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

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Becoming the Most Trusted Namein Food and Agricultural Products

2016

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Together,we’re alwaysimproving

© 2012 Perdue

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.

2016 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.INTR

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OUR PEOPLE & PARTNERSASSOCIATESn Setting a winning safety recordn Wages, benefits and compliancen Dignity, diversity and inclusionn Equal opportunityn Associates’ rightsn Wellness Centersn Perdue Health Improvement Program

COMMUNITYn After the flood: Coming to the aid of our communitiesn A foundation for supportn Hunger reliefn Our associates caren Poultry farms: Good policies make good neighbors

AGRICULTURAL CUSTOMERSn Growing organic, (not quite) magical beans and seedsn Focusing on the farmern Milking greater dairy yieldsn Reaching around the globen A refined approach to oilseeds

BUSINESS PARTNERSn Getting better, not just biggern A values-driven approach to business partnershipsn Supporting our farm family partners

OUR FOODn Leading the way away from antibioticsn We’re committed to qualityn Food safety begins on the farm and never stopsn A dedication to health and nutrition

OUR ENVIRONMENTn Perdue AgriRecycle: Taking another major step

in protecting the Chesapeake Bayn Conserving and recycling

OUR ANIMAL CAREn Transforming the way we think about

raising chickensn Ensuring respectful animal treatmentn Our programs and practices

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We believe in responsibly producing safe, high-quality, trusted and affordable food for

customers and consumers worldwide.

OUR FOOD

In 2016, we capped 18 months of industry-leading

milestones in reducing antibiotic use by becoming the

first major chicken company to eliminate the routine

use of all antibiotics. This included removing all human

and animal antibiotics from the feed and hatchery,

eliminating the use of antibiotics for growth promotion

and, most importantly, raising animals in a way that

does not require antibiotics for disease prevention.

As part of our commitment to animal care, we will never

withhold appropriate treatment and will administer a

short, targeted course of antibiotics when a veterinarian,

prescribes them, which happens in roughly 5% of

chicken flocks.

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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 5

Leading the way away from antibioticsRe

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Our milestones in reducing antibiotic use

2014By 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.

2015No-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 2014–15 school year. That fall, Perdue acquired Niman Ranch, increasing no-antibiotics-ever pork and beef production.

February

2016Perdue converted all our frozen and refrigerated convenience products to no antibiotics ever, transforming the retail chicken market. Our no-antibiotics-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

2016Perdue 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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 6

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17 26 100%

of chickens raised with no antibiotics ever

95%of U.S.-sold products

made in the U.S.

100%of U.S.-sold products from animals

raised and processed in the U.S.

100%

CN (child nutrition) products

14 low- or reduced-sodium products

whole grain products

of food products meet the requirements of the Global Food Safety Initiative

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 7

Safe, high-quality, trusted and affordable food

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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 8

We’re committed to qualityRe

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Our quality improvement process engages all associates.

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

the company to drive continuous

improvement. We back up those

efforts with in-house microbiology

labs to test products for food safety.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 9

Food safety begins on the farm and never stops• 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

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We put an emphasis on early interventions and never let up.

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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 10

A dedication to health and nutrition

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 >

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We believe in being responsible stewards of our

natural resources.

OUR ENVIRONMENT

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 2016. 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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 12

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.

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: Taking another major step in protecting the Chesapeake Bay

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| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 13

(2014–2016) (2014–2016)

14%

FOSSIL FUEL USE:

REDUCTION over the past three years

.2%

ELECTRICITY USE:

REDUCTION over the past three years

5.9%

CO2 EMISSIONS:

(FY2014–FY2017)

REDUCTION over the past three years

(2014–2016)

REDUCTION over the past three years

4.6%

WATERUSE:

Responsible stewardship of our natural resources

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 CO2 emissions.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 14

Conserving and recyclingOur 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 CO2 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 CO2 output by 52,000 tons annually

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• Water reuse:

o Downstream reuse in our harvest plants recycles water for non-food-contact 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

We believe in responsibly raising animals for food.

OUR ANIMAL CARE

The June 2016 release of “2016 and Beyond: Next Generation of Perdue Commitments to Animal Care” represents changes in the

way we think about raising chickens.

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.

Visit perduefarms.com to learn more >

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 16

Transforming the way we think about raising chickensThe four-part plan consists of:

1. Accelerating our progress in animal care

2. Strengthening our relationships with farmers

3. Building trust with multiple stakeholder groups

4. Creating an animal care culture for

continued improvement

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of chickens raised under No Antibiotics Ever protocols

100% of hogs raised under

No Antibiotics Ever protocols

100% of turkeys raised under

No Antibiotics Ever protocols

75% of animals treatedwith antibiotics

(when required for treatment)

5%

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 17

Toll-freehotline to report

welfareviolations

gestation crates0

of contract farmers and associates handling live animals

receive welfare training

100%of animals raised under documented responsible

care protocols

100%

Responsibly raising animals

• 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

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 18

Ensuring respectful animal treatment

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Training, documented programs, audits and a toll-free hotline help ensure responsible animal care.

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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 19

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• 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 Partnership-certified farms rated GAP 2 or above.

Our USDA Process Verified Program for Responsibly Raised includes audits of hatcheries, farms and plants to ensure compliance.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 20

Our programs and practicesThese include:

• Natural sunlight

• Open, fresh-air ventilation

• Enrichments, such as bales of hay

or straw, that add complexity to the

chickens’ environment

• Access to outdoor areas that are

typically at least half the size of the

chicken house

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For more information about our Animal Care programs, visit responsiblefoodandagriculture.com.

• 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

USDA Certified Organic Chickens

The definition of free range requires only

access to the outdoors, but we know

consumers expect more than that. That’s

why all our organic and other free-range

chickens are raised on Global Animal

Partnership-certified farms that are ranked

GAP 2 or above and meet all the welfare

requirements of the National Organic Program.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 21

Our programs and practicesNo-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.

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We believe in being a responsible employer, investing in our associates’

growth, safety and well-being.

associates

OUR PEOPLE & PARTNERS

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.

As of July 2016, Perdue’s lost-time rate was about one-fourth that of the manufacturing sector.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 23

Setting a winning safety record

Visit perduefarms.com to learn more >

Perdue’s companywide OSHA Total Recordable Incident Rate is

as compared with the current poultry industry rate of

and the goods producing rate of

2.514.304.00

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of associates work full time

99.5% 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)

100%

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 24

Setting a winning safety record

Total hourly compensation for our production positions exceeds $17, including wage and benefits.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 25

Wages, benefits and complianceWe’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.

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We take pride in the diversity of our workforce and the

manner in which our facilities bring together people from

different racial, ethnic, religious and cultural backgrounds.

We’re committed to equal opportunity, and our Inclusion

Council allows our company to create an even more

diverse culture.

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

origin, gender or gender identity, sexual orientation

or religious beliefs. All associates receive mandatory

discrimination and harassment awareness training,

including their responsibility to report any suspected

violation of our policies. We also expect our vendors and

business partners to abide by the same policies when

working with our associates or while on company property.

We are committed to treating all associated with dignity, and our Inclusion Council fosters an even more diverse culture.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 26

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| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 27

Equal opportunityAs 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.

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We reaffirm our commitment to equal opportunity and thoroughly analyze all company practices to ensure discrimination does not exist.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 28

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Associates’ rights

We believe in working together in a trust-based environment with shared goals.

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.

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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 29

Wellness Centers: A prescription for better healthBe

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Our on-site Wellness Centers offer associates and dependents access to affordable primary care.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 30

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Perdue Health Improvement Program: Prevention is the best medicineOur 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.

We believe in being responsible members of the communities

where we do business.

community

OUR PEOPLE & PARTNERS

The flooding following Hurricane Matthew brought devastating hardship to the communities surrounding our operations in the eastern Carolinas. Even while our operations were still reeling, our associates were delivering ice and product donations to assist the community and volunteering to cook and provide meals for their neighbors.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 32

In the days that followed, Perdue donated

truckloads of product and ice to relief efforts,

working through Feeding America and local

agencies, and provided more than $60,000 in

financial support through the Franklin P. and

Arthur W. Perdue Foundation.

Perdue distributed $2.09 million in grants during the 2016 calendar year.

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| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 33

Perdue donated 7.1 million pounds to Feeding America during the 2016 calendar year.

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A foundation for supportThe 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 reliefWe 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.

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 2008. 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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 34

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Many of our facilities lead their communities in fundraising for United Way, March of Dimes and Relay for Life.

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.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 35

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We support right-to-farm, but also accept our role in having responsible policies.

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

OUR PEOPLE & PARTNERS

In 2016, we continued to increase the availability of organic products and support organic production. Investments in our Milford, Del., processing plant made it the largest USDA certified organic poultry plant in the U.S., and we’re now contracting with farmers in Maryland and Delaware to grow certified organic chicken.

Through our partnership with DuPont Pioneer, we announced plans to more than double acreage of Pioneer® brand Plenish® high-oleic soybeans in Maryland, Delaware, southeast Pennsylvania and southern New Jersey for 2017. Plenish high-oleic soybean oil provides a sustainable, U.S.-grown, soy-based, trans fat alternative for food companies and foodservice operators. Farmers receive a premium for growing and storing the Plenish beans.

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 37

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.

We’re also expanding contracted

production of high-erucic acid

rapeseed, a specialty seed

that yields an oil used in food

processing, cosmetics and

pharmaceuticals. Planted as cover

crop, the rapeseed reduces runoff

from farm fields and generates

additional income for farmers.

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| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 38

In 2015, Perdue AgriBusinessPurchased 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 AgriBusinessContinued 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.

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Perdue AgriBusiness continues strategic growth while keeping a focus on the farmer.

750poultry family farms

2,400grain family farms

5,500hog family farms

| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 39

million bushels of grain handled

300of feed mills are FDA inspected

100%

Responsibly helping farmers and agricultural customers

Focusing on the Farmer

Since the construction of the first grain-receiving 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.

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Agriculturally based products and services from a uniquely trusted name

• 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.

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Farmers are essential to our supply chain, and we remain focused on helping farmers succeed.

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.

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Agriculturally based products and services from a uniquely trusted name

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We have more than 50 years of experience and a supply chain that stretches from farm fields to customers around the globe.

OUR PEOPLE & PARTNERS

We believe in responsibly contributing to the economic stability of our company and

business partners.

business partners

Following a belief that Perdue’s future is getting better, not

just bigger, Perdue Foods acquired Natural Food Holdings,

including the NIMAN RANCH® brand, in 2015.

The addition of the NIMAN RANCH® brand aligned with

Perdue’s focus on premium brands and proteins with

elevated attributes, including raised with no antibiotics

ever and higher welfare standards.

The acquisition followed Perdue’s 2011 purchase of

Coleman Natural Foods, which introduced the company to

organic chicken production and broadened its portfolio to

include no-antibiotics-ever pork. That was a turning point,

as the company began incorporating Coleman Natural

Foods’ elevated animal care practices.

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Getting better, not just bigger

Perdue is the leading producer of USDA certified organic chicken and no-antibotics-ever chicken.

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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

3rd 4th Top 10

Responsibly contributing to our business partners

As a family-owned, privately held company, we make

business decisions that effectively balance our long-term

strategies with short-term requirements, while staying true

to what we believe in. That way, we can make sure our

actions bring us closer to our goals.

We have a core code of conduct and promote ethical

practices, which we share with all associates and

recommunicate to managers annually.

We also know that our ability to contribute positively to

others depends on the resources we generate through

our business. Our value of stewardship includes the

responsibility to generate profitable growth to support

the strategic plans of our company, sustaining us

into the future.

We understand that our success goes hand-in-hand with

our ability to help our business partners—including our

customers, farm partners and vendors—be successful. This

is founded in our core values of integrity and teamwork,

and extends into our strategic growth plans.

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A values-driven approach to business partnerships

Perdue is the leading producer of USDA certified organic chicken.

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Poultry Farmers We know that for many farm families, their income from poultry contracts is essential to the economic survival of their farm. That’s why we’re dedicated to helping them succeed. Our poultry contracts insulate farmers from most of the financial risks while providing stable income and rewarding top performers.

Our poultry contracts include no-antibiotics-ever and organic meat chickens (broilers), turkeys and breeders (that supply eggs to our hatcheries).

We support our poultry farmers with dedicated veterinarians, flock advisers, behind-the-scenes poultry

health and nutrition research, and laboratories that rival many universities.

Coleman Natural Hog Farmers Farmers who raise hogs for sale to Coleman Natural put in extra work to meet our care standards, including raised with no antibiotics ever and an all-vegetarian diet. In turn, they receive a premium price for their animals. We help them with veterinary and technical support.

Niman Ranch Farmers Niman Ranch continues to work with small family farms, following the same protocols that continue to distinguish Niman Ranch. To learn more, visit nimanranch.com.

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Supporting our farm family partnersRe

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We’re dedicated to helping our farm families succeed.

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

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