Industry Demand & Profit Challenge
Last week’s commentary seemed to resonate more than any commentary we have written in 20 years. Our premise the National Pork Board is spending money from producers Checkoff to focus on a sustainability bureaucracy of environmentability issues, animal welfare and public health. This while not seeming to focus on the industry crisis of negative margins, lower pork demand and continual market share loss. Seems the bureaucrats at National Pork Board are more concerned about public health then the health of the producers who pay the Checkoff ($70 million per year). Question, are you seeing value from the 10s of millions paid in Checkoff year after year? A billion dollars in Checkoff in not many years. To be clear we favor Checkoff. We don’t value the direction of its use.
We have lost market share and Pork per capita consumption has flatlined for decades. In the meantime, we see no efforts to address the main issue. We continue to produce pork that doesn’t deliver taste. Are there any other reason last Friday US pork cut-outs at 80.84 lb. and Beef at $3.06 lb. Almost four times Pork. If we had half of the Beef cut-out = $1.53? Life would be good. Instead, we languish as an industry with losses and a failing leadership being funded by the millions and Checkoff dollars.
What we say is probably not appreciated by the bureaucrats that run our National Pork Associations. We seem as an industry to tolerate mediocrity. How do we measure success? To us profits and market share should be the main measurement for assessing the effectiveness of our Pork Organisations. How are we doing? If they can’t deliver maybe time for some real change. As producers we need to demand results in return from Checkoff money not more slogans and bureaucracy. Our livelihood depends on upending the status quo. We need a revolution.
Below are some reader comments from last week’s commentary:
Spot on with your commentary! Where is the product development? Where is product marketing? Where is our social influencer presence? It absolutely drives me crazy that our industry doesn’t seem to want to do anything different when incurring major losses!! Why are the losses accepted so easily?
I have cussed your commentary in the past so I also need to praise your comments. Not only did I like what you said I have been on the phone with producers also telling me ” jim nailed it” I have never had this many people call me about your comments as I did today. And it just came out. Good job jim!
I appreciate your commentary today, so frustrating to see money being managed is such a misguided manner.
Well Said Jim
Great commentary I would like to add to the topic of demand we hear now all the time from the Pork Producers associations in collaboration with the veterinarian association and I suspect a few politicians about how important this VFD rule is to help cut back on antibiotic use I was at a meeting the other day and a veterinarian said antibiotic use has been cut in half but now, of course they’re going to make it even stricter so my question to them is if we have cut way back on antibiotic use why hasn’t demand picked up if they think the consumer is so concerned about it?
I wonder with those facts, do any of the “USA or CDN meat players” come and discus this this situation with you??? What is their solution???
Great article and 100% accurate. Glad Genesus has continued the fight about meat quality. We just got too tired to keep up the fight in an industry that doesn’t see the need for quality pork products. National Pork Producers doesn’t care or doesn’t have a clue to what is happening in our industry with independent producers.
You are spot on, but someone needs to take the lead, and that could be you. Why, because people know and respect you!!!
One of your best
National Pork Board like Nero “fiddled while Rome burned.”
I’m in your corner with the National Pork Board and the Illinois Pork Producers. Check off $$ are continually wasted.
Love your commentaries Jim … thanks always for sharing! GO PORK!!
God bless what you do for the Pork industry!
This post was written by Genesus