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General Mills SustainabilityConnecting the Dots: CCAs’ Impact Beyond the Field

January, 2015

General Mills at-a-glance

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My Farm

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4

The Sustainability Imperative

Conserve Resources and Strengthen Communities Upon Which our Business Depends

5

Economic Efficiencies Risk Management

Growth

Value

Levers

6

Internal Supply Chain MetricsF12 Results v F15 Goals

Waste(lbs waste/lbs

produced)

Water(gallons/lbs

produced)

Energy(Kwh/lbs

produced)

Greenhouse Gas

(m-Tons/lbs

produced)

Packaging(% Improved)

Logistics(gallons/ton

shipped)

2015

Goals-50% -20% -20% -20% 40% -35%

F12

Total Co-40% -10% -10% -11% 52% -17%

Extend Packaging Metric to 60% by 2015

Volume deleverage -7% F12 v F10

Energy team Big G

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Why Sourcing Matters

41%

14%7%

8%

12%

1%

3%

12%2%

0%

Agriculture

Packaging supply chain

Ingredient manufacturing

Product manufacturing

Distribution (Retailing)

GMI DC

GMI Transportation

Consumer/customer preparation

Consumer/customer storage

Consumer/customer transport

82%

14%

3%

1%Agriculture

Packaging supply chain

Ingredient manufacturing

Product manufacturing

Distribution (Retailing)

GMI DC

GMI Transportation

Consumer/customer preparation

Consumer/customer storage

Consumer/customer transport

GHG Emissions Water Consumption

GMI is working on Sustainability programs across:

75% of our GHG footprint

99% of our water consumption

Health

Environment

Sourcing

Workplace

Communities

Sourcing

OUR GOAL is to sustainably

source the raw materials we use in

our products. We are committed

to sustainably sourcing 100

percent of our 10 priority

ingredients by 2020.

Our Strategies

• Increase sustainability of

ingredients

• Collaborate to improve global

water stewardship

• Advance socially responsible

supply chains

Health

Environment

Sourcing

Workplace

Communities

Increasing sustainability of ingredients

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10

Definitions of Sustainability

• Sugarcane

• Palm Oil

Certification

• Row Crops: oats, wheat, sugar beets, corn

• Dairy

Continuous Improvement

• Vanilla

• Cocoa

Origin Direct Investment

• Fiber Packaging

• Animal welfare

Self Verification

The Power of Field to Market

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Idaho Regional Engagement: “Paving the Way” for FTM

0

.

.

Grower Pilot Participants Capturing

Data with Land.db

Sustainable Sourcing Claims Downstream

Efficiency Delivered Through Shared Cost

Benchmarks

Sourcing Region

Data

Facilitators

(boundaries & participation represent sourcing by GMI &

other downstream companies)

Field to Market

Opportunities &

Incentives for

Improvements

GMI

Wheat

Potato

Processor

& Shipper

Sugar

Processor

SE ID Crop

& Rotation

Analyses

Grower &

Regional

Story

Learning’s from Aggregate

Information

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Analyzing the Sustainability Story of Southern Idaho Wheat Production

The Big Picture: Producers Making a DifferenceWhy measure?Global attention to agriculture’s impact on the environment is turning to each individual's contribution. We live in a resource

constrained world with an increasing population. To meet the future demand for food, we must increase efficient production while

sustaining our natural resources.

Did you Know?

Wheat is utilized in dozens of consumer food products and worth more than $500

million dollars to the Idaho economy.

How are we doing? (Focus areas & progress)• Program is now in it’s fifth year of data collection

• Expansion of rotational crops to include spring wheat, winter wheat, potatoes, sugar beets and barley

• Individual Grower Reports provide relevant feedback to each grower and Grower Workshops

provide guidance for improvements

What have we learned? (Understanding trade-offs & opportunities)

• Baseline datasets need a minimum of three years of data, with 4-5 years of data preferred

• Economics, weather and rotation have major influence on sustainability.

• Other contributing factors include quality attributes, pest pressure and

the yield potential of the field

21 growers

115,500 acres characterized

4 years of data

6 Field to Market metrics

5 crops characterized

1 farm management recordkeeping systemNotes: This evaluation benchmarks pilot participants relative to the 5 year average for the corresponding Crop Reporting Districts. A positive

value (upward arrow) suggests improvement in performance and a negative value suggests a decline in performance.

Environmental Performance for Idaho Wheat Production (relative to benchmarks)

+18%

GHG Emissions

CO2

Soil Carbon

+11%

Energy

+16%+10%

Land Use

+10%

Nitrogen Use Soil Loss

+14% +10%

Yield

Water Use

+14%

Human Element

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GMI’s 7 Regional Engagements

• Snake River (SE Idaho):– Wheat:

• 115,000 acres

– Wheat, potatoes, sugar beets & barley– Partner: Syngenta

• Western Canada: Manitoba & Saskatchewan:– Cereal grain: Oats & wheat– Oil: Canola

– Pulses: Peas & Lentils– Partners: Pulse Canada, Canola Growers, POGA, Farmers Edge & Agri-Trend

• Red River Valley:– Sugar Beets, – Partners: RRVSGA & American Crystal Sugar

• N Plains:– Wheat & canola– Partners: ADM, CHS?

• Ohio:– Wheat, corn & soy

– Mennel Milling, EDF, Syngenta & Farmers Edge

• Wisconsin:– Dry Milled Corn & soy

– Didion Milling

• S Plains:– Under construction

– Wheat

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CCA’s are key to Scaling FTM

• Field to Market history:

– Yesterday: Cloud based independent Field Print calculator

– Today: Supply Chain initiatives

– Tomorrow: CCA’s:

• Scale with established & trusted crop advisors

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Innovation & Partnerships

• Walmart & General Mills Innovation Challenge

• Innovation Champions:

– United Suppliers Sustain Program

– Ag Technology Corp Adapt N

• Bringing innovation to our grower engagements:

– Idaho

– N Plains

– Red River Valley

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Thank You & Contacts

• Global Responsibility Report

http://www.generalmills.com/~/media/Files/CSR/2013_global_respon_report.ashx

• 10 x 20 Press Releasehttp://www.generalmills.com/Home/ChannelG/NewsReleases/Library/2013/September/sourcing_10

• Steve.Peterson@genmills.com

GLOBAL

SUSTAINABILITY

COMMITMENTS

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GLOBALSUSTAINABILITY

COMMITMENTSWhy Sustainability Matters

• Sustainability fits with our core values

• These types of commitments are very important for our consumers, improving the trust in our foods:

• It strengthens the equity (integrity, trust, progress) in our brands

• It drives relevance for our strategic categories

• It builds corporate reputation

• And it supports delivery of business results

GLOBALSUSTAINABILITY

COMMITMENTSWhy Sustainability Matters

0

10

20

30

40

50

60

70

80

90

100

Manufacturing Sector

Transparency withStakeholders

Competitiveadvantage

Risk management

Stakeholder pressure

Company Culture

Brand Reputation

What drives Sustainability Reporting? Consumers Care:

• Increased demand for transparency

• What is in our food?

• Where does it come from?

• Build trust

• Connect with consumer on values

• Community, Health, Environment

• Quality

• Talk about the ingredients and the people who put so much time and love into growing that food

From Ernst and Young LLP, “Value of sustainability reporting”, 2013

GLOBAL SUSTAINABILITY

COMMITMENTS

Supporting the livelihoods of individuals,

families and communities that rely on us

and on whom we depend.

Conserving natural resources where our

ingredients are sourced and our foods are

made.

Driving consumer demand by building

trust and love for our foods.

Visit K Connect to learn more about the

company’s new sustainability

commitments.

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GLOBALSUSTAINABILITY

COMMITMENTS2020 Commitments

GLOBALSUSTAINABILITY

COMMITMENTSResponsible Sourcing

• We are focused on enriching the lives of the farmer families, and/or communities from which we source key ingredients.

• We will support smallholder farmers and women growers

GLOBALSUSTAINABILITY

COMMITMENTSResponsible Sourcing by 2020

By 2020, we will responsibly source top 10 ingredients and materials as defined by continuous improvement and direct investment

• Corn• Rice• Wheat• Potatoes• Sugar Beet & Cane• Oats

• Vanilla• Palm Oil• Cocoa• Honey• Fruit

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GLOBALSUSTAINABILITY

COMMITMENTSResponsible Sourcing Metrics

We will be measuring continuous improvement within our supply chain on these main areas:

• Resilience to Climate Change

• Greenhouse Gas Emissions

• Fertilizer Optimization

• Water Use and Water Quality

• Soil Health

• Social Metrics

GLOBALSUSTAINABILITY

COMMITMENTSResponsibly Sourcing U.S. Corn

• Partnering with Field to Market and Bunge, our corn grit supplier:

• This was enabled by:– Interested growers because this engagement was part of a

quality initiative– Engaged supplier who was interested in building better and

stronger relationship with growers – Brand pull from the growers: knowing that their corn is going

to food that their family loves

• What is missing? CCAs and ag retailers – Kellogg and Bunge can do more to engage CCAs and local trusted experts

2009 2015

Growers 22 100

Acres Measured 2,000 40,000+

Representative Acres 10,000 250,000+

GLOBALSUSTAINABILITY

COMMITMENTS

Responsibly Sourcing from the Great Lakes

• A $10 million grant to growers to improve water quality and reduce runoff in the Saginaw Bay by working with farmers to better plan nutrient management, limit tillage and other BMPs

• Kellogg will be working with sugar beet and wheat growers to use Field to Market’s fieldprintcalculator for data capture

• Partners Included: The Nature Conservancy, Michigan Agribusiness Association, Star of West Milling, Michigan Sugar, Co-op Elevator

Kellogg Company is working with USDA, growers, millers, CCAs, ag retailers and NGOs on a number of Regional Conservation Partnership Programs (RCPP), recently approved by the Secretary

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GLOBALSUSTAINABILITY

COMMITMENTSResponsibly Sourcing U.S. Rice

• Kellogg’s Master Rice Grower Program: Partnering with the Louisiana Rice Mill and the LSU AgCenter, the program works with growers to educate and implement conservation plans

• Partnering with USDA, the USA Rice Federation, Ducks Unlimited and other partners for the SW Louisiana RCPP and the national “Rice Stewardship Partnership – Sustaining the Future of Rice” RCPP

• These partnerships will provide growers support in data capture like the fieldprint calculator and other tools, as well as USDA-funded cost share of over $11M for the implementation of conservation practices and continue to provide migratory birds habitat.

GLOBALSUSTAINABILITY

COMMITMENTSA dissection of an engagement project

• What parties need to participate?

– Engaged growers, primed for cooperation and co-learning

– Processors who see benefit in being a customer of choice for their growers

– Project managers who can focus on analytics: this could be an input provider, ag retailer, extension service provider, CCA

• What needs to be delivered?

– A 2-way communication to share with growers what opportunities are for cost savings and environmental outcomes

– Bring it beyond the direct participants to all the growers

– Share with growers and partners how this will be shared externally

– Work together to find environmental outcomes

GLOBALSUSTAINABILITY

COMMITMENTSKellogg Company Commitment

• Working to support our growers and suppliers who help make our foods great

• Our consumers care about how our food is grown, and so do we

• We are energized to make a difference

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Connecting the Dots:

Kari Niedfeldt-ThomasSenior Manager, Social Responsibility and Executive Director, The Mosaic Company FoundationJanuary 27, 2015

CCAs’ Impact Beyond the Field

▪ Mission: We help the world grow the food it needs.

▪ Incorporated March 2004; formed through combination of IMC

Global Inc. and fertilizer businesses of Cargill

− 100 years of phosphate mining history in U.S.

− 50 years of potash mining history in Canada

▪ Fortune 500 company

▪ $9.0 billion in sales CY13

▪ Customers in approximately 40 countries

▪ 8,900 employees with operations and joint ventures in:

The Mosaic Company Overview

1. United States

2. Canada

3. Brazil

4. Paraguay

5. China

6. India

7. Australia

8. Peru (joint venture)

9. Saudi Arabia (joint venture)

Mosaic: Largest Phosphates & Potash Company

Largest integrated

phosphate producer in the

world

‒ 4 active phosphate

mines in central FL

‒ 6 phosphate fertilizer

manufacturing facilities

in FL & LA

Fourth largest producer of

potash in the world

‒ 3 mines in

Saskatchewan,

including world’s largest

potash mine

‒ 1 mine in NM

One of largest producers

and marketers of

phosphate-based animal

feed ingredients in U.S.

0.0 2.0 4.0 6.0 8.0 10.0

Mosaic

PotashCorp

Uralkali

Belaruskali

OCP

Israel Chemical

K+S

Qinghai Salt Lake

Vale

PhosAgro

Million Nutrient Tonnes

K2O

P2O5

CF

Source: IFA, CRU, Fertecon and Mosaic

Based on 2013 production

Mosaic's P2O5 production includes CF Industries Phosphate Unit

P2O5 production based on PACID and SSP production

K2O production based on MOP, SOP, and KMS production

World's Largest P + K Companies

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Phosphorus-bearing ore

Obtained through surface

mining with both draglines

and dredges

Mosaic FY13: 59% of North

American and 12% of global

concentrated phosphate crop

nutrient production

(DAP/MAP/MicroEssentials®)

Mosaic’s Phosphate & Potash Business Units

Potassium chloride-bearing ore

Obtained through both

underground shaft and solution

mining

Mosaic FY13: 43% of North

American and 14% of global

potash production

Sustainability at Mosaic

‒ Food Security‒ Balanced Crop Nutrition

‒ Product Innovation

‒ The Mosaic Villages Project

‒ Land, Water, Energy, Air ‒ Nutrient Stewardship

‒ Safety‒ Employment Practices

‒ Employee Development

‒ Supply Chain & Contractors ‒ Diversity and Inclusion

‒ Sourcing

‒ Community Investment‒ Stakeholder Engagement

‒ Employee Involvement

‒ Governance‒ Partnerships

‒ Management Structure

‒ Management Systems

Recognition for Our CSR Efforts

Corporate Social Responsibility Recognition

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Operational Sustainability: Continuous Improvement

In Florida, Mosaic planted more than

1.3 million trees in 2013

Product Sustainability: Nutrient Stewardship

4R Framework 4R Partnerships

By 2050, Must Feed Over 9 Billion People

http://rootsforgrowth.com/

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Agriculture: Protecting Habitats and Biodiversity

Answer: Sustainable Intensification

http://www.farmingfirst.org/

Global Food Security Requires Crop Nutrients

http://rootsforgrowth.com/

17 Essential Plant Nutrients

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4R Principles

Click to edit Master title style

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4R Sustainability and the Supply Chain

CCAs are critical:

• Link farmers to downstream supply chain

goals

• Decipher “sustainability”

• Educate supply chain on what works for

environment AND what matters for yields

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How Define Sustainable Agriculture

Meeting the needs of the present while improving the ability of future generations to meet their own needs by:

• Increasing productivity to meet future food and fiber demands

• Improving the environment

• Improving human health

• Improving the social and economic well-being of agricultural communities

Field to Market Deliverables

Fieldprint Projects:

Supply chain continuous

improvement

Fieldprint Calculator: Grower continuous

improvement

National Indicators Report:

Documentation of overall trends

Public data and modelsCollaboratively developed

Outcomes based

National Indicators Report

48

• Production and Yield

• Land Use

• Soil Erosion

• Irrigation Water Applied

• Energy Use

• Greenhouse Gas Emissions

Environmental Indicators

• Debt to Asset Ratio

• Returns Over Variable Costs

• National and State Gross Domestic Product

• Non-fatality Injury

• Fatality

• Labor Hours

Socioeconomic Indicators

Example: Soybeans 2012 Results

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Fieldprint Calculator

• Measuring field level outcomes and identifying opportunities for improvement

• An online education tool for row crop farmers that indexes their agronomics and practices to a Fieldprint

• Helps growers evaluate their farming decisions and compare their sustainability performance

Fieldprint®

Projects:Supply Chain Partnerships in 15 States

Corn

Cotton

Potatoes

Soy

Rice

Wheat

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@MosaicCompany

kari.niedfeldt-thomas@mosaicco.com

http://www.mosaicco.com/our_responsibility.htm

Dan Armbruster CCA

Cooperative Elevator Co.

1-26-15

Work for Cooperative Elevator Co.

Located in the thumb of Michigan

I am a CCA

Very diverse cropping

Dry Edible Beans, Soft White Winter Wheat, Sugar Beets, Corn, Soys, Alfalfa, Beef Cattle, Dairy cattle

Products that go directly to the consumer

Directly involved with End Users

Traceability is important

Implementing new programs all the time

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What is expected of a CCA

What is Sustainability

What Practices are Farmers implementing

What is being asked from Food Supply Chain

What does the future look like???

CCA Producers trusted resource

Continuing Education and Network of Information

Makes educated decisions Well informed and knowledgeable

Rely on CCA’s to bring new information to the farm gate. Credible information

CCA expectations Economically and Environmentally sound recs.

Important for credibility

Also important for respect and trust from producer

Continuing Education for CCA’s

Required to retain certification

Keeps us informed on new practices and information

End users will want to work with CCA’s

CCA is the connection between the two parties

Data and record keeping will be in our hands

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Definition

Efficient production of safe, high quality ag products, in a way that protects and improves the natural environment.

Basically means leaving the ground the way that you left it.

Carbon Footprint

VRT spreading and equipment

B20 Diesel Fuel, Multiple Bin Sprayers, More Efficient engines.

Farmer Practices

Telling our Story We have been recommending, implementing, and

perfecting these practices for years.

Producers love the dirt they farm Important for future of agriculture

Farming is the future for multiple generations

VRT technology Soil sampling

Precision spreading/spraying

Cover Crops Soil health-important for sustainability

Full program

Soil sampling, Planting, Fertilizing, Spraying, Tissue Testing, Yield Mapping

All practices are important to a complete approach of agriculture

Site Specific Ag

Sampling in Grids or Zones

Allows us to be extremely precise in our practices

Put fertilizer where the ground needs it

Follow Tri-State recommendations

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Variable Rate Seeding

Use soil test maps or yield maps to build zones

Results in higher yields with less inputs

Variable Rate Nitrogen

Similar to seeding

Allows us to treat varying soils differently

Traceability

Record Keeping

Field to Fork

End Users requesting this information

Will fall upon farmers and CCA’s to work together to gather and keep this information

Growers “Feel Good” about knowing where there food is coming from

This is what will drive consumers demand in the future

More Focus on Ag

We need to be at the forefront of information

Social Media

Twitter, Facebook, Blogs

Informed and sound information

Continued regulatory pressure

Government officials

Talk about what we are doing not what we have done

Tell our story

We have a good one to tell!!!

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Younger Generation will demand more of this information

Need for information will be huge!!!

Consumers drive the market

Continued improvement coupled with technology

New practices are always being introduced with sound scientific data behind them

Up to CCA to inform producers of these practices

Farmers are already practicing sustainable ag Numerous practices are in place and with

technology this will continue to grow

Important economically for agriculture

Traceability Important record keeping and for Field to Fork

program

Again most of this is already being practiced

CCA’s Role in this Recs made from CCA’s are sustainable and

important for the producers

Technology

Farmers are on the cutting edge of Technology

Site specific ag has been practiced since the 90’s

Will continue to change

Younger generation of farmers will demand this

Willingness to comply

We have to be proactive and willing to work with end users to guarantee our spot in the future!

A unified approach will be a win win for the entire industry

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Soil Sampling Rigs

Used for Grid Sampling

This is a VRT fertilizer map

Gray areas indicate no fertilizer spread in that area

VRT Lime Spreading

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Multiple Product Spinner Machine

Allows us to spread two products at once.

Thank You For Your Time!!!!

Any questions???