 3.56 2.82 3.94 3.38
- 25. 2012 High Level Timeline 02/21/12 Q1 Q2 Q3 Q4
- 29. Thank you.
Editor's Notes
- 2011 was a very good year for pork and for most pork producers. Thank you for this opportunity to review some of the big developments from the last 12 months and to look ahead with optimism and enthusiasm to a great 2012.
- ** Note these come from in number 10 first Top Ten list of 2011 Cooking Temp. Changed to 145 degrees From the Other White Meat to Pork to Pork. Be Inspired. The new campaign has generated strong support from our Pork Champion consumers. National Pork Board along with 55 other companies, organizations, & associations are a part of the US Farmers and Ranchers Alliance. The purpose of the Alliance is to start a new dialogue with consumers regarding today ’s food production. Another record year for Exports in 2011 beating our 2008 record. Export value is currently $54.44 per head. 2011 was a great year for promotions in food service and retail. Pulled pork became a hit in restaurants like Quiznos. Costco, the 3 rd biggest retailer, and the Pork Checkoff teamed up in October with a promotion that increased Costco pork sales 25% for the month. PQA Plus certifications has reached an all time high with 80% of our hogs coming from sites that have been assessed. The Best Defense is a strong offense and Preparation is key. In 2011 we developed our Vulnerabilities assessment with over 200 producers & Industry partners. We identified 10 areas to concentrate and tune our crisis plans to including: Foot and Mouth Disease. National Pork Board along with the University of Arkansas researched the pork industries carbon footprint, and created an easy to use on-farm calculator. We found our carbon footprint is much smaller than reported in some previous global studies. 4 Regional meetings took place with State association and state leaders to talk about State and National working together, continuous improvement of cost share programs and communication and the future of the pork industry. 2011 marked the 25 th anniversary of the Checkoff and during the Annual Pork Checkoff Producer Survey the Pork Checkoff got an 82% approval rating!
- The new brand has been well received by the industry. Most importantly, our consumers have told us in our tracking study that “inspiration” is a believable position for pork. We are creative, amazing, vibrant – We are inspiring consumers! With record prices and an uncertain economy, pork is still part of our target consumer’s menu choice. These ads could all be customized by the State Associations as part of one of our many Cost Share programs.
- In 2011 we wanted to build on the success of the 2010 integrated program with Kroger. We selected Costco as our partner.
- There ’s no better way to know you are successful than to have your customer ask when we can start planning another promotion! Scott will be in Des Moines in January to start talking about our 2012 fourth quarter integrated promotion.
- We often get asked how we measure success. For producers, we believe the best test is the amount of money consumers are spending on pork. The board in 2010 set a goal of increasing per capita pork expenditures by 10 percent by 2014. Through September of 2011, we saw that consumers are willing to pay more for pork even with record retail prices. We have seen 3.8% growth to date (through Sept) for real per capita expenditures vs. the previous 12 months. In Aug. and Sept. expenditures did drop below previous year for those months with less product available domestically as exports shot up. No matter what the supply is ( “disappearance”), the goal of domestic marketing is to influence the decision-making process so consumers find value in pork at record high prices. “Disappearance” is sometimes labeled as “consumption.” Disappearance is what is available domestically and is NOT the same thing as demand. Economists can calculate the “demand index” to measure the expected disappearance an average price. The demand index has also grown in 2011.
- The good news about pork doesn ’t stop at the borders. When final data from 2011 are in, we expect another record year for U.S. Pork exports.
- These are the numbers through late-fall 2011.
- The U.S. Meat Export Federation conducts marketing and promotion activities in markets around the world (through Checkoff funding) to ensure that U.S. Pork is top of mind and accessible to foreign customers. Mexico is the highest volume market but the products are less expensive (primarily hams). South Korea was a very large market this year because of the FMD outbreak in its domestic herd. Japan has always been a good customer but this year because of the tsunami and related issues, even more was exported. China was huge this year and that market is anticipated to grow even more.
- PQA PLUS® has been a key focus for the Pork Checkoff in 2011. Its important to remember that our food service and retail partners are supportive of this program but, we must keep moving forward. We strive to hit 100% of producers and employees to be certified and have their sites assessed in this voluntary program.
- Good progress has been made over this past year on the % of Inventory that has been site assessed. Packer requirements, extension support, and state and national staff focus have all contributed to this achievement.
- Four opportunity areas for improvement were identified in both the site assessment action plans as well as the verification process. FDA requires that medication and treatment records be maintained on site for one year. Most all sites had their records for the current turn of pigs, but not for the past 12 months. Documentation of an emergency action plan, daily visits, and a euthanasia plan were all opportunities. Available at this year ’s tradeshows are flash drives that include templates for these plans and records that can be downloaded. The pleasant surprise of this process has been the high % of sows within breeding that have good body condition scores and adequate space; long discussed as one of the bigger issues within our industry.
- Further coordination between our Ethical Principles and our signature PQA program is a positive step and provides further support to our continuous improvement goals. This integration will require more recognition of environmental and worker safety practices on the farm. We have started the process and will be working with committees throughout 2012 to deliver this revision on time at World Pork Expo 2013.
- A little over a year ago, Pork Checkoff CEO Chris Novak was one of a handful of commodity organization executives who decided it was time that everyone with a stake in production agriculture get on the same page. Over the years, there have been many fragmented efforts to build trust in the way farmers produce food. What was needed, these executives determined, was a unified voice and a unified strategy to help farmers and ranchers tell their story. The result is the U.S. Farmers and Ranchers Alliance, which now has more than 60 members, including most commodity groups and many major agricultural companies. The National Pork Board is a major supporter, and National Pork Board member Dale Norton, a producer from Michigan, serves on the USFRA executive committee as treasurer.
- Already, USFRA is helping farmers and ranchers improve the level of conversation. This is from the same survey of consumers and opinion leaders. To read the chart, the total column represents all 1,200 respondents; the Food Comm column represents food communicators, defined as those in a position to influence food decisions made by those outside their own families. Food communicators as a group are very skeptical about farming practices. Half the survey participants were asked how comfortable they were with the practices described on the left; the other half on the right. Notice how a slight change in language dramatically improves the comfort level, even among the skeptics. During 2012, USFRA will be conducting training sessions around the country to help farmers understand how to use more effective language when they talk about what they do. The next step is to conduct training sessions around the country to help farmers learn these important conversation techniques.
- This slides shows the timetable for activities in the 2012 communications plan. Quarter 2 marks the beginning of the conversation training I described in the Language Matters slide. We hope to do a training session for delegates attending Pork Forum in Denver in March.
- The bottom line is that for USFRA to be successful in injecting real farmers in the national conversation about food, we need as many farmer voices as we can get. If you would like to become one of those voices – or just learn more about USFRA and its objectives – you can go to usfraonline.org, or to fooddialogues.com, where a variety of conversations take place every day.
- So what can you do? People involved at every level of pork production are being asked to demonstrate their commitment, not just in words, but also in actions. Every action that supports the We Care initiative benefits the entire industry. The Pork Checkoff offers numerous resources and education and training opportunities that not only help build trust in our industry, but also have proven to be useful to thousands of producers in increasing production efficiencies and lowering costs. Pork producers (and when appropriate, production employees) are urged to take the following actions that will contribute to the success of the We Care initiative: