How we raise our pigs and cattle

Animal health and welfare is a cornerstone of our business. To meet both societal and customer expectations, we demand of ourselves that, as sentient beings, all of the livestock that we process are treated humanely throughout their lives.

Reflecting local market demands, there will be differences across our businesses, and while EU legislation forms a statutory minimum, in many areas, standards, whether from national legislation or industry, company and customer welfare programmes, exceed this baseline.

Farm welfare standards form a part of all livestock sourcing contracts, all of which will include participation in recognised and independentlyaudited third party accreditation schemes. Welfare standards extend beyond the farm to include transport and processing. Processes for dealing with any non-compliance are set out within these schemes. Farmers participating in higher welfare programmes are further rewarded with sustainable pricing and premiums.

Traceability

Robust traceability systems are demanded by both customers and consumers to ensure that the expected standards of food safety, and animal health and welfare are consistently delivered. All of our supply chains are required to meet levels of traceability as set out in EU legislation, but we also deliver higher levels in order to meet standards set out in national legislation and a range of quality assurance schemes and customer standards. Those standards extend to inputs to the various livestock systems and include, for example, animal feed and its constituent ingredients, and livestock medicines.

For example, Danish beef can always be traced back to the farm where the animal was raised. All cattle have an 11-digit earmark. The first six digits indicate where the animal was born, and the last five digits are the specific number of the individual animal. Earmarking ensures full traceability throughout the food chain from farm to table. The animal carries the same ear tags throughout its life, and the tag on the left ear contains a chip, allowing the farmer to access the information using a scanner.

Farm Assurance

In each of our home markets we have Agriculture Supply Chains whose field staff engage directly with farmers to support and advise on a range of welfare and management issues.

Reflecting the demands from both customers and consumers for supply chain integrity, in addition to EU and national legislation, each of our markets offers the additional assurance (and higher standards) of recognised and independently audited farm assurance schemes; detail of some of these can be accessed below.

In addition, in all markets, our pig and beef supply chains are subject to independent third-party audits, with unannounced audits far from unusual, on behalf of some welfare schemes and retail clients.

Group positions on key welfare issues can be summarised below:

Close confinement:

Pigs: Tethering is not permitted in any of our supply chains, and all sows are tether-free.

Across all of our supply chains, the permanent use of sow stalls is not permitted. Confinement is permitted for the first four weeks of pregnancy (gestation) in 71% of our global supply chain. Our Danish UK welfare programme does not permit confinement of sows other than during the farrowing process and represents approximately 35% of our Danish output, and in addition, sow stalls are not permitted in our Friland (organic), Antonius and Bornholmer supply chains (4% of Danish supply). In our Swedish supply chain that accounts for a further 6% of the group’s pigs, the movement of pigs must not be restricted except under a limited number of proscribed occasions such as when handling the animals for care or treatment.

To optimise the welfare of both sows and piglets, the use of farrowing crates is permitted across our pig supply chains. They are not used in our Danish Friland, Antonius and Bornholmer (4% of Danish supply chain) supply chains, and there are significant

restrictions in the Danish 3 Hearts scheme that limit their use from up to four days for 1 Heart, 2 days for 2 Hearts, and are banned from 3 Hearts standard. Denmark was the only country in the world to set a target for loose-housed sows in the farrowing unit, with a target of 10% by 2020, and although this target was not achieved, the elimination of farrowing crates to invest in research to develop solutions that are requirement and from January 2021 local anaesthetic

by 2030 in our Danish supply chain is being actively considered, and we will set new targets before the end of 2020. Danish Crown continues to support and participate in research projects that will facilitate an effective transition to free-farrowing systems in years to come.

Cattle: Tethering is not permitted in any of our supply chains and all cattle are tether-free. As set out in EU legislation, individual crating and housing of calves in individual pens after eight weeks is not permitted in our supply chains.

Routine mutilations:

Routine mutilations are not permitted across our supply chains for all species. Cattle:

Pigs: Routine tail-docking and tooth-clipping or grinding are not permitted across our supply chains but can be carried out if advised by a veterinarian and included in the farm Veterinary Health Plan. Some of our Danish quality programmes such as the 3 Hearts scheme preclude tail docking and it is not permitted

Cattle: Routine tail docking is not permitted across our supply chains. Where advised, the de-horning/ disbudding of dairy cattle must be carried out by a veterinarian and with the use of local anaesthesia. This represents approximately 30% of our Danish supply and the procedure restricted to female cattle, while in Poland, it accounts for 10% of production. This also reflects the position of our Swedish supply chain as regards de-horning. De-horning is not practiced in our German supply chain

Castration:

Pigs: Approximately 85% of the male pigs processed by the group come from systems that permit castration where advised by a veterinarian, but that does not mean that all are castrated. Danish Crown continues accepted across all major international markets. In our Danish and Swedish supply chains, it must be conducted within 7 days of birth and with local analgesia and anaesthetic, and for our UK Welfare pigs, it must be conducted in the first 3 days. In our German market, local analgesia is the current will also be required in Germany. Our Polish supply chain adheres to current EU legislation.

in our Swedish supply chain (6% of group). Castration is permitted in our Danish and Swedish supply chains where prescribed, and castration of young bulls must be carried out by a veterinarian or trained, qualified personnel and with local anaesthesia. In Denmark and Germany, this accounts for less than 5% of livestock, in Poland, it accounts for less than 0.01% of production.

For our German (cattle) and Polish (pigs and cattle) markets, the maximum permitted transport time of 12 hours is a function of the geography of the two countries and in both markets, where transport times are extended, additional welfare requirements must be met.

Denmark Sweden Germany Poland

Total Livestock Transport

Pigs

Maximum permitted transport 8hrs 8hrs 8hrs 12hrs % transport <8hrs

100 100 100 90

99

Average transport time 3hrs 6.5hrs <4hrs 6hrs

Cattle

Maximum permitted transport 8hrs 8hrs 12hrs 12hrs % transport <8hrs

100 100 100 70

93

Average transport time 2hrs 5.5hrs 5hrs 8

Cloning and use of genetically modified animals:

Producers across our pork and beef supply bases must ensure that no animals are subject to any genetic modification or cloning. We continue to review scientific developments which may benefit the health and welfare of livestock. If this identifies new techniques to benefit livestock health, this may be considered. However, we would never adopt new techniques without prior discussion with stakeholders.

Use of growth-promoting substances: The use of antibiotic growth promoters is not permitted within our farming systems across the group. It should be noted that their use has been banned in Sweden since 1986, in Denmark since 2000, and in the EU since 2006.

Antibiotic use: Danish Crown advocates the responsible use of livestock antibiotics and requires that its suppliers have a special focus on limiting the use of antibiotics to ensure both animal and human health’. This requirement applies across all markets and species. This includes limiting the use of antibiotics that are critically important for human health, and in our Danish and Swedish supply chains, their use is either banned or permitted only under exceptional circumstances. Antibiotic use is monitored across all markets.

Denmark is among the lowest users of livestock antibiotics of all the major pig producing countries and its systems are held as an exemplar for others. Our Danish pig supply chain has also developed an antibiotic-free supply chain, while our Polish operation, working with a key retail customer, has introduced a programme one element of which is the exclusion of antibiotics in the fattening phase. Healthy animals do not need antibiotics, and Sweden also has a long tradition of preventative health work and a well-established antibiotics controls in place, is among the lowest users of livestock antibiotics, and as with Denmark, performance is publicly-reported each year (via the SWARM report from the SVA).

The prophylactic use of antibiotics is not permitted in all of our livestock supply chains (Denmark, Sweden, Germany and Poland).

Environmental enrichment: All (100%) of sows, gilts and pigs in all markets must have permanent access to a sufficient quantity of enrichment material to enable proper investigation and manipulation activities, such as straw, hay, wood, and sawdust and in Denmark, rooting materials must be of natural origin. In our Danish and Swedish cattle supply chains that represent 54% of production, when animals are outside in pasture there is a requirement to provide shade (https://www.foedevarestyrelsen.dk/Leksikon/ Sider/Udegaaende-dyr.aspx)

In our Danish dairy cattle supply chain (>30% of supply), when in barns, the animals must have access to brushes against which they can rub, and moving forward, consideration will be given to environmental enrichment provision for cattle across the group.

In our Swedish supply chain, all cattle must have access to pasture according to geographical location.

During the grazing season, cattle in milk-producing herds must come out and have access to the pasture for at least six hours in a row every day. The grazing season that applies and how many days the animals should be kept on grazing depends on which part of the country the animals are located -

Southern Sweden: Animals should be kept on pasture for at least 120 days during the period 1 April to 31 October, of which at least 60 days should fall during the period 1 May to 15 September.

Middle of Sweden: Animals should be kept on pasture for at least 90 days during the period 1 April to 31 October, of which at least 60 days should fall during the period 1 May to 15 September.

North Sweden: Animals should be kept on pasture for at least 60 days during the period May 1-October 1, of which at least 30 days should fall during the period 1 June to 31 August.

Humane slaughter/pre-slaughter stunning:

All pigs across our business must receive appropriate pre-slaughter stunning prior to processing. All pigs across the group are currently stunned using CO2 and effectiveness of stun is monitored. The only variance from this is in Sweden where, for sow slaughter, one of our slaughterhouses uses electric stunning.

All cattle in our Danish, Swedish and German beef supply chains must receive appropriate pre-slaughter stunning prior to processing. This is delivered through approved captive bolt systems. In the Sokolow supply chain, and reflecting historic trading structures, a kosher supply chain represents a minority element of production, and all other cattle must receive preslaughter stunning

Denmark Sweden Germany Poland Total Group

Denmark Sweden Poland Germany Proportion of animals pre-slaughter stunned

Pigs % 100

100

100

100 100

Effectiveness of Stun

Pigs %

Danish Crown’s beef interests include operations in Denmark (including Holsted, Europe’s most modern slaughterhouse), Germany, Sweden and Poland. More information, including output, videos and inspection reports can be found here. Its Danish business is founded on four core schemes – Friland (organic), Dansk Gastro Kalv, Danish Dairy Cattle, and Danish Beef Cattle – each of which includes a range of welfare requirements. Danish cattle have a high health standard, and the meat quality is the very best. Danish veterinary inspections and legislation are among the strictest in the world, and they cover the entire process from the rearing of the animals on the farms to the inspection of every single animal at the slaughterhouses. The official veterinarians at our slaughterhouses in all markets are employed by the Government and are thus independent of the slaughterhouses. Under the Danish 3 Hearts scheme, the slaughter of bobby calves is not permitted and from 2022, this will apply to all Danish cattle supply chains The Danish Beef Cattle programme accounts for approximately 7% of our Danish production, requires meat to originate from Danish beef cattle and for farmers to sign a contract that commits to meeting proscribed standards of care, including: 100

100

100

100

Cattle %

100

100

100

73 94

Cattle %

100

>99

100

>99

Reared and cared for by dedicated Danish farmers

The cattle must go out on the grass in the summer The calves can move freely

During the winter, cattle are always free to move around in stables or outside

Healthy and natural food without unnatural additives and always with free access to water

There are no stressors around the meat cattle

Danish beef cattle are not milked

The animals are transported directly to the slaughterhouse.

In all markets, we work closely with customers to develop tailor-made welfare programmes, a recent example of which is in our Polish market – in May 2020, our Polish supply chain implemented a programme to deliver pig meat to a leading retailer that required non-GMO feed, no antibiotic use in the fattening phase, increased space requirements, and waste and slurry management elements. Initial scale is small, but growth is forecast.

Danish crown participates in 17 deferent schemes where animal elements are included, adapted to each market and the specific animal welfare rules in the country. A good example of this is the Dansk Gastro Kalv scheme. To give further impetus, and working with a leading Danish retailer, the scheme was relaunched in 2020 and results were positive, although the product from the programme can be accessed by the wider market.