(AV17997) William K. Deal Endowed Leadership Lecture

good evening welcome to the 2013 William
K Diehl endowed Leadership lecture this lecture was created to provide a venue
to prepare to prepare future leaders and innovators in agriculture
I’m windy winter Steen I serve as the Dean of the College of Agriculture and
life sciences William Diehl received a degree in agricultural education from
Iowa State in 1958 after a brief teaching career and military service he
went on to farm near Bagley Iowa for over 40 years
today mr. dill is a resident and active philanthropist in Panora mr. dill is
with us this evening with his wife Judy and his daughters Tammy and Cindy
they’re sitting in the front row and they’re going to wave for us could we
have a round of applause for the Dale family our speaker for the evening is
dr. Howard Hill dr. hill is president-elect of the National Pork
Producers Council and strategic counsel to Iowa select farms a native of
California dr. hill earned a doctorate of veterinary medicine from the
University of California at Davis here and a master’s degree in doctorate in
veterinary microbiology here at Iowa State University for 20 years dr. Hill
led veterinary microbiology at Iowa State’s veterinary diagnostic laboratory
during that time he served as an industry leader in the eradication of
pseudo rabies he has been with Iowa select farms since 2000 when he joined
the company as director of production he has also served as chief operating
officer and director of animal well-being for the Iowa based company
Iowa select is the state’s largest pork producer with more than 900 employees in
43 counties in 2011 dr. hill was one of nine veterinarians appointed to serve on
the US Department of Agriculture’s Advisory Committee on animal health
throughout his career dr. hill has been involved in the story
County Pork Producers ISM and is on the board of directors of the Iowa Pork
Producers Association he is past president of the American Association of
swine veterinarians and is involved with state and national veterinary medical
associations dr. hill is also an active farmer his production business H&K
Enterprises includes hogs and cattle together with his son he raises corn
soybeans and alfalfa please help me in welcoming dr. Howard Hill thank you dr.
winter Steen am i loud enough okay before I get started I want to
acknowledge some special people here my family’s here my wife Nancy my best
friend my son Eric and his wife Shan my brother Darrel and I also want to
recognize we’re talking about leadership and mentoring tonight among other things
and I also want to acknowledge dr. Seaton who was my mentor for 20 years in
the diagnostic lab as the director of the diagnostic lab I have many other
friends in here and I appreciate everybody coming but if I tried to
acknowledge everybody we’d be here all night so I want to thank the the Diehl
family mr. deal we I appreciate the opportunity to give this lecture and
what you’ve done for Iowa State we appreciate that a lot so so when I asked
what they wanted to want me to talk about they said what you can really talk
about most anything and I asked for some information of the deal family and you
know mr. deal has been interested all his life and technology and leader
ship and so I am NOT an expert on leadership so this is not going to be a
lecture a whole lecture on leadership we will talk a little bit about leadership
but what I have done is I’ve selected a few people in the industry and it was
very difficult to do to pick out people that you know you where do you start and
where do you stop but what I tried to do is is identify people that I knew very
well that helped me in my career and had an impact on the pork industry for into
the well into the future and I think we’ll you’ll see that as we go along so
we’ll talk about about five different individuals and then I do want to talk
about leadership and I’m I’m glad to see as many students that are here because
those comments will be directed primarily at you because all the gray
hairs in here they’ve there’s no chance for them so and then I want to spend a
little bit of time kind of celebrating pork production in the United States and
particularly in Iowa and talk about the the advancements and the progress that
we’ve made I’ve got some information over the last 50 years that the pork
producers the the National Pork Producers Council has provided and then
I’ve got some information more precise the last five years which I think you’ll
find very interesting and then I’ll talk a little bit about the future of the
pork industry and and where I think it’s going and what the potential is so the
first person I’ll talk about is is dr. or ism mr. Randy stacker randy was from
Kansas he started out in the in the banking business and the other thing
that I didn’t mention is my bankers here too so it really makes me nervous when
my banker shows up and there’s a policeman back there too so we’ll try to
keep it sane so Randy his career started really in
Indiana with Charlie Yeager and those have been in the industry a long time
probably remember the name of Yeager and Sullivan they were
probably one of the largest or they were though I think the largest supplier of
feeder pigs at one time brokering feeder pigs they at one time they had 60,000
pigs on feed which back in those days that was a lot of pigs to have on feed
because of the variant of variability of those pigs the health and the the growth
and all that sort of thing they they wanted to get more consistent product
and so they built their first South farm and Randy tells the story that he had
some visitors come to Purdue University and they wanted to go on to a farm from
they were from England and they gave him a tour and at the end of the tour this
Englishman said well you really don’t know much about pig production do you
which took him back a little bit and this gentleman invited him to come over
to England so Randy put a team together and went over there for three weeks and
I think it’s interesting what he said goal was to visit the goal was to visit
enough different farms to give a common threat of success he didn’t want to just
go visit farms he wanted to find farms that were successful so in 1974 they
built a 1200 sow farm and then you can see here on the slide he became the the
general manager for pea I see through that relationship he he met Wendell
Murphy Murphy family farms which is now part of Smithfield who also talked about
and grew that business and Randy was a driving force behind that grew that
business from 17,000 sales up to three hundred and thirty thousand sales and
then he became the general manager for Murphy Brown now there are several
things that well I think will become clear here in a minute but those of you
that know him he’s a real motivator of people and I can think I can best relay
his his ability to do that by some of the quotes
find people with good character recruit and develop a team of leaders and
managers sometimes you have to get out of your industry to find creative
solutions and that’s exactly what he did he he went to the poultry industry look
what they were doing he he would go to any source he could to find new
technology and during that period of time there was a lot of controversy
about small versus big as the industry was consolidating and his quote is I
tell people they are bigger because they were better first not they’re not better
because they’re bigger it could be somewhat controversial know yourself
first if you don’t do anything else recognize that you are the greatest
asset you will ever manage in your life I think that’s that is a powerful
statement especially for you students then commit yourself to something that
you have a great deal of opportunity to be successful at don’t fret about your
so-called weaknesses you can surround yourself with people who have those
strengths if you choose to work in under the organization pick your boss be
selective do not be selected again a powerful statement early mentors have a
disproportional impact on your life and I’ve told veteran students the first job
they take when they get out of veterinary school would be the most
important job they take because it’ll set their sail for the rest of their
career Wendell Murphy this this is 1997 this
was not a particular complimentary article and he actually didn’t like it
because they called him a million a billionaire which he said he wasn’t a
billionaire I don’t know if he was or not but the important thing here is that
mr. Murphy started out as a school teacher and and grew his business to
what it was what it is today as a school teacher he he saved three
thousand dollars and he wanted to buy the register mil I don’t know if the
mills still there when I worked there the mill still stood and his dad was a
tobacco farmer and he he begged his dad to loan him ten thousand dollars so he
could buy this mill and manufacture feed and his dad wouldn’t loan it to him kept
bugging him bugging finally he said he would but the condition was that he had
to keep his day job so he’d make feet at night and deliver feet at night in 1969
he had a cholera outbreak and he was completely wiped out and so he to get
back into the business he said he was providing feed to producers and he
noticed that the producers would never pay him until they sold the pigs so he
was financing so he said I might as well have these folks contracts so he would
give him the fencing the waters the feeders the pigs and they would raise
the pigs and he’d get a dot he they would pay them a dollar when those pigs
were marketed that was really the first large-scale contracting that was going
on and that became popular in the in the southeast not a very popular concept in
the Midwest for a long time course today we have a lot of contract production the
other thing then was that during this time and they were starting to build all
these farms three site production became a system which I’m going to talk about
here and the gentlemen that really is primarily responsible for three site
production is actually in the audience Hank dr. Hank Harris over here dr.
Harris is is famous for more than three site production he he and Bob block dr.
Glock was on faculty here with with dr. Harris and they they worked on a disease
called swine dysentery or bloody scours and found the causative agent which at
that time was called Treponema high dysentery oh we know it is as be high or
brick break aspire higher dysentery Oh today Hank worked for P I see
and in their health management program and he had a colleague in England that
also worked with P I see they had these these high value multiplication farms
and nucleus farms and if they’d get a disease they would have to depopulate
them and the only way they could repopulate them with real clean stock
was to do cesarean sections and raise those pigs away from the the dams that’s
a very very expensive process that process and so working with dr. dr.
Alexander they developed a program called medicated early weaning where
they would medicate the sows vaccinate the sows medicate the pigs but remove
the pigs from the sow because we know that when the when the
longer that pig stays with the the dam the more disease more disease agents
they pick up and so they recognized that removing these pigs from from the dam at
an early age would increase the health especially if they were medicated well
that led them then into a production system that we know today is three site
production and I’ll show a slide here that kind of shows how this works if you
look up here this is kind of traditional one site operations this is what we had
in Iowa and the Midwest all through the up until the 80s and 90s so yeah you’d
have your breeding gestation fair owing all in one site those pigs would go to a
nursery again that was on the same site and then finishing on the same site so
you’ve got a lot of transfer of disease from those sows those pigs when they’re
born and they suckle they get a high level of what we call maternal antibody
but the longer they stay with that South the more chance they are to pick up
disease agents so by breaking that cycle using the three site method we remove
those pigs take them to a nursery separated from this sow
and then they stay there until they’re about 40 to 50 pounds then they were
moved to a finisher and finished out so you had three three breaks here and all
these were all in all out wash disinfected so we really improve the
health of those pigs later on and this is the most popular system today in the
Midwest is to use to site production somebody figured out that if you would
wean those pigs at the same time and put them into a regular finishing barn with
different little different feeders comfort mats and zone heating you could
keep those pigs in that finishing facility all the way to market did
several advantages one is you have a lot more air space so they were healthier
the other thing is you don’t have to move the pigs so you don’t have the
stress of moving the pigs in this and the stress on the people and the expense
so that’d be that’s the system that most people are using today I’ll also say
that dr. Harris has another claim to fame
he’s owner of Harris vaccines which is here in Ames and he’s got a very unique
way of producing vaccines where it really doesn’t need that the infectious
agent he can use the genetic material and develop vaccines the advantages it
can be done very very quickly mr. Hansen is owner of Iowa select farms and he’s
my boss for 13 years quickly I’ll just tell you one little story he uh he
didn’t go to college he got married out of high school they bought three sales
grew that 250 sales and his wife tells the story that she was the one letting
the sales in and out twice a day which got to be a big chore and he was selling
equipment and she complained about this all this hard work and he saw this ad
for elevated farrowing crates so he started making those kind of in their
garage almost and he put an ad in a in the newspaper they were going to have a
open house they had this in their garage thinking and a few people might show up
people start showing up at 8 o’clock in the morning this is back in the 70s now
8 o’clock in the morning till 11 o’clock at night taking all kinds of orders they
had no financing so Deb Hanson says well they they knew they had to get financing
so they went to the local bank and followed by named a dick Miller was
there and they had a business plan laid out their business plan and dick says
well you know I think I think you’ve got a good plan here I might be interested
in helping you and they had agreed before they went there that they were
gonna ask for $15,000 which is a lot of money in that time in those times and
mr. Miller said well Jeff how much do you need and he just blurted it out
fifty thousand dollars and he still has a scar on his leg we’re dead kicked him
under the table so the reason I use him as an example though is there’s
something unique about him that I didn’t mention about the other people and that
is the fact that he never went to college so even though you students are
working hard to get degrees and degrees are important it’s it’s an example of
where hard work persistence having a vision pays off and it probably another
example of continuous lifelong learning I mean I I know that you can’t wait
until you graduate because you think no more tests you’ll continually have tests
in your life so they also and I’m very proud of the fact that been associated
with with the Hansen’s they have the Hansen foundation started that in 2006
they they raised about a half a million dollars a year they go a lot of that
money goes for hunger relief in Iowa they support Iowa military families they
support the blank hospital for children with childhood cancer and the new
hospital in Iowa Falls they donated 100 or 1.5 million and those of you that
see nor know about the student egg learning system they were contributors
to that and that’ll be a great asset for the College of Agriculture at Iowa State I’m gonna go quickly here
this is Jan sky diamond another example he’s he he’s mainly he was he’s a
practitioner but he’s also an entrepreneur and those are the companies
that he started in the and I asked Jan to send me some slides they do embryo
transfers trance trance OVA I imagine some of you are familiar with that the
thing that I they’re doing Twitter they’re doing cloning now very high tech
stuff but the real reason that I wanted to talk about him is this slide here the
value these are his words now the value people treat internal and external
customers like you would want to be treated yourself fundamental values
integrity and honesty open communication win-win relationship and we’ll talk more
about that in a minute so leadership if I if I asked 10 of you to identify
leaders if I’d probably get 10 different answers but I understand there’s some
students that are taking a literate leadership course right now or is this
this group here so you must have a good definition of leadership anybody want to
share it would you agree that would you agree with the top point that leadership
is getting people to follow right leadership is influence each of us will
be influenced by thousands of people in our lifetime and we will influence
thousands of people in our lifetime sometimes we get confused what’s a
leader and not everybody is gonna be a leader not everybody wants to be a
leader and I’m not saying everybody has to be a leader but sometimes we confuse
leaders and managers and managers are those that implement programs and that
sort of thing leaders are those that provide the vision and motivate people
and we’ll talk about that in a little more detail so
how many of you are students are familiar with John C Maxwell anybody
he’s a he’s a pastor writes a lot and gives a lot of lectures on leadership
and he talks about the five levels of leadership first level being position or
right so you know my example of that is the individual that owns a business and
appoints one of their children in a in a responsible position they may not have
any leadership skills at all but people have to respond to them because they’re
the boss that’s that’s not leadership permission and relationship people
follow them because they want to okay that person has shown that they can lead
and people will respond to it the third and these are progressive as you develop
your leadership skills production results these are where you’re building
a team and people want to work in a team situation so people follow because of
what you have done for the organization the third or the fourth is people
development when when you know when your leader or your boss becomes interested
in developing your career it makes you want to do more for for them so people
follow because of what you have done for them and he says that the fifth category
is personhood people follow because of who you are and and what you represent
and he says very few people reach that level of of leadership that’s kind of
the ultimate if you will so one of the things and that leaders have to do is to
use our time efficiently one of the most most efficient times one of the times
that we’re the most efficient is probably when you get ready to go on
vacation what are you doing you get ready to go on vacation Dermot says yeah you get everything off
your desk you you mow the lawn you you you do everything at work and you get
everything arranged you do things that you’ve had to do you should have done
for a long time but you become very efficient you get that done but
efficiency is is doesn’t mean that you’re being effective okay it just
means you’re getting things accomplished but they may not they may not be all
that you may not be all that effective so one way to think about it as
efficiency the foundation for survival you have to do it but effectiveness is
the foundation for success setting priorities how many of us have problems
with setting priorities I think we all probably do to some extent my in my case
if I’ve got a list of things to do which ones do I do first the ones I like to do
not necessarily the ones that are the most important so again mr. Maxwell he
defines them as high importance high urgency you tackle those first get them
done because those are important high importance low urgency set a deadline
they don’t have to be done immediately but set a deadline to get them done make
sure they get it done because they are important low importance and high
urgency you reduce your personal time if you can delegate it okay and the fourth
low importance low urgency maybe you don’t do it at all okay maybe you give
it to somebody else to do so good leaders have integrity I want to talk
about integrity for a minute we’ve got I’ve got examples here of leaders
everybody knows of Hitler Jim Jones students you all know who Jim Jones was
I see a few shaking her head he’s responsible I think that’s where the
term drink the kool-aid came from he’s responsible for killing over 990 people
and murdering five people one a congressman Martin Luther King Winston
Churchill Dwight Eisenhower you could name
a lot of leaders in our in our lifetime or that went before us but not all these
are great leaders obviously some of them have integrity some of them didn’t
obviously Jim Jones and Hillard didn’t have much in the way of integrity
integrity is a concept of consistency of action values principles expectations
and outcomes one’s words and deeds match you’re not a hypocrite what you say is
what you do and when we when we do our animal well-being training we tell
people we want you to handle animals the same way when somebody’s watching as
when nobody’s watching because if you do it one way one time and you think
somebody’s not watching you know you’re that’s not what we want we want do the
right thing all the time leaders must be consistent in action and word to develop
trust loyalty those they lead and I will tell the students you will be tested let
me read a couple of quotes I think this describes it pretty well Billy Graham
said integrity is the glue that holds our way of life together we must
consistently strive to keep our integrity intact when wealth is lost
nothing is lost when health is lost something is lost when character is lost
all is lost another quote that I think sums it up pretty well is from President
Eisenhower in order to be a leader a man must have followers and to have
followers a man must have their have their confidence hence the supreme
quality for a leader is unquestionable integrity without it no real success is
possible no matter whether it’s on the in a section gang or on the football
field or in the army or in the office if a man’s associates find find him guilty
of being phony if they find that he lacks forthright integrity he will fail
his tech his his teachings and his actions must square with each other
the first great need there for his integrity and high purpose okay now what
I’d like to do next is to talk about what’s what’s changed in in the swine
industry with all this leadership that we’ve talked about FAO and I’m sure
you’ve seen this quoted time and time again
FAO says the Food and Agriculture Organization says that by 2050 we’ll
have 9 billion people have less than 7 billion today we’ll have 9 billion
people on the planet food production is going to have to increase by 40% we
won’t do that by discovering more land that we can plant we’re not we’re not
going to be taking anymore Amazon and and deforesting it and putting corn
fields and bean fields there that is that stop that’s over with so technology
is what’s going to drive the the improvement in food or the increase in
food production so these are these are some projects that that we’ve had going
on at the at the pork board this is a study over the last 50 years
comparing the productivity and the sustainability of pork production so a
few facts and figures here hog hogs marketed during this period of time and
this is a 59 to 2009 I believe is this data market increased 29% the breeding
herd decreased 39% so we’re producing 20 29 percent more pigs with 39% less sales
over 2 times the carcass weight produced per cell per year so another perspective
here in 1959 we produced pork producers produced 12 point 1 billion
pounds of pork 19 2009 they doubled that 20 20 2.8 billion pounds so when we talk
about sustainability what a sustainability mean it doesn’t doesn’t
make sense for us to to develop a system that’s not sustainable
first if to be sustainable it has to be economically viable
nobody’s gonna stay in business if they can’t make money it’s got to be
environmentally sustainable and third it has to be socially acceptable and of
course that is a dynamic thing the social what what the public expects of
us is is not a static value it just keeps changing all the time so the four
pillars of sustainability that the pork boards worked on is the carbon footprint
water footprint air footprint and land footprint so I’ll give you some figures
on on this on the in the international world were we’re measuring we’re
measuring sustainability a lot of times based on greenhouse gases I was just in
Paris last week at a sustainability meeting and and one person pointed out
that that’s probably not it is one criteria but it’s not the only criteria
to be used mainly because you’ve got such a variety of different systems
depending on where you are in the world and some are producing a lot more
greenhouse gases than others but the important thing here is that the swine
industry only produces about one third of 1% of the greenhouse gases and if you
add all of livestock together it’s about 3% of all the greenhouse
gases most of the greenhouse gases and and livestock comes of course from the
bovine four from the room and gas so after all these calculations they
found that over the last 50 years that we’ve had a 78 percent reduction in in
land use a 41 percent reduction in water and a 35 percent reduction in the carbon
footprint and again this is in the face of producing almost twice as much pork
as we did 50 years ago so just to summarize that hogs marketed 29 percent
breeding herd decreased 39 percent twice as much pork the the land when when they
do these life site lifecycle analysis it’s not just looking at the pork
production it’s also looking at what pork production uses so this is also
taking into consideration the improvements that we’ve made in in crop
production so it would be corn soybeans and and that sort of thing so we’ve got
this tremendous story to tell and something that we should celebrate this
is a little bit more up-to-date data now are in Hostetler published this just
recently in the Journal of swine health and production 2013 this was data from
2005 to 2010 and you know you hear people quote that pork production is is
increasing by 2% a year or 3% a year with the same number of cells but
getting that data has been difficult so this was some very good work I’m
actually not going to show you this work I’m going to show you some work that was
that’s related to this the folks dr. Stadler at Iowa State here and his grad
student took that data they’ve updated it now and you can see from the title
there they’re looking at 2007 to 2012 instead of 2005 to 2010 and we’ll look
at some of this data and I hope you can see this so
one thing that’s the point out here is in 2007 they were looking at 29
companies now when it’s a company I may not that could be an individual pork
producer 849 farms but as they have progressed you can see that we’re we’re
getting a lot better data set here we’re getting more more companies or more
producers and a lot more farms so the data just gets more powerful as we go so
these are some of the KPIs or the key productive indicators that they looked
at pigs made it for sale per year total barn stillborns number born live number
weaned pre winning mortality weaning weight we nade the nursery nursery
mortality days – in the nursery and feed conversion same thing in in finishers so
let’s look at some of this data so in this case you can see that that
mortality has taken a real turn for the better almost better than two pigs
percent percent less and I think everybody that’s in pork production are
associated with it knows that we continue to raise that that that market
weight you can see we’ve gone in in five years here from 260 pounds to 271 pounds
in 2011 and we dropped off a little bit here why is that we got some production
students here it might have something to do with feed cost
nobody wanted to feed that expensive feed any longer than they had to so now
now it’s it will probably see those weights come back up as feed costs have
come down average daily gain that’s a huge huge cost benefit one tenth of a
pound is is absolutely huge that’s average daily gain conversion is about
four four hundreds we continually make better use of our feed stuffs that
figure is can be little misleading when you’re comparing
feed efficiency because it doesn’t take into consideration differences in in
diets so as you get more dense diets higher calorie diets your feed
efficiency is going to get better but at least we’ve got enough data here that
you sure see a trend this is weaned to finish again better mortality higher
higher weights not a lot of difference in gain feed conversion it hasn’t
changed much in wean to finish nurseries probably one of the most interesting
things here’s some work that was done by dr. Roger main when he was a grad
student at Kansas State University really changed how we think about
weaning age he’s now the director the diagnostic lab here at Iowa State but
the work that he did showed that if you weaned later your reproductive
performance was much better because that sow had it had time to recover and also
the diets that you fed those pigs because they’re a little bit bigger were
less expensive and your mortality was better and so we we had a trend for a
long time to go younger and younger and younger people got down weaning pigs as
low as 10 days now the trend is the other way in Europe they have laws that
say they have to be 28 days or 25 days or whatever we don’t we don’t have any
law like that but the law of economics has moved that age up South Farms
probably the most significant thing here is is litter size and we can thank the
geneticist for that but also for production practices better AI
techniques we have sow farms now that will have 14 born live or over 14 boy
live there are 14 total born with 13 born live and will be weaning
and a half twelve pigs and you can see here that we’re sort of weaning number
weaned I think we’ve got about a point eight increase if you multiply 0.8 times
the five five point eight million pigs that’s about five million pigs a year in
five years I think I’m gonna skip through these because I think I’ve
summarized those already so let’s look at let’s look at the growth potential
then of the US pork industry domestic demand this is a one of our consultants
is is doctor dr. Steve Meyer he’s a AG economist he owns Paragon economics and he is monitors all this stuff for us on
a regular basis year over a year our domestic demand based on real per capita
expenditure it’s not based on tonnes or anything like that that so that’s a
reflection of the increased cost of meat but also the increase in quantity it
combines both of those year-over-year 6% increase year-to-date two point five
percent and his comment here is beef and chicken prices are helpful we all know
what’s happened we’ve got the lowest beef herd in 50 years or so and beef
prices are high chicken is actually more expensive because of some of the things
that some of the fast food restaurants have done Kentucky Fried Chicken with
their their boneless they they’re buying bigger chickens and they’re boning it
now so that that the price of chicken has gone up so that that makes pork a
better buy comparatively speaking in the super mark
about three weeks ago Heidi had boneless loins for a dollar 77 you can’t buy
better better value of protein so exports tremendous potential in 2012 we
increased our our exports to about 27% so about one out of every four pigs we
marketed now we don’t market a whole pig and one of the advantages of trade is
that we can trade things that aren’t as valuable to us in our market as they
might be in another market so if you go to Southeast Asia you’re gonna have
chicken feet ears face tails and internal organs about about three
percent of that twenty seven percent is what we call variety meats all the
things that are not the muscle meat and that has tremendous value back to the
Packer and that in turn back to the producer some of the big things on the
horizon are the free trade agreements that we’ve we’ve negotiated the
trans-pacific partnership and the transatlantic trade investment was an
investment partnership that’s the the trade between the EU and the United
States and China of course is a huge potential so food inflation is a major
concern in in China there’s a tremendous growth of the middle class any time you
have an increase in the middle class they they want more protein in their
diet I’m now paraphrasing from dr. Dermot Hayes here
he’s our he’s another one of our consultants kind of the god of of export
data and I remember probably five six years ago dr. Hayes was saying the
Chinese are going to try to build their swine industry but eventually they’ll
give up because it’s so much more expensive for them to import the grain
to feed those pigs and they’ll eventually get around to importing the
pork which is starting to happen u.s. is the lowest cost producer dr. Hayes has
said that one percent of China’s pork supply is worth 1 billion dollars to us
to the u.s. pork industry and also that adds about 6,000 jobs am I am i close on
that six thousand jobs so I also have to give credit to my friend Jo Kearns here
for this this concept of what what’s going to happen with the Chinese back in
the late 90s the Chinese were trying to be self-sufficient in soybean production
and you you here today that soybean producers know that one one out of every
four rows is going to get shipped to China and you can see what’s happened to
their their imports of soy I hope this shows up this is this line
here is their exports they used to be an exporter of corn okay they were one of
our competitors this was probably bad crop or something I don’t know but look
what’s happened over the last five years here steady pretty steady growth in the
importation of corn into China they they don’t have land they’ve run out of land
China is a big big country but there’s something called the Gobi Desert where
nobody lives and they can’t grow anything out there and they’ve got a
huge population you know the Chinese government definitely doesn’t want 1.3
billion people being mad at them for not having enough food so food security is
very very important to them pork is the the meat of choice if
look blue is the is is pork and you look at any any country in Southeast Asia and
pork is going to be the primary primary meat Hong Kong look at this there’s
another one Taiwan so you say well why why why can’t
the Chinese produce more pork because I’m not very efficient even though
they’ve modernized their pork production using basically American technology they
haven’t been able to really increase their their production per Sal this is
continental grains data and you can see that over the last what 1 2 3 4 5 6 7 8
years they really haven’t changed their overall pigs per cell per year a lot of
the production is still small herds backyard hurts family family-owned
operations so this is a slide that our trade guru at MPC likes to show and it
shows what what the trend is with exports and it’s and a lot of that goes
to the credit of the free trade agreements that we’ve had so NAFTA North
American Free Trade Agreement that’s the agreement between the US Canada and
Mexico and I’ll show you a slide here in a minute to show what the impact of
Mexico exports are to us we’ve got Russia Russia’s a bad player
when it comes to international trade I’ll I’ll show you why here in a minute
you know and just recently we negotiated the last three here Korea Colombia and
Panama and when you negotiate these these free trade agreements the the X
the tariffs don’t go away immediately but they they eventually go to nothing
and we’ve never negotiated a free trade agreement where pork is involved where
we didn’t eventually get to as zero tariffs and that’s what we want in
the TPP and the TTIP it’s gonna be a real challenge with maybe not so much
with TTP but definitely with with TTIP this is a busy slide but I just want to
show you this is this is the exports to Japan and this purple line here is
exports to Mexico and I said Mexico is our largest volume it doesn’t look like
it this is on volume but this is muscle meat it doesn’t include the variety
meats when you add the variety meats Mexico is our largest volume Japan is
our largest value and Canada of course is right in here this this light blue or
no Canada is excuse me this purple okay the the red here is
Korea and this spike right here we were shipping a lot of pork to Korea anybody
remember what happened back in what was it 2011 these students they had a
disease called foot and mouth and so they had to eliminate about 25% of their
herd now they’ve regained that and so they’re their imports temporarily or
down but we think that that’ll still be a good market for us here’s what I was
talking about with Russia Russia Russia is trying to be self-sufficient in pork
and they put a lot of sanitary phytosanitary roadblocks and in in our
way they’ll delist plants they’re not a very trustworthy partner some some
Packers have told me that if the if the Russians come to them and want to buy
meat they’ll sell meat but they’re not interested in in trying to really push
that because they just can’t you can’t trust them as a loyal trader I think the the important point here I’m
not going to go through all this but the important point is that as we negotiate
these trade agreements we want to make sure that all this the sanitary
phytosanitary issues are taken off the board and that the tariffs go eventually
go to to zero and what I mean by sanitary phytosanitary things is with
things like Turkana we don’t have truck ina that’s why your mother cooked your
pork chop till it was shoe leather you know everybody thought that she had
to cook pork until it was it was so hard you couldn’t hardly eat it we don’t have
to kinda in our domestic population today our domestic production that might
not be true with some outside produced pork where they still could could
contract turkey no but it’s not it’s not an issue for our mainline pork
production Japan joining the TPP was a game changer I’ve got a list of those 12
countries that are in TPP Australia Brunei Canada Chile Japan Malaysia
Mexico New Zealand Peru Singapore US and Vietnam and if you’ve read the
newspapers recently even China now is maybe talking about joining TPP that
would be huge the TTIP again this is the the the trade agreement between the EU
and the United States there was supposed to be a meeting on the 7th and there’s
something about some government problem I’m not sure what happened but got
cancelled so so in wrapping up here I guess what I’d like
to say to the students is that I’ve had I’ve had veterinary students say well
how did you decide you wanted to do such-and-such in your career and I said
I didn’t decide that I said you know I just took advantages of opportunities as
they became available to me and that’s what I would say to you students you’re
gonna have chances to take a little risk and don’t be afraid to take risk and I’m
gonna quote from a famous philosopher she said do something even if it’s wrong
you ever saying that her saying that that was my mother but this is probably
this probably says it better this poem there was a very curious a very cautious
man who never laughed or played he never risked he never tried he never sang or
prayed and when one day he passed away his insurance was denied for since he
never really lived they claimed he never really died so
thank you very much hi Betsy
hello Betsy freeze successful farming um can you talk about the new swine disease
that has emerged this year and what your thoughts are on that for Iowa yeah
what Betsy’s talking about is a disease called porcine epidemic diarrhea
it’s a corona virus it’s very similar to tge but probably the best description
I’ve heard is that it’s tge on steroids this this virus is more resistant than
tge usually we don’t think about tge being transmitted in the summertime and
this virus has been been spreading from herd to her during the summer we’re very
concerned about what happens when we get into cold weather because viruses
typically survive better in cold damp weather the alarming thing about this is
where did it come from and I got to give credit to the diagnostic lab here at
Iowa State they did a fabulous job of getting this virus this disease
diagnosed they developed a PCR which identifies the virus they quickly
working with the National battery services laboratory identified that it
was PE d PE d PE d is not a new virus in the world it was first identified in
1971 in England it’s fairly endemic in Southeast Asia the the thing that’s
really concerning is that when they when they sequenced the the genetic makeup of
this virus it was ninety nine point six sided 99.5
the same as the Chinese strain that was reported a year before that’s the second
virus that we’ve brought in from China one of the circle viruses was we feel it
was also a Chinese strain the the first outbreaks occurred in four
separate locations one in Indiana one in Ohio two in Iowa the two in Iowa were
geographically separated by many many miles all within the same week so we’re
assuming and we haven’t been able to find quote The Smoking Gun but we’re
assuming that it had to come in with some kind of a common feed stuff or
something that was common we’ve got we’ve got and then still doing
investigations trying to pin that down we’ve got people looking at lots of
ingredients feed premixes all the different ingredients trying to identify
that the the situation right now today in Iowa is that it’s pretty quiet we
haven’t had a lot of outbreaks recently but North Carolina is really getting
hammered our estimate right now is that we’re probably between April and today
we’re probably approaching 500,000 sows if you do the math on that you’re you
you lose pigs I mean it’s a it’s practically a hundred percent mortality
in the feral house for about four to five weeks so you do the math your
million would we do a million million to I think that’s what we calculated if you
use 25 pigs per cell per year on 500,000 sows so it’s it is a significant problem
people ask about the vaccine I mentioned dr. Harris has a method where he can
produce vaccine very fast he has a vaccine that’s in trial and we were
waiting for some results to see how effective it against it is in challenge
studies we hope that is a tool we can use other questions about that that’s a
year anybody else and we’re not getting any numbers we
don’t even know what the price of hogs is yeah yeah n PPC I mentioned Steve
Meyer n PPC is working with Steve Meyer to develop a private system of what the
market actually is and that’s supposed to maybe if it goes live it’s supposed
to go live maybe this week if it does go live as soon as the USDA marketing
service comes back online it’ll go dark though so do you know anything about
that German or John either what do you know okay right now it’s I mean people
don’t even know what the price of hogs are you know now the other thing we’re
doing is we have we’ve been negotiating with a USDA getting service saying that
these are essential and you know they if you’ve noticed they’ve brought a lot of
people in the federal government back on the payroll and they’re the first
comment was that well there’s no human health issue or national security
security issue are you believe that’s probably true but when you have the
federal government providing that essential service and it disappears you
can’t do business thank you

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