American swine producers see positive returns on Pork Checkoff investments

Jan 09, 2018

NPB study reveals strong farmer support of the program

Staff Reporter

Farms.com

The National Pork Board (NPB) has released an economic analysis of its Pork Checkoff from 2011 to 2016, according to a release yesterday.

Pork producers pay 40 cents per $100 market value of pigs sold, Kevin Waetke, vice-president of strategic communications for the NPB, told Farms.com yesterday.

From the Checkoff, the NPB uses “about $40 million in producer investment to deliver programs to meet the functional needs of our industry – specifically areas like science and technology, domestic and international marketing, and producer education, training and certification,” Waetke said.

Every five years, the NPB commissions the report, “which quantifies the returns generated by Pork Checkoff investments in research, pork promotion and producer education programs,” the release stated.

Over the most recent five-year period, producers saw a return of $25.50 for each dollar invested. This amount is an increase in the returns from previous years, which were $17.40 (2006 to 2011) and $13.80 (2001 to 2006) per dollar invested.

Producers saw each dollar translated into the following benefits, Waetke said:

$83.30 from production research to improve on-farm practices
$24.70 from foreign market development
$14.20 from advertising
$12.40 from non-advertising promotion

“The net return of 25:1 on Checkoff investments demonstrates that we are meeting producer needs in the areas that drive sustainable production and grow consumer demand,” Terry O’Neel, president of the NPB, said in the release.

In addition to the economic study, the NPB also released the results of its annual producer survey conducted in November.

The survey, which included 550 pork producers from across the country, reflected an improvement in producer support for the Pork Checkoff program for the eighth consecutive year.

“Support for the Checkoff remained at 91 percent, while opposition declined to a record low of 3 percent,” the release stated.

Photo: National Pork Board

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