Why I Believe

A National Pork Board Update

Chris Novak Chief Executive Officer

Overview

• Driving Demand Against a Strong Headwind

• A New Consumer Movement

• Defining A New Standard of Professionalism

1

Food Price Inflation: A Strong Headwind?

2

Monthly U.S. Pork Retail Values

3

2.70

2.80

2.90

3.00

3.10

3.20

3.30

3.40

January

Febru

ary

Marc

hA

pril

May

June

July

August

Septe

mber

Octo

ber

Novem

ber

Decem

ber

2007

2008

2009

2010

2011

Source: USDA/ERS; dollars per pound with thanks to Erin Borror, USMEF

願你 生活在 有趣的時代 Yuàn nǐ shēnghuó zài yǒuqù de shídài

4

Business Goals for 2014

6 6 6

+10% Real PCE

+10% Points

Juicy, Tender,

Flavorful

+10% Fresh Pork

Eatings

Behavior Attitudes

New Pork Target

8

Enjoy all fresh cuts cuts Enjoy

all fresh

cuts

Positive about

pork, cooking, life

Confident preparing

>2 cuts

Mostly Medium/Heavy Fresh Pork Eaters

28% of U.S.

Households

68% of all Fresh Pork

Consumed At Home

50% of all

Fresh Pork

Consumed Away

From Home

Pork’s Personality

9

Unapologetic, assertive,

optimistic, energetic,

approachable,

outgoing, a leader

Launch National Television

• 2,040 spots over the five-week period • Early-Morning News Shows: ABC Good Morning

America, CBS Early Show, NBC Today Show • Cable networks: A&E, ABC Family, Bravo, CMT, Cooking

Channel, Food Network, GAC, GSN, Hallmark, HGTV, History, Lifetime, TLC, TNT, Travel, TruTV, TV Land, USA

Media Mix: Early a.m. news, Cable TRP’s: 421 Reach: 59% Frequency: 6.4 Impressions: 452 million

One-Page People Magazine

Three-Page Ads

Total Insertions: 9 Total Print

Impressions: 17.7 million

Launch Print Plan

Launch Digital Plan Impressions: 26 million Ad Clicks: 34,074 Overall CTR: 0.13% Site Recipe Print Total: 991 Rich Media Recipe Print Total: 87 Rich Media Recipe Share Total: 447

But, the Good News Doesn’t Stop There!

14

USDA Temperature Announcement Results

As of May 30, 2011

National Pork Board Overview

Communication Plan Included:

• Consumer Public Relations

• Advertising

• Retail Marketing

• Web Site and Collateral

• State Association Outreach

• Agriculture Media

• Hispanic Media

1,326 traditional and

6,572 social media placements,

103 million impressions

Consumer Public Relations as of June 3 at 5:00 p.m.

@TylerFlorence RT About time - Pink #Pork Fine: #USDA Lowers Safe Cooking #Temperature 287,769 Impressions

“Finally, the USDA has changed their recommendations for cooked pork. “

@Rick_Bayless: RT @tom_colicchio: USDA confirms what chefs have been saying for years Pink Pork is Safe. Temperature 145 down from 160 144,528 Impressions; Retweeted 61 times

“The U.S. Department of Agriculture has finally recognized what a lot of cooks and food scientists have been arguing for some time.”

Display Ads

Advertising Results as of May 26 a.m.

• Display

• Industry average click through rate for display is 0.08 to 0.09%

• All Recipes – click through rate (CTR) was 0.20% (“takeover”)

• Yahoo and Scripps Network – CTR was 0.13% (takeover)

• Interclick and Burst – CTR was 0.07% (no takeovers)

Advertising Results as of May 26 a.m.

• Paid Search on Google

• Industry average for paid search is 1 to 2%

• Pork temperature search terms – CTR was 9.79%!

• Industry average for content targeting is 0.08 to 0.09%

• Our content targeting – CTR was 0.09%

And Beyond the Home Front . . .

22

World Pork Consumption

80,000

85,000

90,000

95,000

100,000

105,000

110,000

115,000

120,000

125,000

130,000

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Source: OECD/FAO Agricultural Outlook June 2010, beef & pork in carcass wt equivalent, poultry in rtc

Th

ou

sa

nd

Me

tric

To

ns

2010-2019: +18.4 MMT and

excluding China +6.7 MMT

0

500

1,000

1,500

2,000

2,500

2003 2005 2007 2009 2011 2013 2015

PVM

Pork

U.S. Pork Exports Historic & Forecast Volume

Source: USDA and USMEF

PVM= Pork Variety Meats; thousand metric tons

2011-2015: +4% annually

2008: 2.05 MMT +57%

2009: 1.866 MMT -9%

2010: 1.918 MMT +3%

2011: ~2.04 MMT +6-10%

and value $5.3 billion—

definitely a record!

A New Consumer Movement

The US Farmers & Ranchers Alliance

Basic Framework

• Campaign to address consumer attitudes toward

agriculture

• Coalition of willing partners from across the

food chain

• Commitment to specific, measureable, goals &

objectives centered around changing consumer

perceptions

USFRA Vision Statement

Food production partners will work together to enhance US consumer trust in today’s modern food production to ensure the abundance of affordable, safe food.

Strategic Objectives

• Increase share of voice in key media (national &

state; traditional & social).

• Increase the number of policy makers and

government officials (at all levels) who accept

the value of today’s agricultural production.

• Engage key customer decision makers in the

dialogue about the value of today’s food

production methods.

Strategic Objectives

• Work with leading national influencer

organizations (medical, cultural, dietary,

environmental, etc.) to create partnerships in

support of today’s agriculture.

• Increase the role of farmers and ranchers as the

voice of animal and crop agriculture on local,

state and national food issues.

U.S. Farmers and Ranchers Alliance

Affiliates (32) as of April 1, 2011 (*Board Participants)

• American Egg Board

• American Farm Bureau Federation*

• American National CattleWomen

• American Sheep Industry

• American Soybean Association

• American Sugar Alliance

• AAPE

• CBB/Beef Checkoff*

• Federation of State Beef Councils*

• Illinois Farm Bureau

• Illinois Soybean Association*

• Iowa Soybean Association*

• Minnesota Soybean R & P Council*

• National Association of Wheat Growers

• National Cattlemen’s Beef Association*

• National Corn Growers Association*

• National Cotton Council

• National Milk Producers Federation*

• Nebraska Soybean Board*

• National Pork Board*

• National Pork Producers Council*

• Pennsylvania Farm Bureau

• Southern Peanut Farmers Federation

• United Egg Producers*

• United Fresh Produce Association

• USA Rice Federation

• United Sorghum Checkoff Board

• United Soybean Board*

• U.S. Poultry & Egg Association*

• U.S. Grains Council

• U.S. Soybean Federation

• Western Growers

Defining Professionalism

Components of Professionalism

34

Knowledge Standards Principals

Professional Status:

Formally certified by a professional body by virtue of having passed assessments to verify the individual possesses a level of knowledge, skills or abilities necessary for competent performance of a specific role, measured against an established set of standards.

35

Situation • Need for education

• Limited options for employees to learn the “why” about “what” is involved in pork production

• Limited options for students to consider swine production as a career option

• “Farm kid pool” has dried up

• Industry Structure continues to change – Number of people

– Distribution of people

• Image issues- Nationally recognized standards of production knowledge and successful work experience in swine production do not exist

36

Objectives

• Overcome distance and time challenges through distance education

• Develop and deliver education programs meeting swine industry needs

• Establish standards of production knowledge and successful work experience in swine production

37

Actions

• Create a Professional in Swine Management Training & Certification Program

• With USPCE—develop & support Swine Science On-Line—a multi-state college curriculum for the swine industry

• Disseminate HR Tool Kit to Owners & Managers bringing new employees on-board

• Create an action plan to begin addressing swine worker safety in a more concerted manner

38

So Why Do I Believe?

Why I Believe:

• Solid Foundation for Growing Domestic Markets

– New Target, New Message, New Investment

– New Temperature

• Leadership & Strength in International Demand

• Commitment to Meeting Consumer Expectations

• Continuing Improvements in Productivity

• Pragmatic Optimists

40

This message funded by America’s Pork Checkoff Program.

Questions?

Chris Novak Chief Executive Officer National Pork Board CNovak@Pork.org Ph: 515-223-2627