Armour Eckrich's Sustainability Goals

1. Landfill Free The Armour-Eckrich, Peru, Indiana Experience

2. • 18 Operating Facilities; • 9,800 employees • $3.7 Billion in sales per year (FY2011)

3. • Decrease waste disposal to landfill by 10% in FY2016 as compared to FY2008 on a production weighted basis; • One Zero Landfill facility per IOC by 2018.

4.  JMFG: 10% less waste to landfill in FY2011 as compared to FY2008 (production weighted);  FY2008: 39,129 tons (6.47 lbs/cwt)  FY2011: 33,700 tons (5.82 lbs/cwt)

5.  Waste Elimination/Source Reduction;  Reuse;  Recycle (including compost)  Waste to Energy;  Landfill

6.  Zero waste shipped to a landfill for a 12 month continuous period;  The percent of waste reused or recycled must be at least 50% of the total generated;  Incineration without energy recovery is limited to legally required disposal (hazardous and medical wastes);  Stabilized and landfilled hazardous waste limited to 0.1% of the total waste generated.  The total waste management cost must not exceed 5% above the baseline waste management cost.

7.  FY2008 = 999 tons/year  FY2011 = 440 tons/year  FY2012 = 252 tons/year  FY2013 = <25 tons/year (goal)  We don’t anticipate any additional loads to the landfill beyond early May 2012, so by June 2013, we should meet the Smithfield Foods definition of landfill free.

8.  Precooked Bacon Plant, so lots of grease!  White Grease: 4,134 tons/year  Brown Grease: 1,403 tons/year  Total Amount: 5,527 tons/year  Very profitable:  Revenue – White Grease: $3,854,152/year  Revenue – Brown Grease: $ 392,253/year  Revenue – Total: $4,246,405/year

9.  If it was easy, we’d all be there:  What’s in there? Plastic sleeves and liners; dirty plastics; paper towels; ear plugs; “dirty” plastics; old corrugated cardboard; wax coated cardboard; wooden pallet scraps; scrap metals; barrels; aluminum cans; paper; used oven belts; ingredient bags; fibers; food waste from employee lunch breaks, etc.  What’s acceptable for recycling?

10.  Step by Step Process: Establish BHAG; Form Cross-Functional Team; Designate Team Leader: Ed Schmaltz, Transportation Manager Top Management Support: Mike Fritz, Plant Manager Buy-in from all Facility Team Members Partner with Recycling Firm that will take almost EVERYTHING

11.  Step by Step Process: Color coded bags for improved sorting: Black bags for plastics Tan for trash Clear for paper Lock Trash Compactor! Covanta: Waste-to-Energy Facility in Indianapolis for food scraps

12.  A Place for Everything: Cardboard Baler : Boxes, Combos, Paper, Film Cores Plastic Baler : Film, Stretch Wrap, Aprons, Sleeves, Rain Suites and Coats, Banding Plastic Combo : Bottles, Buckets, Tubs, Squeegees, Helmets Paper Baler : Coated Paper, Copy Paper, Newspaper, Labels, Pallet Tickets, Paper Towels, Ingredient Bags, Glove Boxes Metals Container : Blades, Pipe, Edge Metals, Fuses with Metal Ends, Cans, Air Filters, Lids and Bands from Drums, Wiring Rubber Combo : Boots, Hoses, Transfer Wheels, Green Gloves Trash : Food Waste, Wood Scraps, Ear Plugs, Hair Nets, Misc.

13.  Educate, Reinforce New Waste Disposal Protocols, Update on Progress : Daily Plant Employee Meetings Reviewed with the EHS Committee (composed of operations, maintenance, wastewater, QA) Town Hall meeting/Cookout Review of material retrieved from trash compactor This involvement helped employees improve their habits and inspired them to take pride in their contributions.

23. Recycled/Diverted Amounts & Revenue Cardboard: 304 Tons/year $32,000/year Plastic: 384 Tons/year ---- Paper: 58.5 Tons/year ---- Metal: 25.7 Tons/year $5,275/year Rubber: 3.6 Tons/year ---- Mixed Plastic: 1.2 Tons/year ---- Aluminum: 1.0 Tons/year $1,004/year Pallets: 121.5 Tons/year $4,800/year Waste-to-Energy: 48 Tons/year TOTALS: 947.5 Tons/year $43,079

24. Net Annual Savings: Recycling Revenue $43,079/year Landfill Cost Avoidance: $31,000/year Compactor Lease Avoidance: $ 4,800/year Waste to Energy Costs: ($2,880)/year Transportation Costs: ($2,800)/year TOTAL: $73,199/year

25.  Saratoga Food Specialties:  Decreased solid waste to landfill by 43% from FY2008 to FY2011 (production weighted).  Big push recently: FY2011 Average: 16.1 tons/month CY2012 (YTD Avg): 11.4 tons/month

26.  Working with suppliers to get raw materials only in containers that can be recycled;  Labeled bins for all types of waste, right at point of use;  Top management leadership and support  Buy in from front line production managers  Four balers: cardboard; plastics; woven fiber totes; bags;  Other: wax label paper; pallet stretch wrap; paper slip sheets; pallet wrapping straps; plastic drums; office paper; aluminum cans.

27.  FY2008: 4,152 tons (11% of total 39,129 tons)  FY2011: 3,615 tons (11% of total 33,700 tons)  Cellulose Casings and Dewatered DAF sludge = 70% of total landfill material  Composting could is a viable alternative to landfill and is less expensive.

28.  FY2008: 24,542 tons (63% of total 39,129 tons)  FY2011: 21,093 tons (63% of total 33,700 tons)  Wastewater Sludges = 80% of total landfill material  Land application of Sioux Falls wastewater sludges would reduce our total JMFG landfill amounts by over 16,800 tons/year (50% decrease overall).  Environmental Land Management or Terra Renewal