Vita Plus Corporation
P.O. Box 259126
2514 Fish Hatchery Road
Madison, WI 53725-9126
1.800.362.8334
608.256.1988
 Vita Plus Swine Summit 2010
Dealing with Activists with Boots on the Ground
In addition to nutrition, reproduction and management, today’s hog producer has another very important topic to be concerned about: addressing the concerns of consumers with changing perceptions how their food should be produced.
During the Vita Plus Swine Summit, Vice President Al Gunderson highlighted key lessons the company has learned in the past year as well as programs to support producers in the future.
Last fall, the University of Wisconsin-Madison campus was visited by high profile agenda journalist Michael Pollan. Pollan has authored such books as “The Omnivore’s Dilemma” and “In Defense of Food” - both of which negatively and inaccurately depict today’s modern farmers.
As part of a grassroots effort, Vita Plus employees, customers and industry friends joined together in a movement called “In Defense of Farming.” Two full busses met at the Vita Plus office for fellowship before heading to the UW-Madison Kohl Center for Pollan’s keynote speech. Each attendee donned a green “In Defense of Farming” t-shirt. This attracted attention from hundreds of audience members and gave producers the opportunity to share their values and stories.
As a result of the effort, Pollan’s presentation format was changed to include a question and answer session as well as a panel discussion the following day. UW Chancellor Biddy Martin modified her introduction to recognize the diversity and productivity of Wisconsin agriculture and Pollan changed his message as well. Perhaps most importantly, the media labeled “In Defense of Food” as a controversial book and included a producer’s perspective in nearly every story they ran, giving producers a chance to engage in the dialog and earn valuable face time with consumers.
Gunderson said that, in retrospect, several items need to be remembered. First, these efforts – although successful – took a lot of time away from normal business activities. Second, he reminded Swine Summit attendees that “this is a marathon” and “these topics are not going away.”
He also offered these key points for swine producers to consider:
Gunderson went on to remind the swine producers that they shouldn’t try to change the mind of the opponent. Rather, they should speak to the audience that is listening to the debate. It’s important to act as an informed expert and be prepared to deliver your message quickly and clearly. Another important concept to keep in mind is to not confuse the issues. For example, a discussion about animal rights and welfare is different from a discussion about food safety or “factory farms.” Be clear and concise in your messages; don’t take on every topic at once. Gunderson went on to detail Vita Plus efforts in the Safe Feed/Safe Food Certification process and overall commitment to food safety. Led by the American Feed Industry Association, Safe Feed/Safe Food’s mission is “to establish and promote generally accepted food safety guidelines designed to ensure continuous improvement in the delivery of a safe and wholesome feed supply for the growth and care of animals.” Moving forward, Gunderson said advocating for the agriculture industry is everyone’s job and it starts on the local level. He encouraged producers to support organizations such as the National Pork Producers Council, Animal Ag Alliance and IFEEDER. In all aspects of their operations, producers should ask, “How would this look on YouTube?” They should also understand that science is tough to sell in emotional and political debates. Discussing your values first will likely prove to be much more effective.
How Team Work and Unity Can Benefit Animal Agriculture:
Increasingly, consumers are hearing negative messages about animal agriculture through campaigns led by activist groups. And these messages have serious implications, including legislative actions against animal agriculture production that are based more on emotion and less on science.
David White, senior director of issues management with the Ohio Farm Bureau Federation, witnessed firsthand how to successfully rally public support. White began his Vita Plus Swine Summit presentation by painting a picture of Ohio agriculture. He said the livestock and poultry industries contribute more than $8 billion to the state’s economy and generate more than 47,000 jobs. When out-of-state activists decided to cross Ohio state borders, members of Ohio farm groups knew they needed to be proactive. According to White, two groups based in Washington D.C. – Food and Water Watch and the Humane Society of the United States (HSUS) – targeted Ohio and began using emotion to raise money and achieve their goals of eliminating animal protein from Americans’ diets. Their first step was to make how animals are housed and cared for societal issues. Six major farm groups joined together to launch the “Ohioans for Livestock Care” campaign and encourage consumers to vote “yes” for Issue 2. Issue 2 was introduced as an amendment to the state constitution, authorizing a bipartisan board of 13 members – representing farms, farm groups, veterinarians and foods safety experts – to establish best management practices for animal agriculture. It also stated how the panel members would be named and described its relationship to the General Assembly. Key responsibilities of the board would include setting standards for:
White said that Ohio went after a constitutional amendment because the Ohio Constitution already established about a dozen boards and commissions similar to the proposed animal agriculture board. The campaign included paid media, social media, earned media, fundraising, coalition building, and accounting and legal support. Furthermore, campaign organizers mailed 775,000 postcards to Ohio citizens and 66 county Farm Bureaus coordinated “chase mailers.” White said its key messages included:
White described the campaign as “a major grassroots effort” that led to more than 500 organizations signing on in support of Issue 2. The effort that paid off. On Nov. 3, by a margin of 64 percent to 36 percent, Issue 2 was passed by Ohio voters. This very loudly and clearly confirmed that Ohio citizens want Ohio farmers to remain the decision-makers in the state’s livestock production. Last week, House Bill 414 – the bill implementing Issue 2 into law – passed 98 to zero. The governor is preparing to sign the bill into law in the near future. White cited some of the key lessons he and other farm advocates learned through the process. He said it is important to have a team approach – one centered on unity and coordination. Farmers need to “own” the animal welfare issue and take the lead on discussions. He also said they need to engage more in online media, particularly social media. According to White, animal agriculturists need to keep abreast of the issues activist groups place in the media. Producers should ask themselves, “Is what they are saying about my farm and my agriculture true?” As he looks ahead at other HSUS initiatives, White said Ohio – and American – agriculturists can’t relax. They should instead take advantage of the public’s increasing interest in production agriculture and use the opportunity to share their message of farming and raising animals. “Consumers want to know more about how their food is raised,” White said. “It’s up to farmers to tell them how it’s done.”
The Pork Industry's Social License to Operate
Arnot said the public can sense the way their food is produced is changing, but they don’t understand the change. That lack of understanding creates a perfect opportunity for activists to plant their messages. This is what makes it so important for producers to educate the public on their values for livestock production. Farmers must be aware of and ready to communicate the global values of compassion, responsibility, respect, fairness and truth. Farmers should show that they produce animals with these values because it’s the right thing to do, not because it what makes the best return on investment.
According to Arnot, the revocation of their social licenses will take away producers' freedom to operate. To keep that from happening, Arnot said producers must be proactive in sharing their values with their fellow community members. By doing so, the public will begin to place more trust in conventional agriculture and become more skeptical of messages planted by the Humane Society of the United States and similar organizations.
Expectations of an Animal Welfare Audit
It’s not just iPods and digital television that make today’s world different from that of 50 years ago. More and more, today’s consumers are far removed from agriculture – quite different from yesterday when almost everyone had a family member involved in production agriculture. Earl Dotson, CEO of Validus, highlighted what these changes mean for modern hog producers at the Vita Plus Swine Summit.
Citing the U.S. Census Bureau, Dotson said 75 percent of the U.S. population is urban and a quarter of U.S. citizens live in the nation’s 50 largest cities.
“They have little understanding of livestock production and a general lack of trust in many agricultural practices,” said Dotson.
He explained that most consumers have a “romanticized image” of animal agriculture – complete with scenes of dairy cows grazing on green pastures, pigs wallowing in the mud and chickens roaming around the farm. It’s that kind of viewpoint that leads to such shock and emotional reaction when the public sees videos or photos released by activist groups.
Dotson said, “Agriculture has lost its ‘good guy’ image.”
According to Dotson, consumers are renewing their interest in animal agriculture and bringing up a lot of ethics questions during the discussion. Dotson said “ethics are not about science,” but rather “ethics are about what is perceived as right.” Dotson told the crowd of swine producers that this idea of “what is right” is what producers need to determine.
One way to do that and to portray a positive image of your operation is to conduct a third party audit. Perhaps a new concept for some producers, Dotson said the third party verification program:
Dotson said the audit actually begins prior to the farm visit with a questionnaire about housing and management. “This ensures the whole operation can be reviewed without missing animals, facilities or events,” Dotson said. The next step is an entrance interview in which the auditor explains the process and requests documentation of protocols and training programs. After the interview, the auditor visually inspects animal handling and management, herd health protocols, food and water quality standards, housing, security procedures and management of “special needs” animals. This process also includes observing employees and asking them questions. The last step in a third party audit is an exit interview to review the observations, gain clarity on any questions or concerns, and cite areas that may need further explanation. The audit ends with a final report filed by the company and sent to the farm. Dotson said an audit should be aimed at helping producers work toward continued improvement. It shouldn’t cause the operation to fail. As producers seek out accurate audits, Dotson recommended an auditing company should:
Dotson concluded by reminding the room full of hog producers that it is vital for the industry to build and maintain consumer confidence, especially regarding animal welfare issues. With a goal of total transparency, producers need to be able to back up their positive messages. This starts with producers conducting self-audits of their operations every year to ensure that animal welfare protocols are top-notch and maintained by every employee. “When you work around animals, you better be thinking, ‘Who could be taking my picture today?’,” Dotson said. He also said that producers can no longer defend the idea that “you can’t come on our farm because it is a biosecurity risk.” That message no longer works with the public. Rather, producers need to be very transparent with consumers so that false images of production agriculture aren’t viewed as the truth. Dotson said, “Animal welfare must be defined each day by the people who care for the animals on our farms.”
Swine Summit Breakout Sessions
2010 Vita Plus Swine Summit attendees had the opportunity to choose from a handful of breakout sessions to discuss issues related to their operations. These discussions were facilitated by Vita Plus employee owners.
During the Sow Management Breakout, producers discussed the role lysine intake plays in lactation. This amino acid is essential to milk production, influencing both litter weight gain and wean-to-estrus days. A Vita Plus field study demonstrated that in first parity sows, top dressing with Vita Plus Sow Enhancer results in higher lysine intake and reduces the wean-to-estrus days.
Another tool for improving sow management is introducing self-feeding PVC tubes in sow pens. This allows the sow to have constant access to feed and eat on her schedule and increases feed intake.
As corn mycotoxins continue to be an issue, producers were reminded that “dilution is always a good solution.” In cases where dilution is not possible or inadequate, several toxin binders on the market can help limit toxin challenges.
During the Production Management breakout, producers discussed new and unique trends they’re beginning to see in the industry. This includes strange disease happenings such as swine pox and worms. Some producers have also seen a one-tenth to two-tenths increase in feed conversion related to corn challenges. At this point, it’s hard to say whether that’s due to excessive drying, low test weight or a combination of the two.
The Risk Management Café – another Swine Summit breakout – exposed producers to different strategies and resources related to risk management in commodity markets. On hand to offer their expertise were Scott Gerig, business development manager with CIH, Shane Johnson, Hurley and Associates risk management consultant, and Larry Sills with Producers Livestock.
A final session on the Vita Plus mentor program gave producers the opportunity to discuss the tool and strategies they’ve used to improve marketing on their operations.
For further information on any of these breakout session topics, contact your Vita Plus representative or local dealer.
Friday, March 26
Current Trends in Swine Health and Production
Returning to Vita Plus Swine Summit again this year, Dr. Tim Loula, DVM with Swine Vet Center, addressed the latest swine health and production trends to the room full of hog producers.
Loula described the last two years as “the most difficult two years I’ve seen in my time of practice,” but said with luck the worst is behind us. Because farmers can’t risk making any financial mistakes, they have begun working more with bankers and utilizing risk management strategies.
As Loula worked with his producers during the poor hog markets, he said everyone was simply focused on survival and said the Midwest hog industry took on a “last man standing” environment. However, he said the Midwest is still the best place to raise hogs.
The veterinarian went on to highlight several new goals his customers have been setting:
Loula also highlighted a few nutrition strategies for hog producers:
As Loula reflected on the swine industry, he reiterated that producers need to be proactive in sharing their stories with the public instead of reactive when activist groups spread their negative messages. He reminded producers that the U.S. hog industry has successfully demonstrated that today’s pork is safer than it was at any other time in the past. As markets improve the key to successful hog raising will be to continue striving for excellence in all areas of the operation. This holds especially true for producers in the Midwest. “We are in the right place in the world to raise pigs and we’ve got to be better than anyone else,” Loula said. “We’ll be fine.”
Marketing Tools You Can Use
Marketing the right pigs at the right time to the right market is a task that is likely much easier said than done. However, according to Vita Plus Swine Sales Manager Nate Brown, several tools are available for producers to achieve their marketing goals. During his presentation at the Vita Plus Swine Summit, Brown highlighted a four-part process for marketing pigs.
Part 1: Discussing the Concept of Optimal Market Weight This basic concept is simple: sales – expenses = profit. Producers should ask themselves, “At what market weight is the profit the greatest?” This optimal weight is affected by many variables, including the packer grid, market price, feed costs, genetic/carcass/lean factors, feed efficiency and facility cost. The optimal market weight also differs based on whether you market single pigs, top out loads or average loads. Part 2: Designing Farm Specific Optimal Market Weight Curves The idea behind this step is to determine the gross value minus the base price on a load-by-load basis. iProduction as well as a template designed by Kansas State University can be used to assist in this step. Part 3: Analysis and Economic Implications of Optimal Market Weight in the Real World By comparing data in Parts 1 and 2 with real world data, two questions arise:
Part 4: Strategies to Capture the Potential of Optimal Market Weight If you conclude that you’re selling too light, several strategies may help to address the challenge, including additional finishing space, increased Paylean usage, increased dietary energy and heat abatement. Be sure to run a cost:benefit analysis to determine your potential payback.
On the other hand, if you conclude you’re selling too heavy, evaluate communication between management and load out crews. Then develop a more effective “trigger” to start topping barns, such as scale barns, portable scales or days on feed. The Vita Plus mentor program is also a useful marketing trigger to prevent you from selling too heavy.
Brown concluded his presentation by reminding producers that “consistently selling pigs near the optimal market weight adds dollars per pig to your bottom line.” Many variable affect the optimal market weight and several tools are available to help you market your animals. He also said the Vita Plus swine team is available to help producers utilize these tools and improve their bottom line.
What's Ahead for U.S. Hog Profits?
Volatility and uncertainly have been the name of the game for hog producers over the last couple of years. Steve Meyer with Paragon Economics, Inc. recapped the last year and gave Vita Plus Swine Summit attendees a look at what’s in store for pork producers.
According to Meyer, U.S. consumers are eating less meat overall and total consumption will likely continue to decrease through 2011. He said the pork industry can’t continue to raise more and more pigs if people are eating less meat. Although the economy is slowly recovering and personal income is projected to return to 2000 levels, the average saving rate is at “a whopping” 5 percent, which means consumers aren’t likely to return to their 2000 spending habits.
“Having money is one thing, but being willing to spend it is another,” Meyer said.
Corn costs will continue to have an effect on hog operations. Although 2009 resulted in a record corn crop year, the delayed harvest and quality issues have made things difficult. Regardless, the U.S. will still use over 4.3 billion bushels for ethanol. Higher corn prices will result in higher retail prices. Meyer warned that consumers won’t think it’s due to ethanol. Rather, they’ll blame producers.
Looking forward, Meyer said the pork industry is entering into the markets with low frozen stock meat supplies which should help price. However, he said that USDA quarterly hog and pig reports show that supply won’t be a lot lower. Although the total sow population is down 6 percent, productivity has improved by 2 percent on litter size.
Although futures prices have been optimistic for quite some time now, Meyer said he still thinks there’s opportunity for swine producers to lock in prices. In relation to demand, Meyer said it all depends on the economy. Although demand is regaining, Americans are still hesitant to spend their recovery cash and may react negatively to wholesale prices driven upwards by costs.
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A big challenge lies ahead for American agriculture: "How do we earn and maintain the social license we need to feed 390 million Americans and 2.7 billion more people around the world in 40 years?"
