becoming the most trusted name in food and ... - perdue farms · at perdue farms, stewardship is...
TRANSCRIPT
Becoming the Most Trusted Namein Food and Agricultural Products
2016
CO
MPA
NY S
TEW
ARDS
HIP
REPO
RT
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
ODU
CTI
ON
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
TABL
E O
F C
ONT
ENTS
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
spon
sibl
y pr
oduc
ing
safe
, hig
h-qu
alit
y, a
fford
able
food
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
Resp
onsi
bly
prod
ucin
g sa
fe, h
igh-
qual
ity,
affo
rdab
le fo
od
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
spon
sibl
y pr
oduc
ing
safe
, hig
h-qu
alit
y, a
fford
able
food
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
Resp
onsi
bly
prod
ucin
g sa
fe, h
igh-
qual
ity,
affo
rdab
le fo
od
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 >
Resp
onsi
bly
prod
ucin
g sa
fe, h
igh-
qual
ity,
affo
rdab
le fo
od
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
Resp
onsi
ble
stew
ards
hip
of o
ur n
atur
al r
esou
rces
| 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
Resp
onsi
ble
stew
ards
hip
of o
ur n
atur
al r
esou
rces
• 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
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
Resp
onsi
bly
rais
ing
anim
als
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
Resp
onsi
bly
rais
ing
anim
als
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
Our programs and practicesRe
spon
sibl
y ra
isin
g an
imal
s
• 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
Resp
onsi
bly
rais
ing
anim
als
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.
Resp
onsi
bly
rais
ing
anim
als
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
Bein
g a
resp
onsi
ble
empl
oyer
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.
Bein
g a
resp
onsi
ble
empl
oyer
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
Dignity, diversity and inclusionBe
ing
a re
spon
sibl
e em
ploy
er
| 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.
Bein
g a
resp
onsi
ble
empl
oyer
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
Bein
g a
resp
onsi
ble
empl
oyer
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
ing
a re
spon
sibl
e em
ploy
er
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
Bein
g a
resp
onsi
ble
empl
oyer
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.
After the flood: Coming to the aid of our communitiesRe
spon
sibl
e m
embe
rs o
f our
com
mun
itie
s
| 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.
Resp
onsi
ble
mem
bers
of o
ur c
omm
unit
ies
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
Our associates careRe
spon
sibl
e m
embe
rs o
f our
com
mun
itie
s
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
Poultry farms: Good policies make good neighborsRe
spon
sibl
e m
embe
rs o
f our
com
mun
itie
s
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.
Growing organic, (not quite) magical beans and seedsRe
spon
sibl
y he
lpin
g fa
rmer
s an
d ag
ricu
ltur
al c
usto
mer
s
| 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.
Resp
onsi
bly
help
ing
farm
ers
and
agri
cult
ural
cus
tom
ers
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.
| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 40
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.
Resp
onsi
bly
help
ing
farm
ers
and
agri
cult
ural
cus
tom
ers
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.
| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 41
Agriculturally based products and services from a uniquely trusted name
Resp
onsi
bly
help
ing
farm
ers
and
agri
cult
ural
cus
tom
ers
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.
| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 43
Getting better, not just bigger
Perdue is the leading producer of USDA certified organic chicken and no-antibotics-ever chicken.
Resp
onsi
bly
cont
ribu
ting
to
our
busi
ness
par
tner
s
| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 44
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.
| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 45
A values-driven approach to business partnerships
Perdue is the leading producer of USDA certified organic chicken.
Resp
onsi
bly
cont
ribu
ting
to
our
busi
ness
par
tner
s
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.
| 2016 COMPANY STEWARDSHIP REPORT | | GO TO TABLE OF CONTENTS | PAGE 46
Supporting our farm family partnersRe
spon
sibl
y co
ntri
buti
ng t
o ou
r bu
sine
ss p
artn
ers
We’re dedicated to helping our farm families succeed.