November 29, 2000

The National Pork Board has approved a spending budget of $51.4 million for checkoff-funded programs in fiscal year 2001. The action came during the board's fall meeting in Des Moines. Pork checkoff funds research, promotion and education programs that are designed to build a future and create opportunities for pork producers.

"As we await the announcement of the referendum vote, both the National Pork Board and National Pork Producers Council (NPPC) continue to plan and work on the programs that benefit all producers," said National Pork Board President John Kellogg, a pork producer from Yorkville, IL. "The programs that will be funded with checkoff dollars in 2001 reflect the needs and priorities of U.S. pork producers."

The Board is allocating $39.4 million in contracts to its general contractor the NPPC. A total of $10.4 million will be returned to the state pork producer association level for promotion, consumer information and research programs complementary to the national checkoff programs. Administrative costs of the National Pork Board will remain relatively low for 2001, representing about 3% of the total checkoff collections.

Promotional programming of the total 2001 national and state checkoff funding will account for 61% of the budget. Twenty-five percent of the budget will be directed into research and education. Consumer information programs will account for 14% of the budget.

"We are also focusing on areas of emerging importance to pork producers. Four cross-departmental strategic work areas are high on the priority list for 2001," said Kellogg. He explained the areas include food safety, value-added and niche marketing, nutrition and diet health, and certification programs. "Through producer input, it has been determined that addressing these program areas will help provide producers access to the tools they need to remain profitable in the future."

The following checkoff-funded grants were awarded to NPPC: consumer communications $12.9 million; retail/food service marketing $10.4 million; foreign market development 6.1 million; production technology and information $5.9 million, and swine health/pork safety/pork quality $4.0 million

Of the overall checkoff funds allocated to programs, approximately 20%, or $10.4 million, is returned to state pork associations for work in the state and local level. "The state and national programs complement each other and provide for the most efficient use of checkoff funds," according to Kellogg. "As an example, the states have a more even distribution of funds between consumer information, research and promotion. They rely on national dollars to carry the majority of promotion so they can focus on other more locally effective activities."

The National Pork Board, established under the Pork Promotion, Research and Consumer Information Act of 1985, develops plans and budgets, and awards contracts to carry out coordinated programs designed to strengthen the position of pork in the marketplace. The national legislative checkoff program is funded from assessments on all market hogs, feeder pigs and breeding stock produced in the United States, as well as imported hogs and pork products.