National Producer-Owned Pork Co-op Being Developed

December 27, 1999

A national producer-owned pork cooperative could be legally incorporated before the new year begins. Membership will be sought within 30-60 days. The co-op is designed to help independent producers gain leverage in negotiating prices and give them the opportunity to become involved in a variety of value-adding business enterprises that coordinate production with consumer needs.

Last June, the National Pork Producers Council Board of Directors voted to facilitate the cooperative to help independent producers. The new co-op will be its own entity, separate from NPPC, and checkoff dollars will not be used to develop or operate the cooperative.

An interim board has developed criteria for the co-op including flexibility to react to industry opportunities; control of sufficient hog numbers to attract alliance partners; maximized returns on producer investment; ability to react quickly to rapidly changing markets; assurance that market opportunities are actively sought for the benefit of the co-op's members; access to key markets; maximized cooperation between the national cooperative and regional cooperatives; response to consumer needs and desires; a proactive position in the pork industry, and investment opportunities in business entities in the pork chain.

NPPC officials say there will be many variations on how individual producers, producer groups, existing co-ops and others can participate. Examples include grouping small numbers of hogs into larger groups for better marketing leverage and changing production methods, such as genetics and feeding, to serve a high-value niche market.