National Pork Board Pork Management Conference Tyson Fresh Meats, Inc. Dan Peed, Director Natural Pork Programs

General Meat Industry Statistics

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Home Grocery Delivery Growth Online grocery is a $927.1 million industry with an average 8.5% margin. For comparison, brick and mortar stores are at an average of 1.3% margin 1 Online grocery sales have increased 14% over the last five years, with an expected increase through FMI, IBIS World, 2014

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Locally Sourced Everything 2/3 of American consumers check to see if their food is locally produced 1 38% of consumer define “local” pork or beef as being in their state/surrounding states 2 8 What does the word “local” mean to you? My state/surrounding states38% My area23% In the US8% miles8% <50 miles6% Region5% My city/town4% >100 miles4% Community/Vicinity2% County2% 1. Consumer Reports National Research Center, Food Labels Survey TFM Consumer Monitor Survey, n=1,000

Natural/Organic Meat and Poultry Demand

Natural Confusion 1 in 3 consumers do not make a quality distinction between the terms “natural” and “organic” and/or government regulation for products with such labels 1 60% of people believe a natural label means packaged and processed foods have no GMOs, no artificial ingredients or colors, no chemicals and no pesticides 2 45% think that natural is a verified claim USDA definition for ‘natural’ = minimally processed, no artificial ingredients Natural Marketing Institute, n=1,005 2.Consumer Reports, USDA, Meat and Poultry Labeling Terms

Consumers are actively searching for natural meat products Sales are Increasing Sales of fresh meat labeled “natural” increased 23.5% in the 52 weeks ended Nov. 1 st, 2015, to $2.86 billion, on a volume increase of 20.8% for the period. Meanwhile, IRI reports that sales of conventional meat for the same period rose just 3.8%, to $41.9 billion, on volume that was down 0.1% for the period 1 1.IRI FreshLook data, 52 weeks ending 11/1/15 2.Sealed Air/National Meat Case Study 2015 & Nielsen, as presented in The Power of Meat © 2016 * Availability 2 is Increasing *** Narrowing Spread for natural/organic meat & poultry 2

Fresh Pork Demand

Pork is a widely purchased category, with 77% of U.S. households purchasing Whole muscle pork sales continue to grow year over year in dollars with a 7.9% increase in 2015, and a corresponding 1.5% increase in pounds The fresh pork share of fresh meat department sales dollars grew 7.1% to $8.99 billion in Nielson, 2015 & 2016

Natural Fresh Pork Demand

Consumers are specifically interested in buying natural pork 98% of respondents are likely to purchase natural pork on future shopping trips Tyson Fresh Meats, Inc., 2015 NAE Pork Research. Base n = 600

Consumers are looking for pork with specific production-based attributes Tyson Fresh Meats Consumer Monitor Survey, 2015, Base n=1,001 Tier 1*: These attributes are significantly more important than the rest Tier 2*: These attributes are significantly higher than the rest, although lower than tier 1 Tier 3*: These attributes are significantly higher than the rest, although lower than tier 1 and 2 Tier 4*: These are the least important * The attributes within the tiers are not statistically different between one another All-natural and no added growth hormones are the most important attributes among those listed when shopping for pork

Types of Pork Purchased All-natural, organic, no added hormones and antibiotic-free pork show significant increases in purchase since over time Purchase for other, less well-known types of pork has remained steady over the past year Have bought this** Spring 2015 Fall 2015 Spring 2016 All-natural Pork 36%37%46% Premium Pork 36%31%41% Locally Raised Pork 29%24%33% USDA Organic Pork 26%24%34% Raised with No Added Growth Hormones 23% 32% Antibiotic-free Pork 20%22%30% PrimeNA 29% Fed No GMOs 19%16%21% Free Range Pork 17%15%20% Pasture raised Pork 16%15%20% Fed a Vegetarian Diet 13% 15% Imported Pork (from outside the U.S.) 11%9%12% Berkshire Pork 12%10%15% Duroc Pork 8%7%11% Gestation Stall Free Pork 6%8%10% Tyson Fresh Meats Consumer Monitor Survey, 2015, Base n=1,001

General Pork Production

Natural Fresh Pork Demand Nationwide, more than 68,000 pork producers annually market more than 110 million hogs. These animals provided total gross receipts of $23.4 billion. National Pork Producers Council, 2015

Gestation Free Stalls is Big Business Over the past 10 years alone, farmers have invested more than $1.37 million into swine housing research and $3.13 million in general research to improve animal well-being 1 Open pen use: 17.3% of sows spend a portion of gestation in open pens and 23.8% of large farms indicated an increase of open pens major food companies have policies to shift away from gestation stalls – with McDonalds, Wendy’s, Kroger, Safeway, and Costco leading the pack 1.National Pork Board, cratefreefuture.com, 2016

January 8, 2014 Statement from Tyson Foods, Inc. As part of the evolution of our FarmCheck™ program, Tyson will increase third-party sow farm audits in We urge all pork producers to use video monitoring in their sow farms to increase oversight and decrease biosecurity risks. We encourage pork producers to discontinue the use of manual blunt force as the primary method of euthanizing sick and injured piglets. We support the development and use of pain mitigation for tail docking and castration for piglets. We urge pork producers to improve housing systems for gestating sows by focusing on both the quality and quantity of space provided. We recognize there are differing views on these issues and that this letter raises questions. While we don’t have all the answers, we can tell you we plan to work with you as well as our Animal Well-Being Advisory Panel, industry groups – such as the National Pork Producers Council – and our customers in the coming months.

Thank You Any Questions? Dan Peed Director Natural Pork Programs