Iowa Cattle Industry ConventionDecember 9, 2014

“SUSTAINABILITY”

T h e C o n s u m e r ’ s V i e w

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IF We Don’t Define It…

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“GOOD FOOD” Vs.

What Exactly?

A Poor Place From Which To

Begin A Conversation

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Consumer Confusion

I want local and natural because it’s better for the environment and

my health

(but there is no health benefit difference and it cannot be scaled to

meet the challenges of future generations)

I don’t want food from conventional, BIG AG because it’s bad for the

environment and my health

(but modern ag is the most efficient, safest, affordable supply in the

history of mankind)

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“Sustainable” Dietary Guidelines

Production intensity and emission intensity are inversely related

though some promote less intense systems as more “sustainable.”

There is no current internationally agreed methodology to

measure the environmental or social performance of livestock

supply chains. Economic viability is an even less robust field.

Q2 13 natural/organic = 6.6% of

beef sales (by value)

2050 GLOBAL TRENDS

• Global Income

• Global Population

• Global Consumption

3 Billion in Middle Class Growth

• Currently consume 1.5x Planet’s Available Resources

• By 2050, Will Need 70% More Food

• Consuming 3x the Planet’s Available Resources

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HOW DO WE MEET THE CHALLENGE?

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Sustainability is all about the

Environment, Right?

Many people assume that

the term sustainability only

relates to “preserving the

environment.”

This is not true.

Sustainability is a much

broader discipline that

involves improving short-

and long-term profitability

by managing economic,

societal, and environmental

factors to meet the

challenges of tomorrow.

Sustainability is “the capacity to endure.” In

two words – it’s “continuous improvement.”

Sustainability

Simply Defined

Meeting the needs of the present while

improving the ability of future generations to

meet their own needs…

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Limit The Scope; Limit Opportunity

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SOCIAL PILLAR:

Addressing animal welfare,

worker safety, human rights,

community involvement,

property rights, beef safety,

beef quality, consumer trust

and food waste.

ECONOMIC PILLAR:

Addressing profitability,

shareholder return, capital

investment, food

affordability, license to

operate, efficiency and

innovation.

ENVIRONMENTAL PILLAR:

Addressing water, air

quality, deforestation,

conservation, land

management, waste,

energy, greenhouse gas

emissions and biodiversity.

Limited Focus

If your sole focus is on one pillar

or only on environmental metrics

on the farm, you negate the

shared responsibility of and the

shared opportunities for the

entire global beef value chain.

This holistic approach to sustainability forces stakeholders to

view the beef value chain comprehensively rather than

focusing on their “issue du jour.”

Global Reporting Initiative (GRI)

Categories

These are the traditional

categories most people

associate with sustainability

Global Reporting Initiative (GRI)

Categories

The social pillar is

critically important.

Within this pillar

arguably lies the

greatest opportunity to

demonstrate and align

our values with those

of the consumer.

• All systems can

be sustainable

• Continuous Improvement

• Consumer choice

• Convey sustainable

message to consumer

• Consumer wants license to feel

good about products they

consume

The Current Playing Field – Risk or Opportunity?

• Successfully intensified production

over time BUT

• Aging producer base

• Supply constraints

• Producing out-of-spec

• Regulatory pressure

• $$ barriers to entry

• Technology an option?

Sustainable Challenge –More with Less?

Sustainable Protein?• 7.2B Global Consumers. 9B+ by 2050;

• 2B in the middle class; 4.9B by 2030;

• Consumption of animal protein to

increase;

• In U.S. 44% are Food Involved

• 22% are Food Evangelists;

• Vocal radical –reduce choice.

• Want to make supply chain claims;

• Make sustainable supply chain

demands on immediate supplier;

• React to 1% pressure.

• Packer/Integrator sits between

retailer & producer;

• Animal Welfare responsibility;

• Food safety responsibility;

• Labor, Worker Safety responsibility;

• Technology user;

• Low margin operator.

• Make demands on retailers and

farm operations – land

management

• Cannot influence 7.18 B

consumers but influence more

than 1%

• Cannot influence the millions of

producers, growers and ranchers;

• Can leverage vulnerabilities of

large entities in middle;

• Make unrealistic demands that

prevent us from meeting the

global challenge

Global Consumers

Retailers

Packers/Processors/Integrators

NGOs/Activists

Producers/Growers/Feeders• Focus of many supply chain

demands;

• Environmental responsibility;

• Technology user;

• Used by corporations as best

message vehicle for consumers.

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GRSB Has Chosen A Different

Approach

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The Global Roundtable for Sustainable Beef

(GRSB) is a global, multi-stakeholder initiative

with a mission to advance

continuous improvement in

the sustainability of the

global beef value chain

through leadership, science and

multi-stakeholder engagement

and collaboration.

Who We Are

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“A top-down, corporate fascist regime

controlling every entity in the beef supply

chain, including and specifically targeting

cow-calf

producers….”

Who We Are NOT

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VISION

We envision a world in which all aspects of

the beef value chain are environmentally

sound, socially responsible and economically

viable.

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Constituency Groups

• Producer & Producer Associations

• Commerce & Processing

• Retail

• Civil Society

• National & Regional Roundtables

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Robust Membership (78)

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Global Roundtable for

Sustainable Beef

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Global Definition in Summary

We define sustainable beef as a socially responsible,

environmentally sound and economically viable product that

prioritizes Planet, People, Animals and Progress.

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Five Principles for

Sustainable Beef

On Monday, March 17, 2014, GRSB released a set of

draft principles and criteria for global sustainable beef

for review and comment by the global public.

GRSB has worked hard to combat the notion that technology

CANNOT be a part of the solution to the sustainability

challenge.

Why Only Principles?

Given the diversity of ecosystems in

which beef production occurs; a

universal standard for “sustainable

beef” is not feasible or practical.

2014 Global Conference on

Sustainable Beef

Held November 2-5, 2014 in

São Paulo, Brazil.

Nearly 300 participants from

21 different countries.

96%+ Approval Rate amongst membership

for global definition of sustainable beef.

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Local Solutions;

Global Impact

U.S.A.Europe

Australia

IndonesiaBrazil

Paraguay

UruguayArgentina

Namibia

Support local, national and regional sustainability initiatives and roundtables that will develop and deliver science-based continuous improvements that address their key issues.

Canada

Mexico

Columbia

Empower each beef production region

with the flexibility to identify sustainable

solutions that address the unique

challenges they face.

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www.grsbeef.org