Source: Michael Fielding, MEATINGPLACE, 3/7/16


In a historic move, 145 Pork Checkoff delegates representing 43 states and importers unanimously joined the North Carolina Pork Council in support of an advisement introduced at the National Pork Board delegate assembly.

During the National Pork Industry Forum last week in Indianapolis, the North Carolina Pork Council delegation submitted the advisement to urge U.S. Secretary of Agriculture Tom Vilsack to uphold a purchase agreement between the National Pork Board and the National Pork Producers Council (NPPC).

The 2006 purchase contract allows the National Pork Board to purchase the "Pork. The Other White Meat" marketing positon from NPPC. The Pork Checkoff pays NPPC $3 million each year until the payment schedule is fulfilled in 2026.

The move stems from a 2013 federal lawsuit by the Humane Society of the U.S. (HSUS) against USDA contesting contractual agreements between the National Pork Board and the National Pork Producers Council in whicih HSUS objected to the contract between National Pork Board and the National Pork Producers Council for the purchase of the trademark “Pork. The Other White Meat” by NPB, which had been approved by USDA in 2006.

The contract valued the trade mark at $34.5 million based on its replacement value and was amortized over 20 years at a negotiated interest rate, resulting in 20 years of annual payments from NPB to NPPC of $3 million.

The case was originally dismissed for lack of standing, but it was reinstated in 2015 by an appeals court. USDA later entered into settlement discussions with HSUS. The USDA has since withheld approval of the annual payment to NPPC in 2016.
Additionally, USDA has directed NPB to contract for another valuation of the trademark and expects to make a determination regarding approval of the 2016 payment by the middle of June.

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