IN PURSUIT OF A USTAINABLE FOOD CHAIN · say they look at labels or EPTION food claims ITY Sales...

1© 2017 Pilgrim’s

Presented by

IN PURSUIT OF ASUSTAINABLE FOOD CHAIN

While Closing the Consumer Perception-Reality GAP

Bill Lovette, President & CEO, Pilgrim’s


A Little About Me…


A Little About Pilgrim’s

1 OUT OF EVERY 5CHICKENS IN THE U.S. COMES FROM


Our Brands & Portfolio*

*YE2016


What I’m Here to Talk About TODAY


Some of our Industry’s BIG Issues & Opportunities


BIG Ag & Food Attitudes

Believe U.S. Farms

are run/owned by

large corporations.

PER

CEP

TION R

EALITY

90% family owned

SOURCES:

FAO’s State of Food and Agriculture 2014: Innovation in Family Farming. 2017 Truth About Food Report, www.cgap.org; USDA

YET…mid- to large-scale farmers:• 9% of all farms• manage 46% of the land• responsible for 66% of

production

97% family owned

88% small family farms

farms worldwide < 1 city block


BIG Ag & Food Attitudes

Conventional

agriculture is destroying the planet.

PER

CEP

TION R

EALITY

Since 1960…

Reduction in Pesticide Use

One Farmer Now Able to Feed

VS

SOURCES:

www.geneticliteracyproject.org, www.foodinsights.org, www.ers.usda.gov, www.nature.com

76.3% of funding coming from

private businesses, foundations &

farmer organizations

Ag

R&D


Animal Care & Welfare

Many U.S. consumers believe

large-scale animal agriculture

(factory farming) is inhumane.

PER

CEP

TION R

EALITY

Unable to cite a source for animal welfare information…and those who could cited animal activist/protection organizations.

Animal welfare guidelines have been widely adopted by farmers.

NO

Cages

SOURCES: www.animalalliance.org


Animal Care & Welfare

PER

CEP

TION R

EALITY

Slower-growing

breeds are

healthier than

faster-growing

birds.

4-6 lbs

35% LESS Birds

34% MORE Feed (lb/lb)

40% MORE Water (gal/bird)

53% MORE Manure (lb/bird)

49% MORE Cost ($/bird)

SOURCES:

2016 Elanco Report: The Sustainability Impacts of Slow-Growing Broiler Production in the US,, Animal Ag Alliance

Chickens are hand-selected to grow faster, stronger and healthier than ever before, while requiring fewer natural resources.


Food Labeling Confusion

say they look

at labels or

food claims

PER

CEP

TION R

EALITY

Sales Growth for Claims from 2011 to 2015

80%

In U.S. have some

sort of clean label claim

or 1 out of 3 consumers say

they’re well-informed about

claims such as hormone-,

steroid- and antibiotic-free, etc.

SOURCES: www.packagingstrategies.com, Power of Meat 2016 & 2017

NEW Food Products


Organic Label Misconceptions

PER

CEP

TION R

EALITY

of organic purchasers

confident in their understanding of the organic label

buy because believe organic means no pesticides used

believe are more nutritious

SOURCE: 2017 Truth About Food, Landmark meta-analysis from Stanford University


Organic Label Misconceptions

…and that

they’re safer.

PER

CEP

TION

Believe organic

foods are better

for the planet… REA

LITY

If ALL U.S. crops in 2014 raised organic, would take

+109 MM ACRES of more land equal to

Less

ON AVERAGE

organically produced food products are no safer

SOURCES: 2017 Truth About Food Report, U.S. FDA, FAO

Must balance meeting growing Organic Demand

with preserving Organic Integrity.


Natural Label Misconceptions

PER

CEP

TION R

EALITY

think “all natural” means food is

healthier

39%

believe label ensures product has no artificial

ingredients, GMOs, pesticides or

hormones

66% NATURAL =A product containing no

artificial ingredient or added

color and is only minimally

processed.

SOURCES: www.consumerreports.org, USDA-FSIS


Antibiotics Label Misconceptions

PER

CEP

TION R

EALITY

No Critically Important Antibiotics

No Growth-Promoting Antibiotics

No Medically Important Antibiotics OR No Human Antibiotics

Antibiotic-Free

No Human Antibiotics

of consumers

believe antibiotics are present in most chicken meat

73% Regardless of whether an animal was given antibiotics or raised entirely without antibiotics, ALL MEAT you buy is free from any harmful antibiotic residue.

Meat and milk are tested to ensure it.

SOURCES: www.chickencheck.in


Non-GMO/GMO-Free Label Misconceptions

PER

CEP

TION R

EALITY

decades meals consumed

health issue resulting from consumption

1 TRILLION+ 2+

NOT 1 NO

DIFFERENCE

in meat from animals fed GMO feed and those not

BY 2050

will need…

SOURCES: www.chickencheck.in, ENOUGH Food Security Report, FAO


Our Industry Imperative…


What is PILGRIM’S Imperative?

Connecting

PEOPLE to a

PURPOSE

& their

PASSIONS

Creating a

MORE

SUSTAINABLE food system

and better

future for

more.


Sustainability is about MORE THAN Environment

SOCIAL

PRODUCTRESPONSIBILITY

ENVIRONMENTAL

ECONOMIC


Our Priority Issues

See our 2016 Sustainability Report >

Our holistic approach to sustainability addresses

improvements in social, environmental and economic issues.

ANIMAL WELFARE

TEAM MEMBER HEALTH

& SAFETY

WATERENERGY & CLIMATE CHANGE

PRODUCT INTEGRITY

http://pilgrims.com/media/50657/Pilgrims-Sustainability-Report_Condensed_WEBv4.pdf


Sustainability is KEY to ALL Production Systems

Biosecurity: Organic management can result in

increased exposure to predators and

diseases like avian influenza.

Cost and Scale: Organic ag can be more profitable than

conventional ag, but high labor & input

costs can offset gains.

Productivity: Significant yield gap between organic

and conventional ag. Lack of feed

availability a challenge.

Climate Change:Lower yields in organic mean more land, natural

resources and birds are required. Result is higher

GHG emissions and larger carbon footprint.

All poultry production systems must

become more efficient and more

productive if we are going to meet

the challenge of feeding the world.

Organic is not our only

sustainable option.


This Challenge SHOULD Scare Us

SOURCE: How to Feed the World in 2050/FAO


Chicken is Poised to Win!

-

10

20

30

40

50

60

70

80

90

100

1960 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014

91.6

51.7

17.0

15.5

50.8

SOURCES: USDA Last updated April 14, 2017; NPD A Generational Study: The Evolution of Eating;

www.hangar-12.com/blog/consumer-marketing-trends-the-rise-of-the-flexitarian

Nearly 40%of U.S. consumers have meatless meals once a

week or more, or 120 million people, YET…

Millennials & Gen Zare eating more chicken than consumers of same age range 30 years ago.

Chicken is preferred for health and sustainable

attributes…

Annual Pounds-Per-Person Chicken Consumption: 1960 to 2017 Projected


Chicken’s Productivity Advantage

1,799 576 468GALLONS OF

WATER

POUNDS OF

GRAIN

POUNDS OF

CO2

6.6 4.2 4.2

15 6.75 3.37

BEEF PORK CHICKEN

SOURCES: GAA-Food-Supply-Infographic-Feed-Conversion-Ratio, www.greatecology.com


Leverage GOOD Online Content


Be Ready for Gen Z! a.k.a.

SOURCES: www.mediakix.com, www.visioncirtical.com

1996-2010 & just entering workforce

of ALL consumers2.6B/40%

>50% part of minority/ethnic group

<8 SEC attention span

96%

85%

own SmartPhone use Social Media to find

New Products10+ HRS online/day

SHOPPING

$44B & growing nature2ND


We Must RAISE the Bar…to BREAKTHROUGH

500 HOURS

66K PHOTOS

150KEMAILS

3.3MPOSTS

3.8MSEARCHES

449KTWEETS

1.4KPOSTS

2.9MMESSAGES

SOURCE: www.smartinsights.com

BECAUSE every minute of every day…


Don’t sell your story, tell it

with transparency and heart.1

Fearlessly take on the issue, but let

values lead the conversation.

See it through their eyes.

It’s not about being right, it’s about

respect of choice.

Respond with speed and balance.

2

5

4

3

Empower people to advocate and innovate.6


We MUST Accelerate Innovation Exponentially

SOURCES: www.intel.com, www.econonmist.com


So let’s get started TODAY…


Bill LovettePRESIDENT & CEO

E: [email protected]

www.Pilgrims.com

mailto:[email protected]

http://www.pilgrims.com/

IN PURSUIT OF A USTAINABLE FOOD CHAIN · say they look at labels or EPTION food claims ITY Sales...

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Transcript of IN PURSUIT OF A USTAINABLE FOOD CHAIN · say they look at labels or EPTION food claims ITY Sales...