Together, we re always improving

Transcription

1 2016 COMPANY STEWARDSHIP REPORT 2012 Perdue Becoming the Most Trusted Name in Food and Agricultural Products Together, we re always improving

2 INTRODUCTION At Perdue Farms, stewardship is one of our core values. We believe in responsible food and agriculture, and that means we have a commitment to stewardship in everything we do was a year of progress for Perdue Farms, and we want to share that progress with you. Read more to discover the steps we re taking toward our vision of becoming the most trusted name in food and agricultural products.

3 TABLE OF CONTENTS OUR FOOD Leading the way away from antibiotics We re committed to quality Food safety begins on the farm and never stops A dedication to health and nutrition OUR ENVIRONMENT Perdue AgriRecycle: Taking another major step in protecting the Chesapeake Bay Conserving and recycling OUR ANIMAL CARE Transforming the way we think about raising chickens Ensuring respectful animal treatment Our programs and practices OUR PEOPLE & PARTNERS ASSOCIATES Setting a winning safety record Wages, benefits and compliance Dignity, diversity and inclusion Equal opportunity Associates rights Wellness Centers Perdue Health Improvement Program COMMUNITY After the flood: Coming to the aid of our communities A foundation for support Hunger relief Our associates care Poultry farms: Good policies make good neighbors AGRICULTURAL CUSTOMERS Growing organic, (not quite) magical beans and seeds Focusing on the farmer Milking greater dairy yields Reaching around the globe A refined approach to oilseeds BUSINESS PARTNERS Getting better, not just bigger A values-driven approach to business partnerships Supporting our farm family partners

4 OUR FOOD We believe in responsibly producing safe, high-quality, trusted and affordable food for customers and consumers worldwide.

5 Responsibly producing safe, high-quality, affordable food Leading the way away from antibiotics In 2016, we capped 18 months of industry-leading As part of our commitment to animal care, we will never milestones in reducing antibiotic use by becoming the withhold appropriate treatment and will administer a first major chicken company to eliminate the routine short, targeted course of antibiotics when a veterinarian, use of all antibiotics. This included removing all human prescribes them, which happens in roughly 5% of and animal antibiotics from the feed and hatchery, chicken flocks. eliminating the use of antibiotics for growth promotion and, most importantly, raising animals in a way that does not require antibiotics for disease prevention. In 2016, our no-antibiotics-ever turkey production reached 75% of live weight. We continue to raise hogs under no-antibiotics-ever protocols, with an average of 5% or less requiring treatment COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 5

6 Responsibly producing safe, high-quality, affordable food Our milestones in reducing antibiotic use 2014 By improving husbandry and hatchery practices, Perdue ended the routine use of human antibiotics in our chicken production. Over the previous 12 years, our use of human antibiotics in chicken production dropped by 95%. Other poultry companies and some of their customers followed with promises to reduce antibiotic use. Later in 2014, Perdue transitioned all PERDUE SIMPLY SMART convenience products to no antibiotics ever No-antibiotics-ever production exceeded 50% of our chickens and 40% of our turkeys. Perdue Foodservice converted its K-12 products to no antibiotics ever during the school year. That fall, Perdue acquired Niman Ranch, increasing no-antibiotics-ever pork and beef production. February 2016 Perdue converted all our frozen and refrigerated convenience products to no antibiotics ever, transforming the retail chicken market. Our noantibiotics-ever chicken production reached 67%, and turkey surpassed the halfway mark. Perdue Foodservice announced that it would convert its entire line of turkey products to no antibiotics ever, joining a full roster of no-antibiotics-ever chicken. October 2016 Perdue announced that, by removing all animal antibiotics, we were raising 95% of our chickens without any antibiotics, becoming the first major poultry company to end the routine use of all antibiotics COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 6

7 Safe, high-quality, trusted and affordable food 95% 100% of chickens raised with no antibiotics ever 14 CN (child nutrition) products of U.S.-sold products made in the U.S. 17 low- or reducedsodium products 2016 COMPANY STEWARDSHIP REPORT 26 whole grain products 100% of U.S.-sold products from animals raised and processed in the U.S. 100% of food products meet the requirements of the Global Food Safety Initiative GO TO TABLE OF CONTENTS PAGE 7

8 Responsibly producing safe, high-quality, affordable food We re committed to quality Quality is a commitment we live up to with annual goals, audits and measurements at every step in the supply chain. Our quality improvement process engages all associates in problem solving, because we believe in making things better together. At our Perdue Foods Innovation Center, we check our products against the competition. We share the results of our consumer hotline calls and consumer and customer concerns with operations and management, including Chairman Jim Perdue, to zero in on any issues. The same commitment to quality extends to our agricultural products. Our quality improvement process engages all associates COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 8

9 Responsibly producing safe, high-quality, affordable food Food safety begins on the farm and never stops Our comprehensive farm-to-fork food safety program begins with healthy animals fed a diet free of animal by-products. It continues through processing, packaging and distribution, and it includes consumer education and awareness. We put an emphasis on early interventions and never let up on any of our efforts. Food safety teams at our plants share ideas and technologies across Our products, including those sold at retail, for foodservice and for export, meet the requirements of the Global Food Safety Initiative (GFSI) We were one of the first companies to use High Pressure Pasteurization for enhanced food safety, adding an extra layer of assurance for our ready-to-eat products, such as PERDUE SHORT CUTS sliced, fully cooked chicken breast strips We have long-standing practices to protect the safety and integrity of our products, including full traceability, and as always, we continue to meet the standards prescribed by federal, state and local authorities to ensure the safety of our products especially as it relates to bioterrorism the company to drive continuous improvement. We back up those efforts with in-house microbiology We put an emphasis on early interventions and never let up. labs to test products for food safety COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 9

10 Responsibly producing safe, high-quality, affordable food A dedication to health and nutrition We have options for a variety of consumer and customer needs, from products made with simple ingredients, such as our PERDUE SIMPLY SMART line, to gluten-free products that meet the highest standards of the Gluten-Free Certification Organization. We continue to make our PERDUE branded products even healthier: Our low-fat refrigerated products have less fat than comparable breaded, fried boneless chicken products, according to USDA data Our whole grain breaded line meets USDA Dietary Guidelines for whole grains We have retail and foodservice products labeled child nutrition, which contribute toward fulfilling the USDA s daily child nutrition meat pattern requirements We use only white-meat chicken and no fillers We continue to strive to lower sodium levels and to meet consumer taste preferences and functional processing requirements Our COLEMAN NATURAL and COLEMAN ORGANIC processed products, including sausages and bacon, contain no added nitrites, nitrates or artificial preservatives Most of our PERDUE HARVESTLAND foodservice items contain no artificial additives, nitrates or nitrites Visit perduefarms.com to learn more > 2016 COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 10

11 OUR ENVIRONMENT We believe in being responsible stewards of our natural resources.

12 Responsible stewardship of our natural resources Perdue AgriRecycle: Taking another major step in protecting the Chesapeake Bay We expanded on our $68 million investment in nutrient recycling on Delmarva with the addition of a $12.5 million capital investment in a composting operation. The Perdue AgriRecycle composting facility went online in late This continued our commitment to handle surplus poultry litter from Delmarva chicken farms and added the capability to recycle other agricultural by-products that were previously land applied. AgriRecycle can compost poultry litter; nutrient-rich by-products, such as treated biosolids from poultry plant wastewater; and other organic material, such as soybean stems. Perdue AgriRecycle has already handled more than two billion pounds of poultry litter. In 2015, 85% of the nutrients were moved to locations outside the Chesapeake Bay region COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 12

13 Responsible stewardship of our natural resources WATER USE: FOSSIL FUEL USE: ELECTRICITY USE: CO2 EMISSIONS: 4.6% 14%.2% 5.9% REDUCTION REDUCTION REDUCTION REDUCTION ( ) ( ) ( ) (FY2014 FY2017) over the past three years over the past three years 2016 COMPANY STEWARDSHIP REPORT over the past three years over the past three years GO TO TABLE OF CONTENTS PAGE 13

14 Responsible stewardship of our natural resources Conserving and recycling Our renewable energy efforts include: Two solar panel installations that reduce carbon emissions by 3,000 tons per year A biomass boiler that burns soybean sticks, pods and woodchips, providing steam for soybean processing while generating electricity back to the grid, reducing CO 2 output by 18,000 tons each year An innovative system that captures methane from a wastewater pond to fuel a generator and uses heat from the generator to provide hot water, cutting CO 2 output by 52,000 tons annually Water reuse: o Downstream reuse in our harvest plants recycles water for non-foodcontact use and reduces the volume going to wastewater treatment o Recirculating cooling towers in Perdue AgriBusiness significantly reduce the amount of water used for soy processing Each of our major operations has an Environmental Scorecard to measure compliance, sustainability efforts and associate involvement. The scorecard drives continuous improvement, with facility and company goals for water reduction, recycling, energy conservation and CO 2 emissions COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 14

15 OUR ANIMAL CARE We believe in responsibly raising animals for food.

16 Responsibly raising animals Transforming the way we think about raising chickens The June 2016 release of 2016 and Beyond: The four-part plan consists of: Next Generation of Perdue Commitments 1. Accelerating our progress in animal care to Animal Care represents changes in the way we think about raising chickens. 2. Strengthening our relationships with farmers 3. Building trust with multiple stakeholder groups 4. Creating an animal care culture for continued improvement Visit perduefarms.com to learn more > Animal care advancements in the plan include increasing chicken activity through natural lighting and enrichments, research with slower-growing breeds and a commitment to move from electrical to gas stunning COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 16

17 Responsibly raising animals 100% of chickens raised under No Antibiotics Ever protocols 100% of hogs raised under No Antibiotics Ever protocols 5% 75% of animals treated of turkeys raised under with antibiotics No Antibiotics Ever protocols (when required for treatment) 0 gestation crates 100% of contract farmers and associates handling live animals receive welfare training 100% of animals raised under documented responsible care protocols Toll-free hotline to report welfare violations 2016 COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 17

18 Responsibly raising animals Ensuring respectful animal treatment All associates who handle live animals, and the farmers who raise them, receive animal care training We have zero tolerance for mistreatment and maintain a toll-free hotline for reporting violations of our animal care programs We annually audit our live production operations and are subject to numerous third-party audits for verifications and by customers Training, documented programs, audits and a toll-free hotline help ensure responsible animal care COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 18

19 Responsibly raising animals Our programs and practices Verified Poultry Care For poultry raised indoors, we use cage-free, temperature-controlled housing with fresh-air ventilation. In the house, chickens are protected from the elements, disease and predators, and they are given constant access to food and water, sufficient room to move and exhibit most natural behaviors, and periods of light and darkness. We ensure the well-being of our chickens and turkeys through audited and documented best practices, designated Poultry Care Officers and veterinarians specializing in poultry. All farmers and associates who handle live poultry receive poultry welfare training. PERDUE, PERDUE HARVESTLAND and PERDUE SIMPLY SMART chicken products are covered by our USDA Process Verified Program for Responsibly Raised. The program includes USDA audits of our hatcheries, farms and harvest plants to ensure compliance with our documented animal care standards. Chickens raised for the COLEMAN retail brand are from Global Animal Partnershipcertified farms rated GAP 2 or above. Our USDA Process Verified Program for Responsibly Raised includes audits of hatcheries, farms and plants to ensure compliance COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 19

20 Responsibly raising animals Our programs and practices USDA Certified Organic Chickens These include: The definition of free range requires only Natural sunlight access to the outdoors, but we know Open, fresh-air ventilation consumers expect more than that. That s Enrichments, such as bales of hay why all our organic and other free-range or straw, that add complexity to the chickens are raised on Global Animal chickens environment Partnership-certified farms that are ranked Access to outdoor areas that are GAP 2 or above and meet all the welfare typically at least half the size of the requirements of the National Organic Program. chicken house Multiple doors situated approximately every 50 feet running the length of the chicken house to encourage birds to go outdoors Sunshades or awnings over each doorway Outdoor water access Pastures with a mixture of grass and earthen areas, allowing the birds to forage and take dust baths For more information about our Animal Care programs, visit responsiblefoodandagriculture.com COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 20

21 Responsibly raising animals Our programs and practices No-Antibiotics-Ever Hogs We work directly with family farmers who share our commitment to raising hogs without antibiotics or ractopamine and in a low-stress environment. Our farmers sow operations do not use gestation crates. Our hogs are raised in a combination of pastures, hoop barns, outdoor lots and controlled atmosphere barns with fresh-air ventilation. Furthermore, some of our hogs are raised in accordance with the Global Animal Partnership standards. Niman Ranch Niman Ranch is a community of more than 720 independent family farmers and ranchers who raise pork, beef and lamb traditionally, humanely and sustainably to deliver the finest-tasting meat. Niman Ranch products are all third-party certified under the Certified Humane program and from animals raised by small, independent U.S. family farmers and ranchers who adhere to some of the strictest animal welfare protocols in the industry, including: No antibiotics EVER No added hormones EVER No gestation or farrowing crates Raised outside or in deeply bedded pens Never fed animal by-products Many of our products are raised in accordance with Global Animal Partnership standards. For more information about Niman Ranch protocols, visit: nimanranch.com COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 21

22 OUR PEOPLE & PARTNERS We believe in being a responsible employer, investing in our associates growth, safety and well-being. associates

23 Being a responsible employer Setting a winning safety record In 2016, Perdue received the highest number of safety awards of any poultry company from the Joint Industry Safety and Health Council for consistently implementing innovative and effective safety and health processes and systems. According to statistics the U.S. Labor Department s Bureau of Labor Statistics released in 2014, the nationwide lost-time rate for all manufacturing industries combined for that same year was 1.00 case per 100 workers. Perdue s companywide rate during that year was 0.19 cases per 100 associates. As of July 2016, Perdue s lost-time rate was 0.28 cases per 100 associates. Perdue s companywide OSHA Total Recordable Incident Rate is as compared with the current poultry industry rate of and the goods producing rate of Visit perduefarms.com to learn more > As of July 2016, Perdue s lost-time rate was about one-fourth that of the manufacturing sector COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 23

24 Setting a winning safety record 99.5% of associates work full time 100% of full-time associates eligible for company health coverage (after probationary period) 100% of full-time associates eligible for company 401(k) match 100% of full-time associates eligible for bonus plans (associates employed for full fiscal year) 2016 COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 24

25 Being a responsible employer Wages, benefits and compliance We re proud to take care of our team members by offering: Competitive wages Comprehensive benefits with options for medical, dental and vision coverage Life and disability insurance options A 401(k) savings plan with matching contributions Medical and dependent care pre-tax flexible spending accounts Tuition reimbursement We comply with all applicable wage and hour laws and regulations, including those related to minimum wage, overtime compensation and piece rate. Further, we ensure all associates work within the limits of regular and overtime hours. Total hourly compensation for our production positions exceeds $17, including wage and benefits COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 25

26 Being a responsible employer Dignity, diversity and inclusion We take pride in the diversity of our workforce and the origin, gender or gender identity, sexual orientation manner in which our facilities bring together people from or religious beliefs. All associates receive mandatory different racial, ethnic, religious and cultural backgrounds. discrimination and harassment awareness training, We re committed to equal opportunity, and our Inclusion including their responsibility to report any suspected Council allows our company to create an even more violation of our policies. We also expect our vendors and diverse culture. business partners to abide by the same policies when working with our associates or while on company property. We re committed to treating all associates with dignity and respect, and we have a strong policy against any form of discrimination, harassment or abuse. This includes discrimination or harassment based on race, national We are committed to treating all associated with dignity, and our Inclusion Council fosters an even more diverse culture COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 26

27 Being a responsible employer Equal opportunity As part of our Equal Employment Opportunity Policy, we reaffirm our commitment to recruit, hire, train, promote and administer all personnel actions without regard to color, religion, age, sex, national origin, marital status, veteran status, status as a qualified individual with a disability or any other characteristic protected by law. Further, as a government contractor/subcontractor, we annually write Affirmative Action Plans for each unit within the company. As part of that exercise, we thoroughly analyze all company practices to ensure discrimination does not exist. We reaffirm our commitment to equal opportunity and thoroughly analyze all company practices to ensure discrimination does not exist COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 27

28 Being a responsible employer Associates rights We have an open-door policy to allow every associate to discuss any issue with any member of the management team, peer-review panels to ensure we apply policies fairly and a toll-free hotline. We believe a union-free environment provides the best opportunity for our associates to work together in a trust-based environment with shared goals. At the same time, we are committed to working with unions in a spirit of trust and mutual respect at those facilities with existing collective bargaining agreements. We are also fully committed to protecting the rights of all associates, including the right to associate, organize and bargain collectively in a lawful and peaceful manner, without penalty or interference. We believe in working together in a trust-based environment with shared goals COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 28

29 Being a responsible employer Wellness Centers: A prescription for better health Perdue is one of the few businesses in the country to offer associates and dependents access to affordable primary care through fully equipped on-site Wellness Centers staffed by health care providers from the local community. Wellness Center services include ongoing treatment for chronic issues, OB/GYN services, prenatal care, pediatric care and physical therapy. Associates can see a doctor during their shifts and get paid for their time. Our on-site Wellness Centers offer associates and dependents access to affordable primary care COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 29

30 Being a responsible employer Perdue Health Improvement Program: Prevention is the best medicine Our voluntary Perdue Health Improvement Program (HIP) provides free annual wellness screenings and supports associates in their efforts to eliminate lifestyle risk factors and manage controllable diseases through one-on-one counseling, health education and workplace programs. This innovative program received a Secretary s Innovation in Prevention Award from the U.S. Department of Health and Human Services and a C. Everett Koop Health Award. The Perdue Health Improvement Program helps our associates get and stay healthy COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 30

31 OUR PEOPLE & PARTNERS We believe in being responsible members of the communities where we do business. community

32 Responsible members of our communities After the flood: Coming to the aid of our communities The flooding following Hurricane Matthew brought In the days that followed, Perdue donated devastating hardship to the communities truckloads of product and ice to relief efforts, surrounding our operations in the eastern Carolinas. working through Feeding America and local Even while our operations were still reeling, our associates were delivering ice and product donations agencies, and provided more than $60,000 in to assist the community and volunteering to cook financial support through the Franklin P. and and provide meals for their neighbors. Arthur W. Perdue Foundation. Perdue distributed $2.09 million in grants during the 2016 calendar year COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 32

33 Responsible members of our communities A foundation for support The Franklin P. and Arthur W. Perdue Foundation is the charitable giving arm of Perdue Farms. Through grants, we strive to support organizations and programs that benefit the communities where our associates live and work. We strive to strengthen our communities by focusing our efforts on education, agriculture, the environment, health and social services, public safety, and fighting hunger and poverty. We also support events that celebrate the heritages and cultures of our communities. Hunger relief We have an ongoing pledge to donate a minimum of 2 million pounds of product each year to Feeding America for distribution to community food banks and pantries. We also support local food banks through grants and our associates volunteer efforts. In 2000, Feeding America, recognized us as New Donor of the Year and later honored us as a Protein Donor of the Year. Our annual Strike Out Hunger Challenge on Delmarva campaign, a partnership with the Delmarva Shorebirds baseball team, provides challenge grants that bring the community together to support the Food Bank of Delaware, Eastern Shore Branch of the Maryland Food Bank and Food Bank of Southeastern Virginia and the Eastern Shore. Perdue donated 7.1 million pounds to Feeding America during the 2016 calendar year COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 33

34 Responsible members of our communities Our associates care Many of our facilities lead their communities in fundraising for such agencies as United Way, March of Dimes and American Cancer Society Relay for Life. Our associates are also active in mentoring and educational programs and environmental groups, serve on the boards of nonprofits, support cultural and civic events, and respond to crises in their communities. Associates across the company are also involved annually in Project Clean Stream. In 2016, Perdue associates across 11 states, along with their family members and friends, removed 40,000 pounds of trash and debris from streams, woods and roadways as part of the company s ninth annual Project Clean Stream. Perdue joined Project Clean Stream, a Chesapeake Bay-area grassroots program, in In 2011, Perdue expanded the concept across the company. Since 2008, more than 5,800 volunteers have removed in excess of 184 tons of trash from nearly 300 sites. Our Perdue Transportation drivers are equally active, participating in Wreaths Across America ; the World s Longest Truck Convoy to support Special Olympics; and Operation Teddy Bear, which provides truck rides each year to developmentally disabled residents of the Holly Center in Salisbury, Md. Many of our facilities lead their communities in fundraising for United Way, March of Dimes and Relay for Life COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 34

35 Responsible members of our communities Poultry farms: Good policies make good neighbors If you live around farming, you know that agricultural activities involve some noise, dust and odors. We support right-to-farm laws, but also accept our role in having responsible policies for new poultry house construction. Before offering a contract to a prospective farmer, we take into account neighboring property considerations and environmental and biosecurity concerns. This includes minimum setbacks from property lines, neighboring dwellings, streams and wetlands, and maximum number of chickens on each farm. We support right-to-farm, but also accept our role in having responsible policies COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 35

36 OUR PEOPLE & PARTNERS We believe in responsibly helping customers prosper with flexible, forward-thinking solutions for agriculturally based products and services from a uniquely trusted name. agricultural customers

37 Responsibly helping farmers and agricultural customers Growing organic, (not quite) magical beans and seeds In 2016, we continued to increase the availability of organic products and We re also expanding contracted support organic production. Investments in our Milford, Del., processing plant production of high-erucic acid made it the largest USDA certified organic poultry plant in the U.S., and rapeseed, a specialty seed we re now contracting with farmers in Maryland and Delaware to grow certified that yields an oil used in food organic chicken. processing, cosmetics and Through our partnership with DuPont Pioneer, we announced plans to more pharmaceuticals. Planted as cover than double acreage of Pioneer brand Plenish high-oleic soybeans in crop, the rapeseed reduces runoff Maryland, Delaware, southeast Pennsylvania and southern New Jersey for from farm fields and generates Plenish high-oleic soybean oil provides a sustainable, U.S.-grown, soy-based, trans fat alternative for food companies and foodservice operators. Farmers additional income for farmers. receive a premium for growing and storing the Plenish beans. The second annual Perdue AgriBusiness Organic Field Day, held in 2016, brought together organic producers, vendors and certifiers, along with representatives of the Organic Trade Association, National Organic Program, USDA Sustainability Office and Natural Resources Conservation Service COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 37

38 Responsibly helping farmers and agricultural customers In 2015, Perdue AgriBusiness Purchased Technology Crops International s U.S. specialty crops business. The acquisition builds upon an existing partnership between Perdue AgriBusiness and TCI in seed procurement, contracting and commercialization of new and high-value specialty oilseed serving the nutritional, oleochemical and personal care industries. In 2016, Perdue AgriBusiness Continued its strategic growth, beginning construction on a grain-receiving and soybean-crushing operation in Pennsylvania to better serve the commonwealth s grain and livestock producers. The company also opened a merchandising office in Brazil to enhance its direct sourcing of corn, soybeans and other commodities from Brazilian farmers, thereby improving its ability to supply its international and U.S. customers year-round. Perdue AgriBusiness continues strategic growth while keeping a focus on the farmer COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 38

39 Responsibly helping farmers and agricultural customers % million bushels of grain handled 5,500 grain family farms 2016 COMPANY STEWARDSHIP REPORT of feed mills are FDA inspected 2,400 poultry family farms 750 hog family farms GO TO TABLE OF CONTENTS PAGE 39

40 Responsibly helping farmers and agricultural customers Agriculturally based products and services from a uniquely trusted name Focusing on the Farmer Since the construction of the first grainreceiving facility in Salisbury, Md., in 1960, Perdue AgriBusiness has been focused on bringing value to the farm gate recognizing that viable crop farms are essential to our company s supply chain. While our business has grown significantly in size and scope, we remain focused on helping farmers increase the profitability of their operations. Our you grow it, we ll buy it promise to local farmers ensures that they ll have a competitive local market for whatever row crops they choose to produce. We ll never turn farmers away. We ve continuously increased our grain-handling capacity and have expanded our network of elevators in the Mid-Atlantic. Our network of elevators and rail, truck and marine transportation provides Mid-Atlantic farmers with access to domestic and international markets. By creating and supporting markets for specialty crops, organic grains and cover crops, such as winter wheat, we re providing opportunities for farmers to diversify their operations and potentially increase revenue per acre. Farmers are essential to our supply chain, and we remain focused on helping farmers succeed COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 40

41 Responsibly helping farmers and agricultural customers Agriculturally based products and services from a uniquely trusted name Milking Greater Dairy Yields Our science-based dairy amino acid supplements optimize milk yields and milk components, improving the bottom line for dairy farmers. Reaching Around the Globe The USDA has certified us as a direct exporter of agricultural commodities. Our deep-water port in Chesapeake, Va., loads an average of 120 vessels per year bound for Europe, the Mediterranean, sub-saharan Africa, southeast Asia, China, the Caribbean and South America. We also load more than 16,000 containers. We import through Chesapeake and other East Coast ports. A Refined Approach to Oilseeds We have more than 50 years of experience in oilseed processing and a supply chain that includes contracting with farmers, crushing, refining, and transporting by rail and truck. This gives us the flexibility to provide such products as high oleic soybean oil for zero trans fat applications and high-erucic acid rapeseed oil for food processing and pharmaceutical and cosmetic uses. We have more than 50 years of experience and a supply chain that stretches from farm fields to customers around the globe COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 41

42 OUR PEOPLE & PARTNERS We believe in responsibly contributing to the economic stability of our company and business partners. business partners

43 Responsibly contributing to our business partners Getting better, not just bigger Following a belief that Perdue s future is getting better, not The acquisition followed Perdue s 2011 purchase of just bigger, Perdue Foods acquired Natural Food Holdings, Coleman Natural Foods, which introduced the company to including the NIMAN RANCH brand, in organic chicken production and broadened its portfolio to include no-antibiotics-ever pork. That was a turning point, The addition of the NIMAN RANCH brand aligned with as the company began incorporating Coleman Natural Perdue s focus on premium brands and proteins with Foods elevated animal care practices. elevated attributes, including raised with no antibiotics ever and higher welfare standards. Perdue is the leading producer of USDA certified organic chicken and no-antibotics-ever chicken COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 43

44 Responsibly contributing to our business partners 3rd 4th Top 10 largest poultry company in the U.S. by sales (7% of market) largest poultry company in the U.S. by production Perdue AgriBusiness ranks among the top 10 U.S. grain companies 2016 COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 44

45 Responsibly contributing to our business partners A values-driven approach to business partnerships As a family-owned, privately held company, we make our business. Our value of stewardship includes the business decisions that effectively balance our long-term responsibility to generate profitable growth to support strategies with short-term requirements, while staying true the strategic plans of our company, sustaining us to what we believe in. That way, we can make sure our into the future. actions bring us closer to our goals. We understand that our success goes hand-in-hand with We have a core code of conduct and promote ethical our ability to help our business partners including our practices, which we share with all associates and customers, farm partners and vendors be successful. This recommunicate to managers annually. is founded in our core values of integrity and teamwork, and extends into our strategic growth plans. We also know that our ability to contribute positively to others depends on the resources we generate through Perdue is the leading producer of USDA certified organic chicken COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 45

46 Responsibly contributing to our business partners Supporting our farm family partners Poultry Farmers health and nutrition research, and laboratories that rival We know that for many farm families, their income from many universities. poultry contracts is essential to the economic survival of Coleman Natural Hog Farmers their farm. That s why we re dedicated to helping them Farmers who raise hogs for sale to Coleman Natural put succeed. Our poultry contracts insulate farmers from most in extra work to meet our care standards, including raised of the financial risks while providing stable income and with no antibiotics ever and an all-vegetarian diet. In turn, rewarding top performers. they receive a premium price for their animals. We help Our poultry contracts include no-antibiotics-ever and them with veterinary and technical support. organic meat chickens (broilers), turkeys and breeders Niman Ranch Farmers (that supply eggs to our hatcheries). Niman Ranch continues to work with small family farms, We support our poultry farmers with dedicated following the same protocols that continue to distinguish veterinarians, flock advisers, behind-the-scenes poultry Niman Ranch. To learn more, visit nimanranch.com. We re dedicated to helping our farm families succeed COMPANY STEWARDSHIP REPORT GO TO TABLE OF CONTENTS PAGE 46

47 LOOKING FORWARD We continue to innovate, providing consumers, customers and farmers with trusted choices. We re listening to stakeholders, learning and continuously improving.