2011 farm to fork report

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.

People Poultry

Planet

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CEO Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Mission and More . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Featured Family Farm Partner . . . . . . . . . . . . . . . 4

About Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

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

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

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

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

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

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

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

Customer Advocacy . . . . . . . . . . . . . . . . . . . . . . . . 10

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

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


ProgressCorporate Giving . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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

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

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

Historical Sales Growth and Distribution Area . . .26

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

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

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

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

• 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

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!

TABLE OF CONTENTS

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Healthy FOOD, FAMILIES & FARMS

Our MISSION Possible

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 Year In Review

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 con-sumers. Unfortunately, several in our industry didn’t survive.

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 cul-minated 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.

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.

The year’s key successes:

• Completing a multi-year expansion of our Cold Spring Wastewater Treatment Plant, giving us state-of-the-art water reclamation and treatment capabilities;

• 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.

The year’s significant insights:

• 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.

Moving Forward

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.

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.

Sincerely,

Michael Helgeson CEO / 3rd Generation Leader

Avid Water Skier


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MISSION

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.


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food,families & farms

~ dedicated to ~


~ dedicated to ~


~ dedicated to ~

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 nega-

tivity 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.”

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.

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

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.”

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 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.

Meet the Bragger FamilyPart of our flock since 1996


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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.

COMPANY FACTS

OUR PEOPLE

• 1,600 team members

• 350 independent family farm partners

(who raise our chickens)

OUR OPERATIONS

• Fully integrated operations in St. Cloud, MN and

Arcadia, WI (farmer-owned broiler and breeder

barns, hatcheries, feed mills, processing plants

and distribution systems)

• Value-added processing facility in Luverne, MN

OUR SALES & DISTRIBUTION

• $338 million in annual sales

• Offer branded and non-branded retail, deli,

foodservice, industrial and export products

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

and Sunny Roost®

• Distribution area

- nearly all 50 states

- limited international export


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1 2 3

4 5 6

7 8

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.

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

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

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

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.

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.

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

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 experi-

ences which we can draw upon to create innovative,

insightful solutions.

The key is to create a workplace of mutual respect

that encourages team members to find value in

others’ 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.

TEAM MEMBER ENGAGEMENT

2011 Team Member Engagement Survey

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

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.

Employee Suggestion Program

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.

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

NUMBER OF SUGGESTIONS

RECEIVED

NUMBER OF SUGGESTIONS

ADOPTED

COMPANYSAVINGS FROMSUGGESTIONS

TOTAL REWARDSPAID FOR

PARTICIPATION

ESP: EMPLOYEE SUGGESTION PROGRAM


6

TRAINING

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:

• People safety

• Food safety

• Supervisory effectiveness

• Six Sigma and Lean continuous

improvement tools

• Animal welfare

• Maintenance training and certification

• Other courses designed to enhance business

understanding

2011 Training Survey Results

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:

• 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 under-

standing of the training topic”

Read Training Manager Nancy Myers’ insight about

GNP Company’s training program on page 11.

TEAM MEMBER SAFETY

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.

Our key safety focus areas include:

• Team member engagement

• Leadership accountability

• Behavior-based safety

• Ergonomics

• Targeting high-risk areas

• Fleet safety

• Regulatory compliance

Safety Results and Recognition

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

at right shows

results for

all facilities.

Kari Waters Corporate Health and Safety Manager

Basketball Mom

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.

*SOURCE: Bureau of Labor Statistics

3THE COMPONENTS OF BEHAVIOR-BASED SAFETY

ENVIRONMENT

PEOPLE

BEHAVIOR

01.5 5.29

FATALITIESLOST TIMEINJURY RATE

TOTAL INJURY / ILLNESS

RATE

SAFETY: RESULTS


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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.

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.

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.

271 164 115 237NUMBER OF TEAM MEMBERS

NUMBER OF YEARS

5 - 10 11 - 15 16 - 20 > 20

49 27 81 42 9101NUMBER OF FARM PARTNERS

< 5 6 - 10 11 - 19 20 - 29 30 - 39 40+NUMBER OF YEARS


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PRODUCT HEALTH BENEFITS: DIRECT & INDIRECT

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.

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.

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.

Many value-added chicken products contain solutions

of salt, water, phosphates, preservatives and other

things consumers don’t want.

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).

Healthy Recipes

Chicken is a healthy source of lean protein. It’s impor-

tant 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 health-

focused 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.

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

Roasted Rosemary Chicken & Root Vegetables

NUTRITIONAL VALUES FOR BONELESS SKINLESS BREAST*

(SERVING SIZE OF 100 GRAMS/3 TO 3-1/2 OUNCES)


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LOW SODIUM 74MILLIGRAMS*

LOW FAT SATURATED FAT

1GRAM*

LOW CALORIE APPROX .140*

B VITAMINS B3 B6 B9 B12

PROTEIN 27GRAMS*

NATURALLY

GLUTEN-FREE

SELENIUM

IRON

ZINC

CUSTOMER 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.

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:

• Order accuracy (the right product)

• Order fill/case fill (in the right quantity)

• On-time delivery (at the right time)

CONSUMER ENGAGEMENT & ADVOCACY

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.

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. ACTUAL GOAL

ORDER ACCURACY

ORDER FILL

CASE FILL

ON-TIME DELIVERY

92.0% 90.0%99.4% 99.0%

99.5%99.8%

99.5%99.7%

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.

METRIC DEFINITION OF METRIC JUST BARE GOLD’N PLUMP (VS Previous year)

Brand Preference Purchase the brand most often 17% 64% Brand Advocacy Said they have actually recommended the brand 33% 39% Brand Loyalty Said brand is “first and only” they’ll buy OR 67% 83% the “first one they’ll check out”

Social Interaction Consumer participation in our various social and All measures meeting or exceeding

online channels including: Facebook®, Twitter®, industry rates, showing growth eClubs & Dish on Chicken Consumer Panel vs. previous year

KEY CONSUMER ENGAGEMENT & ADVOCACY MEASURES

( )( )( )


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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.

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.

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

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

INITIAL AUDIT

Interviewed and and conducted group discussions with team members.

FACILITY TOURS/VISIT

Talked informally with team members during tours/visits.

DEEPER DISCOVERY

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

that there was lots of energy around four topics:

FAMILY, QUALITY, INTEGRITY and FOOD.

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.

• 62% of team members rated the statement as

“very to extremely relevant” to their jobs

• 65% agreed/strongly agreed that it “fits well

with our company and culture”

UP NEXT: THE MOVEMENTWith 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.

“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 .”

Julie BerlingBrand Advocacy & Marketing Director

Kettle Bell & Kickboxing Fan

THE STORY BEHIND OUR NEW MISSION STATEMENT:Dedicated to healthy food, families & farms .

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!

Nancy Myers Training Manager / Desert Golfer

2012 FOCUSFORWARD

• Consumer advocacy starts with a personal touch

• Creating a movement from the inside out

• Heightening safety engagement


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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.

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.

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.

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,

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.

We are also working diligently to reduce environ-

mental 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:

• Energy and Emissions

• Water

• Waste

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.


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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:

• We purchase renewable energy certificates for

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

Minneapolis which provides convenient bike rental

stations throughout the city.

Paul Helgeson 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.

GNPCompany’sB’EARTHDAYCelebration

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 .

LIFE CYCLE ASSESSMENT

THE LIFE CYCLE OF OUR PRODUCTS

PROCESSING

RAW MATERIALS

PACKAGING

DISTRIBUTION& RETAIL

POULTRYGROWOUT

MATERIALPROCESSING

NATURALENVIRONMENT

DISPOSAL

LANDFILL

INCINERATION

CHICKENLITTER

USER

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.

• 35% of our greenhouse gas emissions occur

“upstream” and are related to growing corn and

other feed ingredients.

• 37% come from our own operations, including

the energy used in our facilities and materials in

our packaging.

• 28% occur “downstream” and result from activities

like distribution, retail, cooking and disposal.

While our initial focus has been on reducing environ-

mental 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.


13

CARBON TRUST CERTIFICATION

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 commit-

ment 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.

Following are the carbon footprints of our prepack-

aged retail products for Just BARE—reported as

carbon dioxide equivalent (gCO2e) per functional

unit (equal to a 4-ounce serving):

Boneless Skinless Breast Fillets – 900g

Breast Tenders – 900g

Boneless Skinless Thighs – 650g

Drumsticks – 500g

Whole Chicken – 380g

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 .

COMPANY-WIDE CARBON EMISSIONS

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 2010 2009

SCOPE 1 (kg of CO2e)

SCOPE 2 (kg of CO2e)

TOTAL (kg of CO2e)

INTENSITY (kg CO2e/lb)

INTENSITY CHANGE YOY (Year-Over-Year)

37,260,000 35,907,000 38,035,00055,675,000 58,543,000 56,892,00092,935,000 94,450,000 94,927,000

0.2370 0.2633 0.2732-9.97% -3.63% – – – –

CARBON EMISSIONS AND INTENSITY*

LP GAS

16%

DIESEL

6%

NATURAL GAS

18%

ELECTRIC

60%

2011 COMPANY-WIDE CO2e BY ENERGY TYPE


14

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, 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.

2011 2010 2009

TOTAL (kWh) 71,035,000 70,392,000 68,407,000ELECTRIC INTENSITY (kWh/lb) 0.1821 0.1962 0.1969 INTENSITY CHANGE YOY (Year-Over-Year) -7.66% -0.34% – – – –

TOTAL (therms) 3,134,000 3,064,000 3,178,000NATURAL GAS INTENSITY (therms/lb) 0.0080 0.0085 0.0091 INTENSITY CHANGE YOY -6.39% -6.62% – – – –

TOTAL (gallons) 566,000 534,000 519,000DIESEL INTENSITY (gallons/lb) 0.0014 0.0015 0.0015 INTENSITY CHANGE YOY -3.05% -0.34% – – – –

TOTAL (gallons) 2,525,000 2,414,000 2,699,000LP GAS INTENSITY (gallons/lb) 0.0064 0.0067 0.0078 INTENSITY CHANGE YOY -4.29% -13.40% – – – –

ENERGY USE AND INTENSITY*


15

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 oppor-

tunities 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.

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 peel-

away. Our efforts were recognized by

packagePRINTING’s Excellence Awards,

where we took first place in the

Sustainability category.

2011 2010 2009

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

WATER USE AND INTENSITY

JustBARE’slinerlesslabelsaved20,000lbs.inpackagingwastein2011

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 .


16

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).

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 nitrogen re-moval, we have been able to meet EPA and MPCA limits; re-use the effluent

(discharged) wastewater in our processing plant; and measurably improve energy efficiency.

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.

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.

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.

COLD SPRING WASTEWATER TREATMENT PLANT

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!

Clay WatsonEnvironmental Manager

Classic Car Enthusiast

2012 FOCUSFORWARD

• Energy and water efficiency improvements

• Solar energy projects

• The quest for more sustainable packaging

• Reusable pallets

Pictured here is wastewater from our processing plant “before” (left) and “after” (right) treatment . The treated wastewater has a turbidity of “cloudiness” rating of 0 .1 - 0 .3 versus 8 - 12 of a typical treatment system . POTABLE WATER EFFLUENT WATER

TO PLANT TO RIVER

2010 312,661,000 GALLONS 318,661,000 GALLONS

2011 302,839,000 GALLONS 291,517,000 GALLONS

REDUCTION 9,822,000 GALLONS 27,144,000 GALLONS


17

PoultryANIMAL WELFARE COMMITMENT

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:

• Annual animal welfare training

• Routine evaluations of our performance against

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

ACTIVE GROWER MANAGEMENT PROGRAM

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.

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.

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 Live Production Manager

Downhill Daredevil

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 .


18

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.”

In a research study conducted with the company’s

consumer panel, 91% of the brand’s target consum-

ers 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.

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;

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 science-

based standards and sound research, which are

reviewed regularly by a Scientific Advisory

Committee of respected animal welfare experts.

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.

“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.”

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.

SOURCE: 2010 Dish on Chicken Panel Study

AREAS OF HIGH INTEREST ALL JUST BAREREGARDING ANIMAL WELFARE CONSUMERS CONSUMERS

Processing practices 73% 79%Chicken feed ingredients 69% 74%Care/handling at the farm 56% 62%Conditions in which chickens were raised (e.g. space to roam) 55% 67%

91% OF JUST BARE’S TARGET CONSUMERS RATED THE VERIFICATION OF ANIMAL WELFARE AS VERY OR EXTREMELY IMPORTANT.


19

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.


20

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 solution-

pumped 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.

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.

SOURCE: Truthful Labeling Coalition (TLC)

THE USDA RECEIVED 37,000 PUBLIC COMMENTS SUPPORTING

THE CLEAR LABELING OF FRESH AND FROZEN CHICKEN PRODUCTS.

91% OF CONSUMERS BELIEVE THAT NATURAL CHICKEN SHOULD NOT CONTAIN ANY ADDED INGREDIENTS.

MORE THAN 50% OF CONSUMERS DON’T EVEN KNOW THERE’S SALTWATER IN THEIR CHICKEN. BUT THEY WOULD...IF THE INGREDIENTS ON THE LABEL WERE PRINTED IN A SIZE THE AVERAGE PERSON COULD READ.

PUMPED-UP CHICKEN CAN CONTAIN AS MUCH AS 822% MORE SODIUM THAN TRULY NATURAL CHICKEN—AS MUCH SODIUM AS AN ORDER OF FRENCH FRIES AND OVER 25% OF THE RECOMMENDED DAILY ALLOWANCE FOR A HEALTHY ADULT.

SayNOto“PUMPED-UP”Chicken


21

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.

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.

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.

100% OF OUR PRODUCT IS MANUFACTURED IN FACILITIES THAT ARE SQF 2000 LEVEL 2 CERTIFIED. SQF CERTIFICATION IS RECOGNIZED BY THE GLOBAL FOOD SAFETY INITIATIVE.

Oneworld.Onestandard.

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

•It is the only certification system recognized by retailers and food-service 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 .

•Though designed as a food safety 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


22

Achieving animal welfare certification for our company’s Just BARE® brand this year was an important bench-mark 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.

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:

1) Bird’s basic functions and needs

2) Bird’s feelings

3) Natural behavior

The basic functions and needs of our birds is some-thing that our company and industry have been focused on for a long time. We monitor that our

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

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.

HAPPY, HEALTHY CHICKENS

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!

Deirdre JohnsonCompany Veterinarian

Bird Lover

2012 FOCUSFORWARD

• Continued product and packaging

evolution

• Defining the next generation of safety and quality

“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 .”

Kathi BrockSenior Director, American Humane Association™


23

Ensuring the economic vitality of our business, suppliers, partners and community.

When we succeed as a business, we are committed to sharing that pros-perity 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 .

CORPORATE GIVING

Giving back is an integral part of our culture at

GNP Company™. Our philanthropic mission is:

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

Just BARE® products

are distributed.

We believe our

greatest opportunity

to have a positive

impact comes

in the form of

providing whole-

some, nutritious

chicken products

to people in need.

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.

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.

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.

Progress

VALUE %

COMMUNITY DEVELOPMENT $ 310,966 29%EDUCATION, INDUSTRY, $ 41,352 4%FAMILIES IN CRISIS

HUNGER RELIEF $ 710,680 67%TOTAL $ 1,062,997

2011 GIVING BY SECTOR AND VALUE

FOR MORE THAN 20 YEARS GNP COMPANY HAS BEEN RECOGNIZED FOR DONATING

5% OF OUR PRE-TAX PROFITS TO CHARITABLE CAUSES.


24

SPONSORSHIP

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.

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

2011 Sponsorship Highlights

Gold’n Plump

• Gilbert Brown Foundation: Foundation providing education and activities for youth, and promoting diversity in communities throughout Wisconsin.

• WingFest 2011: Event that promotes and sup-ports one of our home communities.

• FireFest: Fundraiser supporting the Cold Spring Fire & Rescue Department Relief Association.

• Spirit 92 .9 “Gold’n Good Award”: Radio program award that recognizes individuals who are work-ing to improve the local community.

• Annual Poultry Prince & Princess Contest (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.

• Mall of America: Sponsorship of Nickelodeon Universe giving us the ability to host events at the mall, including food drives.

• Minnesota Lynx: Partnership with the Minnesota 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.

Just BARE

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

• Mahtomedi Kids Community Garden Project: Project that teaches kids about growing fresh food, cooking, and the value of community.

• ZisBoomBah: Website created to help educate

kids and parents about healthy choices.

INVESTING IN LOCAL SUPPLIERS

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.

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.

• 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


25

HISTORICAL GROWTH OF SALES AND DRESSED POUNDS

• SALES • DRESSED POUNDS

1990 1995 2000 2005 2010 2011

400

350

300

250

200

150

100

50

0 POUNDS

(IN MILLIONS)

$400

$350

$300

$250

$200

$150

$100

$50

$0(IN MILLIONS)

DISTRIBUTIONAREA• FOODSERVICE

• RETAIL & DELI

CUSTOMER GROWTH2011 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.

NET SALES NET SALES BUSINESS SEGMENT DOLLARS* POUNDS*

RETAIL 37% 17% DELI 16% 12% FOODSERVICE 21% 15% INDUSTRIAL / EXPORT 16% 22%

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

*As measured by dressed pounds

2011 SALES:$338 MILLION MILLION POUNDS

OVER THE LAST 3 YEARS WE HAVE GROWN TO OVER THE PREVIOUS 3 YEARS*

396


26

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 orga-

nization and provides advanced Green and Black

Belt certification.

2011 Team Member Certifications (company-wide)

Gold Belt Certifications Completed: = 17

Green Belt Certifications Completed: = 14

Black Belt Certifications Completed = 3

2011 Projects:

• Lean = 91

• Six Sigma =31

• Problem Solving =13

• Employee Suggestion Program = 437 employees made 1209 suggestions

• Company-Wide Savings: $4,340,547

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.Dean KirkebyContinuous Improvement Manager

Back Roads Hiker

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.

• United Way Awards: GNP Company received four

awards for its 2011 fundraising efforts.

• 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.

CONTINUOUS IMPROVEMENT

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

THE TOOLS

THE RESULTS

THE METRICS

PROBLEM-SOLVING

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

RELIABILITY, UP-TIME & SERVICE

SIX SIGMA

Reducing defects and variations for greater:

STABILITY, ACCURACY,PROCESS CONTROL& QUALITY

LEAN

Improving efficiency and cycle times for:

IMPROVED SPEED & EFFICIENCY

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


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“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 road-map with the steps to integrate continuous improve-ment and lean management across our operations.

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.

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.

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

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

THE GOLD’N PATH

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

2012 FOCUSFORWARD

• Our continuing lean journey

• The growing natural channel

UNITEDWAYAWARDS

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 demon-

strated in our fundraising events and activities .

Our four awards included:

• BestInShow – For creativity in its overall “Give

a Peep – Live United” fundraising campaign .

• BestGivingCommunities – For best performance

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 .

• BestYear-RoundPartnership – For year-round

campaigns and effort .

• BestSpecialEvent(s) – For raising awareness

for United Way through 10 special events held

throughout the year .


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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 [email protected].

P .O . Box 1106

St . Cloud MN, 56302-1106

320-251-3570

gnpcompany.com

2011 farm to fork report

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