Prioritizing animal welfare and sustainability in the pork industry - Lori Stevermer

Hello, I'm Paul Yeager. This is the MToM Show podcast, a production of Iowa PBS and the Market to Market TV Show. This week, we're going to go global in Iowa with the World Pork Expo held at the Iowa State Fairgrounds and the pork industry takes it over as they have done for decades. And one year they did not have it, because of disease. And that is always an issue that faces the industry. Things haven't changed but agriculture is facing it from many different sides. And everybody's interested because they want healthy, safe food and a supply that is there when they need it. Lori Stevermer is the President of the Board of Directors of the NPPC. She is our guest this week, we've talked to Lori before. She is based in eastern Minnesota, not only is she a producer, she's also a nutritionist. And so she has great insight into the industry. And we'll have a conversation with her. She joined us from the media room of the World Pork Expo. And it was a little loud and busy in there because there was lots of interest in the industry on a couple of topics. We've talked about the Farm Bill, before on this podcast, and we're going to talk about it from the lens of pork. We're also going to look at trade, as a phrase that we heard several years ago has returned. You'll hear that. If you have any feedback for me, send me an email at Paul.Yeager@IowaPBS.ORG. Now, let's get our conversation going with Lori Stevermer. Last year, Lori, when I saw you in the hallway at World Pork Expo, you're having side conversations, and I'm guessing that didn't change this year, there's still lots of people talking.

Lori Stevermer: You know, there's still a lot of people talking. And in fact, we had a really good attendance, there might have been even more people talking in the hallways this year and out on the grounds. 

[Yeager]  That's the nice thing. You had the one year you had the COVID. And then you had another issue that kept you from having the Expo and I know, I think you and I had talked that was the part people missed were having those conversations with people. What's the big topic this week?

[Stevermer]  Well, I think there's probably a few different topics, you know, just one is the state of the industry. And while we have better profitability than we did, you know, a few months ago, we went through that really long stretch almost a couple of years of of no profits, we've got some profitability back in the market, but people are still concerned, a lot of discussion on how fixed costs have risen, whether that's labor insurance, and things like that. So feeling better, but But definitely, you know, eye on the future and hoping that profitability stays. You know, Animal Health is always a big topic too. And whether it's due per strain, discussions on eliminating pdv or even, you know, continued discussions on foreign animal disease and prevention and preparedness. So, I would say those are the two big topics along with the Farm Bill. You know, it's the Farm Bill year. So definitely a lot of interest on what's going on with the Farm Bill.

[Yeager]  Lori, you misspoke. You said Farm Bill year, I think you meant Farm Bill years, and it feels like a decade as long as that thing is extended?

[Stevermer]  You know, you're right. I did misspeak. I referred to the farm bill as a marathon yesterday. And I I think that is adequate term. It does take a while to get it done. So

[Yeager]  one of the things hopefully, yes. One of the things that your industry specifically has been interested in is, is the Prop 12, in figuring out a way to see if that can get into the Farm Bill. Do I have that accurate?

[Stevermer]  You do. And we certainly appreciate all the work by GT Thompson. I saw him a year ago at Farm Fest. And he told us at that time that he was determined to get a federal solution or preemption for Prop 12 into the House Ag Farm Bill. And he did that. So we are really pleased that that's in there. I mean, really everything that we are asking for in the farm bill that the House Ag committee came through, so very pleased with that.

[Yeager]  The bigger question with that bill is the Senate side. What's the conversations like there?

[Stevermer]  Yeah, that is the big question. And, you know, our staff is working diligently on the Hill, with both the Republicans and the Democrats and continuing to have conversations and you know, we don't have a clear path forward yet. On the Senate side, we're going to continue to have those conversations. That's where we've really asked our producers to be engaged their grassroots efforts, I mean, to make their voices loud and make their situations known to their members. And they've done a great job. I mean, we've had our lac conference, our big fly-in and there's been many fly-ins. We know a number of producers have read letters to their senators and their representatives. And certainly encourage them this summer when Congress is on recess and back in their home districts at county fairs, state fairs, I mean, continue to put the pressure on. So that that we can get some positive action from the Senate on prop 12 and a federal solution for that.

[Yeager]  What does that look like right now? What do you what's that frame? What are you talking to the Senate about that was important done in the House?

[Stevermer]  So in the House, we got basically a full preemption for pork and some other products to as defined by those that are federally inspected. And, you know, we would hope for the same thing in the Senate. I think the real key is to have something in the Senate. So as the Senate and the House go together and conference, we come out with something through that conference committee.

[Yeager]  And again, it's about conversations, hallway conversations, you talked about the fly ins and the opportunities, it is still relationships, and there's been field hearings, there was some field hearings, there was one not too terribly far from our house a couple of years ago, do you feel that you're being heard?

[Stevermer]  I do feel like we're being heard. And I feel like we've got others in the industry that are hearing us also, we had a letter with Farm Baill on Prop 12, a coalition letter that had almost, you know, 800 different signatures on it. And so, pork is definitely like we say at the tip of the spear with this Prop 12 issue. But other industries are starting to recognize that it can affect them. It certainly helps our case when Secretary Vilsack has said on numerous times how Prop 12 can cause chaos. I actually heard him say that about a month and a half ago, we were at an event in Minnesota. And then he said it again that Prop 12. And what it can do, can cause chaos for all of industry, all of agriculture. And I think when you people start hearing those statements over and over again, I'm really hoping that that's starting to resonate or wake them up and say, Hey, I may be a different commodity group. But this could affect me someday.

[Yeager]  Well, Lori, I heard that tip of the spear comment used several years ago by the trade rep of the organization, the one who handles a lot of trade and, and that was used about when there were trade wars, what's the trade situation right now and the appetite for exports of us pork?

[Stevermer]  You know, '23 was a good year for us for exports, we had about $8.1 billion worth of exports, and '24's starting off to be a good year. And we certainly want to keep that in mind. 26% of our pork is exported at about $62 worth of value. So that's an important part of our revenue back to our farmers. The other thing is many of our exports are a variety of meats, things that we don't eat here in the US. So that continues to add value to the whole carcass. And our team led by Maria Zieba is always having conversations with various countries, whether it's to maintain the markets that we have, or to find new, existing new markets, and we probably aren't going to have any big free trade agreements like we did 20 years ago. But it's those consistent conversations, those frameworks and open up opportunities. South Sudan, South Africa is one of those, that could be a great opportunity for pork.

[Yeager]  President Biden has stayed the course on tough talk with China like President Trump did. Do you see China as an opportunity? Or is that a little fuzzier right now? 

[Stevermer]  A lot of people say China is interesting, or they always say China's always interesting. And and they really are. I mean, they are one of our top five markets. And they take a lot of variety meats from us. But we know there's often other dynamics involved, whether it's retaliatory tariffs, and, you know, other types of political things that affect us. And so, you know, certainly we want to continue to export as much to China as we can, and if there's opportunities to export more, that's great. But I think one thing we've learned is that we can't put all of our eggs in a basket, even a very large basket like China, because there are things that happen beyond our control. And that's why having that diversity of markets and looking for new markets even if they seem small at first Malaysia or something like that, that doesn't seem that big, you know, every little bit helps.

[Yeager]  You mentioned South Africa, but let's go in between China and South Africa, India, is that any potential?

[Stevermer]  You know, we've talked about India, there is potential. They do eat pork in India, it's a huge population. Or I think there are some other regulatory law and maybe not regulatory, let's say some kind of trade barriers that are going on right now. We haven't talked about him as much lately as board. But I know that it's still on our radar for the future.

[Yeager]  You mentioned animal health. That is, again, a topic. I mean, ASF is one of those hindrances for some trade destinations, they just get fearful of any type of disease. That's a non-stop health is always something that is, is facing any industry. What's the biggest takeaway right now with the state of pork and 2024? 

[Stevermer]  Well, I would say a couple of things. First of all, you know, going back to the farm bill on the House Ag Committee, we did get funding for what we call that three legged stool, so our National Animal Health Network, or lab networks, funding for veterinary stockpile, and also funding for vaccine banks. So that that is key that, that continued funding for disease prevention, preparedness is important. I would also say producers, on their mind is a little bit more discussion about disease elimination. So maybe it's a disease as, like pdv that we look at. I mean, what do we need to do to start eliminating that disease at a certain areas? And we already do good jobs in terms of biosecurity? So is that how we move pigs? Is it more truck washes? You know, a lot of ideas are being brought forth. There was some discussion about I know there was discussion about here at World Pork Expo. But you know, kind of a two prong effect always be prepared for what might happen from a foreign animal disease, but then also looking at some of our domestic endemic diseases, and how can we really, with our veterinarians, and others really work to try to eliminate them or reduce them in certain areas?

[Yeager] We talked about bird flu with the poultry industry, is that being talked about in the swine industry?

[Stevermer] Well, I would say, h five and one, whether it's in the poultry or in the dairy, you know, comes across to any type of discussion when you're talking about animal health. And, you know, the thing that we talked about in the swine industry is the importance of the biosecurity practices that we have in place. And, you know, I think the poultry that dairy are understanding that now too. So, you know, feel good about the practices that we have. We talk a little bit about traceability and at the forum in March, our National Pork Forum, our delegates passed a mandatory traceability standards that is going in front of USDA and you know, this was something that we worked on for over 18 months it was producer led, but it was focused on being understand traceability and where a disease might be, and where might not be because that's really key with our trading partners. Should there be some type of foreign animal disease outbreak, and we want to look at some type of regionalization to be able to export or what's the quickest way back to as exports, that traceability is really key. So really appreciate our producers not only looking at biosecurity, but also looking at it on a bigger broader picture.

[Yeager]  You're a Minnesota producer you're sitting in Iowa, the Secretary of Agriculture in Iowa, Mike Naig, sat across from me in this room a few months ago, and we talked about H5N1 and we talked about the playbook of of traceability - cleaning trucks, feed trucks that come in and out. I mean, the hog industry has long done those types of security measures when it comes to keeping diseases out of the barns, out of the pens. You all are sharing information. Is that still happening on an open dialogue among the different commodity groups? 

[Stevermer]  Yeah, and it may be happening more at a staff level. I know our staff individuals are getting on weekly or bi weekly calls with others across the industry and discussing things like H5N1 and staying in touch with it. The truck washes those type of biosecurity standards. You know, we're doing a good job as an industry but we need to do a better job. We know at times when we have disease breaks, it's because likely there's some protocol that was broken along the way with the truck wash and so I live in Minnesota, sometimes it gets cold especially in the winter. I know there's concerns with with truck washes and things that happen in winter with water and ice and But we need to continue to challenge ourselves to, to find ways around that or to use net new technologies, because because we can see how devastating it is when there is some type of a protocol break and we get a disease. And so I think anytime we can share information amongst us whether we support industry, poultry, or dairy, that helps all of us.

[Yeager]  Let's talk about that home operation. How are things back there? 

[Stevermer]  You know, things are good, our pigs are good, we're in the process of the cycle where we're selling out, so we'll clean up and get new pigs in a month or so. We are fortunate we've had good rains, not excessive rains, and we've got some water setting. But overall, I feel like we're in a good spot.

[Yeager]  You're not in one of those areas where I see the pictures of the tractors stuck or planted around the double the land of 10,000 Lakes, it's more like 20,000. Now.

[Stevermer]  Yeah, well, fortunately, we're not in those areas. And I know that's challenging. If you are, we've probably got a little bit of crop that drowned out but not bad. So definitely feel good about where we're at.

[Yeager]  You are officially president now of the board, you're beginning this tenure, but when your chair-elect, you still take care of a lot of travel and duties. Where have you been in the last 12 months? And where do you think you'll go in the next year? 

[Stevermer]  Yeah, that, you know, that's one thing nice about us. Our officer rotation is that we get involved vice president, President Elect and then President and then past president. So it allows you to learn and experience along the way. I have traveled more, I had the opportunity last fall to go to the world meet Congress over in Brussels in the Netherlands. And very interesting to hear that conversation about what's happening on an international basis with the meat industry, you know, somewhat concerning on some of the green deals in the EU and the conversation that that should be applied other places. Our trade committee took a trip to Brazil, in March, and so had a chance to see why we didn't tour any pork facilities, we had a chance to meet with some of the Brazilian pork industry individuals. And just, you know, I think all of us came away, realizing that that industry was much more advanced and productive than maybe what we realized. The other place. I was in Mexico a few weeks ago, we have had trilateral meetings over the last year and a half with the Mexicans and the Canadians and really trying to have continued conversations, much of it around animal health. And like we talked about foreign animal disease prevention and preparedness. I mean, we're on North America, we're connected, we know that we have pigs that move from Canada to the US and we have pork that goes down to Mexico. So how do we look at ourselves as an industry to be prepared and have those conversations before something happened? So those were the big trips, did take a few trips to DC through there. In terms of where I will go again in the next few months. Probably back to DC. I know I have the opportunity to go to the Democratic National Convention in August. Never been to that before, that should be interesting. And then we'll just see where the staff needs to be after that.

[Yeager]  Is that a political trip to go to the DNC?

[Stevermer]  It's political in the fact that yes, it will be a political convention. I will be just an observer. Our president-elect Dwayne Stateler is going to the Republican National Convention. So, you know, we're splitting it up. But I think just two, it'll be fascinating just to see firsthand how everything works and the processes and I think especially this year, with, with politics the way they are. So I'm looking forward to it just as anything as an observer.

[Yeager]  The Brazilian trip, I want to go back to that for a moment. You mentioned the size, and maybe not the size, but the advancement of their industry. We always hear about Brazilian beef, are we about to start hearing more about Brazilian pork? I mean, are they to the point of starting to export themselves? 

[Stevermer]  They are exporting and the Brazilians. In Brazil, there is no purse, and there's no PDV. So when it comes to some of those health challenges that we face in the US, they don't have them in Brazil. Now, they may have some higher ingredient prices because they have to bring in some corn and move some soybeans across the country. They don't have the infrastructure that we do with trucks or railroads. But definitely in terms of their productivity, the number of pounds of pork or pigs that they can produce per cell. and their economical ability to do that, or their ability to raise pork economically, they are very competitive. And so they are looking to get into some areas, China, wherever Central America and definitely could be a bigger player in the future in terms of the export market.

[Yeager]  And there's already a strong relationship between Brazil and China when it comes to soybeans. I mean, they already have contacts, they have theirs in their Rolodex. So I mean, that that might be easy for them to do. I want to go back to your trilateral URL talks there that you're mentioning with Canada and Mexico, new president coming to Mexico, and there's always the emphasis. It changes with new administration's. One thing I've heard is environmental issues. Is there anything you've heard about trade, or something else we need to be paying attention to when it comes to Mexico?

[Stevermer]  You know, our conversations are really focused on animal health and what we're doing to prevent diseases with ASF. Being in the Dominican Republic and Haiti. I mean, we have some conversations there. We talked about the things that they're doing in terms of disease prevention, and monitoring their borders, and then discuss what we're doing. You know, there's a little bit of political talk, I think the individual that was elected as the same political party is AMLO. So I, you know, there's some speculation and may not be some big changes right away. But I think all of us look, when I say all of us, I think it's Canada, Mexico, and the US. I mean, when we look at, at politics, and especially the activists, because there's activists in every country, we know that we will face more pressures, whether it's environmental, or or social pressures from those individuals that an activist organizations that aren't there against me production.

[Yeager]  As we close here, Lori, you've mentioned health and safety a number of times you've talked about trade, those are issues one and two, are they want 1A and 1B for you next year?

[Stevermer]  I would say, yeah, one, one or two, one a two, it's I mean, they're, they're both very important. I think, given the moment, they may change. You know, at any other time, there could be something else that crops up, but I think those are the ones that we're continually focused on, I would add the regulatory aspect with Prop 12. And the farm bill that wins between those three, they're probably the biggest three that we're working on right now. And continue to focus on. And then others will, you know, there's the environment that we're always keeping an eye on to so, you know, Brian will challenge us, like, how many priorities Can I focus on? Can I have the staff focus on because they're all important, right. But I think at any one time, we're always assessing and prioritizing and being able to move quickly. So if something comes up, and animal health, we put our resources there if there's some new EPA regulation or challenge, you know, we've got a good team that's already in place that we can focus on there. And so that's, that's something that we've been told we need to do. And we're really focused on doing that as an organization, how do we be nimble? And how do we be proactive so we continue to address the right issues at the right time.

[Yeager]  And our issue is, we're done. Thank you so much, Lori, good to see you. Appreciate the time.

[Stevermer]  Thank you very much. Happy to be here.

[Yeager]  The MToM Show podcast is executive produced by David Miller. My name is Paul Yeager, I'm your producer and editor and host of this episode. Our audio engineering staff is Sean Ingrassia , David Feingold and Kevin Rivers. Production supervision or supervisor however you want to call it is done by Chad Aubrey. New episodes come out each and every Tuesday. My thanks to those of you who watch each and every week and if you don't hit subscribe. We'll see you next time. Bye bye