1. The Who, What, & Where of the Pork Checkoff? A National Pork Board Update Swine Education In-Service Chris Novak, CEO October 2, 2013

2. The Foundation: 1985 Farm Bill

3. Where Our Money Comes From Funded by an assessment (checkoff) 40 cents per $100 value on each sale (0.4% of value) on all market hog, feeder pig, & seedstock 265 lb. X 68.5¢ = $181.52 X.40% = 72.6¢/hd. Market hog collected by market (buyer) Seedstock & Feeder Pig seller collects

4. Checkoff Rate & Collections: 1986-2012

6. Organizational Flow Chart

7. National Pork Board Members 15 Producers/Importers 12-state Minimum Nominated by Delegates; Appointed by Secretary of Agriculture 3-year Board Terms Current Board Officers – June 2013-June 2014: – President: Karen Richter, MN – Vice President: Dale Norton, MI – Treasurer: Derrick Sleezer, IA – Immediate Past President: Conley Nelson, IA

8. Program Committees 9 Standing Program Committees – Animal Science, Animal Welfare, Domestic Marketing, Environment, Pork Safety, Producer Services, Public Health, Swine Health, Trade Task Forces, Working Groups as needed – Strategic Planning, Audit, Sustainability, TQA Involves 250 + producers/advisors Utilize producers and others with specific expertise (vets, packers, retailers, etc.) Planning Responsibilities – Establish priorities, set goals, track progress, report results

9. USDA’s Oversight Role Review and approve all budgets, contracts, advertisements, producer communications, program audits, and projects Ads must follow USDA, FDA, and FTC guidelines. Information must be factual and defendable with supporting documentation. Prohibition against disparaging comments or false claims against other commodities. Ensure program compliance with the Act and Order—no lobbying.

10. Board, Council, & States? 10

11. Pigs, Pork, & People

12. PEDv – A Silver Lining?

13. PEDv - Porcine Epidemic Diarrhea Virus An FAD Test Run Challenge of Program v. Non-Program Disease Making the Call: Eradication v. Management Understanding the Value of Premise ID Proprietary & Confidential v. Collaboration & Cooperation A Concept Worth Exploring: USPCE=NPIP? A New Possibility: Producer-Funded Indemnification?

14. An “Inspiring” Summer?

15. February 2013 Situation Analysis High-Priced Feed from 2012 Drought Causing Significant Losses in the Pork Industry Major Trading Partners Announce New Trade Restricting Measures Early in 2013 Increases in Pork Production Growing Disparity Between Pork & Beef Prices 15

16. Summer Supplemental Campaign Objectives Communicate pork chops’ relative value compared to beef steaks Educate consumers on the pork chop cut name changes Reinforce USDA temperature change and range of doneness

17. Radio & Online Advertising 17

19. Is This Inspired Campaign Paying Dividends? 19

20. 20 Pork Target Driving a Higher Proportion of Volume % of All Fresh Pork Consumed by Target 95% Confidence Interval Significantly Higher Significantly Lower

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22. Winning the Hearts & Minds of Consumers

23. What We’re Facing

24. Consumer Concerns About Agriculture 1-10 scale: 1 = extremely UNCOMFORTABLE with it 10 = extremely COMFORTABLE with it Most Uncomf. (1-3) Influencers Uncomf. (1-3) “I’m not aware of this method” Supplementing naturally occurring animal hormones 55%72%2% Using dihydrogen monoxidization on crops and farm animals 52%53%14% Using pesticides on crops 49%59%1% Administering animal antibiotics 48%61%1% Using genetically modified (GMOs) or biotech seeds 43%51%2% Using fertilizers on crops 26%31%- H2OH2O

25. The Larger Puzzle

26. Progress? “The only comment I received this week was from a conversation I had with a retailer...he saw [a] headline [and] was concerned about pork, but opened the article and when [he] saw it wasn’t about pork- completely dismissed the issue. Direct comment, “I figure if it’s pork related and it’s an issue, I’ll get an e-mail from you directly or a call. Until then, I’m not worrying about it”

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28. Keeping the Momentum

30. NPB Goals #1: Operating Freedom: NPB will protect the rights and ability of U.S. farmers to produce hogs in a socially responsible and cost-competitive manner. #2: NPB will refresh and reposition the image of U.S. pork to increase domestic and international consumer demand. #3 NPB will pursue strategies to enable U.S. pork farmers to remain highly competitive long term on a global basis.

31. Say : Do

32. Our Vision Leading a world-class food industry PQA Plus TQA Euthanasia Pain Management Verification Carbon Footprint Water Footprint Environmental Assessment Sustainability KPIs HR Toolkit Swine Science On-Line Manager Certification Worker Safety Sow Productivity Seasonality Feed Efficiency Brand Launch Trade Evaluation Responsible. Sustainable. Professional. Profitable.

33. The 2014 Strategic Planning Process

34. A broader planning task force Evaluation of progress against benchmarks Deeper dive on market data analysis More outreach and engagement—producers, committees, & states More clarity on targets A broader conversation on research capacity Opportunities for an integrated marketing approach? Greater food chain alignment of programming? An investment in enhancing consumer experience with pork?

35. A Note of Thanks & Questions?