Annual and Sustainability Report | 2019
Pilgrim's Sanford, NC, Family Farm Partner Barn with Broiler Chicks

Our Business
JBS USA

Sustainability:
Product integrity

Supplier relationships

The nature of our business demands a diverse supplier base; we work in partnership with more than 81,000 suppliers to ensure the highest-quality inputs. Our suppliers range from small family farms and ranch partners who supply us with livestock and poultry to large multinational companies that manufacture and provide materials and services. Impacts related to environmental and social aspects differ for each supplier based on the materials they manufacture, the animals they raise or the services they provide. Directly affecting these impacts chain is often outside of the immediate control of JBS USA, which is why we strive to form partnerships with suppliers who share the Company’s values and mission to achieve more sustainable food production.

For example, in Europe, Moy Park takes part in the Meet the Buyer initiative to meet with local companies and discuss opportunities for collaboration. Meetings are held by local councils to support small regional companies, creating business opportunities.

 

Guarantee of origin

JBS USA works in partnership with suppliers to guarantee the quality of the raw materials used in its production.

 

Chicken suppliers

More than 4,900 family farms have partnered with Pilgrim’s in the United States, Puerto Rico, Mexico and Europe to raise our chickens. In the United States, we work in partnership with independent family farmers to raise our chickens; we provide the chickens and feed, as well as technical and veterinary services. In Europe and Mexico, in addition to our own poultry facilities, the Company works in partnership with family farmers who maintain the Pilgrim’s standards of excellence on their farms.

Committed to quality across its value chain, Pilgrim’s conducts audits on a sub-set of family farm producers in the United States according to the Company’s Animal Welfare Program, with the support of a team of internal and external auditors.

In Mexico, every farm is audited in compliance with Mexican government standards, including those issued by the Ministry of Agriculture and Rural Development (SADER), the Mexico-United States Commission for the Prevention of Diseases and Other Exotic Animal Diseases (CPA), the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), the Ministry of the Environment and Natural Resources (SEMARNAT) and the State Civil Protection.

In Europe, all farms are certified by the Red Tractor initiative, the largest food standards scheme in the United Kingdom, with performance that meets or exceeds the criteria of this initiative, as well as of other certifications. Pilgrim’s Moy Park has developed a Policy for Supply Chain Assurance for meat and ingredients, ensuring that meat products come from suppliers certified by the Red Tractor initiative or an equivalent initiative.

JBS USA Finishing Hog

Pork suppliers

In 2019, our U.S. based business purchased more than 24.8 million hogs from approximately 800 family farmers to supply our five U.S. pork production facilities.  Pilgrim’s Tulip sourced more than 2.9 million hogs from 930 family farm partners. Approximately 50% of Tulip’s hogs are sourced from our integrated supply chain.

In the U.S., we require all family farm partners that supply hogs to our facilities to be certified and site-assessed according to the Pork Quality Assurance Plus (PQA+) Program. We conduct third party audits of a subsample of our partners according to the PAACO-certified Common Swine Industry Audit. We also conduct internal animal welfare audits on a sub-sample of our suppliers.

Hogs that are consigned for sale in Australia must be tagged with an approved NLIS device. National Vendor Declaration (NVD), which is the main document that upholds the Australian meat and livestock food-safety reputation and product traceability. When the NVD is signed, the producer declares compliance with the Livestock Producer Assurance (LPA) program, which is an independently audited on-farm food-safety certification program. The NVD contains important information on the husbandry of livestock consigned for harvest. In addition, before livestock leave their property of birth, they must be tagged with an approved National Livestock Identification System (NLIS) device. This allows animal movements to be recorded in a national database and provides the assurance of livestock trace-back to the property of birth and trace-forward from the property of birth. All hogs are sourced from Australia Pork Industry Quality Assurance Program (APIQ) accredited farms with industry best-practice animal welfare standards.

Moy Park purchases pork from approved suppliers, which are audited annually for food safety and animal welfare.

At Tulip, stringent control of the supply chain guarantees that all livestock are treated according to the high animal welfare standards. Our Tulip hog farms and hog and lamb suppliers are assured to either Royal Society for Prevention of Cruelty to Animals (RSPCA), Red Tractor or Quality Meat Scotland (QMS) standards. Our Tulip owned hogs are outdoor bed and raised according to the RSPCA higher welfare standards. In a privately commissioned, standalone assessment Tulip has been awarded the highest rating, a Tier 1 ranking, for its animal welfare standards, under the ‘Business Benchmark on Farm Animal Welfare’ (BBFAW).

Beef suppliers

In 2019, JBS USA Beef and JBS Food Canada purchased more than eight million head of cattle from approximately 32,000 family farms and ranches to supply 10 beef production facilities. JBS Australia purchased approximately 4.2 million head of livestock from 17,077 partner producers,, including cattle, lambs, sheep, goats and veal calves, to supply its 12 production facilities.

In the United States and Canada, cattle suppliers are required to sign an affidavit assuring their compliance with government regulations and animal-welfare certification according to the Beef Quality Assurance (BQA) or equivalent program. We also encourage feedyard partners to add their feedyard to the precompetitive National Cattlemen’s NCBA Feedyard Assessment Database. We anticipate 60% of our feedyard partners will participate by January 1, 2021. In addition, we will ensure third-party verification of the Beef Quality Assurance (BQA) Feedyard Assessment for 25% of our cattle supply.

In Australia, livestock are required to have a NVD to be sold. In addition, before cattle leave their property of birth, they must be tagged with an approved NLIS device.

In Europe, Moy Park in Orleans, France, only purchases beef from approved suppliers, who are audited annually for food safety and animal welfare. The Company has developed contracting initiatives along with French beef breeder associations, with the goal of ensuring a stable market for producers. Moy Park also encourages its suppliers to purchase cattle from farms with good farming practices, which in France are certified by the “Charte des Bonnes Pratiques d’élevage,” established by the National Livestock Confederation. Meat from the Netherlands and Ireland also comes from programs that guarantee Good Farming Practices. All 1,600 contracted farm partners are audited for animal welfare and environmental performance.

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