Dan Peed, Tyson Foods, Pork Management Conference, June 14-17, in Clearwater, Florida.

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

2. General Meat Industry
Statistics

3. 3

4. 4

5. 5

6. 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% margin1
Online grocery sales have increased 14% over the last
five years, with an expected increase through 20182
6
1. FMI, 2015
2. IBIS World, 2014

7. 7

8. Locally Sourced Everything
2/3 of American consumers check
to see if their food is locally
produced1
38% of consumer define “local” pork
or beef as being in their
state/surrounding states2
8
What does the word “local” mean to you?
My state/surrounding states 38%
My area 23%
In the US 8%
51-100 miles 8%
<50 miles 6%
Region 5%
My city/town 4%
>100 miles 4%
Community/Vicinity 2%
County 2%
1. Consumer Reports National Research Center, Food Labels Survey 2014
2. TFM Consumer Monitor Survey, 2016. n=1,000

9. Natural/Organic Meat
and Poultry Demand

10. 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 labels1
60% of people believe a natural label
means packaged and processed foods
have no GMOs, no artificial ingredients or
colors, no chemicals and no pesticides2
45% think that natural is a verified claim
USDA definition for ‘natural’ = minimally
processed, no artificial ingredients3
10
1. Natural Marketing Institute, 2015. n=1,005
2. Consumer Reports, 2016
3. USDA, Meat and Poultry Labeling Terms

11. 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. 1st
, 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 period1
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
*Availability2
is Increasing
***Narrowing Spread for natural/organic meat & poultry2

12. Fresh Pork Demand

13. 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 2015.
Nielson, 2015 & 2016

14. Natural Fresh Pork
Demand

15. 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

16. 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

17. 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% 23% 32%
Antibiotic-free Pork 20% 22% 30%
Prime NA NA 29%
Fed No GMOs 19% 16% 21%
Free Range Pork 17% 15% 20%
Pasture raised Pork 16% 15% 20%
Fed a Vegetarian Diet 13% 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

18. General Pork
Production

19. 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

20. 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-being1
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 pens1
60+ 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, 2013
2. cratefreefuture.com, 2016

21. 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 2014.
• 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.

22. Thank You
Any Questions?
Dan Peed
Director Natural Pork Programs
Dan.Peed@tyson.com