At Smithfield Foods, our own best practices typically outpace what the law requires. No matter where we operate in the world, it is common for the standards we have set for ourselves to move us beyond compliance and exceed those required by applicable governing authorities.

GRANJAS CARROLL DE MÉXICO (GCM) AND THE ENVIRONMENT

• GCM has applied for Clean Industry Certification from the Mexican Environmental Authority. Clean Industry Certification is the Mexican equivalent of ISO 14001. To earn the certificate, GCM's operations must undergo rigorous, wall-to-wall audits by a third-party consultant approved by PROFEPA (Procuradoria Federal Proteccion al Ambiente).
• GCM has continually upgraded our operations with the environment in mind. GCM’s farms in Mexico have mirrored many of the best practices first implemented on our U.S. farms. Since the construction of GCM’s first Mexican farms in 1993, GCM has continually built new facilities following the most technologically advanced design criteria. As part of GCM’s commitment to continuous improvement, GCM is also testing composting at some of its farms.
• GCM has carefully adhered to all applicable regulations in constructing its farms. These include land use approvals at both the local and federal level, as well as all necessary research, such as environmental impact studies.
• GCM has voluntarily introduced biogas digesters to reduce emissions of greenhouse gases. After bringing in experts from around the world, GCM built 11 biogas digesters to capture methane gas at its operations. Because the digesters reduce emissions of methane, a powerful greenhouse gas, the 11 existing and 17 planned projects have been registered for Clean Development Mechanism credits under the Kyoto Protocol. The first digester was a direct response to feedback from the local community.
• GCM’s windmill generators evidence a commitment to renewable energy. In 2006, GCM began construction of two windmill generators to produce electricity at one of our pig nurseries. This year, we’re applying for government grant money to improve the windmill technology to hopefully generate enough electricity to power the pig nursery.
• GCM is working with the local university to protect indigenous species. GCM is working with a team of biologists from the University of Veracruz to provide nesting areas for migratory birds that seek shelter in and around company lagoons. The company also has been involved in programs that support two species, a small squirrel and a small owl.
• GCM is also working with the local community to protect forests. GCM participates in reforestation programs and plans to plant 200 hectares of trees this year in nearby mountains where residents have cut down trees and allowed goats to graze, threatening the local water supply. Through the program, the local residents elect people to protect the forest. These forest guards receive pigs and a small salary as compensation. The program has reversed the loss of forest—more trees have been planted than are lost.

GRANJAS CARROLL DE MÉXICO AND CORPORATE SOCIAL RESPONSIBILITY

• GCM has received significant recognition for our CSR efforts over the years. GCM has a strong history of corporate social responsibility, earning the Mexican Center for Philanthropy’s prestigious social responsibility award, or Empresa Socialmente Responsible (ESR), for three consecutive years. In fact, GCM was the first animal production company in Mexico to receive the ESR certificate.
• GCM’s Animal Welfare Management System in Mexico is identical to the United States. Smithfield Foods was the first pork producer to develop and implement a comprehensive animal welfare management program to monitor and measure animal well-being. Smithfield is recognized by the world’s foremost experts in animal well-being as setting the standard for America’s pork industry—and we’re applying those same best practices at our Mexican operations.
• GCM has voluntarily moved toward open pen gestation for pregnant sows. In 2007, Smithfield Foods announced a landmark gestation stall policy at our U.S. hog production subsidiary Murphy-Brown. A similar move to open pens is occurring at GCM’s farms. As of spring 2009, approximately 17 percent of GCM’s farms used open pens, rather than individual stalls. The longer term plan is to convert existing facilities to open stalls.
• GCM is committed to the health of individuals and the nearby community. GCM has two full-time staff physicians who work within the communities, providing weekly medical visits for those who might not otherwise have access to care. We’re also working with two leading pharmaceutical firms, Pfizer and Boehringer Ingelheim, on early cancer detection programs.