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Perdue has long been an industry

leader in environmental stewardship.

As a company committed to quality in

everything we do and as a brand built

upon trust, we wouldnt have it any other

way. Our respect for the environment

extends through every aspect of our

companys operations, from live

production to manufacturing and

distribution.

With environmental managers covering all

of our operations and the first large-scale

alternative to land application of poultry litter, weve

established a record for exceeding compliance and

leading the industry in addressing the environmental

challenges associated with animal agriculture and

food production.

Weve organized our environmental initiatives into

three sustainability platforms: Reduce, Reuse,

Recycle; Research and Innovation; and Community

Outreach. At the same time, our Perdue

Environmental Steering Committee is helping us

develop a plan to make Perdue a greener company.

Were also focusing on how we can protect the

environment by partnering with others. We continue

to recognize the importance of working together with

the farm community, environmental groups and local,

state and federal agencies. Our Clean Waters

Environmental Initiative with the EPA created a

groundbreaking model for how industry, agriculture

and regulators can cooperate to ensure compliance

and protect our natural resources. Equally important

are the relationships were forming with leading

national environmental groups, such as the National

Fish and Wildlife Foundation, and with such

grassroots community organizations as the Alliance

for the Chesapeake Bay and the Oyster Recovery

Partnership.

At Perdue, environmental sustainability goes beyond

policy; its in the nature of our company.

Environmental Sustainability:A Comprehensive Approach

Steve Schwalb, Vice President

of Environmental Sustainability

Defining a Greener Vision:The Perdue Environmental Steering Committe

While weve always been proud of our

environmental accomplishments as a

company, we recognize that our customers,

consumers, communities, associates and business

partners want to see measurable proof of our

sustainability efforts. Thats why weve recentlybrought our long-standing respect for the

environment into a formal, companywide

environmental sustainability program. To that end,

we formed the Perdue Environmental Steering

Committee, a cross-functional team that includes

representatives from Perdue Farms (our food

products business), Perdue AgriBusiness, and our

corporate support groups (including

environmental services, research and

development and human resources).

The steering committee has created a formal

structure to measure, track and report on

environmental efforts across the compa

including measuring our companys car

footprint and benchmarking our enviro

efforts against world-class standards. Th

committees efforts are helping define t

of our environmental sustainability initia

Our environmentalsustainability efforts

touch every product,every process and

include every step in

the supply chain.

Cathy Klein, Vice President,

Perdue AgriBusiness

Co-Product Sales and

Environmental Steering

Committee Co-Chair

Water from our Lewiston, N.C., processing operation leaves our wastewater tplant cleaner than the river into which it is discharged.

Perdue is committed to environmen-

tal stewardship and shares that com-

mitment with our partners in the

farm community. We believe it is pos-

sible to preserve the family farm and

provide a safe, abundant and afford-

able food supply while protecting our

communities and the environment.

Perdue leads the industry in address-

ing the full range of environmental

challenges related to animal agricul-

ture and food processing, investing

millions of dollars in research, new

technology, equipment upgrades, and

awareness and education.

Our Commitmentto EnvironmentalStewardship

In naming Chairman Jim Perdue the 2010 winner of

Marylands Governors International Leadership Award,

Governor Martin OMalley cited the companys

environmental stewardship.

In 2009, Perdue became the eighth company to receive

Poultrymagazines Jewell award for innovation, and the

first to win the award for innovation and leadership inenvironmental stewardship.

Our companys environmental initiatives also gained a

National Provisioner cover story and a feature article in

Meat & Poultry, with both articles recognizing our

companys industry leadership in environmental

stewardship.

Awards & RecognitionThe mission of ourenvironmental

programs is to set

the standard forregulatory

compliance,stewardship,

sustainability andcommunity

outreach.

The mission of our

environmentalprograms is to set

the standard for

regulatorycompliance,

stewardship,sustainability and

communityoutreach.

Jeff Smith

Director of Corporate

Environmental Services


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Responsibility and Respect: Perdues

Environmental Sustainability Accomplishments

Reduce, Reuse, RecycleWere conserving resources and reducing waste

streams by managing material usage more efficiently.

Our Perdue AgriRecycle litter recycling plant has

handled more than 650,000 tons of litter in its

first eight and a half years of operation. Thats

the equivalent of 52 million pounds of nitrogen,

26 million pounds of

phosphorus and 30

million pounds of

potassium with more than

half of the finished

product relocated to

nutrient-deficient areas.

Phytase, an enzyme

added to poultry feed,

reduces phosphorus in

manure by 25%.

Our Shore Water Conservation initiative resulted

in an average reduction in water use of 2.3

million gallons of water per week for each of our

four Delmarva processing plants. A similar

program at our Cromwell, Ky., plant is saving 2.4

million gallons of water per week.

Cold cathode lighting in our farm partners

chicken houses reduces energy use by 80%.

Lighting projects are reducing electricity use

across the company, including annual savings of

1.2 million kWh at our Milford, Del., processingplant; 346,000 kWh at our Eagle Springs, N.C.,

hatchery and 780,000 kWh at the wastewater

treatment plant for our Cromwell, Ky.,

processing plant.

Recycling efforts at our Lewiston, N.C.,

processing plant reduced solid waste by 2,170

tons. Our Dillon, S.C., facility recycles more than

55% of its solid waste. Similar efforts are

underway at all of our facilities.

Perdue Transportation Inc. is an EPA SmartWay

Transport Partner with an exceptional rating.

The Environmental Management System (EMS),

piloted at our Salisbury, Md., processing plant

and modeled after internationally recognized

ISO 14001 standards, integrates environmental

sustainability goals and measures into every

aspect of plant operations. We are rolling out

the Perdue EMS at all our facilities.

Weve used computerized routing technology to

reduce by 2,000 miles per week the distances

traveled by our flock supervisors to visit our farm

partners poultry operations.

Research and Innovation

Were leveraging technology discovered through

research or developed through innovation to drive

environmental sustainability throughout Perdues

supply chain for the benefit of associates,

consumers, customers and our businesses. This

initiative includes teams working on more

environmentally friendly packaging and alternative

fuels.

Perdue BioEnergy, LLC, is pursuing

opportunities in alternative fuels, including next-

generation bio-energy.

Were exploring alternative energy sources,

including wood chips and poultry fat, to

replace fuel oil at our processing plants, and,

where feasible, switching from fuel oil to more

environmentally friendly gas-fired boilers.

Were improving packaging to maximize

payloads and reduce waste at both the customer

and consumer level. A case-size change reduced

by 75 the number of trucks needed each year to

ship a popular product to one of our foodservice

customers. A redesigned box lid for a major

retail customer reduced

corrugated cardboard

use by 1.3 million

square feet a year. A

more efficient process

reduced by 56% the

packaging for our twin-

pack Cornish hens.

Were also moving

product out of wax-

coated boxes when possible so that more of our

shipping boxes can be recycled.

Were re-formulating products and processes to

reduce environmental impact on our waste

streams. Examples include reducing phosphate

use in further-processed products.

In one year, we used 883,000 gallons of

biodiesel on Delmarva in our trucks.

Environmental

sustainability involves

every associate in the

plant; its part of our

culture.

Tanya Rogers-Vickers

Environmental Manager,

Salisbury Processing Plant

Were developing next-

generation packaging

that is environmentally

friendly and improves

customer

convenience.

Dave Owens,

Vice President,

Research and Development

Community Outreach

Were coming together with various stakeholders,

including our local communities, environmental

groups and regulatory agencies, to communicate,

educate and collaborate on environmental

sustainability efforts.

The Clean Waters Environmental Initiative is a

historic agreement between Perdue and the

Environmental Protection Agency to partner

with the independent farm families who grow

our chickens to protect waterways in the

communities where we operate from nutrient

run-off.

Perdue has partnered with the Center for

Inland Bays to improve water quality in the

Eastern Shores Little Assawoman Bay.

Perdue pledged 750 volunteer hours to

environmental groups as part of Maryland

Public Televisions Chesapeake Bay Week

Volunteer-a-thon.

We continue to work closely with local, grass-

roots environmental groups and programs,

such as the Oyster Recovery Partnership and

Alliance for the Chesapeake Bay, and with

national environmental groups, such as the

National Fish and Wildlife Foundation. These

partnerships provide support to worthwhile

projects while also giving our associates the

opportunity to participate on a personal level.

Perdue associates and family members participate in volunteer efforts, including theNFWF/Perdue-funded Oyster Recovery Partnership (above) and Project Clean Streams,as part of the companys commitment to the Chesapeake Bay Week Volunteer-a-thon.


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Perdue AgriRecycle is the industrys first large-scale alternative to land application

of poultry litter. The plant, which represents an initial $13 million capital

investment in protecting the environment, processes surplus poultry litter from

Delmarva farms into pasteurized, organic fertilizer products. Perdue AgriRecycle

provides free poultry house clean-outs to farm partners who have surplus litter, and

the program is open to poultry farmers regardless of

their company affiliation.

While poultry litter remains a valuable resource for

many producers as a natural alternative to chemical

fertilizers, Perdue AgriRecycle provides an

environmentally friendly alternative for those poultry

farmers who do not have the acreage for traditional

land application or whose fields do not need the

nutrients.

The finished product is an Organic Materials Review

Institute (OMRI) certified organic fertilizer and meets the requirements of the USDAs

National Organic Program (NOP). It is used in horticulture, landscaping, organic crop

production and as a key ingredient in popular organic lawn-and-garden products.

Perdue AgriRecycle also participates in litter transport programs, relocating raw litter

to farmers who can appropriately utilize the nutrients. More than half the nutrients

recycled are removed from the Chesapeake watershed.

Perdue AgriRecycle: An Industry First

With every loadthat comes into

the plant and

every load that

leaves, werehelping the

environment.

Wayne Hudson, Director

Co-Products Operations,

Perdue AgriBusiness

The Perdue Clean Waters Environmental Initiative is an industry-leading

cooperative agreement with the U.S. Environmental Protection Agency (EPA)

Regions 3 and 4 designed to help independent contract poultry farmers growing for

Perdue protect our nations waters. The program is an expansion of Perdues

groundbreaking Clean Bays Environmental Management Initiative, a pilot program on

Delmarva that created a new model for how industry,

agriculture and regulators can cooperate to promote

compliance and protect our natural resources.

The Clean Waters initiative provides training, assistance

and environmental assessments for farm partners growing

our chickens to enhance the compliance of their poultry

operations with federal, state and local environmental

regulations. In addition, Perdue processing facilities will

each implement an Environmental Management System, a

formal system designed to reduce environmental impacts

through awareness, measurement and goal-setting.

By the end of the four-year implementation, approximately 1,650 farm partners in

Alabama, Delaware, Florida, Georgia, Kentucky, Maryland, North Carolina, South

Carolina and Virginia will be included in the initiative.

Clean Waters Environmental Initiative: Making History

Were workingproactively with our

farm partners to

help them maketheir poultry

operations moreenvironmentally

friendly.

Ron Darnell,

Director of Live Production

Perdue live production associates are working closely with the independent farmerswho raise our birds to help them prevent nutrient run-off from their poultr y operations.Perdue AgriRecycle makes its litter recycling and relocation

services available to all poultry farmers, regardless of companyaffiliation.


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www.perdue.com

2010 Perdue Incorporated

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