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Corporate Responsibility Report 2012

Sustainability: Energy

We understand the importance of energy conservation and the responsible use of resources. Our hatcheries, feed mills, processing plants, protein conversion plants and distribution centers all use significant amounts of electricity, natural gas and/or fuel oil. In order to manage our energy usage effectively, we have contracted with a major national company to track our energy usage and manage our utility bills.

We are working to reduce our energy dependence in a number of different ways. We have conducted a company-wide energy efficiency assessment with site visits to help develop a comprehensive strategy to reduce energy consumption and environmental emissions.

Biofuels

As energy costs continue to soar, biofuels are gaining increasing importance as an alternative energy source. Our company is currently periodically using poultry fat as a fuel source at two company locations, where it is used to heat water for our chicken-processing plants. The boilers at these locations have the ability to use natural gas, low-sulfur #2 heating oil or biofuel (poultry fat).

While this fuel flexibility is promising, biofuels are just one of the potential uses for recycled poultry by-products, which can take other forms including ingredients for animal and pet feed. We currently sell up to a million pounds of poultry fat per week to outside vendors who use the material to produce biofuel, while the remaining material is converted to fats and oils for feed rations.

Heat Recovery

In continuing to identify new ways to conserve energy, one of the technologies we have tapped is the use of heat-recovery systems in our protein recycling plants. Vapor from the cooking process is captured in a heat exchanger, which uses 280-degree F steam to produce hot water. This process can provide up to 300,000 gallons of hot water to our processing plants each day.

We are currently researching the potential for firing boilers using wood waste, which is a sulfur-free fuel source with the potential to burn cleaner than natural gas, and our Alternative Energy team continues to study conservation, biofuels and solar energy in order to find new ways to apply energy-saving technology to our business.

Sustainability: Energy