News from the National Pork Board (May 2018)
The nation’s pork producers receive an overall return of 25:1 on their Checkoff investment, according to a 2017 study conducted and released by Harry Kaiser, the Gellert Family Professor in the Dyson School of Applied Economics and Management, Cornell University.
An economic analysis of Pork Checkoff programs is commissioned every five years by the National Pork Board. The study quantifies the returns generated by Pork Checkoff investments in research, pork promotion and producer education programs. The latest results, published in 2017, cover Checkoff programs conducted from 2011 to 2016.
Specifically, the study documented a growing return on investment through defined benefit-cost ratios across several key program areas. Each dollar invested in:
- Production research to benefit on-farm practices yielded $83.30 in pork producer value.
- International marketing yielded $24.70 in producer benefits.
- Domestic marketing resulted in benefits of $14.20 for advertising and $12.40 for non-advertising promotion.
- Research market drivers to grow demand returned $8.30.
Collectively, the overall return of Checkoff program activities is $25.50 for each dollar invested.
USDA requires that a return on investment analysis be conducted every five years. The 2001 to 2006 study showed an overall return to producers of $13.80 for every $1 invested, and the study released in 2012 for the period of 2006 to 2011 found a return of $17.40.
For more information, contact Dave Pyburn at DPyburn@pork.org or 515-223-2634.
Checkoff’s science and technology team delivers more solutions
In the recent Cornell University return on investment study, it’s clear that the Pork Checkoff brings value to the table for America’s pig farmers on many fronts. This is especially true for research overseen by the Checkoff’s producer-led science and technology committees and affiliated staff. The study showed a return of $83.30 to producers for every dollar invested in swine research aimed at improving on-farm practices.
“The results underscore the importance of funding research that has a positive effect on the pork industry,” said Dave Pyburn, senior vice president of science and technology for the Checkoff. “America’s pork producers deserve a maximum return on their investment and we’re pleased to focus our efforts on finding real-world solutions using a science-based approach.”
Among the many noteworthy accomplishments in 2017 for Checkoff’s science and technology area, several stand out. These include:
- Developing and refining antibiotic stewardship and on-farm solutions
- Making an additional investment in sow productivity research
- Moving ahead on foreign animal disease preparedness tools
- Making progress on sustainability tools and historical benchmarks
- Hosting farm tours for scientific influencers
- Hosting the inaugural Pig Welfare Symposium
- Leading industry-wide efforts in pork safety and quality.