Cargill Protein: Building Trusted Supply Chains - Ms. Nicole Johnson-Hoffman, Vice President and North America Managing Director, Cargill, from the 2016 Global Roundtable for Sustainable Beef (GRSB), October 5 - 6, 2016, Banff, Alberta, Canada.
More presentations at http://trufflemedia.com/agmedia/conference/2016-global-roundtable-sustainable-beef
“Trusted” because transparent, sustainable, responsible….trusted partner (GPS)
The current state – lack of consumer trust – this is our challenge as a large corporation as we strive to become the most trusted partner
After this slide, will lead into “what is our story?”
A leader in beef sustainability
With an ongoing commitment to finding ways to be more sustainable
Looking for innovative ways to collaborate and continue our efforts
Cargill Cattle Feeders partnered with Wichita-based consultancy KCoe Isom to create the verified beef supply chain sustainability assessment program for Cargill feed yards
KCoe Isom will leverage its extensive beef industry and sustainability expertise and unique ResourceMax™ assessment service developed by the company’s Vela Environmental division
Kansas State University’s Beef Cattle Institute also providing technical support to the project
This type of assessment could eventually be expanded to include cattle production in collaboration with stocker operators, ranchers, as well as with Cargill’s strategic feed yard partners
We are promoting sustainable beef production practices to help producers increase efficiencies, yields and incomes
We are promoting the social well-being of agricultural communities we serve
Transition to other proteins – not only beef. In fact, turkey is leading the way
We want to ensure the generations of farmers involved in raising turkeys for Cargill are recognized and continue to be sustainable.
Recognizing farmers: A good example would be our ‘More Beautiful Barn’ work in the videos on our 700reasons website. The one on ‘Glenn & Kathy’s Story’ touches on the generations involved in raising turkeys for Cargill and would be good to share with the Cargill family if they haven’t seen it already. There is also the element of transparency that consumers want to see and we believe they should know where their food comes from so we share the stories of our farmers and put this on our brand pages too so consumers can learn more about how and who raises the turkeys. Each of the brand pages take consumers to 700reasons if they are wanting to learn more about the farmers.
In terms of sustainability around animal welfare, we don’t use growth-promoting antibiotics in raising our turkeys (birds not being made to grow artificially bigger or faster). FWIW we also offer a product line of ‘No Antibiotics Used Ever’ within Honeysuckle White that we are getting ready to expand.
We are looking to do the same with beef as we’ve done with turkey….
Knowing better tastes better,
Attention to every detail means better tasting beef.
Not for everybody; Premium price point, targeting a consumer who wants a superior story with their product
Recommended claims will be communicated on package. However, the story of ranch, traceability, responsibility will all be communicated as the brand comes to life through POS, Web and brand activation
Additional Proof Points:
Cargill owns and operates four feedlots in our system. This ownership gives Cargill full control to:
Deliver reliable, top-quality supply for our facilities.
Practice the Optimum Harvest Endpoint System to determine peak animal maturity on an individual basis.
Be more flexible in response to supply and demand.
Manage and maintain our level of standards and expectations.
In addition, we’ve strategically partnered with Friona Industries to expand our pool of dedicated, premium cattle.
In food, timing is everything. The journey from our butchers to customers’ countertops should not be far. That’s why Cargill has plants strategically located within a day’s drive to more than 200 million consumers throughout the U.S. Most of our beef is shipped within 48 hours of production for dependable quality and maximum shelf life. We continually invest in the latest technologies and new distribution centers to become even more efficient. We recently opened facilities at Schuyler, NE, and Friona, TX with another planned to open in 2015 in Dodge City, KS.
We’ve partnered with MMT Genomics, Inc., to develop technology that uses an animal’s genetics to determine its potential. This process identifies the animal’s most favorable traits (including marbling, tenderness, retail yield and average daily gain) and categorizes them. Cargill can rate, supply and procure accordingly, improving overall efficiency and consistency. Seeing quality ahead of time is putting us ahead of the pack.
Environmental Focus
Water Management
Sustainable Water Practices:
Storm Water Runoff
Irrigation Improvements
Groundwater and Usable Water Sources
Wetlands
Water Supply Planning
Taylor Creek Reservoir
Wildlife Habitat and Special Places
Jug Island Reservoir: 500-acre wetland to naturally treat storm water runoff
Cargill / Deseret Project: 300-acre wetland to naturally treat storm water runoff and house rookery
Wood Stork Rookery: nesting site that has become one of the state’s largest rookeries for the endangered Wood Stork
McDonald’s is transitioning to what is called a cage-free aviary system, which is a hen housing system where the hens roam freely through an open barn or section of a barn with multiple tiers and floor access.
Cargill and McDonald’s want to be sure we do the transition right. So, we are incorporating learnings and best practices to improve cage-free hen housing systems, working with our egg suppliers to transition out of conventional housing and build new cage-free housing, and developing standards and robust verification programs to ensure our commitments are being met.
Cargill is also working with its egg suppliers to secure cage-free egg for our non-McDonald’s business, including entering into a long term supply agreement with an existing supplier at their new laying operation.
According to the United Egg Producers, it would take 166 million hens by 2025 to satisfy the combined demand from all restaurants, food distributors, hospitality & travel firms, and grocery retailers. A flock of this size would represent 58% of the U.S. non-organic flock of 276 million hens.
CVAP expects significant growth in the cage free market over the next 5-10 years and will transition its own supply chain to match customer demand.
Industry stats:
As of May 2016, Total cage-free shell egg production accounted for 9.9% of the table egg layer flock or 29.8 million hens.
Of this, 4.2% are organic* and 5.4% are cage-free.
Cage-free Eggs Types
AVIARY
Hens roam freely in defined sectors of a building. No outdoor access.
Open floor space and multiple levels for perching, dust bathing and nesting.
Stocking Density: Generally 144 square inches per hen for white birds.
FLOOR SYSTEM
Hens roam freely on the floor in a building. No outdoor access.
Also called single-tier or barn systems.
Stocking Density: Ranges from 180 to 216 square inches per bird for white hens.
FREE-RANGE
Hens are provided indoor shelter (fixed or mobile) and have access to the outdoors.
Hens may forage for wild plants and insects.
Stocking Density: Ranges from 144 to 180 square inches.