Pork Checkoff Revenues Reduce the Program

August 26, 1999

Reduced revenues from weak hog prices have caused the National Pork Board to make some significant reductions in previously planned industry promotion, research and consumer information program expenditures for the rest of this year. About $7 million was cut from 1999 planned programs.

Pork Board Budget Chairman Greg Boerboom, Marshall, MN, producer, says there will be an obvious impact on some of the more visible checkoff funded programs, especially in consumer advertising and promotion.

"However, producer education, environmental efforts, production, swine health and pork safety programs will be maintained to every extent possible in order to meet crucial producer needs," Boerboom adds.

About half the pork advertising planned for cable TV and all the checkoff-funded print advertising during the fourth quarter of this year will be canceled. Retail marketing efforts also will be scaled back. Selected foreign market development in Europe and the Pacific rim will be reduced or eliminated for the rest of the current year. Less money also will be available for food safety and pork quality programs.

Boerboom anticipates improved revenues next year, but still, spending will be slightly reduced, he said. Most of the financial reserves of the Pork Board and the National Pork Producers Council have been exhausted, used to offset partially declining checkoff receipts and keep programs operating at near normal levels.

Both organizations also have worked in recent months to reduce administrative costs, including staffing, fewer board and committee meetings and streamlined producer communications efforts.