Overview of the New Packing Plant in Coldwater - Dan Groff, Clemens Food Group, from the 2016 Power Of The Past, Force Of The Future Customer Appreciation event, August 16, 2016, hosted by Rensselaer Swine Services and Bethany Swine Health Services, Jasper Country Fairgrounds, IN, USA. More presentations at http://www.swinecast.com/2016-power-of-past-force-of-future-customer-appreciation

1. New Coldwater Packing Plant
Project Update
August 16, 2016

2. About The Clemens Food Group
• Established in 1895 by John S. Clemens
• 6th generation, family owned company
• 2,300+ dedicated team members
• Based in Hatfield, PA (30 miles NW of
Philadelphia, PA)

3. • 2 Production Facilities
– 1.2 million Sq. ft. processing (Hatfield)
– 100 k Sq. ft. further proc (Emmaus)
– 2 million lbs. of pork produced daily
• Country View Family Farms
– Live Hog Production (57,000 sows)
• PV Transport
– Live & Refrigerated Transportation
Facilities and Operations

4. Business Mix

5. Value added product sales
• Full line of value added products
– Wide breadth of line
• Bacon, Ham, Sausage, Marinated, Chops
– Broad style of products
• Fully Cooked, Raw, Smoked, IQF, Diced, Sliced
– Many product forms
• Links, patties, molded, rolls, loaves, hand and machine filled
• Value added volume and growth
– 12% YOY growth
– Ongoing capacity expansion to meet demand

6. Customers and Partners
• Deepening our existing relationships…forging the right new ones

7. Coldwater Plant

8. Coldwater Michigan
(addressing our needs for growth)
• Clemens Food Group has partnered with a group of family-owned pork
producers to build a new fresh pork processing plant in Coldwater,
Michigan
• The 640,000 square-foot facility will be capable of processing 10,000 +
hogs daily
• The plant is anticipated to open in late 2017
• Approximately 800 workers at a variety of experience levels will be
employed at the plant when it is fully operational

9. Rationale
WHY NOW:
 Research confirmed the market is strong
 Ability to be a force in global pork
market
 Opportunity for CFG to grow its pork
operations strategically/collaboratively
WHY MICHIGAN:
 Strategically located within Corn Belt;
access to hogs; proximity to partners
 MI’s commitment to livestock ag;
 Ideal location in Coldwater, MI
PRODUCERS:
 Several family-owned pork producers
 All share same values, commitment to
excellence; track record of animal care and
environmental stewardship
PUBLIC SUPPORT:
 State of Michigan / Office of the Governor
 MI Economic Development Corporation
 MI Dept. of Agriculture and Rural
Development
 City of Coldwater

10. CFG Plant
Michigan Location
CFG plant
centrally located

11. Exciting Times

12. Staffing

13. External Recruiting
• Engagement / recruitment expanded to surrounding
communities
– Meeting key influencers
• Smiley’s Tour schedule is set
• Summer / Fall fair participation, staffing plan developed

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Aug-17LifetimeMetrics
DailyMetrics
Facebook
Hilary New Users by
Location Grand Rapids
Hilary New Users by
Location Detroit
Engaged for Employment
1248
Social Media Metrics
Total Unique Website Visitors
9110

15. Internal Recruiting
163 team members
identified interest in
moving
383 team members
identified interest in
assisting with start up

16. Staffing - Up next
• Housing assessment
– Few affordable rental units available in Coldwater
• Need dependent on how many will come from outside the area
• Internal transfer
– Provide additional information
• Goal is to gain firm commitments by Fall / Winter
• Finalize plans for early hire crew
– Plan to hire 72 new team members in May 2017
• Rotating schedule - 2 weeks Hatfield, 1 week Coldwater

17. Facility and Equipment

18. Structure/Concept
2014 2015 2016 2017 2018
Equipment
Installation
begins
Milestones
Ground Breaking,
Initial Bldg
construction begins
March 2016August 2015November 2014
2nd phase Bldg
Construction
begins
First Hog
Processed
Planning Implementation Start Up
Complete CurrentComplete
Excavation,
Initial Bldg
Structure created,
project approved
January 2017 Sept 2017 Dec 2017
Normalizing
June 2018
Ramp up
complete
Normalized
operations
June 2017
Construction
Complete
Key Milestones
Planning milestone completed as scheduled
General Contractor selected
Building design
Main processing equipment decisions
Permits and approvals obtained
Site engineering complete
Phase 3
Excavation of site
Footers and construction
Secondary process systems
Facility design completed
Start Up
Phase

19. Construction Areas

20. • 4.5 miles of Water
Main
• 6 miles of Sanitary
Forced Main
• 1 Mile of Road Extension
• 1 new Electrical
Substation
• Upgrades at Wastewater
Treatment Plant
Infrastructure for facility
ON TRACK

21. Equipment
construction underway

22. Expected results
1. Highly automated, efficient processes
2. Ultimate in food safety and worker safety controls
3. Premium quality pork products produced
4. Designed to meet export market demand
5. Capacity for future growth, double shift
6. Expansion of Clemens Food Group market reach
7. Addresses companies growth requirements for decades to come !

24. As of 8/8/16