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The turkey industry faced a number of economic, regulatory, and legislative challenges in 2012, but we pulled together as an industry andworking through the National Turkey Federation (NTF)met those challenges in a way that leaves the industry well positioned to build a bright, prosperous future.
Foreword
As the national advocate for the turkey industry, NTF maintained its strong focus on food safety issues and the misguided federal policies that contribute to rising feed costs, and took other initiatives that helped the industry deal with 2012s industry downturn. Major initiatives and milestones for the year included In December 2012, the U.S. Department of Agriculture (USDA) approved a request from NTF and announced it would purchase of approximately $35 million worth of turkey products for federal food nutrition assistance programs, including food banks. NTF worked tirelessly in 2012 to reform the Environmental Protection Agencys (EPA) Renewable Fuel Standard (RFS). In collaboration with its members, NTF submitted more than 1,500 comments to the EPA requesting a full or substantial RFS waiver, citing severe economic harm to the livestock and poultry industry and the nation as a whole. EPA denied the waiverin the face of a crippling droughtproving conclusively that the RFS waiver process is broken and setting the stage for renewed action in 2013. NTF played a leading role in pushing for the New Poultry Inspection System, which was proposed by USDA early in 2012 and which appears on track for implementation in 2013. NTFs ranks grew to more than 300 members in 2012meeting a major milestone in the 200812 Strategic Planand giving the federation the strongest united voice possible in grassroots and advocacy efforts. NTFs accomplishments are directly attributable to its members and staff, who met 2012s challenges and kept a watchful eye on the future by developing a new five-year Strategic Plan that ensures NTF remains the national advocate for the turkey industry and a leader in Washington on a wide range of issues affecting the meat and poultry industry. Our members remain deeply committed to growing our industry in the safest, most responsible, and cost-effective way possible. We look forward to a bountiful 2013.
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Introduction
The National Turkey Federation (NTF) is the national advocate for all segments of the turkey industryproviding services and conducting activities aimed at increasing demand for its members products by protecting and enhancing their ability to profitably provide wholesome, high-quality, nutritious products. NTF members include growers, processors, hatchers, breeders, distributors, allied services. and state associations. Based in Washington, DC, NTFs services focus on four main areas Legislative Affairs Member Services Scientific/Regulatory Affairs Communications & Marketing. This report details NTFs progress and accomplishments on behalf of the turkey industry in each of these areas for 2012.
Legislative Affairs
The drought of 2012 may prove to be a turning point in the effort to substantially reform the Environmental Protection Agencys (EPA) Renewable Fuel Standard (RFS), which mandates increased ethanol production. The combination of severe drought and the RFS stringent requirements created a feed availability crisis in 2012. Corn is the primary ingredient in turkey feed andas corn prices roseso did feed costs. This chain of events has led to higher food prices overall. NTFs legislative team first recognized the long-term ramifications of the RFS more than a decade ago and continued striving throughout 2012 to illuminate the flawed policies of corn ethanol. That effort prompted nine governors, 156 Members of the House of Representatives, and 26 Senators to request a waiver from the RFS. The EPA formally considered waiver petitions from the governors of Arkansas and North Carolina, and NTF members generated an impressive 1,500 comments supporting the waiver and submitted them to the agency. Disappointingly, the EPA chose not to grant the waiver request, although the outcome was not surprising because the waiver process is written to make it difficult for EPA to grant a waiver. NTF will continue seeking common-sense RFS reform and representing its members concerns before key decisionmakers.
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Small, independent turkey growers need the EPA waiver from the RFS now. This is the only immediate relief for this countrys livestock and poultry producers. We need to stabilize the markets. The reality is, at these volatile, high prices, even the most prudent, cautious farmers can find themselves out of business. - John Burkel, Badger, MN
Estate Tax
Late in 2012, the final legislation passed by the House and Senate to avert the fiscal cliff contained important estate tax relief. NTF staff worked closely with coalition partners to educate Members of Congress about the importance of estate tax relief on the turkey industryespecially to proprietors of family-owned farms. The legislation increases the estate tax from 35 to 40 percent, and preserves the $5 million exemption for individuals and $10 million for married couples. Because estate tax parameters have changed nine times between 2002 and 2012, passage of the bill provides more certainty in the tax code with respect to the estate tax, for the first time in 12 years.
Put simply, ethanol policies have created significantly higher corn prices, tighter supplies, and increased volatility. - Governor Mike Bebee, Arkansas
Agriculture Appropriations
The House Appropriations Committee approved the Fiscal Year 2013 (FY13) Agriculture Appropriations bill, which NTF supported. The legislation included $19.4 billion in discretionary fundinga $365 million reduction from last years level. The bill included a provision that prohibited Grain Inspection, Packers and Stockyards Administration (GIPSA) from spending any money in FY13 to re-promulgate its controversial livestock and poultry marketing rule from 20102011. Furthermore, the bill maintained critical funding for meat, poultry, and egg product inspection and testing activities, and supported implementation of the new poultry inspection system to improve safety and inspection efficiency.
TURPAC
NTF's Political Action Committee (PAC) is one of the largest and most active PACs within the meat and poultry sectors, and raised $201,473, shattering its fundraising goal of $172,500 in 2012. Several states also had record-breaking fundraising results. Iowa, chaired by Ed Garrett and Paul Hill, again set a new single-state record with nearly $80,900 in contributions; North Carolina/South Carolina, chaired by Neal Walsh and John Prestage, saw success in raising $27,235 (bolstered by the states first Tee-Off for TURPAC golf tournament); Ohio, chaired by Dianne Cooper, raised more than $20,700; Indiana, led by Ted Seger, raised an impressive $20,131 in contributions; and John Burkel, TURPAC Chairman and leader of Minnesota/Wisconsin, raised nearly $19,750. TURPAC will continue working with its members in 2013 to educate our congressional leaders about the pressing issues facing the turkey industry.
Pictured here is the Iowa Delegation, leaders in TURPAC fundraising, at the 2012 Annual Convention in Tampa, Fla.
Member Services
Growing the Ranks
NTF achieved its goal of attaining 300 members with assistance from the Membership Committee, the Board of Directors, the Executive Committee, and many other NTF members. At the end of 2012, NTF had 303 Preferred Supplier members48 were new memberssurpassing the goal laid out in the 20072012 Strategic Plan. This success in growing NTFs membership is supplemented by a retention rate of 89 percent, further highlighting the valuable services NTF provides to its active members.
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NTFs 2012 Annual Convention in Tampa was very well attended, with 579 participants. This was the first time Tampa hosted the NTF convention, and the feedback was excellent. In addition, NTF increased sponsorship over the program year.
Coming Events
Leadership Conference July 14-16, 2013 The Liaison Hotel Washington, D.C. 2014 Annual Convention February 12-15, 2014 Disneys Grand Floridian Orlando, Fla.
The Technical and Regulatory (T & R) Committee met four times in 2012, most recently in Atlanta this past October, to continue its work on ensuring USDA regulations are enforced consistently and fairly, and that agency policy is based on sound science. Modernization of Poultry Slaughter Inspection Rule: NTF members and staff worked diligently to ensure the proposed New Poultry Inspection System rule realizes its full potential to enhance the meat and poultry inspection system. NTF prepared detailed comments for the proposed rule, which provides Food Safety and Inspection Service (FSIS) inspectors with increased flexibility to patrol processing plants and heightens the role of scientific oversight to ensure the plant is meeting required food safety performance standards. This new inspection program is expected to enhance food safety while reducing government costs by $85$95 million over three years and to reduce costs to private businesses by a total of $250 million. NTFs comments generally expressed support for this rule, while making suggestions for improvements and highlighting the turkey industrys pro-active efforts to enhance the safety of its products by investing millions of dollars in worker training, technology, and equipment. In addition, NTF worked to correct media reports that mischaracterized the rules intent and to educate Congress about the potential value of the rule. NTF views the proposed rule as the next step in protecting human health through modern, science-based food safety techniques, but stressed that processing plants should have the option of participating in the new system. Hazard Analysis and Critical Control Points (HACCP) Plans: USDA/FSIS intends to reassess establishment of HACCP plans for Salmonella controls. As part of its own ongoing efforts to ensure the safety of its products, NTF members voluntarily started this process in 2011, well before FSIS issued its plans. In addition, NTF submitted comments in response to FSIS request for comments on its document Compliance Guidance: HACCP Systems Validation. While NTF recognized the FSIS revised guidelines clarified the agencys expectations on validation, the comments also noted that additional guidance was still needed on several key issues, including cooking instructions, types of products that need validation, and others. Public Health Information System by FSIS: In January, FSIS initiated the first of several pilot programs to test the industry-access portion of its Public Health Information System (PHIS). As FSIS-Industry liaison, the NTF staff was tasked with compiling a list of volunteer establishments for the pilot program. The first pilot tested several functions of the PHIS and sought feedback from pilot participants. In October, the agency re-launched the pilot with the same participants and added small and very small establishments to retest the system and ensure the resulting changes enacted from the first pilot were valid. The final pilot was launched in December and tested the Web-registration portion of the system. It also featured all new volunteer establishments, including several NTF members. The pilots gave participating establishments a first look at the new industry-access system and will eventually allow early adoption once the new system goes live.
Ground Poultry Seminars: NTF worked with the National Chicken Council and U.S. Poultry and Egg Association to bring together subject matter experts to identify additional ways to further reduce Salmonella in poultry products, particularly ground poultry. This is an extension of the process NTF began in 2011 with its Turkey and Salmonella Summit. Pre-Harvest Information Sought by USDA: In 2012, NTF tracked FSIS' efforts to collect grower and other preharvest information. Most recently, NTF convinced FSIS to stop inspectors from asking processors to provide grower identification during Salmonella sampling. In addition, NTF recommended that if pressed, members should provide information about the birds owner, i.e., the company, not the grower. FSIS Issues Clarification on Mislabeling Non-compliance: This notice initially instructed inspectors to report any non-meat item found in a product, e.g., bone in a boneless product, to the District Office as a mislabeling non-compliance. This specific guidance was a significant issue for many NTF members; therefore, NTF met with FSIS numerous times, provided examples of areas where clarification was needed, and offered several common-sense solutions for consideration. This resulted in the agency issuing a Q & A document that clarified the language surrounding its notice on receiving adulterated product. The turkey industry greatly appreciated the publication of the Q & A document and the FSIS clarification on limiting what it considered in commerce. Outreach to USDA: In 2012, NTF staff regularly conducted outreach meetings with key decisionmakers at USDA and kept them abreast of any efforts undertaken by the turkey industry regarding the safety of its products, improvements made to production processes, and the impact on proposed policies on the industry. NTF also serves as the industry liaison with the agency on behalf of other trade groups and companies.
Exports
In response to our members direction, NTF Scientific and Regulatory Affairs staff identified and analyzed issues affecting turkey exports. With this information in hand, staff worked closely with the USA Poultry & Egg Export Council to ensure it had the necessary information to fully include turkey and turkey products in its efforts to expand overseas markets. The staff also developed working relationships with key international players and supported the extension of the Mexican Tomato Agreement and advocated for inclusion of turkey exports on Australias priority list during the recent Trans-Pacific Partnership.
CVM Activities
NTF submitted comments on three CVM guidance documents, including Guidance #209, which addressed the FDAs approach to the judicious use of medically important antibiotics in food-producing animals, and Draft Guidance #213, which provided recommendations for drug companies to voluntarily shift production claims to therapeutic claims in compliance with Guidance #209. CVM also released the draft text of the Veterinary Feed Directive (VFD), seeking input regarding whether efficiency improvements to the current VFD regulations were necessary. NTF offered conditional support for these initiatives, while strongly challenging FDAs underlying assumption that antibiotic use in food animals contributes to resistance in human medicine. The comments cited topics such as antibiotics related to animal health and well-being and environmental impact, while emphasizing the industrys commitment to using antibiotics safely. Finally, NTF supported the goal of increased oversight by veterinarians but identified the difficulties associated with implementation, especially in rural areas where unique challenges specific to the vertically integrated turkey industry exist. In addition, NTF submitted detailed comments in response to CVMs Advance Notice of Proposed Rulemaking to collect additional antimicrobial drug sales/distribution data.
Human Resources
Equal Employment Opportunity Commission (EEOC) and the U.S. Office of Special Counsel (OSC): What started as a presentation and discussion at the Joint Human Resources Committee meeting in the spring, evolved into a much fuller dialogue with the OSC on how to address immigration status discrimination, document abuse, Americans with Disabilities Act discrimination, processes surrounding questions of eligibility/legality, and extensions owing to a countrys instability. In August, the Joint Committee conducted a webinar with OSC and EEOC members, and held a roundtable discussion after the presentations. Department of Labor (DOL) Withdraws Proposed Rule on Child Agriculture Workers: The DOL withdrew its proposed rule on Child Labor Regulations in response to thousands of comments filed by NTF, other agriculture groups, and farm families across the country. The proposed rule included provisions that defined "parental exemption," which would have dramatically affected rural communities and family-owned farms. USDA Federal Contractors Labor Rule: In response to comments filed by NTF and other agriculture groups, the USDAs Office of Procurement and Property Management withdrew its proposed rule on labor violations and notifications. This rule required federal contractors to report mere allegations of violations for all applicable labor laws not just actual violationsand imposed significant recordkeeping and reporting burdens.
The decision to withdraw this ruleincluding provisions to define the porental examptionwas made in response to thousands of comments expressing concerns about the effects of the proposed rules on small family-owned farms. - Department of Labor Press Release, April 26, 2012
NTF Chairman Steve Williardsen, President Barack Obama, Sasha and Malia Obama, with Cobbler
During the April 2012 Strategic Planning Meeting in Chicago, the members agreed to continue focusing on outreach to retail and foodservice operators and their customers, while placing more emphasis on issues management and integrating marketing into the larger image/communications plan. Core principles for the new program include: The public should be given ample information about turkey to enhance their knowledge of how to best use this nutritious and affordable product, and to appreciate the complex, science-based production and processing practices behind delivering turkey safely and sustainably to consumers.
NTFs members are the associations key partners in this image program. By clearly communicating the scope and strategy of NTFs programs to their constituents, the members become industry ambassadors as they present key messages and share information directly with stakeholders. A key component of the plan should be delivering important information externally and internally about the turkey industry and NTF activities by exploring and deploying available technologies and media such as Twit ter and Facebook.
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Awards
Lifetime Achievement Award: Vance Larsen of Larsen, S & K Turkeys, received NTFs 2012 Lifetime Achievement award for being a leader and innovator in the turkey industry. Larsen served as the NTF chairman in 1986 after decades working in his family-owned turkey business. During his tenure as NTFs chairman, his operation raised more than a quarter of a million turkeys annually, along with 5,000 hogs and 1,700 acres of corn. Larsen also served as president of Midwest Poultry Federation in 1983 and was a longtime force within Minnesotas turkey industry. Pete Hermanson, a past Lifetime Achievement recipient and 1988 NTF chairman, presented Larsen with the award and said, "It was at NTF that Vance created his most lasting legacy in the industry...he had a passion for making NTF Shown here is Vance Larsen, (seated, center) recipient of the NTF and the turkey industry the best organizations possible." Lifetime Achievement Award, with family.
2012 Turkey On the Menu (T.O.M.) Awards: The T.O.M. Awards are given to food service providers who feature innovative turkey dishes on their menus. The categories and recipients for the 2012 T.O.M Awards were: Fast Food: Carls Jr. and Hardees Mid-Scale/Casual Dining: Rams Horn Restaurants Quick Casual: Capriottis Sandwich Shop.
Dick Elmore, vice president of strategic accounts for AdvancePierre Foods and John Koncki, director of research and development for CKE Restaurants, Inc., accepts the T.O.M. Award from Carl Wittenburg and Jim Leighton.
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NTF Online
Social Media: NTF successfully increased its social media presence in 2012 and reached 1,561 followers on Twitter and 924 followers on Facebook. By sharing timely, relevant content, NTF transformed into a valuable news source also known for engaging audiences in meaningful conversation. NTF Website: NTFs website was a valuable resource for consumers throughout the year, and overall, received 29,214,620 visits for 2012. The website was especially popular in November, received more than 11,520,206 visitsnearly 107,000 hits were recorded on Thanksgiving Day alone.
Staffing Changes
NTFs Marketing and Communications Department had a transitional year filled with positive change. NTF welcomed Mary Raguso as the new Vice President of Marketing and Communications. Marys strong background in strategic communications planning and outreach coincided with the new direction being undertaken by NTF. She replaced Sherrie Rosenblatt, who left for another marketing opportunity after 14 years at NTF. Rounding out the team are Peggy Albertson, who joined NTF in 2012 as Public Relations Manager, and Kimmon Williams, who was promoted to Public Relations Coordinator.
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Strategic Planning
When the NTF Executive Committee and other senior industry leaders met in Chicago in April to write a five-year strategic plan for the federation, they wanted to build on the strengths of the existing plan while charting an ambitious new course for the industry. The draft 201317 Strategic Plan that emerged maintains the rigorous measurement standards that were the hallmark of the previous plan, but it also establishes challenging new goals designed to make NTF an even stronger, more effective advocate for the turkey industry. The most striking component of the new plan is its vision for NTFs communications and marketing programs. Although always housed in a single department within the federation, the programs are to be integrated to create a single communications plan designed to promote and protect the image of turkey and the turkey industry. The measurement for success is straightforward: NTF will ensure the industry is fully prepared to manage, immediately and effectively, any attacks against it while also ensuring consumers understand the value of turkey, the responsible way in which turkey is produced, and the issues that could harm the industry. Product promotion/marketing will remain a key component of the plan, although there will be a significant increase in the emphasis on issues management. Other components of the plan, which will be presented to the Board of Directors for their approval at the 2013 Annual Convention, include NTF's Legislative Affairs program will remain tightly focused on the primary challenges to industry profit ability. NTF's Scientific and Regulatory Affairs program will continue to be the meat and poultry industry leader on food safety and animal health issues, while expanding its expertise on other animal welfare matters, environ mental issues, and human resources/worker safety and health programs. NTF will strive to increase net membership to 350 Preferred Supplier Members. Staff will work with members to streamline the Annual Convention, make it easier for members to access all of the information delivered at the convention, and maintain the strong networking opportunities desired by all membership segments. Once the plan has received final approval, it will be available for viewing in the "Members Only" section of the NTF website.
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Looking ahead to 2013, the industry and NTF look forward to fulfilling the following goals to benefit its members
Redoubling our efforts to amend the RFS through common-sense changes that will help our industry continue delivering nutritious, affordable products to consumers Supporting the passage of the Modernization of Poultry Slaughter Inspection Rule Participating in summits on further reducing Salmonella in poultry and enhancing industry safety standards Completing the consolidation and transition of NTFs marketing and communications programs Launching a newly designed, streamlined website to serve its growing online audience Expanding our social media presence to further engage and educate stakeholders.
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Executive Committee
NTF offers its deepest gratitude to those who served on the 2012 Executive Committee. Chairman: Steve Willardsen, Cargill Value Added Meats Vice Chairman: John Burkel, Northern Pride Secretary-Treasurer: Gary Cooper, Cooper Farms Immediate Past Chairman: Richard Huisinga, Wilmar Poultry Company Matt Cook, Norbest Jihad Douglas, Aviagen Turkeys Yubert Envia, Foster Farms Ron Kardel, West Liberty Jim Leighton, Perdue Farms, Inc. Glenn Leitch, Jennie-O Turkey Stores Walter Pelletier, Butterball, LLC Ron Prestage, Prestage Farms, Inc. John Reicks, Hillshire Brands Jeff Sveen, Dakota Provisions Carl Wittenburg, Protein Alliance, Inc.
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Shown here is the 2012 Executive Committee; Back row (Left to right): Ron Prestage, Richard Huisinga, Steve Willardsen, John Reicks, Gary Cooper, Glenn Leitch. Front row (left to right): Walter Pelletier, Yubert Envia, Jihad Douglas, John Burkel, Jim Leighton. Not pictured: Matt Cook, Ron Kardel and Carl Wittenburg
Functional Committees
NTF sincerely thanks the committee chairmen for their generous donation of time and effort in helping the federation achieve its goals. Human Resources Committee Gary Cooper, Cooper Farms Issues Management Committee John Reicks, Hillshire Brands Legislative Committee Steve Willardsen, Cargill Value Added Meats Live Production Committee John Burkel, Northern Pride Marketing and Communications Committee Carl Wittenburg, Protein Alliance, and Jim Leighton, Perdue Farms, Inc. Membership Committee Jihad Douglas, Aviagen Turkeys Purchasing Managers Committee Tony Barnes, Cargill Value Added Meats Technical & Regulatory Committee Lee Johnson, West Liberty Foods, and Michael Rybolt, Hillshire Brands Turkey Health & Welfare Eric Gonder, Goldsboro Milling TURPAC Committee John Burkel, Northern Pride Worker Safety & Health Committee Mike Klun, Cargill Value Added Meats
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National Turkey Federation 1225 New York Avenue, NW, Suite 400 Washington, DC 20005 Telephone: 202-898-1000 Fax: 202-898-0203
www.eatturkey.com