rooted in tradition, growing responsibly€¦ · sustainability report 2009 rooted in tradition,...

SUSTAINABILITY REPORTROOTED IN TRADITION, GROWING RESPONSIBLY2

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1.0 SustainabilityatTysonFoods –AProudHeritage1.1 TysonFoods’Sustainability MissionStatement1.2 AMessagefromourPresident andCEO1.3 AMessagefromourChief Environmental,Health,and SafetyOfficer1.4 TheFoundationofOurCompany -OurCoreValues

2.0 TysonFoodsataGlance2.1 OurCustomersandConsumers2.2 ADiversifiedBusinessModel2.3 OurOperations

3.0 People3.1 Ethics3.2 RecognizinganExceptionalWorkforce3.3 EnsuringtheHealthandSafetyofOur TeamMembers3.4 HungerRelief3.5 CharitableGiving

4.0 Planet4.1 OurEnvironmental,Health,and SafetyPolicy4.2 OurEnvironmentalTeam4.3 EnvironmentalManagementSystem4.4 AuditingOurPerformance4.5 DataCollectionandAssurance4.6 ManagingOurEnvironmentalFootprint4.7 EnvironmentalFinesandPenalties4.8 AwardsandRecognitions

5.0 Products5.1 ManagingFoodSafetyandQuality5.2 SupportingOurCustomersand Consumers5.3 ProductResearchandDevelopment5.4 PromotingNutritionandHealth5.5 ResponsibleMarketingandAdvertising5.6 AnimalWell-Being

6.0 Profits6.1 CorporateGovernanceand Compliance6.2 CompanyStrategyandFinancial Performance6.3 OurSupplyPartners6.4 SupportingtheFamilyFarmer6.5 RenewableProducts6.6 BuildingaMultinationalEnterprise6.7 PublicPolicyandPolitical Contributions6.8 EthanolandAnimalFeed

7.0 OurApproachtoSustainability Reporting7.1 MaterialIssues7.2 GrowingSuccessfulPartnerships –StakeholderEngagement7.3 RestatementsandChangesin Reporting7.4 DataIntegrity

8.0 GlobalReportingInitiativeIndex8.1 Acknowledgements8.2 Contacts

Contents

2009 Tyson Foods Sustainability Report | 2

Asweenterour75thyearofbusiness,wefindourselvesthinkingbackto1935whenourfounder,JohnW.Tyson,beganhaulingchickensfromSpringdale,Arkansas,topoultrymarketsinKansasCityandSt.Louis,Missouri.Inthespringof1936,Johndeliveredhisfirstloadof500Arkansas-grownchickenstoChicagoandnettedaprofitof$235.Withinayear,JohnwashaulingloadsofArkansaschickenstonewmarketsinCincinnati,Detroit,Cleveland,Memphis,andHouston.Althoughnoonerealizeditatthetime,JohnwaslayingthefoundationforthemoderndaypoultrybusinessandTysonFoods.

Today,TysonFoodsisoneoftheworld’slargestprocessorsandmarketersofchicken,beef,

andporkfoodproducts.Asourcompanyhasgrown,sohaveourresponsibilities.Weunderstandouractionsanddecisionshaveanimpact.Werecognizetheglobalcommunityweservefacesunparalleledeconomic,environmental,andsocialissues,suchasincreasedunemploymentrates,resourcescarcity,andextremehungerandpoverty.UnderstandingandaddressingtheseissuesisconsistentwiththeCoreValuesofourcompany.

Webelieveourtriple-bottom-linesuccess,includingsocialprogress,environmentalexcellence,andeconomicgrowth,willcontinueaswestrivetodotherightthingwithrespecttopeople,planet,andprofit.Sustainabilitytoucheseveryaspectofourcompanyandouroperations.

Accordingly,wedefinesustainabilityinawaythatbringsresponsibilityandaccountabilityintoeverybusinessactivityandprocess.OurCoreValuesandfocusonsustainabilityguideouractionsonimportantissuessuchashungerrelief,foodsafety,environmentalprotectionandresourceconservation,animalwell-being,ethicalbusinesspractices,thehealthandsafetyofourTeamMembers,andreturningaprofittoourshareholders.

Wearecommittedtobuildingtheworld’smostextraordinaryfoodcompany,andtoconductingbusinessinamannerthatbuildsfinancialsuccess,respectstheenvironment,andsupportsthoseinneed.

1.0 sustainability at tyson Foods – a Proud Heritage


1.1 tyson Foods’ sustainability Mission stateMentTysonFoods,Inc.,recognizestheimportanceofbeingaresponsiblecorporatecitizen.OurCoreValues–whichdefinewhoweare,whatwedo,andhowwedoit–arethefoundationofcorporatesustainabilityatTyson.Wearecommittedtomakingourcompanysustainable–economically,environmentally,andsocially.Ourprogressinthisendeavorwillbemeasuredbyhowwedevelopandmarketourproducts,howwecarefortheanimals,land,andenvironmententrustedtous,andhowwetreatpeople,includingourTeamMembers,consumers,suppliers,andthecommunitiesinwhichweliveandoperate.

JohnTysonChairman,TysonFoods,Inc.


“It’sourtime”isafamiliarphrasearoundthehallsofTysonFoodsrecently.Weareexcitedaboutourgreatteam,thefutureofourcompany,andtheopportunitieswehavenotonlytofeedtheworld,buttoleavethisworldabetterplacethanwefounditbecauseweadheretosustainablebusinesspractices.It’sourtimebecausewehavethebestpeople,customers,assets,brands,andcorevaluestoguideusonourjourney.

Thebusinesscaseforsustainablepracticesispositive,bottom-lineimpact.Improvingconditionsforourpeople,planet,andprofitmakeseconomicsense.Thatbottomlineargumentisevenmoreimportantinthistougheconomy–especiallyforourTeamMembersandshareholders.

Asoursustainabilitypracticesevolve,weknowwemustfocusonwhat’srightforourbusiness.Wecaredeeplyaboutissuessuchashungerrelief,foodsafety,animalwell-being,thehealthandsafetyofourTeamMembers,environmentalprotection,resourceconservation,andreturningprofitstoourshareholders.Accordingly,wehavesetthefollowingfoursustainabilitygoalstomeasureourprogress:

•Reduceourwaterusageby10percentoveratwo-yearperiodascomparedtoourwaterusagelevelsattheendoffiscalyear2008;

•Produceupto75milliongallonsofbio-fuelayearfromanimalfatwithinthenextfouryears;

•DonatemillionsofpoundsofproteinannuallytoFeedingAmericafoodbanksacrossthecountry;and

•Supportgovernmentpoliciesthatwillnotoverusefood,suchascornforrenewablefuel,andencourageeffortstofindnon-foodsourcesofrenewableenergy.

Wewillkeepoursustainabilityeffortsfocused,measured,andsupportiveofourbusiness.Welookforwardtoworkingwithourcustomers,suppliers,andothersoncommon-groundsustainabilityefforts.Noteveryeffortworkswellforeverycompany,butbycarefullyselectingopportunitiesforcollaboration,wecanshareideasandleverageresourcestowardimpressiveachievements.

Someofourrecentsustainabilitysuccessesinclude:

•DynamicFuels,ajointventurebetweenTysonFoodsandSyntroleumCorporation,brokegroundinOctober2008onaplantthatwillconvertlowgrade,inediblefatsandgreasesintorenewabletransportationfuelsforthecivilianandmilitarymarkets.Thefacility,locatedinGeismer,Louisiana,iscurrentlyscheduledtobeginproductionin2010,withanexpectedtotalcapacityof75milliongallonsperyearofrenewabledieselfuel.

•InJuly2008,webeganpursuingourGlobalFoodSafetyInitiative(GFSI)certification.TheGFSIisapartnershipbetweenfoodsafetyexpertsfromretailer,manufacturer,andfoodservicecompaniesthatfocusesonthecontinualimprovementoffoodsafetymanagementsystems.AsofSeptember2009,67ofTysonFoods’U.S.-basedfacilitieshavebeencertifiedagainsttheBritishRetailConsortiumGlobalStandardforFoodSafety.

•WearecommittedtothesafetyandhealthofourTeamMembers.Duringfiscalyear2009,thecompanyreduceditsTotalRecordableIncidentRateby19.2percentanditsDaysAway,Restricted,andTransferRateby20.7percent.Inaddition,weimprovedourinternalsafetymetricscoreby14.1percentduringfiscalyear2009.

•AnotheraspectofourongoingcommitmenttothehealthandsafetyofourTeamMembersisergonomics.OnNovember24,2009,TysonFoodsandtheUnitedFoodandCommercialWorkersUnioncompletedthe20thyearofaworkplaceergonomicsprogramthatismakingmeatprocessingjobssaferandhashelpedreduceworkerinjuriesandillnessessuchasstrainsandsprains.

IknowTysonFoods’TeamMemberswillprovidetheenergy,ideas,andleadershiptocontinueoursuccessfulsustainabilityefforts.We’reproudoftheworkwehavedoneandtheopportunitiesahead,aswecontinuetolearnandprogressasacompany.

DonnieSmithPresidentandChiefExecutiveOfficerTysonFoods,Inc. 2009 Tyson Foods Sustainability Report | 5

1.2 a Message FroM our President and Ceo

Ourcompany’sCoreValuesaretheframeworkofoursustainabilitypractices,whicharefocusedonpeople,planet,andprofit.Inotherwords,sustainabilityatTysonFoodsisaboutdoingtherightthinginallaspectsofourbusiness.

StrivingeverydaytoprovideasafeworkenvironmentforourTeamMembersandtoserveasstewardsoftheenvironmentareintegralcomponentstohowweplanourdays,doourwork,checkourperformance,andcontinuallyimprove.Weareoftenaskediftherearebenefitstosustainability.Theshortanswerisyes.Thebenefitsrangefrom“feelinggoodaboutourcompany”tothecreationofinnovativeproductsandmeasuredimprovements.

Weareproudtopresentourthirdsustainabilityreport,whichprovidesdetailsaboutourbusinessandhowwegoaboutmakingasustainabledifferenceforthefuture.Aswehaveplannedandacteduponoursustainabilityjourney,keytopicssuchashumansafety,hunger,waterresources,climatechange,renewablefuels,safefoodproduction,animalwelfare,recycling,andthedisposalofdiscardedmaterialscontinuetobeapartofoursuccessandholdourattentiontowardcontinualimprovement.

Therearebenefitsforcompaniesthatchoosetofollowapathtowardsustainability.Hereareafewkeyhighlightsonsafetyandenvironmentalefforts.

Health & Safety

OneofourCoreValuesisstrivingtoprovideasafeworkenvironmentforourTeamMembers.Wedothisbymakingsuresafetyiseveryone’sjob,everyday.OverthepastfouryearsourTotalOccupationalSafetyandHealthAdministration(OSHA)Recordable(TOR)andDayAwayRestrictedandTransfer(DART)injuryandillnessrateshavetrendeddownward.DuringFY2009weexperienceda19.2percentreductioninTORand20.7percentreductioninDART.Unfortunately,whilewehaveachievednumericalimprovements,wealsoexperiencedthework-relateddeathsoftwoTeamMembersduring2008-2009.Theseunfortunateincidentsarefeltbyourentireorganizationandserveasaconstantreminderofwhynothingshouldstandinthewayperformingourworksafely.

Listeningtoourpeopleisoneofthesinglemostimportantaspectsofsafetysuccess.Consistent,repetitivesafetycommunicationandtrainingarealsovital.Monthlysafetyreviewcallsareheldineachofourbusinessunitsandinvolvemultiplelevelsofmanagement,includingaspanofTeamMembersfromplantsupervisorstoexecutivemanagers.OurfacilitieshavesafetycommitteesmadeupofhourlyandmanagerialTeamMemberswhomeetregularlytocommunicate,discussperformance,performroot-causeanalysisofspecificincidents,anddeveloppreventiveactionstodrivecontinualimprovement.

WeworkcollaborativelywithOSHAinresponsetocomplaintsandinspections.DuringFY2009wereceived23complaintsand28inspections.Inaddition,wereceived63citations(26ofwhichwerewithdrawn),sevenofwhichhavebeensettled,and30ofwhichremainundernegotiation.Weendeavortoworkwiththeregulatorycommunityinapositive,openmannerwiththeinterestofourpeople’ssafetyastoppriority.

OnefacetofsustainabilityistheongoinginvestmentinthecareandlongevityofourTeamMembers.Forovertwodecades,Tysonhasemployedergonomicstohelpcreateauser-friendlyworkenvironment.Committingtoworksmarteranddeploymethodstomaketasksmoreefficientandeasiertoaccomplish(ergonomics)hasmanybenefits.

Takeforinstance,thefollowingthreeexamples.First,weaskpeopletodotheirjobsright–thefirsttime,everytime.Whenworkiseasiertoaccomplish,peoplecan“hittheirmark.”Properergonomicdesignofworkhelpspeopledoqualitywork,ratherthanchallengingthem.Second,weaskpeopletoworkhard–agoodday’sworkforagoodday’spay.Whenworkiseasier,peoplecanaccomplishmore.Improvementsinproductivity,insidethecompanyandout,arisefrombettermethodsandtechnologythatmakesworkeasier.This,too,ispartoftheequationofergonomics.Third,wedesire

1.3 a Message FroM our CHieF environMental, HealtH, and saFety oFFiCer


productiveandqualityworknotonlytoday,buttomorrow,nextweek,andnextyear.Makingworkeasierhelpspreventinjuriesandillnesses,suchasstrains/sprainsormusculoskeletaldisorders(MSDs).

Ergonomicsinvolvesfittingworktoourpeople,ratherthanmakingpeopletrytofitworkthatmaynotbeoptimallydesignedorwell-suitedtothem.Tomakethisconceptareality,Tysonusesaformalstructuredapproachtoergonomics,including(1)managementcommitmentofresources;(2)extensivetrainingconductedatmanylevelsintheorganization;(3)jobsaresystematicallyreviewedwithstructuredcheck-listsandavarietyofanalysistools;(4)risksthatmaybeidentifiedaredriventorootcause;and(5)teamsofstakeholders—thesamefolkswhogetthetrainingmentionedabove—worktogethertobrainstorm,design,andimplementsolutions.Thiscanrangefromimprovedtoolsandfixtures,tobettertechniquesormethods,toclearerinstructions—makingworkereasierforthebodyandmind.

Ifsomeoneishurtonthejob,TysonFoodshasaverycapablemedicalmanagementteamthatworkstoidentifyandtreatissuesearly,beforetheybecomeserious.TreatmentismonitoredanddynamicallymanagedtoreturnTeamMemberstoworkasquicklyaspossible(sometimesimmediatelyinanalteredrole).

Somerecentergonomicsuccessstorieshaveincluded:

•TysonFreshMeats(formerlyknownasIBP,inc.)andtheUnitedFoodandCommercialWorkers(UFCW)unioncompletedlastyearthe20thyearofaworkplaceergonomicsprogramthatismakingmeatprocessingjobssafer.Someofthekeyelementsof

theprogramincludeongoingergonomicstrainingforproductionworkers;theinvolvementofhourlyworkersas‘ergonomicmonitors’;work-siteanalysisandtheredesignofworkstationsandequipment;andamedicalmanagementprogramfocusedonearlydetectionandtreatmentofworkplaceinjuriesandillnesses.Thesuccessofthisprogramhasbeenthededicationandfeedbackfromworkerswhoserveassafetyandergonomicsmonitors.Theteamworkbetweenhourlyproductionworkers,plantmanagers,andcorporatemanagementteamshasbeenveryimportanttotheongoingsuccessoftheprogram.

•Technologyforquantifyingknifesharpnesshasreducedinjury(90percentreductioninfirstinjuryreportsatourTemperanceville,Virginia,facility)andprovidedobjectivefeedbackthatallowsustotakecontrolofoursharpeningprocess(knivesnowmorethantwiceassharpatObionCounty).

•Ergonomicsdesigncriteriaformanualdebonelinesinpoultryprocessingplantshaveresultedininjuryandillnessratesthatare20-percentlowerthanpreviousgenerationequipmentinstallations.

•Enhancedtrailerspecificationsandconcentratedmaterialhandlingtrainingfordrivershasresultedina$300,000savingsinworkerscompensationcostsfortheTexasRouteSalesDeliveryorganization(zeroinjuriestodatethroughthe11thmonthofthefiscalyear.).

•Ergonomics in the Poultry Industry: A Review of 25 Years of Industry EffortsisarecentpoultryindustrystudyconductedbytheJointIndustrySafetyandHealthCouncil

(madeupofmembersoftheU.S.PoultryandEggAssociation,NationalChickenCouncil,andNationalTurkeyFederation).Thestudyreportstheindustry’seffortsinthepreventionandearlytreatmentofmusculoskeletaldisorders(MSDs).ItalsodiscusseshowOSHAhasfocusedattentiononthepoultryindustryandthepositiveresultsachievedfromOSHAandtheindustryworkingtogether.MSDsinthepoultryindustryhavedeclined75percentduringthelast25years.

Environmental, Health and Safety Management System (EHSMS)Attheendof2008,wefinishedimplementingEnvironmental,HealthandSafetyManagementSystems(EHSMS)atallofouroperatingfacilitiesintheU.S.andMexico.ThissystemmeetstherequirementsoftheInternationalOrganizationforStandardization(ISO)continualimprovementprocessforenvironmentalmanagementknownasISO14001.WecomplementedthisbyincorporatingtheprinciplesoftheOccupationalHealthandSafetyAssessmentstandardknownasOHSAS18001tosupportourintegratedmanagementapproachfortheenvironmental,health,andsafetydisciplines.Managementsystemauditsarescheduledtobeginduring2010tomonitorandcontinuallyimproveperformance.

Environmental Stewardship Whilewediscusssolutionstoglobalconcernslikewaterconservationandclimatechange,wehavechosentoconcentrateoureffortsintheseareasonhowweconductbusiness.Forexample,ourannualwaterusagefortheproductionoffoodproductsinFY2009was25.5billiongallons.Attheendof2010,wewillevaluatewaterusageandconservationprogress


againstthe10-percentreductiongoalsetin2008.Basedupontheresults,anewgoalwillbedevelopedconsideringanumberoffactors,includingfindingabalancefortheexpectationsofregulatoryauthoritiesforfoodsafetyandenvironmentalprotection.

Ourwaterconservationefforts,alongwithseveralfacilityclosures,ledtoawaterusagereductionof7.6percentbetweenOctober2004andSeptember2009.Thisisequivalenttoa13.9percentreductioninthenumberofgallonsusedperpoundoffinishedproduct.

Weoperate34fulltreatmentand42pretreatmentwastewatersystemsandmonitorourcomplianceagainstpermitrequirements.Itisourgoaltopreventpotentialpermitexceedancesandnoticesofviolationthroughtheuseofpredictiveanalyticalindicatorstomonitorcomplianceandidentifypositiveornegativetrends.Whentrendsindicatethepotentialfornon-conformance,remedialactionsaretakentoreturntonormaloperation.Wemeasuredanincreaseinpermitexceedancesbetweenfiscalyears2008and2009followingthreeyearsofadecliningtrend.Appropriatecorrectiveactionsweretakentodeterminetherootcauses,identifypreventiveactions,andreturntofullcompliance.WealsomeasuredanincreaseinNoticesofViolation(NOVs)duringthissameperiodandtooksimilaractionstomitigatethecausalfactorsandfindpreventiveactionsforsuccessfulfutureoperation.

Climate Change

Ourclimatechangeeffortshaveincluded:(1)becomingapartnerintheU.S.EnvironmentalProtectionAgency(USEPA)Climate LeadersTMprogramin2004(Theprogramisavoluntarypartnershipchallengingbusinessestoreduce

theirGreenhouseGas(GHG)emissions);(2)completionofacomprehensivecarbonfootprintinventoryfordomesticoperations;(3)publicdisclosureofourcarbonfootprintsinceourbaselineyearof2004;(4)operationofcoveredanaerobicwastewaterlagoonsatsixofourfoodprocessingfacilities,fourofwhichhavebiogassystemsusingthemethanegeneratedasboilerfuel;(5)creatingandtradingcarbonoff-setcreditsinthevoluntarycarbonmarket;(6)preparationforcompliancewithEPA’smandatoryGHGreportingrule,withthefirstreportduein2011;and(7)becominganEPASmartWayPartnerasbothashipperandcarrier.

During2010,wehavebegunamoredeliberateeffortinthemeasurementofenergyusageandsettinggoalsforourbusinessunitstoimprovetheirenergyconsumptionbudgets.Ourinitialfocushasbeenlow-costandno-costimprovements,andcapturingenergyfootprintdataforuseinlongertermevaluationsofenergyequipmentandfuturecapitalexpenditurepossibilitiestolowerenergycostandconsumption.

Thecompany’sGHGfootprintduringcalendaryear2004(definedasourbaselineyear)was5.35millionmetrictons.Thisbaselineinventoryincludeddatarelatedtofacilityfuelandelectricityusage,transportationfuels,refrigerationusage,andanaerobicbiogasproduction.Basedonthisinventory,thecompanyisconsideringsettingGHGemission-reductiongoalsduringfiscalyear2010.Inlightofthecurrentuncertaintysurroundingthelegislativeandregulatoryinitiativesdealingwithclimatechange,however,TysonFoodsmaychoosetodelayitsdecisionongoalsettinginordertobetterunderstandthefuturelegallandscapeandroleofcarbonintheeconomy.Thecompanyiscommittedto

makingappropriatereductionsandinvestinginenergy-efficientprojectstoimprovebottom-lineperformance.

SustainabilityistrulyabouteverythingwedoatTysonFoods.Routineinteractionwithourcustomers,neighbors,TeamMembers,friends,andotherstakeholdersenablesustohearandconsidermanypointsofviewandallowscollaborationoncommon-groundsustainabilityeffortstomakeourbusinessstronger.

Kevin IgliKevinIgliChiefEnvironmental,Health,andSafetyOfficerTysonFoods,Inc.


TysonFoods’visionistobetheworld’sfirstchoiceforproteinsolutions,whilemaximizingshareholdervalue.OurCoreValuesarefundamentaltoourcompany.Theyshapeanddirectourstrategyandinspireusdaily.Theyareintegraltothewaywedobusiness.OurCoreValuesguideourrelationshipswithourTeamMembers,customersandconsumers,suppliers,andindependentproducers.Ourgoals,programs,andmetricsarederivedfromandsupportourCoreValues.

Tyson Foods’ Core Values Weareacompanyofpeopleengagedintheproductionoffood,seekingtopursuetruthandintegrity,andcommittedtocreatingvalueforourshareholders,ourcustomers,andourpeopleintheprocess.

Who we are:

•Westrivetobeacompanyofdiversepeopleworkingtogethertoproducefood.

•Westrivetobehonorablepeople.

•Westrivetobeafaith-friendlycompany.

What we do:

•Wefeedourfamilies,thenation,andtheworldwithtrustedfoodproducts.

•Weserveasstewardsoftheanimals,land,andenvironmententrustedtous.

•WestrivetoprovideasafeworkenvironmentforourTeamMembers.

How we do it:

•Westrivetoearnconsistentandsatisfactoryprofitsforourshareholdersandtoinvestinourpeople,products,andprocesses.

•Westrivetooperatewithintegrityandtrustinallwedo.

•WestrivetohonorGodandberespectfulofeachother,ourcustomers,andotherstake-holders.

1.4 tHe Foundation oF our CoMPany - our Core values


TysonFoodsoriginatedin1935whenfounderJohnW.TysonstartedhaulingchickensfromSpringdaletomarketsinKansasCityandSt.Louis.Helaterexpandedhisbusinessbyproducingandsellingbabychicksandfeedtofarmers,andinOctober1947,heestablishedTysonFeedandHatchery,Inc.Thecompanyenteredthechickenprocessingbusinessin1958afterbuildingitsfirstplantinSpringdale,Arkansas.

ThecompanychangeditsnametoTyson’sFoods,Inc.,in1963,thesameyearithaditsfirstpublicofferingofcommonstockandacquiredGarrettPoultry,apoultryprocessingplant,feedmill,andhatcheryinRogers,Arkansas.

DonTysonassumedtheleadershipofthecompanyin1967,afterhisfatherdiedinanautomobile-trainaccident.UnderDon’sleadership,thecompany’spoultrybusinessgrewrapidlythroughaseriesofacquisitions,includingthepurchaseofsuchcompaniesasHollyFarmsandHudsonFoods.Thesestrategicacquisitionsmadethecompany,whichwasrenamedTysonFoods,Inc.,in1972,thenation’sleadingpoultrycompany.

Don’sson,JohnH.Tyson,becamechairmanoftheboardin1998andchiefexecutiveofficerin2000.Underhisleadership,thecompanyinitiatedanothermajoracquisitionin2001,whenTysonFoodsboughtIBP,inc.,theworld’slargestsupplierofbeefandpork.

In2007,TysonFoodsenteredintoajointventurewithCactusFeeders,Inc.,andCresudS.A.C.I.F.yAtocreatethefirstverticallyintegratedbeefoperationinArgentinaandannouncedthecreationofDynamicFuelsLLC,a50-50jointventurewithSyntroleumCorporationtoproducesyntheticfuelsmadefromby-productfats,greases,andoilstotargettherenewabledieselmarkets.In2008,TysonFoodsenteredthepoultrybusinessinSouthAmericabyacquiringthreechickencompaniesinsouthernBrazil.

Today,TysonFoods[NYSE:TSN]withheadquartersinSpringdale,Arkansas,isoneoftheworld’slargestprocessorsandmarketersofchicken,beef,andpork;thesecond-largest

2.0 tyson Foods at a glanCe


foodproductioncompanyintheFortune500;andamemberoftheS&P500.Thecompanyproducesawidevarietyofprotein-basedandpreparedfoodproductsandistherecognizedmarketleaderintheretailandfoodservicemarketsitserves.TysonprovidesproductsandservicestocustomersthroughouttheUnitedStatesandmorethan90countries.Thecompanyhasapproximately117,000TeamMembersemployedatmorethan400facilitiesandofficesintheUnitedStatesandaroundtheworld.

Infiscalyear2009,TysonFoodsrepresented20percentofU.S.chickenproduction,22percentofU.S.beefproduction,and18percentofU.S.porkproduction.Infiscal2009,thecompany’saverageweeklyproductionincluded41.4millionchickens,approximately139,400cattle,and393,300hogs.Thecompanygeneratedtotalsalesofapproximately$26.7billioninfiscal2009.Thisincludes$3.4billionininternationalsales.

ThroughitsCoreValues,CodeofConduct,andTeamMemberBillofRights,TysonFoodsstrivestooperatewithintegrityandtrustandiscommittedtocreatingvalueforitsshareholders,customers,andTeamMembers.Thecompanyalsostrivestobefaith-friendly,provideasafeworkenvironment,andserveasstewardsoftheanimals,land,andenvironmententrustedtoit.

TysonFoods’visionis“tobetheworld’sfirstchoiceforproteinsolutionswhilemaximizingshareholdervalue,livingourCoreValues,andfosteringafunplacetowork.”Thecompany’smissionistoproduceandmarkettrusted,qualityfoodproductsthatfittoday’schanginglifestylesandtoattract,reward,andretainthebestpeopleinthefoodindustry.

Want To Know More?

•YoucanlearnmoreaboutTysonFoods,itshistory,anditsoperationsintheTysonFactBook,whichisavailablebyclickingonhttp://ir.tyson.com.

•LearnmoreaboutourmajorshareholdersinourproxystatementavailablethroughourInvestorRelationsWebsiteathttp://ir.tyson.com.

•IfyouareinterestedinTysonFoods’financialperformance,weinviteyoutoreviewour2009AnnualReportonForm10-KavailablethroughourInvestorRelationsWebsiteathttp://ir.tyson.com.


Consumer Products

TheTyson®brandisoneofthemostrecognizedbrandsintheUnitedStatesretailchannel,includingallmajorgrocerychains,wholesaleclubstores,supercenters,regionalchains,dollarstores,conveniencestores,anddrugstorechains.Wesellhundredsofdifferentproductsinthischannelincluding,butnotlimitedto,case-readyfreshchicken,beef,andpork;individuallyquickfrozenchicken;chickennuggets,stripsandpatties;bacon;anddelimeats.InadditiontotheTysonbrand,wehaveseveralotherstrongbrandsforbaconanddelimeatsbusinessesincludingWright®Brand,Corn King®,Russer®,andWilson™brands.Wealsomanufactureproductsforourleadingcustomers’in-houseandprivate-labelbrands.

Foodservice

TysonFoodsistheleadingproteinprovidertoallmajornationalrestaurantchains,includingquickservice,casual,mid-scale,andfinedining.Wealsosupplytheleadingbroadlinedistributorsandon-sitefoodservicevenues,includinghospitals,schoolcafeterias,andmilitarycommissaries.Inadditiontobeingaprimarysupplierforfoodservicechicken,wearetheleadingsupplierofpizzacrusts,pepperoni,sausage,andbeeftoppingstonationalpizzachainsandretailfrozenpizzamanufacturers.Wearealsoaleaderinsoups,sauces,andsidedishes,andwearethesecondlargesttortillamanufacturerintheU.S.

International

Inadditiontocommodityexports,wehavebrandedinternationalproductsdevelopedforthetastesandlifestylesofthelocalconsumers.Thecompanymadeseveralacquisitionsandjointventuresinkeylocationsthatoffertherightclimateforpoultryproduction,alargepopulation,amplelaborforce,accesstocornandsoybeanmeal,andacost-of-productionadvantage.Thesemarketsalsofeatureastrongemergingmiddleclass.Astheirincomesrise,oneofthefirstlifestylechangespeoplemakeistoaddproteintotheirdiets.

2.1 our CustoMers and ConsuMersWearededicatedtodevelopingabest-in-class,value-addedproductportfoliothatmeetstheneedsofourcustomersandconsumers.Wearewellpositionedtoprovidetheproductspeoplewant,fromthemostbasiccutsofmeattofully-preparedmeals.Moreover,wearetheonlycompanysellingchicken,beef,andporkthroughallmajordistributionchannelsincludingconsumerproducts,foodservice,andinternational.


Chicken

TysonFoods’poultrybusinessisverticallyintegrated.Verticalintegrationallowsthecompanytooverseeeveryaspectofproductionandproductqualityfromtheeggtothefinishedproductonaconsumer’splate.Inshort,therearesevenstagesinvolvedingettingchickentotheconsumer,includingbreederflock,pulletfarm,breederhouse,hatchery,broilerfarm,processingandfurtherprocessing,anddistribution.

Theprocessbeginswiththegrandparentbreederflocks.Thebreederflocksareraisedtomaturityingrandparentgrowingandlayingfarmswherefertileeggsareproduced.Pulletshatchfromthefertileeggsandarethensenttobreederhouses.Thepulletsproducefertileeggsthataresenttohatcheries.

Shortlyaftertheeggshatch,thechicksaresenttobroilerfarms,nearlyallofwhichareownedandoperatedbyindependentproducers.TysonFoodscontractswithmorethan6,000independentproducers,whocareforandraisethechicksaccordingtocompanystandards.Wealsoownasmallnumberofcompanychickenfarms.Whenthebroilersreachthedesiredprocessingweight,theyarecaughtandtakentooneofthecompany’s63chickenprocessingplants.

Attheplant,thechickensareprocessedtomeetthespecificrequirementsofthecustomer,whichcanrangefromabasicrawcommoditytoafullycooked,value-addedproduct.Finishedchickenproductsaresenttodistributioncentersandthentransportedtocustomerswhosellthechickentoconsumers.

Asaverticallyintegratedpoultrycompany,TysonFoodsalsooperatesfeedmillstoproducenutritionallyformulatedfeedsforitsbreedersandbroilers.Cornandsoybeanmealremainmajorproductioncostsinthepoultryindustry,representingroughly45percentofourcostofgrowingalivechickeninfiscalyear2009.

Withanaverageweeklyproductionof41.4millionchickensduringfiscalyear2009,TysonFoodsrepresentsapproximately20percentofchickenproductionintheUnitedStates.Domesticandinternationalchickensalestotaledapproximately$9.7billionand$1.6billionrespectivelyinfiscalyear2009.

2.2 a diversiFied business ModelTysonFoods’businessmodelisdiversifiedacrossthethreeleadingproteins(chicken,beef,andpork),majordistributionchannels,producttypes,andgeographiesofproduction.Thisdiversificationhelpsmitigatechangesinmarketfundamentalsaffectingsegmentperformanceineachprotein.Weoperatefourmainbusinesssegments,includingchicken,beef,pork,andpreparedfoods.


Beef

Unlikeourverticallyintegratedpoultrybusiness,TysonFoodsbuyscattleontheopenmarket.TheUnitedStates’cattleindustryiscomposedofmorethanonemillionindividualfarmsandranches.Eachyear,cattleproducersmarketapproximately35millioncattlethatareeventuallyharvestedforfood.Therearefourprimarystagesincattleandbeefproductionincludingcow-calfoperation,stockeroperation,feedlotoperation,andpacker-processor.Theprocessbeginswiththecow-calfoperatorandfinisheswithapacker-processorsuchasTysonFoods.

TysonFoodshasenteredintovariousrisk-sharingandprocurementarrangementswithproducersthathelpsecureasupplyoflivestockfordailystart-upoperationsatthefacilities.Thecompanyacquirescattlethroughdirectlynegotiatedpurchaseswithfeedlotproducersthroughavarietyofmethods.Themethodsincludetheopenspotmarket;formulapricing(areportedpriceplussomeamount);andfixedpricetiedtoafuturesmarket.Thecompany’sbuyerspurchasecattleonadailybasis,generallyafewdaysbeforetheanimalsarerequiredforprocessing.LiveanimalsaregenerallyheldinholdingpensatoneofTysonFoods’12beefprocessingfacilitiesforonlyafewhours.

Withamarketweightof1,250poundsandayieldof62.2percent,thetypicalsteerwillproducea777-poundcarcass.Thecarcasswillyieldapproximately620poundsofmeatandtrim;160poundsoffat,bone,andloss;and30poundsofvarietymeats.

TysonFoods’beefproductionduringfiscalyear2009averaged139,400headperweek.Thecompanyrepresentsapproximately22percentoftheUnitedStates’beefproduction.Thecompany’sdomesticandinternationalbeefsalestotaledapproximately$10.8billionand$1.1billionrespectivelyinfiscalyear2009.


Pork

Therearefourprimarystagesinhogandporkproduction,includingsow-farrowingbarns,nurseries,finishingfarms,andpacker-processor.Thegestationperiodforhogsisapproximately114days.Farrowingsrangefromsixto13pigsperlitter,withtheaveragebeingabout10.Thenumberofpigsweanedaverages8.7pigsperlitter.Pigsaregenerallyweanedatthreetofourweekswhentheyweigh10to15pounds.Atthistime,theyaremovedtoeitheranursery,agrower,ordirectlytoafinishingbuildingmodifiedtomeettheneedsofyoungpigs.

Whenpigsreachapproximately270pounds,producerssellthemoneitheralive-weightorcarcass-weightbasistolivestockexchanges,producer-ownedmarketingnetworks,ordirectlytopackerssuchasTysonFoods.Oncethehogsareslaughtered,thefurther-processedcarcassesaresoldasboxedporktopurveyorswhofabricatetheboxedporkintocutssoldtoconsumersatretailandinfoodserviceoperations.TysonFoods,however,addsvaluetoporkbyproducingbranded,case-readyporkaswellasfullycookedporkitemsrequiringlesslaboronthepartofthecustomer.

TysonFoodsacquireshogsthroughdirectly negotiatedpurchaseswithproducersusingavarietyofmethods.Thefourprimarymethodsareformula(areportedpriceplussomeamount),thespotmarket,fixedpricetiedtofeed,andfixedpricetiedtoafuturesmarket.Hogsarepurchasedonadailybasis,generallyafewdaysbeforetheanimalsarerequiredfor processing. With a market weight of270 poundsandayieldof 75.5 percent,the typical hog will produce a 200-poundcarcass.Thecarcasswillyield about151poundsofporkand49poundsofotherproducts.

Duringfiscalyear2009,withanaverageweeklyproductionof393,300head,TysonFoodsrepresentedapproximately18percentofporkproductionintheUnitedStates.Fiscalyear2009porksalestotaledapproximately$3.4billiondomesticallyand$671millioninternationally.

Additionally,thePorkGroup,Inc.,awhollyownedsubsidiaryofTysonFoods,producesfinishedhogs,feederpigs,andweanedpigsforsaletoporkprocessorsandfinishersthroughoutthecountry.ThePorkGrouphasaninventoryofmorethan50,000sowsandhasatotalherdinventoryofmorethan230,000hogs.TysonFoods’equityownershipoflivehogoperationsrepresentslessthan1percentofthecompany’stotalporkproduction.


Prepared Foods

TysonFoods’productsarenotlimitedtomain-courseprotein.Asanexample,TysonFoodsisthelargestsupplierofpepperoniandpizzatoppingstothefoodserviceindustry.Inaddition,wearethesecondlargestmanufacturerofflourandcorntortillachipsintheUnitedStates.QuickserviceMexicanrestaurantchainsaretheprimaryoutletsforourtortillaproducts.

Inadditiontohigh-endculinaryproductssuchascrepes,blintzes,andstuffedchickenbreasts,wearetheleadingsupplierofbaconandhamstothefoodserviceindustry.Wealsoprovidecustomsoupsforcasualdiningchains,whichfreestheirskilledlabortoworkonothermenuitems.

Wemarketourpreparedfoodsproductstoretaildelis,foodservicedistributors,restaurantoperators,andon-sitefoodserviceestablishments,suchasschools,universities,corporatecafeterias,hotelchains,healthcarefacilities,andthemilitary.

Thecompany’sculinaryandcustomerdevelopmentteamsworkwithcustomersintheTysonDiscoveryCentertoproduceexcitingandnewpreparedfoodstobuildincrementalsales.Domesticandinternationalpreparedfoodsalestotaledapproximately$2.8billionand$65millionrespectivelyduringfiscalyear2009.

TysonFoodsalsoconsistsofanumberofcorporatefunctions,suchasQualityAssuranceandFoodSafety,Sales,Finance,Accounting,InternalAudit,HumanResources,ExternalRelations,Legal,InformationSystems,Marketing,Purchasing,ResearchandDevelopment,Environmental,HealthandSafety,andInvestorRelations.Intotal,thecompanyemploysapproximately117,000TeamMembersintheUnitedStatesandaroundtheworldwith:

•2009fiscalyearsalestotalingapproximately$26.7billion;

•A2009debttocapitalizationratioof45percent;

•Anetdebttocapitalizationratioof35percentforfiscalyear2009;and

•Assetstotalingapproximately$10.6billioninfiscalyear2009.


TysonFoodsisaninternationalfoodcompanywithmorethan400productionanddistributionfacilitiesandsalesoffices.WithintheUnitedStates,TysonFoodshasoperationsandofficesinAlabama,Arizona,Arkansas,California,Georgia,Hawaii,Illinois,Indiana,Iowa,Kansas,Kentucky,Maryland,Mississippi,Missouri,Nebraska,NewJersey,NewMexico,NewYork,NorthCarolina,Oklahoma,Pennsylvania,SouthCarolina,SouthDakota,Tennessee,Texas,Virginia,Washington,andWisconsin.

Moreover,eitherdirectlyorthroughitssubsidiaries,TysonFoodshasfacilitiesin,orparticipatesin,jointventureoperationslocatedinArgentina,Brazil,Canada,China,theDominicanRepublic,HongKong,India,Ireland,Italy,Japan,Mexico,theNetherlands,Peru,thePhilippines,Russia,SouthKorea,Spain,SriLanka,Taiwan,theUnitedArabEmirates,theUnitedKingdom,andVenezuela.

Aspartofongoingeffortstoimproveoperationalefficiency,TysonFoodsannouncedthe:

•RestructuringofitsEmporia,Kansas,beefprocessingfacilityinJanuary2008;

•ClosureofitsWilkesboro,NorthCarolina,cookedproductsplantinFebruary2008;

•ClosureofitsYork,Nebraska,PreparedFoodsfacilityinApril2008;

•AcquisitionofCentralIndustriespoultrybyproductsplantinDecember2008;

•ClosureofitsPoncaCity,Oklahoma,processedmeatsplantinMarch2009;

•SaleofitsLakesidebeefoperationinBrooks,Alberta,Canada,toXLFoods,Inc.,inMarch2009;and

•ReopeningandrenovatingofitsIndependence,Iowa,plantinOctober2009.

2.3 our oPerations


TysonFoodsismorethanjustagreatcompanytoworkfor.AtTysonFoods,“we strive to be a company of diverse people working together to produce food.”Additionally,westrivetobe“honorable people”andtobea“faith-friendly company.”

Ouremployees,whomwecallTeamMembers,areourmostvaluedresource.Theyenjoymanyrights,benefits,andresponsibilitiesatTysonFoods.Thisincludesbutisnotlimitedto:

•Asafeworkplace,

•Accesstoexistingstateandfederalbenefits,

•Freedomfromdiscriminationandretaliation,

•Compensationforworkperformed,and

•Therighttojointogetherforcollectivebargainingpurposes.

Theserights,benefits,andresponsibilitiesaredescribedindetailinourTeamMemberBillofRights,andcorrespondwith,orareinadditionto,allotherrightsprovidedbystateorfederallaw.CLICKHEREtoviewourTeamMemberBillofRights.

Werecognizeourcontinuedsuccessasanorganizationdependsontheknowledge,skills,andtalentsofourTeamMembers.Wehaveatraditionofbuildingleadershipfromwithin.Educationandadvancementopportunitiesareavailablefromentry-levelpositionstoseniormanagement,andweactivelyfosteranenvironmentwhereeveryonehasaccesstotheseopportunities.

Additionally,inclusionandvaluingdiversityarecornerstonesthathavesupportedthegrowthofourbusinessthroughoutitshistory.Ittakesthethoughts,backgrounds,andtalentsofour117,000TeamMemberstomakeourcompanysuccessful.Webelievethiscommitmentcontributestoacompetitiveadvantagethroughincreasedinnovation,improvedcustomerandinvestorconfidence,andattractionandretentionofoutstandingTeamMembers.

3.0 PeoPle


AtTysonFoods,webelieveethicalbusinessisgoodbusiness.EthicalbusinessiseverydaybusinessatTysonFoods.Afterall,thereisnorightwaytodothewrongthing.Westrivetoconductourbusinessinanethical,honestmannerandinfullcompliancewithallapplicablelawsandregulations.Webelieveintegrityisafundamentalelementinourrelationshipswithourmanystakeholders.Ourcommitmenttooperatingwithrespect,trust,accountability,andhonorismodeleddailybyourTeamMembers.

Core Values

TysonFoods’visionistobetheworld’sfirstchoiceforproteinsolutions,whilemaximizingshareholdervalue.OurCoreValuesarefundamentaltoourcompany.Theyshapeanddirectourstrategyandinspireusdaily.Theyareintegraltothewaywedobusiness.OurCoreValuesguideourrelationshipswithourTeamMembers,customersandconsumers,suppliers,andindependentproducers.Ourgoals,programs,andmetricsarederivedfromandsupportourCoreValues.

Code of Conduct

BasedonthefoundationofourCoreValues,TysonFoods’hasaCodeofConductthatappliestotheBoardofDirectors,allTeamMembers,businessdivisions,andsubsidiariesofTysonFoods.TheCodeofConductisawrittenguidelinethathelpsusmakegoodbusinessdecisions;it’sourguideto“DoingWhat’sRight.”

TheCodeofConductprovidesdirectiononhowwearetoconductourselveswithrespect

tokeybusinessrequirementssuchasfoodsafety,animalwell-being,regulatorycompliance,environmentalmanagement,conflictsofinterest,andinternationalbusinesspractices.InApril2008,wepublishedourrevisedInternationalCodeofConduct.Thisrevisiontothe2005versionincludedframingtheInternationalCodearoundourCoreValuesandmoreclearlyreflectingthekeyprinciplesweembracewithoutregard

togeographicallocation.

TysonFoods’GovernanceCommittee,chairedbyanindependentBoardmember,administersthecompany’sCodeofConduct.Thiscommitteereviewsandassessesthecompany’sCodeofConductandrecommendsproposedchangestotheBoardforapproval.TheGovernanceCommitteealsomeetswiththecompany’sEthicsandComplianceOfficer,andas

appropriate,reviewsandrespondstoconductorethicsissuesraisedbythisofficer.Periodically,thiscommitteereviewstheadequacyandimplementationofthecompany’sethicsandcomplianceprograms,andmakesrecommendsforanynecessarychanges.ToreviewTysonFoods’GovernanceCommitteeCharter,CLICKHERE.

It’sunderstoodthewrittenCodeofConductcannotprovideguidanceoneverysituationTeamMembersmayfaceduringtheirbusinessactivities.WhentheCodeofConductisnotenough,TeamMembersareencouragedto‘AskTysonFirst’byusingtheresourceslistedwithintheCodeofConduct.

Ethics Training

AllTysonFoodsTeamMembers,includingtheBoardofDirectors,attendapproximatelyonehourofEthicsandCodeofConducttrainingannually.ThistrainingprovidesinformationonvariousethicalscenariostoprovideTeamMembers“reallife”applicability.TeamMembersaretaughttomakegooddecisionswithintheframeworkof“DoingWhat’sRight.”Theyareinstructedtoaskthemselvesthefollowingquestionswhentheyareuncertainaboutthepropercourseofactioninadifficultsituation:

•DoesitcomplywithTysonFoods’CoreValues?

•Isittherightthingtodo?

•WereotherstreatedthewayIwanttobetreated?

•WouldTysonFoodsorIbeembarrassedifthisactionwerereportedinthenewspaper?

•Isitlegal?

3.1 etHiCs


Responding to Ethical Concerns

AtTysonFoods,wearecommittedtoprovidingvariousavenuesinwhichTeamMembersandotherstakeholderscanconfidentiallyandanonymouslyreportanysuspectedviolationsofthelaw,applicableregulations,companypolicies,ortheprovisionsoftheCodeofConduct.WeoffertheTysonHelpLineandtheTysonWebLine.TheseoptionsareprovidedtoupholdourcommitmenttoourCoreValuesandprotecttherightsof

TeamMembersthroughoutourorganization,withoutfearofretaliation.

•TheTysonHelpLineisaccessibletocallersthroughoutNorthandSouthAmericaandChina24-hoursaday,andoffersassistanceinmorethan150languages.

•TheTysonWebLineisanInternet-based reportingmechanismavailableinfive languagesandaccessibleworldwide.

Additionally,TysonFoods’HumanResourcesDepartmentofferslocal“opendoor”avenuestohelpTeamMembersresolveareasofdisputeandtoreportunethicalactivity.ShouldTeamMembershaveanyissues,weencouragethemto“TellTysonFirst”bycontactingtheirsupervisorsorHumanResourcesDepartment.Moreover,ifanyTeamMemberfeelsthatheorsheisbeingtreatedunfairlywithrespecttoanymatterorifheorshewishestoremainanonymous,theTysonHelpLineandTysonWebLinearealwaysavailable.

Wereviewallreportsandconcernsreceivedandinvestigateandrespondasappropriate.In2007,weimplementedanewcasemanagementtool.ThistoolallowsEthicsandCompliancepersonneltomoreaccuratelyaccessandanalyzereportedallegationsforthepurposesofinvestigation,follow-up,andenhancingreportingcapabilitiestobothseniormanagementandtheappropriateBoardCommittees.


Our Team Members

TysonFoodsemploysmorethan117,000peopleworldwide,with100,000TeamMembersworkinginourU.S.-basedoperationsand17,000atourInternationaloperations.Approximately99percentofourU.S.-basedTeamMembersserveinfull-timepositions.

WearecommittedtoprovidingagoodworkingenvironmentandtoretainingourTeamMembersthroughcompetitivewages,fairtreatment,training,benefits,andsafeworkingconditions.Thecompany’smanagement,managementsupport,andhourlyTeamMemberturnoverratewasmorethan30percentlowerinfiscalyear2009ascomparedtofiscalyear2008.Attheendoffiscalyear2009,over50percentofourU.S.-basedTeamMembershadfiveormoreyearsofservicewithTysonFoods,andwithin this group,approximately20percenthad20yearsormoreofservice.ThisimprovementinturnoverandthemanyyearsofTeamMembertenuredemonstratewearemakinggreatprogressinretainingatalentedworkforce.

Employment Practices

TysonFoods’employmentpracticesunderscoreourcommitmenttotreatourTeamMemberswithdignity.Wehavepoliciesthatensurepositiveemploymentpracticesareimplementedwhereverweoperate.Additionally,wecomplywithallapplicableemploymentandlaborlawsinthecountrieswherewedobusiness.We

provideanonymouschannelsthatcanbeusedtoreportpolicyviolations,andwefullyinvestigateallissuesraised.

Hiring the Best

Wemaintainarobustrecruitingprocess.Thisprocessnotonlyensuresourcompliancewithfederal,state,andlocalhiringpractices,italsoensureswearehiringTeamMemberswithskillsandexperiencethatalignwithboththecurrentandfutureneedsofourcompany.OurProfessionalRecruitmentDepartmentcollaborateswithhiringmanagerstodevelopproactivetalentmanagementplansforeachbusinessunit.Thisprovidesuswithacomprehensivetalentacquisitionplanandrecruitingstrategyforeachavailableposition.

Ifastudentorrecentcollegegraduateislookingforanexcitinginternshiporajumping-inpointforhisorhercareer,ourCollegeRelationsDepartmentcanhelphimorherfindafuture.ThemissionofourCollegeRelationsDepartmentistoforecasttheentry-levelneedsoftheorganizationandtoleverageourcollegerecruitingstrategiestosupportlocalareauniversities.Thefulfillmentofthismissioncreatesaqualifiedanddiversecandidatepoolthatwilldeliverentry-levelhirescompanywide.

Wealsounderstandtheimportanceofattractingandhiringtalentlocaltoouroperations.Weemploy117,000TeamMembersatmorethan400facilitiesandofficesintheUnitedStates

andaroundtheworld.ManyofourfacilitiesandofficesmaintainlocalhiringpracticesdesignedtoensuretheirTeamMemberandmanagementpositionsarepopulatedwithlocalresidents.Thispracticenotonlybenefitstheeconomyandcommunitieslocaltoourfacilities,butitalsoensuresourworkforceisrepresentativeofourcustomersandconsumers.

Employment Eligibility

WearecommittedtoensuringallofourhiringlocationsconsistentlyimplementandfollowourEmploymentEligibilityPolicy.ThispolicysetsforthguidelinesforallTysonFoods’locationsthatensurecompliancewiththeImmigrationReformandControlActof1986(IRCA)andFormI-9regulations.Wewillnottolerateanypersonknowinglyhiringorallowinganyonetocontinueworkingifheorsheisnotauthorizedforemployment.Accordingly,wehaveestablishedproceduresthatincludetraining,certification,recordkeeping,andthird-partyverificationtoensurecompliancewithallfederalandstatelawsregardingtheverificationofemploymentauthorization.

WealsovoluntarilyparticipateintheU.S.DepartmentofHomelandSecurity’sE-VerifyEmploymentEligibilityVerificationProgramandhavedonesosince1998.TheDepartmentofHomelandSecurityandtheSocialSecurityAdministration

3.2 reCogniZing an eXCePtional WorKForCeWearecommittedtoattracting,developing,andretainingagroupoftalentedTeamMembersandtocreatingaworkplacethatallowseachTeamMembertocontributetothecollectivesuccessofourcompany.Ourprogramsandinitiativesrelatedtoemploymentpractices,compensationandbenefits,talentmanagement,diversityandinclusion,andTeamMemberrelationsareimportanttofulfillingthiscommitment,especiallyintoday’schallengingeconomicclimate.TobeaninspirationtoourTeamMembersabouttheirwork,theircontributions,andtheircompanyisourpledge.


jointlyoperatethisprogram.Ourparticipationinthisprogramallowsustochecktheemploymenteligibilityofnewhiresonline.Throughthisprogram,weareabletoaccessandcompareinformationfromaTeamMember’sFormI-9withmorethan444millionrecordsintheSocialSecurityAdministrationdatabaseandmorethan60millionrecordsintheDepartmentofHomelandSecuritydatabases.WebelieveouruseofthisprogramhasbeeninstrumentalindeterminingtheemploymenteligibilityofourTeamMembers.

Equal Employment Opportunities

Wehaveacontinuingpolicytoensurefairandequalemploymentopportunitiesareextendedtoallpersonswithoutregardtorace,religion,color,sex(includingpregnancy),age,sexualorientation,nationalorigin,disability,andveteran’sstatusoranyotherprotectedstatusunderfederal,state,orlocallaw.Thispolicyappliestorecruitment,selection,placement,assignment,training,promotion,demotion,rateofpay,benefits,leaveofabsence,lay-off,termination,work-relatedsocial/recreationalprograms,andotherconditionsofemployment.

Harassment and Discrimination

Wemaintainastrictpolicyprohibitinganykindofunlawfulharassmentanddiscrimination,such

asthatinvolvingrace,sex,religion,color,age,nationalorigin,veteran’sordisabilitystatus,orsexualorientation.Thispolicyprohibitsharassmentanddiscriminationinanyform,includingverbal,written,visualorphysical.Werequire100percentofourTeamMembers,includingmanagementandnon-managementandsalariedandhourly,attendapproximatelyonehourofanti-harassmentandanti-discriminationtrainingannually.Moreover,weconsiderharassment,discrimination,andretaliationtobeseriousissuesandhaveinvestedconsiderableresourcestopreventtheiroccurrence.Wefullyinvestigateeachallegationofharassmentanddiscriminationandimplementcorrectiveactions,includingdisciplinaryaction,asappropriate.

Human Rights

TysonFoods’humanrightspracticesaregroundedinthecompany’sCoreValues,CodeofConduct,andTeamMemberBillofRights.Thesedocumentsoutlinethemanyrights,benefits,andresponsibilitiesenjoyedbytheTeamMembersofTysonFoods.Theserightsandbenefitsandresponsibilitiescorrespondwithorareinadditiontoallotherrightsprovidedbystateorfederallaw.Werequire100percentofourTeamMembers,includingtheBoardofDirectors,toattendapproximatelyonehourofethicsandCodeofConducttrainingannually.

WestrivetoprovideourTeamMembersasafeworkplace.WeensureTeamMembersreceivepaymentofwagesowedfortheworktheyperform.OurTeamMembershavearighttoretaintheirownsocial,economic,cultural,andpoliticalinstitutions.Moreover,wedonotemployanyoneunderthelegalageofemployment,andwedonottolerateforcedandcompulsorylabor.Toourknowledge,wedonothaveoperationsatriskforincidentsofchildlaborandforcedandcompulsorylabor,norhavewehaveincurredanyincidentsinwhichtherightsofindigenouspeoplewereviolated.

Labor Relations

PursuanttoourTeamMemberBillofRights,werespecteachTeamMember’slegalrighttoorganizewithoutfearofretaliation,repression,oranyotherformofdiscrimination.Toourknowledge,wedonothaveoperationsinwhichtherighttoexercisefreedomofassociationandcollectivebargainingareatrisk.

Approximately33,000TeamMembersintheU.S.and7,000TeamMembersinforeigncountriesaresubjecttocollectivebargainingagreementswithvariouslaborunions.Wearecommittedtogood-faithbargainingandtomeaningfulcommunicationwithourTeamMembersandtheirrepresentatives.Whensignificantoperationalchangesareimminent,wenotifyourTeamMembersasrequiredbythe


U.S.DepartmentofLaborWorkerAdjustmentandRetrainingNotificationAct(WARN);local,state,orcountry-specificlaws;oranyrequirementssetforthinrespectivecollectivebargainingagreements.

Compensation and Benefits

TysonFoodsbelievesinsharingitssuccesswithitsTeamMembers.Withthatphilosophy,weseektoprovidecompensationandbenefitsthatattract,retain,andmotivateourTeamMembers.Webelieveourcompensationandbenefitspackageisoneofthebestintheindustry.

Duringfiscalyear2009,wespentmorethan$3.5billiondollarsinsalariedandhourlycompensation,socialsecurityandMedicaretax,federalunemploymenttax,andstateunemploymenttaxforourfullandpart-timeU.S.basedTeamMembers.Additionally,TysonFoodshadbenefitscostsofapproximately$750millionforourU.S.-basedTeamMembersduringthisfiscalyear.Examplesofthesebenefitsinclude,butarenotlimitedto,healthcare,lifeinsurance,accidentaldeathanddismembermentinsurance,longtermdisability,stockmatch,and401(k)match.Belowwehighlightseveralkeyaspectsofourcompensationandbenefitspackage.

Compensation

Weemployfull-timeandpart-timehourlyandsalariedTeamMembers.ThemajorityofourTeamMemberscompensatedatanhourlyratesupportourcompanybypreparingfoodproductsinprocessingplants.TheseTeamMembersarecompensatedatoraboveU.S.minimumwagerequirements.

Toensureourcompensationpackageremainscompetitive,wemaintainaCompensationDepartment.Thisdepartmentconductswagesurveysandreviewscost-of-livingindicatorsandcommunitynormsregularly.Duringfiscalyear2009,ouraveragehourlyratewas$11.72perhour.Thisrateis61.86percenthigherthanthefederalminimumwage.

OurCompensationdepartmentalsoestablishesandmaintainscomprehensivesalaryprogramsandpolicies.Theseprogramsandpoliciesaredesignedtoattractandretainhigh-caliberpeople,stimulateandrewardhigh-levelperformance,andprovideflexibilitytofitindividualcircumstances.Additionally,ourCompensationdepartmentensuressalariespaidarecompetitivewiththosepaidbycomparablecompaniesforsimilarworkinthecommunityandintheindustry.

WealsomaintainaCompensationCommittee.Aspartofourgovernanceandoversightprocess,theCompensationCommitteereports

totheBoardofDirectors.TheCompensationCommitteesupportstheBoardofDirectorsandworkswithmanagementtoensurekeyexecutivesarecompensatedinaccordancewithourmanagementphilosophy,competitivepractice,andregulatoryrequirements.Thecommitteealsoreviews,providesadviceon,and,whereappropriate,approvescompensationobjectives,plans,andlevels.

Health Care

WearecommittedtopartneringwithourTeamMemberstohelpthembecomebetterhealthcareconsumers.Weprovideaffordablehealth,life,dental,vision,andprescriptiondrugbenefitstoourTeamMembersandtheirfamilies.WerequireallTeamMemberswhohavebeenemployedformorethanthreemonthstohavehealthcarecoveragethrougheitherthecompany-sponsoredhealthplanorthroughafamilymember’splan.Therefore,100percentofthecompany’seligibleTeamMembershaveaccesstohealthcarecoverage.

In2008,weexpandedourhealthcareprogramtoincludenumerousenhancementssuchasdiscountsondiabeticteststrips,genericmedicationincentives,andfreeonlinepersonal-healthriskassessments.WealsobeganofferingaTobaccoCessationProgramtoallinsuredTeamMembers,andtheircovereddependents18years-of-ageandolder.Thisprogramoffers


freepersonalphonecounseling,freeself-helpmaterials,informationaboutavailablecommunityprograms,andafreeeight-weeksupplyofnicotinereplacementtherapy.TeamMembersalsohaveaccesstoprescriptionmedicationsforsmokingcessationuponrequestfromtheirphysician.Morethan2,700TeamMembersandcovereddependentshavetakenadvantageofthisprogramalready.

In2008,webeganofferingaDiseaseManagementProgram.Thisprogramprovidesfree,comprehensivesupporttoeligibleTeamMembersandtheirinsureddependentsinmanagingseveralchronicdiseasessuchasdiabetes,asthma,congestiveheartfailure,coronaryarterydisease,andchronicobstructivepulmonarydisease.Thisprogramofferscustomizededucation,one-on-onediseasemanagementcounseling,advice,toolsformonitoringdiseaseconditions,andvariousothersupportservicesbasedontheparticularneedsofTeamMembersortheirdependents.

Retirement Savings

OurRetirementSavingsPlanhelpsourTeamMembersfulfilloneoftheirmostimportantgoals–financialsecurity.Inadditiontocompanymatchandpayrolldeductionfeatures,ourRetirementSavingsPlanofferseligibleTeamMembersauniqueopportunityto“design”theirownpersonalsavingsandinvestmentplanto

meetfuturelifestyleneedsandgoals.

TeamMembersaregiventheopportunitytodecidetheamountofmoneytheywanttocontributetotheplanthroughpayrolldeductionsona before-taxbasis,choosehowtheircontributionswillbeallocatedamongdifferentinvestmentfunds,andadjusttheirrateofcontributionandinvestmentmix,astheirfinancialsituationorsavingsgoalschangeinthefuture.Moreover,wealsooffer:

•Threeage-basedinvestmentfundsthatofferamoderate-riskportfolioappropriatetoanindividualTeamMember’sage;

•AnInvestForwardprogramthatautomaticallyplacesaTeamMemberintheappropriateage-basedfundandmanagesannualrebalancing;and

•GuidancePlus,anonlinetoolwhichhelpsTeamMemberssetretirementgoalsanddetermineiftheircontributionlevelissufficientformeetingthesegoals.

Stock Purchase Plan

WealsoofferourTeamMemberstheopportunitytobuyastakeinthefutureofourcompany.TheTysonStockPurchasePlanallowseligibleTeamMemberstocontributeupto20percentoftheirpaytopurchaseTysonFoodsstock.Afterayearofservice,thecompanywillmatchaportionoftheTeamMember’scontributions.


Chaplains Program

ChaplainshavebeenprovidingcompassionatepastoralcaretoourTeamMembersandtheirfamiliessinceOctober2000.Currently,120full-timeandpart-timechaplains,representing28differentfaithgroupaffiliations,supportthisprogram.Thisisaproactiveassistanceprogramwithaspiritualfoundation.TeamMemberstalkinconfidencewithourchaplainsaboutmanyissues,includinghealthconcerns,maritalandfamilyissues,griefanddeath,substanceabuse,andjobandfinancialconcerns.Ourchaplainsalsoprovidereferralsforpremaritalcounselingandweddings,andcelebratewithTeamMemberswhennewbabiesareborn.WebelievethisprogramprovidesanextralevelofcareforourTeamMembers.

Workforce Home Benefit Program

TysonFoodsmaintainstheWorkforceHomeBenefitprogramtoassisteligibleTeamMembersinbecominghomeowners.Theprogram

isoneofthelargestofitskindintheU.S.andenablesTeamMemberswhomeetprogram

qualificationstoobtainfinancialassistancewithclosingcostswhenbuyingahome.Italsoprovidesaccesstoexpertcounselingforthefuturehomeowners,aswellasflexibleandlow-down-paymentmortgageproducts.TohelpdefrayTeamMembers’out-of-pocketcostswhenbuyingahome,theprogramoffersaclosing-costassistancefundthatwillprovidesecondmortgagestoeligibleTeamMembers.Thefundwillprovideupto$3,000pereligibleTeamMember.Thesesecondmortgageswillbeforgivenoverfiveyears,providedtheTeamMembercontinuestoworkatTysonFoodsandcontinuestoownandoccupythehome.

Talent Management

TysonFoodshasatraditionofbuildingleadershipfromwithin.Werecognizetheimportanceofhavingbothstrongcurrentleadersandfuturebenchstrength.OurDiversityandLeadershipdepartmentandotherareasinHumanResourcesprovideseveralprogramsdesignedtoenhancebothpersonalandorganizationaleffectiveness.ThedepartmentsofferavarietyofservicesandprogramstohelpprepareourTeamMembersforthechallengestheywillfaceinguidingthecompanytosustainedprofitablegrowthandmarketleadership.

Job Skills and Leadership Training

WorkingforTysonFoodsoffersmorethanagreatjob.Educationalopportunitiesareavailablefromentry-levelpositionstoseniormanagement,andweactivelyfosteranenvironmentwhereeveryonehasaccesstotheseopportunities.ThetypeoftrainingandhoursoftrainingaTeamMembertakesvariesbasedonjobresponsibilities.ManyofourTeamMembersmustcompleteannual

regulatoryandcompany-mandatedcompliancetrainingrequirementssuchasthoserelatedtofoodsafety,environmentalprotection,animalwell-

being,transportationsafety,harassmentanddiscrimination,ethicalbusinessconduct,andworkplacesafety.

WealsoofferleadershiptrainingtoourTeamMembers.Forexample,inApril2007,welaunchedourSupervisorAwarenessTrainingSeries(SATS),anonline,frontlineleadershiptrainingprogramforsupervisors.Thisprogramcurrentlyoffers11trainingtopicsdesignedtoincreasetheawarenessandleadershipskillsofourfrontlinesupervisors.Thisincludestopicsrelatedto,butnotlimitedto,buildingtrust,dignityandrespect,sensitivitytraining,workers’compensation,safetyawareness,andimprovingretention.Todate,oursupervisorshave


completedjustover43,000SATScoursesandloggedalmost24,000hoursoftraining.Futurecourseswillinclude“HowtoImproveAttendance”and“TheABCs(AlwaysBeConsistent)ofSupervision.”

TysonFoods’LeadershipCollegeprovidescoursesfocusedonsevencoreleadershipcompetenciesdividedintothreelevelsofcomplexityincludingleadership,businessacumen,strategicagility,communication,buildingacultureofinclusion,developingselfandothers,andunderstandingTysonFoods.Certifiedfacilitatorsteacheachcourse.Duringfiscalyears2008and2009,3,245managementandmanagementsupportTeamMembersparticipatedintrainingprovidedbytheTysonFoodsLeadershipCollege.

OurEducationalAssistancePlanencouragesandenablesTeamMemberstoincreasetheirknowledgeandskillsandfurthertheireducation.Allfull-timeTeamMemberswhohavebeenemployedwithTysonFoodsforatleastoneyearareeligiblefortuition,books,andfeereimbursement.Thetuitionreimbursementportionoftheeducation-assistanceplanisdesignedtoencourageTeamMemberstoseekandachievedegreesfromaccreditedcollegesanduniversities,andtoencouragecareerdevelopmentthatmeetsthecurrentandfuturebusinessneedsofourcompany.Twohundredandninety-nineTeamMemberstookadvantage

ofthisprogramduringfiscalyear2008,and297duringfiscalyear2009.TysonFoods’overallinvestmentintheprogramduringthesetwoyearstotaled$1.3milliondollars.

WealsooffervocationaltrainingforTeamMemberswithspecificskillsortrades.Forexample,wemaintainaMaintenanceTrainingProgramdesignedtoincreasetheskillsofourMaintenanceTeamMembers.Overthecourseoftheprogram,TeamMemberscompleteacombinationofelectronicandwrittenmaterial,classroomandlabinstruction,andon-the-jobtraining.Theprogram,whichisfacilitatedintheplants,isdesignedforpayincreasestocorrespondtospecifictraininglevelsachieved.TeamMembersarerewardedfortheskillsthey’vegainedandencouragedtocontinuetoadvance.

Regular Performance and Career Development Reviews

AllofourmanagementandmanagementsupportTeamMembersparticipateinregularperformanceandcareerdevelopmentreviews.TheTysonEvaluationandMeasurementSystem(TEAMS)forsalaried,managementsupport,andmanagementsupporttechnicalTeamMembersalignsindividualperformancewithorganizationalgoals.TEAMSprovidesaconsistentapproachtodevelopmentalplanningandappraisalby:

•Clarifyingperformanceexpectations;

•Identifyingimprovementandgrowthopportunities;

•Encouragingbettercommunication,training,andsupportforimprovedperformance;and

•SettingeffectiveTeamMembergoalsthathelptoachieveorganizationobjectivesandthathelpdevelopskillsandabilitiestoaidincareergrowth.


Individual Development Plans

InadditiontotheTEAMSreviewprocess,weprovideTeamMemberswiththetrainingandresourcesneededtodevelopanIndividualDevelopmentPlan(IDP).IDPsareaTeamMember’sroadmaptoreachinghisorhercareerobjectives.TodevelopanIDP,TeamMembers:

•Seekoutfeedbackfromothers,suchasasupervisor,directreports,andpeers;

•Reviewfeedbackfromothersinordertoidentifydevelopmentalopportunities;

•Conductaself-assessmenttoidentifystrengths,weaknesses,interests,andvalues;

•Linktheirindividualdevelopmentneedsandopportunitiestobusinessstrategiesandgoals;and

•Developlong-termandshort-termcareerdevelopmentgoals,activities,andsuccesscriteria.

WhenaTeamMemberdevelopsanIDP,heorsheislookingtoimproveperformance,mastercompetenciesforpersonalandcareerdevelopment,orprepareforfutureopportunitiestotakeanotherpositionorincreaseresponsibilitywithinthecompany.

Job Rotation

Wealsoprovideastructuredapproachtojobrotations.FormaljobrotationsprovideTeamMemberswithexpandedexperience,enhancefunctionalskillsacrossourbusiness,andstrengthenourcultureoftalentdevelopment.Jobrotationsallowustocreatemovementwithinateam,breakingdownsilosandbringingnewscopeandperspectivestotheteam.Theyalsoallowustostaffopenpositionstomeetbothcurrentandfuturebusinessneedsandprovideapipelineofwell-roundedleadership.

Leaders Into Champions

LeadersIntoChampions(LINC)isanadvancedleadershipprogramatTysonFoodsdesignedtoempowerourhigh-potentialleadersasorganizationalandindustrychampionswhocontributesignificantlytotheperformanceandprofitabilityofthecompany.TheLINCprogramstructureiscenteredonengagement,empowerment,andgrowth.BusinessunitleadersnominateandselectTeamMemberstobeinvolvedinthetwo-yearLINCprogrambasedonaTeamMember’sperformance,influence,representation,andpotential.

Duringthefirstyear,LINCparticipantsworktounderstandtheirindividualpurpose,vision,andvaluesandalignthemwiththeneedsofTyson

Foods.Participantsincreasetheirself-awarenessandbuildrelationshipswithfellowTeamMembers,includingseniorleadersacrossthecompany.Lastly,participantscreatepersonaldevelopmentplansfocusingonimmediateareasofinfluencewithintheirteam,competencydevelopment,andshort-termcareergoals.

Intheirsecondyear,LINCparticipantsutilizethetoolsandresourcesgainedinyearoneandapplythemtoareal-world,business-focusedapplication,otherwiseknownasastretchassignment.ThestretchassignmentputsparticipantsoutsideoftheircomfortzonebybuildingnewrelationshipsacrossTysonFoodsandbygaininganewandbroaderunderstandingofourcompany.

Duringfiscalyear2009,wegraduatedourfirstLINCclassof21TeamMembersand,asofOctober2009,have38TeamMembersparticipatingintheLINCprogram.Webelievethisprogramwill:

•Ensurethestrengthofourseniorleadershippipelineandhelpprepareourleaderstoaddresscurrentandfuturechallengesandopportunities;

•Createorganizationalchampionswhoareempoweredtocreateacompetitiveadvantagewithinourculture;

•Expandthebreadthanddepthofourinfluenceandleadershipwithintheindustry;and


•Driveinnovation,createchange,andtransferorganizationalvalues.

Succession Planning

Successionplanningallowsustobuildaformalizedplantofillspecificrolesinanestablishedtimeframe.Throughthesuccessionplanningprocess,weidentifycriticaljobsbasedonbusinessstrategyandidentifyaslateofTeamMembercandidatescapableoffillingthesepositions.Thisprocessalsoallowsustoanalyzeourabilitytofillcriticalvacanciesfromwithinandidentifyareasthatarevulnerabletoturnover,retirement,orskillgaps.

Diversity and Inclusion

Wearecommittedtomaintainingaculturethatfostersinclusionanddiversity.WebelieveitistheuniqueideasandcontributionsofourTeamMembersthatdrivesourcontinuedbusinesssuccess.OurinclusionanddiversitypoliciesandpracticesarebuiltaroundthepremisethatallTeamMembersfeel:“AtTysonFoods,Ihavetheopportunitytobepartofawinningteam,andgrowpersonallyandprofessionally,whilebeingmyself.”

Wehavedevelopedandimplementedkeyactivitiessupportingourinclusionanddiversitybusinessstrategies.In2005,weestablishedanExecutiveDiversityBusinessCouncil.Composedofseniorlevelleaders,thiscouncildevelopsandleadsinitiativesthatfosterinclusionand

participationofallTeamMembers.TheprimaryareasoffocusforourExecutiveDiversityBusinessCouncilarebusinessresourcegroups;inclusionanddiversityeducationandcommunication;andTeamMemberengagement.

Business Resource Groups

WehaveestablishedfourBusinessResourceGroups(BRG)includingaWomen’sBRG;aMen’sBRG;aMulticulturalBRG;and,newforfiscalyear2009,aVeteransBRG.ThesegroupsfosterengagementandhelpourTeamMembersfeelmoreconnectedtoourcompany’soverallbusinessstrategy.EachBRGhasabusinessplanthatoutlinesinitiativesandeventsthatsupporttheirspecificaffinitynetwork,andthatalignwithourBRGPillarsofSuccess,whichincludeprofessionaldevelopment;businessdevelopment;communitydevelopment;andnetworking,retention,andengagement.

Inclusion and Diversity Education and Communication

AtTysonFoods,webelieveinclusionanddiversityareaboutmorethanaperson’soutwardappearance.Webelieveinclusionanddiversity

isabouttheindividualandcollectivethoughts,backgrounds,andtalentsofourTeamMembers.ThisbeliefdirectlysupportsourCoreValuesthatstate,“Westrivetobeacompanyofdiversepeopleworkingtogethertoproducefood.”Accordingly,welaunchedanextensiveinclusionanddiversitytrainingprograminAugust2005.

ThefirstphaseofthistrainingprogramincludedanexternallyfacilitatedprogramtitledManager’s Mindset/Managing Inclusion.AllofficersandcontractedTeamMembersattendedthisprogram.WearenowofferingthesecondphaseofthistraininginitiativewithaworkshoptitledPause-Engage-Expand-Reflect(PEER).PEERisaone-dayworkshopinwhichleaders:

•Pausefromtheirnormaldailyroutinestogainmorein-depthinsightsabouttheirexperiencesandtheexperiencesofothers;

•Engageinopen,honest,thoughtfuldialoguewithothers;

•Expandtheirviewsoftheworldandpeoplearoundthem;and

•Reflectuponhowtheycantakewhattheyhavelearnedaboutthemselvesbacktotheirjobsaswellastheireverydaylives.

Everyoneisuniqueanddifferent.Byrecognizingandrewardingeachperson’suniquecontributions,wecreatewinningteams.Toreinforcethismessage,weshareinformationalpaperswith


ourTeamMembersthatrecognizeculturalcelebrationsandhighlightimportantleaders,artists,andentertainersfromdiverseback-grounds.Developedonamonthlybasis,thesepaperssharethehistoryandimportanceofthesecelebrationsandculturalfiguresandcon-tributetoourTeamMembers’educationandawarenessofdiversity.

Team Member Engagement (Attraction – Retention – Recruitment)

Primarilyimplementedinourprocessingplants,thePipelineManagementProcess(PMP)providesasystematicprocessforidentifyingTeamMembers,fromfirst-levelsupervisorstouppermanagement,ascandidatesfordevelopmentalandadvancementopportunities.Wecurrentlyhavemorethan900TeamMembersidentifiedasPMPcandidateswhomaintainactionitemsthatprovideprofessionaldevelopmentplansdesignedtoincreasejobandmanagerialskills.

Supplier Diversity

Wealsoknowthathavingadiversegroupofsupplypartnersmakesgoodbusinesssense.Workingwithminority-ownedandwomen-ownedbusinessesiskeytohelpingusmeetourhighstandardsforqualityproductsandultimatelycreatesmorevalueforourshareholders.Wemaintainadiversegroupofsupplypartnersbecausewewantdiversitytobeanintegralpart

ofeveryaspectofourbusiness.Assuch,we:

•Activelylookforopportunitiestoincreaseourspendingwithcurrentdiversesuppliers,aswellasaddingnewdiversesupplierstooursupplybase.

•Partnerwithsupplierstoencouragediversityintheirsupplychain.

•IncludediversesuppliersinoursourcingopportunitiesaspartofourSourcingPolicyandProcedures.

•Maintainmembershipinandsupporteventshostedbyregionalandnationalminorityandwomen’sorganizationssuchastheNationalMinoritySupplierDevelopmentCouncil,theArkansas-MississippiMinoritySupplierDevelopmentCouncil,andtheWomen’sBusinessCouncil–SouthwestRegion.

•Continuetoparticipateindiversitytradeshowsandothernetworkingfunctions.

Inclusionanddiversityistheresultofaconsciousefforttoeliminatebarriersthatarepresentbecauseofournaturalhumandifferences.Byleveragingourdiverseheritages,wecanproduceabetterresultbecauseofourwillingnesstoacceptothersasequallyvaluableandimportant.AtTysonFoods,weaccomplishthisbyincreasingourawarenessabouthowourownthinking,actions,andbackgroundsimpactthosearoundus.Wecontinuetoeducateourleadersonhowtoeffectivelychampionandenergizeamulti-culturalworkforce.Webelievethiscommitmentcontributestoacompetitiveadvantagethroughincreasedinnovation,improvedcustomerandinvestorconfidence,andultimatelyattractingandretainingoutstandingTeamMembers.


TysonFoodspromotesaculturethatvaluesthehealthandsafetyofitsTeamMembers.Weviewworkplaceinjuriesandillnessesasunacceptable,andimprovingourhealthandsafetyperformanceisapriority.Wehavecreatedandimplementedprogramstoreducethefrequencyandseverityoftheseevents,andwereviewandmonitorourperformanceclosely.

OurCoreValuesstatewe“strive to provide a safe work environment for our Team Members,”andwearecommittedtomakingsuretheyreturnhometotheirfamiliesashealthyandsafeaswhentheycametowork.Additionally,weaspiretohavezeroinjuriesandillnesses,andareworkingtobuildanincident-freeculturethatisgroundedonthepremiseofeliminatingworkplacerisksandhazardsandcontinualimprovement.OurEnvironmental,Health,andSafetyPolicyisavailableforreviewatwww.tyson.com.

Management System Approach

AsofDecember2008,allTysonFoods’facilitiesintheUnitedStatesandMexicohaveimplementedEnvironmental,Health,andSafety(EHS)ManagementSystems.ThehealthandsafetyaspectofthissystemfulfillstherequirementssetforthinOccupationalHealthandSafetyAssessmentSeries(OHSAS)18001,whichisaninternationaloccupationalhealthandsafetymanagementsystemspecification.Assuch,eachfacilityhasdevelopedandimplementedproceduresandcontrolsregardinghealthandsafety:

•Communication;

•Correctiveandpreventativeaction;

•Compliancemanagement;

•Hazardidentification,assessment,andcontrol;

•Documentandrecordcontrol;

•Emergencypreparednessandresponse;

•Training,awareness,andcompetency;and

•Performancereview.

Ourimplementationofthissystematicapproachtohealthandsafetyisvoluntary,andrepresentsasignificantadvancementfromcurrentindustrypractices.WebelievetheimplementationofthissystemdemonstratesourcommitmenttothehealthandsafetyofourTeamMembersandtothecontinualimprovementourhealthandsafetyperformance.

Allofourcollectivebargainingagreementscontainprovisionsrelatedtoworkplacehealthandsafety.Theyspelloutourcommitmenttobeingincompliancewithallapplicablefederal,

state,andlocalregulationspertainingtoworkerhealthandsafetyincluding,butnotlimitedto,personalprotectiveequipment,hazardousmaterialhandling,training,reportingunsafeconditions,andworkplaceinjuriesandillnesses.Additionally,manyofourlocationsareequippedtoprovidefirstaidandaccesstomedicaltreatmentbyatrainedstaffofoccupationalhealthcareproviders.

Health and Safety Programs

MembersofourEHSdepartmentdevelopandadministerourworkplacehealthandsafetyprograms.Thisteamincludes,butisnotlimitedto,occupationalsafety,industrialhygiene,healthcare,ergonomic,processsafety,lossprevention,andtransportationsafetyprofessionalsservinginkeyrolesatboththecorporateandprocessing-plantlevels.Workingincollaborationwithourprocessingplants,thisteamdevelopsandimplementsprogramsto:

•ProtectthehealthandsafetyofourTeamMembers;

•Identifyandeliminateorcontrolwork-relatedhazards;

•EducateTeamMembersoninjuryandillnesspreventionandhazardrecognition;

•Complywithallhealthandsafetylawsandrequirementsapplicabletoouroperations;

•Minimizeorpreventpropertydamageorloss;

•Respondtoandinvestigateinjuries,illnesses,andotherincidents;

•Treatandmanagework-relatedandnonwork-relatedinjuriesandillnesses;

3.3 ensuring tHe HealtH and saFety oF our teaM MeMbers


•Assessaprocessingplant’shealthandsafetyperformance;

•Minimizeergonomic-relatedriskfactors;and

•CreateandcommunicatesolutionsforpreventingandmitigatinglossesrelatedtotheoperationofCommercialMotorVehicles.

TeamMembersthroughoutourcompanyworkdirectlywiththeirplants’managementteamtoidentifyandeliminateworkplacehealthandsafetyhazards.Throughformalsafetyandergonomiccommittees,managementandnon-managementTeamMemberspartnerandmeetregularlytocontinuallyimprovetheirplants’healthandsafetyperformancethroughkeyactivitiessuchaseducation,inspections,andinvestigations.Attheendoffiscalyear2009,approximately3,000(lessthan25percent)ofourmanagementandnon-managementTeamMembersservedonsafetyandergonomiccommittees.

Team Member Health and Safety Training

Ourabilitytoprovideasafeworkplaceisdirectlyrelatedtotheknowledge,skills,andexperienceofourTeamMembers.Tothisend,wehaveimplementedarobusthealthandsafetytrainingprogramthatensuresourTeamMembershaveaclearunderstandingoftheirhealthandsafetyrolesandresponsibilities.

NewTeamMembersreceiveawareness-leveltrainingregardingthehealthandsafetyhazardsandproceduresapplicabletomostjobsandworkareasintheirfacility.Approximately30healthandsafetytopicsarediscussedduringthistraining.Thisincludes,butisnotlimitedto,safeequipmentpractices,personalprotectiveequipment,emergencyactionandresponse,

hearingconservation,ergonomics,andelectricalsafeworkpractices.

TeamMembersreceiveregularhealthandsafetytrainingthroughouttheircareerwithTysonFoods.Throughsite-specificmanagementsystems,ourfacilityhealthandsafetyprofessionalsidentifyanddocumentthejob-specifichealthandsafetytrainingrequirementsforeachjobclassificationattheirfacilities.Theyalsoidentifyhowthistrainingwillbeperformedandwhoisresponsiblefordeliveringthistraining.Facilitiesuseacombinationoftrainingstylestofulfilljobspecifictrainingrequirements,includingon-the-jobtraining,web-basedtraining,self-studytrainingcourses,internalandexternalinstructor-ledtraining,andothertrainingmethodsasneeded.

Health and Safety Audits

Ourhealthandsafetyauditprocessisanessentialcomponentofresponsiblebusinesspracticeandcontinualimprovement.Facility-ledauditsarerelativelyinformalandinvolvefacilitymanagementteamsconductingroutinecheckstoensurehealthandsafetyprogramelementsandstandardsarebeingfulfilled.Specifically,facility-ledhealthandsafetyaudits:

•Providefortheearlyrecognitionandmanagementofhazards;

•Buildafacility’sconfidenceintheircompliance;and

•IncreaseourTeamMembers’healthandsafetyawareness.

Corporateprofessionalsconductcomplianceauditsateachmajorfacilityannually.Infiscalyears2008and2009,theseprofessionalsconductedmorethan370facilitysafetyaudits.

Theseauditsfocusonafacility’simplementationandconformancewithcompanystandardsandapplicablehealthandsafetyregulatoryrequirementsandinclude,butarenotlimitedto,programandpermitcompliancerequirementreviews,facilitywalk-aroundinspections,recordkeepinganddocumentationreviews,andevaluationsofdataandreportsfortrendingandperformanceindications.

OurEnvironmental,Health,andSafetyAuditManagerperformsqualityassuranceaudits.Theseauditsevaluatetheeffectivenessoffacility-ledandcorporate-ledaudits.Theyalsoensurecorporateprogramgoalsarebeingmet,andassurethevalueandintegrityofthecompany’shealthandsafetyauditprocess.Eightqualityassuranceauditsareconductedannually.Theauditmanagerperformstheseauditsatrandomprocessingfacilities.

Promoting Health and Wellness

Wehavealong-standingcommitmenttothehealthandwell-beingofourTeamMembersandtheirfamilies.WerecognizeourTeamMembersperformtheirbestwhentheyfeeltheirbest,andweencourageourTeamMemberstounderstandhealthrisksandtakeanactiveroleinensuringtheirhealthandwellness.

WemaintainanOccupationalHealthServicesprogramoriginallyformedin1977.Thisprogramprovidesqualifiedhealth-careprofessionalsforthemanagement


ofwork-relatedinjuriesandillnesses.TheprogramhasexpandedovertheyearsandnowoffersTeamMembersnumeroushealthprogramsandservicesrangingfrominformationrelatedtodiet,nutrition,andcommunicablediseasestoon-sitehealthscreeningsandinfluenzavaccines.Forexample,inOctober2009,morethan450TeamMembersatourSpringdale,Arkansas,corporateofficesparticipatedinourannualhealthfair.Thehealthandwellnessinformationprovidedatthehealthfairhelpstoinform,educate,andempowerourTeamMemberstoadopthealthierlifestylebehaviors.TeamMembersassociatedwiththemanagementofourOccupationalHealthServicesprogramarecommittedtoreducingworkplaceinjuriesandillnessesandtomaintainingandpromotingthehealthandwell-beingofourTeamMembers.

OurOccupationalHealthServicesengageswithgovernmentandnon-governmentorganizationsaswellashealthcareproviderstoremaininformedofoccupationalandnon-occupationalhealthissuesandtrends.Asanexample,ourOccupationalHealthServicesTeamhasbeeninstrumentalindevelopingourcompany’sPandemicPreparationandResponsePlanandourcommunicationeffortswithTeamMembersregardingInfluenzaA(H1N1).FormerlyknownasNorthAmericanandSwineFlu,thisinfluenzastrainemergedinthespringof2009.Todate,afewTeamMembercasesofInfluenzaA(H1N1)havebeenconfirmedatTysonlocations.Whilelocalmanagementteamsandhealthservicesdepartmentsmanagedthesesituationsproactivelyandaggressively,itremindedusoftheimportanceofcommunicatingwithourTeamMembersaboutpracticingcommon-

sense,practicalguidelinesforprotectingtheirhealthandwell-being.Assuch,ourOccupationalHealthServicesteamlaunchedanextensivecommunicationprogramtoensureourTeamMembersknewhowtoprotectthemselvesandtheirfamiliesfromtheInfluenzaA(H1N1)virusaswellasseasonalinfluenza.WiththeassistanceofourOccupationalHealthServicesteamandvariousoutsideagencies,weadministered12,180seasonalinfluenzavaccinestoourTeamMembersintheU.S.duringthe2008and2009fluseasons.

Improving Fleet Safety

Weremaincommittedtosystematicallyenhancingthecompliantandsafeoperationofourcommercialmotorvehicles(CMV),andtomitigatingthepotentialrisksassociatedwiththeiroperation.Asageographicallydiverseorganizationwithfleetactivitiestakingplaceatalmosteverycompanylocation,webelieveestablishingclearandaccessibledirectionandexpectationsforoperationsmanagementisessential.Ensuringourdriversandtheirmanagersknowwhattodoandhowtodoitsafelyandincomplianceisakeyelementtoourtransportationcomplianceandsafetyefforts.

Duringfiscalyear2008,wecompletedthedevelopmentandimplementationofacomprehensivesetofoperationalstandardsthatidentifyspecificresponsibilitiesandrequirementsforachievingCMVcomplianceandsafety.Thesestandardsaddresskeytopicssuchashoursofservice,crashreporting,

regulateddrugandalcoholtesting,driverqualifications,inspections,maintenance,andrepairs.Facilitymanagersareresponsibleforimplementingtherequirementsofthestandardsandforverifyingcompliance.Additionally,duringthissametimeframe,wedevelopedandimplementedtheTysonFoodsCMVDriverSafetyManual.ThemanualisaconcisesetofrequirementsandresponsibilitiesidentifyingonlywhateachdrivermustknowaboutTysonFoods’CMVsafetyandcomplianceexpectations.

ThefinalstepinCMVsafetyexcellenceisaccountability.Ouroperationalstandardscontainarequiredself-auditprocessthatincludesareviewofeachregulatoryandlosspreventionrequirement.Wealsomaintainanassessmentprogramthatconsistsofon-siteassessmentsconductedbycorporate-basedtransportationsafetyspecialists.Theseassessmentsreviewafacility’scompliancewithfederal,state,andlocalregulationsandcompanypolicies,aswellasdriverperformance.Ifanon-conformanceisidentified,ananalysisisconductedtodeterminethereasonforthenon-conformance,andfacilitiesarerequiredtotakeactiontocorrectnon-conformances.

OursystematicapproachtoCMVcomplianceandsafetyrepresentsasignificantshiftfromstandardindustrypractice.WebelieveprovidingresourcesanddirectionforourmanagersintheformofoperationalstandardsandconciseinformationdriversneedtoknowhasresultedinaneffectiveCMVlosspreventionandcomplianceprogram.Forexample,wehavereducedvehiclerolloversby36percentsincefiscalyear2007.Wealsobelievethisapproachestablishesagatewayforcontinualimprovement.Wearemoreeffectiveatidentifyingtrendsand


thenimplementingprocesscontrolsthattargetissuestobemanagedoreliminated.

Ergonomics

Forwelloveradecade,wehaveemployedvariousergonomicprogramsandstrategiestohelpcreateaworkenvironmentthatminimizesTeamMemberexposuretomusculoskeletalriskfactorswiththepotentialtoaffectbodypartssuchashands,wrists,elbows,shoulders,andtheneckandback.Inshort,westrivetomakework“easier”forourTeamMembersbydesigningworkrequirementsthatfitthejobtotheTeamMember,nottheTeamMembertothejob.

Assuch,wemaintainaveryaggressiveapproachtoergonomics.Werequireourfacilitymanagementteamstoestablishthefoundationalsupporttheirsite-specificergonomicsprogramrequires.Thisincludesprovidingforawrittenergonomicprogram,properlyallocatedresources,anestablishedchain-of-command,anddefinedrolesandresponsibilities.Wealsomaintainanextensiveergonomictrainingprogramthatdeliverskeyergonomicconceptsandtoolstomanagement,ergonomicprogrammanagersandteams,supervisors,hourlyTeamMembers,andtechnicalsupportTeamMembers,suchasengineersandhealthcareprofessionals.

Ourfacilitiesuseanergonomicassessmenttooltoidentify,quantify,andprioritizeergonomicriskfactorsintheworkplace.Thisassessmentconsidershealthindicatorssuchasinjuryanddiscomfortreportsandoperationalindicatorssuchasproductivityproblemsandabsenteeism.FacilitymanagementteamsandhourlyTeamMembersthencollaboratetodevelopandimplementengineering,administrative,andwork-practicesolutionstocontroltheseriskfactors.

OurergonomicapproachalsoreliesheavilyuponTeamMemberparticipation.WebelieveourTeamMembersarecriticaltothesuccessofourergonomicapproach.Theirfeedbackisencouragedduringallaspectsofworksiteanalysis,hazardprevention,control,andevaluationofeffectivenessofcorrectiveactions,andisusedtoidentifyadditionaljobsorareasofconcern.

Toensureourergonomicapproachiseffective,facilitymanagementteamsconductannualprogramreviews.Thesereviewsevaluateprogramsuccessesandidentifyopportunitiesforenhancement.Theycommonlyfocusoninjury-illnessratesandseverityrates;averagelostdayspercase;averagerestricteddayspercase;workers’compensationcosts;percentofergonomicsclaimsversustotalnumberofclaims;averageworkers’compensationcostperergonomicclaim;andabsenteerateandturnover.

Asnotedabove,wemaintainanergonomicapproachthatmakeswork“easier”forourTeamMembers.WebelievethisapproachhelpsourTeamMembersfocusonqualitywork;drivesprocessimprovementandincreasedproductivity;reducestheriskfactorsthatcouldcausemusculoskeletaldisorders,aswellasreducesthenumberofmusculoskeletaldisorders;andimprovestheoverallqualityoftheworkenvironmentforourTeamMembers.

Our Health and Safety Performance

WemeasureourhealthandsafetyperformanceusingtheOccupationalSafetyandHealthAdministration’s(OSHA)incidentcalculationsforLostTimeIncidentRate,TotalRecordableIncidentRate,andDaysAway,Restricted,andTransferRate.Wealsoscoreourhealthandsafetyperformance.Introducedinfiscalyear2006,thisprocess,knownasourSafetyMetricScore,notonlyanalyzesthehistoricalcostsassociatedwithinjuriesandillnesses,butalsoplacesgreateremphasisontheirfrequencyandseverity.Duringfiscalyear2009,thecompanyreduceditsTotalRecordableIncidentRateby19.2percentanditsDaysAway,Restricted,andTransferRateby20.7percent.Inaddition,weimprovedoursafetymetricscoreby14percentduringfiscalyear2009.

1.Inour2007SustainabilityReport,wereportedLostTimeRate,TotalRecordableIncidentRate,andDays,Away,Restricted,andTransferRateas1.18,12.95,and8.88respectivelyforfiscalyear2007.TheserateswerecalculatedbaseduponamanualOSHA300Logdocumentationprocess.In2007,weimplementedacomputerizedOccupationalHealthandSafetySystem.Assuch,ourfiscalyear2007LostTimeRate,TotalRecordableIncidentRate,andDays,Away,Restricted,andTransferRatearerestatedbelowtoaccuratelyreflectthedatareportedbythissystem.2.Numberofwork-relatedinjuryandillnessesthatresultinoneormoredaysawayfromworkper100TeamMembers.3.Numberofwork-relatedinjuryandillnessesper100TeamMembers.4.Numberofwork-relatedinjuriesandillnessesresultinginaTeamMembermissingwork,havingrestrictedworkactivity,orbeingtransferredfromtheirregularworkassignmentper100TeamMembers.5.Theformulacomponentsareweightedsuchthatworkers’compensationcostscontributes50percent,TotalRecordableIncidentRatecontributes10percent,andDaysAway,Restricted,andTransferRatecontributes40percenttothetotalsafetymetric.


Byplacinggreateremphasisonthefactorscontributingtotheserates,wehavebeenabletoidentifykeyopportunitiesforimprovingourhealthandsafetyperformanceonasite-specificbasis.Duringfiscalyear2009,weestablishedspecialemphasisteamstoconducton-sitereviewsat10facilitiesthatheldhigherthanaverageworkers’compensationcostsandinjuryandillnessrates.Theseteamscollaboratedwithfacilitymanagementtodeveloplong-termsite-specificactionplansdesignedtoreduceworkers’compensationclaimcosts,OSHAincidentrates,andsafetyscores.

Althoughimprovementshavebeenmade,werecognizework-relatedincidentscanstilloccur.Duringfiscalyears2008and2009,thecompanyexperiencedtwowork-relatedfatalities.Additionally,inJune2009,theU.S.DistrictCourtinArkansassentencedthecompanytopayacriminalfineforwillfullyviolatingworkersafetyregulationsthatledtoaTeamMember’sdeathin2003atourRiverValleyAnimalFoodplantinTexarkana,Arkansas.Wewereorderedtopay$500,000aswellasserveone-yearprobation.Weregrettheseunfortunateeventsandareworkingtopreventsimilarincidentsinthefuture.

Awards and Recognitions

Infiscalyear2008,weimplementedanewawardprocesstorecognizefacilitieswithoutstandinghealthandsafetyperformance.Webelievethisnewawardsprogramismoremeaningful,efficient,andcosteffective.Historically,ourinjuryandillnessrateshavebeenabovetheBureauofLaborStatistics(BLS)industryrate.Accordingly,weestablishedawardcriteriatobringawarenesstothisissue,todrivecontinualimprovement,andtorecognizethosefacilitiesthataremakingsignificantreductionsintheserates.Underthenewprocess,therearethreeawardopportunities:

•InjuryFreeWorkplaceAward–ThisawardisgiventofacilitieswithaSafetyMetricScoreofzeroforafiscalyear.

•PlatinumSafetyAward–ThisawardisgiventothefacilitywiththelowestSafetyMetricScorewithinoneofninegivencategories.

•GoldSafetyAward–Thisawardisgiventoanyfacilitymeetingorexceedingthefollowing:

•SafetyMetricScorebelow:

700forBeef&PorkSlaughtering andProcessing;

300forPoultrySlaughteringand Processing;

250forMeatProcessing;

250forRendering;

250forSmallProductionOperations;

ATotalOSHARecordableRatewhichis 25percentbelowtheBLSindustryrate; and

ADaysAwayRestrictedTransferRate whichis25percentbelowtheBLS industryrate.

Duringfiscalyear2008,weawarded40facilitiestheInjuryFreeWorkplaceAward,ninethePlatinumSafetyAward,and15facilitiestheGoldSafetyAward.Infiscalyear2009,49facilitiesreceivedInjuryFreeWorkplaceAward,ninethePlatinumSafetyAward,and17receivedtheGoldSafetyAward.

Inadditiontoournewawardprocess,wecontinuetoencourageourfacilitiestoapplyforfederal,state,andlocalsafetyawardsaswellasawardsfromtradeorganizations.Infiscalyear2008,12facilitiesreceivedCorporateSafetyAwardsfromtheNationalSafetyCounciloftheOzarks.Duringfiscalyears2008and2009,12facilitiesreceivedaWorkerSafetyRecognitionAwardfromtheAmericanMeatInstitute.


HungerreliefisTysonFoods’primaryphilanthropicfocus(hungerrelief.tyson.com).Since2000,wehavedonatedmorethan71millionpoundsofproteintofoodbanksandhungeragenciesacrosstheUnitedStates.

Inadditiontosignificantproductdonationstofoodbanks,TysonFoodspartnersnationallywithtwodomestichungerrelieforganizations:ShareOurStrength(strength.org)andFeedingAmerica(feedingamerica.org).InMay2006,TysonFoodspledgedtodonate10millionpoundsoffoodtoFeedingAmerica’s200memberfoodbanksoverathree-yearperiod.Wesurpassedourpledgeinhalfthetimeandwecontinuetodonatefoodtothisday.

Beyondourcorporatecontributionstoendhunger,ourTeamMembers,communities,customers,andsuppliersworktohaveameaningfulimpactonhungerintheUnitedStates.Belowareafewexamplesoftheseefforts.

•Powering the Spirit™ to End Childhood Hunger. In2006,TysonFoodscreatedabranded,internalfundraisingeffort,Powering the Spirit,inpartnershipwithShareOurStrengthtoengageTeamMembersinraisingfundsforhungerreliefintheirlocalcommunities.Theprogramhasthreecomponents:

oLocalfundraisingthroughcookingandgrillingevents;

oSalesofaspeciallyproducedTysonFoods’cookbookfeaturingrecipesfromthekitchensofTeamMembersnationwide;and

oAdonationof75percentoftheproceedsofthosefundraisingeffortstohungerreliefinthecommunitiesinwhichthemoneywasraised.

ThroughPowering the Spirit,ourTeamMembersraisednearly$400,000overthepastfouryears.Nearly400TysonFoods’TeamMembersparticipatedinthisprogramin2009.

•Teaming Up to Fight Hunger in Iowa.TysonFoods’TeamMembersfromallIowaplants,twoplantsinNebraska,andoneplantinIllinoisjoinedTysonFoods’corporatecommunityrelationsstaffin2007,2008and2009toraisefundsforIowacommunityagenciesduringtheDes Moines Register’sAnnualGreatBicycleRideAcrossIowa,RAGBRAI.Together,theyhaveraisedmorethan$80,805forchildhoodhungerreliefinthecommunitieswheremoneywasraised.Separately,theTysonFoods’WaterlooIowaComplexorganizedandheldthreetugof

warsinvolvingmorethan65teamsfromtheCedarValleycommunityraisingmorethan$34,000fortheNortheastIowaFoodBankandTheSalvationArmyoverthreeyearsforthisevent.

•Student Food Drive Program.InanefforttocreatethenextgenerationofhungerfightersintheU.S.,TysonFoodssponsoredapilotStudentFoodDriveprogramin18communitiesthroughout2007,2008,and2009.ConductedinpartnershipwithFeedingAmericafoodbanks,theprogramhelpedcollectmorethanthreemillionpoundsoffoodusinghighschoolstudentsinthosecommunities.Moreimportantly,itprovidedleadershiptrainingandanup-frontintroductiontotheissueofhungertotensofthousandsofpotentialnewstakeholdersinthefightagainsthunger.

•Building Hunger Awareness.AnothercriticalcomponentofTysonFoods’hungerreliefstrategyisuseofresourcestowardcreatingawarenessandengagementintheissueofhunger.Theseresourcesincludefood,money,transportationresources,volunteertime,andcommunityinfluence.

3.4 Hunger relieF


Forexample:

oTysonFoodshasalong-standing,valuedrelationshipwiththeLeagueofUnitedLatinAmericanCitizens(www.lulac.org),whichbroadenedinrecentyearstoincludeacollaborationaddressinghungerinwhichin-kinddonationsweremadeto15communitieswithsignificantHispanicpopulations.

oSince2003,TysonFoodshaspartneredwithHistoricallyBlackCollegesandUniversities(www.hbcu.com),makingfooddonationsincommunitiesinwhichFallFootballClassicsareplayed.Ourfiscalyear2008and2009communitiesincludedMemphis,Atlanta,Indianapolis,Orlando,andGreensboro,NorthCarolina.

oForfiveyears,TysonFoodshasworkedwithagroupofinfluentialbusinessleadersfromthenationalorganizationLiftUpAmerica(www.liftupamerica.org)tomakefooddonationsincitiesacrosstheU.S.Thecompanyteamedwithprofessionalandcollegeathleticteams,includingtheMiamiDolphins,KansasCityChiefs,PhoenixSuns,ClevelandIndians,DetroitLions,SanDiegoChargers,TexasLonghorns,andArkansasRazorbackstodistributefoodandcreateawarenessabouthungerintheircommunitiesin2008and2009.

oTysonFoodshasbeeninnovativeinitsuseofsocialmediaforcreatingawarenessaroundtheissueofhungerandthoseengagedinhungerrelief.Thecompany’shungerreliefWebsiteandblog(hungerrelief.tyson.com)beganpublishinginearly2008,shortlythereaftercomplementedbyawidelyfollowedTwitteraccount,andvideoandimagesharingonYouTubeandFlickr.ApostdescribinghungerintheSanFranciscoBayAreageneratedmorethan2,100comments.

oAnothercomponentofthehungerreliefeffortsincludestheTysonFoods’Hunger All-Stars®program,inwhichpeoplecontributingtothefightagainsthungerintheirowncommunitiesarerecognizedontheHungerReliefsite.Inthepasteighteenmonths,morethan85TysonFoods’Hunger All-Starshavebeenrecognizedonthesite.Eachmonth,thecompanydonatesatruck-loadoffoodtotheTysonFoods’Hunger All-StaroftheMonth.Therearesomeinspiringstoriesonthesite,includingoneofa13-year-oldinOklahomawhoraisedmorethan$20,000forhislocalfoodbank,andan85-year-oldwomaninWashington,D.C.,whohasrunafoodpantryformorethan40years.


Sustainable Steps toward Solutions to Hunger and Poverty.

AttheUnitedNationsMillenniumSummitinSeptember2000,189headsofstatecommittedtheirnationstoaglobalpartnershiptoreduceextremepovertyby2015throughaseriesofgoalsknownastheMillenniumDevelopmentGoals(MDG).Thesegoalsaddressextremepoverty,includingincomepoverty,hunger,disease,lackofadequateshelter,andexclusion.Moreover,thegoalspromotegenderequality,environmentalsustainability,andbasichumanrightsrelatedtohealth,education,shelter,andsecurity.CLICKHEREtolearnmoreabouttheMDG.

Theeighthgoalcallsforglobalpartnershipbetweenpublicandprivatesectorstoachievedevelopmentobjectivessetforth.Insupportofthisgoal,TysonFoodshascollaboratedwithMillenniumPromise,anonprofitorganizationsupportingtheachievementoftheMDG,tocreatesustainablefoodsystemsinSub-SaharanAfricathroughtechnicalphilanthropy.TysonFoodshasthetechnicalexpertisetobuildpoultryenterprisesand,byapplyingthe“teachamantofish”principle,theopportunitytoteachindividualsthetechnicalskillsneededtoprovideasustainablefoodandincomesource.

Totaketheseideasfromconcepttopractice,TysonissupportingaRwandan-basedcompany,IkiraroInvestments,inaprojectaimedateasingthehungerforthelocalpeopleofMusanzeinRwanda.WhileTysonFoodshasnofinancialinvestmentinIkiraroortheproject,itissupplyingtechnicalexpertiseinpoultryproductionandhusbandrytoenable

Rwandanstobecomemoreknowledgeableandself-sufficientintheproductionoffood.Thecompanybelieveseducationalinterventionisapractical,long-terminitiativetohelpeasethehungerconcernsevidentinRwanda.

Specifically,TysonFoodswillprovideperiodicvisitswithon-the-groundtechnicalexpertstothepeopleofMusanzetoteachthemhowtoraisepoultryandbuildasuccessfulpoultryenterprise.ThesebusinessesarenotandwillnotbeownedbyTysonFoods.Thegoalofthistechnicalphilanthropyistogivetheresidentsofthesevillagestheskillstoownandmanageapoultrybusiness.Additionally,wearehopefulthissustainabledevelopmentinitiativewillenablevillagesinSub-SaharanAfricatoimprovetheirincomethroughthesaleofeggsandmeat,aswellasdevelopaschoolmealprogramtoimprovenutritionbyincreasingchildren’sproteinconsumption.CLICKHEREtolearnmoreaboutMillenniumPromise.


Asacompanycommittedtocreatingvalueforourshareholders,ourcustomersandourpeople,wealsostrivetogivebacktothecommunitieswherewelive,workandsellourproducts.Withacorporatephilanthropicfocusofhungerrelief,TysonFoodshasbecometheleadingprivatesectormeatproteindonorintheUnitedStates,providingover9.5millionpoundsofproductsinboth2008and2009tofoodbanksandhungerrelieforganizations.

Additionally,ourcommunityoutreachdonationsinourareasofoperationsprovidemillionsofdollarsannuallytoahostofcauses.Forexample,weprovidedmorethan$1.4milliondollarsininstallmentcontributionsthroughoutourcommunitiesofoperationinfiscalyears2008and2009forvarious“bricksandmortar”buildingandrenovationcampaigns.Thesedonationsencompassedawidevarietyofprojects,includingneworrenovatedfacilitiesforchildrenandfamilyshelters,hospitals,libraries,communityparksandrecreationcenters,foodbanks,andastate-of-thearteventscenterinSiouxCity,Iowa.Our$1.4milliondollarcontributionsrepresentinstallmentpaymentsfornumerousmulti-yearpledges,alltotalingmorethan$6milliondollarsininvestmentsinthecommunitieswhereourTeamMembersliveandwork.

Combiningtheseproductandmonetarydonations,wedonatedover10percentofourcompany’spre-taxprofitsinfiscal2008,wellabovetheaverageforcorporategivinginAmerica.

Supporting Education

TysonFoodscaresabouteducationinourcommunitiesandacrossthecountry.Wesponsorandsupportnumerousprogramsandorganizationsdedicatedtoimprovingournation’seducationalsystems,suchasStudentsinFreeEnterprise,JuniorAchievement,HistoricallyBlackCollegesandUniversitiesClassicsponsorships,publiclibraryfunds,andmonetaryandin-kinddonationstosecondaryandpost-secondaryinstitutions.Wealsoprovidesupporttonumerousscholarshipfunds,includingnationalFutureFarmersofAmerica,LeagueofUnitedLatinAmericanCitizens,HispanicWomen’sOrganization,UnitedNegroCollegeFund,singleparentandindependentscholarshipassociations,anddonationstovariousuniversityscholarshipprograms.

Tyson Project A+™

ThroughtheTyson Project A+™program,schoolscanearnextramoney.Themoneymaybeusedinanywaytheschoolchooses.Parents,students,facultymembers,

andothersinthecommunityclipandsavelabelsfromTysonproductsfeaturingtheTysonProject A+logo.Thelabelsarecollected,andtheschoolcanredeemthemforcashfromTysonFoods.Atotalof$248,000dollarswasdonatedtoschoolsthroughthisprogramduringfiscalyears2008and2009.

Strategic Community Involvement Plans

WebelieveoneofthemostimportantthingswecandoforcommunitiesinwhichTysonFoodshasoperationsisensureourTeamMembersareinvolvedinactivitiesvitaltothecommunities.Ourcommunityrelationsmanagers,workingalongsidecorporateHumanResourcesandoperationsmanagers,havecollaboratedtocreatestrategicplanstoengagelocalmanagersandTeamMembersintheseactivities.Plans,custom-tailoredtotheneedsandopportunitiesinindividualcommunities,werewrittenspecificallyforall89operationslocationsinfiscalyear2008and2009.Theplansencouragerelationshipbuildingwithandassistancetolocaleducation,government,business,non-profit,publicprotection,anddiversityorganizations.

Donations and Community Outreach

Infiscalyears2008and2009,wedonatedover$5.9milliontocharitiesandnonprofitorganizations,primarilyincommunitiesinwhichwehaveoperatingfacilities.Thesecontributionsrangedfromsponsorshipsandsupportofvariousnonprofitfundraisersandcampaignstomonetaryandproductdonationsforourlocalschoolsandgrassrootscommunityeffortsforeducation,healthandhumanservices,

3.5 CHaritable giving


families,andtheenvironment.ThisdoesnotincludecontributionsmadebyindividualcompanyfacilitiesorTeamMembers.

WearealsoamajorcontributortoUnitedWay®campaigns.OurcombinedTeamMemberandcompanycommitmentsforfiscalyears2008and2009wereapproximately$3.6million.Corporatedonationssupportedhundredsofcharitieswith135organizationsreceivingatleast$10,000ormore.Asanexample,in2008wecommitted$150,000toSevenHillsHomelessShelterinFayetteville,Arkansas,tohelpestablishamuchneededtransitionallivingfacility,andin2009pledged$100,000totheNortheastIowaFoodBank’scapitalcampaigntoexpandservices.Otherrecipientsofsignificantdonationsarelistedtotheright.

Inadditiontocorporatedonations,manycompanyfacilitiesraisemoneyanddonatetoorganizationsandassociationsintheircommunity.Afewexamplesoftheseeffortsaresharedbelow.

•InMay2009,TeamMembersfromourAlbertville,Alabama,locationraised$40,600fortheAmericanCancerSocietyasapartoftheirRelayforLifeevents.ThisisthethirdyearinarowTysonFoodshasbeenthetopfund-raiserinthecounty.

•Infiscalyear2009,theTysonFoodsForest,MississippiTeamMembersraisedmorethan$60,000intheirlocalRelayforLifeefforts.


In The Wake of Disaster

NumerousdisasterrelieforganizationsandcommunitiesdependuponthesupportofTysonFoodsinthewakeofdisasterssuchaswildfiresinSouthernCalifornia,floodingintheMidwestandhurricanesintheGulf.Infact,ourTeamMembershavebecomeverywellknownamongnationaldisasterrelieforganizationsforbeingonthesceneearlyafteradisasterstrikesandfeedinghundredsofhungryworkersanddisastervictimsinthemidstoftheirefforts.

•InFebruary2008,TeamMembersfromourShelbyvilleandGoodlettsville,TennesseefacilitiesteameduptoassistreliefeffortsinLafayette,Tennessee,followingdevastatingtornados.Thelocationspreparedapproximately300hotfoodplatesthatweredistributedinthearea.Alongwithothersideitems,theGoodlettsvilleteamsuppliedbeefandtheShelbyvilleteamprovidedchickenforthemeals.

•AfterHurricanesGustavandIkeinSeptemberof2008,Tysonsent26truckloadsoffoodtotheGulfareatohelpinrecoveryefforts.

TysonFoodsassistedmanyTeamMemberswhoendureddangerousconditionsaftericestormsdevastatedpartsofNorthwestArkansas,Missouri,Kentucky,andTennesseeinJanuary2009.Morethan200,000poundsoffoodwasprovidedtoTeamMembersandlocalfoodbankstohelpthosewhowerestrandedintheirhomeswithoutpowerorforcedtostayatshelterstoavoidthecoldtemperaturesinhomestemporarilywithoutheatordamagedbyfallingtreesandlimbs.


Conservation,pollutionprevention,andstewardshiparesomeofthetermsweusetodescribeourresponsibilityforandcommitmenttoprotectingandrespectingtheenvironment.AtTysonFoods,weendeavortooperateourbusinessinanenvironmentallyresponsiblemannerwhileminimizingourenvironmentalfootprint.

ForTysonFoods,protectingtheenvironmentisaboutmorethanmaintainingcompliancewiththeenvironmentallawsandregulationsapplicabletoouroperations.It’saboutembracingaprocessofcontinualimprovementaimedatprotectingtheenvironmentforfuturegenerations.Thisincludes,butisnotlimitedto:

•Trackingkeyenvironmentalperformanceindicators;

•Identifyingandimplementingopportunitiestoreducetheamountofwaterusedinourproductionprocesseswithoutcompromisingproductsafetyandintegrity;

•Properlyoperatingandmaintainingourwastewatertreatmentfacilities;

•Reducingtheamountoflandfillwastethroughrecyclingefforts;

•Relatingourcarbonfootprinttoourbusinessstrategyandidentifyingopportunitiesandpossibleinitiativestoreduceourgreenhousegasemissions;and

•Evaluatingnewtechnologiesthatofferalternativefuels,reducepackagingwaste,reducethenumberoftrucksontheroad,andconserveenergy.

AsstatedinourCoreValues,“We serve as stewards of the animals, land, and environment entrusted to us.”Environmentalprotectionandresourceconservationareresponsibilitieswetakeseriouslyandconsidercrucialcomponentstoconductingourbusinessinasustainablemanner.

4.0 Planet


WithourCoreValuesasourfoundation,itisTysonFoods’policytoconductbusinessinasafe,responsiblemannerwithrespectfortheenvironmentandforthewell-beingofourTeamMembers,customers,andneighboringcommunities.Webelievethatconservingandprotectingnaturalresourcesisessentialtoourcompany’ssustainabilityaswellasthefutureoftheworld.WebelievethatourTeamMembers,contractors,andvisitorshavetherighttoworkinasafeenvironment.

ItisboththeindividualandcollectiveresponsibilityofallTysonFoods’locationsandTeamMemberstounderstand,promote,andassistwiththeimplementationofthispolicyanditsaccompanyingprinciples.

OurGuidingPrinciples

•WestrivetomaintainsafeandhealthyworkenvironmentsthatenableourTeamMemberstoworkfreeofoccupationalinjuryandillness.

•Weendeavortooperateourbusinessinanenvironmentallyresponsiblemannerwhileminimizingourenvironmentalfootprint.

•WearecommittedtocompliancewiththeEnvironmental,Health,andSafety(EHS)regulationsandotherrequirementsapplicabletoouroperations,andwesethigherstandardsforourselvesifunacceptablerisksareidentified.

•Wesetgoalstoeliminateinjuriesandillnesses,topreventpollution,andtoconserveresources,andweregularlymonitorandmeasureourEHSperformancetowardmeetingthesegoals.

•Weworktogether,acrossalllevelsofourorganization,todrivethecontinualimprovementofourEHSManagementSystemandEHSperformance.

•WefosteropencommunicationwithourTeamMembers,contractors,andsupplierstoensuretheyareawareoftheirEHSrolesandresponsibilities,andweholdthemaccountableforconformingtothecommitmentsofourEHSPolicyandtherequirementsofourEHSManagementSystem.

4.1 our environMental, HealtH, and saFety PoliCy


MembersofourEnvironmental,Health,andSafety(EHS)Servicesdepartmentdevelopandadministerourenvironmentalprotectionandresourceconservationprograms.ThisincludesTeamMembersservinginkeyenvironmentalrolesatboththecorporateandprocessing-plantlocations.Corporate-basedenvironmentalprofessionalsreporttoourSeniorVicePresidentandChiefEnvironmental,HealthandSafetyOfficer.Environmentalprofessionalsbasedatourprocessingplantsreporttotheirfacilities’managementteamswithadottedlineofreportingtoourcorporateEHSorganization.

Workinginpartnership,theseprofessionalsprovideoversightforavarietyprograms,suchasairpermitcompliance,riskmanagementplanning,routinechemicalreporting,solidandhazardouswastemanagement,stormwaterpollutionprevention,spillprevention,andwastewatertreatmentanddischarge.Additionally,theseprofessionals:

•Establishclearrolesandresponsibilitiesformanagingenvironmentalcompliance;

•Provideenvironmentaltrainingtohourly,managementsupport,andmanagementTeamMembers;

•Participateinthedevelopmentoflocal,state,andfederalenvironmentalprograms,standards,andregulations;

•Evaluatenewandemergingenvironmentaltechnologiesandprograms;and

•Drivecontinualimprovementwithanemphasisonpollutionprevention,conservation,recycling,andoperationalefficiency.

4.2 our environMental teaM


AsofDecember2008,allTysonFoods’facilitiesintheUnitedStatesandMexicohaveimplementedEnvironmental,Health,andSafetyManagementSystems.TheenvironmentalportionofthissystemfulfillstherequirementssetforthinInternationalOrganizationforStandardization(ISO)14001.Assuch,eachfacilityhasdevelopedandimplementedproceduresandcontrolsthatalignwiththerequirementsof14001including,butnotlimitedto:

•Theidentificationandcontrolofsignificantenvironmentalaspects;

•Communication;

•Documentandrecordcontrol;

•Compliancemanagement;and

•Emergencypreparednessandresponse.

Animportantcomponentofthissystemistherequirementforfacilitiestosystematicallyidentifytherootcauseofanenvironmentalnoncomplianceevent,proposeappropriatecorrectiveandpreventativeactionstoaddressthenoncompliance,andtrackandmanagetheseactionstoensuretheireffectivenessinpreventingthereoccurrenceofanypotentialnoncomplianceactivity.Thisprocessnotonlyimprovesourabilitytoidentifythecauseofanissue,butalsoourabilitytoensurethatcorrectiveactionseliminatethecauseoftheissueatitssource.

Anotherkeyelementofthissystemisannualmanagementreviews.Thesereviews,conductedbyafacility’smanagementteam,evaluatewhetherafacility’ssystemisproducingthedesiredresults.Thesereviewsprovidefacilitymanagementteamswithanopportunitytostepbackfromtheday-to-dayimplementationofthesystemandevaluateitsperformanceforthepurposeofupdatingprocedures,objectives,andotherelementsofthesystemtodrivecontinualimprovement.

Webelievetheimplementationofthissystemisfundamentaltosuccessful,proactiveenvironmentalmanagement.Additionally,webelieveourmanagementsystemwillhelpensurethesustainablefutureofourcompany,theenvironment,andournaturalresources.

4.3 our environMental ManageMent systeM


TysonFoods’Environmental,Health,andSafety(EHS)AuditProgramisanessentialcomponentofourbusinesspracticesandcommitmenttocontinualimprovement.Theprogramservesto:

•ProvideassurancetomanagementthatapplicableEHSregulationsandcompanystandardsarebeingimplementedasintended;

•Providesitemanagementwithrecommendationstocorrectanynonconformanceandaidinmanagementsystemandprogramimprovements;

•EnhanceTeamMemberawarenessandunderstandingoftheirEHSrolesandresponsibilities;and

•ProvideauditinformationanddataanalysistoourEHSmanagementteam.

Toensuretheseobjectivesarefulfilled,weimplementourEHSAuditPrograminaccordancewiththefollowingthree-tierprocess.

Tier I: Facility-Led EHS Audits

Facility-ledEHSauditsprovidefortheearlyrecognitionandmanagementofEHShazards,buildownershipandconfidenceinEHScompliance,andincreaseEHSawarenessandresponsibility.TheseauditsinvolvefacilitymanagementteamsconductingroutinechecksofEHSoperationstoensureprogramelementsandstandardsarebeingfulfilled.Inaddition,theseauditsprovideatimelierpictureofcompliancethanannualauditsaloneandassistfacilitymanagersinidentifyingEHStrendsandrespondingtodeficienciesinatimelymanner.

Tier II: Annual Compliance Audits

CompanyEHSprofessionalsconductcomplianceauditsannuallyineachmajorfacility.Processingfacilities,tanneryoperations,andfeedmillsareconsideredmajorfacilities.Allotherfacilitiesareauditedeverythreeyears.Theseauditsfocusonaplant’simplementationandconformancewithcompanystandardsandapplicableenvironmentalregulationsandpermitrequirements.Theseauditsalsoincludefacilitywalk-aroundinspections;recordkeepinganddocumentationreviews;andevaluationsofdataandreportsfortrendingandperformanceindications.Duringfiscalyears2008and2009,ourcorporateenvironmentalprofessionalsconducted360environmentalauditsatourfacilities.

Tier III: Quality Assurance Audits

OurEHSauditmanagerperformseightquality-assuranceauditsannually.Thismanagerisindependentofthefacilitiesaudited,andperformstheseauditsatrandomprocessingfacilities.Alongwiththevalueandintegrityofthecompany’senvironmentalauditprocess,theseauditsensurecorporateenvironmentalgoalsarebeingmet.Infiscalyear2010,wewillberevisingourquality-assuranceauditapproachtobemorefocusedonensuringconformancewithourmanagementsystemstandards,procedures,andgoals.

4.4 auditing our PerForManCe


Infiscalyear2008,wecompletedanextensivereviewofourenvironmental,health,andsafetyperformancedataandsystems.Theobjectivesofthisreviewweretwofold:first,toidentifyimportantdatapointsnotbeingcollectedandmonitored,andsecond,toevaluatedatacurrentlybeingcollectedwithemphasisontheprocessforcollectingandverifyingthedata,determininghowreportswerecompiled,andtheprocessfordeliveringreportstointernalcustomers.

Fromthisreview,weidentifiedseveralkeyopportunitiestoimproveprocessefficiency.Forexample,wedevelopedaWeb-basedincidentreportingtoolcapableofcollectingdatarelatedtoenvironmentalspillsandreleases,exceedances,noticesofviolation,andregulatoryinspections.Thistoolallowsustomaketheappropriateinternalnotificationsandestablishcorrectiveactionmeasures,andincludesaqualityassurancemechanismthathelpsensuretheaccuracyofthedetails

surroundinganincidentforthepurposeofreportingandanalyzingtrends.Additionally,weareworkingonenhancementsrelatedtoourdatasystemsforwater,solidwaste,specialwaste,andrecycling.

4.5 data ColleCtion and assuranCe


TysonFoods’mainenvironmentalfootprintareasincludewater,air,carbon,energyuse,solidwaste,packaging,andsustainableagriculture.Thesectionsthatfollowreviewourmanagementapproachtoeachoftheseimpactareasaswellasourperformancedatafortheseareasduringfiscalyears2008and2009.

Protecting and Conserving Water

TysonFoodsunderstandstheimportanceofwaterinoureverydaylivesandourresponsibilityforprotectingwaterquality.Ourpoultry,beef,andporkprocessingplantsusedapproximately25.5billiongallonsofwaterinfiscalyear2009toproducefoodproductsandensurethecleanlinessoftheirfacilities.Atthistime,wehavenotincludedwaterusagedatarelatedtoourpreparedfoodprocessingplants;however,effortsareunderwaytobegincollectingandreportingthisdata.

Wearecommittedtoprotectingthewaterbodiesthatwedischargetoasevidencedbytheresultsofourwaterqualityperformancedata.Weoperate34full-treatmentand42pretreatmentwastewaterfacilitiesinNorth

America.Inadditiontoestablishingelectronictoolsthatenableourfacilitiestoproactivelymonitortheperformanceoftheirtreatmentsystems,ourlong-termgoalistoeliminateNoticesofViolations(NOVs)andpermitexceedances.Fromtheendoffiscalyear2007totheendoffiscalyear2009,thecompanyreduceditswastewaterrelatedpermitexceedancesby5.4percent.

Duringthistimeframe,however,thecompany’sNOVsrelatedtowastewater,stormwater,anddrinkingwaterincreasedby51.9percent.Twoofourpre-treatmentwastewaterfacilitiesaccountedfor55percentofthetotalNOVswereceivedinfiscalyear2008and61percentoftheNOVsreceivedduringfiscalyear2009.Wehaveevaluatedthesefacilitiesandtheirpermitconditionsandtreatmentprocessforopportunitiestoimproveupontheiroperationsandensuretheircompliance.

WaterconservationhasbeenanimportantareaoffocusforTysonFoodsformanyyears.Weemployprogramsandtechnologies,suchasbestmanagementpractices,waterreclamationsystems,andTeamMembereducation,toconserveandreusethisnaturalresource.Ourfirstpriorityistoensurethewholesomenessandsafetyofourfoodproducts.Wateruseiscriticaltothecleanlinessoffacilitiesandforensuringthesafetyofourproducts;itsuseismandatedbythegovernment.Werecognizetheimportantbalancebetweenprotectingproductqualityandconservinganaturalresource.Accordingly,wewillneverreducewaterusageinsituationswherefoodsafetyandqualitycouldbecompromised.

Wearepleasedwiththewaterconservationeffortsmadeandtheresultsachievedsofar.Ourwaterconservationefforts,alongwithseveralfacilityclosures,haveledtoawaterusagereductionof7.6percentsinceOctober2004,whichisequivalenttoa13.9-percentreductioninthenumberofgallonsusedperpoundoffinishedproduct.Toensurecontinualimprovement,thecompanyhassetagoaltoreducewaterconsumptionby10percentoveratwo-yearperiod,ascomparedtoitswaterusagelevelsattheendoffiscalyear2008.Asarequirementofthecompany’sEnvironmental,Health,andSafetyManagementSystemStandards,anyfacilityintheUnitedStatesorMexicothatusesmorethanonemilliongallonsofwaterperweekmustdocumentandimplementaWaterConservationPlanthatsetsforthagoalforwaterreductionandatimeframeforachievingthatgoal.

4.6 Managing our environMental FootPrint


Below,weprovideinsightintoourmanagementapproachregardingsomeofthemostcommonwaterqualityandconservationquestionsorconcernsraisedbyourstakeholders.

Oklahoma Watershed - TysonFoodsandseveralotherpoultrycompaniesarecurrentlydefendantsinalawsuitfiledbytheOklahomaattorneygeneralallegingpollutionoftheIllinoisRiverWatershed.Thesuit,filedinJune2005,allegedthepracticeofusingchickenlitterasfertilizerintheIllinoiswatershedposedasignificantthreattotheenvironmentandhumanhealth,andthepoultrycompanies’treatmentofpoultrylitterviolatedthestate’senvironmentalstandards.In2008,thefederaljudgeinthecasedeniedtheattorneygeneral’srequestforapreliminaryinjunctiontostoptheuseofpoultrylitterinthewatershed,findingthatthestateofOklahoma

hadfailedtoprovethatbacteriaintherivercouldbelinkedtopoultrylitter.Recently,inJuly2009,thejudgedismissedthedamagescomponentofthestate’scase.TysonFoodscontinuallyandvigorouslydeniestheallegationsmadeinthecase.

Maintaining Air Quality and Managing Greenhouse Gas Emissions

TheprimaryairemissionsmanagedbyTysonFoods’operationsinclude:

•Particulatematter,particulatematterof2.5micrometersorsmaller,andparticulatematterof10micrometersorsmaller(PM10)fromoperationssuchasfeedmillingandcooking;

•Sulfuroxides,nitrogendioxide,carbonmonoxide,andPM10emissionsfromthecombustionoffossilfuels;and

•Volatileorganiccarbonemissionsthatmayresultfromfryeroperations.

IntheUnitedStates,airemissionsareregulatedbyvariousfederal,state,andlocalenvironmentalagencies.Ourcompliancewiththeseregulationsisverifiedthroughannualemissionsinventories,annualandsemi-annualemissioncompliancecertifications,sampling,periodicstateagencyaudits,andinternalcompliancemonitoringsystems.

Ourairemissionsmanagementapproachalsoincludestheimplementationofpollutionpreventionprograms,theinstallationofpollutioncontrolequipment,andinvestmentinairemissioncontroltechnologies,asneeded.Wehavecompletedapotential-to-emitinventory

forourU.S.-basedoperationsasacomponentoftheongoingprocessofmanagingairpermitsandoperationalchanges.

InNovember,2004TysonFoodsbecameapartnerintheU.S.EnvironmentalProtectionAgency(EPA)Climate LeadersTMprogram,avoluntarypartnershipchallengingbusinessestoreducetheirgreenhousegas(GHG)emissions.ClimateLeadersworkcollaborativelywithEPAto:

•Developacorporate-wideGHGinventory;

•SetaggressiveGHGemissionreductiongoalsforthenext5to10years;

•ImplementaGHGinventoryandreductionmanagementplan;

•AnnuallyreportGHGinventorydataandprogresstowardgoals;and

•Publicizetheirparticipation,reductionpledges,andaccomplishments.

TysonFoodscompleteditscorporate-wideGHGinventoryinaccordancewiththeClimate LeadersGreenhouseGasInventoryProtocol.ThisinventoryincludesGHGemissionsfromourU.S.chicken,beef,pork,andpreparedfoodsoperationsaswellasourhogbuyingstationsandtransportationoperations.Additionally,itincludesinformationfromourU.S.basedCobbVantressandPorkGroupsubsidiaries.

OurGHGfootprintduringcalendaryear2004was5.35millionmetrictons.Thisbaselineinventoryincludesdatarelatedtofacilityfuelandelectricityusage,transportationfuels,refrigerationusage,andanaerobicbiogas


production.Basedonthisinventory,thecompanyisevaluatingsettingGHGemissionreductiongoalsinfiscalyear2010.

Werecognizeourcompanyfacespotentialrisksduetophysicalchangesassociatedwithextremeweatherconditionssuchasdroughts,floods,excessiveheatorcold,hurricanes,andiceandsnowstorms.Theseconditionscanimpactthehealthandgrowthoflivestockandresultinoperationaldisruptions.Wealsorecognizeinvestinginenergy-efficientprojects

andprogramscanimproveourbottomlineperformance.Inlightofthecurrentuncertaintysurroundingthelegislativeandscientificdiscussionsrelatedtoclimatechange,however,wemaychoosetodelayourdecisionongoalsettinginordertobetterunderstandthefuturelegallandscapeandroleofcarbonintheeconomyaswellasitspotentialfinancialimplicationsonourcompany.

WealsobecameapartnerintheEPASmartWay®TransportPartnershipin2004.TheSmartWaypartnershipisavoluntaryenvironmentaland

energyconservationprogramforcompaniesthatshipandhaulfreight.In2006,weexpandedourinvolvementinthisprogram,andgainednationalstatusandrecognitionfromtheEPAasanauthorizedshipper/carrierpartner.Atthetimethisstatuswasachieved,wewereoneofonlysevencompaniestoberecognizedasbothashipperandcarrierpartner.

SmartWayPartnersarecommittedtoreducingGHGemissions,airpollution,andfuelusageintransportationfleets.Tofulfillthiscommitment,wehaveundertakeninitiativesrelatedtoreducedtransportation

miles,increasedrailwayusage,low-emissionengines,single-widetires,aerodynamicpackages,tareweightreduction,auxiliarypowerunits,low-frictiondrive-trainlubricants,andrecruitingSmartWayCarrierPartners.Thetablehighlightsourprogressinsomeoftheseareas.

BelowweprovideinsightintoourmanagementapproachregardingsomeofthemostcommonairqualityandGHGemissionquestionsorconcernsraisedbyourstakeholders.

Tyson Foods’ Position on the Carbon Disclosure Project

Forthepastseveralyears,theCarbonDisclosureProject(CDP)hasrequestedTysonFoods’disclosureofclimatechangerelatedinformation.WehavereviewedtheCDPprocess,format,andinformationrequirementsand,atthistime,havedecidedtocommunicateourGHGinformationthroughalternativebutequallyeffectivemeansratherthanparticipateintheCDP.

ThereareseveralreasonsforTysonFoods’approachtocommunicationregardingGHGinformation.First,webelieveitisunnecessarytocommittheadditionalresourcesrequiredtoannuallyreportourinformationunderCDP’suniqueformat.Second,weprefertocontinueworkingwithEPAregardingGHGinventoryinformationbecauseoftheAgency’sexpertiseandlong-termmanagementresponsibilityforclimatechange.Third,wehavereportedourGHGemissionssummaryinoursustainabilityreport,whichispubliclyavailable.


Greenhouse Gas Emissions from Livestock Production

Inthefallof2009,aninvestmentresearchfirmprovidingmanagementtoolstoprofessionalsintegratingenvironmental,social,andgovernancefactorsintotheirinvestmentdecisionsreleasedareportclaimingTysonFoods’livestockoperationsgeneratesubstantialemissionsofmethanegas(CH4).Thisreportstatedmethanegasisproducedfromthefermentingofanimalwasteandmanure-holdinglagoonsandcitedaNovember2006reportfromtheUnitedNationsFoodandAgricultureOrganizationthatclaimedlivestockproductionaccountsfor18percentofglobalcarbondioxideemissionsandbetween40and60percentofglobalmethaneandnitrousoxide(N2O)emissions.

Accordingtothe2009 U.S. Greenhouse Gas Inventory ReportfromtheEnvironmentalProtectionAgency,manuremanagementaccountedfor4.7percentofN2Oand7.5percentofCH4emissionsintheU.S.duringthe2007reportingyear.ThisreportisavailableontheEPA’sWebsite.Toviewthereport,CLICKHERE.TysonFoodsdoesnotowncattlefeedlotsorconfinementareas,nordoesitmanagecattle.Thecompanyhasasmallnumberofcompany-ownedswinefarms,accountingforraisinglessthanone-percentoftheswineitprocessesatitsporkproductionplants.Inaddition,TysonFoodsownsaround20poultryfarmsandcontractswithapproximately6,000independentpoultryproducers,whomanagetheirownpoultrylitter.TysonFoods’poultryfarmsdonotutilizelagoonstostorechickenlitter,whichisprimarilycomposedofchicken

droppingsandbeddingmaterials,suchasricehulls.Accordingly,TysonFoods’managementofmanureandanimal-wastelagoonsresultsinasmallGHGfootprint.

Energy Usage and Conservation

EnergyuseinTysonFoods’productionfacilitiesisthecompany’sfirstandsecondlargestsourceofGHGemissions.Ourmainsourceofenergyiselectricity,whichrepresented49.8percentofourtotalGHGemissionsduringfiscalyears2004through2008.Weuseelectricitytopowerprocessing,refrigeration,andwaste-watertreatmentequipment,andforlighting,heating,andairconditioning.Inaddition,manyofourfacilitiesusenaturalgasinboilerstoheatwaterandinfryersandovenstocookourfoodproducts.Thecombustionofnaturalgasrepresented26.7percentofourtotalGHGemissionsduringfiscalyears2004through2008.

Energy-efficiencyprojectsreducebothcostsandassociatedGHGemissions.BelowareexamplesofenergyconservationeffortsunderwayatTysonFoods.

•TysonFoodsoperatesrenewableenergyprocessesandresearchesnewandevolvingtechnologiestocreaterenewableenergy.Forexample,wehavesixwastewatertreatmentsystemsthathaveenclosedtheiranaerobiclagoonsinordertogenerateandcapturebiogas.Biogasisnaturallyproducedduringthedecompositionoforganicmatterintheseanaerobicsystems.Fourofthesesixfacilities,areabletocleanandusetheirbiogasasanalternativefuelsourceto

naturalgasinon-siteboilers.AccordingtodatacollectedfromtheU.S.EnergyInformationAdministration,theaveragemonthlyindustrialnaturalgaspricefromJanuary2001toSeptember2009was$6.75perthousandcubicfeet.Duringfiscalyears2008and2009,thesefourfacilitiesusedmorethan1.8billioncubicfeetofbiogasinon-siteboilers.Forthesetwofiscalyears,thisisequivalentto1.3billioncubicfeetofnaturalgasandanaturalgascostavoidanceofapproximately$9.1milliondollars.Inanefforttominimizeenergycosts,reduceGHGemissions,andutilizealternativeenergysources,weareevaluatingadditionalopportunitiestocaptureandusebiogasatotherprocessingfacilities.

•Infiscalyear2008,TysonFoodsbegantestingarenewableenergyprocessatitsfeedmillinFairmount,Georgia.Thisprocess,knownasabiomassgasificationtechnology,isdesignedspecificallyforpoultrylitterandotherhard-to-processmaterials.Thetestingperiodlastedeightmonthsandconvertednearly1,000tonsofpoultrylitterto110-psig(pounds-per-square-inchgauge)steam.Itsuppliedanestimated30percentofthefeedmill’ssteamneeds.Thetestisconsideredanoperationalsuccess,achievingsustainedgasificationoverextendedperiodsandexcellentresultsonstackemissionsfromtheprocess.TysonFoodscontinuestoevaluateopportunitiestoinstallascaledupversionofthisprocessatothercompanylocations.


•TysonFoodsimplementedaservervirtualizationandconsolidationeffortwithinitsInformationTechnologyInfrastructureGroupseveralyearsago.Virtualizationisamethodofrunningmultipleoperatingsystemsonasinglecomputer.Oneofthemanybenefitsofvirtualizationisreducedenergyconsumptionforpoweringthecomputersandcoolingtheareainwhichtheserversarestored.Todate,TysonFoods’effortsaroundservervirtualizationandconsolidationhavereducedserverstoragespacebyapproximately400squarefeet,thenumberofserversfrom483to37,physicalserverracksby18,andnetworkportsandcablesby268.

•OurInformationTechnologydepartmentalsobeganofferingLiquidCrystalDisplay(LCD)monitorsasanalternativetoCathodeRayTube(CRT)monitorsinAugust2005.TheadvantagesofLCDmonitorsoverCRTmonitorsequatetoapproximately$110annualsavingspermonitorinenergyuse.Additionally,LCD’sareemissionfree,poselessofafirerisk,anduseloweramountsofenvironmentallysensitivematerialssuchasleadandcalcium.

•Werelyongreendesignandrenovationtoincreaseenergyefficiency.Forexample,ournewofficebuildingandDiscoveryCenter,constructedin2007atourWorldHeadquartersinSpringdale,Arkansas,receivedenergyefficientlightingwhenbuilt.TheremainderofourofficebuildingsatWorldHeadquarterswillreceiveenergyefficientlightingasrenovationsoccurorasreplacementsare

needed.Wearealsoinstallingtimersthatautomaticallyturnofflightsduringnon-workinghours.Thisnotonlyhelpseliminatelightpollutiontotheoutsidebutalsoconservesenergy.Additionally,duringthewinterof2009,wemovedourheatset-pointsatWorldHeadquartersto68°F.Bydroppingandmaintainingtheseset-points,wereducedouroverallnaturalgasusagebyapproximately30percentascomparedtothesamethree-monthperiodin2008.

Solid Waste Management and Recycling

TysonFoods’operationsgeneratemostlynon-hazardoussolidwaste,consistingofpaper,plastics,scrapmetals,usedoils,foodwastes,woodenpallets,proteinby-products,andoldcorrugatedcontainers(OCC).AsstatedinourEHSPolicy,wearecommittedtomanagingouroperationsinanenvironmentallyresponsiblemannerwithemphasisonpollutionprevention,conservation,recycling,andoperationalefficiency.Whileworkingtoconstantlyfindalternativeusesforwastesandby-products,wepromoteconsistentwastemanagementpracticesthroughoutourcompany.Theseeffortsaidinreducingtheamountofwastesenttolandfillsandreducemethanegenerationwhichcontributestothegenerationofgreenhousegasemissions.

Monitoringwastegeneration,disposal,andreuseenablesustoassessourprogressandcontinuallyimproveourwastemanagementperformance.Ourgoalistoreducetheamountofwastewesendtothelandfillandtoincreasetheamountofmaterialsrecycledyear-over-year.TysonFoodsgenerated164,073tons

oflandfillsolidwasteinfiscalyear2008and143,564tonsinfiscalyear2009,representinga12.5percentdecreasefrom2008to2009.Werecycled31,080tonsofOCCandplasticsduringfiscalyear2008and29,615tonsduringfiscalyear2009,a4.7percentdecreasefrom2008to2009.


WealsomaintainseveraltypesofrecyclingprogramsatourWorldHeadquartersinSpringdale,Arkansas.

•FromMay2008throughOctober2009,werecycledmorethan150tonsofofficewaste,includingplastics,paper,cardboard,aluminum,andotherrecyclables.

•OurInformationSystemsdepartmenthasanagreementwithacompanythatmanagesthereceipt,reuse,andifnecessary,theenvironmentallyresponsibledisposalofpersonalcomputers,laptops,monitors,faxmachines,copiers,cellphones,andothertypesofelectroniccomputerrelatedassets.Duringfiscalyear2009,weshippedmorethan37,000poundsofbulkcomputerequipmenttothiscompanyforde-manufacturingandreclamationofrawmaterials.Thisincludesapproximately820monitorsand2,300personalcomputers,laptops,andservers,alongwithhundredsofcomputermice,keyboards,cables,racks,andothermiscellaneousequipment.

•Througheffortssuchaselectronicinvoicingandbilling,consolidationoffinanceandpayrollapplications,onlineavailabilityandarchivingofreports,andtheuseofmicrofiche,ourDataCenterTeamhasimplementedeffortsthathavereducedourcompany’spaperusagebyapproximately40percentsincefiscalyear2005.

Additionally,weseektoenterintorelationshipswithsupplypartnerswhoshareasimilarcommitmenttoenvironmentalprotection,resourceconservation,andcontinualimprovement.InMay2008,wepartneredwithCHEPEquipmentPoolingSystemstobegintransitioningourshippingplatformfromanon-pooledpalletapproachtoapooledapproach.CHEPisaleaderinpalletandcontainerpoolingservices.Theyissue,collect,condition,andreissuemorethan300millionpalletsandcontainersfromglobalnetworkofservicecenters.Inadditiontoreducedcostsandenhancedoperationalefficiencies,ourpartnershipwithCHEPhelpsminimizeourenvironmentalfootprintinthefollowingways:

•Palletsareconstructedoflumberfromsustainablymanagedforests.

•Thepoolingmodelencouragestherepairandreuseofpallets.

•Brokenordamagedcomponentsofpalletsarerecycled.

Duringfiscalyear2009,weused8.9millionpooledCHEPpalletsforproductshipment.Theenvironmentalbenefitsofthispooledapproachincludeasolidwastereductionofapproximately5millionpounds,anenergysavingsof109billionBTUs,andmorethan3.8millionpoundsofGHGemissions.

Sustainable Packaging

Anoften-overlookedelementofafoodproductisitspackaging.AtTysonFoods,ourfirstpackagingpriorityistoensurethewholesomeness,safety,andshelf-lifeofourproducts.Ourpackagingsupplypartnersmustmeetorexceedthesafetyregulationsandstandardsapplicabletofood-gradepackaging.Inaddition,werequireannualthird-partyauditsforourpackagingsupplypartnersandlettersofguaranteefortheproductstheysupplytoTysonFoods.

Wealsorecognizetheimportanceofreducingpackagingwasteaswellastheuseofnon-renewablematerialsinpackagingcontent.OurPackagingApplicationsTeam,incollaborationwithpackagingsupplypartners,iscommittedtoreducingtheenvironmentalimpactofourpackagingwhileensuringthesafetyofourproducts.Below,wehighlightotherinitiativeswehaveimplementedtoreducetheenvironmentalimpactofourpackaging.


Corrugated Packaging

TysonFoods’corrugatedsupplypartnerisamemberoftheSustainable Forestry Initiative®(SFI®)program.SFIcertificationpromotesresponsibleforestrypractices.Tobecertified,forestoperationsmustbeauditedagainsttheSFIforeststandard.WeuseonlySFI standardcertifiedcorrugatedpackaging,andatleast94percentoftheboxesweuseforproductshipmentarerecyclable.

Thiscorrugatedmaterialssupplieralsousesthemostcurrenttechnologytoreplaceoil-basedwaxinspecificpackagingapplications.Overthelastseveralyears,thisreplacementprocesshashelpedusreducewax-coatedboxesby16percent.Additionally,withtheassistanceofthissupplier,wehavebeenabletoimplementprojectsdesignedtoreducefiberthroughaprocesscalledboardgradeoptimization.Thisprocessmorecloselyalignsthedesignofacorrugatedboxwiththeperformanceneedsofaproduct.Todate,wehaveremovedover4,000tonsoffiberthroughboardgradereductionincalendaryear2009.

Flexible Packaging Efforts

Themostrecentchangeswehavemadetoreducetheenvironmentalimpactofourflexiblepackagingincludeoptimizingresin(plastic)useinallpackagingandinsomeapplicationsusinganewalternativefillersubstitution.Byoptimizingthepackageattributes,wehaveeliminatedoverfourmillionpoundsofresinsince2008.Thisefforthasalsoresultedinareductioninflexiblepackagingweightleadingtolesspackagingintransportationanddisposal.Themostexcitingoftheseeffortsisthemineralfillersubstituteforresinwhichisbeingusedinoneofourretailpackages.Thisfillerisnotapetrochemical,thusreducingourrelianceonthisresourcebyabout15-percentinthispackage.

Reduced Transportation through “Right Sizing”

OurPackagingApplicationsTeam,aspartoftheirregularduties,isconstantlylookingforopportunitiestoidentifyalternativepackagingthatachievesmoreefficienttruckweights.Wehaveimplementedseveralprojectsthatfocuson“rightsizing”boxes.Theseprojectsensuremoreboxesareoneachpallet,thusallowingustoreachoptimumweightonourtrucksandreducethenumberoftrucksontheroad.


TysonFoodsincurredseveralenvironmentalpenaltiesduringfiscalyears2008and2009.Thelargestamountpaidbyasinglelocationwasa$2,026,500civilpenaltytosettleallegationsthattheFreshMeatsDivisionviolatedtermsofa2002consentdecreeandafederally-issuedpollutiondischargepermitatitsmeatprocessingfacilityinDakotaCity,Nebraska.AccordingtoafilingmadeinU.S.DistrictCourtinOmaha,thegovernmentallegesthatfromJuly2003throughMarch2004,theDakotaCityfacilityfailedtoproperlyoperateanitrificationsystemasrequiredbythe2002consentdecree.Whenthecompanybecameawarein2003thatsometreatmentplantprocesseswerenotperformingasintended,operationalchangesweremadeandadditionalequipmentandsystemswereadded,

enablingthetreatmentsystemtofunctionconsistently.Infact,duringthepastnineyears,approximately$27millionhasbeenspentupgradingandimprovingthewastewatertreatmentsystematDakotaCity.Thisincludesmorethan$4millionspentonmodificationssince2003.TysonFreshMeatsworkedcooperativelywithstateandfederalregulatorsconcerningwastewaterissuesthatoccurredyearsagoatthisfacility.Thoseissueshavebeenresolvedandthefacility’swastewatertreatmentsystemisoperatingeffectively.

Inaddition,wereported55spills(50anhydrousammonia,twodieselfuel,twocarbondioxide,andoneferricchloride)and

enteredintosixconsentagreementstoaddressspecificenvironmentalissuesandpaid$93,033inpenalties,inadditiontotheabove-mentionedpenaltyataNebraskalocation,duringfiscalyears2008and2009.Detailssurroundingpenaltiesgreaterthan$5,000incurredduringthistimeframeareprovidedbelow.

4.7 environMental Fines and Penalties


BelowareexamplesofbothinternalandexternalenvironmentalawardsandrecognitionsreceivedbyTysonFoodsduringfiscalyears2008and2009.

•OurDawson,Georgia,poultryfacilityreceivedtheHonorableMentionAwardfromU.S.PoultryandEggAssociation’s2008CleanWaterAwardcompetitioninthepretreatmentcategory.

•InMarch2008,TysonFoodsrecognizedsixlocationsfortheirenvironmentalperformancebypresentingthemwithaFacilityEnvironmentalStewardshipaward.

•InMay2008,ourGreenForest,Arkansas,poultryfacilitywashonoredasoneoffivefinalistsforthe2007ArkansasEnvironmentalStewardshipAward,alsoknownastheENVYAward.

•TheAmericanMeatInstitute(AMI)recognized47TysonFoods’facilitiesfortheirenvironmentalperformanceinfiscalyear2008and33facilitiesinfiscalyear2009.

•InApril2009,ourJoslin,Illinois,beeffacilityreceivedtheJ.EdwardMeersIndustrialAchievementAwardfortheirwastewatertreatmenteffortsfromtheIllinoisAssociationofWaterPollutionControlOperatorsandtheIllinoisEnvironmentalProtectionAgency.

•InMay2009,Alabama’sWaterEnvironmentAssociationawardedtheWastewaterDepartmentatourBlountsville,Alabama,poultryprocessinglocationthe2008ExcellenceinWastewaterTreatmentAward–Category4BiologicalAdvancedTreatment.

•OurWorldHeadquartersinSpringdale,Arkansas,wasnamedoneofthearea’sgreenestofficesbyArkansas BusinessinAugust2009.

•InNovember2009,ourLexington,Nebraska,beeffacilityreceivedtheScottWilburAwardandGoldSafetyAwardfromNebraskaWaterEnvironmentAssociation.ThisisthesixthyearinarowthefacilityhasreceivedtheScottWilburAwardandthefifthyearinarowthefacilityhasreceivedtheGoldSafetyAward.

•OurDakotaCity,Nebraska,wastewatertreatmentplantwasalsorecognizedbytheNebraskaWaterEnvironmentAssociationinNovember2009withtheScottWilburAward.

•In2009,ourTysondeMexicoPopularPlant,CitraPlant,andfeedmilleachreceivedtheCertificacionIndustrialLimpia(CleanIndustryCertification)awardfromtheProcuraduríaFederaldeProtecciónalAmbiente(AttorneyGeneralforEnvironmentalProtection)fortheircompliancewithfederal,state,andmunicipalregulations.

•OurPreparedFoodsfacilitiesinDallasandFortWorth,Texas,receivedwastewatertreatmentawardsin2009.Dallas,forthesixthyearinarow,receivedtheBlueThumbAwardfromtheDallasWaterDepartmentfortheirwastewatertreatmentcompliance,andFortWorthreceivedthePretreatmentAssociatesAwardfromFortWorthfortheirwastewatertreatmentcomplianceperformancefromJune2007throughMay2009.

•TheU.S.Poultry&EggAssociationchoseourMonett,Missouri,poultryfacilityasthewinnerofits2009NationalCleanWaterAwardinthepretreatmentcategory.Alsoin2009,MonettreceivedtheirsecondplatinumandtenthgoldawardfromtheMissouriWaterEnvironmentalAssociationfor100percentindustrialwastewaterpretreatmentcompliance.

4.8 aWards and reCognitions


Successfulcompaniesknowtheirfuturedependsonprovidingthequalityproductscustomersandconsumersexpectanddeserve.TysonFoodshasbecomeaworldpowerinproteinbecauseofitsstrongbeliefinthispremise.Theproductsweproducearesecond-to-noneinfoodsafety,quality,andvariety.Nothingismoreimportanttoourbusinessthanmaintainingtheconfidencecustomersandconsumershaveinthe Tyson®brand.

TysonFoodsiscommittedtoproducingsafe,nutritiousfoodproducts.Weusestate-of-the-artfoodsafetysystems,provideeducationandinformationthathelpsourcustomersandconsumersuseourproductssafely,continuouslyimproveourproductsafety,anddemandsaferawmaterialsandingredientsfromoursuppliers.OurcompanyisfullycommittedtoourCoreValuesstatement,“We feed our families, the nation, and the world with trusted food products.”

5.0 ProduCts


TysonFoods’approachtofoodsafetyandqualityiscomprehensive,preventive,andproactive.Weimplementcontrolsandmeasuresateveryleveltomakesureourproductsaresecond-to-noneinfoodsafetyandquality.Weassessourproductsforimprovementduringproductresearchanddevelopment,manufacturingandproduction,marketingandpromotion,storageanddistribution,anduse.Webelievethisapproachhelpsguaranteethesafetyandqualityofourproductsfromthefarmallthewaytothedinnertable.Belowareexamplesofhowthisapproachisimplementedthroughoutourcompanyanditsoperations.

At the Farm

Ensuringthesafetyandqualityofourfoodproductsbeginsatthefarm.Independentpoultryproducersraisemostofourchickens.Weprovideproducerswithveterinarysupport,nutritionallyformulatedfeed,technicalassistance,andinformationonoptimallighting,ventilation,andanimalwell-being.Wealsohelpthemimplementstrictbiosecuritymeasurestopreventthespreadofdiseaseamonganimals,andweperformthousandsoftestseachweektoconfirmthehealthofouranimals,includingavianinfluenzatestingofallchickenflockspriortotransporttoaprocessingfacility.

Webuycattleandhogsontheopenmarketfromindependentlivestockproducers.Toensurethesafetyandqualityofourproducts,weworkwithindustryassociationstodevelopstandardsfortheraisingoftheseanimals.Asanexample,inJune2009,weendorsed

theNationalPorkBoard’sandNationalPorkProducersCouncil’s‘WeCare’Program.Thisprogramformalizesandverifiesporkindustryeffortstooperateinaresponsibleandethicalmannerconcerningtheenvironment,publichealth,employeecare,andcommunityrelations.ThisinitiativealsoinvolvesthePork Quality Assurance Plus®(PQA Plus®)program,whichprovidesporkproducerswithguidelinesforenhancingfoodsafetyandanimalwell-being.Aspartofthisendorsement,weareaskingallporkproducerswhosupplyuswithhogstomeettheporkindustrygoalofbeingcertifiedinthePQA PlusprogrambyJune30,2010andtocompleteasiteassessmentbyJanuary1,2011.

A Systematic Management Approach

Inadditiontogovernmentalregulatoryrequirements,wehavedevelopedourownhighlyintegratedpolicies,procedures,controls,andgoodmanufacturingpracticesdesignedtoensurethesafetyandqualityofourfoodproducts.Oursystemoftenextendsbeyondregulatoryrequirementstoaddresssuchissuesasfacilitysanitation,TeamMembertraining,personalhygiene,producthandling,foodprotection,foreignmaterialprevention,productquality,storage,andtransportation.

InJuly2008,webeganpursuingourGlobalFoodSafetyInitiative(GFSI)certification.TheGFSIisapartnershipbetweenfoodsafetyexpertsfromretailer,manufacturer,andfoodservicecompaniesthatfocusesonthe

“continuous improvement in food safety management systems to ensure confidence in the delivery of safe food to consumers.”TheGFSIobjectivesareto:

•Promoteconvergencebetweenfoodsafetystandardsbymaintainingabenchmarkingprocessforfoodsafetymanagementschemes.

•ImprovecostefficiencythroughoutthefoodsupplychainviathecommonacceptanceofGFSIrecognizedstandardsbyretailersaroundtheworld.

•Provideauniqueinternationalstakeholderplatformfornetworking,knowledgeexchange,andthesharingofbestfoodsafetypracticesandinformation.

TheGFSIbenchmarkedauditisanall-inclusive,one-stopshopforallthingsfoodsafetyandquality.Unlikeotheraudits,certificationrequires100-percentcompliancetotheauditstandard.AsofSeptember2009,67ofTysonFoods’U.S.facilitieshavebeencertifiedagainsttheBritishRetailConsortiumGlobalStandardforFoodSafety,Issue5.Additionally,ourverticallyintegratedjoint-venturebeefoperationinArgentinahasreceivedthiscertification.WebelieveourpursuitofGFSIcertificationisanopportunitytodemonstratetotheglobalcommunitythehighstandardstowhichweproduceourfoodproducts.FormoreinformationregardingGFSI,pleasevisithttp://www.ciesnet.com/2-wwedo/2.2-programmes/2.2.foodsafety.gfsi.asp.

5.1 Managing Food saFety and Quality


Tyson Foods’ Food Safety and Quality Assurance Team

OurFoodSafetyandQualityAssurance(FSQA)teamplaysakeyroleinensuringthesafetyandqualityofourfoodproducts.Thisteamincludes2,300foodsafetyandqualityprofessionalsservinginkeyfunctionsatboththecorporateandfacilitylevel.Workinginpartnershipwithourfacilitiesandregulatoryauthorities,thisteammonitorstheimplementationandeffectivenessofourfoodsafetyandqualityassurancepolicies,procedures,andcontrols,and:

•Performsfoodsafetyandsanitationinspections;

•Verifiesregulatory,policy,andproceduralcompliance;

•Provideslaboratoryanalysisandsupport;and

•Assistswiththecontinualimprovementofourfoodsafetyandqualityassuranceprogram.

Our Laboratory Services Network

TysonFoods’LaboratoryServicesNetworkisrecognizedthroughouttheindustryasaresearchleaderinfoodchemistry,foodmicrobiology,andfoodsafetyresearch.Thisnetworkconsistsoftwocorporatelaboratories,fourregionallaboratories,and11freshmeatslaboratories.Atotalof10laboratoriesinthenetworkareaccreditedforISO17025.Additionally,our25,000square-footstate-of-the-artlaboratoryinSpringdale,Arkansas,isaccreditedforbothISO17025andISO9001-2008.Thislaboratoryisproficientinmanyaspectsoffoodsafetymicrobiology,foodsafetyresearch,andfoodchemistry.Moreover,thefieldandtrainingservicespartofthislaboratoryprovidessupporttoTysonFoods’processingfacilitiesinkeyareassuchastraining,auditing,andoptimizationofantimicrobialsystems.

Throughtheeffortsofthelaboratorynetwork,TysonFoodshasmadesubstantialcontributionstoresearchcoveringE.coliO157:H7,Salmonella,AvianInfluenza,Listeria monocytongenes,campylobacter,andotherpublichealthissuesandinitiativesaimedatimprovingfoodsafetyandanimalhealth.AlthoughnotconsideredapartoftheTysonFoods’LaboratoryServicesNetwork,thecompanyalsomaintains58plant-basedqualityassurancelaboratoriesthatassistwiththeday-to-dayimplementationandmanagementofourcompany’sfoodsafetyandqualityassuranceprograms.

Audits and Inspections

AllTysonFoods’productionfacilities,co-packers,customprocessors,distributioncenters,andsuppliersofingredientsandpackagingmaterialsarerequiredtocomplywiththegovernmentregulationsandcompanypolicies,procedures,

controls,andgoodmanufacturingpracticesapplicabletotheiroperations.Toensurecompliancewiththeserequirements,weconduct,andaresubjectto,anumberofauditsandinspections.Thisincludes,butisnotlimitedto:

•Self-auditsconductedbyfacilitymanagementteamsandfacility-basedFSQATeamMembers;

•InspectionsconductedbyvariousgovernmentagenciessuchastheU.S.DepartmentofAgriculture(USDA)FoodSafetyInspectionService(FSIS)andtheFoodandDrugAdministration(FDA);

•RoutineauditsconductedbycorporateFSQATeamMembers;

•Auditsconductedbycustomers;

•Annualauditsperformedbyanindependentthird-partyorganization;and

•Initialandannualthird-partyauditsofco-packersandcustomprocessors.

Duringfiscalyear2009,webeganimplementationofPlant.View™software,afoodsafetyandqualityassurancerecordkeepingapplication.ThePlant.ViewsoftwareguidesourFSQATeamMembersthroughprocesschecks,verifications,correctiveactions,andpre-shipmentreviews,thusimprovingourcompliancewithregulatory,company,andcustomerstandardsandrequirements.Specifically,itprovidesourfacilitieswithasinglesolutionforallproductionandqualitycontrol,customerspecification,andregulatorydatacollectionandreportingrequirements.Thiselectronicrecord-keepingsystemnotonlyimprovesfoodsafetybyreducingthechanceofhumanerror,ithasthepotentialtosavemorethan10tonsofofficepaperperyear.


Ingredient Sourcing

Ourcommitmenttoproviding“the world with trusted food products”requiresustopartnerwithingredientsupplierswhosharethesamecommitment.Wespendmorethan$800milliondollarsannuallyfortherawingredientsthatarepartofourfinishedproducts.SincethemajorityofouroperationsarebasedintheU.S.,wepurchasemostofouringredientsfromU.S.-basedsuppliers.

Whilewedonotdisclose,forcompetitivereasons,specificdetailsaboutthesourceofouringredients,wedomaintainanextensiveingredient-supplierapprovalprocess.Thisprocessrequiresouringredientsupplierstocomplywiththeingredientspecificationswesetforth.Foreachrawingredientwepurchase,wehaveaspecificationfilethatprovidesinformationforensuringeachingredientmeetsourrequirementsfrombotharegulatoryandfood-safetyaspect.

Additionally,ouringredientsuppliersmustcomplywithfood-safetyregulationsandstandardsapplicabletotheiroperationssuchasthosesetforthbyUSDA,FDA,GoodManufacturingPractices(GMP),andHazardAnalysisandCriticalControlPoints(HACCP).Wealsorequireouringredientsupplierstomeetourstringentrequirementsrelatedto,butnotlimitedto:

•Certificatesofcontinuingguarantee;

•Packagingdescriptionsanddetails;

•Warehousingandstorageinformation;

•Namesandcertificationsofco-packersorco-suppliers;

•Documentationofvariouspractices,programs,andproceduressuchasgoodagriculturalpractices,fooddefenseprograms,pestcontrol,andrecallprocedures;

•Identificationofallallergens;and

•Koshercertification,whenapplicable.

Tofurtherensuretheingredientswereceivearesafe,oursuppliersmustverifytheycantracetheiringredientstotheirpointoforigin.Inaddition,inthespringof2008,ourFSQAdepartmentimplementedacomprehensiveingredientsupplierauditprogramthatestablishesamethodforassuringtheingredientsusedinourfoodproductsmeetregulatoryfood-safetyandqualitystandardsaswellasouringredient-supplierrequirements.Werequireannualthird-partyauditsforallingredientsuppliers.Moreover,ourFSQAdepartmentconductsrandomingredient-supplieraudits.AnyingredientthatdoesnotmeetoursafetyandqualityrequirementswillnotbeusedinaTysonFoods’product.

Controlling, Tracking, and Tracing Our Products

Ourgoalistobeworldclassinourabilitytotrackandtraceourproductsthroughoutourproductionanddistributionchannels.Infiscalyear2008,welauncheddevelopmentofourEnterpriseInventoryManagement(EIM)program.Thisprogramwillstrengthenourabilitytocontrolproductatbothplantanddistributionwarehousesbygivingourfood-safetyteamaglobalviewofinventoryandtheabilitytoholdorreleaseproductfromanywhereviaanInternetconnection.Itwillalsoallowourteamtoaccuratelytrackaproductthroughourproductionanddistributionprocess,andimproveour

abilitytotrace,bykeyindicatorssuchassupplierandbatchnumber,allingredientsthatareapartofafinishedproduct.

Shouldtheneedarise,itisimperativethatwecaneffectivelyandefficientlyidentifyandisolateaspecificproduct.OurEIMprogramprovidesboththeframeworkandtechnologythatnotonlyexecutesproductretrievalinatimelymanner,butalsohelpsusbettermanageouringredientsandproductinventories.Inaddition,ourEIMprogramwillprovidea:

•Real-time,globalviewofourproductinventorylevel,status,andavailability;

•Directlinktoinventoryforthesystematicholdingandreleasingofproduct;

•Processforquickactiontoresolveandreleaseordisposeofproductthathasbeenplacedonhold;

•Singledetailedreportoningredientsandthesourceofingredientsusedinaproduct;

•Mechanismforplacingfinishedproductsandincomingingredientsonholduntilallsafetyandqualitychecksarecompleted,ensuringtheymeetallapplicablerequirementsandspecifications;

•Computerizedprocess,withbarcodescanningcapabilities,thatreducesmanualproductandingredienttrackingprocessesandpaperwork;

•FoundationalsystemforotherbusinessareaswithinTysonFoodstoconnectto,whichwillcreateanindustryleadingEIMprogram;and

•Meansforensuringourproductsmeetcustomerrequirements,maintainconsumerconfidence,andprotectthetrustconsumershaveinTysonFoodsandourbrands.


Product Recalls

Productrecallscanhappenformanyreasons,suchasproductmislabeling,theadditionofanincorrectingredientinaproduct,nonconformancetocustomerspecifications,orcontaminatedproducts.Inthesesituations,immediateactionmaybeessentialforprotectingthehealthoftheconsumer.

ItisforthisreasonTysonFoodsmaintainsaneffectiverecallpolicythatprovidesguidelinesforinitiating,investigating,andconductingproductrecalls.Ifwebecomeawareofasituationinwhichwesuspectaproductcouldadverselyaffectthehealthandsafetyofourconsumers,wewillinitiateavoluntaryproductrecalltocarryoutatimelyandeffectiverecoveryoftheproduct.

Inaddition,weconductmockrecallswithourprocessingfacilitiesandourdistributionteams.Mockrecallsprovideamethodologyforpracticingandevaluatingourabilitytorecallfinishedproducts,ingredients,andpackagingmaterialsinathoroughandtimelymanner.Theyalsohelpusidentifyopportunitiesforthecontinualimprovementofourrecallprocedures.

Duringfiscalyears2008and2009,weinitiatedoneproductrecall.InAugust2008,incooperationwithUSDA,wevoluntarilyrecalled51,360poundsofuncooked,foodservicechickenduetoanundeclaredsoy-basedallergenresultingfromalabelingerror.Whiletherewerenoreportedillnesseswiththisproduct,weinitiatedthisrecallasaprecautionarymeasure.Wemaintainstrictinternalcontrolsandprocedurestoprotectagainstpotentialallergenlabelingerrors.

Genetically Modified Organisms

Geneticmodificationisoftenusedincrops,suchascornandsoy,toimprovekeyproductionaspectsincludingyield,insectresistance,anddroughttolerance.Asthispracticehasbecomemorecommonandwidespread,customersandconsumershavebeguntoaskaboutthepotentialeffectsofgeneticmodificationonfoodsafety.AsnotedintheIngredientSourcingsectionabove,TysonFoods’onlyusesingredientsthatmeetthesafetyregulationssetforthbyUSDAandFDA.

TysonFoodsdoesnotcurrentlydistinguishbetweenGMOandnon-GMOwhenbuyinggrainandmealforthepurposeofblendingchickenfeed.Therehavebeendiscussionsbygrainsuppliersofsegregatingingredientsbyseedorigin;however,theproposedmethodsappeartobeinadequatetoinsurecasualcontactcanbeavoidedandthatingredientscanbeguaranteedasnon-GMO.SinceasignificantpercentoftheannualcornandsoybeancropsisofGMorigin,itislikelyweuseGMOgraininfeedforourchickens.Itisimportanttonotethatwehavenopreference,andtherearenoperformancedifferencesinGMOandnon-GMOinthemeat-conversionprocess.

Justasinourfeedingredients,themajorfinished-productingredientswithGMOquestionsarethosederivedfromcornandsoybeans.Sincesuppliersofbreadings,marinades,andspiceshaveonlyrecentlybeguntodiscusssegregationofingredients,wemustalsoassumethattheseproductscontainGMO.CommoningredientsthatcouldpotentiallycontainGMOarecornflour,cornmeal,cornstarch,cornsyrup,corngluten,soybeanoil,soyproteins,andsoymeals.

Webelievescienceissoundandsupportsthebeliefthatthecornandsoybeansusedinvirtuallyeverysegmentofthefoodindustryposenonearorlong-termhealthrisktotheconsumingpublic.Furthermore,thereisnoadvantageofanysortforTysonFoodsintheperformanceofeithersource.


Ourcommitmenttofoodsafetydoesnotendwhenourproductsleaveourprocessingfacilities.Tohelpourcustomersandconsumersmakeinformedbuyingdecisions,westrivetoprovideaccurateandreliableingredientstatementsforourfoodproducts.OurRegulatoryLabelingComplianceandProductSpecificationsgroupensuresourproductsarepackagedandlabeledinaccordancewithourcorporateproductspecificationsandregulatoryrequirementsrelatedtoingredients,productformulation,nutritioninformation,andproductclaims,suchasnatural,wholegrain,zerotransfat,andreducedfat.

ThisgroupnotonlymaintainsaworkingrelationshipwithkeyTysonFoods’businessunits,suchasresearchanddevelopment,marketing,andfoodsafetyandqualityassurance,italsomaintainscollaborativerelationshipswiththeUSDA,FoodSafetyandInspectionService,FoodNutritionService,andAgricultureMarketingServicetoassuregovernmentalapprovalsforourpackagingandlabeling.

Overtheyears,thisgrouphasbeeninstrumentalinourimplementationofkeylabelinginitiatives,includingthemandatorynutritionlabelingdictatedbytheNutritionLabelingEducationActof1993.Thisgroupwasalsoinstrumentalinthecompany’sallergenlabelingefforts.Thereareeightfoodsthataccountfor90percentofallfood-allergicreactions:milk,eggs,peanuts,treenuts,soy,wheat,shellfish,andfish.Tohelpourconsumersmakeinformeddecisions,in2001–wellaheadoftheFoodAllergenLabelingandConsumerProtectionActof2004–weproactivelyinitiatedlabelingofpackagedproductsthatcontaintheseallergens.

Whenitcomestofoodsafetyinthehome,ourconsumersareincontrol.Wearecommittedtoofferingtoolsandresourcestohelpthemsafelyprepareandserveourproductsoncetheygetthemhome.Accordingly,wehavecreatedafoodsafetyandeducationprogramcalledfoodWISE®.Thisinformationresourceprogramprovidesourcustomersandconsumerswithtipsandinformationpertainingtofoodsafety.

•WeinviteourcustomersandconsumerstolearnmoreaboutourfoodWISEprogramatwww.tyson.com.

Ifourcustomersandconsumerswouldliketoaskusquestionsaboutourproductsdirectly,weencouragethemto“AskWillie.”WillieBarber,affectionatelyknowntousasMissWillie,hasworkedinthechickenindustryformorethan20yearsandforTysonFoodsastheManagerofConsumerInformationServicessince1989.WillieandherteamofConsumerInformationServicesrepresentatives,respondtocalls,letters,ande-mailsfromourcustomersandconsumers.Theserepresentativesaretrainedtorespondtoconcernsaboutfoodsafetyandquality,nutritionalcontent,foodstorageandpreparation,andnewproductlines.Variousexpertresourcesalsosupporttheserepresentatives.ThisincludesTysonFoodsTeamMemberswithdoctoratesinchemistry,microbiology,foodsciences,andnutritionandmembersofourfoodsafetyandqualityassuranceandmarketingdepartments.

5.2 suPPorting our CustoMers and ConsuMers


Toensureadirectlineofcommunicationwithourfoodsafetyandqualityexperts,ourConsumerInformationServicesteamreportstoourcompany’sseniorvicepresidentofScienceandRegulatoryAffairs.

Ifaquestioncannotbeansweredimmediately,wewillrespondwithin48hoursviaphone,e-mail,orothercustomer-preferredmethod.Duringfiscalyears2008and2009,weheardfromapproximately230,000customersandconsumers.Themajorityoftheserequestsfocusedonthesafehandlingofourproducts,specificproductconcerns,corporateinquiries,andmarketingpromotions.Theideasandthoughtsofourcustomersandconsumersareveryimportanttous.Thisfeedbackhelpsensureweareprovidingthetaste,value,andconvenienceourcustomersandconsumerswant,andhelpsusmaintainafocusoncontinualimprovement.

Wearealsocommittedtoprovidingourcustomersandconsumerswithhelpfulinformationonmealideas,economicalproteinsolutions,andfeedingchildrenhealthyproteinproductstheylove.Atwww.tyson.com,consumerscanaccessTysonFoods’RecipeCentraland:

•Collectfivedaysofdinnerrecipes,whichchangeeachweek;

•Visitour10mostviewedrecipes;

•Findfoodtipsandtricksforkids;and

•Searchforrecipesbasedontherecipename,aspecificingredient,nutritionalrequirements,orthemealtypeoroccasion.

Allrecipesfeaturedonwww.tyson.comarepresentedwithnutritionalinformationbasedonservingsize.Eachrecipeisalsopresentedwithtimeestimatesrelatedtopreparation,marination,andcooking,aswellasservingsuggestionsandsubstitutiontips.Consumersalsohavetheopportunitytotelluswhattheythinkofourrecipesbysimplychoosingfromfivestars(verygood)toonestar(notverygood)andselecting“RateIt!”Theaverageofallvotesbecomestheratingfortherecipe.


TysonFoodsisdedicatedtodevelopingabest-in-class,value-addedproductportfoliothatmeetstheneedsoftoday’schangingmarket.Byapplyingin-depthunderstandingofconsumerandcustomerneeds,analyticalskills,andstrategicthinking,wearepositionedattheforefrontofproductinnovation.Wewillcontinuetodemonstrateourcommitmenttoresearchanddevelopmentbycreatingnewandrelevantfoodsolutionsforyearstocome.

Discovery Center

InJanuaryof2007,weopenedthe100,000square-footDiscoveryCentertoenhanceourabilitytodevelopnewfoodsolutionsandbringthemtomarketfaster.TheDiscoveryCenter,locatedatTysonFoods’WorldHeadquartersinSpringdale,Arkansas,isthefocalpointforthedevelopmentofinsights,people,processes,andnewandinnovativeproducts.BringingtogetherTysonFoods’proteinresearchanddevelopmentintoasinglelocation,theworkspacewasdesignedtomaximizecommunicationandcollaborationwithknowledgeappliedacrosschicken,beef,andpork.BelowareseveralkeyhighlightsabouttheDiscoveryCenter.

Research Kitchens

TheDiscoveryCenterincludes19specializedresearchkitchensutilizing20,000squarefeetofcustom-designedspaceequippedspecificallyforthebusinessunitsandcustomerchannelsweserve.Allkitchensweredesignedformaximumtechnicalflexibilityandculinary

effectiveness,allowingourproductinnovatorstoworkinreal-worldenvironments.

Bydesign,thekitchenscanbecustomizedtomeettheneedsofanycustomer.Eachkitchencontainslightingandotherequipmentthatsimulatesthefoodserviceorretailfoodenvironments.Someofthekitchensareequippedwithoverheadcamerasandrecordingdevices.ThisgivesTysonFoodstheabilitytoallowcustomersandourmarketingandsalesTeamMembersaccesstoproductreviewsandfooddemonstrationsfromanylocationintheworld.

USDA-Inspected Pilot Plant

TheDiscoveryCenteralsoincludesa40,000-square-footmulti-protein,USDA-inspectedpilotplant.Theplantprovidesarealworld“testingground”toevaluatenumerouselementsintheproduct-developmentprocess.Inthisuniquefacility,wehavetheabilitytoreplicatenearlyeveryproductionprocessusingtheexactequipmentfoundinourprocessingplants.

Thepilotplantalsoeliminatesthedisruptions,inefficiencies,and“translationerrors”thatcanoccurduringnew-producttestingatproduction-planttrials,andreducestravelexpensesfor

TeamMembersinvolvedwithin-planttrials.Inkeepingwithbestpracticesforthesafetyofourguestsandourproducts,thepilotplantoffersaviewinggallerythatallowscustomersandgueststoobserveseveralsegmentsofpilotplantactivitywithoutenteringafood-safeenvironment.

Consumer Center

Whendevelopinganewproductorevaluatingtheuseofdifferentingredientsinacurrentproduct,itisimportanttoknowthethoughts,ideas,perceptions,andpreferencesoftheconsumer.TheDiscoveryCenteroffersanewConsumerSensoryPanelareaandConsumerFocusGrouplearningcenter.Theseareasprovidethecompanywithanopportunitytogainconsumerinsightpriortothereleaseofaneworimprovedproduct.

TheConsumerSensoryPanelareaincludes12individualsensorybooths.Theseboothsallowinternal,external,andexpertparticipantstosampleandevaluatesingleormultipleproductattributesincludingvisual,texture,taste,andaroma.Theparticipantsarethenabletoentertheirresponsesintoacomputer-basedsensoryevaluationsystem.OurR&Dteamcanthenquicklytabulateandevaluatetheresponses,resultinginaquickerproductdevelopmentprocess.

TheConsumerFocusGrouplearningcenterallowsforin-depth,one-on-oneorgroupdiscussionsregardingthemarketingactivityofanewproduct.Participantsarequeriedonvariousaspectsofaproposednewproduct,or

5.3 ProduCt researCH and develoPMent


changestoanexistingproduct,togainconsumerinsights.Theabilitytolistendirectlytotheend-usertohelpcreatenewproductsiswhatenablesustomeettheneedsoftoday’schangingmarket.

Our Research and Development Staff

TheDiscoveryCenterishometothe120foodscience,productdevelopment,andculinaryprofessionalswhoarepartofourResearchandDevelopmentteam.Morethan40oftheseprofessionalsholdadvanceddegrees,including14withPhDs.Wehave16culinologistsonstaff,withanother50technologistsintrainingtobecomeResearchChefAssociationCertifiedCulinologists.Thistrainingprogram,developedbyJohnsonandWalesUniversityandtheUniversityofArkansas,isconductedonthecampusoftheUniversityofArkansastoeliminatetheneedfortravel.Thiswillallowtheproductdevelopmentteamtohaveawell-roundedunderstandingofboththeculinaryaspectandthecommercialviabilityofproducingaproduct.

New Product Development

Ourcurrentresearchindicatesmanyconsumersarelookingfordelicious,affordable,andhealthyproteinmealsolutions.Belowareexamplesofrecentproductreleasesdesignedtomeetconsumerneeds.

•Inearly2009,wereleasedourfoodserviceTyson®Right Size™Fillets.Madewithwhole-musclebreastmeat,thesebreadedandfullycookedfilletsareidealforbreakfast,lunchormiddaysnackmenuoptions,keepingconsumerseatingwellalldaywithinabudget.

•OurTrimmed and Ready®freshchickenisalineofpremiumcuts.Eachishandtrimmedandselectedtodeliverthehighestquality.Thereisnoadditionaltrimmingorhandlingrequiredbytheconsumer.

•Any’tizers®snacksarealineoffrozenappetizersreadyinjustminutes.Any’tizerssnackscanbeusedintheafternoon,asalightmeal,orasanappetizerforagathering.RecentadditionstoourAny’tizerslineincludefournewbolditemsthatallowtheconsumertoaddaslittleorasmuchoftheprovidedsaucepacketstotheAny’tizersproductastheywant.

•Wearealsorespondingtoconsumerdemandforminimallyprocessedfoodswithnoartificialingredients.Forexample,ourTysonNuggets,Patties,Tenders,andIndividuallyFrozenSplitCornishGameHensare100% All Natural.Theycontainnoaddedtransfat,noartificialingredients,nopreservatives,nofillers,andareminimallyprocessed.

Product Innovation Recognitions

TysonFoods’commitmenttoinnovationisevidencedbytheprestigiousproductinnovationrecognitionsandawardswereceive.

•TysonFoodsrankednumberoneintheCannondaleAssociates2008FoodservicEliteCompositeManufacturerRankingsforthesixthconsecutiveyear.

•Forthesecondconsecutiveyear,oneofournewproductsfinishedinthetopthreeforPrepared Foods Magazine’sSpiritofInnovationAwards.Our“tangle-shaped”andlightlybreadedchickenstriptookhomesecondplaceintheFoodserviceCategoryasMostInnovativeNewProduct.

•OurYankeePotRoastreceivedtheNebraskaBeefCouncil2008BestNewBeefProductaward,andourMongolianStyleBeefKitwithVegetablesreceivedthesameawardin2009.


Ensuringthesafetyandqualityofourfoodproductsisonlyoneaspectofourcommitmentto“feeding our families, the nation, and the world with trusted food products.”Werecognizehealthandwellnessarealsoimportanttoourcustomersandconsumers,andthereisgrowinginterestinissuessuchaschildhoodobesityandhearthealth.Assuch,wearecommittedtoprovidingfoodproductsthatcontributetoahealthylifestyleandoffergreattasteandconvenienceforourcustomersandconsumers.

Ourcorporate-basedNutritionTeam,whichincludesbothregistereddietitiansandadvanced-practicenutritiontechnicians,createsandmaintainsnutritiondataforourproducts.Thisteamassuresourcompany’scompliancefornutritionlabeling,providesnutritionalguidanceduringnewproductdevelopment,createsandmaintainschild-nutritionsummariesforschoollunchandgovernmentfeedingprograms,andtrackscurrentandemergingnutritiontrends.OurNutritionTeamprovidesresponsestocustomerandconsumerinquiriesregardingnutritionalguidance,potentialallergens,andingredientinformation.

TysonFoodsoffersawiderangeofproteinchoicesthatincludesfresh,enhanced,andmarinatedchicken;beefandporkproducts;cannedchicken;andfullycookedproductstomeettheneedsoftoday’sconsumers,includingthosewatchingtheirintakeofcalories,sodium,totalfat,andtransfat.TheNutritionFactsPanelonourretailpackagesprovidesinformationforconsumerstohelpthemmakehealthfulchoices.Asrequired,thepaneloffersdetailsaboutsuchthingsasthefat,sodium,calorie,andcarbohydratelevelsofourproducts.Belowareexamplesofproductsthatoffercustomersandconsumersmorehealthfulfoodoptions.

100% All Natural

Wearerespondingtocustomerandconsumerdemandforallnaturalfoodswithnoartificialingredients.Forexample,ourTysonNuggets,Patties,andTendersare100% All Natural.Asshownontheproductpackaging,theseproductsareminimallyprocessedandcontainnoartificialingredients,nopreservatives,andnofillers.

5.4 ProMoting nutrition and HealtH


Removal of Trans Fat

Keepingwithourtraditionofbeingfirsttooffercutting-edgeinnovation,webegantheprocessofremovingtrans-fatingredientsfromourfullycookedbreadedpoultryretailproductsin2004.Wemadethismoveinresponsetoconsumerandoperatorinterestinproductswithreducedtrans-fatcontent.Whilechickenproductsarenaturallylowintransfat,itcanbefoundincertainaddedingredients,suchasbreadingandcookingoils.ItisforthisreasonTysonFoodsdecidedtoreformulateitsentirebreadedpoultryportfolio.In2005,wecompletedtransfatremovalfromourretailfullycookedbreadedpoultryproductsandour“childnutrition”schoolfoodserviceproducts.Sincethe2007completionofouradditionalschoolfoodserviceitemreformulations,ourcompany’sentirelineofbrandedchickenproductscontainzerogramstransfatperserving.

Reducing Sodium

Recognizingthatmanyofourconsumersareactivelyengagedinpreventingandmanaginghealthconditions,TysonFoodsiscommittedtoprovidingfoodsolutionstohelpmeettheirgoals.Aspartofourcontinuingeffortstoprovidehealthfulfoodoptions,wehaveacorporate-wideinitiativefocusedonwaystolimittheuseofsodiuminourmeatandpoultryproductswithoutsignificantlyimpactingflavor.Thisinitiativeincludestheuseoftoolstohelpformulatenewandexistingproductsthatsupportourpositiononhealthandwellnessandsodiumreduction.Inaddition,weareworkingwithourFoodServicecustomerstoprovidelowersodiumproductstohelpwiththeirmenuplanning.

Children’s Nutritional Needs

AtTysonFoods,weputourheartsintocreatingthesafest,mostwholesomeproductsavailable,includingthoseweproduceforourFoodServiceK12schoolbusiness.Tyson®productsareperfectforschoolbreakfast,lunch,andsnackprograms.Infact,withTyson® Kid Tested, Kid Approvedproductsontheirmenus,schoolscanfeelconfidentservingproductsstudentslove.Wetastetestnewchickenandbeefproductswithstudentstogettheirfeedback.Thisprovenprocessallowsustoofferkid-endorsedproductsthathelpincreaseaschool’saveragedailyparticipationintheirmealprogram.

OurFoodServiceproductsforschoolsprovideacombinationoftastes,menuvariety,andfunkidswant,withthevalue,quality,consistency,andnutritiontheyneed.Asacompany,wehaveremovedallman-madetrans-fatingredientsfromourFoodServiceproductsforschools.Wehavedevelopedanutritionalplatformfornewproductdevelopment,whichensureslessthan35percentoftheproduct’stotalcaloriescomefromfatandthatthesodiumcontentperservingis400milligramsorlessperserving.

Studiesshowthateatingwholegrainsinsteadofrefinedgrainslowerstheriskofmanychronicdiseases.Whilebenefitsaremostpronouncedforthoseconsumingatleastthreeservingsdaily,somestudiesshowreducedrisksfromaslittleasoneservingdaily.Weofferbreadedchickennuggetsandpatties,eachwitheightgramsofwholegrainperserving,thatcarrytheWholeGrainStampfromtheWholeGrainCouncil(www.wholegrainscouncil.org/).Byincorporatingwhole-grainbreadinginourchickenproducts,itiseasierforchildrentoincreasewhole-grainintakeasencouragedbythe2005DietaryGuidelines.

Belowareexamplesofnewproductswelaunchedinfiscalyear2009fortheK12program.

•Tyson®AllNaturalChickenChunksmeetUSDAguidelinesfor100-percentall-naturallabeling.Thesechickenchunksareminimallyprocessedwithnoaddedflavorsoringredients.

•Tyson®Hot&SpicyWholeGrainChickenChunksofferninegramsofwholegrainperserving.

•OurFreshTyson®Burgeroffersstudentsanauthenticflame-broiled-tastingburgermadefromdomesticbeefthatis85-percentlean.

•OurMexican Original® Original Wraps®WholeGrain10-inchPressFlourTortillaWrapsprovide31gramsofwholegrainperserving.

Infiscalyear2009,webecametheonlybeefprocessortoparticipateintheUSDAAgriculturalMarketingServicesBeefPilotProcurementProgram.Throughouruniqueprocessfromprocurementtoproduction,weareabletoprocessfreshbeef,ondemand,fivedaysfromanimalharvestasopposedtoafrozen


commodityburgerthatismadefromfrozenbeefwhichcantakeupto90daystoprocessandisfrozenandthaweduptothreetimes.TheFreshTyson®Burgerismadefromfreshbeefthatisprocessedinaslittleastwohoursandisfrozenasingletime.

WealsoworkcloselywiththeUSDACommodityProgramandtheUSDAagenciesatthefederalandstatelevelthroughtheFood&NutritionServices,FarmServiceAgency,AgricultureMarketingService,andFoodSafetyInspectionService,alongwithstatedistributingagenciesthroughstateandregionaloffices,toensuresafe,healthy,high-qualityfoodsforschoolnutritionprograms.Theseeffortshavealsobroughtmoreefficientandeconomicalsolutionstoschoolnutritionprograms.Forexample,whenschoolnutritiondirectorschooseTysonFoodstodiverttheirUSDAcommoditychickenandbeefintofoodskidsandteenswant,ourefficientsupplychainallowsdirectorsandschoolstosaveupto$10percaseofproductpurchased,decreasetheirstoragecosts,andbettermanagetimelyproductdeliveries.

Weareanactive,longtimesponsorandelectedboardmemberoftheSchoolNutritionAssociation,anational,nonprofitprofessionalorganizationrepresentingmorethan55,000memberswhoprovidehigh-quality,low-costmealstostudentsacrossthecountry.Specifically,theassociationensuresallchildrenhaveaccesstohealthfulschoolmealsandnutritioneducationby:

•Providingmemberswitheducationandtraining;

•Settingstandardsthroughcertificationandcredentialing;

•Gatheringandtransmittingregulatory,legislative,industry,nutritional,andothertypesofinformationrelatedtoschoolnutrition;and

•Representingthenutritionalinterestsofallchildren.

Toassurethatoursalesandmarketingprofessionalsarewellentrenchedintheschoolfoodserviceworld,wemaintainresearchanddevelopmentTeamMembersonourSchoolFoodServiceTeam,andeightofourSchool

FoodServiceTeamMembershaveearnedSchoolNutritionSpecialistcredentialsthroughtherigorousSNAoperatorcredentialingexamination.LearnmoreabouttheSchoolNutritionAssociationatwww.schoolnutrition.org.

ThroughthefoodWISE For Me™program,whichispartoftheTysonFoodsfoodWISE®educationalprogram,wehelpschoolscreatehealthymealsforstudentswhileincreasingstudentparticipationintheirschoolmealprograms.WealsoofferschoolfoodservicetrainingthroughTyson University™training.Tyson Universitytrainingisamultiple-daylearningexperiencefeaturingaccreditedtrainingcoursesandschoolfoodservicespecificcurriculum.Tyson Universitytrainingcoversvarioustopicssuchascommodityprocessing,wellness,nutrition,procurement,operations,andmanagementforschoolfoodservicedecisionsmakers.LearnmoreaboutthefoodWISE For MeprogramandTyson Universityatwww.tysonK12.com.


Ourprincipalmarketingobjectiveistobetheprimaryproviderofchicken,beef,pork,andpreparedfoodsproductsforourcustomersandconsumers.Assuch,weutilizeournationaldistributionsystemandcustomersupportservicestoachievetheleadingmarketpositionforourproducts.Onanongoingbasis,weidentifydistinctivemarketsandbusinessopportunitiesthroughcontinuousconsumerandmarketresearch.

Inadditiontosupportingstrongregionalbrandsacrossmultipleproteinlines,webuildtheTyson®brandprimarilythroughwell-defined,product-specificadvertisingandpublicrelationseffortsthatarefocusedtowardkeyconsumertargetswithspecificneeds.TheseeffortsaredesignedtopresentkeyTysonFoods’productsaseverydaysolutionstorelevantconsumerproblems,therebygainingadoptionintoregulareatingroutines.Further,weuseacoordinatedmixofactivitiesdesignedtoconnectwithourcustomersandconsumersonbothrationalandemotionallevels.

Wedonotsellproductsthatarebannedincertainmarketsorproductssubjecttostakeholderquestionorpublicdebate.Pointofsaleandmarketingmaterials,aswellasadvertisements

usedbyallTysonFoods’businesses,receivethoroughinternalbusinessunitandlegalreviewtoensuretheaccuracyofeveryclaimmade.WeadvertiseinaccordancewithguidelinesfromtheFederalTradeCommission,aswellasthelabelclaimsshownonourproducts,whichareapprovedbytheU.S.DepartmentofAgricultureFoodSafetyInspectionService.

Ourprintadsaretargetedtoadults,includingparentsandsingle-personordual-personhouseholdswhopreparemealsathome.Westrivetoplaceourtelevisionadvertisementsingeneral-audienceprogrammingthatisfreefromgratuitousdisplaysofviolence,sex,andprofanity.Additionally,westrivetoensureourtelevisionadvertisementsareairedduringprogrammingthatdoesnotdisparageanyreligious,ethnic,orpoliticalgroupanddoesnotimplythecompanysupportsspecificpointsofview.WedonotadvertisetochildrenandwehavepoliciesinplacethatpreventchildrenfromprovidingpersonalinformationviaourWebsite.

5.5 resPonsible MarKeting and advertising


Producingasafe,nutritiousfoodproductbeginswithensuringthehealthandwell-beingoftheanimalsweraiseandprocess.TysonFoodshasalong-standingcommitmenttothewell-beingandproperhandlingoftheanimalsusedinitsfoodproducts.ItisanexpectationexpressedinourCoreValues,whichcallforusto“serve as stewards of the animals, land, and environment entrusted to us.”Thisisnotonlytherightthingtodo;itisalsoanimportantmoralandethicalobligationweowetooursuppliers,customers,ourselves,andmostimportantly,totheanimalswedependonforourproductsandourlivelihood.

Ourcommitmenttoanimalwell-beinghelpsusmaintainthecriticalbalancebetweenensuringtheneedsofouranimalsaremetandprovidingourcustomersandconsumerswiththequalityfoodproductstheydeserve.CLICKHEREtoreviewourAnimalWell-BeingMissionStatement.

Our Office of Animal Well-Being

Aspartofourcommitmenttoanimalwell-being,weestablishedtheOfficeofAnimalWell-Beingin2000.KellyePfalzgraf,DVM,directsthisofficeandouranimalwell-beingprograms.Dr.Pfalzgrafhas34years’experienceinfoodanimalveterinarypractice.HeservedasaVeterinaryMedicalOfficerforU.S.DepartmentofAgriculture(USDA)FoodSafetyandInspectionServices(FSIS)inaporkslaughterfacility,andreceivedtrainingfromvariousspecialistsinthefieldofanimalwell-being,includingtheinternationallyrecognizedexpertDr.TempleGrandin.

InadditiontohisresponsibilitiesforTysonFoods,Dr.Pfalzgrafservesonnumerousanimalwell-beingcommitteesacrosstheindustry.Assuch,heisrecognizedasanindustryexpertintheareaofanimalwell-beingandregularlyprovidesguidanceandconsultationtomanyretail,foodservice,andtradeassociations.

Specifically,theresponsibilitiesofthisofficeinclude:

•Advisingourexecutiveandmanagementteamsonanimalwell-beingissues,andworkingdirectlywithcustomersandtradegroupsontheseissues;

•Advisingproducerorganizationsinthedevelopmentofanimalwell-beingguidelines,self-assessments,auditcriteria,andthedeterminationofacceptablelimits;

•Performingrandomanimal-handlingauditsatTysonFoods’slaughterfacilities,andtrendingmonthlyinternalauditresults;

•Developinganimalwell-beingtrainingvideosandwrittenmaterials,andensuringfacilitiesconducttrainingsessionswithTeamMembersthathandleliveanimals;and

•Presentingprogramsanddescribingcompanyandindustryanimalwell-beingpracticestoprofessional,producer,customer,andconsumergroups.

5.6 aniMal Well-being


Animal Well-Being Programs and Practices

Wehavedevelopedandimplementedanimalwell-beingprogramsandpracticesforallsegmentsofourbusiness:chicken,beef,andpork.TheprogramsconsistoftrainingforTeamMembersthathandleandworkwithliveanimals;on-goingprocessmonitoring;andinternalandthirdpartyauditsandreviews.Whiletheseprogramsandpracticesdifferbasedontheanimal,webelievetheydemonstrateourproactivecommitmenttotheproperrearing,handling,andslaughterofchickens,andthehandlingandslaughterofcattleandswine.Belowareexamplesofspecificprogramsandpracticeswehaveimplemented.

Chicken Well-Being

AllTeamMembersworkingwithlivechickensarerequiredtoattendannualchicken-handlingclasses.TheymustsuccessfullypassawrittentesttoassuretheirunderstandingofproperhandlingtechniquesandsignanagreementtocomplywiththeTysonFoodschickenwell-beingrequirements.Postersandsignsarepostedinvariousareasthroughoutourfacilities

toremindTeamMembersofourcommitmenttoanimalwell-being.TeamMembersfoundinviolationofanyoftheserequirementsaresubjecttodisciplinaryaction,uptoandincludingtermination.

Additionally,bestpracticesystemassessmentsandchicken-handlingauditsareimplementedinourhatcheriesandchickenslaughterfacilities.Facilitymanagementteamsconductweeklychicken-handlingwell-beingauditsinaccordancewiththeNationalChickenCouncil’sAnimalWelfareGuidelinesandAuditChecklist,andfacility-basedFoodSafetyandQualityAssurancetechniciansconductmonthlychicken-handlingwell-beingverificationauditsinourslaughterfacilities.Inaddition,auditsareconductedannuallybyvariouscustomersaswellasprofessionalauditingcompaniestrainedinanimalwell-beingauditing.Allauditresults,includingbothinternalandexternalresults,aresenttoourOfficeofAnimalWell-Beingformonitoringandtrendanalysis.

Beef and Swine Well-Being

TeamMembersworkingwithliveanimalsmustbeTrainedAnimalHandler(TAH)Certified.Thiscertificationconsistsofafour-stageprogramrequiringcompletionofaprofessionallydevelopedtrainingclassonanimalhandlingandstunning.CertifiedTeamMembersmustsuccessfullypassawrittentesttoassuretheirunderstandingofproperhandlingtechniques,andsignanagreementtocomplywiththeTysonFoodsbeefandswinewell-beingrequirements.Annualrecertificationisrequired.Aswithourchickenwell-beingprogram,TeamMembersfoundinviolationoftheserequirementsaresubjecttodisciplinaryaction,uptoandincludingtermination.

WealsomaintainRiskAssessment,Control,andEvaluation(RACE),aprogramthatislikeaHazardAnalysisandCriticalControlPoint(HACCP)programforanimalwell-being.Theseprograms,coupledwithoversightreviewsfromourinternalcorporatemanagementteam,areoverandabovetheregulatoryrequirementsofUSDAasmandatedintheHumaneSlaughterActof1978.


Wealsomaintainanextensiveanimalwell-beingcommunicationandauditprograminourbeefandporkprocessingplants.Thisincludes:

•ThepostingofsignsinanimalreceivingandhandlingareasremindingTeamMembersofourcommitmenttoanimalwell-being;

•Videosurveillanceofanimalhandlingandstunningareas;

•Insensibilityauditsatkeyareasareconductedbyfacilitymanagementoneveryshift;

•Eachslaughterfacilityhasaninternalanimalwell-beingteamthatreviewsauditresultsandimplementsenhancementstoimproveanimalhandlingpractices;

•Facilitymanagementconductsquarterlyyard-conditionanddriver-transportationaudits;

•Weeklyinternalanimalwell-beingauditsateachbeefandporkprocessingplantconductedinaccordancewiththeAmericanMeatInstitute’sAnimalWelfareGuidelines;

•Facilitymanagementperformssemi-annual,in-depthanimal-well-beingaudits,andthe

resultsoftheseauditsarereportedtocompanyexecutives;

•TysonFoods’OfficeofAnimalWellBeingconductsrandom,in-depthslaughterfacilityauditsforanimalhandlingannually,consultingonanyissuesidentified;and

•Third-partyauditsareconductedroutinelybyindependentprofessionalstrainedinanimalwell-beingauditingpractices.

Inaddition,weengagewithouranimaltransportationpartners,independentchickenproducers,andvariousindustryassociationstopromotefurtherprogramsandpracticesaimedatanimalwell-being.Becausewepurchaseourbeef,andmostofourpork,fromindependentproducersontheopenmarket,wehavelesscontroloftheseanimals’well-beingpriortoprocessing.Westillstrive,however,toensuretheirwell-beingismaintainedfromthefarmtoourfacilities.Forexample,weonlybuyhealthyanimals.Additionally,weprovidemanualswhichrecommendgoodmanagementandwell-beingpracticestothedriverswhotransportliveanimalstoourplants.Wealsohave

managementpositionscertifiedtotraindriverswhohaulswineintheTruckerQualityAssuranceprogramdevelopedbytheNationalPorkBoard.

Key Animal Well-Being Topics Raised by Stakeholders

Wearecommittedtoevaluatingandmanagingtheanimalwell-beingissuesofgreatestconcerntoourstakeholders.Belowweprovideinsightintoourmanagementapproachregardingsomeofthemostcommonquestionsorconcernsraisedbyouranimalwell-beingstakeholders.

Housing of Broiler and Breeder Chickens

Wedonotraiseourbroilerchickensincagesorourbreederchickensthatlaytheeggsthathatchandbecomethebroilersforourfoodproducts.Bothourbroilerandbreederchickensareraisedinopenbarnsor,aswecommonlyrefertothem,houses.Thesehousesofferadequateventilationandlighting,asmostareequippedwithcurtainsthatareraisedduringgoodweather,allowingfornaturallightandfreshair.Theyarealsoequippedwithautomatedsystemsthatdeliverfeedandwatertothechickensonanas-neededbasis.Thefloorofa


houseiscoveredwithplant-basedmaterials,suchasricehulls.Thehousesprovideacomfortableenvironmentinwhichthechickenscanmovefreelywithprotectionfrominclementweather,extremetemperatures,disease,andpredators.Wemaintainstrictpoliciesregardingthelocation,size,andstockingdensityofthehousesusedtoraiseourchickens,forbothcompany-ownedhousesandindependentproducerhouses.Thesemeasuresarecriticaltoensuringthehealthandbiosecurityofourchickensandthequalityofourfoodproducts.

Gestation Stalls for Sows

Wemakeanimalwell-beingdecisionsbasedonbestavailablescientificresearchandtherecommendationsofanimalwell-beingexpertsintheindustry.Currentinformationindicatesthereareseveraltypesofproductionsystemsthatarefavorableforpigs,includingopenpens,gestationstalls,andopenpasture.Accordingtopublishedstudies,themostimportantconsiderationistheindividualcaregiventoeachanimalandthecaretaker’smanagementandhusbandryskills,regardlessofthesystemused.Furthermore,theAmerican

VeterinaryMedicalAssociationandtheAmericanAssociationofSwineVeterinarianshavereviewedtheexistingscientificliteratureongestationalsowhousingandhavepublishedpositionstatementsthatconcludedindividualandgrouphousingsystemsbothhaveadvantagesanddisadvantages.Forthisreason,wewillcontinuetopurchasepigsfromproducersusingbothindividualandgrouphousingsystems,whilewecontinuetomonitorthescientificliteratureregardinggestationhousing.

Physical Alteration of Chickens

Aswithmanyanimalsthatliveortravelinflocksandherds,broilerchickensnaturallyestablisha“peckingorder.”Thisnaturalbehaviorcanleadtoinstancesofundesirablebehaviorssuchasinjuriouspeckingandclawing,andsometimescannibalism.Wedonotpracticebeaktrimmingortoetrimminginbroilers,nordoourindependentpoultryproducers.Instead,wecarefullymonitortheconditionsandstockingdensitiesofourcompany-ownedandindependentproducerbroilerhousestominimizefighting,featherpecking,andothernegativebehaviors.

Stunning Methods

Wecontinuetoevaluateoptimalmethodsforstunninganimals.In2006,weconcludedastudyevaluatingtheeffectivenessofControlledAtmosphereStunning(CAS).Duringthestudy,weconsiderednumerouskeyfactorsincluding,butnotlimitedto,animalwell-bring,foodsafety,productquality,workplacesafety,andotheravailablescientificresearch.Basedonourstudy,webelieveCASmaybeanacceptablealternativetoconventionalelectricalstunning;however,wedonotconsiderittobemorehumane.

Safe Transport

Thetransportofanimalstotheprocessingplantisanimportantanimalwell-beingissue.Researchshowsthat,inadditiontonumerouswell-beingbenefits,carefulandquietanimalhandlingduringloading,transport,andunloadingcanproducemeatqualitybenefitsaswell.Itisforthesereasons,inthespringof2010,wewillimplementtheAmericanMeatInstituteTransportationAuditGuidelinesforCattleandHogsatallourbeefandporkprocessing


facilities.Theseguidelinescontaintwosetsofauditcriteriarelatedtoanimalwell-beingduringtransport.Thefirstsetofauditcriteriaevaluatesaprocessingfacility’spoliciesandpreparednessforreceivinganimalsincludingminimizationofwaittime;weather,environmentalandemergencymanagementplans;acceptablehandlingtools;non-slipflooring;adequatelighting;andthestaffavailabletoreceiveanimals.Thesecondsetofauditcriteriafocusesontheset-up,loadingandunloading,timelyarrival,andconditionofthetrailersusedtotransporttheanimalstotheprocessingfacility.Webelievetheimplementationoftheseguidelineswillbetterenableustoidentifyopportunitiesforcontinualimprovementwithregardstotheloading,transport,andunloadingofourcattleandhogs.

Chicken Health

TysonFoodsworkshardeverydaytoearnandmaintainconsumertrust.Weknowthatthehealthiestchickensproducethebestproducts.Wealsoknowthatanimalhealth,justlikehumanhealth,dependsonahealthydiet,good

preventivehealthpracticesandasafeandcomfortableenvironment.Westrivetoprovidealloftheseelementstoourchickens,allofthetime.Wedothisincooperationwithmorethan5,700familyfarmswithwhomwecontracttoraiseourchickens.Andweemployspeciallytrainedandlicensedveterinarianstoguideourbreeding,feedingandwell-beingpracticestobesurewearefollowingthelatestprofessionalguidance.

TysonFoodsonlyusesfeedingredientsapprovedbytheU.S.FoodandDrugAdministration(FDA)andadministersthemonlyaccordingtoveterinaryassessmentsandunderveterinarysupervision.Eachflockofbirdsandgrow-outlocationtypicallyhasdifferentanimalhealthneeds.Asaresult,wemayusedifferentanimalhealthproductsandfeedformulationsatdifferentlocations,accordingtothebirds’needs.Justlikeourfinishedproductrecipes,ourfeedformulationsareproprietaryandmayvaryfromcomplextocomplex,andevenseasonally.Wedonotdisclosespecificfeedformulationsforspecificgrow-outlocationstothepublic.However,wecansaythatallFDA-

approvedantibioticsandantimicrobialsmaysometimesbeusedbyTysonFoodsforthewell-beingofourchickens.

TysonFoodsalsocomplieswithfederalregulationsprohibitingtheuseofaddedhormonesorsteroidsinanychickenproduct.

Cattle and Hog Health

TysonFreshMeatsiscommittedtoproducingwholesome,unadulteratedmeatproductsforconsumers.Whilewedonotraiseourowncattleorhogs,wedopurchaselivestockfrommultipleindependentfarmers,andweforgepartnershipswiththoseproducers,dealers,andmarketerstoachievethegoalofsafe,wholesomefoods.

ItisaviolationofFederalFood,DrugandCosmeticAct(FFDCA)toselllivestockforslaughterthatmaycontaindrugresiduesorchemicalsthatexceedtolerancesinmeatestablishedbytheU.S.FoodandDrugAdministration(FDA).TheU.S.DepartmentofAgriculture’s(USDA)FoodSafetyInspectionService(FSIS)ResidueMonitoringProgramtestsmeatandanimalorganstoensurethat


livestockproducershavefollowedsafeproductionmethodsregardinganypharmaceuticaluse.USDAinspectorsvisuallycheckeachanimalatthepackingplantforsignsthattheyweremanagedwithsafeproductionmethodsregardinguseofveterinarydrugsandhormones.Intherareinstanceofaviolativedrugresiduefinding,theanimal’scarcassandallpartsarecondemned.Insuchcases,USDAnotifiesFDAoftheviolation,andFDAinturncontactsthelivestockproducer.

TysonFreshMeatssupportstheeffortsoftheNationalCattlemen’sBeefAssociation(NCBA)andtheNationalPorkProducersCouncil(NPPC),whichstresstheimportanceofproducerscontrollingdrugresiduesintheirlivestock.Aunifiedcommitmenttoanimalhealthhelpsmaintainthecriticalbalancebetweenensuringtheneedsofouranimalsaremetandprovidingourcustomersandconsumerswiththequalityfoodproductstheydeserve.

Cloned Livestock

TysonFoodscurrentlyhasnoplanstopurchaseclonedlivestock,asitwilllikelybealongtimebeforesuchanimalswouldevenbeavailableformarket.Anymeasuresweultimatelytakewillbeguidedbygovernmentregulationsandthedesiresofourcustomersandconsumers.


TysonFoods’directandindirecteconomicimpactsareanimportantaspectofourcompany’ssustainabilityperformance.Werecognizeourfinancialperformancecanbebothpositivelyandnegativelyinfluencedbykeyfactorswhichinclude:

•Commoditypricesandtheavailabilityofrawmaterials;

•Marketdemandandthepriceswereceiveforourproducts;

•Livestocksupplyandconditions;

•TeamMemberrelations;

•Productsafetyandquality;

•Domesticandinternationalgovernmentregulations;and

•Factorsorforcesbeyondourcontrol,suchasnaturaldisastersandextremeweather.

Toensureoureconomicimpactsarepositive,wearecommittedtocapitalizingonstrategicopportunitiesandtoaggressivelymanagingpotentialrisks.Wearecommittedtoconductingourbusinessinaccordancewithbestpracticesincorporategovernance,andtopreservingandenhancingourrelationshipwithourshareholders.

Moreover,withourtalented,diverse,andhigh-performingteam,westrivetodriveperformanceinawinning,highlyaccountableculture

reflectiveofourCoreValues.Forexample,wearefindinginnovativewaystoconvertanimalbyproductsintohigh-margincommercialproducts,andwearecommittedtobuildingamultinationalenterprise.Weseeourengagementinthepolicyandpoliticalprocessasanimportantpartofcorporatesustainability,andweworkdiligentlyonregulatoryandlegislativepolicyissuesthatcanimpactourbusiness.Inshort,atTysonFoods,wearefullycommittedtoourCoreValuestatement:“We strive to earn consistent and satisfactory profits for our shareholders and to invest in our people, products, and processes.”

6.0 ProFits


TysonFoodsiscommittedtobestpracticesincorporategovernance.Webelievemaintainingqualified,independentdirectorsontheBoardofDirectorsisanintegralpartofeffectivegovernance.ThefunctionsofChairmanoftheBoardofDirectorsandChiefExecutiveOfficer(CEO)havebeenseparatedsince2006.TheBoardhasappointedanon-managementleaddirectortopresideoverexecutivesessionsoftheindependent,non-managementdirectors.

Corporate Governance

Since1998,thepercentageofindependentdirectorshasincreased,whiletheoverallsizeoftheBoardhasdecreased.Oftheninedirectorscurrentlyserving,sixareindependent.Additionally,attheendofDecember2009,wehadfivefemalesandsevenminoritiesservingonourgovernancecommittees,andonefemaleandthreeminoritiesservingontheBoardofDirectors.OftheTeamMembersservingontheBoardandgovernancecommittees,twentyarebetweentheageof30and50,andthirteenareovertheageof50.Wealsomaintaintenexecutiveofficersofthecompany.Oftheofficerscurrentlyserving,fourarebetweentheagesof30and50;sixare50orolder.Oneisfemale,andoneisaminority.

Director Qualifications and Nominations

TysonFoodsvaluesthediversethoughts,backgrounds,skills,andcharacteristicsofourdirectors.Asapartofthegovernanceandoversightprocess,theNominatingCommitteeisresponsibleforidentifying,evaluating,andrecommendingindividualsqualifiedtobedirectors.Whiletherearenospecificminimumqualificationsthatapotentialnomineemustpossess,theNominatingCommitteeselects

directornomineesfor,butnotlimitedto,theirintegrity,independence,diversityofexperience,businessorotherrelevantexperience,leadership,andtheirabilitytoexercisesoundjudgment.Ourcompany’scurrentdirectorsbringbroad-basedexperiencerelatednotonlytofoodproductionbutalsoinvestments,healthcare,education,andmarketing.

Ifneeded,theNominatingCommitteewilldrawontheexpertiseofthemanagementandcorporatestaffand,whenappropriate,mayhireoutsideadvisorstoassistintheidentificationandevaluationofdirectorcandidates.Inaddition,theNominatingCommitteemay,butisnotrequiredto,considershareholderrecommendationsforcandidatestotheBoard.InordertorecommendacandidatetotheBoard,shareholdersandotherinterestedpartiesmaydirectcommunicationstoindividualdirectors,includingtheleadindependentdirector;toaBoardcommittee;tothenon-managementdirectorsasagroup;ortotheBoardasawhole,byaddressingthecommunicationtothenamedindividual,thecommittee,thenon-managementdirectorsasagroup,ortheBoardasawhole,c/oTysonFoods,Inc.,Attention:Secretary,2200DonTysonParkway,Springdale,AR72762-6999.ShareholderswhowishtoformallynominateacandidatetotheBoardmustfollowtheproceduresdescribedinourby-laws.

Board Committees

Wemaintainfourboardcommittees,includinganAuditCommittee,CompensationCommittee,GovernanceCommittee,andNominatingCommittee.ThesecommitteesarechairedbyanindependentmemberoftheBoardof

Directors.Thecommitteesalsoconsistofatleastthreedirectors,eachofwhommeetstheindependencerequirementsoftheNewYorkStockExchangeandareappointedbytheBoardofDirectors.ThroughaclearlyarticulatedsetofCorporateGovernancePrinciplesandcommittee-specificcharters,thedirectorsareresponsibletosettheoverallgovernancetoneandexercisetheirbusinessjudgmenttoactinwhattheyreasonablybelievetobeinthebestinterestsofthecompanyanditsshareholders.Toreviewourcommitteecharters,CLICKHERE.

Shareholder Communications

Shareholdersandotherinterestedpartiesmaydirectcommunicationstoindividualdirectors,includingtheleadindependentdirector;toaBoardcommittee;tothenon-managementdirectorsasagroup;ortotheBoardasawhole,byaddressingthecommunicationtothenamedindividual,thecommittee,thenon-managementdirectorsasagroup,ortheBoardasawhole,c/oTysonFoods,Inc.,Attention:Secretary,2200DonTysonParkway,Springdale,AR72762-6999.

Inaddition,thecompany’sby-lawsprescribehowproposalsofshareholders,intendedtobepresentedatanannualmeeting,mustbereceivedbythecompany.Tobesoincluded,aproposalmustalsocomplywithallapplicableprovisionsofRule14a-8undertheSecuritiesExchangeActof1934.

TheBoardhasadoptedCorporateGovernancePrinciples,andtheAuditCommittee,CompensationCommittee,NominatingCommittee,andGovernanceCommitteehaseachadoptedawrittencharter.TheBoardhasalsoadoptedaCodeofConductapplicableto

6.1 CorPorate governanCe and CoMPlianCe


alldirectors,officers,andTeamMembers.CopiesofthesecorporategovernancedocumentsareavailableonourInvestorRelationsWebsiteathttp://ir.tyson.comunder“InvestorRelations”orinprinttoanyshareholderwhosendsarequestto:

TysonFoods,Inc.Attention:Secretary2200DonTysonParkwayMailStopCP004Springdale,AR72762-6999

Uponwrittenrequestofanyshareholder,thecompanywillfurnishacopyofourAnnualReportonForm10-K,asfiledwiththeSecuritiesandExchangeCommission,includingthefinancialstatementsandschedulesthereto.ThewrittenrequestshouldbesenttotheSecretary,atthecompany’sexecutiveoffice.Thewrittenrequestmuststatethepersonmakingtherequestwasabeneficialownerofcapitalstockofthecompany.Inaddition,theAnnualReportonForm10-K,includingthefinancialstatementsandschedulesthereto,areavailableonthecompany’sInvestorRelationsWebsiteathttp://ir.tyson.com.

Compensation and Performance

InaccordancewithourCoreValues,wearecommittedtocreatingvalueforourshareholders,andwestrivetoearnconsistentandsatisfactoryprofitsforourshareholders.TheCompensationCommitteeoftheBoardofDirectorssupportstheBoardandworkswithmanagementtoensurekeyexecutivesarecompensatedinaccordancewithmanagementphilosophy,companyperformance,competitivepractice,andregulatoryrequirements.Thiscommitteewillnormallymeetfourtimesperyear,inconjunctionwithregularmeetingsoftheBoard,

tocarryoutitsresponsibilities.Thecommitteereviewsandprovidesoversightwithrespecttothecompany’scompensationstrategy,corporategoals,andobjectivesrelevanttomanagementcompensation.Thisapproachensuresourcompany’scompensationphilosophysupportsbusinessobjectives,createsshareholdervalue,isconsistentwithshareholderinterests,andattractsandretainsthekeyexecutivetalentourcompanyrequires.Additionally,thisapproachemphasizescompany,businessunit,andpersonalperformance,thuscreatingasignificanttiebetweenthecompany’sfinancialperformanceandakeyexecutive’spotentialcompensation.

TysonFood’sBoardofDirectors,underthedirectionoftheGovernanceCommitteeandtheleadindependentdirector,conductsanannualself-evaluationtodeterminewhethertheBoard,itscommittees,andthedirectorsarefunctioningeffectively.TheassessmentfocusesonthecontributionoftheBoardandeachofitscommittees,andspecificallywillfocusonareasinwhichtheBoardormanagementbelievestheBoardanditscommitteescouldimprove.TheBoarddoesnotmaintainaseparateprocessforevaluatingitsperformancewithrespecttoeconomic,environmental,andsocialperformance.

Avoiding Conflicts of Interest

TysonFoodsrespectstheBoardofDirectors’andTeamMembers’rightstomanagepersonalinterestsandrelationships.Atthesametime,TysonFoodsexpectseachpersontoavoidpossibleconflictsofinterestwithTysonFoods’businessandavoidusingtheirroleorpositiontoachievepersonalgain.Asapartofthegovernanceandoversightprocess,theGovernanceCommitteeperiodicallyreviewsandapprovescertaintransactionsbetween

TysonFoodsandofficers,directors,oraffiliatesofTysonFoods.Additionally,allTeamMembersareexpectedtoproperlydiscloseanddocumentcertaininformationregardingallpersonalandfamilyinterests,businesses,property,investments,andobligationsthataffect,orcouldbeperceivedtoaffect,theirjobdutiesorthereputationofTysonFoods.

Compliance

TysonFoodsperformsregularComplianceRiskAssessments.TheseassessmentsareconductedinanefforttocreateaninventoryofTysonFoods’compliancerisks,measurethelikelihoodandsignificanceofacomplianceviolationspecifictoaparticularrisk,gaugetheeffectivenessofmanagement’seffortstomanagetherisk,andoffersuggestionsforimprovement.Thecompany’spotentialcompliancerisksareasareidentifiedbasedonthefollowingconsiderations:

•KnownlawsorregulationsthatapplytoTysonFoods’business;

•Standardsprovidedbythecompany’sCodeofConductandothervoluntarycodes;

•LegalandcompliancerisksdisclosedinTysonFoods’10-K;

•Previouscomplianceallegations,violations,enforcementactions,orsettlements;

•Areasofcomplianceriskpreviouslyidentifiedbyinternalorexternalauditors;

•Industryenforcementandlitigationtrends;

•Allegedcomplianceviolationsbycompetitors;

•LinemanagementorTeamMemberviewsofknownissues;and

•Businesspracticesthathavebeencriticizedbythemediaornon-governmentorganizations.


AsaresultofourComplianceRiskAssessments,wehaveidentified15potentialareasofcompliancerisk.Thisincludesanimalwelfare;anti-trust;commodity-tradingriskmanagement;conflictsofinterest;TeamMembersafety;employmentpractices;environmentalcompliance;foodsafetyandqualityassurance;governmentrelations;internationalbusinesspractices;liveproduction;recordretention;SecuritiesandExchangeCommission,financialreporting,andcorporategovernance;safeguardingassets;andtransportation.

Tyson Foods’ Compliance Organization

In2006,TysonFoodsestablishedaComplianceOrganization.ThepurposeoftheComplianceOrganizationistoestablishandmaintainacohesiveandeffectivecomplianceprogramthatmeetsorexceedstheelementsoftheFederalSentencingGuidelines.ThisprogramconsistsofactivitiesimplementedbyTysonFoodstomanageandmitigateitscompliancerisks.Inshort,theobjectivesoftheComplianceOrganizationareto:

•UnderstandTysonFoods’compliancerisksandmanagement’sresponsetothoserisks;

•Developcomplianceeducationandtraininginanefforttominimizecomplianceissues;

•Implementinvestigativeprotocolsfortheresolutionofcompliancerelatedissues;and

•Asappropriate,communicateandreportcomplianceactivitiestoseniormanagementandtheAuditandGovernanceCommitteesoftheBoardofDirectors.

TheComplianceOrganizationismanagedbythecompany’sChiefAuditandComplianceOfficer,inconsultationwiththeGeneralCounsel.TheChiefAuditandComplianceOfficerhas

overallresponsibility,management,andauthorityfortheComplianceProgram,includingstructure,scope,resources,andinitiatives.Additionally,theComplianceOrganizationandtheChiefAuditandComplianceOfficeraresupportedbyaComplianceDirector,whoisresponsibleforthedailyadministrationoftheComplianceProgram.TheAuditandGovernancecommitteesoftheBoardofDirectorsreceivesregularreportsfromtheComplianceOrganizationandmonitorstheComplianceOrganization’sprogramdesign,implementation,andeffectivenessasdefinedintheircommitteecharters.

Compliance Coordination Committee

TysonFood’sComplianceCoordinationCommittee,whichincludescomplianceriskowners(seniorlevelmanagerswhohavebeendesignatedasresponsibleindividualswithrespecttospecifictypesofcompliancerisks),theComplianceOrganization,theOfficeofGeneralCounsel,selectbusinessunitleaders,andotherdesigneesasappropriate,meetsquarterly.TheprincipalactivitiesoftheComplianceCoordinationCommitteearetoidentifyopportunitiestostrengthenTysonFoods’approachtocomplianceriskmanagement;cascadeandcommunicateinformationaboutcompliance-relatedpolicies,processes,proceduresandinitiativestotheirareasofresponsibility;educateothercommitteemembersontheriskchallengesandstrategicobjectivesoftheirbusinessunits;sharedetailedcomplianceinformationwiththecommitteemembers;implementreliableprocessestostrengthencomplianceriskmanagementwithintheirbusinessunits;andparticipateinallaffairsofthecommittee.

Our Executive Compliance Committee

WealsomaintainanExecutiveComplianceCommittee.ThiscommitteeprovidesdirectionfortheComplianceOrganization,andconsistsoftheCEO,theCEO’sdirectreports,andotherdesigneesasappropriate.TheExecutiveComplianceCommitteeprovidesoversightandapprovaloftheinitiativesoftheComplianceOrganization;approvescertaincompanypolicies,proceduresandstrategiesrelatedtocomplianceriskmanagement;reviewscomplianceriskassessments;andallocatesnecessaryresourcestoimprovecomplianceeducation,processes,andtechnologies.

Preventing Corrupt Business Practices

TysonFoodsvaluesthefoundationuponwhichwehaveestablishedourethicsandcomplianceprogram,including:

•OurCoreValuesandCodeofConduct;

•Anethicalcultureof‘doingwhat’sright’;

•Comprehensivegovernanceoversightandaccountability;

•Thedevelopmentandimplementationofapplicablepoliciesandprocedures;

•Extensiveeducationandcommunicationstrategies;

•Internalcontrolsandauditingpractices;and

•Confidentialreportingmechanisms.

Thisfoundationisapplicabletoallofouroperationsandbusinessunits.Periodicandmeaningfulriskassessmentshelpussustainandcontinuallyimprovetheoverallperformanceandstrengthofourethicsandcomplianceprogram.Forexample,asaresultoftheseassessments,wehavedevelopedresources,training,andinternalcontrolsthathelpmanage


risksintheareasoffraud,corruption,andmisconduct.Inparticular,ouranti-corruptionprocesseshaveevolvedasourinternationalpresencecontinuestogrow.ItnowincludesestablishedprotocolsthatreachTysonFoods’distributors,consultants,andbrokers.

Additionally,in2008,allbusinessunitleadersandkeypersonnelinvolvedinourInternationalgroup’sbusinessreceivedtrainingonanti-briberyandanti-corruptionlawsaswellasinternalproceduresandexpectations.In2009,throughablendedlearningprocessofbothWeb-basedandfacilitator-ledtraining,weexpandedthisefforttoincludeallmanagementTeamMembers.

Precautionary Approach

The“precautionaryprinciple,”asdefinedbyArticle15oftheRioPrinciplesestablishedattheUnitedNationsConferenceonEnvironmentandDevelopmentin1992,statesthat“wheretherearethreatsofseriousorirreversibledamage,lackoffullscientificcertaintyshallnotbeusedasareasonforpostponingcost-effectivemeasurestopreventenvironmentaldegradation.”TysonFoodsevaluatesandmanagesenvironmentalrisksunderitsEnvironmentalManagementSystem.Thisapproachincludesdataandguidancefromenvironmentalregulatoryagencies,academia,andindustryassociations.


Withourtalented,diverse,andhigh-performingteam,wewilldriveperformanceinawinning,highlyaccountableculturereflectiveofourCoreValues.Wecontinuetomanageourcompanyforthelongtermbyfocusingonourfourstrategies,whichincludes:

•Createinnovativeandinsight-drivenfoodsolutions:Discoverandsellmarket-leadingproductsandservicestogrowTysonFoods’brandequityandhelpourcustomerssucceedthroughourcommitmenttojointvaluecreation.

•Optimizecommoditybusinessesandmanagemargins:Emphasizecostfocusinoperations,managemargins,andmaximizerevenuebycapitalizingonscale,yield,pricing,productmix,andservices.

•Buildamultinationalenterprise:Accelerateexpansionincost-competitiveregionsandmarketswiththegreatestgrowthpotential,aswellasincreaseanddiversifyU.S.exports.

•Revolutionizetheconversionofrawmaterialsandby-productsintohigh-margininitiatives:Commercializeopportunitiesoutsidethecorebusiness,suchascreatingrenewableenergyfromfatanddevelopingothertechnologicallyadvancedplatformsfrommaterialssuchasfeathersandotheranimalby-products.

Fiscal Year 2008 and 2009 Financial Performance

Below,weofferanoverviewofourfinancialperformanceinfiscalyears2008and2009byoperationalbusinesssegments.

Chicken

Fiscalyear2008andthefirsthalfoffiscalyear2009weredifficultforourcompany.Ouroperatingresultswerenegativelyimpactedbyhighgraincostsandnetlossesonourcommodityrisk-managementactivitiesrelatedtograinandenergypurchases.Asaresultofmorestableinputcostsandimprovedoperationalexecution,ourperformanceimprovedinthesecondhalfoffiscalyear2009.Operatingmarginsinthefirsthalfoffiscalyear2009werenegative7.2percent,whilethesecondhalfimprovedtopositive3.5percent.

Beef

Infiscalyear2008,ourbeefsegmentoperatingresultswerebetterthanfiscalyear2007asoperatingmarginssignificantlyimprovedinthelatterhalfoftheyear.Excludinga$560millionnon-cashgoodwillimpairmentcharge,ourfiscalyear2009operatingresultsdoubledascomparedtofiscalyear2008.Wesustainedouroperationalimprovementsmadeinfiscalyear2008andcontinuetohaveastrongperformance,whichshowsinourfiscalyear2009operatingresults.

Pork

Infiscalyear2008,weachievedarecordoperatingincomeof$280million,anincreaseof$135millionascomparedtofiscalyear2007.Thisperformancewasduetoadequatehogsuppliesandstrongdomesticandexportdemand.Whileourfiscalyear2009operatingincomewasdownascomparedtotherecordyearwehadinfiscalyear2008,westillhadsolidoperatingearningsof$160million,oranoperatingmarginof4.7percent,withastrongdemandforourproductsandanadequatesupplyofhogs.

6.2 CoMPany strategy and FinanCial PerForManCe


Prepared Foods

Ouroperatingincomedeclinedinfiscalyear2008ascomparedtofiscalyear2007duetoincreasedrawmaterialcosts,partiallyoffsetbyincreasedaveragesalesprices.Infiscalyear2009,however,wehadimprovementsinoursalesvolume,whichledtooperatingmarginsof4.7percent.Inaddition,wemadeseveraloperationalimprovementsthatallowustorunourplantswithgreaterefficiency.

Capital Structure

Infiscalyear2008,weraisedmorethan$740millionincapitalbyissuing22.4millionsharesofClassAstockinapublicofferingand$458millionof3.25percentConvertibleSeniorNotesdueOctober15,2013.ThenetproceedswereusedforthenetcostoftherelatedConvertibleNoteHedgeandWarrantTransactions,therepaymentofourborrowingsundertheaccountsreceivablesecuritizationfacility,andothergeneralcorporatepurposes.Bothofthese

actionswereinourlong-termbestinterestandallowedustobecomfortableinmakingseveralinternationalacquisitions.

InMarch2009,wesuccessfullycompletedtwoimportanttransactionsforourcapitalstructure.Wereplacedourthenexisting$1.0billionrevolvingcreditfacilitysettoexpireinfiscal2010withanew$1.0billionrevolvingcreditfacilitywhichexpiresinMarch2012.Thisnewcreditfacilityissecuredbythecompany’scash,accounts

receivable,andinventoryandisalsoguaranteedbysubstantiallyallofthecompany’sdomesticsubsidiaries.Basedonourcurrentandfutureexpectedcashbalances,wedonotexpectanyusageunderthisfacilityexceptforlettersofcreditsupport,andasaresult,wedonotexpecttobesubjecttoitsfixedchargeratios.Inaddition,wecompletedanofferingof$810millionofseniornotesduein2014.Weusedtheproceedsfromthenotesofferingtorepayborrowingsandterminatecommitmentsunderour$600millionaccountsreceivablesfacility.Thenotesofferingandnewcreditfacilityaccomplishedthreeimportantgoalsforourcapitalstructure:ampleliquidity,financialflexibilityandthepayingdownofdebt.

Fiscal Year 2010 Outlook*

Webelievefiscalyear2010willshowanimprovementoverfiscalyear2009.Webelievedemandforprotein,especiallyinfoodservice,shouldimproveastheeconomyimproves,andwewillstrivetoincreasesales,gainmarketshare,andimproveoperatingmargins.


Additionally:

Chicken

Attheendoffiscalyear2009,industrypulletplacementsweredown5to6percentasaresultofweakerdemand.Weexpect,however,demandwillimproveaswegetfurtherintofiscalyear2010,andweexpectthepricingenvironmenttoimprove,aidedbycoldstorageinventories,whicharedownrelativetothelevelswehaveseenoverthepastseveralyears.Currently,weexpecttoseegraincostsdownascomparedtofiscalyear2009.Additionally,wewillcontinuetofocusonmakingoperationalimprovementstohelpmaximizeourmargins.

Beef

Whileweexpectareductionincattlesuppliesof1to2percentinfiscalyear2010,wedonotexpectasignificantchangeinthefundamentalsofourbeefbusiness,asitrelatestofiscalyear2009.Weexpectadequatesuppliestooperateourplants.Wewillmanageourspreadsbymaximizingourrevenuesthroughproductmix,minimizingouroperatingcosts,whilekeepingourfocusonqualityandcustomerservice.

Pork

Weexpecttoseeagradualdeclineinhogsuppliesthroughthefirsthalfoffiscalyear2010,whichwillaccelerateintothesecondhalf,resultinginindustryslaughterslightlyhigherthan2007.Webelieve,however,wewillhaveadequatesuppliesintheregionsinwhichweoperate.Wewillmanageourspreadsbycontinuingtocontrolourcostsandmaximizingourrevenues.

Prepared Foods

Rawmaterialcostswilllikelyincreaseinfiscalyear2010,butwehavemadesomechangesinoursalescontractsthatmoveusfurtherawayfromfixed-pricecontractsandmoretowardformulapricing,whichwillbetterenableustoabsorbrisingrawmaterialcosts.Withthechangeswehavemadewithoursalescontracts,andtheoperationalefficiencieswemadeduringfiscalyear2009,weexpectstrongresultsinfiscalyear2010.

Moreover,weareintegratingrecentinternationalacquisitionsandexpectthemtobegincontributingin2010.

*Certain information contained in this section of the sustainability report includes forward-looking statements, including statements related to projected performance, livestock supplies, demand for our products, and amount of debt. Historical results may not be indicative of future results. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.

Want To Know More?

ForfinancialinformationonTysonFoods,pleasevisitourInvestorRelationsWebsiteathttp://ir.tyson.com.Thereyouwillfindfinancialstatements,SECfilings,annualreports,presentationstoinvestors,andmuchmore.WeencourageyoutoexplorethisWebsiteforacomprehensivefiscallookatTysonFoods.


TysonFoodsiscommittedtoresponsible,legal,andsustainableprocurementpractices.Weencourageoursupplypartnerstorecognizetheroletheyplayinhelpingusassureourcustomersandconsumersofthesafetyandqualityofourproducts.Eachyear,allTysonFoods’TeamMembers,includingmembersoftheBoardofDirectors,arerequiredtoaffirmtheircommitmenttotheprinciplesdescribedinourCodeofConductandsupportedthroughourDoing What’s Right™program.WeviewoursupplypartnersasacriticalelementinfulfillingourcommitmenttoDoing What’s Right.Accordingly,inappropriatecircumstanceswestrivetoincluderequirementsinoursupplycontractsthatemphasizethesustainabilityobjectivesthataresharedwithour7,500supplypartners*.

Duringfiscalyears2008and2009,TysonFoodsspentapproximately$7.2billionongoodsandservices.Webelieveitisimportanttosupporttheeconomicdevelopmentofcommunitiesbypurchasinggoodsandservicesfrom“locally-based”supplypartnerswhoarelocatedinthesamecounty,anadjoiningcounty,orthesamestateasaTysonFoodsoperation.Ourmostrecenttwelve-monthanalysisofindirectspending,whichincludesitemssuchasservices,maintenanceandrepairs,plantexpensesandsupplies,equipment,andfuel,indicatedthat$1ofevery$3dollarsspentwithsupplypartnersisspentwithlocally-basedsuppliers.

WealsoseektoenterintorelationshipswithsupplypartnerswhosharevaluessimilartoTysonFoods,especiallyintheareasof:

•Legalandregulatorycompliance;

•Productsafetyandqualityfoodproducts;

•Animalwell-being;

•Laborandhumanrights;

•Environmental,healthandsafety;

•Sustainability;and

•Ethicalandhonestbusinesstransactions.

InourRequestforProposalprocess,weincludeandevaluatekeyelementsrelatedtosustainabilityaspartoftheselectioncriteriafordesignatedprocurements.Manyofourmajorsupplypartnersmaintaindocumented,formalsustainabilityprograms.In2007and2008,TysonFoodsawardedSupplieroftheYearAwardstohonorsupplypartnersthathaddemonstratedexceptionalfocusonvalue,costsavings,

6.3 our suPPly Partners


servicemetrics,innovationanddesign,diversityefforts,sustainabilitypractices,andtechnicalsupport.

Wearealsocommittedtocontinualimprovementwithinoursupplychainandprocurementprocess.Forexample,weregularlyhoststrategicmeetingswithmajorsupplierstodiscusskeybusinesssuccessesandopportunities.Weroutinelyconductsuppliersatisfactionsurveystoidentifywaystofurtherenhanceourrelationshipswithoursupplypartners.Otherexamplesofourcommitmenttocontinualimprovementwithinoursupplychainandprocurementprocessaresharedbelow.

•In2008,TysonFoodslaunchedaninitiativetoimproveourPurchase-To-Pay(P2P)process.Thisinitiativewillresultinasystemandvariousprocessenhancementsdesignedtoreducewastedtime,materials,andeffort.TheenhancementsplannedwillbringTysonFoods’supplychainprocurementprocessinbetteralignmentwithbestpractices.Weexpectthisinitiativetobefinalizedin2010.

•In2009,werevisedandconsolidatedourpurchasingpoliciesandprocedures.Therevisionsandconsolidationpromotesgreaterefficiencyinoursourcingprocessandemphasizestheongoingneedtodobusinesswiththebest-valuesupplypartners.

•Webegandeveloping,in2009,aSupplierCodeofConductthatsetsforthsupplierexpectationsregardingthevaluesthathavebeensharedabove.Wewillfinalizethisdocumentandsharethiscodewithoursupplypartnersinfiscalyear2010.

•Infiscalyear2009,weimplementedaninternalContractManagementSystem.ThissystemenhancesourcommunicationwithourTysonLegalTeamandoursupplypartners,andallowsustostoreallofourpurchasing-relateddocumentationelectronically.

•In2008,wedevelopedanannualpurchasingtrainingprogram.Thisprogramhelpsassuretheprofessionalgrowthanddevelopmentofourpurchasingtalent.Ithelpsmaintainconsistencyinourpurchasingpracticesandprovidesguidanceonkeytopics,suchasthebasicsofsourcing,negotiation,anddevelopingandimplementingcontracts.

*Note: We rely on many third-party resources who are independent contractors for various goods and services. This includes, but is not limited to contractors, consultants, and suppliers, and their associated employees, agents, and subcontractors. For simplicity, we refer to these third-party resources as “supply partners” in this report.


Mostofourchickenisraisedbyindependentpoultryproducers.Currently,Tysoncontractswithmorethan6,000independentproducers.Thereisalsoasmallnumberofcompany-ownedchickenfarms.

ProducingforTysonFoodsisasteadysourceofincomeforfarmsthatotherwisehavetodealwiththeuncertaintyoffluctuatingpricesforagriculturalcropsandproduce.Ourcontractualrelationshipswithproducersenablemanyfamiliestoremainonfarmsinsteadofpotentiallybeingforcedoffbyeconomicpressures.Weprovidefarmerswithstate-of-the-artveterinarysupport,scientificallyformulatedfeed,andtechnicalassistance,withTysonFoods’technicaladvisorsvisitingfarmstypicallyonaweeklybasis.Weprovideproducerswithinformationonsoundenvironmentalpractices,optimallightingandventilationforchicken,anddisease

control.Wealsostronglypromoteanimalwell-beingatalllifestages.Noneofourbroilersisraisedincagesatanystageofitslife.Aboveall,westrivetosupportindependentproducersintheireffortstoruntheirbusinesseswiselyandtobeindependentandsustainableenterprises.

Unlikeourverticallyintegratedchickenbusiness,TysonFoods’beefandporkoperationsdependuponindependentlivestockproducerstosupplyourplants.TheplantsoperatedbyTysonFreshMeatsarestrategicallylocatednearlargesuppliesofhighqualitycattleandhogs.

Toensureasteadysupplyoflivestock,TysonFreshMeatsmaintainsanextensivebuyingnetwork.Approximately60cattlebuyersand120hogbuyersmakecompetitivebidsonthecattleandhogsthatmeetthecompany’sspecificationsforhighqualitybeefandpork.

ThecompanybuysmillionsofcattleandhogsintheU.S.eachyearfromapproximately5,000independentcattleproducersand7,500independentporkproducerstoensureasteadysupplyforoureightbeefplantsandsixporkplants.

TysonFreshMeatssupportstheeffortsofindependentcattleandhogproducerstoensurethelivestocktheyraiseareproperlyhandled.

6.4 suPPorting tHe FaMily FarMer


TysonFoodsisfindinginnovativeandcreativewaystoconvertanimalbyproductsintofuel,petfoodproducts,andotherhigh-margincommercialproducts.OurRenewableProductsDivisionisleadingourstrategytorevolutionizetheconversionofrawmaterialsandby-productsintohigh-marginbusinesses.Oureffortsinthisareacurrentlyinvolvefourgrowthplatforms:

•Renewableenergy;

•Petproducts;

•Biotech;and

•Nutraceuticals(nutritionalsupplements).

Renewable Energy

DynamicFuels,a50/50jointventurebetweenTysonFoodsandSyntroleumCorporation,brokegroundinOctober2008onaplantthatwillconvertlow-grade,inediblefatsandgreasesintorenewabletransportationfuelsforthemilitaryandcivilianmarkets.Thefacility,locatedinGeismar,Louisiana,iscurrentlyscheduledtobeginproductionin2010,withanexpectedtotalcapacityof75milliongallonsperyear.

Unlikethetraditionalethanolandbiodieselindustries,whichusefoodingredientssuchascornandsoybeanoiltoproducefuel,theDynamicFuelsprojectwillprimarilyusenon-foodgradeanimalfatsproducedorprocuredbyTyson,suchasbeeftallow,porklard,chickenfat,andcookinggrease.Thefuelproducedbytheventurewillofferthesamebenefitsofsyntheticfuelsderivedfromcoalornaturalgaswhileprovidingsubstantialperformanceandenvironmentaladvantagesoverpetroleum-basedfuels.Thesebenefitsincludehighercetanelevels,whichareameasureofcombustionquality,andsuperiorthermalstability,makingiteffectiveforadvancedmilitaryapplications.Inaddition,asareplacementfortraditionalpetroleumfuel,thisfuelshouldreduceparticulateemissionsby96percentandlifecyclegreen-housegasemissionsbyapproximately80percent.

Pet Products

Americanslovetheirpetsandareconcernedaboutthefoodtheirpetseat.InApril2009,TysonFoodsandIowa-basedKeminIndustries,Inc.,announcedtheopeningofanewmanufacturingoperationthatproducespetfoodflavorenhancers,knownaspalatants,underthePalasuranceTMbrand.

ThemanufacturinginitiativeistheresultofastrategicallianceTysonFoodsandKeminIndustriesformedin2008todevelop,manufacture,market,andsellliquidanddrypalatantstopetfoodcompanies.Thegoalistoprovidecostcompetitive,high-qualitypetfoodpalatants.

Thenewpalatantoperationislocatedatourflagshipanimalby-productfacilityinScranton,Arkansas,whichiscentrallylocatedtoourArkansaschickenprocessingplants.Theoperationboastsstate-of-the-artequipmentandautomatedcontrolsdesignedtoproducepalatantswiththehighestregardforproductsafetyandperformance.ProductionbeganinMarch2009andisa24-houroperationsupportedbytheTysonTeamatScranton.

6.5 reneWable ProduCts


AlsoinMarch2009,TysonFoodsandNewJersey-basedFreshpetannouncedanalliancefocusedonbringingtoconsumersnewandinnovative,refrigerated,freshfoodforpets.Thisisanaturalextensionofourexpertiseinmakinginnovativerefrigeratedfoodproducts.Capitalizingonthetrendtowardhumanizationofpets,webelieveourabilitytoleverageallofourfoodknowledgetobringfreshrefrigeratedproductstothismemberofthefamilywillpresentastepchangeininnovationthathasnotbeenseeninthiscategory.

Thealliancewillcontinuetheinnovationandgrowthoftherefrigerated,freshpetfoodbusiness.WebelievethiscanbeachievedbycombiningFreshpet’sinnovationandbrand-buildingskillswithourknowledgeofproductdevelopment,logistics,andmanufacturing,aswellasoursupplyofchicken,beef,andporkproducts.EachpoundofFreshpet®Selectproductcontainssevenouncesofchicken,beef,orturkeyandtwoouncesofliverasitsmajorproteinsource.Additionallythereisoneegg,twoouncesofvegetables,andoneounceofbrownrice.Theproductis

fortifiedwith18essentialvitaminsandminerals,andcontainsnocorn,wheat,gluten,fillers,by-products,orpreservatives.Theproductisgentlycookedandquicklycooledtoeliminateanyharmfulbacteriaorparasites,andisneverfrozen.Thisresultsinabetternutritionprofile,improveddigestibility,andenhancedflavor.Allofthisleadstoahealthier,happierpet.

InanefforttomeetconsumerdemandforAmerican-made,naturalpettreats,asubsidiaryofTysonFoodsrecentlylaunchedalineofdogchews.OnFebruary5,2010,TysonPetProducts,Inc.,introduced100-percentnaturalTrue ChewsTMdogtreats,whicharebeingmadeatarecentlyreopenedplantinIndependence,Iowa.Thecompanyisofferingavarietyofdifferentchewssuchaschickenfillet,porkear,andbeefbullystick.Thechicken,beef,andporkusedin“True Chews”treatsaresourcedfromvariouscompanylocationsintheUnitedStates.Therawmaterialsareslowroastedandhaveanaturalhickoryaroma.Thefinishedproducts

areprotein-richandrawhide-free,withnofillers.

Nutraceuticals /Supplements

FoodscontainingnutritionalsupplementsaregrowinginpopularityasBabyBoomersage.Withourboneandcartilagesupply,weareuniquelypositionedtosupplyproprietarychondroitinandcollagenproductsthroughourrelationshipwithBioCellTechnology,LLC.Majornutritionalsupplementandfoodmanufacturersmarketfinishedproductsmadewiththeseingredients.Additionalopportunitiesarebeingexploredtoexpandfurtherthisbusinessplatformduring2009throughotherrawmaterialsandvalue-addedpartnerships.

Biotech Products

TysonFoodsalsorecognizestheversatilityandfunctionalityofkeratinproteinfromchickenfeathers.Aspartofthebiotechplatform,weareexploringpotentialpartnershipsandcommercializationopportunitiesforkeratin-basedproductsincludinghealthandbeautysolutions,adhesives,plastics,andnonwovens.Alloftheseproductswillbringaddedvaluetoourcompanywhilesupportingoursustainabilityefforts.


Asdetailedinourcompanystrategy,wearecommittedtobuildingamultinationalenterprise.Theemergingmiddleclassinseveralpartsoftheworldarecontributingtoanincreaseintheglobalconsumptionofmeatandpoultryproductssuchaschicken,beef,andpork.Globally,meatconsumptionisforecasttogrowbynearlytwopercentperyearbetween2007and2017.Thisrepresentsanincreaseofalmost50millionmetrictonsofmeat.Thisincreasewillbeduetoimprovedincomelevels,dietchange,andpopulationgrowth.

Theglobalconsumptionofpoultryisgrowingatthefastestrate,followedbyporkandthenbeef.Consumerpreferenceforpoultryisduetoseveralfactors.Twoofthekeyfactorsarethatchickenisthemostefficientofthemeatproteinsinfeedconversion,andthatchickenisacceptedbymostreligions.ThesechangesinglobalproteindemandarecreatingnewopportunitiesforglobalfoodcompanieslikeTysonFoods.

Infiscalyear2009,TysonFoodsexportedchicken,beef,pork,and/orpreparedfoodstomorethan90countries.Increasingexports,diversifyingourexportmarketsandbuildingin-countryproductionareessentialtothecompany’slong-termgrowth.Inrecentyears,wemadeseveralacquisitionsandenteredjointventuresinkeylocationsthatoffertherightclimateforpoultryproduction,alargepopulation,amplelaborforce,accesstocornandsoybeanmealandacost-of-productionadvantage.Anotherimportantfeatureofthesemarketsistheiremergingmiddleclass.Asincomesrise,oneofthefirstlifestylechangespeoplemakeistoaddproteintotheirdiets.

Since2001,TysonFoodshashadapresenceinChinawithTysonDaLong,asmallchickenfurtherprocessingjointventure.Withapopulationof1.3billionandchainrestaurantsopeningatarateofoneevery18hours,theChinesemarketneedsmorepoultryproduction.AnnualpercapitachickenconsumptioninChinaisabout20poundsperperson,comparedto89poundsintheUnitedStates.Ifconsumptionincreasedbyonly10poundsperperson,itwouldbeequivalenttoallofTysonFoods’annualUnitedStatesproduction.

Toservethisgrowingmarket,in2008TysonFoodscreatedJiangsuTysonFoodstoproducefreshchickensoldundertheTysonbrandfortheShanghairetailmarket.In2009,weenteredasecondjointventure,ShandongTysonXinchangFoods,afullyintegratedchickenandduckoperation.TysonXinchangwillhaveaproductioncapacityofmorethan600,000birdsperdayandfurtherprocessingoperationswithexportcertificationsforJapan,SoutheastAsia,andEurope.

In2008,TysonFoodsacquiredthreepoultrycompaniesinsouthernBrazil.Oneoftheseoperationsisfullyverticallyintegrated,andtwoarepartiallyverticallyintegrated.AllthreecansupplyBrazil’sgrowingdomesticmarketsinadditiontoservingEurope,Japan,andothermarketscurrentlynotavailabletoU.S.chickenimports.BycombiningthesethreecompaniesintoTysondoBrazil,wehavecreatedanoperationwithmoderntechnologyandanexperiencedmanagementteam.TheproductioncapacityofTysondoBrazilwillbeapproximately800,000chickensperday.

ThethirdkeylocationforTysonFoods’internationalgrowthisIndia,whichhasapopulationofmorethanonebillionpeople.Whilepercapitachickenconsumptionislessthanfivepoundsayear,itsannualgrowthrateofmorethan10percentisamongthehighestintheworld.In2008,TysonFoodsacquiredmajorityownershipofoneofIndia’sleadingbrandedchickencompanies.Inadditiontoservingthefoodservicemarket,GodrejTysonFoodsproducesretailfreshchickenundertheRealGoodChickenbrandandfurtherprocessedchickenundertheYummiezbrand.ThecombinedproductionofthetwoplantsinMumbaiandBangaloreisapproximately60,000chickensperday.

TysonFoodshashadapresenceinMexicofor20yearsandcurrentlyholdsthenumberthreemarketshareposition.Wearenumberoneinvalue-addedchickenproductionandhavereachedfullcapacityinourplantsinamarketthatcontinuestogrow.Ourlonger-termstrategycouldincludeacquiringorbuildingmoreassetstosolidifyTysondeMexico’smarketpositioninthenorthernpartofthecountyandexpandintothecentralregion.

Chickenisn’ttheonlyproteinTysonFoodsproducesoutsidetheUnitedStates.In2007,weenteredajointventuretocreatethefirstverticallyintegratedbeefoperationinArgentina.TheSouthAmericancountryistheworld’sfifthleadingbeefproducerandthesecondleadingbeefexporter,andisknownforitslowbeefproductioncostsandhigh-qualitybreedsofcattle.

6.6 building a Multinational enterPrise


TysonFoodsworksonregulatoryandlegislativepolicyissuesthatcanhaveanimpactonourbusiness.Wedothisthroughourowninvolvementasanindividualcompanyandthroughmembershipinindustryassociations.Tysonrepresentativesfromallpartsofourcompanyimpactpublicpolicythroughdirectinteractionwithpolicymakers,aswellasthroughparticipationonindustrycommitteesandadvisoryboards.Webelievethisinteractionensuresthatourviewsonkeyissuesareheardandshapessoundpublicpolicy.Weseeourengagementinboththepolicyandpoliticalprocessesasanimportantpartofcorporatesustainability.

Priority Issues

Thefollowingareamongthemostsignificantrecentpublic-policyissuesforourcompanyin2009:

•BalancedFoodandFuelPolicies:Wesupportthedevelopmentanduseofrenewablefuelsasawaytohelpreduceourdependenceonforeignoil.However,publicpolicyshouldnotpromotetheproductionofrenewablefuels,particularlycorn-derivedethanol,attheexpenseof

eitherourindustryorconsumers.In2008,wesupportedareductionintheRenewableFuelsStandard,petitionedbytheGovernorofTexas,becauserisinggrainpriceswerenegativelyaffectingourbusinessandleadingtohigherfoodprices.In2009,weopposedarequest,pendingwiththeEnvironmentalProtectionAgency,toallowhigherblendsofethanolingasoline.Webelievethatthispolicychangecouldraisecornpricesandcouldhaveapotentiallynegativeimpactonmotorvehicleandequipmentengineperformance.WearecommittedtoworkingwithCongress,andthecurrentAdministration,onpoliciesthatbalancethepromotionofbiofuelswiththeinterestsofbothourindustryandconsumers.

•ImmigrationReform:Webelievecomprehensiveimmigrationreformisnecessary,andtherefore,closelymonitortheissue.WevalueTeamMemberswhoareimmigrants—legalimmigrants.OurTeamMembers,immigrantandAmericanborn,wanttheirchildrentoenjoygreateropportunitiesandthestabilitythatenablesfamiliestostaytogetherandthrive.Wefeelthatacomprehensive

immigrationreformbillshouldincludebordersecurity,animprovedemployerverificationsystem,atemporaryworkerprogramwithamarket-basedregulator,andprovideapathwayforcitizenstoearnlegalstatus.

•EnsuringFoodSafety:WearecommittedtoworkingwiththefederalgovernmenttoensurethesafestpossiblefoodsupplyforconsumersintheUnitedStates(U.S.)andaroundtheworld.Issuesaroundfoodsafety,whetherintheCongressorbeforefederalagencies,aretopprioritiesforourcompany.

•InternationalTrade:Weexportproteintomorethan90countries,andourbusinessreliesonarules-basedtradingsystemthatensuresfair-marketaccessforallparticipants.Wesupporttradepoliciesthatexpandexportopportunitiesandremovetradebarrierstoproteinexportsthatarenotconsistentwithestablishedinternationalhealthandsafetystandards.

6.7 PubliC PoliCy and PolitiCal Contributions


Corporate Contributions

ThroughcampaigncontributionstocandidatesfortheU.S.HouseandtheU.S.Senate,theTysonPoliticalActionCommittee(TYPAC)helpsbuildandmaintainrelationshipswithelectedofficialswhosupportourindustryandcompany.Theyunderstandourbusinessandaregratefulthatweprovidemorethan100,000jobs.Theyappreciatetheskillandcarewededicatetoproducingsafe,delicious,andnutritiousfoodsataffordableprices.

ThroughAugust2009,TYPACcontributed$86,000tocandidatesforfederalofficesforthe2009-2010electioncycle.Duringthe2007-2008electioncycle,TYPACcontributed$218,002tocandidatesandpoliticalactioncommittees.TYPACdoesnotbaseitscontributionsonpoliticalpartyaffiliation.Asindicatedintheprecedingparagraph,weseektosupportcandidateswhounderstandandappreciateourbusinessanditsimportancetoAmericanconsumers.

Memberships and Associations

TysonFoodsisamemberofnumerousindustrygroupsandassociations.Weworkwiththesegroupsandassociationsbecausetheyrepresentthefoodprocessingindustryandbusiness

communityindiscussionswithgovernmentalagenciesandotherstakeholders.Theyarealsoinstrumentalinhelpingtoreachindustryconsensusonimportantnationalpolicyissues.Wehavecompanyrepresentativesontheboardsandcommitteesofmanyofthesegroupsandassociationstoensurewehaveanavenuetovoicequestions,concerns,andopinionsaboutpolicyorrelatedactivities.Belowisapartiallistingoftheindustrygroups,associations,andpartnershipsofwhichwearemembers.Thoseinboldtextareglobalassociations.Wealsomentionourmembershipinindustrygroups,associations,andpartnershipsinothersectionsofour2009sustainabilityreport.

AmericanAssociationofAnalyticalChemists,AmericanCommodityDistributionAssociation,AmericanCulinaryFederationChefandChildFoundation,AmericanDieteticAssociation,AmericanFeedIndustryAssociation,AmericanFrozenFoodsInstitute,AmericanLeatherChemistsAssociation,AmericanMeatInstitute,AmericanMeatScienceAssociation,AmericanSocietyforQuality,AmmoniaSafetyandTrainingInstitute,AnimalProteinProducersIndustry,Applied Sustainability Center,ArkansasAssociationofFoodProtection,

ArkansasEnvironmentalFederation,British Retail Consortium,BeefInformationFoodSafetyCouncil,Center for Business Ethics,EqualEmploymentAdvisoryCouncil,Ethics and Compliance Officers Association,FoodSafetyConsortium,Global Food Safety Initiative,IllinoisRiverWatershedPartnership,IndustryLiaisonGroup,Institute of Food Technologists,Institute of Internal Auditors,International Association for Food Protection,International HACCP Alliance,LeatherIndustriesofAmerica,NationalAssociationofMeatPurveyors,NationalBusinessGrouponHealth,NationalCattlemen’sBeefAssociation,NationalChickenCouncil,NationalFrozenandRefrigeratedFoodsAssociation,NationalMeatAssociation,NationalPorkBoard,NationalPorkProducersCouncil,NationalRenderersAssociation,NationalSafetyCouncil,NationalTanneryAssociation,NationalTurkeyFedera-tion,Research Chef’s Association,SchoolNutritionAssociation,Society of Corporate Compliance and Ethics,Society for Human Resource Management,U.S.ChamberofCommerce,U.S.MeatExportFederation,U.S.PoultryandEggExportCouncil.


TysonFoodssupportsthedevelopmentanduseofrenewablefuelsasawaytohelpreduceU.S.dependenceonforeignoil.However,publicpolicyshouldnotpromotetheproductionofrenewablefuels,particularlycorn-derivedethanol,attheexpenseofourcompany,ourcustomers,orconsumers.Cornandsoybeancostshaveasignificantimpactonourbusiness.Onaverage,corncostsmakeup47percentofthetotalcostofraisingalivebird,whilesoybeanmealcontributesnearly20percenttothetotalcost.Cornandsoybeanmealarealsosignificantfeedcomponentsforcattleandhogs,andthesecostshavesignificantimpactonthebusinessoftheindependentcattleandhogproducerswhosupplyuswithmarkethogsandfinishedcattle.

In2005,andagainin2007,legislationwasenactedthatmandatedtheuseofspecificvolumesofrenewablefuels.Webelievethesemandates,whichhadthemostimmediateimpactontheproductionofcornethanol,wereasignificantfactorinbothasharpriseincornpricesandincreasingvolatilityintheagriculturalmarkets.Bymid-2008,ourcostsforfeedingcornintoourbroileroperationshaddoubledsinceJuly2006from$2.90perbusheltonearly$6.00perbushel.Infiscalyear2008,weabsorbed$593millioninincreasedgraincostsoverfiscalyear2007.Theseincreasesininputcosts,resultingfromgovernmentpoliciespittingfoodproductionagainstfuelproduction,directlyaffectourcompany’sprofitability.In2008,independenthogproducerswerereceivinghighmarketpricesforlivehogs;however,theystruggledtomakeaprofitduetohighfeedcosts.

Expertsestimatethatapproximately40percentoftheU.S.corncropwillbedivertedfromfoodandfeedtofuelproductionby2015undercurrentpolicies.Movingforward,webelievethecurrentmandatesshouldbereevaluatedandthatfederalrenewable-fuelpoliciesshouldfocusonnext-generationrenewablefuelsthatdonotrelyonfood-basedfeedstocks.Thispolicyfocusisgoodforthecountryandforourcompany’slong-termsustainability.

6.8 etHanol and aniMal Feed


TysonFoods’2009sustainabilityreport,Rooted in Tradition, Growing Responsibly,coversfiscalyears2008(September30,2007–September27,2008)and2009(September28,2008–October3,2009).Aswithour2005and2007sustainabilityreports,titledLiving Our Core ValuesandIt’s In Our Naturerespectively,thisthirdbiennialreportprovidesacomprehensiveandtransparentreviewofourcommitmentto,andprogresstowards,economicgrowth,environmentalstewardship,andsocialprogress.

Thisreportdetailsoureconomic,environmental,andsocialperformanceforourUnitedStatesoperations,withadditionalinformationprovidedonselectInternationaloperations,subsidiaries,andjointventures.Unlessotherwisenoted,thescopeofthisreportdoesnotincludeeconomic,environmental,orsocialdatafromsuppliers,independentproducers,externalorganizations,oractivitiesoverwhichthecompanyhaslimitedcontrolorinfluence.

7.0 our aPProaCH to sustainability rePorting


ThisreportisintendedtocovertheissueswebelievearemostmaterialtoTysonFoods.Wedefinetheseissuesasthosewiththepotentialtopositivelyandnegativelyinfluence,bothnowandinthefuture,the:

•Progressandgrowthofourglobalsociety;

•Protectionoftheenvironmentandconservationofnaturalresources;and

•Thecompany’sfinancesoroperations.

Inaddition,wealsoconsiderthoseissuesthatareofconcerntostakeholdersorthatcansubstantiallyinfluencetheassessmentsanddecisionsofstakeholders,tobematerial.

Inanefforttoidentifythesustainabilityissuesofgreatestimportancetoourcompanyandstakeholders,weparticipatedinnumerousstakeholder-engagementactivitiesduringfiscalyears2008and2009.Thisincludesfocusedstakeholderworkgroups;customerpresentations;roundtablemeetings;discussionswithacademiaandindustryassociations;performanceandperceptionsurveys;reviewsofinternalstrategies,policies,andmanagementsystems;andformalreviewsofregulatoryrequirements,publishedresearch,andmedia

reports.Wealsoconsideredspecificmaterialitycommentsreceivedfrombothinternalandexternalsourceswithrespecttothecontentofour2007sustainabilityreport.

Inaddition,aswithour2005and2007reports,wefollowedtheguidanceofferedbytheGlobalReportingInitiative’s(GRI)G3SustainabilityReportingGuidelinestodefineanddevelopour2009sustainabilityreport.Wefeeltheseguidelinesaidinprovidingabalancedrepresentationofourmaterialissues.Theseguidelinesalsoofferaframeworkforsustainabilityreportingthatorganizationscanadoptregardlessoftheirsize,industrysector,orgeographiclocation.

AsverifiedbybothinternalauditorsandGRI,thisreportmeetsthe“B”applicationlevel.AnindexprovidingdetailsontheGRIindicatorsaddressedinthisreportisavailableonpage99.ForfurtherinformationaboutGRI,visitwww.globalreporting.org.

Basedonourstakeholderinteractions,formalreviews,andtheguidanceofferedbytheGRI’sG3Guidelines,wehaveverifiedthefollowingasourmaterialissues(innoparticularorder):

Blending Our Business and Sustainability Strategies

Ourcommitmenttosustainabilityhasalonghistoryandisevidentinourdailyactions.Simplysaid,wetakeactiononcriticalissuessuchashungerrelief,foodsafety,environmentalprotection,resourceconservation,animalwell-being,ethicalbusinesspractices,thehealthandsafetyofourTeamMembers,andreturningaprofittoourshareholders.Wearefullycommittedtomaintainingoursustainabilitydirectionandtoensuringeconomic,environmental,andsocialissuesremainakeyconsiderationofourbusinessdecisions.

Retaining an Exceptional Team

Ouremployees,whomwecallTeamMembers,areourmostvaluedresource.Wearecommittedtoattracting,developing,andretainingadiversegroupoftalentedTeamMembersandtocreatingaworkplacethatallowseachTeamMembertocontributetothecollectivesuccessofourcompany.Ourprogramsandinitiativesrelatedtodiversityandinclusion,recruiting,compensationandbenefits,andprofessionaldevelopmentarekeytofulfillingthiscommitment,

7.1 Material issues


especiallyintoday’schallengingeconomicclimate.

Ensuring Team Member Health and Safety

Weregardworkplacehealthandsafetyasacoreindicatorofourbusinesssuccess.Accordingly,wepromoteaculturethatvaluesthehealth,safety,andwell-beingofourTeamMembers.ThefoundationforthiscultureisourCoreValues,whichcallforusto“provide a safe work environment for our Team Members.”WearecommittedtomaintainingasafeandhealthyworkenvironmentthatenablesourTeamMemberstoworkfreeofoccupationalinjuryandillness.

Supporting Local Communities and Helping Those in Need

Ourcommunityconsistsofmanypeopleweinteractwithonaregularbasis,includingourcustomers,consumers,andneighbors.Weunderstandwehavearesponsibilitytosupportthecommunitiessurroundingouroperationsaswellasthoseinneed.Throughmonetarycontributions,productdonations,partnerships,

volunteerism,andotherinitiatives,ourTeamMembersexemplifyTysonFoods’commitmenttosupportinglocalcommunitiesandhelpingthoseinneed.

Minimizing Our Environmental Footprint

Ourcontinuedbusinesssuccessisbasedonnumerousfactors,oneofwhichisourenvironmentalperformance.OurCoreValuescallforusto“serve as stewards of the animals, land, and environment entrusted to us.”Wearecommittedtoaggressively,andresponsibly,minimizingourenvironmentalfootprintandtoconservingnaturalresourcesthroughefficientuse,carefulplanning,andcontinualimprovement.

Providing Safe, Nutritious Food Products

Successfulcompaniesknowtheirfuturedependsonprovidingthesafe,qualityproductscustomersandconsumersexpectanddeserve.NothingismoreimportanttoourbusinessthanmaintainingconfidenceintheTysonFoodsbrand.Wearecommittedtomaintainingandcontinuallyimprovingthesystemsandpracticesthatallowustoprovidesafe,nutritiousfoodproductsandupholdanunsurpassedfood-safetyrecord.

Protecting the Well-Being of Our Animals

Producingahigh-qualityfoodproductbeginswithensuringthehealthandwell-beingoftheanimalswegrow,purchase,andprocess.Wehavealong-standingcommitmenttothewell-beingandproperhandlingoftheanimalsusedinourfoodproducts.Thisisnotonlytherightthingtodo;itisalsoanimportantmoralandethicalobligation.

Ensuring the Profitability of Our Company

Althoughwehavefaceddifficultpoultrymarketconditions,beefsupplyanddemandchallenges,andhigherthanaveragelivehogprices,wearecommittedtomaintaininga“senseofurgency”inreturningourcompanytoprofitability.Weremainfocusedonconductingourbusinessactivitiesinanethicalmannerwhilecreatinginnovativeandinsight-drivenfoodchoices,optimizingcommoditybusinessmodels,buildingamultinationalenterprise,andconvertingrawmaterialsandby-productsintohighmargininitiatives.


StakeholderengagementisanimportantpartofTysonFoodssustainabilityactivitiesandouroverallbusinesssuccess.Werecognizeinternalandexternalstakeholderengagementcanhelpbetterdefineourbusinessstrategy;sharpenourdecision-making;andenhanceourcompany’seconomic,environmental,andsocialperformance.Accordingly,we(1)seektounderstandtheperspectivesandneedsofourstakeholders,(2)setexpectationsforareasofmutualconcern,(3)actupontheseexpectations,and(4)ensureourstakeholdersremaininformedofourprogress.

Everyfacetofourcompanyanditsoperationshaspotentialtoaffect,orbeaffectedby,stakeholders.Tobetteralignourbusinesspracticeswithstakeholderexpectations,wemaintainopendialogueandfostercollaborativerelationshipswiththoseindividualsandgroupswhohaveaninterestin,orareaffectedby,ourcompanyanditsoperations.Wehaveidentifiedthefollowingindividualsandgroupsasourkeystakeholders:

•TeamMembersandprospectiveTeamMembers;

•Shareholdersandpotentialinvestors;

•TheBoardofDirectors;

•Customersandconsumers;

•Local,state,andfederalgovernmentagencies;

•Nongovernmentalorganizations;

•Localcommunitymembersandleaders;

•Themedia;

•Suppliers,independentproducers,andotherbusinesspartners;

•Wholly-ownedsubsidiariesandjointventures;and

•Multiculturalorganizations,academia,andindustryassociations.

StakeholderengagementactivitiesoccurinvirtuallyeveryaspectofTysonFoods’operationsandbusinesstransactions.Selectionandengagementwithstakeholdersisconductedprimarilyinadecentralizedmanner,occurringasapartofnormalbusiness.Forexample,accountmanagementteamsareresponsibleforidentifyingandengagingwithcustomers,andmembersofourExternalRelationsdepartmentinteractwithelectedofficials,themedia,communityleaders,andothermembersofthepublic.

TysonFoodsengageswithitsstakeholdersinformalsettingsaswell.Atthelocallevel,forexample,facilitymanagersparticipateinstakeholderengagementthroughstrategiccommunity-involvementplans,donations,communityoutreach,andregionalrecruitingprograms.Atthecorporatelevel,TysonFoodscollaborateswithrepresentativesfromgovernment,academia,andindustrytodiscussemergingissuessuchasproductlife-cycleanalysisandsustainabilityreporting.Forexample,in2007,TysonFoodsalongwithnineothercompaniesandtenstakeholdergroups,begancollaboratingwiththeGlobalReportingInitiative(GRI)todevelopsector-specificsustainabilityreportingstandardsforthefoodprocessingindustry.GRI’svisionisthatreportingonsocial,environmental,andeconomicperformancebecomeasroutineandcomparableasfinancialreporting.Thefood-processing-sectorsupplementwillbetterenablecompaniesandstakeholdersinthefoodprocessingindustrytomoreaccuratelymeasureandcommunicatesustainabilityprogress.Thefinalizedsectorsupplementwillbereleasedinthespringof2010.TysonFoods’participationinthedevelopmentofthesesustainabilityreportingstandardsisjustonemorewayinwhichthecompanyistakingaleadershiproleinsustainabilitywithinthefoodindustry.

7.2 groWing suCCessFul PartnersHiPs – staKeHolder engageMent


Totherightweofferadditionalexamplesofourstakeholderengagementprocess,includingkeystakeholdertopicsandconcernsandhowwerespondtothoseconcerns.

TysonFoods’stakeholdergroupisdiverseandincludesthosewithbothminimalandextensiveknowledgeofourprocesses,company,andoverallindustry.Giventhesize,nature,andcomplexityofourcompany,however,werecognizethisreportmaynotcomprehensivelymeettheinformationneedsofallourstakeholders.StakeholdersneedingadditionalinformationareencouragedtovisitTysonFoods’Websiteatwww.tyson.comore-mailTysonFoodsatsustainability@tyson.com.


Restatements and Changes in Reporting

Thefollowinginformationappearedinthecompany’s2007sustainabilityreportand,afterfurtherreview,isamendedandrestatedinthecompany’s2009sustainabilityreport.

Raised Without Antibiotics

Inour2007sustainabilityreport,wediscussedourAny’tizersTMsnacksandfreshchicken“RaisedWithoutAntibiotics.”OurRaisedWithoutAntibioticschickeninitiativehasbeensuspendedduetolabelingchallenges.Assuch,werecalledandreprintedour2007sustainabilityreportinMay2008,removingallreferencestoRaisedWithoutAntibiotics.IftheU.S.DepartmentofAgriculture(USDA)developsclearguidanceonthislabelingissueinthefuture,wewillevaluateitbeforemakingadecisiononfuturemarketingefforts.

OSHA Rates

Inits2007sustainabilityreport,TysonFoods’LostTimeRate,TotalRecordableIncidentRate,andDays,Away,Restricted,andTransferRatewerereportedas1.18,12.95,and8.88respectivelyforfiscalyear2007.TheserateswerecalculatedbaseduponamanualOSHA300Logdocumentationprocess.In2007,TysonFoodsimplementedacomputerizedOccupationalHealthandSafetySystem,andthecompany’sfiscalyear2007LostTimeRate,TotalRecordableIncidentRate,andDays,Away,Restricted,andTransferRatehavebeenrestatedtoaccuratelyreflectthedatareportedbythissystem.

Water Usage

TysonFoodsreporteditsoverallwaterusagewas28.2billiongallonsinfiscalyear2006and27.5billiongallonsinfiscalyear2007inits2007sustainabilityreport.Ayear-endperformancereviewconductedatthecloseoffiscalyear2008revealeddiscrepanciesbetweenwaterusageanddischargeamounts.Accordingly,thewaterusageamountsforfiscalyears2006and2007havebeenrecalculatedandrestatedinthisreport.

Moreover,itisimportanttonotethewaterusagedatasharedinthisreport,aswellasour2005and2007sustainabilityreports,onlyincludesperformancedatarelatedtoourchicken,beef,andporkprocessingplantslocatedintheUnitedStates.Atthistime,wedonotcollectwaterusagedatarelatedtoourprepared-foodsprocessingplants.Effortsarecurrentlyunderway,however,tobegincollectingthisdata.

Solid Waste and Recycling Data

TysonFoodsreporteditgenerated159,342tonsoflandfillwasteinfiscalyear2006and159,064tonsinfiscalyear2007.Ayear-endperformancereviewconductedatthecloseoffiscalyear2008revealeddiscrepancieswiththisdata.Accordingly,theamountofwastesenttolandfillsforfiscalyears2006and2007havebeenrecalculatedandrestatedinthecompany’s2009sustainabilityreport.

Moreover,itisimportanttonotethesolidwasteandrecyclingdatasharedinthisreportrepresentsthecompany’sU.S.locationsthatmanagetheirsolidwasteandrecyclablematerialsthroughoneofthecompany’s

nationalaccountagreements.FortheportionofTysonFoods’locationsservicedbylocalvendorsthatarenotpartofournationalaccountagreement,however,weareunabletoprovidesolidwasteandrecyclingdata.Duringfiscalyear2010,wewilldevelopastandardreportingprocessthatallsolidwasteandrecyclingvendorswillbeabletoutilize.

Environmental Fines and Penalties

Inits2007SustainabilityReport,TysonFoodsreportedenvironmentalfinesandpenaltiestotaling$201,096forfiscalyears2006and2007.Adiscrepancywiththisdatawasrevealedfollowingayear-endperformancereviewconductedatthecloseoffiscalyear2009.Penaltiesassociatedwiththefollowingincidentswereinadvertentlyomittedfromthe2007SustainabilityReport.

•Acivilpenaltytotaling$10,312forallegedgroundwatercontaminationatourFinneyCounty,Kansas,beefprocessingplant;and

•AnAdministrativeConsentOrder,withamonetarypenaltyof$5,500,forfailuretoobtainanairconstructionpermitatourDenison,Iowa,beefprocessingplant.

Therehavebeennosignificantchangesfrompreviousreportingperiodsinthescope,boundary,ormeasurementmethodsappliedinthisreport.

7.3 restateMents and CHanges in rePorting


Toensuretheintegrityofoursocial,environmental,andfinancialperformancedata,weemployavarietyofinternalandexternalmeasurementresourcesandsystems.

Social Data

ThesocialperformancedatasharedinthisreportisrelatedtoTeamMemberstaffing,compensationandbenefits,professionaldevelopment,workplacesafety,hungerrelief,andcommunitysupport.Thisdataiscollectedfromnumeroussourcesincludingthecompany’sSAP®database;payrollsystem;Environmental,Health,andSafetyIncidentReportingSystem;worker’scompensationsystem;publicdocuments,suchaspressreleases;variousspreadsheetsandsystemsmaintainedbyourbusinessunits;andTysonFoods’2009AnnualReportonForm10-K.Detailspertainingtothescopeandlimitationsofthedatapointssharedinthisreportarepresentedasfootnotesalongside,oradjacentto,thespecificdatapoint.

Environmental Data

Theenvironmentalperformancedatasharedinthisreportisrelatedtoconsumption,disposal,emissions,recycling,andregulatorycompliance.Thisdataiscollectedfromnumeroussourcesincludingthecompany’sSAPdatabase,ElectronicComplianceAutomationToolset,andEnvironmental,Health,andSafetyIncidentReportingSystem;statementsandperformancereportsfromutilityandserviceproviders;publicdocuments,suchaspressreleases;andcompliancereportsandnotificationstoandfromfederal,state,andlocalenvironmentalagencies.Detailspertainingtothescopeandlimitationsofthedatapointssharedinthisreportarepresentedasfootnotesalongside,oradjacentto,thespecificdatapoint.

Financial Data

ThefinancialperformancedatareproducedinthissustainabilityreportisfromTysonFoods2009AnnualReportonForm10-K.Thereportdescribesthecompany’saccountingprinciplesindetailandisavailablethroughourInvestorRelationsWebsiteathttp://ir.tyson.com.AllfinancialinformationsharedinthisreportisprovidedinU.S.dollars,unlessotherwisenoted.

Eachbusinessunitcollectsandverifiesdataforwhichitisresponsible;someofthisdataisverifiedforregulatorycomplianceviabothinternalandexternalauditprocesses.Inaddition,internalsubject-matterexpertsreviewedeachsectionofthisreporttoensurecompletenessandaccuracyoftheinformationpresented.TysonFoods’management,alongwithitsLegalDepartment,conductedareviewoftheinformationpresentedinthisreportandisresponsibleforitsoverallintegrity.Anexternal,third-partyhasnotprovidedassuranceforthisreport.

7.4 data integrity


TysonFoodsreferencedtheGlobalReportingInitiative(GRI)2006G3SustainabilityReportingGuidelinesduringthedevelopmentofthisreport.Thesevoluntaryguidelinesprovideagenerallyacceptedframeworkforthereportingofanorganization’ssocial,environmental,andeconomicperformance.ToindicateareportisGRI-based,anorganizationmustdeclaretheleveltowhichtheyhaveappliedtheGRIreportingframeworkviathe“ApplicationLevels”system.Tomeetthedifferentneedsofbeginner,intermediate,andadvancedreporters,there

arethreeapplicationlevelsincludingC,B,andA.ThereportinglevelsreflectthecoverageoftheGRIreportingframework.Areportingorganizationcanreceiveaplus(+)ifanexternalassuranceproviderverifiesthereport.Forthisreport,bothTysonFoodsandGRIconfirmthattheGRI“B”applicationlevelhasbeenmet.TheindexbelowprovidesdetailsontheGRIindicatorsaddressedinthisreport.ForadditionalinformationaboutGRI,visitwww.globalreporting.org.

STRATEGY AND ANALYSIS

GRI Extent Disclosure Description Location Reported Comments

1.1 StatementfromCEO 1.1;1.2;1.3 Fully

1.2 Keyimpacts,risks, 1.3;Throughout Fully AlsoseeTysonFoods’2009AnnualReportonForm10-K. andopportunities

ORGANIZATIONAL PROFILE


2.1 Organizationname 2.0 Fully

2.2 Primarybrands,products, 2.0;2.1;2.2 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal and/orservices 2009FactBook.

2.3 Operationalstructure 2.2 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal 2009FactBook.

2.4 Locationoforganization’s 2.0 Fully headquarters

2.5 Countriesofoperation 2.0;2.3;6.6 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal 2009FactBook.

2.6 Natureofownershipand 2.0 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal legalform 2009FactBook.

2.7 Marketsserved 2.1;2.2;6.6 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-K.

2.8 Scaleofreportingorganization 2.0;2.1;2.2;2.3; Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal 3.0;3.2;6.2 2009FactBook.

2.9 Significantchangesduring 2.0;2.3;6.2; Fully AlsoseeTysonFoods’2009AnnualReportonForm10-K. reportingperiod 6.5;6.6

2.10 Awardsreceivedduring Throughout Fully reportingperiod

8.0 global rePorting initiative indeX


REPORT PARAMETERS


3.1 Reportingperiod 7.0 Fully

3.2 Dateofmostpreviousreport 7.0 Fully

3.3 Reportingcycle 7.0 Fully

3.4 Contactpointforquestions 7.2 Fully Questionsandcommentscanbeemailedto aboutreport [email protected].

3.5 Processfordefiningreport 7.1;7.2 Fully content

3.6 Boundaryofthereport 7.0 Fully

3.7 Limitationsonthescopeor 7.0 Fully boundaryofthereport

3.8 Basisforreportingon 7.0 Fully subsidiaries,jointventures, leasedfacilities,etc.

3.9 Datameasurementtechniques 7.4 Fully andthebasisofcalculations

3.10 Restatementsofinformation 7.3 Fully providedinearlierreports

3.11 Significantchangesfrom 7.3 Fully previousreportingperiodsin thescope,boundary,or measurementmethodsapplied

3.12 GRIoverview 7.1 Fully

3.13 Externalassurancefor 7.4 Fully Externalassurancehasnotbeenprovidedforthisreport. thereport

GOVERNANCE, COMMITMENTS, AND ENGAGEMENT


4.1 Organization’sgovernance 3.1;6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite structure (www.tyson.com/corporate/).

4.2 RolesoftheChairmanofthe 6.1 Fully BoardandtheCEO

4.3 MembersoftheBoard 6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite (www.tyson.com/corporate/).

4.4 Mechanismsforshareholders 3.1;7.2;6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite andemployeestoprovide (www.tyson.com/corporate/). recommendationstotheBoard


GOVERNANCE, COMMITMENTS, AND ENGAGEMENT (con’t)


4.5 Linkagebetweencompensation 6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite formembersofthehighest (www.tyson.com/corporate/). governancebody,senior management,andexecutives

4.6 ProcessfortheBoardtoensure 6.1 Fully conflictsofinterestareavoided

4.7 Processfordeterminingthe 6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite qualificationsofBoardmembers (www.tyson.com/corporate/).

4.8 Statementsofinternally Throughout Fully developedmissionorvalues, codesofconduct,andprinciples relevanttosocial,environmental, andeconomicperformance

4.9 ProceduresfortheBoardto 3.1;6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite overseetheorganization’s (www.tyson.com/corporate/). identificationandmanagement ofsocial,environmental,and economicperformance

4.10 Processforevaluatingthe 6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite Board’sperformance,particularly (www.tyson.com/corporate/). withrespecttotheorganization’s social,environmental,and economicperformance

4.11 Explanationofwhetherandhow 6.1 Fully theprecautionaryapproachor principleisaddressedbythe organization

4.12 Externallydevelopedsocial, Throughout Fully environmental,andeconomic charters,principles,andother initiativestowhichthe organizationsubscribesor endorses

4.13 Membershipofassociation 6.7 Fully

4.14 Listofstakeholdergroups 7.2 Fully engagedbytheorganization

4.15 Identificationandselectionof 7.2 Fully stakeholderswithwhomtoengage


GOVERNANCE, COMMITMENTS, AND ENGAGEMENT (cont’d)


4.16 Approachestostakeholder 7.1;7.2 Fully engagement

4.17 Keytopicsandconcernsthat 7.2 Fully havebeenraisedthrough stakeholderengagement

ECONOMIC (*=Core Indicator)


Economic 1.1,1.4,2.0,2.1,DMA 2.2,3.2,3.5,5.1, Fully Alsoseeour2009AnnualReportonForm10-K. 6.0,6.3

EC1* Directeconomicvaluegenerated Throughout Fully Alsoseeour2009AnnualReportonForm10-K. anddistributed

EC2* Financialimplicationsandother 4.6;6.0 Fully Alsoseepage12ofour2009AnnualReportonForm10-K. risksandopportunitiesforthe organizationrelatedtoclimate change

EC3* Coverageoftheorganization’s TysonFoods2009 Fully Seepages66-69ofTysonFoods2009AnnualReportonForm10-K. definedbenefitplanobligations AnnualReporton Form10-K

EC4* Significantfinancialassistance GRIIndex Fully Thefederalgeneralbusinesscreditsarethesignificantfinancialbenefits receivedfromgovernment receivedfromthegovernmentbyTysonFoods.Duringfiscalyears2008 and2009,thesecreditswerereflectedasbenefitsofapproximately, $7millionand$13million,respectively.

EC5 Standardentrylevelwage 3.2 Fully comparedtolocalminimum wage

EC6* Policy,practices,andproportion 5.1;6.3 Fully ofspendingonlocallybased suppliers

EC7* Proceduresforlocalhiringand 3.2 Fully proportionofseniormanagement hiredfromlocalcommunity

EC8* Developmentandimpactof 3.5 Fully infrastructureinvestmentsand services

EC9 Significantindirecteconomic NotReported Wecurrentlydonotreportonthisnon-coreindicator. impacts


ENVIRONMENTAL (*=Core Indicator)


Environmental 1.1,1.4,4.0,4.1,4.2,DMA 4.3,4.4,4.5,4.6,4.7, 4.8,6.1,6.3,6.5,6.8

EN1* Materialsusedbyweightor GRIIndex Fully Wecurrentlydonothavedatasupportingthiscoreindicator.Wewill volume evaluateourabilitiesandvariousmethodologiesforcollectingand reportingonthisdatainthelong-termfuture.

EN2* Percentageofmaterialsused GRIIndex Fully Wecurrentlydonothavedatasupportingthiscoreindicator.Wewill thatarerecycledinputmaterials evaluateourabilitiesandvariousmethodologiesforcollectingand reportingonthisdatainthelong-termfuture.

EN3* Directenergyconsumptionby 4.6 Fully primaryenergysource

EN4* Indirectenergyconsumptionby 4.6 Fully primarysource

EN5 Energysavedduetoconservation 4.6 Fully andefficiencyimprovements

EN6 Initiativestoprovideenergy 6.5 Fully efficientorrenewableenergy- basedproductsorservices

EN7 Initiativestoreduceindirect 4.6 Fully energyconsumptionand reductionsachieved

EN8* Totalwaterwithdrawalbysource 4.6;GRIIndex Fully Wecurrentlydonothavedatasupportingthe“bysource”requirement ofthiscoreindicator.Wewillevaluateourabilitiestocollectandreport thisdatainthenearfuture.

EN9 Watersourcessignificantly NotReported Wecurrentlydonotreportonthisnon-coreindicator. affectedbywithdrawalofwater

EN10 Percentageandtotalvolumeof 4.6 Fully TysonFoods’effortstoreduce,reuse,and/orrecyclewaterare waterrecycledandreused presentedasthecompany’swaterconservationefforts.

EN11* Locationandsizeoflandowned, GRIIndex Fully Afterreviewingtheregionalbiodiversity“hotspots”identifiedbyConservation leased,managedin,oradjacent International,TysonFoods,atthistime,hasnotidentifiedanyofits toprotectedareasandareasof U.S.-basedoperationsthatarein,oradjacentto,legallyprotectedhigh highbiodiversityvalueoutside biodiversityareas.Foradditionaldetails,pleasevisitConservation protectedareas Internationalathttp://www.conservation.org/Pages/default.aspx.


ENVIRONMENTAL (*=Core Indicator) (cont’d)


EN12* Descriptionofsignificantimpacts GRIIndex Fully SeecommentforEN11 ifactivities,products,andservices onbiodiversityinprotectedareas andareasofhighbiodiversity valueoutsideprotectedareas

EN13 Habitatsprotectedorrestored NotApplicable SeecommentforEN11

EN14 Strategies,currentactions,and NotApplicable SeecommentforEN11 futureplansformanagingimpacts onbiodiversity

EN15 NumberofIUCNRedListspecies NotApplicable SeecommentforEN11 andnationalconservationlist specieswithhabitatsinareas affectedbyoperations

EN16* Totaldirectandindirect 4.6 Fully greenhousegasemissionsby weight

EN17* Otherrelevantindirect 4.6 Fully greenhousegasemissionsby weight

EN18 Initiativestoreducegreenhouse 4.6;6.5 Fully gasemissionsandreductions achieved

EN19* Emissionsofozonedepleting GRIIndex Fully TysonFoods’emissionsofozonedepletingsubstances(HCFC substancesbyweight 134/134a)isapproximately0.00108millionmetrictonsperyear.Thisis lessthan0.018percentofthecompany’stotalairemissions.

EN20* NOx,SOx,andothersignificant 4.6;GRIIndex Fully Wecurrentlydonothavedatasupportingthe“byweight”requirement airemissionsbytypeandweight ofthiscoreindicator.Wewillevaluateourabilitiestocollectandreport thisdatainthenearfuture.

EN21* Totalwaterdischargebyquality GRIIndex Fully Wecurrentlydonothavedatasupportingthiscoreindicator.Wewill anddestination evaluateourabilitiestocollectandreportwaterdischargebyquality anddestinationdatainthenearfuture.

EN22* Totalweightofwastebytype 4.6;GRIIndex Fully Wecurrentlydonothavedatasupportingthe“bytypeanddisposal anddisposalmethod method”requirementofthiscoreindicator.Wewillevaluateourabilities tocollectandreportthisdatainthenearfuture.

EN23* Totalnumberandvolumeof 4.6 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-K. significantspills


ENVIRONMENTAL (*=Core Indicator) (cont’d)


EN24 Weightoftransported,imported, NotReported Wecurrentlydonotreportonthisnon-coreindicator. exported,ortreatedwastedeemed hazardousunderthetermsofthe BaselConvention

EN25 Identity,size,protectedstatus, NotReported Wecurrentlydonotreportonthisnon-coreindicator. andbiodiversityvalueofwater bodiesandrelatedhabitats significantlyaffectedbythe reportingorganization’s dischargesofwaterandrunoff

EN26* Initiativestomitigate 4.6 Fully environmentalimpactsof productsandservices

EN27* Percentageofproductssoldand 4.6 Fully theirpackagingmaterialsthatare reclaimedbycategory

EN28* Monetaryvalueofsignificantfines 4.7 Fully andtotalnumberofnon-monetary sanctionsfornon-compliance withenvironmentallawsand regulations

EN29 Significantenvironmentalimpacts NotReported Wecurrentlydonotreportonthisnon-coreindicator. oftransportingproductsandother goodsandmaterialsusedforthe organization’soperations,and transportingmembersofthe workforce

EN30 Totalenvironmentalprotection NotReported Wecurrentlydonotreportonthisnon-coreindicator. expendituresandinvestments bytype

LABOR PRACTICES (*=Core Indicator)


LaborDMA 1.1,1.4,3.0,3.1,3.2, 3.3,4.2,5.3,5.4,6.1

LA1* Workforcebyemploymenttype, 3.2;GRIIndex Fully Wereportontotalnumberofemployees,whomwecallTeamMembers. employmentcontract,andregion Approximately99percentofourU.S.-basedTeamMembersservein full-timepositions.


LABOR PRACTICES (*=Core Indicator) (cont’d)


LA2* Numberandrateofemployee 3.2;GRIIndex Fully Wereportourturnoverrate,butdonotbreakthisratedownbyage, turnoverbyage,group,gender, group,gender,orregion.Thismaybeareportingindicatorwefurther andregion evaluateforreportingcapabilitiesinthelong-termfuture.

LA3 Benefitsprovidedtofull-time 3.2 Fully employees

LA4* Percentageofemployeescovered 3.2 Fully bycollectivebargaining agreements

LA5* Minimumnoticeperiod(s) 3.2 Fully regardingsignificantoperational changes

LA6 Percentageofemployees 3.3 Fully representedinformaljoint management-workerhealth andsafetycommittees

LA7* Ratesofinjury,occupational 3.3 Fully diseases,lostdays,and absenteeism,andnumberof work-relatedfatalities

LA8* Education,training,counseling, 3.2;3.3 Fully prevention,andriskcontrol programsinplacetoassist workforcemembers,theirfamilies, orcommunitymembersregarding seriousdisease

LA9 Healthandsafetytopicscovered 3.3 Fully informalagreementswithtrade unions

LA10* Averagehoursoftrainingperyear 3.1;3.2;3.3;4.2;6.1 Fully Wemaintainextensivetrainingprogramsrelatedtokeybusinessareas peremployeebyemployee suchasfoodsafety,ethicsandcodeofconduct,anti-trustand category corruption;workplacesafety,animalwelfare,employmentpractices,and environmentalprotection.Atthistime,wearenotcapableoftracking averagetraininghoursperemployeebycategoryhowever.Thismaybe areportingindicatorwefurtherevaluateforreportingcapabilitiesinthe long-termfuture.

LA11 Programsforskillmanagement 3.2;5.3;5.4 Fully andlifelonglearning


LABOR PRACTICES (*=Core Indicator) (cont’d)


LA12 Percentageofemployees 3.2 Fully receivingregularperformance andcareerdevelopmentreviews

LA13* Compositionofgovernance 6.1 Fully bodiesandbreakdownof employeespercategoryaccording togender,agegroup,minority groupmembership,etc.

LA14* Ratioofbasicsalaryofmento NotReported Wecurrentlydonotreportonthiscoreindicator. womenbyemployeecategory

HUMAN RIGHTS (*=Core Indicator)


HumanRights 1.1,1.4,3.0,3.1,DMA 3.2,3.3

HR1* Percentageandtotalnumberof GRIIndex Fully Outinvestmentclausesdiscusscompliancewithapplicablefederal, significantinvestmentagreements state,andlocalregulationsbutdonotspecificallyincludehuman thatincludehumanrightsclauses rightsclauses.

HR2* Percentageofsignificantsuppliers GRIIndex Fully Wecurrentlydonotscreenoursuppliersandcontractorsonhuman andcontractorsthathave rights.Wearedevelopinga“SupplierCodeofConduct,”however,that undergonescreeningonhuman willsetforthsupplierandcontractorexpectationsonkeybusiness rights issuessuchasregulatorycompliance,employmentpractices(including humanrights),foodsafetyandqualityassurance,workplacehealthand safety,animalwelfare,andenvironmentalprotection.Weplantorelease ourSupplierCodeofConductinthenearfuture.

HR3 Totalhoursofemployeetraining 3.1;3.2;3.3 Fully onpoliciesandprocedures concerningaspectsofhuman rights

HR4* Totalnumberofincidentsof 3.2;GRIIndex Fully Generally,TysonFoodsdoesnotpubliclydiscussreportedincidents discrimination ofdiscrimination.AsnotedinSection3.2ofthisreporthowever,we considerdiscriminationtobeaseriousissueandinvestconsiderable resourcestopreventitsoccurrence.Moreover,wefullyinvestigateeach allegationofdiscriminationand,ifnecessary,implementcorrective. Allegedincidentsofdiscriminationresultinginstateorfederalcourt filingsaregenerallyamatterofpublicrecord.Whilestateandfederal databasesmaybesubjecttoasubscriptionorsearchfee,these recordscantypicallybeaccessedwithintherespectivecourtsystem viatheInternet.


HUMAN RIGHTS (*=Core Indicator) (cont’d)


HR5* Operationsidentifiedinwhichthe 3.2 Fully righttoexercisefreedomof associationandcollective bargainingmaybeatsignificant risk

HR6* Operationsidentifiedashaving 3.2 Fully significantriskforincidentsof childlabor

HR7* Operationsidentifiedashaving 3.2 Fully significantriskforincidentsof forcedorcompulsorylabor

HR8 Percentageofsecuritypersonnel NotReported Wecurrentlydonotreportonthisnon-coreindicator. trainedintheorganization’spolicies orproceduresconcerningaspects ofhumanrights

HR9 Totalnumberofviolationincidents 3.2 Fully involvingrightsofindigenous people

SOCIETY (*=Core Indicator)


SocialDMA

SO1* Nature,scope,andeffectiveness 3.5 Fully ofanyprogramsandpractices thatassessandmanagetheimpact ofoperationsoncommunities

SO2* Percentageandtotalnumberof 6.1 Fully businessunitsanalyzedforrisks relatedtocorruption

SO3* Percentageofemployeestrained 6.1 Fully intheorganization’santi-corruption policiesandprocedures

SO4* Actionstakeninresponseto NotReported Wecurrentlydonotreportonthiscoreindicator. incidentsofcorruption

SO5* Publicpolicypositionsand 6.7;6.8 Fully participationinpublicpolicy developmentandlobbying


SOCIETY (*=Core Indicator) (cont’d)


SO6 Totalvalueoffinancialandin-kind 6.7 Fully contributionstopoliticalparties, politicians,andrelatedinstitutions

SO7 Totalnumberoflegalactionsfor NotReported Wecurrentlydonotreportonthisnon-coreindicator. anti-competitivebehavior,anti- trust,andmonopolypractices

SO8* Valueofsignificantfinesandtotal 3.3;4.7;GRIIndex Forthisindicator,TysonFoodsdefinessignificantasfinesequaltoor ofnon-monetarysanctionsfor greaterthan$500,000dollars.Twospecificfinesequaltoorgreaterthan non-compliancewithlawsand thisamountarepresentedinsections3.3and4.7ofthisreport.Tyson regulations Foods,atthistime,hasnotidentifiedanyotherfinespaidduringfiscal years2008and2009equaltoorgreaterthanthisamount.

PRODUCT RESPONSIBILITY (*=Core Indicator)


ProductResponsibilityDMA

PR1* Lifecyclestagesinwhichhealth 5.1;5.3;5.4 Fully andsafetyimpactsofproducts andservicesareassessedfor improvement

PR2 Totalnumberofincidentsofnon- NotReported Wecurrentlydonotreportonthisnon-coreindicator. compliancewithregulationsand voluntarycodesconcerninghealth andsafety

PR3* Typesofproductsandservice 5.2;5.4 Fully informationrequiredby procedures

PR4 Totalnumberofincidentsofnon- 5.1 Fully compliancewithregulationsand voluntarycodesconcerning productandserviceinformation andlabeling

PR5 Practicesrelatedtocustomer 5.2;5.3;5.4 Fully satisfaction

PR6* Programsforadherencetolaws, 5.5 Fully standards,andvoluntarycodes relatedtomarketingcommunications


PRODUCT RESPONSIBILITY (*=Core Indicator) (cont’d)


PR7 Totalnumberofincidentsofnon- 5.5 Fully compliancewithregulationsand voluntarycodesconcerning marketingcommunications

PR8 Totalnumberofsubstantiated NotReported Wecurrentlydonotreportonthisnon-coreindicator. complaintsregardingbreaches ofcustomerprivacyandlosses ofcustomerdata

PR9* Valueofsignificantfinesfornon- GRIIndex Fully Wedidnotincuranyfinesfornon-compliancewithlawsandregulations compliancewithlawsand concerningtheprovisionanduseofourproductsduringfiscalyears regulationsconcerningthe 2008and2009. provisionanduseofproducts andservices


8.1 aCKnoWledgeMentsWethankthefollowingcontributorsfortheirhelp,guidance,andvaluableinputwiththedevelopmentofthisreport:AuditandCompliance;HumanResources;QualityAssurance;AnimalWell-Being;Environmental,Health,andSafetyServices;International;ResearchandDevelopment;InvestorRelations;PurchasingandSourcing;Legal;andExternalRelations.

WealsowishtoextendaspecialthankstoTysonFoods’ExternalRelationsDepartmentfortheirdesign,photography,andeditorialassistanceinthedevelopmentandproductionofthisreportandWebsite.


8.2 ContaCtsFormoreinformationaboutTysonFoods’sustainabilityeffortsandperformance,youmaycontactusthefollowingways:

Email:[email protected]

Website:www.tyson.com

Mail/Phone: KevinJ.Igli

SVPandChiefEHSOfficer

TysonFoods,Inc. 2200DonTysonParkway,CP393 Springdale,AR72762-6999

(479)290-4713

LeighAnnJohnston

EHSTraining,Communication,and SustainabilityManager

TysonFoods,Inc. 2200DonTysonParkway,CP39 Springdale,AR72762-6999

(479)290-3419


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