2011 Farm to Fork Report by GNP Company

GNP Company Farm To Fork Report 2011

Welcome to our 2011 Farm To Fork Report. Our theme this year is “Healthy Food, Families & Farms”—the focus of our recently launched mission that reflects the heart of who we are as a company. Throughout this report, you’ll read how we’re working to develop nutritious food that enriches the lives of families, and to support and preserve the farms that are so critical to our foundation and the vitality of the planet. Our commitment to healthy living starts from within, which is why we’ve chosen to highlight our team members living out our mission—both personally and professionally. To a healthier future!

ON THE COVER: This year’s cover celebrates our company’s newly launched mission, honoring the chickens and family farm partners who help us provide healthy food to families every day. Pictured are family farm partners Joe Bragger of Independence, WI (lower left) and the Poster family of Pierz, MN (upper right). Read more about the Bragger family on page 4. © 2012 JFC Inc. All rights reserved.

CEO Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mission and More . . . . . . . . . . . . . . . . . . . . . . . . . . Featured Family Farm Partner . . . . . . . . . . . . . . . About Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 3 4 5

The Value of Diversity . . . . . . . . . . . . . . . . . . . . . . . 6

Animal Welfare Commitment . . . . . . . . . . . . . . . . 18

Team Member Engagement . . . . . . . . . . . . . . . . . . 6

Active Grower Management Program . . . . . . . . . 18

Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

American Humane Certification . . . . . . . . . . . . . . . 19

Team Member Safety . . . . . . . . . . . . . . . . . . . . . . . . 7

Consumer-Driven . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Healthy Lifestyles . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

New Product Offerings . . . . . . . . . . . . . . . . . . . . . . 20

Longevity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Truthful Labeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Product Health Benefits . . . . . . . . . . . . . . . . . . . . . 9

Food Safety Leadership . . . . . . . . . . . . . . . . . . . . . 22

People Poultry Customer Advocacy . . . . . . . . . . . . . . . . . . . . . . . . 10

Highlight: Happy, Healthy Chickens . . . . . . . . . . 23

Consumer Engagement & Advocacy . . . . . . . . . 10

Highlight: Our New Mission Statement . . . . . . . 11

Our Environmental Mission . . . . . . . . . . . . . . . . . . 12

Corporate Giving . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Sponsorship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Life Cycle Assessment . . . . . . . . . . . . . . . . . . . . . . . 13

Investing in Local Suppliers . . . . . . . . . . . . . . . . . 25

Carbon Trust Certification . . . . . . . . . . . . . . . . . . 14

Customer Growth . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Carbon Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Historical Sales Growth and Distribution Area . . . 26

Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Process Excellence . . . . . . . . . . . . . . . . . . . . . . . . . 27

Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Continuous Improvement . . . . . . . . . . . . . . . . . . . 27

Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Awards and Recognition . . . . . . . . . . . . . . . . . . . . 27

Highlight: Cold Spring Wastewater Treatment Plant . . . . . . . . . . . . . . . 17

Highlight: The Gold’n Path . . . . . . . . . . . . . . . . . 28

Planet Progress TABLE OF CONTENTS

By viewing this digital version of our Farm To Fork Report, you are saving paper and the precious resources otherwise used in the printing process. If you must print this report, here are a few easy ways to minimize the environmental impact. Thanks for keeping our planet healthy and beautiful!

GNP Company Farm To Fork Report 2011

• • • • •

Print only the pages you need Use high post-consumer recycled content paper Print on both sides of the page Print in black and white, instead of color Recycle the paper after use

Healthy

FOOD, FAMILIES & FARMS Our MISSION Possible The year’s significant insights:

Last year, we announced our evolution from a provider of a single premium chicken brand to one offering multiple premium natural chicken brands. In our 3rd Farm To Fork Report, we’d like to share some stories of our ongoing progress since then, the challenges and opportunities that have made us better, and the dedication to healthy food, families & farms that drives our success.

• The far-reaching value of deeper engagement with our team members; and • Involving our people to help shape our mission statement into one that more clearly expresses our company’s purpose.

The Year In Review

Moving Forward

2011 was an extremely difficult year for our industry—the worst in history from a financial standpoint. Record-high feed costs, escalated fuel prices and a continuing uncertain economy created the perfect storm. This scenario was further compounded by continued low market pricing due to oversupply in our industry. This made it impossible for companies to pass the added production costs onto consumers. Unfortunately, several in our industry didn’t survive.

Looking ahead, I am cautiously optimistic for our industry. While high feed costs are our new reality—being driven by low crop inventories and the ongoing use of food crops for fuel—there are positive market signs. First and foremost, chicken is the most consumer-preferred animal protein domestically, and international exports remain strong. We also see better market pricing as supply and demand become more balanced.

Though our results fell short of 2011 goals, we did achieve a slight profit and were able to add jobs and donate more than 4 million meals’ worth of chicken to local food banks— all a result of our ability to make critical improvements to our business. Toward the end of the year, our efforts culminated in being named Meatingplace’s 10th annual Jesse Jewell Award winner—given to companies who have raised the standard of excellence for the poultry industry.

I am very confident in our company’s future—powered by a culture of innovation; the strength of our premium natural chicken brands and evolving product lines; the continued strong demand for lean, nutritious protein; and our people who are dedicated, passionate, creative and hard-working. In closing, I am proud of our achievements. And I see great things to come as we strive to create “healthy food, families & farms” while staying ever watchful and ready to embrace the challenges of our dynamic marketplace.

While I feel very honored to have received this noteworthy recognition, it’s our team members and family farm partners who deserve the credit, as they are the ones responsible for our accomplishments.

Sincerely,

The year’s key successes: Michael Helgeson • Completing a multi-year expansion of our Cold Spring Wastewater Treatment Plant, giving us state-of-the-art water reclamation and treatment capabilities;

CEO / 3rd Generation Leader Avid Water Skier

• Realizing the benefits from our Arcadia expansion finished last year; • Our Just BARE® brand passing American Humane Certified® Farm Program standards; • Pursuing and achieving our goals for continuous improvement; and • Receiving four awards from the United Way of Central Minnesota for making a difference in the local communities where we work and live.

GNP Company Farm To Fork Report 2011

~ dedicated to ~

food, families & farms

MISSION

~ dedicated to ~

food, families & farms

VISION Be the leading national provider of premium branded, pure natural chicken products.

VALUES FRAMEWORK Our operating principle is simple: to thrive by embracing safety and balancing the need for economic Progress with the needs of our People, Planet and Poultry. It’s what we call the 4P’s—interdependent elements that sustain the health and vitality of our business.

PEOPLE: Building and enriching relationships through meaningful engagement.

PLANET: Reducing our environmental footprint across our value chain.

POULTRY: Delivering safe, nutritious and humanely raised products to the marketplace.

PROGRESS: Ensuring the economic vitality of our business, suppliers, partners and communities.

LEADERSHIP PHILOSOPHY Listen. Lead. Thrive.

GNP Company Farm To Fork Report 2011

Meet the Bragger Family Part of our flock since 1996

Joe Bragger’s Mission: To Conserve & Connect with Consumers One only has to spend a few minutes talking to Joe Bragger to “get” his mission: advocating for agriculture and connecting with consumers who are increasingly disconnected from their food. “There’s so much negativity out there today about agriculture,” Joe explains. “I believe that by talking to consumers as a farmer— not as a producer—I can make them see the positive side of farming. They need to see the real people who are responsible for bringing food to their tables.”

leading example for others to follow, and work to help the general public understand the role we all play in conserving our natural resources. “This award is a testament to not just my efforts but those of my parents and my entire family,” explains Joe. “I’m proud of the strides we’ve taken…that agriculture has taken overall to become better stewards of the land. We’re in the golden age of agriculture and the environment. Education is beginning to drive understanding and action. It’s very exciting and rewarding to see.”

Joe and his younger brother, Dan, have a partnership that includes 500 acres of crops (a combination of no-till and tilled land), a 305-cow dairy, 50 beef cattle, and two chicken barns that house flocks for GNP Company™. Joe’s wife, Noel, raises the breeder or egg-laying chickens; Dan and his wife, Mary, raise the broiler or processing/meat chickens. Together, the Braggers also raise 4,000 brown trout for local conservation organizations and manage 150 acres of woodland for wildlife, native grass preservation, recreation and timber pulp production.

As this golden age unfolds, you can bet that Joe and his family will continue to lead the way. After all, his advocacy is contagious. And, according to him, the area’s terrain makes the opportunities for stewardship virtually endless. Learn more about the Braggers at gnpcompany.com.

The Bragger family farm story began in the 1960s when Joe’s Swiss immigrant parents founded a dairy in west-central Wisconsin. According to him, they chose the area because the landscape reminded them of their homeland. Though picturesque, the land’s steep, narrow valleys of driftless fields bordered by streams and large expanses of trees and grasses is prone to erosion—making it less than ideal for row-crop farming. But his family found a way to raise crops without stripping the soil of its value. And his conservation efforts led to Joe being selected as the 2011 Wisconsin Leopold Conservation Award winner. Named in honor of renowned conservationist Aldo Leopold, the award recognizes individuals who demonstrate a long-standing commitment to conservation, provide a

The Bragger Family Farm Partnership includes (pictured from the left) Joe Bragger and his wife, Noel; his mother, Hildegard Bragger; and Mary and Dan (Joe’s brother) Bragger. Not pictured are Joe and Noel’s children, Rosli, John, Tess and Allison; and Mary and Dan’s children, Gavin, Morgan and Anna.

GNP Company Farm To Fork Report 2011

ABOUT US Founded in 1926 as a seasonal hatchery, today GNP Company™ provides wholesome, naturally nutritious chicken products to customers and consumers. While what we do sounds simple, it’s not. Controlling every step from farm to fork is critical to ensuring safety and quality. We purchase day-old breeder chicks and deliver them to contract family farmer partners who raise them into breeder hens.

When mature, these hens are moved to special barns where they lay the eggs needed. The eggs are then delivered to our hatcheries.

Here, eggs are incubated and hatched into broiler chicks. A broiler chick is a term used for a chicken raised for meat.

Chilled, quality products are delivered to warehouse and distributor customers and then shipped domestically to supermarkets, delis, restaurants, and other food manufacturers or exported internationally.

Ultimately, our products become the cornerstone of nutritious meals for consumers.

The broiler chicks are delivered to contract family farmers and raised with the help of trained company field servicemen and a full-time veterinarian. Once market size, the broilers are gathered and transported to one of our two processing plants.

Locally raised corn, soybean meal, wheat and other natural ingredients are delivered to our feed mills where they are made into nutricious chicken feed and sent to the family farm partners who raise our breeder and broiler chickens.

The clean, raw chicken is rapidly chilled and made into high-quality premium products. USDA inspection occurs throughout the entire process.

At the plants, broiler chickens are received and processed under established guidelines for humane treatment.

COMPANY FACTS OUR PEOPLE

OUR SALES & DISTRIBUTION

• 1,600 team members • 350 independent family farm partners

• $338 million in annual sales • Offer branded and non-branded retail, deli,

(who raise our chickens)

foodservice, industrial and export products

• Brand labels include Gold’n Plump , Just BARE ®

and Sunny Roost

OUR OPERATIONS

• Distribution area

• Fully integrated operations in St. Cloud, MN and

Arcadia, WI (farmer-owned broiler and breeder barns, hatcheries, feed mills, processing plants and distribution systems)

- nearly all 50 states - limited international export

• Value-added processing facility in Luverne, MN GNP Company Farm To Fork Report 2011

Building and enriching relationships through meaningful engagement. Our strong relationships with team members, family farm partners, customers, valued suppliers and community members are at the heart of our business. We are passionate about what we do and how we impact the lives of people.

People THE VALUE OF DIVERSITY

member involvement, and identify how we can continue to improve our leadership, teamwork, and communication. In 2011, our score dipped from last year, although our overall results were better than 55% of other organizations surveyed. In 2012, we plan to boost our efforts to foster and sustain an engaged workforce.

Though we are unified by a single mission, we celebrate the diversity of our team members in race, religion, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, education, work style and language. Our diversity presents us with a broader set of ideas and experiences which we can draw upon to create innovative, insightful solutions.

Employee Suggestion Program

The key is to create a workplace of mutual respect that encourages team members to find value in othersâ&#x20AC;&#x2122; viewpoints. The diversity of our company, community, nation and world will continue to grow. As it does, so does the importance of our ability to embrace it effectively in our personal and professional lives.

Our team members are the best source of innovation and ingenuity when it comes to continuously improving the way we do business. With that in mind, our employee suggestion program rewards team members for offering new ideas and solutions that improve operational efficiency and the customer experience.

TEAM MEMBER ENGAGEMENT

ESP: EMPLOYEE SUGGESTION PROGRAM

2011 Team Member Engagement Survey

NUMBER OF NUMBER OF SUGGESTIONS SUGGESTIONS RECEIVED ADOPTED

Team member engagement is a key component of Lean Management, our leadership style, our mission, and company success. We conduct an annual Engagement Survey to measure our team

COMPANY SAVINGS FROM SUGGESTIONS

TOTAL REWARDS PAID FOR PARTICIPATION

1,209 370 $400,597 $51,918

GNP Company Farm To Fork Report 2011

Team member safety remains a core value at GNP Company. Our ultimate goal of zero incidents demonstrates our commitment to continuously improve our safety culture. Team members that are engaged in the safety process understand that “Safety” is an active choice. Kari Waters

ENVIRONMENT

Corporate Health and Safety Manager Basketball Mom

THE

COMPONENTS OF BEHAVIOR-BASED SAFETY

PEOPLE BEHAVIOR

TRAINING

TEAM MEMBER SAFETY

Training is ingrained in our culture. All of our team members understand that it is an integral part of their responsibilities. Our Human Resources leadership team works in partnership with team members to identify specific training needs and opportunities. In 2011, 95.3% of our team members received training in the following areas:

We are committed to promoting the health, safety and professional development of our team members. Safety is a value that we embrace as part of our everyday operations. We are working to build proactive systems that drive cultural safety and health consciousness, and are aggressively pursuing improvement goals in our safety performance.

• People safety • Food safety • Supervisory effectiveness • Six Sigma and Lean continuous

Our key safety focus areas include:

• Team member engagement • Leadership accountability • Behavior-based safety • Ergonomics • Targeting high-risk areas • Fleet safety • Regulatory compliance

improvement tools

• Animal welfare • Maintenance training and certification • Other courses designed to enhance business understanding

2011 Training Survey Results

Safety Results and Recognition

We strive to continuously improve the quality of our training programs. To that end, surveys are distributed following training programs to determine whether the objectives of each training program are met. Following is a summary of the training survey responses we received last year:

Our plant average injury and illness rate of 5.6 is better than the poultry industry average (5.9) for the third consecutive year in a row, based on 2010 data released in 2011.* Chart SAFETY: RESULTS at right shows results for TOTAL all facilities. LOST TIME

• 98.6% of survey respondents said they could “apply •

the content of this training directly to their job” 95.9% said the “program increased their understanding of the training topic”

Read Training Manager Nancy Myers’ insight about GNP Company’s training program on page 11.

INJURY RATE

INJURY / ILLNESS RATE

FATALITIES

1.5

5.29

*SOURCE: Bureau of Labor Statistics GNP Company Farm To Fork Report 2011

HEALTHY LIFESTYLES Our team member’s health and wellbeing is at the core of our overall health and safety strategy, and encompasses our desire to encourage healthy lifestyles through a focus on engagement, prevention and education. Our three main focus areas include:

1. Physical Activity 2. Healthy Eating 3. Healthy Lifestyles In 2011, our Healthy Lifestyles team sponsored health fairs, weight loss challenges, flu shots, physical activity challenges, and biometric screenings (brief health exams that assess the risk level of a person for certain diseases and medical conditions).

LONGEVITY Team Members GNP Company™ encourages team members to put down roots and grow with our company. More than 34% of our workforce has been with the company for at least 10 years—and many for 20 or 30 years. We reward team member longevity with recognition programs and key anniversary celebrations. Following are the number of team members who have worked with GNP Company for five or more years.

NUMBER OF YEARS

5 - 10

NUMBER OF TEAM MEMBERS

271 164 115 237

11 - 15

16 - 20

> 20

Brad Triplett celebrating 25 years with GNP Company. Brad has worked in our production plant on the line, as a machine operator, and as a material/product handler. He is currently a hatchery associate.

Family Farm Partners We are also proud of the fact that many of our family farm partners have been a “part of our flock” for many years. An astonishing 49.2% of all family farm partners have been with our company for more than 20 years.

NUMBER OF YEARS NUMBER OF FARM PARTNERS

6 - 10

11 - 19

20 - 29

30 - 39

40+

49 27 81 101 42 9 GNP Company Farm To Fork Report 2011

PRODUCT HEALTH BENEFITS: DIRECT & INDIRECT

NUTRITIONAL VALUES FOR BONELESS SKINLESS BREAST* (SERVING SIZE OF 100 GRAMS/3 TO 3-1/2 OUNCES)

GNP Company’s most significant impact on people comes in the form of the nourishment our products provide. We work to enrich consumers’ lives by providing a range of naturally nutritious products and encouraging a healthy diet and lifestyle.

LOW CALORIE

140

APPROX.

PROTEIN

Chicken: America’s Healthy Choice Healthy eating requires a balanced diet, practicing moderation, and making smart food choices. And chicken is one of America’s favorite smart meats. According to current industry estimates, per capita consumption for 2012 is forecasted at 81 pounds— greatly outpacing beef at 54.1 pounds, pork at 46.2 pounds, turkey at 16.3 pounds, and fish at 15.5 pounds.

ZINC

GRAMS*

LOW FAT SATURATED FAT GRAM*

IRON

Chicken provides many essential nutrients without the less healthy attributes found in other meats. Consider the nutrition facts shown at right for one serving of boneless skinless breast meat.

NATURALLY

GLUTEN-FREE SELENIUM

Many value-added chicken products contain solutions of salt, water, phosphates, preservatives and other things consumers don’t want.

LOW SODIUM

To that end, we’re continually striving to offer products with “clean” ingredient statements—devoid of phosphates and preservatives and flavored with fresh, natural ingredients whenever possible. Our all natural line is truly all natural—without the added solution of salt, water and carrageenan found in some other all natural products (see page 21 in our Poultry section for more information).

B VITAMINS

3 6 9 12

MILLIGRAMS*

*Piece about the size of a deck of cards that’s been roasted, grilled, poached or steamed.

Healthy Recipes Chicken is a healthy source of lean protein. It’s important that it is prepared in a way that preserves its nutritional integrity by focusing on natural ingredients that are lower in fat and sodium. We regularly refresh our package labels and websites with new healthfocused recipes for added variety and nutrition. In 2011, our Just BARE® Just 5 Cooking Challenge encouraged consumers to create healthy recipes with just 5 ingredients (fresh chicken plus 4 more). Its goal: to prove that cooking doesn’t have to be complicated. Basic, wholesome ingredients can be made into healthy, delicious meals.

Roasted Rosemary Chicken & Root Vegetables

GNP Company Farm To Fork Report 2011

CUSTOMER ADVOCACY

CONSUMER ENGAGEMENT & ADVOCACY

GNP Company™ is a customer-oriented company. We believe in providing great service and on time deliveries. Last year, we told you about the measures we had taken to improve service excellence for our customers. We are pleased to report that our 2011 performance improved to historic or even better than historic levels in all areas.

Since 1986, we’ve measured the impact of our consumer marketing efforts via an annual consumer tracking study. Today, loyalty and advocacy are our key performance indicators; however, we continue to look at everything from awareness to preference to purchase intent. In years past, the research was limited to Gold’n Plump®, our flagship brand. This year, we expanded the scope to include Just BARE® with the goal of establishing a benchmark for our company’s newest premium natural brand.

2011 Perfect Order Results Perfect order is a measure that calculates the rate of errors that occur during the life of an order. Our perfect order measures include:

In addition, we’ve added metrics to our brand advocacy scorecard that track our social/digital interaction and engagement, because today’s consumers expect the brands and companies they support to engage with them as individuals via digital and social channels. We equate “likes/fans” to awareness and “interactions” to advocacy.

• Order accuracy (the right product) • Order fill/case fill (in the right quantity) • On-time delivery (at the right time) ORDER ACCURACY ORDER FILL CASE FILL ON-TIME DELIVERY

ACTUAL GOAL

99.7% 92.0% 99.4% 99.8%

99.5% 90.0% 99.0% 99.5%

KEY CONSUMER ENGAGEMENT & ADVOCACY MEASURES JUST BARE

METRIC

DEFINITION OF METRIC

Brand Preference

Purchase the brand most often

Brand Advocacy

Brand Loyalty

17% Said they have actually recommended the brand 33% Said brand is “first and only” they’ll buy OR 67% the “first one they’ll check out”

Social Interaction

Consumer participation in our various social and online channels including: Facebook®, Twitter®, eClubs & Dish on Chicken Consumer Panel

GOLD’N PLUMP (VS Previous year)

64% ( ) 39% ( ) 83% ( )

All measures meeting or exceeding industry rates, showing growth vs. previous year

SOURCES: 2011 Annual Consumer Brand Tracking Study, Burke Institute – Minneapolis/St. Paul Market. Just BARE brand first measured in 2011 so comparative previous year data is not available. Social/digital data gathered from a variety of sources such as Google Analytics, Facebook Insights, ExactTarget, Dish on Chicken Quarterly Reporting, etc.

GNP Company Farm To Fork Report 2011

THE STORY BEHIND OUR NEW MISSION STATEMENT: Dedicated to healthy food, families & farms. that there was lots of energy around four topics: FAMILY, QUALITY, INTEGRITY and FOOD.

As an increasing number of consumers lose any direct connection with agriculture, more and more of them don’t know the story behind their food. This reality coupled with conflicting information on the web and in the news has left them trying to decide what’s fact and what’s fiction.

DEVELOP, TEST, REFINE, REPEAT Developed and tested several concept mission statements with our discovery group, followed by company-wide testing of a single mission statement centering on “healthy food, families and farms.” The results were overwhelmingly positive.

To that end, we set out to identify and build a movement that would help connect consumers to their food. We started by looking inside—interviewing team members from across our company and all levels of responsibility. What we found surprised us: though most could describe what we do, there was a lack of clarity around our then current mission statement.

• 62% of team members rated the statement as •

So the project shifted from identifying a movement to refining our mission—using the voice of our team members as our compass.

“very to extremely relevant” to their jobs 65% agreed/strongly agreed that it “fits well with our company and culture”

UP NEXT: THE MOVEMENT With our new mission in place, we’re returning to our project’s original purpose: identifying and building a movement from the inside out—with our team members again guiding the way.

THE PROCESS Following is a look at the steps we took to arrive at our newly launched mission statement.

“Our ultimate goal is to connect with our customers and consumers on a topic that’s critically important to them—the people behind their food.”

INITIAL AUDIT Interviewed and and conducted group discussions with team members.

FACILITY TOURS/VISIT Talked informally with team members during tours/visits.

Julie Berling

DEEPER DISCOVERY

Brand Advocacy & Marketing Director Kettle Bell & Kickboxing Fan

Held in-depth sessions with a discovery group of about 80 team members from throughout the company (human resources, sales, live and plant operations, growers, executive leaders and marketing). We learned

2012 FOCUS FORWARD • Consumer advocacy starts with a personal touch • Creating a movement from the inside out • Heightening safety engagement

Nancy Myers Training Manager / Desert Golfer

At GNP Company, training is simply part of “the way we do things around here.” That mentality doesn’t develop overnight – it has to be fostered and encouraged at all levels throughout the organization. Collaboration between management and staff on training opportunities has resulted in improved working relationships and productivity. We learn, we share, and we have fun in the process! GNP Company Farm To Fork Report 2011

Reducing our environmental footprint across our value chain. Maintaining a healthy ecosystem is critical to our survival as a company—and as a society! We’re committed to measuring and reducing environmental impacts within our own operations and across our supply chain.

Planet OUR ENVIRONMENTAL MISSION To find ways to lessen the environmental impacts of the areas we directly control, while proactively engaging stakeholders to expand our influence in the areas we don’t control.

chemical and biological condition of soil. On page 4, you can read about Joe Bragger, one of our family farm partners, who has been a pioneer in the area of NMPs and a shining example of healthy farming through leading stewardship.

INITIATIVES Healthy food, families & farms are all dependent on the same thing—a healthy Planet. Our company is committed to preserving the viability and beauty of our natural landscape and resources.

We are also working diligently to reduce environmental impacts within our offices, live operations and processing plants. Specifically, GNP Company™ is committed to measuring and minimizing our environmental footprint in the key categories of:

At our core, we understand that healthy farms are essential to our ability to produce food that nourishes and strengthens families. That’s why we work with our family farm partners to develop agricultural practices that protect natural resources, and reduce waste and pollution.

• Energy and Emissions • Water • Waste

As just one example, we help our family farm partners to develop nutrient management plans (NMP), which are agricultural practices designed to meet the nutrient needs of crops, while minimizing the loss of nutrients to surface and ground water. NMPs help to minimize nonpoint source water pollution, as well as maintain or improve the physical,

Our environmental commitment is complemented and strengthened by the company-wide adoption of Continuous Improvement and Lean Management principles, which provide us with a comprehensive framework and set of tools for minimizing waste and maximizing efficiency.

GNP Company Farm To Fork Report 2011

GNP Company’s environmental programs come in all shapes and sizes—from major facility upgrades to supporting community gardens. Here are just a few highlights of our current efforts:

GNP Company’s B’EARTHDAY Celebration

• We purchase renewable energy certificates for

We celebrated the “birth” of our new GNP Company™ name and values framework on Earth Day, 2011—commemorating our commitment to working toward a more sustainable future.

100% of the electricity used in the production of our Just BARE® line.

• Our Arcadia production facility captures waste

heat from the plant’s compressors and uses it to preheat incoming water—saving an estimated $178,000 in energy costs each year.

• We provide plant waste to Mississippi Topsoils

which is mixed with wood/yard refuse to create natural-based potting soil and compost products.

• We strive to use post-consumer recycled or

recyclable materials in our marketing products whenever possible.

• We are a sponsor of the Nice Ride MN program in

Paul Helgeson

Minneapolis which provides convenient bike rental stations throughout the city.

Sustainability Manager 4th Generation Helgeson Urban Dweller

The results of our LCA have helped to clarify where we should be concentrating our efforts to meaningfully reduce our environmental footprint. We are committed to continuing to make strides in the areas where our impact is most significant—even if that means looking for new ways to spur innovation outside the confines of our own facilities and operations. In 2010, GNP Company conducted a life cycle assessment (LCA) to measure the environmental impact of our Just BARE chicken product across our value chain. The study revealed that a significant portion of the product’s environmental impacts fall outside our direct operational control.

LIFE CYCLE ASSESSMENT PROCESSING PACKAGING

POULTRY GROWOUT

• 35% of our greenhouse gas emissions occur

DISTRIBUTION & RETAIL

“upstream” and are related to growing corn and other feed ingredients.

• 37% come from our own operations, including MATERIAL PROCESSING

the energy used in our facilities and materials in our packaging.

CHICKEN LITTER

USER

• 28% occur “downstream” and result from activities like distribution, retail, cooking and disposal.

RAW MATERIALS

While our initial focus has been on reducing environmental impacts that are within our control, moving forward we plan to engage our grain producers, growers, retailers and customer partners in creating positive change across our entire supply chain.

DISPOSAL LANDFILL

NATURAL ENVIRONMENT

INCINERATION

THE LIFE CYCLE OF OUR PRODUCTS

GNP Company Farm To Fork Report 2011

CARBON TRUST CERTIFICATION

COMPANY-WIDE CARBON EMISSIONS

Building on the efforts of our life cycle assessment, (LCA) in 2010, our Just BARE® brand became one of the first U.S. food products to become certified by the Carbon Trust. We are the only U.S. poultry brand to display the Carbon Reduction Label on our retail Just BARE packages. The Carbon Reduction Label demonstrates our commitment to continuing to reduce our carbon footprint. Only companies who have measured and certified the carbon footprint of their products—and are committed to reducing carbon emissions—can display the label.

In addition to the LCA we completed in 2010, we are also tracking the greenhouse gas emissions associated with the energy used in our facilities and chicken barns. We are pleased to report that our absolute carbon emissions and carbon intensity decreased in 2011 from 2010 levels. However, we know there is more work to be done. We will continue to identify new strategies to reduce our emissions.

2011 COMPANY-WIDE CO2e BY ENERGY TYPE NATURAL GAS

Following are the carbon footprints of our prepackaged retail products for Just BARE—reported as carbon dioxide equivalent (gCO2e) per functional unit (equal to a 4-ounce serving):

18%

Boneless Skinless Breast Fillets – 900g Breast Tenders – 900g Boneless Skinless Thighs – 650g Drumsticks – 500g Whole Chicken – 380g

60%

LP GAS

16%

CARBON EMISSIONS AND INTENSITY*

2011 2010 2009

SCOPE 1

(kg of CO2e)

SCOPE 2

(kg of CO2e)

TOTAL

(kg of CO2e)

INTENSITY

(kg CO2e/lb)

37,260,000 55,675,000 92,935,000 0.2370 -9.97%

INTENSITY CHANGE YOY (Year-Over-Year)

ELECTRIC

In 2012, we will update the data in our LCA in order to recertify select Just BARE products with the Carbon Trust. In addition, we will continue to use the carbon footprint information of our certified products as a tool to identify opportunities to reduce the environmental impact of our broader product offerings. To learn more about the Carbon Trust certification process, visit www.carbon-label.com.

DIESEL

35,907,000 58,543,000 94,450,000 0.2633 -3.63%

GNP Company Farm To Fork Report 2011

38,035,000 56,892,000 94,927,000 0.2732 ––––

ENERGY Energy has been a focal point for GNP Company™ for many years—both in terms of improving the energy efficiency of our facilities and processes, and in encouraging conservation wherever possible. Our cross-functional power management teams meet monthly to review and identify new opportunities to reduce energy consumption in our facilities. Our efforts are paying off! In 2011, we saw a reduction in intensity over 2010 for our electric, natural gas, diesel and LP gas usage.* However, it’s important to note that some of this reduction was due to 2011’s mild winter and increase in total pounds produced.

ENERGY USE AND INTENSITY*

ELECTRIC

NATURAL GAS

DIESEL

LP GAS

2011 2010 2009

71,035,000 70,392,000 INTENSITY (kWh/lb) 0.1821 0.1962 INTENSITY CHANGE YOY (Year-Over-Year) -7.66% -0.34% TOTAL (therms) 3,134,000 3,064,000 INTENSITY (therms/lb) 0.0080 0.0085 INTENSITY CHANGE YOY -6.39% -6.62% TOTAL (gallons) 566,000 534,000 INTENSITY (gallons/lb) 0.0014 0.0015 INTENSITY CHANGE YOY -3.05% -0.34% TOTAL (gallons) 2,525,000 2,414,000 INTENSITY (gallons/lb) 0.0064 0.0067 INTENSITY CHANGE YOY -4.29% -13.40% TOTAL (kWh)

68,407,000 0.1969 –––– 3,178,000 0.0091 –––– 519,000 0.0015 –––– 2,699,000 0.0078 ––––

*Energy, water and CO2e values include most of our processing plants, feed mills, elevators, hatcheries, barns and GNP Company-owned trucks. Leased facilities, such as the company’s corporate office, and other minor business activities are not included. Intensity is calculated by dividing total volume used by finished pounds of chicken. Last year, we calculated intensity using an intermediate number for finished pounds, rather than finished pounds to inventory. This year, we changed the way we collected data to more accurately measure our energy use.

GNP Company Farm To Fork Report 2011

WATER As a food processing company, we understand that water is vital to our continued operation and success. We also understand that water scarcity is an issue that will continue to grow in importance for our company and others in our industry. That’s why we’re focused on identifying new opportunities to reduce water consumption and improve wastewater quality in our manufacturing processes. To learn more about our efforts, read about the expansion of our Cold Spring Wastewater Treatment Plant on the next page.

WATER USE AND INTENSITY

2011 2010 2009

629,122,000 602,852,000 562,886,000 INTENSITY (gallons/lb) 1.6046 1.6805 1.6201 INTENSITY CHANGE YOY (Year-Over-Year) -4.51% 3.73% ––– TOTAL (gallons)

Just BARE’s linerless label saved 20,000 lbs. in packaging waste in 2011 The process of identifying new solutions hasn’t been easy, as many sustainable packaging materials do not meet our standards for food safety, and aren’t strong enough to survive the rigor of production, transportation and storage. However, we know this is an ongoing process and are committed to continuing to explore new options and making reductions where possible.

WASTE In addition to reducing waste and improving recycling in our plant and office operations, we remain focused on identifying new opportunities and innovation to reduce waste in our product packaging. Last year, we introduced a new linerless label for our Just BARE® brand that eliminates the need for a release liner or peelaway. Our efforts were recognized by packagePRINTING’s Excellence Awards, where we took first place in the Sustainability category.

GNP Company Farm To Fork Report 2011

COLD SPRING WASTEWATER TREATMENT PLANT In July 2011, GNP Company™ completed a major expansion of the wastewater treatment plant at our chicken processing facility in Cold Spring, MN. The expansion was the culmination of two years of research of evaluating new technologies—with the goal of meeting or exceeding the wastewater rules and limitations established by the U.S. Environmental Protection Agency (EPA) and Minnesota Pollution Control Agency (MPCA).

The improvement in turbidity is partially due to the plant’s membrane bioreactors. Membrane bioreactors are a leading wastewater treatment technology that combines conventional biological wastewater treatment with a dense membrane filtration system. In other words, the wastewater is first treated with bacteria to remove many of its contaminants, and is then vacuumed through a membrane filter comprised of very small fiber openings for further treatment.

GNP Company’s new wastewater treatment plant operates 24 hours a day, seven days a week. With the facility upgrades, which include biological phosphorus and ammonia Pictured here is wastewater from nitrogen reour processing plant “before” (left) moval, we have and “after” (right) treatment. The treated wastewater has a turbidity of been able to “cloudiness” rating of 0.1 - 0.3 versus meet EPA and 8 - 12 of a typical treatment system. MPCA limits; reuse the effluent (discharged) wastewater in our processing plant; and measurably improve energy efficiency.

The result looks as clear as drinking water and is clean enough to be reused in noncontact areas of our processing plant. Specifically, we can reclaim about 300,000 gallons of the treated water each day for uses such as watering the lawn and landscaping around the building. We have also started working with the U.S. Department of Agriculture (USDA) and other government agencies to determine the potential of using treated water in other areas of the plant. In addition, since 2000, GNP Company has centrifuged and separated its secondary sludge and supplied it to a local business to make organic composting.

The “turbidity,” or cloudiness, of our discharged wastewater has also improved significantly. This is particularly notable when you consider the fact that we have over 1 million gallons of water flowing through the system each day.

POTABLE WATER TO PLANT

2010

312,661,000 GALLONS 318,661,000 GALLONS 302,839,000 GALLONS 291,517,000 GALLONS 9,822,000 GALLONS 27,144,000 GALLONS

2011 REDUCTION

EFFLUENT WATER TO RIVER

2012 FOCUS FORWARD • Energy and water efficiency improvements • Solar energy projects • The quest for more sustainable packaging • Reusable pallets

The expansion of our Cold Spring wastewater treatment plant has exceeded our expectations in terms of improving efficiency and the quality of our wastewater. In many cases, the effluent water leaving our plant is actually cleaner than the water it ’s flowing into! GNP Company Farm To Fork Report 2011

Clay Watson Environmental Manager Classic Car Enthusiast

Delivering safe, nutritious and humanely raised products to the marketplace. We’re acutely aware that consumers entrust us with the health and well-being of their families. That awareness is what drives us to make no compromises when it comes to the care of our chickens, or our promise to provide safe, relevant, transparent and truthfully labeled products.

Poultry ANIMAL WELFARE COMMITMENT

ACTIVE GROWER MANAGEMENT PROGRAM

GNP Company™ adheres to strict animal welfare standards, as established by the National Chicken Council (NCC), industry experts and university scientists. Our animal welfare program includes the following practices and safeguards:

We are committed to providing a safe and healthy environment for our animals. Our Active Grower Management Program was developed to standardize the way we work with our family farm partners and care for our broiler (meat/processing) and breeder (egg-laying) chickens.

• Annual animal welfare training • Routine evaluations of our performance against

The program grew out of a continuous improvement project and has evolved over the past few years to provide a scientific and systematic basis for how we monitor the proper handling of our broiler and breeder flocks.

the NCC Animal Welfare audit checklist

• Follow the humane euthanization standards

established by the United States Department of Agriculture (USDA) and NCC

• Enforcement of a zero tolerance policy for any

deliberate inhumane treatment of our chickens

We evaluate and monitor every aspect of our chickens care — from ’ the quality and nutrition level of their feed, to the condition of their barn environments. Our Active Grower Management Program has succeeded in increasing the rigor and transparency of our processes to ensure a high standard of care. Wayne Sanders GNP Company Farm To Fork Report 2011

Live Production Manager Downhill Daredevil

AMERICAN HUMANE CERTIFICATION In October 2011, our Just BARE® chicken products passed the rigorous American Humane Certified® (AHC) standards for the raising and handling of farm animals. The decision to become certified was made in direct response to customer and consumer demand. “Animal welfare is a critical requirement for a growing segment of more conscientious, natural consumers and suppliers/retailers,” explains Julie Berling, Director of Brand Advocacy & Marketing for Just BARE. “More and more, consumers are looking for brands that can prove their claims and are willing to open up their operations to third-party audit and review.”

The American Humane Certified® seal signifies that an independent, third-party audit verified Just BARE’s animal care, handling and processing practices met or exceeded the more than 200 rigorous requirements of the American Humane Association.

In a research study conducted with the company’s consumer panel, 91% of the brand’s target consumers rated the verification of animal welfare as very/ extremely important. And nearly 2 out of 3 said they placed a high degree of trust in third-party animal welfare certification, as long as it was done by a recognized and reputable association.

A preliminary audit of our company’s animal care, handling and processing practices for the Gold’n Plump® brand indicated that they too would likely meet the AHC standards. However, only the Just BARE brand was certified.

Key strengths of the American Humane Certified Farm Program: 1) It is the first and fastest-growing farm animal welfare program in the United States;

“This attribute is most important to the Just BARE target consumer,” Berling explains. “However, we will continue to monitor consumer attitudes to determine if third-party certification for Gold’n Plump is feasible in the future.”

2) It’s backed by the American Humane Association,™ (AHA) which has a 134-year history of using a moderate, science-based and solutions-driven approach to protecting animals and children; and 3) It is built around a comprehensive set of sciencebased standards and sound research, which are reviewed regularly by a Scientific Advisory Committee of respected animal welfare experts.

91% ALL

AREAS OF HIGH INTEREST REGARDING ANIMAL WELFARE

JUST BARE

CONSUMERS CONSUMERS

73% Chicken feed ingredients 69% Care/handling at the farm 56% Conditions in which chickens were raised (e.g. space to roam) 55% Processing practices

SOURCE: 2010 Dish on Chicken Panel Study

GNP Company Farm To Fork Report 2011

79% 74% 62% 67%

OF JUST BARE’S TARGET CONSUMERS RATED THE VERIFICATION OF ANIMAL WELFARE AS VERY OR EXTREMELY IMPORTANT.

CONSUMER-DRIVEN Ensuring that our products are relevant, safe and on-target for consumers requires ongoing research and dedicated resources. A key source of insight is our Dish on Chicken (DOC) Panel. Our DOC panel has nearly 800 members and is surveyed regularly on topics ranging from product packaging to sustainability. We conducted nine studies in 2011 to ensure our products and brands are resonating with target consumers.

NEW PRODUCT OFFERINGS We are committed to delivering products that meet the needs of our consumers. In 2011, we added a line of Seasoned Boneless Skinless Breast Fillets to our Gold’n Plump® brand. Each fillet is vacuum-sealed and individually wrapped in single portion-sized packages for easy storage in the refrigerator and freezer. They are available in four delicious flavors and feature simple and natural ingredients, without the use of unwanted preservatives or phosphates. Product varieties include: Lemon Pepper, Original (named for its delicious “chicken” flavor), Butter & Herb, and Tomato Basil. All flavors, with the exception of Tomato Basil, are gluten-free.

This past year, we also worked on bringing healthier, lower-fat chicken alternatives for ground beef and pork sausage to market. In 2011, we added a full line of ground chicken products to our Gold’n Plump brand, with chicken sausages launching in 2012.

GNP Company Farm To Fork Report 2011

822%

MORE SODIUM THAN TRULY PUMPED-UP CHICKEN CAN CONTAIN AS MUCH AS NATURAL CHICKEN—AS MUCH SODIUM AS AN ORDER OF FRENCH FRIES AND OVER 25% OF THE RECOMMENDED DAILY ALLOWANCE FOR A HEALTHY ADULT.

Say NO to “PUMPED-UP” Chicken

91%

OF CONSUMERS BELIEVE THAT NATURAL CHICKEN SHOULD NOT CONTAIN ANY ADDED INGREDIENTS.

50%

OF CONSUMERS DON’T EVEN KNOW THERE’S SALTWATER IN THEIR MORE THAN CHICKEN. BUT THEY WOULD...IF THE INGREDIENTS ON THE LABEL WERE PRINTED IN A SIZE THE AVERAGE PERSON COULD READ. SOURCE: Truthful Labeling Coalition (TLC)

TRUTHFUL LABELING GNP Company™ is also committed to being transparent about the ingredients in our products. In keeping with that commitment, we are a member of the Truthful Labeling Coalition (TLC), which is a group of truly all natural chicken producers and thousands of grassroots citizens in all 50 states. By joining TLC, chicken producers agree that they won’t label solutionpumped products “all natural.” When it comes to fresh meat and poultry, the United States Department of Agriculture (USDA) defines the term natural as, “a product containing no artificial ingredient or added color, and is only minimally processed.” However, some chicken products marketed as “natural” have been altered by adding sodium, water, binding agents like carrageenan, additives and other ingredients. That’s why the TLC has urged the USDA to only allow 100% natural chicken to be labeled as “natural,” and to ensure that all ingredients are printed on product labels in a size that can be read by the average consumer.

37,000

In 2011, the TLC’s work resulted in the USDA proposing a new rule that would require all meat and poultry companies to clearly label enhanced fresh and frozen products. The USDA received approximately 37,000 public comments in support of the new labeling rule during the comment period, which ended January 9, 2012.

THE USDA RECEIVED PUBLIC COMMENTS SUPPORTING THE CLEAR LABELING OF FRESH AND FROZEN CHICKEN PRODUCTS.

GNP Company Farm To Fork Report 2011

FOOD SAFETY LEADERSHIP Food safety is a long-standing value for GNP Company™. We have standard operating procedures for every critical process, conduct real-time monitoring, and perform monthly reviews to ensure compliance with those procedures. Last year, we met our goal of achieving Safe Quality Food (SQF) 2000 Level 2 certification at all of our processing facilities. SQF 2000 certification is recognized by the Global Food Safety Initiative and is focused on food manufacturers/distributors.

Jill Stuber Quality Systems Verification Manager Power Lifter

Food safety is paramount at GNP Company. We are continuously improving our efforts to meet or exceed the highest international standards for food safety. We are committed to being “audit - ready” every day.

Level 2 certification means that a food safety risk analysis of the product and its associated processes has been completed to identify the hazards and actions taken to eliminate, prevent or reduce their occurrence. In 2011, we were successful in recertifying under the SQF 2000 Level 2 guidelines. Furthermore, each of our plants improved their score upon recertification. The set of standards required for certification is based on the best manufacturing practices for all food products worldwide.

One world. One standard. The SQF Program has several advantages over other certification schemes. These are:

• It is the only certification system recognized by retailers and foodservice providers who require HACCP (short for Hazard Analysis Critical Control Point) food safety and quality management systems of their suppliers.

• It is administered by the Food Marketing Institute and benefits from ongoing feedback from retailers about consumer concerns.

100%

• Though designed as a food safety

OF OUR PRODUCT IS MANUFACTURED IN FACILITIES THAT ARE SQF 2000 LEVEL 2 CERTIFIED. SQF CERTIFICATION IS RECOGNIZED BY THE GLOBAL FOOD SAFETY INITIATIVE.

system, it is the only certification plan that also offers special recognition for product quality. SOURCE: Safe Quality Food Initiative Supplier Brochure on sqfi.com

GNP Company Farm To Fork Report 2011

HAPPY, HEALTHY CHICKENS flocks have the appropriate amount of clean water and healthy feed, and ensure that they are protected from the elements, pests, predators and disease.

Achieving animal welfare certification for our company’s Just BARE® brand this year was an important benchmark for GNP Company’s animal welfare program. But in the spirit of continuous improvement, we know there is always more work that can be done.

As part of our Happy, Healthy Chickens program, we’ll also research the natural behaviors of wild chickens to determine whether we can (and should) translate their innate tendencies to a barn environment. Our goal is to implement new systems and procedures that foster a happy, healthy flock.

We are in the formative stages of launching a new initiative that we are calling “Happy, Healthy Chickens.” It’s a new, positive approach to animal welfare that focuses on the chicken’s health, wellbeing and feelings. As part of the program, we are working with a leading university to focus on three key areas of animal welfare:

“We’re pleased to add Just BARE to our roster of American Humane Certified® brands. Just BARE chicken represents a higher standard of premium, natural chicken, with a demonstrated commitment to the welfare of animals and that of the planet.”

1) Bird’s basic functions and needs 2) Bird’s feelings 3) Natural behavior The basic functions and needs of our birds is something that our company and industry have been focused on for a long time. We monitor that our

Kathi Brock Senior Director, American Humane Association™

2012 FOCUS FORWARD • Continued product and packaging evolution • Defining the next generation of safety and quality

Deirdre Johnson Company Veterinarian Bird Lover

Happy, Healthy Chickens puts chickens first. The goal of the program is to take a comprehensive, research-based approach to animal welfare, rather than viewing the needs of our animals through the bias of a human lens. We’re excited about the research and where it might take us in the future! GNP Company Farm To Fork Report 2011

Ensuring the economic vitality of our business, suppliers, partners and community. When we succeed as a business, we are committed to sharing that prosperity with our team members, business partners and our communities. We gauge our performance in Progress by our profits, business growth, and ability to invest in the local economies where we live and work.

Progress CORPORATE GIVING Giving back is an integral part of our culture at GNP Company™. Our philanthropic mission is:

We donate the majority of our food products to local food banks or organizations focused on family and youth development, as they have the infrastructure and mechanisms to connect with the individuals who need it most.

To support sustainable partnerships and programs around food, families and farms to help build stronger communities with GNP Company facilities and in key markets where Gold’n Plump® and FOR MORE THAN Just BARE® products YEARS GNP COMPANY are distributed.

For the benefit of our team members and family farm partners, GNP Company gives priority to the greater communities of St. Cloud, Cold Spring, and Luverne, MN; and Arcadia and Independence, WI. We also support communities in key distribution areas where our brands are sold.

HAS BEEN RECOGNIZED FOR DONATING

We believe our greatest opportunity to have a positive impact comes in the form of providing wholeOF OUR PRE-TAX some, nutritious chicken products PROFITS TO to people in need. CHARITABLE CAUSES. Quality protein sources are in short supply, especially in areas with limited access to healthy, affordable food known as “food deserts.” In 2011, GNP Company donated 4 million meals’ worth of chicken to hungry families in Minnesota and Wisconsin.

2011 GIVING BY SECTOR AND VALUE COMMUNITY DEVELOPMENT EDUCATION, INDUSTRY, FAMILIES IN CRISIS HUNGER RELIEF TOTAL

GNP Company Farm To Fork Report 2011

VALUE %

$ 310,966 $ 41,352 $ 710,680 $ 1,062,997

29% 4% 67%

SPONSORSHIP • Minnesota Lynx: Partnership with the Minnesota

Our Just BARE® and Gold’n Plump® brands support programs that align with the interests and concerns of each brand’s target consumers. While hunger relief is a priority for both brands, following is a recap of the specific focus areas and sponsorship highlights for each brand.

Lynx and Hutchinson, MN native Lindsay Whalen promoting healthy cooking.

• Ribapalooza: Providing about 1,000 pounds of chicken for the Backyarder BBQ competition.

• St. Cloud River Bats: Partnership supporting a

family-focused activity and local baseball team.

2011 Sponsorship Focus Gold’n Plump 1. Agricultural education 2. Youth leadership development 3. Family community events and causes that promote healthy living, family time and active lifestyles 4. Cooking education for basic, family-friendly recipes and wholesome meal ideas

Just BARE 1. Education about growing, harvesting and preparing meals with simple and fresh ingredients 2. Events/programs celebrating local farming, community gardening, and sustainability 3. Helping families adopt healthy eating habits

Just BARE

• Nice Ride MN: Nonprofit formed to own and operate a public bicycle-sharing system. Just BARE® sponsors kiosk locations in downtown Minneapolis.

• Mahtomedi Kids Community Garden Project:

2011 Sponsorship Highlights

Project that teaches kids about growing fresh food, cooking, and the value of community.

Gold’n Plump

• Gilbert Brown Foundation: Foundation providing

• ZisBoomBah: Website created to help educate

• WingFest 2011: Event that promotes and sup-

INVESTING IN LOCAL SUPPLIERS

kids and parents about healthy choices.

education and activities for youth, and promoting diversity in communities throughout Wisconsin. ports one of our home communities.

• FireFest: Fundraiser supporting the Cold Spring

We believe our company’s influence on our local communities extends beyond the direct payment of wages and taxes. By supporting local business in the supply chain, we can attract investment to the local economy and help build healthy, thriving communities.

Fire & Rescue Department Relief Association.

• Spirit 92.9 “Gold’n Good Award”: Radio program award that recognizes individuals who are working to improve the local community.

• Annual Poultry Prince & Princess Contest

We make a conscious effort to rely on local farmers— both as feed ingredient suppliers and as contract chicken growers. We measure our performance by looking at the percentage we spend in the local economy on contract growers and corn, which is the predominant ingredient in our feed.

(MN State Fair): Co-sponsored with the Minnesota 4-H event celebrating the poultry knowledge, leadership and skills of Minnesota youth.

• WCCO High School Sports Rally: Sponsorship recognizing high school sports.

• Midwest Grill’n with Mad Dog & Merrill: Ongoing partnership providing learning and laughter to grillers in Minnesota and Wisconsin.

• 100% of corn was purchased from farmers within 75 miles of our feed mills • 100% of family farm partner payments (contract growers) were made to farms within 60 miles of our hatcheries and processing plants

• Mall of America: Sponsorship of Nickelodeon

Universe giving us the ability to host events at the mall, including food drives.

GNP Company Farm To Fork Report 2011

CUSTOMER GROWTH

2011 was a record year in terms of sales. We experienced escalating growth in our foodservice business, and nearly doubled sales of Just BARE®. We also gained a new partnership with United Natural Foods, Inc. (UNFI)—a natural foods distributor that supplies about 25,000 co-op grocers across the nation. We developed a new premium frozen carton program for UNFI that is expanding our reach with natural food consumers throughout the country.

RETAIL

DELI

FOODSERVICE

INDUSTRIAL / EXPORT

SALES

•

DRESSED POUNDS

$400

400

$350

350

$300

300

$250

250

$200

200

$150

150

$100

100

$50

$0 (IN MILLIONS)

1990

1995

2000

2005

2010

37% 16% 21% 16%

17% 12% 15% 22%

*Does not include surplus sales so percentages will not equal 100%

HISTORICAL GROWTH OF SALES AND DRESSED POUNDS

•

NET SALES NET SALES

BUSINESS SEGMENT DOLLARS* POUNDS*

2011

0 POUNDS

2011 SALES:

$338 MILLION

396

MILLION POUNDS

OVER THE LAST 3 YEARS

WE HAVE GROWN

(IN MILLIONS)

OVER THE PREVIOUS 3 YEARS* *As measured by dressed pounds

DISTRIBUTION AREA • • GNP Company Farm To Fork Report 2011

FOODSERVICE RETAIL & DELI

2011 Team Member Certifications

GNP Company’s continuous improvement efforts are the result of our team members’ ability to analyze the situations that they face every day. We respect their ability to solve problems. With their expert input, we are becoming the industry leader in premium poultry products.

(company-wide)

Dean Kirkeby

PROCESS EXCELLENCE We strive for process excellence using Lean Manufacturing and Six Sigma approaches for both process and product improvement. Peak process performance is maintained through ongoing measurement and real-time, data-driven decision making. Ongoing company-wide training infuses Lean and Six Sigma knowledge across the organization and provides advanced Green and Black Belt certification.

Continuous Improvement Manager Back Roads Hiker

Gold Belt Certifications Completed: = 17 Green Belt Certifications Completed: = 14 Black Belt Certifications Completed = 3

CONTINUOUS IMPROVEMENT

2011 Projects:

• Lean = 91 • Six Sigma =31 • Problem Solving =13 • Employee Suggestion Program = 437

CI GOAL: To harness and apply the power of all three CI tools throughout our company

• Company-Wide Savings: $4,340,547

PROBLEM-SOLVING

SIX SIGMA

LEAN

Structured method to resolve day-to-day breakdowns in manufacturing or service processes for improved:

Reducing defects and variations for greater:

Improving efficiency and cycle times for:

THE RESULTS

RELIABILITY, UP-TIME & SERVICE

STABILITY, ACCURACY, PROCESS CONTROL & QUALITY

IMPROVED SPEED & EFFICIENCY

THE METRICS

Customer Satisfaction, High Team Member Engagement, Process Control, Leading Quality & Safety Assurance, Smaller Environmental Footprint

THE TOOLS

employees made 1209 suggestions

AWARDS AND RECOGNITION GNP Company was honored to receive the following awards and recognition in 2011:

• Meatingplace Jesse Jewell Award: Each year, the

Jesse Jewell Award is given to a poultry processor whose products, processes or overall approach to marketing or management have improved not only its own bottom line, but raised the standard of excellence for the industry.

• packagePRINTING’S 2011 Excellence Awards: 1st place for sustainability category for our linerless labels for Just BARE®.

• Minnesota Keystone Company: GNP Company has been recognized for donating 5% of our pre-tax profits to charitable causes each year for more than 20 years.

• Joint Poultry Industry Safety & Health Council

2011 Award of Honor: Our Arcadia, WI feed mill was recognized for its strong safety record.

• Twin Cities Business 200 Minnesotans You Should Know: Chief Executive Officer Michael Helgeson was recognized as one of the State’s top leaders.

• Minneapolis-St. Paul Business Journal: Named one of the “Top 100 Private Companies.”

We were also recognized for our contributions to the State of Wisconsin:

• Governor Scott Walker signed a Proclamation to

commemorate years of positive, local impact, declaring April 19, 2011 “Gold’n Plump Poultry Day.”

• The Wisconsin State Legislature, on behalf of

Representative Chris Danou and Senator Kathleen Vinehout, honored GNP Company with an official citation for contributions to Wisconsin.

• United Way Awards: GNP Company received four awards for its 2011 fundraising efforts.

GNP Company Farm To Fork Report 2011

THE GOLD’N PATH “Continuous improvement” (CI) is more than a catch phrase at GNP Company™. It’s a fundamental value and set of tools that underlie all of our policies and processes. Our continuous improvement plan is aptly named “The Gold’n Path.” For more than 10 years, we have been busy honing our Problem Solving, Six Sigma and Lean Management skills and tools to develop a single way for all team members to achieve our goals of excellence in the food processing industry. The Gold’n Path provides a roadmap with the steps to integrate continuous improvement and lean management across our operations.

UNITED WAY AWARDS GNP Company was recognized by the United Way of Central Minnesota for its 2011 campaign. Not only did team members and company fundraising efforts net more than $100,000 in donations last year, but we were also recognized for the creativity we demonstrated in our fundraising events and activities.

Top CI/Lean Improvements 1) Whole Leg Skinning: Improved the skin removal process in the whole leg deboning operation. Reduced meat loss and labor for an annual savings of $1,216,574. 2) Improve Tender Removal: Improved the tender removal process in the breast debone area. Created more saleable pounds of tenders for an annual savings of $584,389.

Our four awards included:

3) First Processing Wing Salvage: Captured wing segments that were previously lost in the trimming process. Created more saleable pounds for an annual savings of $264,000.

• Best Giving Communities – For best performance

• Best In Show – For creativity in its overall “Give a Peep – Live United” fundraising campaign. among individuals who led by giving more than $1,000 as part of the Leaders in Giving program. Participation at this level increased by 40% and total dollars donated from these individuals increased by 20% in 2011 over 2010.

4) Salvage Pound Reduction: Improved salvage operations and reduced pounds lost for savings of $216,294 per year.

• Best Year-Round Partnership – For year-round campaigns and effort.

5) Reduction of Cardboard Combo Use: Implemented reusable plastic totes and decreased our usage of cardboard by $133,248 per year.

• Best Special Event(s) – For raising awareness for United Way through 10 special events held throughout the year.

2012 FOCUS FORWARD • Our continuing lean journey • The growing natural channel

Giving back is deeply entrenched in GNP Company’s history and culture. We are committed to supporting causes that enrich food, families and farms through meaningful education, youth leadership development and community events. Michael Helgeson Cheif Executive Officer GNP Company Farm To Fork Report 2011

A FEW LAST WORDS ON HEALTHY FOOD, FAMILIES & FARMS

FOOD Even with recent productivity gains, roughly one in seven people lack access to food or are chronically malnourished. SOURCE: gmopundit.blogspot.com As of 2010, 48.8 million Americans lived in food insecure households—including 32.6 million adults and 16.2 million children. SOURCE: FeedingAmerica.org Food insecurity exists in every county in America, ranging from a low of 5% in Steele County, ND to a high of 38% in Wilcox County, AL. SOURCE: FeedingAmerica.org

FAMILIES According to the Journal of American Medicine, 43% of American families eat together every day. According to a CBS news poll, 33% of viewers say the TV is always on during their dinner, with 27% saying it’s on half the time, or sometimes. In the last 50 years, the obesity rate in the country has more than doubled due to increasing portion size and calorie intake. SOURCE: cbsnews.com Copyright 2010 CBS. All rights reserved.

FARMS To keep up with population growth, more food will have to be produced in the next 50 years than the past 10,000 years combined. SOURCE: americasfarmers.com As the U.S. farm population has dwindled, the average age of farmers continues to rise. In fact, about 40% of the farmers in this country are 55 years old or older. SOURCE: epa.gov/agriculture Today’s farmer grows twice as much food as his parents did—using less land, energy, water and fewer emissions. SOURCE: americasfarmers.com

LEARN MORE: Visit gnpcompany.com or talk to one of our experts. Get contact information for any Farm To Fork Report contributor from our Human Resource Generalist, Darla Stellmach, at dstellmach@gnpcompany.com. P.O. Box 1106 St. Cloud MN, 56302-1106 320-251-3570

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