Corporate Sustainability ProgramBill GillAugust 5, 2011

OUR COMMITMENTS

Presentation Overview

• Our Sustainability Program

• Current Status

• What’s Next

Smithfield Foods’ CSR/Sustainability Focus

Environment

Food Safety Animals

Employees

Community

Good Food.Responsibly.

Structure Overview:

• Smithfield Foods Corporate:• Foods’ Executive Sustainability Committee sets goals and

targets for IOCs• Foods’ Sustainability Council maintains communications,

oversight, database and scorecards

• Each IOC:• Has IOC level CSR/Sustainability Coordinator • Manages goals and targets • Provides recommendations to Foods and participation on

Council• Reports to Foods (data used for CSR Report)

Accountability For Each IOC:

• Sustainability goals and targets in each IOC strategic plan

• Larry Pope will review IOC performance/year

• Incentives

• Internal Recognition (by CEO or highlighted with the Board)

• External Recognition (press releases, customers, etc.)

Foods Committees:

• Board level Sustainability, Community and Public Affairs Committee:• Wendell H. Murphy, David Nelson, Paul S. Trible, Jr. (Chair)

• Corporate level Executive Sustainability Committee:• George H. Richter

• Joseph W. Luter, IV

• Robert W. Manly, IV

• Dennis H. Treacy (Chair)

• Executive Sustainability Committee reports and meets annually with CEO

• Jerry H. Godwin

• Michael E. Brown• Timothy O. Schellpeper• Joseph B. Sebring

Your Partners:

• Your IOC Environmental Coordinator• John Meyer at John Morrell• Keith Bailey at Smithfield Packing• Susan Murphy at Farmland• Kraig Westerbeek at Murphy-Brown

• Your IOC Sustainability Coordinator• John Meyer at John Morrell• Jeff Gough at Smithfield Packing• Mark Garrett at Farmland• Don Butler at Murphy-Brown 

More Partners:

• Smithfield Foods Environmental Affairs

• Stewart Leeth (Legal / Overall Administration)• Bill Gill (Logistics / Implementation)• David Townsend (Hog Production / FFA / Learners to Leaders)• Kathleen Pope (Social Media / YouTube / Twitter)• Sylwia LaBudde (WebMetrics / EMS)• Rocky Beem (Regulatory)• Eric Lassalle (Energy / GHG’s)• Keira Ullrich (PR / Investor Relations)

• Let us help you make the program work for you

Goals and Targets for Each IOC: Environmental

Goals => Eliminate NOVs and reduce natural resource demand

IOC Targets (all by FY):

• Energy reduction => 10% reduction over 2008 (normalized) by 2016

• Water use reduction => 10% reduction over 2008 (normalized) by 2016

• Solid waste reduction => 10% reduction over 2008 (normalized) by 2016

• GHG emissions reduction => 10% reduction over 2008 (normalized) by 2016

Goals and Targets for Each IOC: Community

Goals => Provide food to the needy and enhance education in our communities

IOC Targets:Pork Group IOCs:

• Provide needy with 1 million servings/year• Coordinate all food relief under Helping Hungry Homes initiative• Add and maintain Learners to Leaders programs (goal: a minimum 2/IOC)

Facility/Farm Division Targets: • Participate in 2 community events (e.g., FFA environmental competitions

judging) where each major facility/farm division located• Clean Community Program - Sponsor a minimum of 1 community-level

cleanup project/year • Participate in WWMD

Goals and Targets Each IOC: Animal Well-being

Goal => Keep our animals safe, comfortable, and healthy IOC Targets:• Hog Production IOC Must Maintain and Build Upon Industry

Leadership• Maintain 100% PQA Plus Certification and site assessments• Continue pen gestation conversion

• Pork Group IOCs Must Demonstrate Continuous Improvement and Systematic Approach to Humane Handling• Maintain written program, training and 3rd party audits at slaughter plants

according to AMIF Recommended Animal Handling Guidelines and Audit Guide: A Systematic Approach to Animal Welfare

• Maintain TQA certification for all drivers• PQA Plus Certification and site assessments for suppliers by 2011

Goals and Targets For Each IOC: Employees

Goal => Reduce employee injury rates

Facility/Farm Division Targets:

• Meet or beat company goals based on general manufacturing industry national average for injuries

• 10-hour general industry training by all safety leadership

• Safety Roundtable meetings at all locations

• Achieve hourly employee engagement to 25% by FY 2015

Goals and Targets Each IOC: Food Safety

Goals => Deliver safe, high quality meat products with no recalls

IOC Targets

• Achieve superior food safety program• Obtain 100% Global Food Safety Initiative (GFSI) certification

for all facilities and 100% USDA Process Verified

• Nutrition• Assure wide variety for different diets and needs• Assess nutrition issues like salt content, obesity, etc.

Communication and Recognition

Goal => Increase awareness of our programs and achievements

IOC Targets

• Undertake a minimum of 2 speaking engagements/year

Facility/Farm Division Targets

• Participate each year in 1 or more state and/or trade association environmental awards program

• Minimum of 2 meetings/year with community stakeholders to highlight programs and obtain input and provide report

• Participate in Foods’ environmental awards programs

Current Status

• Data collected and compiled (after extensive review and correction)

• Preliminary results discussed with IOC CSR/Sustainability Coordinators

• Assessing weighting and results (Safety adjustments and NOV scoring)

• Finalizing scores and reporting

• Everyone looks pretty good

Data Collection and Scoring:

What’s Next

Reporting

• Finalize scores with IOC Sustainability Coordinators and Dennis Treacy

• Report results to the Executive Sustainability Committee and CEO

• Presidents to distribute information throughout their respective organizations

• Plan / Do / Check / Act at all levels

• Press Release with highlights of program and results

Ongoing To Do’s

• Work with your Coordinators to determine by who and how Sustainability Program targets will be addressed

• Continue to make inputs to WebMetrics. Look for the **SMS** designator

• Address any new responsibilities

• Provide support to new Team members

• Ask questions/provide input/make comments

Corporate Sustainability ProgramBill GillAugust 5, 2011

QUESTIONS?