CANADA PORK 2018 ANNUAL REPORT

Transcription

1 CANADA PORK 2018 FOR MORE INFORMATION ABOUT CANADA PORK AND SERVICES CONTACT: CANADA PORK INTERNATIONAL 220 LAURIER AVENUE WEST, SUITE 900 OTTAWA, ONTARIO, CANADA K1P 5Z9 T / E / CPI@CANADAPORK.COM CANADAPORK.COM / VERIFIEDCANADIANPORK.COM ANNUAL REPORT PROUD SUPPLIERS OF VERIFIED CANADIAN PORK TM : NATIONAL PORK MARKETING PROVINCIAL PRODUCER ORGANIZATIONS: BC PORK PRODUCERS, ALBERTA PORK, SASKATCHEWAN PORK DEVELOPMENT BOARD, MANITOBA PORK COUNCIL, ONTARIO PORK PRODUCERS MARKETING BOARD, PORC NB PORK, PORK NOVA SCOTIA, PEI HOG COMMODITY MARKETING BOARD. PARTNERS IN SUCCESS: CANADIAN PORK COUNCIL, CANADIAN MEAT COUNCIL.

2 CANADA PORK NATIONAL PORK MARKETING CANADA PORK IS A NATIONAL ALLIANCE OF INNOVATIVE PORK PRODUCERS AND MEAT PROCESSORS COMMITTED TO SUPPORTING END-USER CUSTOMERS AND CONSUMERS IN THE RETAIL AND FOODSERVICE MARKETPLACE. CANADA PORK MARKET DEVELOPMENT SPECIALISTS FOCUS ON INCREASING DEMAND, MARKET SHARE, PROFIT POTENTIAL AND CATEGORY GROWTH FOR PREMIUM QUALITY CANADIAN PORK. CANADA PORK IS A DIVISION OF CANADA PORK INTERNATIONAL (CPI). CPI IS THE MARKET DEVELOPMENT AND PROMOTION AGENCY FOR THE CANADIAN PORK INDUSTRY REPRESENTING CANADIAN PORK PRODUCERS AND PARTICIPATING MEAT PROCESSING COMPANIES. VISION: Canadian pork is recognized as the highest quality and preferred protein choice in the domestic marketplace. MISSION: Canada Pork National Pork Marketing (NPM) programs will improve competitive position, market share and the prosperity of the Canadian pork industry.

3 MESSAGE FROM THE CHAIR, DICKSON GOULD CANADA PORK COMMITTEE MEMBERS On behalf of the National Pork Marketing committee, I am pleased to present the Canada Pork 2018 Annual Report. The National Pork Marketing Initiative (Canada Pork) was envisioned in 2011, planned in and officially launched in the fall of 2014 as a five-year pilot project to serve the domestic marketplace. Canada Pork was created through a national alliance of participating pork producer organizations and processors committed to supporting a cost effective business to business market development model. I am pleased to announce that the program success exceeded stakeholder expectations and has now become a permanent division of Canada Pork International. The Canadian pork industry has achieved many successes since the creation of the National Pork Marketing Program. Since 2013, Canada Pork has developed and launched a global branding strategy, the pork demand index in Canada has improved, Canadian pork market share in Canada has increased and pork disappearance (consumption) per person in Canada is holding strong against other animal proteins. The Farm-to-Table Quality Assurance value proposition that the Verified Canadian Pork (VCP) brand brings to processors, end-user customers and consumers has become the gold standard in domestic and export marketplaces. The VCP brand promise is built on a platform of Canadian Pork Excellence (on-farm food safety and quality assurance systems) and Canada s world-class in-plant food safety and quality assurance inspection systems. This year, Canada Pork demand building programs and services played an integral role in expanding the tools and resources available to member organizations and supply chain partners. Demand building programs promote unique and innovative solutions to increase demand and consumption within Canada and abroad. In addition, Canada Pork merchandising tools and resources are now being adapted by provincial pork organizations to enhance their own regional consumer marketing initiatives resulting in increased return on investment for all stakeholders. This will be my last annual report for Canada Pork as my term as chair ends this year. I am gratified by the success the Canada Pork team and committee has achieved over the past four years and I d like to take this opportunity to thank the committee, management and support staff. Their leadership, innovation and commitment together with their dedication and passion for the industry is critical to delivering further growth, profitability and value to our stakeholders. Dickson Gould MARY ANN BINNIE Manager, Nutrition & Food Industry Relations Canadian Pork Council JACK DEWIT President, BC Pork Producers Association Board of Directors, Canadian Pork Council for British Columbia DICKSON GOULD President, The Progressive Group of Companies Inc. Board of Directors, Canadian Pork Council for Saskatchewan JEAN-LUC HAMELIN Director, Fresh Meat Sales Fresh Pork Olymel, S.E.C./L.P. SYLVIE HAUTCOEUR Sales Director, Business Development North America Les Aliments Lucyporc ALLAN LEUNG CEO, Donald s Fine Foods TREVOR LIZOTTE Vice President, Domestic & International Sales Hylife Foods LP SCOTT PETERS Owner, Herbsigwil Ltd. Executive Member, Manitoba Pork Council Board of Directors, Canadian Pork Council for Manitoba SUSAN RIESE Manager, Public Relations and Consumer Marketing Programs Manitoba Pork Council DAVID THOMPSON Vice President, Sales and Business Development Conestoga Meat Packers Ltd. DAVID TYPER Vice President, Red Meat Maple Leaf Foods Inc. TERESA VAN RAAY Pork Producer and Board Director, Ontario Pork Board of Directors, Canadian Pork Council for Ontario HANS KRISTENSEN Pork Producer, Board of Directors Canadian Pork Council for Maritimes

4 CANADA PORK CANADIAN PORK NATIONAL BRANDING STRATEGY VERIFIED CANADIAN PORK The Verified Canadian Pork (VCP) brand represents a farm-to-table quality assurance proposition for end-user customers and consumers based on Canadian Pork Excellence (PigCARE, PigSAFE, PigTRACE and a world-renowned meat inspection system). OBJECTIVES: 1) Increase customer and consumer confidence and awareness of Canadian pork in the marketplace. 2) Differentiate from commodities, competitors and other protein choices. 3) Provide a credible national platform for generic and premium brand building opportunities in domestic and export marketplaces. 4) Support National Pork Marketing (NPM) processor partners and provincial organizations in all markets. VERIFIED CANADIAN PORK PARTNER PROGRAM GROWTH MARKETING % CHANGE CATEGORY 1 / Retail & Foodservice Programs % CATEGORY 2 / Co-brand Programs % CATEGORY 3 / Co-brand Programs % CATEGORY 4 / Co-brand Programs % CATEGORY 5 / Co-brand Programs % Other % Total % LICENSED VCP PARTNERS National Pork Marketing Processor Suppliers % National Pork Marketing Producer Organizations % Further Processors % Purveyors / Distributors % Retail End-users % Foodservice End-users % Other % Total % VERIFIED CANADIAN PORK PARTNER PROGRAM Verified Canadian Pork (VCP) partner programs provide marketing resources, funding and support programs for licensed end-user customers to differentiate VCP brands and co-brands in the marketplace. VCP branded programs increase awareness and confidence in Canadian pork and the food safety and quality assurance systems that stand behind every kilogram of Verified Canadian Pork. VERIFIED CANADIAN PORK RETAIL PROGRAM Verified Canadian Pork partner programs provide marketing resources, funding and support programs for licensed end-user customers to differentiate VCP brands and co-brands in the marketplace. VCP branded programs increase awareness and confidence in Canadian pork and the food safety and quality assurance systems that stand behind every kilogram of Verified Canadian Pork. Participation in the VCP program requires a no-charge licensing agreement between Canada Pork, the retail partner, participating supply partners and distributors if applicable. The VCP program can be utilized as a stand-alone brand or integrated into a co-brand or private label branding strategy. VERIFIED CANADIAN PORK FOODSERVICE PROGRAM The Verified Canadian Pork brand is a unique partnership opportunity between Canadian farmers, processors and foodservice end-user customers seeking to differentiate themselves in the Canadian marketplace with a truly exceptional program. Participation in the VCP program requires a no-charge licensing agreement between Canada Pork, the foodservice partner, participating supply partners and further processors if applicable. The VCP program can be utilized as a stand-alone brand or integrated into a co-brand or private label branding strategy. DISTRIBUTOR EDUCATION PROGRAM (DEP) PROCESSOR, RETAIL AND FOODSERVICE DISTRIBUTOR EDUCATION (DEP) The Canada Pork team works with provincial stakeholder groups, retail, foodservice and processor partners to conduct educational and training seminars. DEP sessions focus on meat quality, yield performance and the hidden profit potential of expanding Canadian pork assortments. DEP seminars and training sessions also focus on Canadian pork on-farm and in-plant food safety and quality assurance systems and how Canada Pork programs and services can help build the pork category into a profit and sales growth centre in the meat case and on the menu. BRANDING CATEGORIES 1) Generic retail or foodservice VCP program (single or multiple VCP supply partners) 2) Co-branded products owned by National Pork Marketing (NPM) processors 3) Co-branded products owned by customers of NPM processors 4) Further processed co-branded products owned by NPM processors 5) Further processed co-branded products owned by NPM customers RETAIL AND SERVICES Branded and co-branded support Point of sale material development Recipe development Consumer marketing support Supply chain development Education and training seminars Verified Canadian Pork brand promotion support Merchandising ideas to increase carcass utilization and value optimization. FOODSERVICE AND SERVICES Menu development Recipe development New product development Supply chain development Education and training seminars (front and back of house) Verified Canadian Pork brand promotion support The Canada Pork team works with industry to provide educational workshops, training seminars, and product development events to increase carcass utilization and value optimization. 1) Retail merchandising demonstrations 2) Foodservice portion cutting demos 3) Carcass and sub-primal cutting 4) New and underutilized cuts 5) Preparation and cooking seminars 6) Benchmarking yield/financial performance

5 00623-BerkPork.indd :07 PM * Does not include pepperoni products OVER 90 VCP CO-BRANDED PRODUCTS IN THE CANADIAN MARKETPLACE VERIFIED CANADIAN PORK RETAIL VERIFIED CANADIAN PORK CO-BRAND BERKSHIRE PORK VERIFIED CANADIAN PORK FOODSERVICE by Valley Lea Farms Berkshire Pork A CUT ABOVE THE REST. Winkler Meats is proud to bring you Berkshire Pork from Valley Lea Farms. Berkshire pork is famous for its darker color and well marbled meat which results in and exceptionally flavorful taste. Historically Berkshires were the favorite breed of the English royalty and it remains popular today on menus across the globe. Berkshire pork, or Kurobuta as it is known in Japan, is reddish/pink in color, balanced, and distinctive. The characteristic intramuscular fat that runs through Berkshire meat gives it a smooth texture that will melt in your mouth. Traceability Humanely Raised Group Housing 100% Verified Canadian Pork Western Canadian Grain Fed Gluten/Allergen Free Deeper Rich Color Abundant Marbling We pride ourselves in making a superior quality product that has been raised humanely and in accordance to regulations. Winkler s Berkshire Pork by Valley Lea Farms are 100% Berkshire sired and crossed with Landrace / Large White sows to achieve optimal results at Valley Lea Farms. This combination delivers the prized Berkshire meat traits that make it a cut above the rest! SEE SPECIFICATIONS ON BACK FOR DETAILS ON AVAILABLE PRODUCTS winklermeats.ca VISIT OUR WEBSITE FOR GREAT PRODUCT RECIPES! VERIFIED CANADIAN PORK PARTNER CO-BRAND Truly Canadian Look for these marks on McSweeney s Jerky, Steak Strips & Steak Nuggets today!* As the Canadian Brand of Meat Snacks we re happy to say that all of our Beef and Pork Jerky, Beef Steak Strips and Beef Steak Nuggets are now proudly made with Canadian beef and pork. It s the best way to showcase our great country to the world. We ve partnered with Canada Beef and Canada Pork to demonstrate our commitment to using only the best Canadian meat, which is known worldwide for its high quality and great taste. It s no surprise then that anecdotal evidence tells us it s the choice of Canadians everywhere. Canadian consumers take pride in supporting the local producers that make the best quality products. By using the Canadian Beef and Verified Canadian Pork brand marks on McSweeney s Premium Jerky & Meat Snacks packaging, consumers can trust that The Canadian Brand of Meat Snacks is Truly Canadian. canadabeef.ca verifiedcanadianpork.com /canadianjerky Premium Jerky & Meat Snacks

6 DEMAND BUILDING SPRING/SUMMER GRILLING RETAIL LABEL FALL/WINTER ROASTING RETAIL LABEL PERFECT CANADIAN PORK ROASTS FALL & WINTER ROASTING THEME The fall/winter roasting theme focuses on the underdeveloped pork roast category featuring 15 roast ideas presented in a wide variety of portion sizes and sub-primal cuts to accommodate every price point, family size and meal occasion. The Fresh Canadian Pork Roast Merchandising Guide includes roasting methods, cooking times and end point internal temperature recommendations to select, prepare and serve Perfect Canadian Pork Roasts. Participating end-user customers have access to consumer marketing materials that include on-pack roasting method labels, attractive price tag moulding and rail card graphics. Additional recipes are available at verifiedcanadianpork.com. Demand building programs focus on opportunity gaps at the retail meat case or on the menu to position Canadian pork as the protein of choice and a delicious versatile meal solution. These programs improve end-user customer and consumer confidence by promoting seasonal cooking methods and traditional themes with optimum end-point internal temperatures to increase consumer satisfaction in the kitchen. Seasonal demand building strategies provide retail and foodservice operators with innovative merchandising ideas, marketing resources and attractive point of sale materials that add sizzle to the meat case or on the menu to achieve incremental sales and unlock profit potential. Canada Pork demand building strategies consist of three strategic marketing opportunities including Spring/Summer Grilling, Fall/Winter Roasting and Year-Round Slice & Save Value themes. THRILL OF THE GRILL SPRING & SUMMER GRILLING THEME The spring/summer grilling theme focuses on underdeveloped cuts such as thicker-cut chops and steaks (¾ to 1 ), churrasco style skewers, handcrafted fresh sausage, thick slices of lean belly and lean ground pork patties for outdoor grilling. Canada Pork resources include the Thrill of the Grill merchandising brochure featuring 14 grilling ideas to spice up the counter or offer on the menu. The Fresh Canadian Pork Grilling Guide includes preparation methods, cooking times and end point internal temperature recommendations for Perfectly Grilled Pork, Perfectly Barbecued Pork Ribs and Perfectly Smoked Pork. Participating end-user customers have access to consumer marketing materials that include on-pack grilling method labels, attractive price tag moulding and rail card graphics and consumer grilling guides. Additional recipes are available at verifiedcanadianpork.com. SLICE & SAVE YEAR-ROUND VALUE THEME The Slice & Save value theme focuses on the growing sales trend of bulk-buying vacuum packaged sub-primal cuts that consumers can cut at home. The Slice & Save Fresh Canadian Pork Home Cutting Guide features five sub-primal cuts including tenderloin, top sirloin, boneless loin, capicola shoulder blade and belly. The slicing guide includes simple home cutting techniques and meat thickness suggestions linked to popular preparation ideas and cooking methods. The guide features a wide variety of meal options to maximize the value of bulk buying. The guide also includes basic cooking tips and safe handling and storage information. Participating end-user customers have access to consumer marketing materials that include on-pack Slice & Save labels and the Slice & Save Consumer Guide. Additional recipes and Slice & Save Home Butcher videos are available at verifiedcanadianpork.com

7 EDUCATION Educational resources, training and instructional video services have become a cornerstone for the value proposition that the Canada Pork team brings to the table. Canada Pork educational programs focus on three broad-based categories: 1. YouTube style instructional video productions. 2. Distributor education programs (DEP) focusing on live-action presentations and demonstrations based on end-user specific content. 3. Technical marketing resources and materials including cutting charts, product handbooks, merchandising guides and meat quality analysis tools. DISTRIBUTOR EDUCATION (DEP) SESSIONS Canada Pork offers five sector-specific DEP programs tailored to fit the needs of stakeholders. DEP programs typically fall into the following categories: member associations, member customers, retail end-users, foodservice end-users and primary or further processors. DEP events provide an excellent opportunity for Canada Pork to present the VCP value proposition and the programs and services that Canada Pork offers to create demand, improve profitability and increase market share. This past year the Canada Pork team completed seven DEP events in three categories: four member association events, two foodservice distributor events and one trading house staff training event. VIDEO PRODUCTIONS This year Canada Pork developed and launched five instructional videos to support the Slice & Save value theme featuring Home Slicing Techniques. Each video features a different sub-primal cut including boneless loin, tenderloin, top sirloin, capicola shoulder blade and belly. Since the creation of Canada Pork, a total of 17 video productions have been developed to support national pork marketing educational initiatives. All video productions are available on verifiedcanadianpork.com under the Home Butcher, Home Chef or Farm-to-Table Quality Assurance Program links and many can be found on our stakeholder partner sites. Numerous Canada Pork video productions have also been adapted for priority markets outside of Canada to support the VCP value proposition in the export marketplace. TECHNICAL MARKETING TOOLS Canada Pork produces and distributes technical marketing materials to support end-user customer needs and educational events. This year the Canadian Pork Handbook was adapted for the domestic marketplace to include: 1. VCP brand information 2. VCP retail and foodservice programs and services 3. Demand building programs 4. Retail and foodservice end-user guide 5. Lymph node location chart Canada Pork also updated and reprinted the Retail and Foodservice End-user Guide. Customized versions of the guide were produced to include participating provincial pork producer associations logos and website information. Custom versions of the guide were created for three provincial organizations. Canada Pork also reprinted the Official Canadian Pork Quality Standards evaluation tools.

8 TRADE ADS VCP WEBSITE VERIFIED CANADIAN PORK NATIONAL TRADE ADVERTISING SUPPORT The Canada Pork team placed ads in Canadian Grocer and Foodservice and Hospitality magazines to support two seasonal demand building programs. These two national publications are the most-read trade magazines in their respective industries with a combined estimate of 75,000-plus readers per issue. The fall/winter demand building program for roasting was featured in the February 2018 insertions. The Thrill of the Grill program (March 2018 issue of Foodservice and Hospitality and two spring issues of Canadian Grocer magazine) supports the spring/summer demand building season. Increasing the sales volume of pork roasting and grilling categories accomplishes many of the strategic objectives of the national pork marketing program: educating stakeholders to improve satisfaction levels, promoting and demonstrating the value of new and underutilized cuts across all sectors and increasing consumption of Canadian pork. To maximize impact, the campaign was extended online with banners on the websites of both magazines connecting users directly to the Verified Canadian Pork website. This program represents the third annual advertising campaign designed to highlight the quality and versatility of Canadian pork to key target markets within the retail and foodservice industries. VERIFIEDCANADIANPORK.COM The primary objective of the website, launched in 2017, is to provide industry with key information about the farm-to-table quality assurance promise behind the Verified Canadian Pork brand. The website is designed to be user-friendly and easy to navigate with links and resources important to partners, end-user customers and consumers. Canada Pork updates the website with new content, resources and links on a regular basis. Over the last year, a number of updates have been made to the VCP website, including new photography to keep the website looking fresh. Two new buttons were added to provide users easy and quick access to valuable resources. The Nutrition Facts & Information link provides consumers and end-user stakeholder partners with important nutritional information about pork. The Market Development Toolbox contains Canada Pork demand building programs and resources designed to provide retail and foodservice end-user customers with innovative tools to help build pork category demand. Three demand building programs are included under this link: The Thrill of the Grill program, The Perfect Pork Roast program and the Slice & Save program. Last year, the website experienced over 6,000 total page views generated from 1,200 unique users. The average session per user was 2:43 with 3.45 the average number of pages visited per session. Most visitors to the website were from Canada (45.3%), followed by the United States (17.82%) and Brazil (10.31%). The homepage received the largest number of page views, although the industry resources section was where users spent the most time. Traffic to the website falls into three main categories: direct (coming from search engine requests), organic (typed into a browser bar or bookmarked) and referral (clicked from s, newsletters or other links). Last year, the Verified Canadian Pork website received 47.3% of traffic directly, 30.1% organically, and 22.3% from referral.

9 ACTIVITY & EVENTS CALENDAR RETAIL CHANNEL DEMAND BUILDING SLICE & SAVE VALUE-THEME PROGRAM TRADE ADVERTISING VIDEO/PHOTO DEP PARTNER PERFORMANCE MEASURES PROGRAM EVALUATION PLANNING AND REPORTING APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR VCP FARM-TO-TABLE QUALITY ASSURANCE APRIL TO MAY MEMBER ASSOCIATION EVENT APRIL CANADA PORK PROGRAM ANNUAL SATISFACTION SURVEY APRIL MEMBER ASSOCIATION EVENT JUNE HOME BUTCHER VIDEO PLANNING & DEVELOPMENT JULY ANNUAL REPORT DEVELOPMENT JUNE TO JULY COMMITTEE MEETING JULY PERFECT PORK ROAST RESOURCE DEVELOPMENT: ON-PACK LABEL MERCHANDISING BROCHURE IN-STORE POS AUGUST TO SEPTEMBER SLICE & SAVE RESOURCE DEVELOPMENT: ON-PACK LABELS & CONSUMER BROCHURE JULY TO MARCH 5 VIDEOS PRODUCED AUGUST VIDEO EDITS SEPTEMBER TO DECEMBER PERFECT PORK ROAST PROGRAM LAUNCH NOVEMBER MEMBER ASSOCIATION EVENT NOVEMBER 33 VERIFIED CANADIAN PORK PARTNER ONGOING ALL YEAR COMMITTEE MEETING NOVEMBER PERFECT PORK ROAST PROGRAM RETAIL CHANNEL PROMOTION DECEMBER TO JANUARY RETAIL TRADE AD CAMPAIGN PLANNING AND DEVELOPMENT DECEMBER TO JANUARY CPI PHOTO SHOOT DECEMBER FOODSERVICE DISTRIBUTOR EVENT/TRADING HOUSE STAFF TRAINING EVENT DECEMBER VIDEO LAUNCH JANUARY THRILL OF THE GRILL PROGRAM DEVELOPMENT FEBRUARY TO MARCH RETAIL & FOODSERVICE CAMPAIGN SUPPORTING PERFECT PORK ROAST FEBRUARY FOODSERVICE DISTRIBUTOR EVENT FEBRUARY COMMITTEE MEETING FEBRUARY RETAIL & FOODSERVICE CAMPAIGN SUPPORTING THRILL OF THE GRILL MARCH 11 CO-BRANDED VIDEOS PRODUCED FEBRUARY TO MARCH MEMBER ASSOCIATION EVENT MARCH

10 PERFORMANCE MEASURES 90% 89% PROVINCIAL PRODUCER GROUPS TOP THREE OF INTEREST TO PROVINCIAL PRODUCER GROUPS 1. Activities/resources focused on responsible animal care. 2. Activities/resources focused on on-farm safety and quality assurance. 3. Pork production product knowledge and training sessions. 86% 83% OF 82% 93% 88% 88% NATIONAL PRODUCER GROUPS TOP THREE OF INTEREST TO NATIONAL ASSOCIATIONS 1. Activities/resources focused on responsible animal care. 2. Verified Canadian Pork branded programs. 3. Activities/resources focused on meat quality attributes/differentiation. 86% OF 84% 89% 88% 86% 84% 78% 90% 87% 80% 77% A CANADIAN CONSUMER STUDY COMPLETED BY THE UNIVERSITY OF ALBERTA CONFIRMS THE VCP VALUE PROPOSITION IS ON TARGET AND RESONATES WITH CANADIAN CONSUMERS. 65% ATTITUDES TOWARDS THE VERIFIED CANADIAN PORK LOGO CONTENT NET AGREEMENT % 2018 ATTITUDES ABOUT CONTENT OF THE VERIFIED CANADIAN PORK LABEL: NET AGREEMENT STRENGTH % 2017 I was unaware of the Verified Canadian Pork program until I read the material provided It is important to me that Traceability from farm to final consumer is a priority of the pork industry It is important to me that Food Safety and Quality is identified as a priority in the pork industry I knew that Canada is the only North American country to have a national swine (pork) traceability system before I read the material provided It is important to me that Animal Care is identified as a priority in the pork industry I did not know that Canadian farmers do not use growth hormones to raise pigs I am pleased that the industry is developing traceability systems that will allow pork to be traced from purchase back to farm of origin I am pleased that the industry is developing higher food safety standards I am pleased that the por industry is improving industry welfare standards I would purchase pork with the Verified Canadian Pork logo in preference to pork without the logo PRIMARY PROCESSORS TOP THREE OF INTEREST TO PRIMARY PROCESSORS 1. Activities/resources focused on meat quality attributes/differentiation. 2. Activities/resources focused on end-user customers/consumers. 3. Pork production and product knowledge info sessions. 83% OF 82% 80% 73% 73% 90% 83% FOODSERVICE TOP THREE OF INTEREST TO FOODSERVICE 1. Verified Canadian Pork branded programs. 2. Verified Canadian Pork partner programs. 3. Activities/resources focused on responsible animal care. 80% 77% OF 73% Source: University of Alberta, Faculty of Agriculture, Life & Environmental Sciences Source: University of Alberta, Faculty of Agriculture, Life & Environmental Sciences EACH YEAR CANADA PORK CONDUCTS AN ONLINE SATISFACTION SURVEY WITH STAKEHOLDERS AND END-USER PARTNERS TO EVALUATE THE AND SERVICES OFFERED BY THE NATIONAL PORK MARKETING (NPM) PROGRAM. 8.51% FOODSERVICE OPERATOR 21.28% RETAIL OPERATOR 10.64% NATIONAL ASSOCIATION 19.15% PROVINCIAL PRODUCER GROUP 91% 90% 87% 86% 88% 86% 83% 85% 76% 75% 78% 80% 80% 67% 62% 74% 81% OF RETAILERS TOP THREE OF INTEREST TO RETAILERS 1. Activities/resources focused on responsible animal care. 2. Activities/resources focused on end-user customers/consumers. 3. Activities/resources focused on in-plant food safety and quality. 80% 78% 75% 73% 65% OF PURVEYOR OR DISTRIBUTOR TOP THREE OF INTEREST TO PURVEYORS/DISTRIBUTORS 1. Activities/resources focused on meat quality attributes/differentiation. 2. Activities/resources focused on end-user customers/consumers. 3. Activities/resources focused on responsible animal care. 79% 77% 75% 73% 70% 63% 61% 6.38% PURVEYOR OR DISTRIBUTOR 8.51% VALUE-ADDED /FURTHER PROCESSOR 25.53% PRIMARY PROCESSOR PROVINCIAL PRODUCER GROUPS NATIONAL ASSOCIATIONS RETAILERS FOODSERVICE PRIMARY PROCESSORS VALUE-ADDED /FURTHER PROCESSORS PURVEYORS /DISTRIBUTORS OF PROVINCIAL PRODUCER GROUPS PURVEYORS NATIONAL /DISTRIBUTORS ASSOCIATIONS FOODSERVICE VALUE-ADDED /FURTHER PROCESSORS PRIMARY PROCESSORS RETAILERS RESPONSE BY SEGMENT 79 stakeholders across 7 industry segments were sent the online survey. 47 stakeholders in 7 categories responded, a 60% response rate, an increase of 6% over APPROVAL RATING INDUSTRY SEGMENT COMPARISON Combining five strategic categories provides an aggregate score by industry segment: Awareness of Canada Pork Evaluation of technical expertise and knowledge Evaluation of programs and services Evaluation of presentations and communication Evaluation of promotional materials and resources VALUE ADDED/FURTHER PROCESSOR TOP THREE OF INTEREST TO VALUE ADDED/FURTHER PROCESSOR 1. Verified Canadian Pork branded programs. 2. Activities and resources focused on responsible animal care. 3. Activities/resources focused on meat quality attributes/differentiation. EVALUATION OF VCP BRAND IN THE MARKETPLACE

11 MARKET PERFORMANCE INDICATORS MARKET PERFORMANCE INDICATOR HIGHLIGHTS 2013 VS PORK DEMAND IN CANADA INCREASING: The pork demand index percentage has increased from 91% in 2013 to 123% in 2017, +32% CANADIAN PORK MARKET SHARE IN CANADA INCREASING: Canadian pork market share in Canada increased from 733,790 tonnes in 2013 to 783,680 tonnes in 2017, + 49,890 tonnes, 7% growth. PORK DISAPPEARANCE (CONSUMPTION) PER PERSON IN CANADA HOLDING STRONG: Pork disappearance in Canada averaged 24% of total animal protein consumed PORK MARKET SHARE OF ANIMAL PROTEIN CONSUMPTION HOLDING STRONG: Pork share of total animal protein consumption vs. poultry, beef and fish per person has changed from 23% in 2013 to 24% in CANADIAN CONSUMPTION OF ANIMAL PROTEIN HOLDING STRONG: Canadians consumed kg/person of poultry, beef, pork and fish per person in 2013 vs kg/person in , , , , , , , , , , , , ,000 80,000 TONNES 400, , , , QUANTITY (TONNES) TONNES 400, , , ,000 0 CA US CN JP MX PH TW SKR AU CL QUANTITY (TONNES) 60,000 40,000 20, CANADIAN PORK DISAPPEARANCE IN CANADA Source: Statistics Canada CANADIAN PORK DEMAND INDEX Source: Statistics Canada and Agriculture and Agri-Food Canada CANADA S TOP TEN MARKETS 2011 vs Source: Statistics Canada PORK IMPORTS INTO CANADA Source: Statistics Canada FRESH AND FROZEN OFFAL PROCESSED KG/PERSON % 30% 25% 20% 15% 10% 5% 0% % 22% 14% KILOGRAMS/PERSON TOTAL MEAT CONSUMPTION % 24% 25% 23% 23% 26% 24% 24% CANADIAN MEAT DISAPPEARANCE Source: Statistics Canada BEEF PORK CHICKEN MEAT IMPORTS AS % OF DOMESTIC DISAPPEARANCE Source: Statistics Canada / Table Supply and Disappearance of Food in Canada BEEF PORK CHICKEN MEAT DISAPPEARANCE SHARE IN CANADA: PORK, BEEF, POULTRY, FISH & SHELLFISH Source: Statistics Canada / Table FISH & SHELLFISH BEEF & VEAL PORK POULTRY

12 FINANCIAL REPORT CANADA PORK STATEMENT OF OPERATIONS For the year ended March 31, REVENUE Contributions - CPC Members 136, ,987 Contributions - Processors 135, ,036 AgriMarketing Contribution 235, ,171 ALMA - Building Consumption for Red Meat 32,181 Total Revenue 507, ,375 EXPENSES Administration 302, ,006 Performance Measures & Market Intelligence 13,308 46,931 Canadian Pork National Branding Program 147, ,293 Canadian Pork Advantage Distributor Education 5,357 15,856 Technical Marketing Tools 38,902 27,529 Total Expenses 508, ,616 Deficiency of Revenue over Expenses ,241 CANADA PORK AND SERVICES INVESTMENT PERCENTAGES % / $38,901 TECHNICAL MARKETING TOOLS 2.5% / $5,356 CANADIAN PORK ADVANTAGE DISTRIBUTOR EDUCATION 2.5% 19% 6.5% 72% MARKET DEVELOPMENT INVESTMENTS Canadian Pork National Branding Programs $147,992 / 72% Technical Marketing Tools $ 38,901 / 19% Canadian Pork Advantage Distributor Education $ 5,356 / 2.5% Performance Measures & Market Intelligence $ 13,308 / 6.5% 6.5% / $13,308 PERFORMANCE MEASURES & MARKET INTELLIGENCE 72% / $147,992 CANADIAN PORK NATIONAL BRANDING