1. National Pork Board Update John Johnson, Chief Operating Officer National Pork Board

2. Our Agenda Meet our new CEO State of the industry Update on our goals to: – Build Consumer Trust – Drive Sustainable Production – Grow Consumer Demand

3. New CEO – Bill Even 3 DuPont Pioneer: Global Industry Relations Lead Commercial Unit Lead for South Dakota, North Dakota and northwest Minnesota Former South Dakota Secretary of Ag B.S. in Ag Business from SDSU Law degree from Drake University Manages fifth-generation diversified crop and livestock operation, Humboldt, SD Now lives in Adel, Iowa

4. Pork Production Per Year 4 Volume is up! 2015 was largest pork production year on record and 2016 looks even stronger!

5. Where is the Market Headed in 2016? U.S. breeding herd continues to rebound New Q1 2016 production was up 68 million pounds, or 1.1%, vs. 2015 Q1 2016 prices are down 6.2% from last year at estimated $64.67/cwt live 2015 pork production was up 8% Issues for 2016: U.S. consumer-level demand is down 3.2% YTD, but April was up 3% Pork exports improved by 0.26% from 2015 China has purchased more U.S. pork, but how big will future purchases be?

8. Lead Through Influence and Act as a Catalyst Our strategic plan fits our vibrant, dynamic industry Build Consumer Trust Drive Sustainable Production Grow Consumer Demand

9. Goal 1 – Build Consumer Trust Working collaboratively with food chain partners, the National Pork Board will enhance consumer trust in modern pork production by promoting producer adoption of on-farm management practices that reflect our ethical principles and by sharing our commitment to continuous improvement with consumers and key stakeholders.

10. Using antibiotics responsibly Preventing disease, rather than treating disease Protecting the efficacy of antibiotics Reducing the need to use medically important antibiotics National Pork Board Antibiotic Stewardship Policy

11. Our Focus: Research, Education, Communication Defined 5 strategic research priorities Pilot project and blue-ribbon taskforce Increased funding in 2016 PQA Plus revision focused on Good Production Practices New producer record-keeping tools Producer publications – newsletter, magazine, pork.org Be present at industry and influencer events Proactive media outreach – reporters and bylines On-farm continuous improvement shared through stories

12. Historical Industry Antibiotic Research Since 2000, more than $6 million in Checkoff funds have been dedicated to antibiotic-related research It is the No. 1 priority in 2016 $750,000 in Checkoff funds have been dedicated to antibiotic-related research in 2016 alone

13. 2016 Research Priorities Address Societal Concern 1.Analysis and assessment of preventive uses of antibiotics at therapeutic doses in pork production to optimize swine health and public health. 2.Analysis and assessment of specific animal population antibiotic treatment vs. individual animal treatment in pork production to optimize swine health and public health. 3.Evaluation of on-farm challenges to antibiotic record keeping and identification of strategies to improve antibiotic record keeping practice for continuous improvement of responsible antibiotic use on the farm. 4.Characterization and assessment of the environmental fate of antibiotics, antibiotic metabolites, antibiotic resistant bacteria and antibiotic resistant genes on swine farms. 5.Exploration of strategies to protect herd health and minimize the need for antibiotics. 13

14. Message delivery throughout 2016 Continue with regular Checkoff delivery methods – Checkoff Report (magazine, newsletter), pork.org Additional antibiotic focus with new Pork Industry Guide to Responsible Antibiotic Use Visit pork.org/antibiotics for more information 14

15. Remember “USCARE” Throughout 2016 Six Steps to Take Now Easy to Remember Clear Call to Action

16. Building Trust – Responsible Antibiotic Use Tangible research priorities Producer, consumer (and media) education Food chain and influencer outreach Our No. 1 priority is to shape the dialogue through demonstrating antibiotic stewardship. 16

17. Our Primary Audiences 17 Food-Engaged Opinion Elites About 1 in 5 Americans Pay attention to food issues Politically informed and active Express their opinions Food-Engaged Opinion Elites About 1 in 5 Americans Pay attention to food issues Politically informed and active Express their opinions “Creative Cooks” The marketing audience Live in about 1 in 3 households Enjoy being creative in the kitchen Regularly cook pork “Creative Cooks” The marketing audience Live in about 1 in 3 households Enjoy being creative in the kitchen Regularly cook pork Consumer audiences Food Policy Influencers/ Thought Leaders Policy professionals in legislatures, regulatory agencies, think tanks, etc. Food Policy Influencers/ Thought Leaders Policy professionals in legislatures, regulatory agencies, think tanks, etc. Nutrition Professionals Registered dietitians Communicate to others on diet and nutrition issues Nutrition Professionals Registered dietitians Communicate to others on diet and nutrition issues Professional audiences Food Chain Partners (Packers, Processors, Retail)

18. Listening to the Research Data: Best Messengers How much do you trust each…to provide honest information about the use of antibiotics in pork production? Do not trustA great dealA moderate amount Only a little (% among all consumers)

19. Listening to the Research Data: Key Learnings Vets and government voices are most trusted. Checkoff messages do not eliminate concerns, but they do increase acceptance. There is confusion about the relationship between antibiotics in food production and human health. The motivating concern for influencers is safe food, with some focused on resistance.

20. Blue Ribbon Panel on Antibiotics Panel members convened Feb. 1-2 in Dallas Mike Apley, D.V.M. and Ph.D., food animal production medicine, Kansas State University Bonnie Buntain, D.V.M., veterinary medical and surgical program, University of Arizona Mike Chaddock, D.V.M., associate dean, College of Veterinary Medicine, Michigan State University Chris Cochran, senior manager, food sustainability, Walmart Justin Ransom, senior director, quality systems U.S., McDonald’s Steve Solomon, M.D., public health consultant, past director of the Centers for Disease Control and Prevention’s office of antimicrobial resistance Elizabeth Stewart, marketing/corporate social responsibility, Subway 20

21. D.C. Policy Event with Atlantic Media Thought leader dinner held March 15 in Atlantic’s Watergate office Hosted 26 key influencers and media for engaging discussion Thought leaders represented human health, animal health, pharma, food production/retail, livestock, public health, health advocacy and media Antibiotic resistance and policy forum held March 16 at Newseum Convened 125+ key influencers and media for policy forum on antibiotic resistance and responsible on-farm use of antibiotics Atlantic Media ensured journalistic credibility to the dialogue: Keynote address on the challenges of antibiotic resistance Panel 1 – Antibiotics and the Food Supply: Explored the issue of antibiotic resistance from farm to table Panel 2 – Antibiotics and Health: An examination of the health elements of antibiotic resistance in humans with leading health experts, practitioners and thought leaders

22. Upcoming: National Press Foundation Event Media Familiarization Tour 4-day educational event for 20-40 journalists selected through application process July 24-27 in St. Louis Series of 15 sessions from issue experts, as well as 1-2 local field trips NPB-sponsored panel session on antibiotics stewardship efforts within food production – Rationale: Engage and inform media on responsible use of antibiotics, position NPB as a leader and resource;

23. Building Trust – 5 On-Farm Blogger Tours July – September we will engage influential food bloggers to share our stories. Bloggers increasingly get questions on how food is raised. We give them a rewarding, exclusive experience.

24. Growing Our Enterprise Risk Management Launch of PorkCrisis Text Alerts… …and ready for top industry concerns Antibiotics FADs, Existing/Emerging Disease Animal Welfare Pork Safety Producer Economic Viability

25. Accomplishments: Moving the Needle March 2015: FEOE Consumers (FEOE – Food Engaged Opinion Elites)

26. November 2015: FEOE Consumers (FEOE – Food Engaged Opinion Elites) Accomplishments: Moving the Needle

27. Goal 2 – Drive Sustainable Production The National Pork Board will invest in research and producer education programs that enhance the productivity and sustainability of pork production and deliver benefits to producers, consumers and the community.

28. PEDV Success PEDV data from 995 sow farms, representing the largest systems in the U.S. 2.54 million sows! PEDV data from 995 sow farms, representing the largest systems in the U.S. 2.54 million sows!

29. New Production Capacity Underway Three new plants online in 2017/18 Two remodeled plants online yet this year…? Meets the boom in contract finishing and ongoing operation expansion Seeing strong growth in alternative production We are a $23 billion industry!

30. Common Industry Audit Goal: Develop a workable, credible and affordable on-farm verification system Objectives – Reliable way to assure on-farm animal well-being and food safety. – Eliminate audit duplication, minimize an administrative burden. – Develop consistent standards. – Creates industry accepted process that assures protection of herd health.

31. Scope of Work Swine Disease Matrix project Swine health data – analysis & monitoring for trends Global swine health and issues identification Improve the biosecurity ability of the US swine herd New Swine Health Information Center Executive Director – Dr. Paul Sundberg Board comprised of NPB, NPPC, AASV and at-large representatives

32. Working in concert with food chain partners, the National Pork Board will grow domestic and international consumer demand by focusing on pork’s improved nutrition, quality and sustainability. Goal 3 – Grow Consumer Demand

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34. Trajectory of Domestic Growth 2013 = 5.5% 2014 = 7.5% 2015 = 3.0% 2016 = -3.2% (Year to Date)

36. What Does 1% Gain Mean for Producers? In 2014, pork’s share of meat expenditure was 26.1% 1% share gain for pork expenditures = $2.35 billion increase retail sales OR $23.69 additional domestic retail value to every pig 36

37. 2016 Goal: A Focus on Pork Quality Reduce the percentage of pork chops scoring below “3” Voluntary commitment from the industry Seek consistent eating experience and repeat purchases 1 3 4 2

38. 2015 Exports Struggled, But Finished Strong 2015 was challenging. – West Coast ports slowdown, market access. – Strong U.S. dollar and global competition. 2015 exports snapshot vs. 2014: – Pork / Pork VM Volume = 4.70B lbs. 2% – Pork / Pork VM Value = $5.58B lbs. 16% – Exports for only muscle cuts 3% – 24% of all pork/VM shipped abroad – Export value/head = $48.31 23%

39. Trade Challenges West coast port slowdown = Need to rebuild trust Currency Russian closure Steep competition Tariff and SPS barriers Share of Global Exports

40. An Improving 2016 Pork Exports Outlook USDA projects 2016 pork exports will rise 5.2% EMI’s 2016 production forecast is up 2.2% vs. 2015 2016 changes will not be spread evenly throughout the year Q4 will see ~2.6% higher slaughter; What’s our capacity? Q4 production will be ~4% higher – plenty of pork to sell Need aggressive U.S. and international marketing 40

41. Our Priorities Are In Motion LEAD the conversation on antibiotics. DEFINE new quality standards for pork that return value to pig farmers. EXPAND the domestic consumer base and spending on pork. ELEVATE demand for U.S. pork in international markets. REFINE our ability to monitor and respond to foreign disease threats. CONTINUE to improve animal handling practices. RECRUIT the next generation to our industry.

42. This message funded by America’s Pork Producers 42 Inspiration Starts Here