Sturgeon Valley PorkSturgeon Valley Pork

ALMA PresentationALMA Presentation

Sturgeon Valley Pork BackgroundSturgeon Valley Pork Background

2 family farms purchased abattoir 2 family farms purchased abattoir Ouellette Packers in 2000Ouellette Packers in 2000

2003 constructed new federally 2003 constructed new federally inspected plant 215 and could now market inspected plant 215 and could now market outside of Alberta boarders the world was outside of Alberta boarders the world was now the marketnow the market

2010 producer/shareholder group grew to 2010 producer/shareholder group grew to 21 and a doubling of operations 21 and a doubling of operations

Major Events And ChallengesMajor Events And Challenges 2003 BSE flood of protein on the market and higher 2003 BSE flood of protein on the market and higher

operational cost as well as regulatory changesoperational cost as well as regulatory changes

Large integrators such as Smithfield were changing the Large integrators such as Smithfield were changing the industry quickly, only one profit center was neededindustry quickly, only one profit center was needed

Pork producers were running negative margins for 4 years Pork producers were running negative margins for 4 years and the global demand for pork was sluggishand the global demand for pork was sluggish

H1N1 was called “Swine Flu” by media had damaging H1N1 was called “Swine Flu” by media had damaging

effects to the pork industry slowing global demand and effects to the pork industry slowing global demand and halted the price recovery halted the price recovery

The Concept & GoalsThe Concept & Goals To create a value chain allowing pork producers to make the To create a value chain allowing pork producers to make the

transformation from raising pigs to marketing meat with distinct transformation from raising pigs to marketing meat with distinct claims and qualities claims and qualities

SVP group are all small to mid size family farms that have a SVP group are all small to mid size family farms that have a passion for raising pigs in a sustainable manner caring for the passion for raising pigs in a sustainable manner caring for the animals, land and environment animals, land and environment

To match pork production with processing capacity to maximize To match pork production with processing capacity to maximize efficiency and have guaranteed shackle spaceefficiency and have guaranteed shackle space

Produce high quality pork from farm through processing and Produce high quality pork from farm through processing and market the story with identifiable brandingmarket the story with identifiable branding

Great story sounds simply right? The reality is this is a huge Great story sounds simply right? The reality is this is a huge undertaking and success hinges on good planning, management, undertaking and success hinges on good planning, management, marketing and commitment by all marketing and commitment by all

The Business PlanThe Business Plan This is were it all starts, you need to gather up all the ideas batted This is were it all starts, you need to gather up all the ideas batted

around and pull them together evaluate the strengths and around and pull them together evaluate the strengths and weakness and do your homeworkweakness and do your homework

This is outside our scope of work and this is were ALMA has been This is outside our scope of work and this is were ALMA has been very beneficial both with the finical cost as well as resources to very beneficial both with the finical cost as well as resources to assist companies like ours in developing solid business plansassist companies like ours in developing solid business plans

I believe one of the most important decisions early on is which I believe one of the most important decisions early on is which consultant or company one hires to work on the planconsultant or company one hires to work on the plan

They need to have a good working knowledge of the industry or They need to have a good working knowledge of the industry or resources available, this document is used for finance and is the resources available, this document is used for finance and is the road map to keep on course road map to keep on course

The plan was also important in clearly explaining the model so The plan was also important in clearly explaining the model so potential new shareholders understood the modelpotential new shareholders understood the model

The FacilityThe Facility

Meat processing is much like most manufacturing Meat processing is much like most manufacturing processes and is very competitive and lean manufacturing processes and is very competitive and lean manufacturing principles are requiredprinciples are required

This is often achieved though adopting new technologies This is often achieved though adopting new technologies and processesand processes

ALMA has several tools and programs that help from ALMA has several tools and programs that help from evaluating processes, engineering cost, equipment, training evaluating processes, engineering cost, equipment, training ect… which are very helpful in implementing and helping ect… which are very helpful in implementing and helping Alberta plants become even more efficient Alberta plants become even more efficient

One example is our DNA TraceBack which SVP has One example is our DNA TraceBack which SVP has implemented and is the first pork plant in Canada to use implemented and is the first pork plant in Canada to use this technology, it is a solid science and we now can offer this technology, it is a solid science and we now can offer full traceability to our customers full traceability to our customers

SVP Guarantee SVP Guarantee

Marketing & BrandingMarketing & Branding Brand and brand awareness are key to developing market share and Brand and brand awareness are key to developing market share and

carving out your niche in the market place and maintaining your market carving out your niche in the market place and maintaining your market shareshare

Building the brand encompasses everything from logo design, the story, Building the brand encompasses everything from logo design, the story, web site development, in store promotions, tasting events and the list goes web site development, in store promotions, tasting events and the list goes on, the reality is this takes a lot of time and resources on, the reality is this takes a lot of time and resources

Here in Alberta we are very fortunate to have a organization such as ALMA Here in Alberta we are very fortunate to have a organization such as ALMA

with a goal to facilitate companies such as SVP to seek out new market with a goal to facilitate companies such as SVP to seek out new market opportunities provide much needed resources in marketing and branding opportunities provide much needed resources in marketing and branding effortsefforts

The support comes in many forms from making it affordable for companies The support comes in many forms from making it affordable for companies to attend food shows or industry events to matching dollars in marketing to attend food shows or industry events to matching dollars in marketing and brand development and brand development

The benefit to SVP has been many, new contacts and business relations, a The benefit to SVP has been many, new contacts and business relations, a increased group to net work increased group to net work

Brand Logo’sBrand Logo’s

Value AddedValue Added SVP has work with a local pet food SVP has work with a local pet food

company adding value to pork organ meat company adding value to pork organ meat in a fast growing market, this product is in a fast growing market, this product is exported around the worldexported around the world

SVP also has been working on value SVP also has been working on value adding primals that have slow seasons or adding primals that have slow seasons or have no margin to help support total cut have no margin to help support total cut outout

This will be new for SVP and will align with This will be new for SVP and will align with market and branding work done to datemarket and branding work done to date

Steep Learning CurveSteep Learning Curve The meat business is challenging at the best of times and 2009-10 The meat business is challenging at the best of times and 2009-10

has been a very transitional year for SVPhas been a very transitional year for SVP

Now 20+ shareholders a new energy and dynamic’sNow 20+ shareholders a new energy and dynamic’s Building addition to double capacity and improve efficiencies Building addition to double capacity and improve efficiencies New management team New management team New markets being developed domestic and exportNew markets being developed domestic and export Branding and programming for both retail and food serviceBranding and programming for both retail and food service Plant operations on Yield Improvement and Product ImprovementPlant operations on Yield Improvement and Product Improvement TraceBack implementedTraceBack implemented Pet food projectPet food project

ALMA has been very important in SVP moving along on the above ALMA has been very important in SVP moving along on the above changes. There is no doubt that there role as a catalyst have changes. There is no doubt that there role as a catalyst have helped SVP accelerate the changes and the staff have been a helped SVP accelerate the changes and the staff have been a pleasure to work with and many from staff or board of directors pleasure to work with and many from staff or board of directors are visionary and are a great sounding boardare visionary and are a great sounding board

SVP Contribution to the Pork SVP Contribution to the Pork IndustryIndustry

75 full time jobs75 full time jobs

Dollars stay in the Alberta economy and rural AlbertaDollars stay in the Alberta economy and rural Alberta

21 family farms have moved up one more level in the value 21 family farms have moved up one more level in the value chain and taking charge of there destinychain and taking charge of there destiny

Customers and consumers now have another choice for Customers and consumers now have another choice for local fresh pork products local fresh pork products

A greener sustainable model with lower environmental foot A greener sustainable model with lower environmental foot print print

Company driven by meat quality and processes that help Company driven by meat quality and processes that help that make it to you tablethat make it to you table

ConclusionConclusion SVP goal is that you will be able to purchase fresh and SVP goal is that you will be able to purchase fresh and

further processed branded product across Western Canada further processed branded product across Western Canada and consumers ask for it by nameand consumers ask for it by name

That the farmers and shareholders will be able to continue That the farmers and shareholders will be able to continue raising there livestock in a sustainable way and feel the raising there livestock in a sustainable way and feel the pride when they can identify there own branded productpride when they can identify there own branded product

We are a local Alberta company providing safe and local We are a local Alberta company providing safe and local product mainly to western Canadian retailers and food product mainly to western Canadian retailers and food service industry. The success of us getting this far has its service industry. The success of us getting this far has its beginning in what ALMA and all of its staff have contributed beginning in what ALMA and all of its staff have contributed

QuestionsQuestions