Cargill Feed Safety and Regulatory June 5th, 2018 www.cargill.com

Introductions Krystal Gage Feed FSQR Manager Starches & Sweeteners North America Oversight of quality, feed safety and regulatory programs for SSNA branded Feed plant locations Blair, NE – Cargill’s largest asset in the world! Fort Dodge, IA Eddyville, IA Dalhart, TX Bovina, TX Dayton, OH Wahpeton, ND Clover Heneger Enterprise Feed Specialist Starches & Sweeteners North America Branded Feed process trials, quality systems and process improvements Management of feed safety programs and systems Feed production support

Cargill History Founded in 1865 Small grain warehouse in Conover, Iowa Expansion of the company followed the expansion of railroads Cargill consists of several global operations Food Ingredients & Bio-Industrial Animal Nutrition Protein & Salt Agricultural Supply Chain Metals & Shipping Risk Management Transportation and Logistics

Starches and Sweeteners North America (SSNA) 2,140 Employees 9 Manufacturing facilities One of four major global product groups in the Food Ingredient & Bio-Industrial Enterprise (FIBI) Cocoa & Chocolate (CCC) Global Edible Oil Solutions (GEOS) Malt Starches, Sweeteners & Texturizers (CSST)

Starches and Sweeteners North America – Feed Products Branded feed products Empyreal® Sweet Bran® SB Plus RAMP® OneTrak® Value driven by added benefits and services to our customers Commodity feed Corn Gluten Meal Corn Germ Meal Corn Gluten Feed Sweet Gluten Feed Corn Gluten Feed Pellets Widely sold on the market, prices based on market trade value “Everyone makes them”

Feed Safety and Regulations in Industry Food safety modernization act (fsma) Rules for Animal Food Preventative Controls – Rules published by the FDA Firms shall register with the FDA Good Manufacturing Practice Requirements (GMP) Establish and implement Food/Feed Safety systems Hazard analysis, preventative/process controls, sanitation, etc. Management of preventative controls – monitoring, corrections, corrective actions, verification Supply chain management Risk assessment for suppliers FDA/CVM Increased inspection rights Access to all food/feed safety documents and records Forced recall

Feed Safety and Regulations in Industry Veterinary feed directive Veterinary Feed Directive (VFD) Effective January 1, 2017 Process for authorizing use of animal drugs intended for use in animal feed that require the supervision of a licensed veterinarian VFD Drug Drug intended for use in or on animal feed Applies to medically important antimicrobials in feed when needed for specific animal health purposes VFD Written statement issued by a licensed veterinarian in the course of the veterinarian’s professional practice, ordering the use of VFD drug or combination VFD drug in or on an animal feed

Consulting Bodies Food and Drug administration / center for veterinary medicine (CVM) FDA regulated both food and feed Center for Veterinary Medicine (CVM) is the animal side of the FDA Derive authority from Code of Federal Regulations BSE – Bovine Spongiform Encephalopathy 21CFR589 – Substances Prohibited from Use in Animal Food or Feed Medicated Feed 21CFR225 – Good Manufacturing Practice for Medicated Feeds Facility inspections Recall authority Reportable Food Registry GRAS notification

Consulting Bodies Aafco – association of American feed control officials Organized in 1909 Standard feed laws and regulations Feed definitions Feed labeling requirements Members: State Regulators and FDA and CVM representatives No enforcement power itself – Most states adopt

Feed Regulations Feed Tags and Placards Feed labels are legal documents Incorrect feed labels with a load are considered misbranding and can result in a fine Information on the feed labels is dictated by the state and AAFCO South Dakota requires sulfur to be listed on the feed tag High Aflatoxin must be declared on the label

Feed Safety Why is feed safety important Animal welfare and health Safety of the food produced by an animal (eggs, milk, meat, fish, poultry) Safety of the people handling the feed

Feed Safety What is feed safety Food/Feed safety is the process of anticipating and controlling hazards in the products we manufacture Our Feed Safety program is made up of two parts: Pre-requisite Programs (PRPs) + HACCP Principles (Hazard Analysis Critical Control Points) Our programs have no CCPs for Feed PRPs have replaced GHPs and GMPs

Feed Safety What is feed safety Feed hazards can be grouped into the following categories; Chemical: pesticides, lubricants, mycotoxins (Aflatoxin) Biological: BSE (mad cow disease), pathogens Physical: glass, wood, metal, plastic Radiological: radiation, uranium, nuclear waste

Feed Safety Chemical hazards Aflatoxin One of our biggest Feed and Food safety hazards Exposure to Aflatoxin can be either acute or chronic Acute – High levels can cause liver failure or Hepatotoxicity Chronic – Carcinogenic Can be expressed in cow milk as M1 toxin, potential impact to humans FDA Regulated Limits <20 ppb: Unknown animal, humans, immature animals <100 ppb: Adult poultry, breeding swine, breeding beef cattle <200 ppb: Swine over 100 lbs <300 ppb: Finishing beef cattle Cargill manages Aflatoxin through a rigorous testing program including testing of raw materials, in-process and final product

Feed Safety Chemical hazards Mycotoxins – 1000s of additional toxins, but we monitor the following 6 in our programs Aflatoxin (B1, B2, G1, G2) Deoxynivalenol Fumonisin (B1, B2, B3) T-2 Toxin Zearalenone Ochratoxin Zearalenone FDA Guidance <1000 ppb Fumonisin FDA Guidance Swine and Catfish: <20 ppm* Breeding ruminants, breeding poultry and breeding mink: <30 ppm* Ruminants ≥ 3 months old for slaughter: <60 ppm* Poultry for slaughter: <100 ppm* All other species or classes of livestock: <10 ppm* Deoxynivalenol (DON) FDA Guidance Ruminating beef and feedlot cattle older than 4 months: <10 ppm* / 5 ppm finished feed Chickens: Grain and grain by-products <10 ppm / 5 ppm finished feed Swine: Not to exceed 20% of diet <5 ppm / 1 ppm finished feed All other animals not to exceed 40% of the diet <5 ppm *No more than 50% of the diet

Feed Safety Biological Hazards Bovine Spongiform Encephalitis (BSE): Mad Cow Disease Title 21 Part 589 CFR Prohibits most types mammalian protein in food for ruminants - BSE High risk Meat meal, bone meal or products that contain meat meal (dog food) are not allowed Fish and poultry meal are ok because they are not mammals Focus on Prevention Our plants are mammalian protein free Prohibited back haul list

Feed Safety Biological hazards Pathogens or Mold Water Activity - Measurement of water “freedom” in a food/feed product Equal to the relative humidity in the air surrounding the feed divided by 100 If relative humidity equals 65%, aW equals 0.65 Product controls Knowing the characteristics of our products and their aW helps us determine safe storage conditions for the products Salmonella is unlikely to grow at an aW less than 0.9

Feed Safety Physical hazards Metal, glass, wood, plastic, gasket material, tools ¼ inch to 2 inches long and less than 1 inch wide and sharp for cattle 7 mm to 25 mm all other animals (US FM Spec) Items recognizable shape (tools, nuts, bolts) System Controls Magnets Pre / Post load inspections Prohibited back hauls