SMITHFIELD PACKING COMPANY BMPs Training Conference 2013 – Chicago, IL 1

2 SMITHFIELD PACKING COMPANY BMPs

Smithfield Packing Company BMPs Sustainability Ideations – Tar Heel Critical Control Point Operational Controls – Wastewater Operations EMS Training for Plant Managers & Senior Staff Weekly Environmental/Sustainability Call Entering PMs related to Significant Aspects in SAP 3

SUSTAINABILITY 4

5 Company Joel MillerSmithfield Keith BaileySmithfield Ruth DebritoSmithfield Paul WrightSmithfield Wayne CainSmithfield Kirby ElkinsSmithfield Frank JacksonSmithfield Jarred TurnerSmithfield Buddy HarrisSmithfield Tom GreenSmithfield Bethany McLeanSmithfield Walter WardlawSmithfield Calvin HeldSmithfield Lee CaseySmithfield Rocky BeemSmithfield Scott SchoolmeestersUS Nick FrancoUS Neil McAdamWorld Water Bill ReingansHydro Wade TurnerReid Rob HendersonChem Travis HitchcockWaste Roy CarawanWater Reuse Jimmy SmithFour Sean FallonMcGill Environmental Stephanie RichardsonDontech DL CattonDontech

Plant Overview 6 Year Built: 1992 Property Size: 888 acres Building Size: 1million sq ft Capacity (5 day wk): Fresh Pork – 191,000 hd/wk Converted Lbs – 11,725,000 lbs/wk Marination - 250,000 lbs/wk Lbs Distributed – 33,000,000 lbs/wk Headcount: –Hourly = 4,439 –Salary = 300 Union status: 56 % Union Average Wage Rate (Oct 2012) –Hourly = $11.85/hr –Loaded = $19.75/hr

7 Surface Water Plant Main Engine Room Back-up Generators WW Water Plant

Relevant Info Local Fueling Cost ~ $3.80 / gal diesel (non highway grade) Refrigerated Storage Trailer $ / month Utility Cost – Natural Gas $5.57 / MCF – Electric $ / KWH – Water $2.02 / 1000gal Utility Usage – Natural Gas 759,642 MCF/yr – Electric 155,731,838 KWH/yr – Water 809, gal/yr Spotter Service – Internal 8

PLANT TOUR 9

TEAMS 10 Team #1Team #2Team #3 FacilitatorMillerBaileyWright ScribeGreenDeBritoTurner J Members HendersonRichardsonDL Catton SchoolmeestersCarawanBeem FrancoHeldMcLean CaseyJacksonHarris ReingansCainWardlaw SmithMcAdamTurner W ElkinsHitchcockFallon

Identified Opportunities Plastic Recycling / Recycling Hub – Waste Industries Shipping Condensers – Switch to Final Effluent versus Potable Water Cryovac Bag Tails-Recyclable Heat Exchanger- Boiler Blowdown Water and Boiler Feed Water 11

Brainstorming Generates large number of ideas Goal is for participants to create new ideas off of other ideas Seems like a “no brainer,” but right approach can improve idea output Rules for Brainstorming  No one interrupts, censors, criticizes, or praises  Questions are allowed only to clarify and idea  Hitchhiking off other ideas is encouraged  Freewheeling, unrelated ideas are okay here 12

How to Brainstorm Write a description of the brainstorming objective – Leads to more effective session One person records the ideas so all can see – Flip chart, white board, or computer/projector will all work Each person can offer one idea per turn – Avoiding “shout outs” keeps all participants actively involved People can pass on one turn but come back in later if they think of something – Someone else’s idea may trigger a new idea later on When everyone passes on a turn, the session is over Compile the idea list for future use 13

14 Determining Complexity Constraint:0123Total Technical DifficultyThe opportunity is a single problem that is well understood The opportunity is a made up of a number of problems some of which are well understood The opportunity is a made up of a number of problems none of which are well understood The opportunity is made up of problems that we have applied rigorous analysis to but still don’t understand Resources Needed to Deliver Savings InternalInternal plus local suppliers/contractors External within supply chainExternal within supply chain & external suppliers/contractors Time Needed to Realize Savings <3 months3-6 months6-9 months>9 months Level of Capital/Expense Required Expense Only<$100,000 Capital (Richter Approval only) >$100,000 and <$1,000,000 Capital >$1,000,000 Capital **Assess the constraint against the criteria on the right & apply the score in the "Total" column which best describes it. After scoring all 4 constraints, total up the complexity score at the bottom & apply to the O&A column 0. 0

Tar Heel Combined Ideation List.xlsx INPUT/OUTPUT 15

Critical Control Points Wastewater Operations Critical Control Points (CCP) are areas in a process where something is measured to determine Examples of CCPs in a wastewater system are: – Flow – pH – Turbidity – Oxygen Concentration – MLSS – Chemical Feed 16

Grayson\2013 Critical Controls Grayson xlsx Grayson\2013 Critical Controls Grayson xlsx CCP Example – Grayson, KY 17

Plant Manager Training What is EMS Benefits of EMS Goals of EMS Key Components of EMS – Roles – Environmental Aspects – Training – Communication – Controls – Monitoring & Measuring – Corrective Actions 18

Plant Manager Training Reviewed NOVs Identified Root Causes – Mechanical – Program Execution Corrective Actions – Equipment Upgrades – Equipment PMs in SAP – Identify Critical Spares – Improve EMS Training – Improve Awareness – Improve Participation – Improve Communication – Weekly Calls with PM 19

Weekly Environmental/Sustainability Call Held each Tuesday qt 1130 – VPs, Plant Managers, ECs Agenda – NOVS – Spills/Releases – SMS Events – Regulatory – ISO – “SOP Of the Week” 20

PMs in SAP Prior top SAP, PMs were in Tab Ware Included – Air Pollution Control Equipment for Title V Compliance – Weekly/Monthly Inspections for SWPPP and SPCC compliance – WW Equipment Quick transition to SAP resulted in these items not being programmed into SAP Ongoing effort to migrate these items and more into SAP 21