The world leader in pork production

1. The world leader in pork production

2. at a glance • World’s largest producer of pork and one of the nation’s leading turkey producers • 5,000 employees • 885,000 sows in production un US • 17 million market hogs annually • 8 million turkeys annually (Carroll’s Turkeys) • 450 hog production farms U.S. • 1,500 U.S. contract producers

3. Our Mission • Lead the industry • Produce low-cost, high-quality pork • Operate responsibly • Create sustainable success

4. Our Values • A team first • Respect, trust and help each other • Integrity and fairness • Act in a socially responsible way—in all we do, all the time

5. Proven Nationally…

6. Vertically Integrated Business • Control all inputs to maximize quality and minimize costs • Ensure quality control • Meet consumer needs • Manage risks • Increase profitability • Maintain sustainability

8. Multi site production model Breeding Farms Nurseries Finishing Farms

9. Life cycle of a pig • From insemination to birth 118 days-3 months,3 weeks, 3 days • From birth to weaning (10-12 lbs.) 21-24 days • From weaning to feeder pig status ( approx. 50 lbs) 45-49 days • From feeder pig to market weight (260-265 lbs.) 125-130 days • Age from birth to market 195-200 days or 6.5 months

10. Pig diets-Feed efficiency • Total Grain 74.38% • Protein Supplements 19.03% • Fat 3.48% • Minerals 2.14% • Other 0.91% • Vitamins 0.04% • Feed conversion ratio: 2.9 lbs. feed per 1 lb. live weight sold • 10 different diets formulated depending on age, reproductive stage, dietary needs

11. Contract grower partnerships • 1,500 contract swine growers in U.S. • Animals grown using same specifications and requirements as on company farms • Regular interface with growers, inspections, audits • Legal and regulatory requirements must be met • Murphy-Brown animal welfare and antibiotics use guidelines must be adhered to • Strict adherence to proper management is a condition of contract arrangement

12. Contract Production Model

13. Responsible Antibiotic Use • Used only to treat sick or injured animals • Strictly limited • Veterinarian-directed • Adherence to state and federal laws • No routine administration of antibiotics used in human medicine to healthy animals • Purchasing policy developed with Compass Group and Environmental Defense

14. Animal Welfare Management • Recognized as industry leader • Ensures well-being of animals • Ensures compliance with legal requirements • Promotes continual improvement • Provides objective evidence of sound animal management

15. Animal Welfare Program Ensures • Shelter that provides the physical environment to meet the animals’ needs • Access to adequate water and high-quality feed to meet nutrition requirements • Humane treatment of animals to ensure well-being and comply with all laws • Treatment of animals in need of care • Timely use of humane methods to euthanize sick or injured animals

16. Recognized Industry Leader “Members of the Animal Welfare Committee also should be recognized for their frank deliberations and hundreds of hours already devoted to development and early implementation of the AWMS, which in its present form well could serve as a conscientious model for the entire American pork industry.” – Drs. Stan Curtis, University of Illinois and Temple Grandin, Colorado State University

17. Live animal transportation • Miles driven from farms to hog markets-9 million • Miles driven between hog farms-40 million • Miles driven from turkey farms to market-250K • Miles driven between turkey farms-640k • Over 200 company owned tractor trailer rigs • Over 170 contract hauler owned rigs

18. Transportation related threats to animal well-being • Animal handling • Loading/unloading/floor space • Facility design • Environmental conditions • Fatigued pig syndrome • Vehicle accidents

19. Emergency Response-The Right Equipment is Essential

20. Credible and Auditable • Pork Quality Assurance (PQA) Plus • Transport Quality Assurance program (TQA) • Live-haul accident response program “Nobody has a protocol in place like Murphy-Brown does. Theirs is probably some of the best accident response there is.” – Jennifer Woods, Livestock Handling Expert

21. Environmental Management System (EMS) • We are the world leader in environmental management systems for livestock • ISO 14001 environmental program is international gold standard for environmental management • First livestock operation in the world to become ISO 14001 certified (2000) • All U.S. farms and support services ISO certified • Smithfield followed EMS implementation in all U.S. facilities • All Smithfield subsidiaries in U.S. now ISO 14001 certified-first packing and processing company in the world to achieve this distinction

22. Environmental Stewardship-Beyond Compliance • Pollution prevention • Compliance with all legal requirements • Continual improvement

23. Social Responsibility • Objective evidence of sound environmental performance (ISO 14001 certified) • Animal welfare leadership (praised by international experts) • Robust bio-security program • Emergency preparedness/response plan (weather, FAD etc.) • Antibiotics policy to protect animal and human health • Support worthy community projects • Publicly available performance metrics (Smithfield CSR) • Live haul accident response program/leadership • Recognized industry leadership

24. QUESTIONS?