Pork Industry Update

Dallas Hockman

Vice President Industry Relations

A Comprehensive Approach

Producer

Accountability

Protecting

Freedom

To

Operate

Marketplace

Engagement

Exposing

The Activist

Agenda

A Comprehensive Approach

Producer

Accountability

A Comprehensive Approach

Principles + Practices + Proof = Public Trust

The We Care Model

Prevention/Preparedness

• Shared Values

• Ethical Principles

• Establishing a

Culture

• Hiring

Practices

• Codes of

Conduct

• PQA Plus

• TQA

• Ongoing

Training

• SOP’s

• Zero Tolerance

• Whistle Blower

• Documentation

• Certification

• Assessment

• Verification

• Corrective Actions

• Continuous Improvement

• Transparency – Farm Visits

• Animal Care Review Panel

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

Whole Foods

Animal Welfare

Raiting System

Mark Bitman - A Food

Manifesto for The

Future

Inside a Beef

Slaughterhouse Undercover

Video

UEP and HSUSPromote federal

standards

Undercover

Video leads to

loss of business

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

Teaming up vs. antibiotics at US Senate

Files complaint with

SEC over Smithfield

Food videos

Video of alleged

abuse at major pork

producers

Cease use of

gestation crates

Phase out

gestation stalls

Ban on “extra-label

uses” of some drugs

COK

Video of

Iowa sow

farm

Walmart

launches labelBack to Start ad

NPR:

Antibiotics

Create

Superbugs

New animal

welfare

policy

Better World

for Farmed

Animals

Phase out

gestation stalls

Meat is the

New

Tobacco

Removing Choices

Who’s Agenda?

Do you consider yourself to be a vegetarian/vegan?

No

97.1%

Yes

2.9%

Source: Consumer Issues Monitor 2010

Vegetarian/Vegan

A dynamic new environment

Driven by 3 Negative Topic Areas

Passion against “factory

farms” and farming

Concerned about their

food and health“Green”

Groups Attacking Our

Industry

Influencers

27

BrandsIndustryLeadership

and Staff Channels Policy General

Consumers

Engaged

Consumers

Those with the greatest influence on market

access tend to come from these key audience

segments

2012

SEPTEMBERFEBRUARY MARCH APRIL MAY JUNE JULY AUGUST OCTOBER NOVEMBER

2003

2008

DECEMBER

JANUARY 2013

2015 2017 2022

100% Committed to a Date

2008: 5% per

year for 3 Years

“plans

by 2017”

“20%

over time”

“formulating

plans”“encouraging

suppliers”

“It will take time.”

“working with

Suppliers”

“formulating a

plan”

“shifting away”

“within

10 years”

“discussions

complete by 2022”

“working with

Suppliers”

“substantial majority

In 5-7 years”

“determining

a timeline”“over time”

“solution

by 2022”“could take

ten years”

“continue

working”

Unclear/Non-Specific Commitments

“committed to

suppliers”

“actively collaborating

with suppliers”

“could take up to

ten years”

“could take up to

ten years”

“directing suppliers

by 2018”

No Simple Solution

Animal Welfare

Carbon Footprint

Brand Reputation

Supply ChainManagement

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 15Your 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

3/4/2013 43

Infographic

Questions

& Topics

Videos

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,Peter Cottontail

49

From information, knowledge

Paragon Economics, Inc.

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

U.S. Pork

Variety

Meats

to ChinaHams to

Mexico

Loins and

Tenderloins

to Japan

Bellies and

Butts to

South Korea

Picnics and

Trimmings

To Russia

Belly

Boston

ButtLoin

Ham

Picnic

U.S. Pork