Swine Education In-Service

NPPC Update

September 30, 2015

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

Issues Update

• Legislative & Regulatory

• Trade Policy

• Protecting Your Livelihood

Legislative & Regulatory • EPA & Army Corp of Engineers – Waters Of The

U.S. Rule (WOTUS)– New rule released the end of May that allowed EPA

and Army Corps of Engineers to clarify their authority under the Clean Water Act over various water.

– WOTUS broadens jurisdiction to include, another other water bodies, upstream and waters and intermittent and ephemeral streams such as the kind farmers use for irrigation and drainage.• Exemption for ditches and drains is unclear

– Broad definitions could include any water feature that infiltrates groundwater or is used by animals, birds and insects

Legislative & Regulatory • EPA & Army Corp of Engineers – Waters Of

The U.S. Rule (WOTUS) cont’d – Broad definitions could include any water feature that

infiltrates groundwater or is used by animals, birds and insects

– Efforts to repeal WOTUS will be difficult– NPPC, 13 other groups filed lawsuit against final

WOTUS rule.• Similar lawsuits have been filed by attorneys

general of 27 states.– NPPC also backing bills in Congress, requiring EPA,

Army Corps of Engineers to withdraw WOTUS rule, rewrite it with input from agriculture.

Legislative & Regulatory • Country of Origin Labeling “COOL” requires meat to be

labeled with the country where animal from which it was born, raised, and harvested.

• WTO rejected the U.S. appeal of its October 2014 ruling that meat labeling discriminates against Canadian, Mexican animals sent to U.S. for feeding, processing.– WTO decision allows Canada and Mexico to places retaliatory

tariffs on U.S. goods going into their countries—potentially $3.1 Billion in retaliatory tariffs on many U.S. products.

• NPPC leading efforts to repeal MCOOL• U.S. House passed repeal 300 to 131• Senate will be difficult• If no repeal or major fix, duties may be in place by early

Fall

Legislative & Regulatory • Mandatory Price Reporting

– Provides producers, packers with transparent, accurate, timely national market information to make knowledge-based decisions about buying and selling hots.

• Mandatory Price Reporting (MPR) reauthorization passed the U.S. House early June– Expands time periods reflected in the morning and

afternoon hog reports– Adds “Negotiated Formula Category”– Ensures MPR continues during Gov’t shutdown.

• U.S. Senate passed its MPR version on September 21, 2015• U.S. House passed the Senate’s MPR on September 28,

2015, sending the bill to the President.

Legislative & Regulatory • Antibiotics• This is First About Responsible Use of Antibiotics…. Zero is

not an option• U.S. Pork industry is committed to:

– Efforts to use antibiotics responsibly– Support research on antibiotic resistance– Comply with FDA guidance, including guidance ending

growth promotion uses of medically-important antibiotics.

• NPPC is committed to working with FDA, USDA to develop appropriate metrics to gauge success of antibiotic stewardship efforts.– The White House has issued the “National Plan For Combating

Antibiotic-Resistant Bacteria”.

Legislative & Regulatory • Antibiotics (continued)• Key Affirmation

– Responsible use of medically important antibiotics protects animal health and well being, ensures food safety and preserves their effectiveness for animals and humans

Trade Update

Pork Exports

Jan-April 2015 Vs 2014Volume down 7% in metric tons

Value down 14% Notable Up…Mexico 8% & Hong Kong 94%

Notable Down…., Japan 11%, China 55%, Canada 3%

(USDA statistics compiled by USMEF for November, 2014)(All totals include muscle cuts and variety meat)

Export value of $50.35 per head year-to-date

Pork Exports

• West Coast Port Slowdown still having some impact

• Strength of the Dollar– Other Exporting countries gaining

market access due to US Dollar.

Trade Promotion Authority (TPA)

• Passed by the Senate and the House

• Signed by President

• This legislation allows trade agreements to be acted upon by the President and Congress.

Importance of Trade Agreements

Trans-Pacific Partnership (TPP)

Trans-Pacific Partnership (TPP)• TPP negotiations are drawing to a conclusion.

– NPPC has not endorsed agreement, waiting to see final package

• Biggest commercial opportunity ever for U.S. pork.• NPPC has led agriculture’s efforts on TPP.• NPPC wants all tariff, non-tariff barriers to trade in pork

eliminated in all TPP nations, including elimination of Gate Price on pork in Japan.

• If TPP is approved, U.S. pork exports will increase significantly with potential to create more than 10,000 export-related U.S. ag jobs.

Trans Atlantic Trade and Investment Partnership (TTIP)

• Proposed trade agreement between the U.S. and the European Union (EU)

• Many questions remain about agricultural products, as EU has not been willing to eliminate tariffs on beef, poultry or pork

• Slow progress and will require long-term patience.• Removal of tariff and non-tariff barriers would

significantly increase U.S. pork exports to the EU and potentially create more than 17,000 U.S. jobs (according to Iowa State University economist Dermot Hayes).

Protecting Your Livelihood

We Care: A PromiseA promise that pork producers and production

employees will carry out responsible practices in all areas of production.

“We Care shows America’s pork producers’ commitment to making this industry better for all concerned – farmers, food industry partners and

consumers worldwide.”

We Care In Action• Promote ethical principles and

responsible production practices• Advance research and science for

industry improvement• Deliver certification programs and

training resources• Offer continuing education opportunities• Collaborate with vast allied industry• Share industry’s story of responsibility

with food supply chain

Principles + Practices + Proof = Public Trust

The We Care Model

Principles + Practices + Proof = Public Trust

The We Care Model

• Shared Values• Ethical Principals

Principles + Practices + Proof = Public Trust

The We Care Model

• Shared Values• Ethical Principals

• PQA Plus• TQA• Production

Practices• SOP’s• Zero

Tolerance• Whistle Blower• See It Stop It

Principles + Practices + Proof = Public Trust

The We Care Model

• Shared Values• Ethical Principals

• PQA Plus• TQA• Production

Practices• SOP’s• Zero

Tolerance• Whistle Blower• See It Stop It

• Certification• Assessment• Verification• Audit• Corrective Actions• Continuous Improvement• Farm Visits• Animal Care Review Panel

Taking Control/Response• Establish a Culture – Minimize Risk

– Ethical Principals– Barn Culture– Training– Expectations and Consequences– Documentation

• Implement Best Management Practices– PQA Plus

• Demonstrate Transparency– Assessment, Verification– Farm Visits– Whistle Blower Policy

What were doing• Heightened levels of preparedness by producers for

handing potential crisis situations, along with stronger initial responses to help mitigate the impact of crisis on the farm/organization;

• Stronger focus by producers on animal care, hiring and training of employees, and leadership in managing their farms;

• Transparent demonstration to the public and to stakeholders of the industry’s commitment to continuous improvement;

• Honest and open discussion with stakeholders about industry practices;

• Broad based support throughout the pork industry for continued stakeholder engagement activities.

A Comprehensive Approach

ProducerAccounta

bility

ProtectingFreedom

ToOperate

Marketplace

Engagement

ExposingThe

ActivistAgenda

• We Care• Principles• Practices

• Proof

• Chain Outreach

• Legislation• Regulation

• Communication

• Humane Watch

• Protect the Harvest

• NPPC

PorkCares.com

NPPC Successes in 2015• Trade Promotion Authority (TPA) passes Congress.• West Coast Ports Slowdown ended

– NPPC urged feds to get involved in labor dispute.– Slowdown cost the U.S. meat sector more than $600

million• Chile, Peru agree to eliminate trichinae testing

requirements on chilled U.S. pork.• DOT issued two-year waiver on Hours of Service Rule for

truckers hauling livestock.• MPR passed by House and Senate; now waiting for the

President to sign the legislation.• COOL repealed by House, waiting on Senate to act

Thank you…..Questions?