VOCATION. TRAINING. GROUP SOW HOUSING. Jonathon Hoek Vice President of Pig Production Belstra Milling Co., Inc.

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1 VOCATION. TRAINING. GROUP SOW HOUSING Jonathon Hoek Vice President of Pig Production Belstra Milling Co., Inc.

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3 BELSTRA MILLING COMPANY

4 4 feed mills 200,000 tons/year 250K pigs 100K Dairy cows 70K rabbits daily 13,000sows 400K pigs Genetic Supplier 80K sow influence through genetics Construction and Maintenance Feed Milling Pig Production Tourism Pork Products The Pig Adventure Fair Oaks Farms 150K people/year visit our farm Unique insight on consumer perception Producer Partner with Clemens Food Group Farm to Table brand for Farmhouse Restaurant at Fair Oaks Farms

5 HISTORICAL FOUNDATION Everyone then who hears these words of mine and does them will be like a wise man who built his house on the rock. And the rain fell, and the floods came, and the winds blew and beat on that house, but it did not fall, because it had been founded on the rock. Matthew 7:24-26

6 WHY THE DISCUSSION?

7 80% of consumers favor mandatory labels on food containing DNA OKLAHOMA STATE UNIVERSITY FOOD DEMAND SURVEY

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9 UNINTENDED CONSEQUENCES OF MODERNITY

10 PARADOX Perceived animal welfare gains by consumers may actually be destroyed by expedited timelines for conversion to loose sow housing in the United States.

11 A Farmer s Ethical Dilemma (National US breeding herd 5.7M sows) 1 pig = 500, ¼ lb meals 1 Less PSY = 2,850,000,000 less meals

12 OUR APPROACH TO TRAINING?

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14 Before 1946 Veteran/Mature Silent Baby Boomers Gen X Compelling Messages Make or do without, Work is a privilege Defining Event Great Depression, WW2 Thriving economy, JFK, Live to Work, Live up to evietnam, Space Expl. Self reliant, who can you trust, what will endure Divorce rates, corporate layoffs, latch key, Watergate, Challenger Disaster Communication Techniques Radio, Phone Writing, Face to Face TV, learning all forms Computers, , Cell phones View of Work Respect for authority, Discipline, loyal Go the extras mile, 60 hour work week including weekends, Team Player, Independent, informal, direct to the point Millennials Work to live, you are special, opinion counts, connected 9/11, Oklahoma City bombing, Columbine Texting, twitter, Facebook, Instagram, smart phones Optimistic, multitaskers, techno savvy, high self esteem, impatient

15 GENERATIONAL CHANGE Gen - X Baby Boomers Veterans mature silent Millennials

16 This is not a job it s a jobby, I absolutely love what I'm doing! Kim-Central Indiana Farrowing House Day 1 Care Lead

17 Question: Do we provide a job or a vocation? Its not just a job it s a; Vocation- a particular occupation, business, or profession; calling. a function or station, esp. a religious life, to which one is called by God.

18 THE OWNERSHIP OF Hersdmanship a manager, breeder, or tender of livestock Pigmanship No definition but by Farm Sanctuary Animal Husbandry a kind of farming in which people raise animals for meat, milk, eggs, etc.

19 PIGMANSHIP DEFINITION 1. The *stewardship of pigs under the care of a farmer. 2. Pigmanship shows a love for the pig when the needs of the pig supersede the farmer. 3. Pigmanship proactively understands, predicts and meets the needs of the pigs for the service to human beings. * the conducting, supervising, or managing of something; especially : the careful and responsible management of something entrusted to one's care

20 Pigmanship is Pigmanship

21 GROUP HOUSING TRAINING

22 KEY TRAINING PRINCIPLES Focus on what you can control People Development Structure and predictability Accountability

23 THE PIG ADVENTURE

24 GROUP SYSTEM DIFFERENCES Safety-Pigs and People Close contact with pigs Individuality Feeding Movement Non-eaters Technology (ESF Systems)-Millennials and Gen X Sophisticated training process(esf) More intense training in animal flow Less forgiving

25 GROUP HOUSING CHALLENGES Farrowing rate Space utilization with variable FR Workman's Comp issues Sow mortality Consistent production Higher labor turnover as of now Higher labor cost/pig

26 Sow Farm Comparison Report Copyright MetaFarms, Inc Sow Complex: All Sow Complexes License Start Year/Week: 2014/01 (12/30/2013) Received: Fe End Year/Week: 2015/53 (01/03/2016) Number of Weeks: 105 SOW UNITS Le gacy Max-L Sow Farm POFSOW ALL SOW UNITS SERVICES % Repeats % Pregnant at day 35 % Pregnant at day 72 % Pregnant at day 105 Farrowing rate FARROWINGS Average total born Birth loss % Total pigs Stillborn Average Stillborn Stillborn % Total pigs Mummified Average Mummified Mummified % Average live born LACTATION PERFORMANCE Pre-wean mortality % Average lactation length WEANINGS Pigs weaned / sow Pigs weaned / sows weaned > 0 piglets Average wean age Average wean weight (pig) Pigs weaned / mated female / yr INVENTORY Average total female inventory Average gilt pool inventory as % of total female inventory Ending female inventory 7.9% 2.2% 4.4% 5.2% 90.3% 97.0% 92.4% 92.7% 87.7% 94.9% 90.6% 90.6% 86.2% 94.3% 89.5% 89.4% 85.7% 94.1% 89.0% 89.0% % 7.0% 3.6% 5.9% % 3.8% 1.1% 3.1% % 3.2% 2.6% 2.9% % 9.3% 9.2% 9.0% % 4.9% 3.9% 5.0% SOW CULLING & DEATH Total sow deaths & destroyed (mortality) % Sow deaths & destroyed 0.2% 0.1% 0.1% 0.1% Projected annual death & destroy rate % 8.6% 7.0% 5.6% 7.1%

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31 TRAINING/CULTURE = FARM PERFORMANCE Controlled Investment: Genetics Facilities Nutrition Health Technology Training for what you control

32 EMPLOYEE/PIG SAFETY SOP s Animal handling (no farm kids) Comfortable being with the animals Pig Injuries People injuries are high Movement of Pregnant animals not afraid to run

33 Direct Contact vs. Over top

34 Vision Mission Culture People Engagement

35 ACHIEVING EMPLOYEE SATISFACTION Note: Image displayed above is compliments of Table Group, Inc.

36 Todays technology ~ Metrics replace relationships Manage numbers - lead people Dunbar Principle you cannot have a close relationship in groups of more than 150 people Dr Robin Dunbar, Dept. of Experimental Phycology Oxford University

37 MASLOW'S HIERARCHY OF NEEDS

38 PORK AVENUE TRAINING Focus on Adult learning principles Need Relevance Need to be Engaged Need to be Motivated Need to be Assessed Need a sense of Achievement How People Learn 10% of what we READ 20% of what we HEAR 30% of what we SEE 40% of what we SEE and HEAR 70% of what is DISCUSSED with OTHERS 80% of what is EXPERIENCED PERSONALLY 95% of what we TEACH TO SOMEONE ELSE

39 STRENGTH FINDERS 1. Input 2. Learner 3. Ideation 4. Belief 5. Intellection

40 PRODUCTIVITY COACHING

41 Farm Manager Assistant Manager Farm Leader Assistant Manager Belstra Group Farms Labor Architecture Department Lead Breeding/ Gestation Lead Farrowing Lead Nursery Lead Finishing Lead Level 2 Support Level 2 Support Breeding/Gestation Level 2 Support Farrowing Level 2 Support Nursery Level 2 Support Finishing Level 1 Support Level 1 Support Breeding/Gestation Level 1 Support Farrowing Level 1 Support Nursery Level 1 Support Finishing Entry Level Entry Level Breeding/Gestation Entry Level Farrowing Entry Level Nursery Entry Level Finishing

42 PERFORMANCE Below Expectations Met Expectations Far Exceeded Expectations High Professional Maintain skills at mastery, leverage widely across global business. Core Contributor Develop skills to mastery, leverage at similar level. Under Performer Improve performance or manage out. Critical Contributor Maintain level of performance and develop through broader assignments Valued Contributor Develop to Far Exceed performance and broader assignments. Underachiever Provide targeted development support to improve performance or manage through. Stars Plan multiple moves. Coach/mentor to support transitions. High Potential Coach to Far Exceed in current role; plan next move. Marking Time Provide targeted development support to improve performance or manage through Low Medium High POTENTIAL

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44 SUMMARY Fundamentals are the same Innovation trumps activism American Farmer is the Ultimate Entrepreneur The rest of the world depends on us We must own Pigmanship We will win, our pigs will win! People Win!

45 QUESTIONS? Thank You Jon Hoek VP Pig Production Belstra Milling Co.