National Pork Producers Council Update

Courtney KnuppDeputy Director of International Trade Policyknuppc@nppc.org

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