2011 Annual Report - National Pork Board

2011
Year in
Review

2011 Pork Checkoff Annual Report
Fellow Pork Producers,
Opportunity can be found in every challenge; change should be evaluated and embraced,
rather than feared. And there is always room to keep learning. In 2011, the pork industry did
just this.
It is my privilege to introduce our 2011 Annual Report which highlights some of the key
accomplishments that our Pork Checkoff investment provided:
• One major change for the pork industry was the launch of the new brand campaign Pork ®
Be inspired. ® The launch of this new brand positioning campaign for pork included the
first national television advertising in several years. Early research results show the new
campaign is having a positive impact on per capita spending for pork by consumers.
• The U.S. Food Safety and Inspection service, using research funded through the Pork
Checkoff, lowered the recommended cooking temperature of pork muscle cuts from 160
degrees to 145 degrees followed by a three-minute rest. This announcement is expected
to have a long-term, positive impact on pork production.
• Sustainability is a buzz word that continues to be part of everyday conversations. The
pork industry embraced the term and completed a major research project that quantified
the pork industry’s carbon footprint. From that research, which showed that the pork
production is a very minor contributor to the country’s carbon footprint, the Checkoff
created the Carbon Footprint Calculator, an easy-to-use computer tool.
• While we as an industry still have a lot of work to do in Pork Quality Assurance ® Plus,
certifications reached an all-time high. More than 53,000 producers are now certified and
sites representing 80 percent of all pigs have been assessed by a trained advisor. This is a
good start but we must continue to keep learning and improving.
• Exports continue to be another bright spot for the pork industry. Exports of U.S. Pork will
set a record of $6 billion in export value.
• As the pork industry continues to find ways to improve the image of the industry, it
provided personal and financial leadership that resulted in the formation of the U.S.
Farmers and Ranchers Alliance, a coordinated effort by more than 60 agricultural
organizations to build trust with key audiences and key consumers.
• And we can’t overlook the continuing research efforts that under gird and direct the
planning and programs that the National Pork Board implements.
The points above are only a few of the highlights. I encourage you to review the remainder of
this report. If you have questions, your board members would be happy to respond. You can
find their contact information on pork.org, or contact the Pork Checkoff Service Center at
(800) 456-7675.
One final thought as I reflect on 2011 and the celebration of the 25th anniversary of the
Pork Checkoff. There will always be new demands and challenges, but we are blessed with
dedicated producers and a forward-thinking organization.
Thank you,
Everett Forkner
President of the National Pork Board
Richards, Missouri
2

2011 National Pork Board of Directors
Randy Brown
Nevada, Ohio
Lisa Colby
Newburyport, Mass.
Brad Greenway
Mitchell, S.D.
Roy Henry
Longford, Kan.
Wathina Luthi
Gage, Okla.
Julie Maschhoff
Carlyle, Ill.
Jan Miller
Belden, Neb.
Dale Norton
Bronson, Mich.
Derrick Sleezer
Cherokee, Iowa
Steve Wuergler
Drain, Ore.
Henry Moore
Clinton, N.C.
Glen Walters
Forsyth, Ga.
Everett Forkner
President
Richards, Mo.
Conley Nelson
Vice President
Algona, Iowa
Karen Richter
Treasurer
Montgomery, Minn.
Vision
Leading a world-class food industry.
Responsible. Sustainable. Professional. Profitable.
Mission Statement
The National Pork Board harnesses the resources of all producers to
capture opportunity, address challenges and satisfy customers.
3

Critical
Issue
1
Operating Freedom
The National Pork Board will protect the rights and ability of U.S. farmers
to produce pork in a socially responsible and cost-competitive manner.
Pork Quality Assurance ® Plus
(PQA Plus ® ) certification
reached an all-time high. More
than 53,000 producers are now
certified. Additionally, sites representing
80 percent of all pigs
have been assessed by a trained
advisor. Also, the first round of
independent third-party verifications
resulted in visits to approximately
100 sites selected at
random to help identify ways to
improve the PQA Plus program.
80% of the U.S. pig inventory has
achieved PQA Plus site status
National Pork Board
P.O. Box 9114
s Moines, IA 50306 USA
HONE: (515) 223-2600
FAX: (515) 223-2646
EB: http://www.pork.org
Humane euthanasia is an
important aspect of pork
production and is sometimes
the best option for the wellbeing
of the pig. An On-Farm
Euthanasia of Swine training
module was completed, translated
to Spanish and distributed
to producers in 2011. To
receive a copy of the module
call (800) 456-7675.
On-Farm Euthanasia
of Swine Recommendations
for the Producer
The Pork Checkoff has made
strides in utilizing social media
to reach consumers who want
to know more about how pork
is raised. In 2011, a total of 18
short videos showcasing producers
on their farms explaining
everything from animal
care to the environment have
been posted to the Checkoff’s
YouTube Channel, www.youtube.com/porkcheckoff,
resulting
in a 57 percent increase in
video views over 2010. Also,
the Checkoff’s twitter handle
@PorkCheckoff saw a 146 percent
increase in followers over
a year ago.
. 04259-01/09
The Pork Checkoff’s YouTube Channel increased
viewership by 57% over 2010.
4

SM
SM
SM
’S 4 PILLARS OF
TAINABILITY
LAND
Live Swine
SM
Carbon Footprint
Calculator
CARBON
WATER
Version 1.0
• Easy-to-use software, PC-based tool
• Usable for sow farms and wean-to-finish production
• Data saved and recalled by users only
• Helps identify on-farm areas for
alternative inputs/improved efficiency
• Helps quantify pork industry’s already small
carbon footprint at individual farm level
pork.org | 800.456.7675
#08206-06/2011
The National Pork Board completed
a major research project
that quantified the pork industry’s
carbon footprint. From that research,
which showed that pork
production is a very minor contributor
to the country’s carbon
footprint, the Checkoff created
the Carbon Footprint Calculator,
an easy-to-use computer tool. The
calculator allows any producer to
calculate the carbon footprint of
his or her operation. It also helps
producers identify ways to lower
energy costs and to reduce their
carbon footprint in the process.
The pork industry, led by the National Pork
Board, provided personal and financial leadership
that resulted in the formation of the
U.S. Farmers and Ranchers Alliance, a coordinated
effort by more than 60 agricultural
organizations to build trust with key audiences
and key consumers. National Pork Board
member Dale Norton, a Michigan producer,
serves as the alliance’s treasurer and on its
executive committee.
The National Pork Board, working with
more than 200 pork producers and others
in the pork industry, completed a vulnerabilities
assessment that it is using to
minimize the industry’s vulnerability in 10
specific areas including the possibility of
foot and mouth disease in this country.
As Farmers and Ranchers,
We’ve Raised Prey Much Everything.
Except Our Voices.
Join us in leading a conversation about the importance of today’s agriculture and our
commitment to answering American’s questions about how we raise our food.
Begin by sharing your voice at www.USFRAonline.org.
5

Critical
Issue
2
Enhance Demand
The National Pork Board will refresh and reposition pork’s image to
increase domestic and international consumer demand.
Pork ® Be inspired, ® the new brand
campaign, debuted in April 2011.
It targets more than 82 million
Americans who already cook, eat and
love pork and is showing many signs
of early success. Although there was
less meat available domestically,
according to retail scanner data, total
pork sales increased 2.2 percent in
2011. Despite record retail prices,
consumers are buying more pork.
The average daily unique visits per month
for PorkBeInspired.com were at over 100,000
In 2011 the Checkoff saw tremendous
growth within its consumer social media
channels and on PorkBeInspired.com.
Pork ® Be inspired ® on Facebook has grown
from 1,675 in 2010 to over 45,000 fans.
The year ended with over 3,900 followers
on the @AllAboutPork Twitter handle,
doubling the number of followers from a
year ago. Also the average unique visits
per month for PorkBeInspired.com were at
over 100,000.
In May, the U.S. Food Safety
and Inspection service, using
research funded through
the Pork Checkoff, lowered
the recommended cooking
temperature for pork muscle
cuts from 160 degrees to 145
degrees followed by a threeminute
rest. This announcement
generated unprecedented media
coverage at less than $1 per
1,000 consumers reached.
Pork also had a great year in foodservice. McDonald’s McRib ®
sandwich was promoted nationally for the second time and
Quiznos, Subway and other restaurants reported great success
with pulled pork. According to Technomic, a foodservice
research firm, pork menu items increased 7 percent over the
past year.
Pork menu items
increased 7%
over 2010
6

October is National Pork Month, the perfect time to
gather the around the table with inspired pork dishes to
warm the autumn chill. To celebrate, we'll be offering
four weeks of mouthwatering deals on our favorite cuts of
pork, from boneless chops to the Costco-exclusive sirloin
tip roast. These cuts pair with a vast range of flavors and
make picture-perfect centerpieces for delectable family
dinners all season long. Click Here for more information
½ cup cilantro, minced for garnish (optional)
Untitled Document
about the featured pork cuts, and to discover fresh
ideas, recipes and tips.
Boneless chops or roasts are ready in a flash with these featured recipes. With the vibrant flavor of
grilled Pina Colada Pork Chops, you can soak up the Caribbean sun – or pretend to. Ready in less than
30 minutes, this tropical recipe is the ideal mood-booster for busy weeknights. If you're craving a more
traditional family meal, Balsamic Rosemary Pork Loin has all the nostalgic charm of grandma's cooking,
but with a twist of sweet, tangy vinegar and fragrant herbs.
Pina Colada Pork Chops
Prep Time: 10 minutes
Cook Time: 15 minutes
Serves 4
Ingredients
4 pork chops, boneless, 1-1½-pounds
3 limes
½ cup coconut milk
salt
cayenne pepper, to taste
4 scallions, minced for garnish
Directions:
Marinate the pork in juice of one lime while you prepare a medium-hot fire (five to eight minutes). Grill
chops over indirect heat, about six to eight minutes per side until internal temperature on a thermometer
reads 145 degrees F. followed by a three-minute rest time.
Warm coconut milk over low heat; season with salt and a pinch of cayenne. Add juice of second lime to
October was a record-breaking month for pork
and the nation’s third-ranked retailer, Costco. The
Checkoff-funded multi-faceted promotion grew
Costco’s pork sales by 25 percent in October.
sauce. Transfer chops to platter when done. Spoon sauce over chops. Garnish with scallions (and
cilantro) and sprinkle with juice from third lime. Serve with rice and remaining sauce.
Balsamic Rosemary Pork Loin
with Roasted Potatoes
Prep Time: 15 minutes
file:///Volumes/...In%20Progress/US/WEB/12WEB.0121_PorkBoardEmailsLP/code/12WEB0121_PorkBoard-LP.html[9/30/11 11:58:18 AM]
The Pork Checkoff was a key participant in the
development of standard operating guidelines
to prevent, respond and recover from a foreign
animal disease (FAD) event and to support
the continuity of operations and recovery. An
economic model was developed to predict the
economic losses across agricultural commodities
due to a Foot and Mouth Disease outbreak and
a Classical Swine Fever outbreak. Information
from this model is being used to modify existing
response strategies and plans for the pork
industry. In addition, work began on the secure
pork-supply plan, which will address and promote
interstate commerce and business continuity for
pork producers in an FAD event.
Exports of U.S. Pork will set a
record near $6 billion in export
value. As of November, the
U.S. already has exported 4.5
billion pounds. Export value
averaged $55.21 per head,
with more than 27 percent of
pork and pork variety meat
production exported.
7

Critical
Issue
3
Competitive Global Advantage
The National Pork Board will pursue strategies to enable U.S. pork
producers to remain highly competitive, long-term, on a global basis.
The Checkoff’s Science and Technology Department
support international trade, with input from the U.S.
Meat Export Federation and the American Pork Export
Trading Company, to confirm or disprove international
standards and to open up and reinforce existing export
markets. In 2011, a research project focused on antibiotic
residue testing and the relationship to practical treatment
and withdrawal times for penicillin in sows. The research
results will be used to identify guidelines for usage and
delivery, appropriate withdrawal times and incidence of
false positives.
As the pork industry continues to have challenges with
emerging zoonotic and antibiotic resistant diseases
such as influenza and MRSA, the Checkoff has
worked to identify research priorities from technical
working groups and to manage issues and claims from
those who oppose livestock agriculture. In 2011, the
Checkoff contracted with an occupational health and
safety subject-matter expert to manage and assist with
occupational health and safety-related projects and
issues. Additionally a MRSA subject matter expert has
been retained to write a white paper on the current
status of MRSA in the pork industry.
Pork safety issues throughout the pork chain
were identified in 2011 based on the Pork Safety,
Quality and Human Nutrition Committee’s
priorities to provide science-based industry
solutions. Committee research priorities included
epidemiology of Salmonella throughout the pork
chain, potential emerging food safety pathogens,
development of diagnostic tests and other food
safety issues.
8

Revenue
& Expenditures
During 2011, pork producers invested $0.40 for
each $100 value in hogs sold from January through
December. The National Pork Board ended 2011
with gross revenues of $83.6 million, total spending
of $80.7 million and a surplus of $2.9 million.
The National Pork Board allocates Pork Checkoff
funds according to producer priorities determined
through various methods. In 2011, 65 percent of the
Checkoff funds were allocated for national promotion
programs, 29 percent for national research and education
programs and 6 percent for national consumer
information programs.
The Pork Act mandates that a percentage of Checkoff
funds collected annually be returned to state pork
producer associations for use in their own promotion,
research and consumer information programs. The
Pork Act Delegate Body determines the percentage of
Pork Checkoff funds returned to each state. In 2011,
state Pork Checkoff funding collectively represented
about 20 percent of all market deductions.
2012 Program Dollars
Balance Sheet
Audited
2010
(000)
Unaudited
2011
(000)
ASSETS
Cash & Short-Term Investments $42,413 $47,516
Accounts Receivable/Other Assets 490 449
CURRENT ASSETS 42,903 47,965
Non-Current Assets 35,754 35,440
TOTAL ASSETS $78,657 $83,405
Liabilities
Accounts Payable $7,267 $9,307
Research Grants Payable 5,055 5,961
Long-Term-PTOWM 27,761 26,634
TOTAL LIABILITIES 40,083 41,902
Reserve Balance
Designated 7,832 7,777
Undesignated 30,742 33,726
TOTAL FUND BALANCE 38,574 41,503
TOTAL LIABILITIES AND FUND BALANCE $78,657 $83,405
Statement of Revenues and Expenses
Revenue
Market Deductions $68,455 $81,376
Other: Program Income, Interest, etc. 3,007 2,290
TOTAL REVENUE 71,462 83,666
Expenses
Domestic Marketing 22,826 39,233
Science and Technology 5,880 8,378
Communications 1,343 1,894
Shareholder Outreach 3,992 8,300
Policy and Management 6,360 5,436
State Funding/PASLWOCO 13,168 15,660
Interest Expense 1,909 1,836
TOTAL EXPENSES 55,478 80,737
TOTAL (DEFICIT) SURPLUS FOR PERIOD $15,984 $2,929
2012 National Pork Checkoff Budget Expense Summary*
● Domestic Marketing
● Foreign Market Development
● Science and Technology
● Communications
● Producer Services
Advertising
Domestic Marketing Programming
Foreign Market Development
Retail Marketing
Foodservice
Pork Information Bureau
Marketing Resource Center
Environment
Swine Health
Animal Science
Animal Welfare
Pork Safety
Communications
Education Services
Producer & State Relations
Support Services
Administration
Management Oversight
The Other White Meat ®
*In Millions
SCI & TECH DOMESTIC MARKETING
1.0
0.9
0.4
2.3
0.8
1.9
2.5
2.2
3.2
1.9
1.6
3.0
5.2
4.1
3.9
5.1
15.1
6.8
7.3
TOTAL: $69.2 Million
● The Other White Meat ® 9

Golden Circle Pork
Woodward, Iowa
Rod and Missy Bice
2011 Environmental Stewards
John M. Langdon Farms
Benson, North Carolina
John and Eileen Langdon

Cleveland Pork
Elysburg, Pennsylvania
Joel and Sarah Knoebel
The Pork Industry Environmental Stewards program promotes the pork industry’s ethical commitment to
safeguarding natural resources. In 2011, four outstanding producers were recognized for their achievements
in responsible farming and environmental consciousness.
Wuebker Farms
Versailles, Ohio
Jeff and Alan Wuebker

National Pork Board 1776 NW 114th Street • Des Moines, Iowa 50325
Phone: 515.223.2600 • Fax: 515.223.2646
pork.org the Pork Checkoff Service Center @ 800.456.7675
©2011 National Pork Board, Des Moines, IA USA.
This message funded by America’s Pork Checkoff Program.