Pork 2013

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Celebrating Pork Month Pork goes global Record exports recorded in 2012 as pork sees an increase in popularity on U.S. soils as well by Greg Forbes In the face of two historic, consecutive summer droughts and despite a late winter this year, the pork industry has managed to thrive. Dr. Matt Swantek, swine field specialist with Iowa State University Extension and Outreach, explained that the biggest impact of inclement weather, specifically the droughts, was the reduction in home-grown grains. But Swantek added, “Others (producers) may not have experienced any reductions in corn and soybeans. It was a more regional situation.” Southeast Iowa experienced nearly no decline in yields but areas in the Crawford County area, according to Swantek, may have shut down operation late in 2012 to avoid purchasing high priced corn. Despite the possible decrease in grain availability, a report issued by the Pork Checkoff stated that pork exports set records in value and volume in 2012. Last year, United States producers exported more than 2.2 million metric tons of pork for a total of $6.3 billion dollars. Back home, the increase in popularity of bacon and other pork products in every day consumption has allowed the demand in the market to rise. Swantek said normally, during the summer months, consumers purchase more pork for the grilling season but demand tapers off as fall approaches. However, the strength of the current market has not reflected the arrival of fall. “With the current markets, there tends to be less of a decline in the nonsummer months than we have historically seen when one compares futures prices,” Swantek said. As of now, however, inventory and future estimates are not available as they are typically reported by the USDA. Swantek said that with the local and international demand of pork, he expects the sales and inventory to continue to increase. “I believe pork is the number one meat consumed in the world now,” he said. “I see nothing but positives for pork production and the pork usage by consumers.” Ensuring the pork industry maintains its upward trajectory requires not only demand by consumers but care by the producers. “Safety is the number one concern for both caretakers and animals each and

Pork exports set records in value and volume in 2012. Last year, United States producers exported more than 2.2 million metric tons of pork for a total of $6.3 billion dollars. File Photo

every day,” Swantek said. At the 2013 World Pork Expo in Des Moines, the National Pork Board unveiled updated safety guidelines in its Pork Quality Assurance Plus (PQA Plus) program. According to a release issued by the National Pork Board in regards to the PQA Plus changes, adjustments now require participating farmers to devise a corrective action plan should they be found to be in violation of a regulation. Producers must also take a test to ensure they are following the 10 Good Production Practices. Confinement fires earlier this year and last winter created some concerns throughout Iowa and posed a large

safety issue to pork producers. Swantek said he has not heard of many recent confinement fires and believed the silence in reports could be credited to increased efforts to maximize ventilation and also to install start up protocols and shut down procedures when confinements are vacant. “The basics (of a shutdown) being shutdown of electricity and heating fuels with proper ventilation to try and eliminate any pit gas build up and potential igniters of those gases,” he said. “Again, safety first.” Producers have also jump-started additional efforts to combat the Porcine Epidemic Diarrhea (PED) virus. PED is transferred through feces, where it can

survive for a lengthy period of time, states a release issued by the National Pork Producers Council. In order to combat the relatively new disease, discovered in May, pork producers met at a regional meeting in August to discuss bio-security as well as ways to prevent the spread of the disease. Guidelines include monitoring the transfer of manure as well as cleaning all equipment and clothing that come into contact with feces. Documents containing recommendations for containment as well as manure application practices can be found at www.pork. org/Research/2641/ResearchLatestNews.aspx.

A SPECIAL SECTION OF THE DENISON BULLETIN AND DENISON REVIEW | Friday, October 11, 2013

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Pork

Consider needs when buying pork products Before purchasing pork, take a moment to consider your needs. Ask yourself a couple of quick questions: How many people are you planning to feed? The average serving size for pork is three ounces of cooked meat. Start with four ounces of boneless, raw pork to yield three ounces of cooked pork. A three-ounce serving is about the size of a deck of cards. If time is limited for a weeknight meal, select smaller quick-cooking cuts such as pork chops, cutlets, cubes or strips. If you’re entertaining for a holiday meal and have several other dishes to prepare, consider choosing larger, slow-cooking cuts such as roasts that cook several hours and require little attention. Modern-day production has reduced pork’s fat content. In fact, pork is a major contender in the lean meat category and many cuts of pork are as lean or leaner than chicken. For example, pork tenderloin is just as lean as a skinless chicken breast with 2.98 grams of fat per three-ounce serving and meets the government guidelines for “extra lean.� For the leanest cuts of pork, look for the words “loin� on the label. Reading the meat label Type of meat: listed first on every label, this indicates whether the cut is pork, beef, lamb or veal. Primal/wholesale cut: this specifies which section of the animal the meat comes from. It is a good indicator of the relative tenderness of the cut and can help the shopper decide which method of cookery to use when preparing the cut. This part of the label may read shoulder, loin, leg, etc. Retail cut: this gives the shopper the specific name of the smaller cut taken from the primal cut. This part of the label may read blade roast, rib chop, sirloin roast, etc. Cost: to get the most for your money, calculate the cost per serving. Some boneless cuts may seem more expensive, but actually are a better buy because you are not paying for the bone. Cost per serving = Cost per pound /number of servings per pound. Courtesy of the National Pork Board. For more information about pork, visit PorkBeInspired.com.

Pork popularity grows as health benefits become apparent by Greg Forbes Although grill season is near the end doesn’t mean pork can’t still be enjoyed. When the leaves change colors and temperatures cool, pork consumers tend to trade charcoal and propane for indoor appliances. “As the season becomes cooler, cooking outside, like grilling with chops and ribs, becomes less prominent and the oven becomes a more popular cooking method, with roasts for example,� said Adria SheilBrown, dietitian for the National Pork Board. Sheil-Brown said regardless of a consumer’s preferred cooking method, cuts such as pork chops, roasts and tenderloins should be prepared with internal temperatures between 145 degrees (medium rare) and 160 degrees (medium). Ground pork should be cooked to 160 degrees. The presence of pork in a regular diet provides a source of high protein as well as several essential vitamins and minerals including zinc, vitamin B6 and vitamin B12. Sheil-Brown said most of today’s cuts have 16 percent less total fat and 27 percent less saturated fat compared to 20 years ago. “Cuts of pork that come from the loin – including chops and roasts – and 96 percent lean ground pork are the leanest cuts of pork available,� she said. She added that higher protein diets, featuring lean pork cuts, can contribute to weight loss and maintaining a healthy weight by helping decrease intake. “Recent research found that when obese and overweight individuals switched to a high protein diet consisting of 25% of total calories coming from lean pork and other proteins, they reported an increased feeling of fullness throughout the day,� she said. An improvement in pork quality and nutrition and the revealed health benefits have seen pork sales rise to an all time high. Sheil-Brown said domestic sales for the fiscal year,

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ending June 30, 2013, were up 1.7 percent total dollar sales compared to last year. Dr. Matt Swantek, swine field specialist with Iowa State University Extension and Outreach, said the versatility of pork can also be credited to its sudden increase in popularity. “Pork is such a diverse product, it can be used in homes and restaurants, from salads and sandwiches, entrees and even desserts and drinks,� Swantek said. “Bacon, in particular, has become an excellent addition to many sandwiches and other food, such as ice cream.� Sheil-Brown explained that meat counters in grocery stores nationwide were given a makeover to cater to pork’s growing popularity. Many cuts received new names, which Sheil-Brown said was due to confusion by similarly named cuts of meat. “Subsequently, consumers did not know what to do with or how to cook a variety of cuts,� she said. “As a solution, the National Pork Board simplified the pork cut names and included basic usage and preparation information on the package.� She said consumers can soon expect to find the new names at retailers. Following are the new and former names of the revamped pork cuts: Porterhouse Pork Chop (Previous name: Loin Chop) Ribeye Pork Chop, Bone-In (Previous name: Rib Chop Center) Ribeye Pork Chop (Previous name: Rib Chop) New York Pork Chop (Previous name: Top Loin Chop) When shopping for pork, along with the new names, customers are advised to use their eyes before putting meat on the grill or in the oven. “Color of product is important. The darker coloring over lighter coloring is going to provide a more tender, juicy and flavorful product,� she said.

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Pork

Page 3 By the numbers

Iowa’s pork industry • At the end of 2008, Iowa had 8,300 hog operations. • At any one time, there are approximately 19 million pigs being raised in Iowa. • Approximately 30 million hogs are raised in Iowa each year. • Iowa producers marketed more than 37 million hogs in 2008. • The U.S. pork industry marketed more than 121 million hogs in 2008. • Iowa is the number one pork producing state in the U.S. and the top state for pork exports. Source: National Pork Board, Iowa Agriculture Statistics Service www.nass.usda.gov/ia/ Iowa Pork Production Economic Contributions: • The Iowa pork industry generates nearly $950 million in household income for pork producers. • More than 39,000 jobs are directly related to raising and caring for hogs in Iowa. • Iowa pork production alone contributes nearly $5 billion to the Iowa economy. • Several billion dollars are generated in the state each year from pork processing activities. • The total value added by Iowa pork producers to the state is more than $2.5 billion. Statistics based on 2007 U.S. Census of Agriculture and analysis by Spencer Parkinson of Decision Innovation and Iowa State University. Note: results of the 2012 Census of Agriculture are scheduled to be released early in 2014.

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Pork

October 11, 2013

The secret to easy entertaining – with pork Tips from Chef Stephanie Izard and pork-inspired recipes

For best results, the National Pork Board recommends cooking pork chops, roasts and tenderloins to an internal temperature between 145 degrees F. (medium rare) and 160 degrees F. (medium), followed by a three-minute rest. Find recipes for the dishes mentioned above and even more recipes to inspire festive, flavorful gettogethers featuring juicy, tender pork at PorkBeInspired.com.

One-third of Americans plan to host a backyard BBQ or gathering in the next three months – and two out of three hosts want their menu to feature food that’s both a crowd pleaser and easy to prepare (according to Impulse Research Corp, “Easy Entertaining with Pork” Survey, July 22, 2013). Fortunately, pork is coming to the rescue. Together with Stephanie Izard, James Beard award-winning co-owner and executive chef of Chicago’s Girl & the Goat and Little Goat restaurants, the National Pork Board is arming people across the country with the tips, recipes and inspiration they need to host any gathering with ease. “It’s always tough to decide what to serve at a gettogether that won’t require hours of prep work in the kitchen and time spent away from the party,” said Izard. “I love showing people that hosting a unique evening with unbelievably good food can actually be quite simple – especially when it centers on pork, which is versatile, so easy to prepare and pairs perfectly with any flavor.” The key to throwing a simple event starts with the perfect meal – like Izard’s deliciously tangy Pork Tenderloin Spring Rolls, which can be served as appetizers or as an entire roll for an entrée and can be made with leftover pork. Check out her tips to master the art of easy entertaining: Leave it for the day before – make bite-sized apps like pork meatballs in advance and freeze them until party time. A potluck gets everyone involved – season and grill a main meat dish, like pork tenderloin, ahead of time to pair with guest-prepared side dishes for a potluck.

About the National Pork Board The above information is courtesy of the National Pork Board, which has responsibility for Checkofffunded research, promotion and consumer information projects and for communicating with pork producers and the public. Through a legislative national Pork Checkoff, pork producers invest $0.40 for each $100 value of hogs sold. Importers of pork products contribute a like amount, based on a formula. The Pork Checkoff funds national and state programs in advertising, consumer information, retail and foodservice marketing, export market promotion, production improvement, technology, swine health, pork safety and environmental management. For information on Checkoff-funded programs, pork producers can call the Pork Checkoff Service Center at (800) 456-7675 or check the Internet at www.pork.org.

Cuban Pork Adobo Salad Signature drink saves the day – decide on a signature punch that you can make ahead and serve in pitchers so guests can help themselves. Whether it’s a premiere party with girlfriends for one of fall’s new TV shows, a tailgate before the game or a final outdoor neighborhood soiree, these tempting new recipes from the National Pork Board will turn any gathering into a fabulous fete: Double Pork Party Sliders – Pork loin chops, bacon, steak sauce and a soft hamburger bun make this tiny but hearty sandwich impossible to resist. Cuban Pork Adobo Salad – A refreshing, lighter dish, mixed greens are topped with cubed New York pork chops, delicious pineapple and a zesty dressing. Make-It-Mine Pork Kabobs – Tangy pork loin skewers are filled with grilled bell peppers, zucchini and mushrooms.

Cuban Pork Adobo Salad

Servings: 4 Ingredients 4 New York (top loin) pork chops, 3/4-inch thick 2/3 cup lime juice * 3 cloves garlic, minced 1 teaspoon ground cumin 1/2 to 1 teaspoon salt 1/4 teaspoon black pepper 4 1/2-inch thick slices fresh pineapple, cored 5 ounces arugula, watercress, or assorted baby greens 1 14 1/2-oz can black beans, drained and rinsed 1/2 small red onion, cut into thin slivers 3 tablespoons olive oil, (plus oil for the grill grate) 1 teaspoon honey

Thank you, Pork Producers. THANKS FOR FEEDING OUR ECONOMY, You produce pork that’s good tasting, nutritious and healthful for our tables. Producing it in an environmentally sound way is a real economic asset to our local community. Farmer Service Coop is your local Coop. Dedicated to your success.

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ctober is National Pork Month, an opportunity for us to salute the pork producers who are committed to producing a wholesome, high-quality food source. These hardworking farm families go to great lengths to ensure our animals are raised in a clean, comfortable and appropriate environment. Their dedication and hard work supports our health and nutrition, as well as our local economy. Next time you see a local pork producer, be sure to thank them for their efforts, and congratulate them on a job well done!

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Cooking directions For the dressing-marinade mixture, in a small bowl whisk together lime juice, garlic, cumin, salt, and pepper. Reserve 1/4 cup of the mixture for the dressing in the refrigerator. For the marinade, transfer remaining mixture to a self-sealing plastic bag. Add chops; seal bag and refrigerate for two to four hours. Prepare a medium-hot fire with charcoal or preheat gas to medium high. Lightly oil grill grate. Remove chops from marinade (do not pat dry), discarding marinade from the bag. Grill chops and pineapple directly over heat, turning once, until internal temperature of pork on a thermometer reads between 145 degrees F. (medium rare) and 160 degrees F. (medium), followed by a three-minute rest , about eight to 11 minutes. Plate greens on four dinner dishes. Divide pineapple, black beans, and onion onto plates. Top with pork chops. For the dressing, whisk the 3 tablespoons of oil and honey into the reserved dressing mixture; drizzle atop salads. * Cuban cooking often calls for sour orange juice, which is less sweet and more acidic than common orange juice. If you can find sour oranges, such as Seville or Bergamont, substitute this juice for the lime juice. You can also use half lime juice and half orange juice. Serving Suggestions For a super-quick side, warm flour tortillas on the grill or griddle pan just until heated through and cut into wedges. Serve tortilla wedges with whipped honey-butter. Nutrition Information: Calories: 490 calories; Protein: 48 grams; Fat: 18 grams; Sodium: 860 milligrams; Cholesterol: 120 milligrams; Saturated Fat: 4 grams; Carbohydrates: 33 grams; Fiber: 6 grams Recipe and photo courtesy of National Pork Board. For more information about pork, visit PorkBeInspired.com.

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Pork Tenderloin Spring Rolls Ingredients 3/4 to 1 1/4 pounds pork tenderloin, trimmed Salt and pepper 6 tablespoons lemon juice 1/4 cup kimchi base, or another Asian hot sauce* 2 tablespoons extra virgin olive oil 2 cups arugula 1 nectarine, (under ripe) pitted and thinly sliced 1/3 cup mayonnaise 6 rice spring rolls wrappers 1 head radicchio, Treviso, halved and cored 1/2 cup mint, torn into small pieces

Season with salt. Mix remaining lemon-chee dressing with mayonnaise and set aside. Remove pork from fridge and cut 12 very thin slices on a slight diagonal. Fill a small bowl with room temperature water. Working with one spring roll wrapper at a time, soak wrapper in bowl of water until softened. Lay wrapper flat onto a clean work surface. Lay two leaves of radicchio Treviso on top of wrapper, then some mint and two pieces of pork tenderloin. Top with arugula salad and roll up the spring roll wrapper tightly and slice into 6 pieces. Repeat with remaining spring roll wrappers. Place spring roll pieces cut side down on a serving platter, and drizzle with lemon-chee mayo. Yield: 6 rolls

Cooking directions Preheat oven to 350 degrees F. Heat a large skillet over medium-high heat. Evenly season pork tenderloin with salt and pepper. Sear Recipe and photo courtesy of National Pork Board. all sides of the tenderloin, about 1-2 minutes per For more information about pork, visit PorkBeInside, until browned. Place pork tenderloin in a roast- spired.com. ing pan and bake in the oven until the internal temperature on a thermometer reads between 145 degrees F. (medium rare) and 160 degrees F. (medium), about 15-18 minutes. Remove pork from the oven and cool to room temperature. Wrap tightly and refrigerate overnight. In a small bowl, whisk together lemon juice, “The Chee” sauce (or kimchi base), and olive oil. Season with salt. Toss 1/4 cup of lemon-chee dressing with arugula and nectarines. Pork Tenderloin Spring Rolls

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Pork

October 11, 2013

Pork fuels U.S. economy Pork production in the United States is a vital part of the economy. According to information from the National Pork Producers Council, nearly 35,000 direct, full-time equivalent pork producing jobs existed in the United States in 2011, which helped generate an additional 515,000 indirect jobs. The industry produced nearly $21.8 billion in personal income from total sales of more than $97 billion and added $34.5 billion to the country’s gross national product. Today there are more than 67,000 pork operations

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w China/Hong Kong: value – 885,076,051; quantity – 430,555 w Canada: value – 885,976,276; quantity – 430,555 w South Korea: value – 421,647,177; quantity – 150,710 w Russia: value – 267,814,436; quantity – 67,935 w Australia: value – 209,603,722; quantity – 67,935 w Philippines: value – 88,171,751; quantity – 37,927 w Colombia: value – 54,007,789; quantity – 19,707 w Honduras: value – 46,540,824; quantity – 20,149 w World: value - 6,320,718,074; quantity – 2,261,746

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compared with nearly three million in the 1950s. Farms have grown in size; 53 percent of them now produce 5,000 or more pigs per year. Nearly 21 billion pounds of pork were processed from about 110 million hogs in 2011. A total of 2.3 million metric tons of pork valued at more than $6.3 billion was exported in 2012. The top 10 destinations for U.S. pork in 2012 (value in U.S. Dollars 1000; quantity in metric tons): w Japan: value - 1,984,952,409; quantity – 455,413 w Mexico: value - 1,128,514,745; quantity – 601,598

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October 11, 2013

Pork

Parent company of Farmland Foods completes strategic combination with Hong Kong company Smithfield Foods, the parent company of Farmland Foods, and Shuanghui International Holdings Limited announced on September 26 that they completed a previously announced strategic combination. On September 24, the shareholders of Smithfield Foods, Inc. voted overwhelmingly to approve the proposed strategic combination with Shuanghui International Holdings Limited. According to a release from Smithfield, more than 96 percent of the votes cast were voted in favor of the transaction, which represents approximately 76 percent of Smithfield’s total outstanding shares of common stock as of the record date for the special meeting. According to an announcement made in May about the sale of Smithfield Foods to Shuanghui International, no facilities will close, collective bargaining agreements will be honored and the existing management team will remain in place under the agreement. The announcement added that Shuanghui would also honor existing wage and benefit packages for nonrepresented employees. During the September 26 announcement,

About Farmland Foods The Farmland Foods pork plant in Denison is the largest employer in western Iowa, employing more than 1,600 individuals, and has an annual payroll of $71 million. The original Farmland Foods plant was built in Denison in 1958 and has been expanded 12 times since its construction. The current size of the plant is 388,000 square feet and it runs on two shifts.

pork market. This is a new era for Smithfield, but one that will continue to be defined by the strictest adherence to the highest standards of food safety and quality, an unwavering commitment to giving back to our communities and acting as a responsible global corporate citizen.” In connection with the completion of the strategic combination, each Smithfield shareholder will receive $34 per share in cash for each share of Smithfield common stock that they own. Smithfield will be a wholly-owned subsidiary of Shuanghui International Holdings Limited, operating as Smithfield Foods and under its existing brand names. Shares of Smithfield’s common stock, as of the close of trading on September 26, are no longer listed on the New York Stock Exchange.

Shuanghui International Chairman Wan Long said, “Today marks an exciting new chapter for both of our proud organizations as we formally begin a partnership that will benefit our customers, employees, producers and partners. Together we look forward to utilizing our individual strengths, including Shuanghui’s extensive distribution network in China and Smithfield’s leading production and safety protocols, to provide safe, high-quality products to consumers worldwide.” Smithfield Chief Executive Officer and President C. Larry Pope said, “Our partnership ensures the stability of our business for all our stakeholders, particularly our employees and the communities we serve, while simultaneously unlocking exciting opportunities for growth in the large and rapidly growing Chinese

We’re proud to recognize the important role our pork producers play in bettering our economy and providing us with the superior pork we enjoy year after year!

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Teen breakfast skippers who eat more protein at breakfast eat fewer calories later in day Teenage boys and girls who chronically skip breakfast have a new and tasty weapon in the fight against obesity. A new, 12-week study presented in April at Experimental Biology from researchers at the University of Missouri suggests that eating a protein-rich breakfast – one that includes lean ham or pork sausage – reduces daily hunger, increases daily fullness, improves morning blood sugar control, and, perhaps most importantly, leads to less, latterday snacking thus reducing calories from fat and sugar. “Nutritionists always tout the importance of breakfast, but now we understand just how powerful choosing to eat lean protein, like pork sausage or ham, at breakfast can be for teen breakfast skippers in particular,” said study lead Dr. Heather Leidy, assistant professor in the Department of Nutrition & Exercise Physiology at the University of Missouri. “Based on this research, taking the time each morning to eat a healthy breakfast – one consisting of about 40 percent of calories from carbohydrates and 40 percent of calories from protein – leads to reduced snacking later in the day thanks to the satiating effects of protein early in the day.” As many as 20 to 30 percent of adolescents in the United States do not eat breakfast at all and are dubbed “breakfast skippers,” a habit associated with excess body weight, according to the 2010 Dietary Guidelines for Americans. The teens who were assigned to eat a high protein breakfast experienced a decreased intake of approximately 400 calories later in the day. However, those who continued to skip breakfast as well as those who ate the same number of calories for breakfast but had much less protein did not reduce daily intake. This 400 calorie decrease in the high protein breakfast group was due to voluntarily eating fewer high-fat/high-sugar snacks in the late afternoon and evening; that is, the teens just chose to eat less on their own without any external restrictions or guidance to do so.

Both breakfast groups, totaling 54 teenage boys and girls, consumed 350 calorie meals. However, the lower protein group consumed high carbohydrate, ready-to-eat cereals whereas the high protein group consumed meals containing foods such as pork and egg burritos, lean ham with protein-rich pancakes and raspberry syrup, or protein-rich blueberry waffles with syrup and a pork sausage patty. Both had the same amount of fat (about 20 percent of total calories) in their breakfasts. The findings in teen breakfast skippers is consistent with past research in adult men that demonstrated the benefits of including lean pork in three daily meals, not just at breakfast, as a way to reduce late-night desires to eat, increase feelings of fullness, and decrease distracting thoughts about food. The study also is consistent with a similar study conducted by the same University of Missouri researchers suggesting a breakfast high in protein significantly improves appetite control and reduces unhealthy, evening snacking for overweight or obese adolescent females. “Increasing evidence suggests that incorporating lean pork into the diet can help with appetite control and body weight management, while also providing key nutrients that growing teens and adults alike need in their daily diet,” said Dr. Leidy. More than just a good source of protein, lean pork also provides several vitamins and minerals including thiamin, phosphorus, zinc, selenium, niacin, vitamin B6, and vitamin B12. In addition, today’s most popular cuts have 16 percent less total fat and 27 percent less saturated fat than they did 20 years ago. Cuts of pork that come from the loin – including chops and roasts – and 96 percent lean ground pork are the leanest cuts of pork available. Above story courtesy of the National Pork Board

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Pork

October 11, 2013

Shutdown’s impact on pork by Greg Forbes Nearly a million Americans were left temporarily jobless and millions more were denied access to programs and services as the United States Federal Government shut down at midnight on October 1 due to an expiration of funding. Some agencies of the government were forced to discontinue some routine actions as other agencies were closed completely. The USDA was one of several national agencies that had its funding expire and was left unable to continue to reach citizens with an array of services. The shutdown occurred on the wake of National Pork Month, a time dedicated to honor and appreciate the country’s pork producers and the impact the pork industry has on a national and global scale. Following are some questions and answers about the shutdown’s effects provided to the Denison Bulletin and Review by Dr. Lee Schulz, an assistant professor of economics at Iowa State University in Ames. Q: How has the shutdown affected the industry? Schulz: The price reporting function of

USDA’s Agricultural Marketing Service has not been deemed “critical� and is thus shut down until further notice. The absence of the benchmark USDA pricing data has caused producers and packers to scramble to find new ways to price hogs. Price discovery is always difficult and it becomes especially challenging when the normal pricing benchmarks are removed. Q: Has the shutdown impacted the market? Schulz: (It’s) too early to draw any definite conclusions. With the normal pricing benchmarks removed, and USDA’s indication that any missing data will not be back-computed, may be difficult to precisely measure the impact. Q: What can producers expect if the shutdown continues? Schulz: Packers are proposing different ways in which to price hogs. Q: Are there any temporary solutions to help counter the impact(s) of the shutdown?

Schulz: It appears that the most popular choices, at least for now, are the price of the nearby October CME Lean Hog futures contract or price data from Urner Barry. A cooperative such as the beef industry’s CattleFAX can work, but it takes time to build the necessary systems and reputation, and must be recognized as a Capper-Volsted Act cooperative to have the antitrust immunity offered to cooperatives. Q: When will the effects of the shutdown show? Schulz: The critical day for the October Lean Hogs contract as it relates to USDA’s Agricultural Marketing Service is October 16. The contract closes on October 15, the tenth business day of October due to the observance of Columbus Day on October 14. CME Group commodities markets are open on Columbus Day, October 14. So the October Lean Hogs contract expires on October 14 and open positions will be settled on October 16. The critical day for USDA hog price data appears to be October 15, the first day for which data will be needed to compute the CME Lean Hog Index on October 16. Of

course, a cash price before then could be useful. The final CME Lean Hog Index that will be used to settle the October contract will include the data for October 15, which is published the morning of October 16 and the data for October 16, which will be published the morning of October 17. USDA has indicated that any missing data will not be back-computed so if USDA’s Agricultural Marketing Service is still closed on October 16, the first day’s data for the needed CME Lean Hog Index value will not be available. CME Group announced yesterday (10/7/2013) a potential change to the way the Lean Hog carcass price will settle in the absence of pricing data from USDA. The potential alternative settlement mechanism will use “volume weighted average price of the October 2013 futures contract for trades occurring during the two-day period of October 11 and 14, 2013, incorporating both Floor-based and Globex-based trading activity during Regular Trading Hours only. This alternative final settlement methodology will be applied to all open positions on October 16.

Nearly 16,000 Iowa hog farmers certified in PQA Plus Participation in the Pork Checkofffunded Pork Quality Assurance Plus (PQA Plus) program has reached record highs since its inception in 1989. Nationwide, more than 59,000 pork producers have achieved PQA Plus-certification with an additional 28,000 young people certified through the Youth PQA Plus program. In Iowa, nearly 16,000 hog farmers are certified in PQA Plus and just under 700 young people are certified in the youth program. “The rising participation in the PQA Plus program shows pork producers’

commitment to doing the right thing on their farms and to providing consumers with high-quality, responsibly raised pork,� said Karen Richter, National Pork Board president and pork producer from Montgomery, Minnesota. The PQA Plus program sets industry standards for food safety and animal well-being. It provides information to ensure producers can measure, track and continuously improve animal well-being. Revisions are made to the program every three years to increase its effectiveness by updating industry practices based on

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new research. The revised PQA Plus program rolled out this year, enhanced with an online recertification option for producers and a written test portion. “While PQA Plus remains an education program, producers wanted to take it to the next level,� said Bill Winkelman, Pork Checkoff’s vice president of producer and industry relations. “Adding a testing component reinforces the learning objectives, similar to the Pork Checkoff’s successful Transport Quality Assurance (TQA) program.� To support continual improvement,

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the site assessment portion of the program encourages producers to work with their PQA Plus advisor in developing and submitting a corrective action plan in the event that a farm-site assessment identifies an area of the operation that needs an improvement to bring it into compliance. “While the focus remains on animal care and producing safe food, the new PQA Plus program also highlights the importance of protecting public health, safeguarding natural resources and providing a safe work environment,� Winkelman said.

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October 11, 2013

Pork

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Pork producers connect farm to fork October became known as Pork Month because it marked the time of year when hogs were traditionally marketed. Today, it serves as a celebration to thank pork producers and share their stories with consumers. “If you eat, you have a connection to a farmer every day,” said Karen Richter, National Pork Board President and Montgomery, Minnesota, pork producer. “October Pork Month is an opportunity to refresh the connection consumers have with farmers. We are committed to continuous improvement on our farms and to providing high-quality pork products for families across the United States and around the world.” In 2008, pork producers adopted the six ethical principles at National Pork Industry Forum. The pork industry follows the six guiding ethical principles

of the We Care initiative to maintain a safe, high-quality food supply of pork. Producers are committed to: • Producing safe food; • Safeguarding natural resources in all industry practices; • Providing a work environment that is safe and consistent with the industry’s other ethical principles; • Contributing to a better quality of life in communities; • Protecting and promoting animal wellbeing; and • Ensuring practices to protect public health. “These ethical principles define our values and who we are,” said Richter. “Consumers can be confident that the pork they eat was raised using these ethical principles.” Pork is the world’s most widely eaten

meat representing 42 percent of the meat consumed, according to the USDA Foreign Agricultural Service. Some 81 percent of the population consumes pork in-home at least once in an average twoweek period. The top five most popular pork products include ham, sausage, bacon, lunchmeat (excluding ham) and pork chops. Of pork products consumed at home, ham accounts for 31.1 percent, sausage represents 19.6 percent, bacon totals 18.1 percent, lunchmeat accounts for 10.3 percent and pork chops round out the top five with 10.2 percent of pork consumed in-home. “Consumers recognize the versatility of serving pork in their homes,” Richter said. “Cooking to the U.S. Department of Agriculture’s recommended internal temperature of 145° F will ensure flavor-

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ful and tender pork on the plate.” The National Pork Board has responsibility for Checkoff-funded research, promotion and consumer information projects and for communicating with pork producers and the public. Through a legislative national Pork Checkoff, pork producers invest $0.40 for each $100 value of hogs sold. Pork importers also invest a comparable amount. The Pork Checkoff funds national and state programs in advertising, consumer information, retail and foodservice marketing, export market promotion, production improvement, technology, swine health and pork safety. For information on Checkoff-funded programs, pork producers can call the Pork Checkoff Service Center at 800456-PORK or check the Internet at www. pork.org.

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Page 10

Pork

October 11, 2013

Š 2013 Farmland Foods, Inc.

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