Managing for Quality. Mark Brinkmann Diamond Pet Food Company

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1 Managing for Quality Mark Brinkmann Diamond Pet Food Company

2 Who is Diamond Pet Foods

3 We are not as much like these folks

4 As we are like these guys

5 Quality Mission To seek out and implement quality solutions designed to increase customer satisfaction.

6 Quality Objectives To seek out and hire capable people of proven character. To research and implement processes with proven performance, never remaining static. To provide our people with the best tools and equipment, never being a slave to a budget. To establish close and open communication channels with our customers. (I talk to pet owners every week.)

7 Quality Organization Microbiologist Quality Director Safety Director Micro Control HACCP Plan Facility Sanitation Laboratory Validations Mycotoxins NIR Ingredient Assurances Facility Audits Vendor Audits Food Defense Metal Detection Pest Control Social Audits

8 Quality Organization Admin Director Customer Database Direct Traffic Manage Websites Veterinarians Manage Pet Illnesses Train Customer Service Chart product issues

9 Quality Issues Specific to Rendered Ingredients The #1 issue is consistency Nutritional Content Oxidative Stability Grind Size Color

10 Strategy for Using Rendered Protein Meals: More Meat Matters Protein Meal %Protein Protein Meal %Ash % Required to Deliver 20% Protein Finished Product Ash % Protein Meal Meat Meal Lamb Meal Fish Meal Chicken Meal Chicken BPM Low Ash CBM

11 Quality Enforcement: Cooperation Never Intimidation Diamond s philosophy is to work off of trends more so than off of individual load results. Work toward mutual expectations. We will work through a grind size, color and even a marginal nutritional issue on an individual load, while rancidity and foreign material issues are always going to be nonnegotiable.

12 The New Regs: What s Missing from the Conversation?

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16 The AFL-CIO estimates a loss of 3 million manufacturing jobs and 850,000 professional service and information jobs overseas since 2001.

17 The Perfect Industry Based in America Not predisposed to exporting jobs. Able to easily outcompete any foreign competitor attempts in the US marketplace. Most of its inputs are also America-based Capable of competing for market share overseas, including Asia, Europe, and South America.

18 The Perfect Industry Manufacturing Jobs Superior wages and benefits. Assets that provide a tax base for schools and public services. Based in Rural America

19 The Perfect Industry Environmentally Friendly >10%, make that >25% of its inputs are from recycled materials, saving space in American landfills, protecting the air and ground water. Minimal discharge of any air particulates or water contaminants.

20 The Perfect Industry Products are Safe for Consumers Product safety issues represent less than 0.01% of all shipments within this product s category.

21 The Perfect Industry: Dry Petfood Based in America Not predisposed to exporting jobs. No company has every closed an American dry pet food plant, in order to open a foreign plant to service American consumers. Not afraid of foreign competition Only US and Canadian competitors in US market. Most of its inputs are also America-based Ingredients, packaging, freight, laboratory services, pest control, uniforms, safety equipment, sanitation supplies, etc. Capable of competing for market share overseas, including Asia, Europe, and South America. The only thing that can stop us are artificial trade barriers!

22 The Perfect Industry: Dry Petfood Manufacturing Jobs Superior wages and benefits. Pay is $12-$20/hour. Healthcare is 100% for employee, spouse, and dependents with no payroll deductions. Disability plans 100% paid by Diamond. 401K, 100% match up to 4%, plus 8% profit sharing bonus. Assets that provide a tax base for schools and public services. Based in Rural America Meta, MO, Gaston, SC, Lathrop, CA, Ripon, CA

23 The Perfect Industry: Dry Petfood Environmentally Friendly >35% of our Ingredients are co-products from the food industry. Minimal discharge of any air particulates or water contaminants. All air particulate equipment (dryers, extruders, grinders, drags/legs) are enclosed All water discharge is treated and regularly tested for compliance.

24 The Perfect Industry: Dry Petfood Products are Safe for Consumers Product safety issues represent less than 0.01% of all safety issues within this product s category.

25 CDC Yearly Estimates of Foodborne Illness 24,000,000 23,000,000 22,000,000 21,000,000 20,000,000 19,000,000 18,000,000 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - Produce Meat & Poultry Dairy & Eggs Fish & Shellfish Petfood

26 CDC Yearly Estimates of Foodborne Deaths 1, Meat & Poultry Produce Dairy & Eggs Fish & Shellfish Petfood 100 BC

27 The issue is that of the disproportional application of FDA scrutiny on micro issues; an environment where money and resources are diverted away from the prevention of real threats to pets and public safety. What are you going to do about becoming a part of the solution to this problem?