National Pork Checkoff Board

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National Pork Checkoff Board
Ohio Pork Producers Annual Meeting February 7,
2003 Dayton, Ohio
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CEO Report

• Responding to a Mandate for Change
• 2003 Industry Challenges
• Creating Our Future
• Questions

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National Pork Checkoff Board

• Responding to a Mandate for Change...
• A responsive organization
• An efficient organization
• And deliver on the Checkoff promise

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A Responsive Checkoff Organization

• The Evolution of a New Culture
• Establish a service attitude among all staff
• Outward focus versus inward focus
• out of the office / develop listening skills
• Checkoff Call Center - (800) 456-PORK
• quick and easy access to help / first call
  resolution

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An Efficient Checkoff Organization

• Fundamental Business Principles
• ROI Focused Programming
• Measurable Objectives and Tactics
• COGS Mentality
• Over 900,000 COGS savings in 2002
• Total Staff Participation
• Deployment of technology for solutions
• Less Checkoff programming staff prior to the
  separation

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And Delivering on the Checkoff Promise

• The Pork Checkoff will be recognized
• by producers as an effective investment to
• Increase domestic per capita demand for pork.
• Increase export demand for US Pork.
• Provide access to the knowledge and opportunities
  that allow all producers to be competitive.
• Meet the challenges of responsible 21st Century
  pork production.

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Delivering on the Checkoff Promise

• The Pork Checkoff will be recognized
• by producers as an effective investment to
• Increase domestic per capita demand for pork.
• Increase export demand for US Pork.
• Provide access to the knowledge and opportunities
  that allow all producers to be competitive.
• Meet the challenges of responsible 21st Century
  pork production.

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Increasing Domestic Demand for Pork

• Progress - Thru September 2002, domestic demand
  is for pork is up 1.7, consumption nearly 4.
• Record pork featuring in a competitive
  environment
• (Pork ? 8.9, Beef ? 7.1, Poultry ? 5.5)
• Successful Retail Promotional Platforms
• ARCA (16 - 6,000 - 38 million - 9.9 million - 910
  - 400,000)
• Other Tailgate 2002 (33 - 6,500, 13 million)
• Integrated Meatcase Program - ? all sales 5, ?
  pork sales 9
• Food Service Gains
• Food Service growth 11, Pork growth in Food
  Service is 22
• New menu items at Taco Bell, McDonalds, TGI
  Fridays, Burger King, Applebees and more.

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Delivering on the Checkoff Promise

• The Pork Checkoff will be recognized
• by producers as an effective investment to
• Increase domestic per capita demand for pork.
• Increase export demand for US Pork.
• Provide access to the knowledge and opportunities
  that allow all producers to be competitive.
• Meet the challenges of responsible 21st Century
  pork production.

10
Increase Export of US Pork

• Progress - Thru September, 7 growth for 2002 and
  on target for a 12th consecutive year of record
  exports.
• This follows a 23 increase in 2001 and should
  end 2002 with 8.4 of US production exported.
• Consumer marketing efforts in key countries.
• Japan effort centered on 50 retail chains with
  4,411 outlets
• 2002 Japan purchases 9 ? than same period last
  year, at prices averaging 4 ?.
• Stronger partnership between USMEF and the Pork
  Checkoff organization.

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Delivering on the Checkoff Promise

• The Pork Checkoff will be recognized
• by producers as an effective investment to
• Increase domestic per capita demand for pork.
• Increase export demand for US Pork.
• Provide access to the knowledge and opportunities
  that allow all producers to be competitive.
• Meet the challenges of responsible 21st Century
  pork production.

12
Provide Access to Knowledge Opportunities

• Progress
• Expanded web based information
• New Producer Call Center
• 800-456-PORK
• New Distance Learning Strategies
• Pork Industry Conferences and a New Swine Care
  Handbook
• Niche Pork Marketing Conference
• Whole Hog Value Symposium

13
Delivering on the Checkoff Promise

• The Pork Checkoff will be recognized
• by producers as an effective investment to
• Increase domestic per capita demand for pork.
• Increase export demand for US Pork.
• Provide access to the knowledge and opportunities
  that allow all producers to be competitive.
• Meet the challenges of responsible 21st Century
  pork production.

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Meeting Challenges of 21st Century Production

• Progress
• CNMP training in cooperation with EMS
• Leading edge Certification Programs
• PQA III Certification program
• certified more than 71,000 producers
• certified over 32,000 youth
• TQA Certification program
• over 4,500 truckers certified in 2002
• A strong partnership with University research
  groups
• Funded 2.7 million in research initiatives

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The Meeting the Challenge statement provides
for...

• clearly defined objectives,
• a tool for measurement,
• and a focused organization.

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2003 Industry Threats Challenges

• Key Issues on the Checkoff Programming Radar
• Domestic protein competition
• Competition for international market-share
• Launch US Pork brand internationally
• Animal Welfare
• Anti-microbial debate
• Country of Origin Labeling

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Creating Our Future!
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Creating Our Future

• What is a Checkoff?
• Its a funding mechanism, not a program.
• Its a funding system where all who benefit,
  contribute.
• Its an opportunity for producers to pool their
  resources into something bigger than themselves.

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Creating Our Future

• A variety of funding system problems
• Legal/constitutionality
• Survey / referendum
• Funding disparities between Checkoff programming
  and advocacy activities.

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This is your program!

• Questions