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Smithfield Environmental Conference John Morrell Food Group – Sustainability Update June 6, 2012.

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Presentation on theme: "Smithfield Environmental Conference John Morrell Food Group – Sustainability Update June 6, 2012."— Presentation transcript:

1 Smithfield Environmental Conference John Morrell Food Group – Sustainability Update June 6, 2012

2 18 Operating Facilities; 9,800 employees $3.7 Billion in sales per year (FY2011) Products: Hams; Smoked Sausage; Hot Dogs; Deli Meats; Bacon; Pulled Pork; Dry Sausage; Pet Food; and Spices Major Brands: John Morrell; Curly’s; Armour; Eckrich; Margherita; Healthy Ones; Patrick Cudahy; Carando; Kretschmar; Premium Pet Health; and Saratoga The John Morrell Food Group


4 This presentation will focus on our sustainability initiatives in the areas of: Environmental Employees Food Safety & Quality Communities Sustainability Initiatives

5 100% Compliance, 100% of the Time! ECAP Audit Scores: St. Charles FY2007: 68%  FY2010: 98% Curly’s:FY2008: 83%  FY2012: 95% PPH-CentralFY2005: 58%  FY2010: 93% Omaha:FY2007: 73%  FY2011: 93% Mason City: FY2007: 78%  FY2012: 90% Springdale:FY2002: 70%  FY2010: 90% St. James:FY2007: 58%  FY2010: 90% Mohawk:FY2003: 69%  FY2010: 89% 814 Americas: FY2007: 69%  FY2012: 86%

6 100% Compliance, 100% of the Time! NOVs: CY2008:1 CY2009:4 CY2010:16 CY2011:11 CY2012:0 – Year to Date

7 Maintain ISO 14001 Registration ISO 14001 Surveillance Audits: Springdale (2010): No Minor Nonconformance, No OFIs Omaha (2011): No Minor Nonconformance, No OFIs Sioux Falls (2011): One Minor Nonconformance, No OFIs Mason City (2011): One Minor Nonconformance, One OFI Golden Crisp (2012): No Minor Nonconformances, Two OFIs Mohawk Packing (2012): One Minor Nonconformance, No OFIs Patrick Cudahy (2012): One Minor Nonconformance, No OFIs TOTAL:7 Audits4 Minors 3 OFIs

8 10% Less in FY2016 as Compared to FY2008 (Production Weighted) : Water Usage; Energy Usage; and Solid Waste Disposal

9 Water: Saratoga:-90% Omaha+13% Golden Crisp:-50% PPH-Central+17% Springdale:-44% PPH-West:+17% St. James:-21% Curly’s Foods+24% St. Charles:-16% Springfield+44% Mohawk:-9% Patrick Cudahy:-9% Junction City -9% Sioux Falls -8% 814 Americas:-7% Mason City -6% Peru-3%

10 Natural Gas: Golden Crisp-75%Omaha+2% Saratoga-70%Springfield+5% Mason City -19%Mohawk+6% St. Charles:-17%814 Americas:+7% Junction City -16% Peru+16% Springdale-13% Patrick Cudahy+23% PPH-Central:-2% Curly’s Foods+37% St. James:-1% PPH-Central:+111%

11 Electricity: Golden Crisp-48%Springdale:+2% Saratoga-31% Peru+3% PPH-West-16% St. James:+4% Patrick Cudahy-14% Curly’s Foods+11% Mason City -13% Springfield+13% St. Charles:-11% PPH-Central+13% 814 Americas-10% Omaha+28% Sioux Falls-8% Junction City -6% Mohawk:Even

12 Solid Waste: Peru-69% Golden Crisp+4% St. Charles:-53% Curly’s Foods+8% Saratoga-51% Omaha+8% PPH-West-46% Springdale+30% Springfield-34% PPH-Central+33% Mason City -29% Patrick Cudahy-21% Sioux Falls -20% St. James:-10% Junction City -10% Mohawk-5%

13 Environmental Metrics Summary: From FY2008 to FY2012, on a production weighted basis, the John Morrell Food Group achieved a: 12% Decrease in Water Usage 7% Decrease in Natural Gas Usage 7% Decrease in Electrical Usage 14% Decrease in Solid Waste Disposal (even with a 4% decrease in overall production)

14 Packaging Reduction: John Morrell, Sioux Falls, SD and Armour-Eckrich, St. James, MN recently completed a lid and tub packaging reduction project that uses less plastic in their lunch meat products. With over 25 million lids/tubs per year, they have reduced plastic usage by: 135,000 lbs per year and saved more than $590,000 per year.

15 Other Cool Stuff: Peru – Zero Landfill Sioux Center and Sioux Falls – Land Application of Sludges Springdale – Compost of Cellulose Casings Springfield – Full Facility Lighting Retrofit Patrick Cudahy – Wisconsin DNR “Green” Tier Program Patrick Cudahy – US DOE “Save Energy Now” Program 814 Americas – Recognized by New Jersey DEP and entered into NJ Environmental Stewardship Program for it outreach to the local community regarding sustainability and environmental stewardship

16 Employees JMFG Totals: 20102011 % Reduction DART3.84  3.0920% DAW1.27  1.21 5% Behavioral Risk Improvement (BRI) in St. Charles, Omaha, Sioux Center, Springfield, and soon in Peru

17 Employees

18 Food Safety and Quality May 2, 2012: American Meat Institute Foundation Scientific Achievement Award to John Morrell’s: Dr. Warren Dorsa, PhD., VP Food Safety & Quality & Dr. Peter Taormina, PhD., Principal Microbiologist For cutting edge research relative to listeria in hams, bacon, and hot dogs.

19 Communities - Helping Hungry Homes In FY2012, the John Morrell Food Group donated 1.46 million food servings to people in need through the Smithfield Foods Helping Hungry Homes program.

20 Communities - Learners to Leaders Saratoga Specialty Foods in Bolingbrook, IL partnered with Junior Achievement of Chicago and the Taco Bell Foundation for Teens and hosted a Financial Awareness event for 180 high school students, with topics including budgeting; identity theft; career paths; college financial aid to better prepare the students for life after high school. They also hosted local students for a Job Shadowing day at the Saratoga facility.

21 Communities - Learners to Leaders John Morrell in Sioux Falls has partnered with Southeast Technical College and funded their Learners to Leaders program for the past 5 years and has graduated 137 students from the program.

22 Charitable Donations From May 1, through July 4, 2012 Eckrich will donate $0.05 for each purchase of specially marked product up to $200,000 to support Operation Homefront, whose mission is to provide emergency financial aid and other assistance to families of our service members.

23 Charitable Donations – Women Heart In February 2012 the John Morrell Food Group and Healthy Ones brand made a $50,000 donation to Women Heart to help prevent heart disease in women.

24 Charitable Donations In November 2011 the John Morrell Food Group and Healthy Ones brand made a $50,000 donation to the Breast Cancer Research Foundation to help increase breast cancer awareness.

25 Communities – Tornado Response Springfield, MA – June 1, 2011 Armour-Eckrich, Springfield partnered with Red Cross and donated 5,000 lbs of ready to eat meat products and assisted “Rebuilding Springfield” where facility representatives painted and raked homes directly affected by the tornado.

26 Communities – Environmental Classroom Mason City, IA – May 2011 Armour-Eckrich, Mason City partnered with the Iowa Department of Natural Resources and hosted 255 fifth graders. Using WWMC kits, they conducted water testing and discussed water quality and pollution with the students.

27 FY2012 Sustainability Scorecard Junction City103%Golden Crisp85% Saratoga 103% Springdale83% Mason City102%Springfield82% Peru100%Patrick Cudahy79% 814 America93%PPH-West78% St. Charles91%PPH-Central74% St. James90%Mohawk 72% Sioux Falls89%Curly’s Foods72% Omaha88%

28 Committed to Social Responsibility

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