NPPC Update

Iowa Pork Congress

January 2012

The power of your national and state organizations working together on your behalf

Fighting for reasonable

legislation and regulation

Developing revenue and marketing

opportunities

Protecting your

livelihood

Issues

• Legislative and Regulatory Successes

• SIP/LEADR Progress

• Trade Policy/Export Market

What a Year

• Won CAFO suit over EPA

• Defunded GIPSA Rule

• Lifted Mexico’s tariff

• Passed South Korea, Columbia and Panama FTAs

• 145 degree cooking tempertaure

Legislative /Regulatory Issues

• GIPSA Rule

• MCOOL

• Farm Bill

• CAFO litigation

• HSUS/UEP

• Supreme Court hears case on Non-Amblatory hogs

Legislative/Regulatory Issues

• Proposed GIPSA Rule– Over 16,000 comments from us– 60,400 total comments– USDA conducting a Cost Benefit

Analysis

Strategic Investment Program (SIP)

• SIP– Voluntary investment $.10/$100

in value– Over 2600 investors = 65% of the

pigs

Strategic Investment Program (SIP)

• Iowa Progress – Investors

• 55 new investors in 2011• 526 total investors

LEADR: To Date

• 1,045 participants nationwide

• 252 participants in IA

• 20 new IA participants in 2011 • Need help in Rep. Braley, Rep.

Loebasack districts

2012 Legislative Challenges

• All Elections…All the Time • Legislate or Regulate? Punt?• Farm Bill vs. Reconciliation

Process vs. Sequestration Who is Driving this Bus?

• Debt Ceiling Feb/March 2012• Meaning: More Gridlock

11

Ongoing Issues & 2012 Projections

Ongoing Issues Feed Availability

New CAFO Rules: National CAFO Database 3rd Party Manure Transfer Defining Discharge NH3 Emissions = H2O Discharge

Air Emissions Study Reviewing Data Ensuring Sound Science Setting Emission Factors

2012 Projections & Challenges

• Post Election Regulatory Mayhem?– New CAFO Rule– Early Release of NAEMS Data

& Emission Factors– Air emissions Reporting Rule– Mississippi River TMDL– Drainage Tile Permitting

18

2012 S&T Focus

On-Farm food Safety & Farm Animal Welfare Issues: New USDA Focus

Final FDA Guidance on VFD and Transition from AGP

Farm BillFederal Animal Production LegislationResearch Title & Animal Health

Prgms FMD Vaccine Bank, Catastrophic

Business Continuity Insurance Antibiotic Ban Via ADUFA?

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1500

2000

2500

3000

3500

Tot

al C

alor

ies per

Cap

ita

per

Day

Year

Global Food Supply

Developed Countries

World

Sub-saharan Africa

Asia

South Asia

2,800 Calories - Threshold for National Food Security

Source: FAO

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Pop

ula

tion

(in th

ousa

nds)

Year

World Population Growth

LessDeveloped Countries

More Developed Countries

Source: UN Population Division

Urban

Rural

—

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Pop

ula

tion

(in th

ousa

nds)

Year

World Population Growth

Source: UN Population Division

0

50

100

150

200

250

300

350

400

450

1979-81 1997-99 2015 2030

Kil

ogra

ms/

capi

ta/y

ear

Year

Changes in World Food Consumption

Milk and dairy

Meat

Vegetable oils, oilseeds

Pulses

Sugar

Roots and Tubers

Cereals

Source: FAO

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

Met

ric

Ton

s

Year

U.S. Pork Exports

U.S. - Canada FTA

NAFTA(Mexico)

WTO Uruguay Round(Japan & South Korea)

U.S.-Taiwan Pork Deal

China and Taiwan WTO Accession

Russia Pork TRQs

Australia FTA

Congress Ratifies

DR-CAFTA

Country/Region 2010 2011 % Change 2010 2011 % Change

Japan 1,498,767 1,788,569 19% 397,006.1 451,365.0 14%

Mexico 857,686 893,047 4% 479,350.1 465,519.0 -3%

Canada 556,590 666,954 20% 163,932.0 187,255.8 14%

China/Hong Kong 331,638 739,107 123% 237,442.3 415,141.6 75%

Russia 184,222 203,831 11% 78,280.3 66,762.6 -15%

South Korea 163,122 452,616 177% 76,361.7 172,660.8 126%

Australia 129,066 181,444 41% 47,931.6 57,998.8 21%

ASEAN 121,138 114,111 -6% 61,269.7 48,443.7 -21%

Central and South America 119,296 152,371 28% 53,336.0 64,316.7 21%

Caribbean 84,971 76,286 -10% 39,769.3 30,720.3 -23%

European Union 37,038 23,880 -36% 13,373.7 7,109.7 -47%

Taiwan 48,405 47,035 -3% 27,340.6 24,284.8 -11%

Other 46,304 43,495 -6% 19,892.4 16,376.1 -18%

World Total 4,178,243 5,382,746 29% 1,695,285.8 2,007,954.9 18%

January-November January-November

U.S. Pork and Pork Variety Meat Exports

(Metric Tons) (US $1,000)Volume Value

Value

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

US $

1,00

0

Destination Country

U.S. Pork and Pork Variety Meats Exports

Jan-Nov 2010

Jan-Nov 2011

Volume

0

100,000

200,000

300,000

400,000

500,000

600,000

Met

ric Ton

s

Destination Country

U.S. Pork and Pork Variety Meats Exports

Jan-Nov 2010

Jan-Nov 2011

U.S. Pork Exports

2011 EstimatedPercent Exported: 23% (Muscle Meat Only)27% (Plus Variety Meat)Export Value per Hog: about $55About 25 percent higher than 2010

0%

5%

10%

15%

20%

25%

Per

centa

ge

Year

U.S. Pork ExportsPercentage of Production

% Exported

FTAs• FTAs passed the House and Senate along with legislation

renewing Trade Adjustment Assistance (TAA) & Generalized System of Preferences (GSP)

– Both Colombia & Panama have ratified the FTAs.– Korea passed KORUS last week.

• Focus now shifts to implementation of FTAs

• EU-Korea FTA entered into force on July 1, 2011• Canada-Colombia FTA entered into force on Aug. 15,

2011

Benefits:• Increase U.S. pork exports by more than $770 million

annually• Add more than $11 to U.S. live hog prices

• Generate more than 10,200 pork industry jobs

Farmer And Rancher Mobilization

Join the conversation about the food you produce

04/12/23

27

Alabama Farmers Federation Indiana Soybean Alliance North Dakota Soybean Council

American Egg Board Iowa Soybean Association Ohio Farm Bureau

American Farm Bureau Fed. Kansas Farm Bureau Federation Ohio Soybean Council

AFB Women’s Leadership Committee Kansas Soybean Commission Pennsylvania Farm Bureau

AFB Young Farmers & Ranchers Kentucky Farm Bureau Federation South Carolina Farm Bureau Federation

American Farmers for the Advancement and Conservation of Technology

MI Farm Bureau Family of Companies Southern Peanut Farmers Federation

American National Cattle Women MN Soybean Research&Promotion Council

Tennessee Farm Bureau Federation

American Sheep Industry Missouri Farmers Care Texas Farm Bureau

American Soybean Assoc. National Association of Wheat Growers U.S. Soybean Federation

American Sugar Alliance National Cattlemen’s Beef Association United Egg Producers

Arkansas Farm Bureau Fed. National Corn Growers Association United Fresh Produce Association

Assoc. of Agriculture Production Execs National Cotton Council United Sorghum Checkoff Program

California Farm Bureau Fed. National Milk Producers Federation United Soybean Board

Cattlemen’s Beef Board/Beef Checkoff National Pork Board USA Rice Federation

Dairy Farmers of America National Pork Producers Council U.S. Grains Council

Federation of State Beef Councils Nebraska Farm Bureau Federation U.S. Poultry & Egg Association

Georgia Farm Bureau Nebraska Soybean Board Virginia Farm Bureau Federation

Illinois Farm Bureau New York Farm Bureau Federation Western Growers

Illinois Soybean Association North Carolina Farm Bureau Federation West Virginia Farm Bureau

Indiana Farm Bureau Federation

Questions?