Danish Crown Group Animal Welfare Policy

October 2020 - Version 1.0

Danish Crown Group Animal Welfare Policy

Danish Crown Group Animal Welfare Policy

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Content Key Principles.................................................................................................................................................................................... 3 Scope of our supply chains.................................................................................................................................................... 6 Management of Animal Welfare....................................................................................................................................... 7 Sustainable Farming Board.................................................................................................................................................. 8 Agriculture Supply Chain teams....................................................................................................................................... 9 How we raise our pigs and cattle..................................................................................................................................... 11 Reporting on Performance.................................................................................................................................................. 16 Investing to improve................................................................................................................................................................. 18

Danish Crown Group Animal Welfare Policy

Useful links...................................................................................................................................................................................... 20

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Key Principles

Danish Crown is owned by more than 6,000 Danish farmers and over the years, we have worked closely with our owners and more than 13,000 farmers supplying our interests in our other markets, as well as with researchers and organisations in the agricultural sector to develop a high-quality and sustainable livestock production with a focus on parameters such as animal welfare, breeding and rearing, and veterinary health.

In addition to meeting both EU and national animal welfare legislation, and reflecting a clear market

focus, Danish Crown operates within industry standards such as the Global Red Meat Standard, Danish Product Standard and the Danish Crown Product Standard for UK Welfare Pigs in Denmark, the QS scheme in Germany, and the Grundcertifiering Gris in Sweden.

An illustration of this independent auditing can be found in the Swedish organic KRAV scheme that has a clear focus on animal welfare and the environment.

All of our Swedish plants are certified according to KRAV and have third party audits twice a year – one an announced visit for the whole KRAV scheme, and the other, an unannounced audit focused on animal welfare only. And that’s just one of the schemes in which we participate!

In addition, working with Danish authorities, animal welfare organisations and customers, Danish Crown businesses has developed a range of programmes to deliver higher welfare products to meet specific market, customer and consumer requirements.

Danish Crown Group Animal Welfare Policy

Danish Crown Group is a global meat processing company and among the largest in its field. As such we recognise the impact of our global activities – on the animals in our care, on our own workforce, on the environment and on the communities in which we operate - and we recognise our responsibility for seeking to make that impact positive. As a farmerowned cooperative, we are constantly reminded of our obligations and responsibilities towards our surroundings.

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The good quality of our products starts on the farm and at the slaughterhouse. Care and respect for the

animals and nature are crucial for ensuring that we can produce high-quality products and create value for our customers and for consumers – and at the end of the day for our owners.

We are committed to driving up animal welfare standards within the business and with our suppliers.

The globally-recognised Five Freedoms (as defined by the Farm Animal Welfare Council) form the core of our own farming supply chain animal welfare standards and is a requirement of all of our suppliers.

Danish Crown Group Animal Welfare Policy

We believe that good business is predicated on good animal health and welfare, but this is not just a demand from our farmer owners. A sustainable business requires that we meet and exceed both customer and consumer expectations, and in each of our four home markets – and in many of our export markets – consumer demand for higher welfare standards continues to grow. Meeting these demands is an important element of our licence to produce.

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2. Freedom from discomfort - by providing an appropriate environment including shelter and a comfortable resting area 3. Freedom from pain, injury or disease - by prevention or rapid diagnosis and treatment 4. Freedom to express normal behaviour - by providing sufficient space, proper facilities and the company of the animal’s own kind 5. Freedom from fear & distress -by ensuring conditions and care which avoid mental suffering To support these welfare commitments demands robust traceability systems, not just to meet customer requirements in all markets that we serve, but also to provide additional consumer assurance.

Our markets also demand the highest levels of food safety and our standards are linked directly to all welfare systems across the business. This can be seen, for example, in the area of antibiotic usage in Denmark where the national VetStat system and Yellow Card scheme deliver some of the lowest levels of livestock antibiotic usage of all major pig and cattle producing countries.

Food consumption and production have become increasingly high-focus topics, with consumers extending their interest to many more parameters than seen previously. Danish Crown has developed a sustainability strategy where animal welfare, veterinary safety and use of antibiotics are just some of the elements that fall within our ‘Sustainable Farming’ programme. Specific actions to achieve each of our sustainability commitments are detailed in our Sustainability Plan and progress is reported annually.

Danish Crown Group Animal Welfare Policy

1. Freedom from hunger & thirst - by ready access to fresh water and a diet to maintain full health & vigour

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Scope of our supply chains

In Denmark, Sweden, Poland and Germany, our business interests manage both pork and beef supply chains. Our Danish supply chain accounts for approximately 75% of the Danish sector and more than 68% of the pigs processed within the

group, with Germany processing 18%, Poland 8% and Sweden 6% of the group’s pigs. Our Danish beef operations process almost 35% of the group’s cattle, with Germany accounting for 22%, Poland 24% and Sweden 19%. Reflecting its leading market position, Danish Crown is a key driver of welfare advances in many areas, such as market-leading antibiotics controls and the development of free farrowing systems in Denmark.

Our group animal welfare policy applies to all markets, to both pork and beef, and to all Danish Crown brands, although higher standards will be applied according to markets, customer requirements, participation in third-party accreditation schemes, and company quality programmes.

Danish Crown Group Animal Welfare Policy

Danish Crown is the largest pork processor in the EU and the fifth largest EU beef processor, and trades with 136 markets across the globe. As a group, we have primary processing interests in Denmark, Sweden, Poland, and Germany, and in 2019/20 we processed some 18.8 million pigs and 879,000 cattle.

We also have manufacturing operations in the UK, France, the Netherlands and China, while our DatSchaub business that adds value to fifth quarter products has interests in approximately 30 markets.

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Management of Animal Welfare In terms of animal welfare, Danish Crown adopts a push:pull strategy, working to strengthen basic standards while developing programmes that may initially be demanding and small in scale, but which provide a pathway to wider participation.

and in our Danish, Swedish and German supply chains livestock must be sourced from producers that are accredited to recognised animal welfare schemes including the Danish Product Standard, Danish UK Contract, Grundcertifiering Gris, and QS.

We are committed to ensuring that across the group, all supplying farms and processing sites comply with legislative standards at both EU and national level (which in some areas, can exceed EU requirements),

By definition, these assurance schemes set standards that in many areas are higher than both EU and national legislation

Participation in assurance schemes

Denmark

% Total Cattle Participation

Danish Transport Standard Danish Product Standard Other schemes with additional welfare demands include: Danish UK Contract 3 Hearts/Antonius/Friland/ Bornholm

100 100

Grundcertifiering Gris Incl. KRAV

Germany Poland

Sweden

% Total Participation

Danish Transport Standard Dansk Gastro Kalv Friland Danish Beef Cattle 3 Hearts scheme Dairy cattle Other

100 35 9 7 tbc 32

100 (3)

KRAV

(10)

QS

100

QS

100

Together into the Future programme (working with farmers, a broad scheme setting standards including biosecurity, nutrition, genetics and food safety, but also animal welfare requirements in areas such as ventilation, housing and access to water)

60

Together into the Future programme

35 4

10

Danish Crown Group Animal Welfare Policy

Pigs

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Sustainable Farming Board

board will set new animal welfare target for the whole group and approve individual improvements for each business unit.

Danish Crown Group Animal Welfare Policy

The new sustainable farming board will in the next strategy period, implement animal welfare improvements across the group. In Q4 2020, the

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Agriculture Supply Chain teams

In each of our markets, the Agriculture Team led by the Agriculture Director is responsible for: • Establishing, communicating and monitoring animal health and welfare standards • Managing and monitoring independent third-party audit programmes • Provision of information to the Management Board in the country in which they operate While our Swedish operation has a different structure, it is directed at senior level to meet the same objectives. Our Swedish establishments, for example, have animal welfare meetings with participants from AWO, government (Swedish Food Agency and Länsstyrelsen (county administrative board), lairage workers, animal transporters, people responsible for transport logistics, quality assurance, and plant management. Meeting frequency is at least quarterly and different topics are discussed such as findings from the official veterinarians, improvements, topics concerning transport of animals, KPI´s etc.

A global committee comprising senior executives from across the group oversees the development of overall welfare policies. Information will also be reported periodically to the group Management Board.

In each market, they are supported by dedicated teams including animal health and welfare and food safety specialists who work with our supply chains, customers and industry organisations to ensure that proscribed standards are consistently implemented.

At each of our primary processing facilities and in all markets, we have animal welfare officers (who are required to receive specialist training), and independent (government) vets to ensure that our welfare standards are implemented. This includes vet inspection of all animals upon delivery to the plants.

Carcases are also inspected by official veterinarians and checks include signs of potential compromised animal welfare.

Processes are in place to review audit reports from farm animal welfare accreditation schemes and from client audit visits. In the event of a non-conformance, and as set out in the Supplier Code of Conduct, the issue will be investigated, and corrective actions taken where required within an agreed timescale. Periodic review of reports is carried out to identify any structural challenges that may need communication to our supply chains.

We strive to stay at the forefront of global and local animal welfare developments in order that we can identify key opportunities for integration into our own supply chains. This is achieved through local and group knowledge transfer programmes, and through active engagement with industry organisations.

One of the benefits of our global operations is the facilitation of knowledge transfer across the business to the benefit of all.

Having direct interests in different markets also places additional challenges on the business. Our Sokolow business was only acquired in 2014, and its integration is a wide-ranging task. In 2018, an animal welfare department was established and an Animal Welfare policy for Sokolow is currently being finalised for approval before the end of 2020.

Reflecting its leading positions in each of its home markets, Danish Crown and its subsidiaries are actively involved in helping to drive industry improvements in animal welfare. This is achieved through active participation in the work of industry bodies and through partnerships with academic institutions, examples of which are listed below.

Danish Crown Group Animal Welfare Policy

Dedicated Agriculture Supply Chain teams work closely both with colleagues within the businesses and with farmers, industry organisations and customers to ensure that proscribed welfare standards are maintained and, wherever possible, improved. Our animal welfare requirements are clearly set out in supplier contracts according to specific market demands.

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Denmark

Danish Technical University Copenhagen University, Animal Life Sciences Aarhus University, Department of Animal Welfare Science

Sweden

Svenska Köttföretagen, Swedish University of Agricultural Sciences, SCAW (Swedish Centre for Animal Welfare)

Poland

Poznan University of Life Sciences University of Environmental and Life Sciences, Wroclaw Siedice University of Natural Sciences and Humanities University of Warmia & Mazury University of Agriculture, Krakow University of Sciences & Technology, Bydgosszcz

Germany

Stiftung Tierärztliche Hochschule Hannover Beratungs- und Schulungsinstitut für Tierschutz bei Transport und Schlachtung

Animal Welfare and her thesis looked at the handling of sows at the slaughterhouse, while a colleague in the Agriculture team focused her Masters thesis on welfare and sow transport .

Danish Crown Group Animal Welfare Policy

As well as working with industry bodies and universities, Danish Crown also invests in training and knowledge development of its personnel. For example, a member of our Food safety team in Denmark recently completed her Masters degree in

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How we raise our pigs and cattle Animal health and welfare is a cornerstone of our business. To meet both societal and customer expectations, we demand of ourselves that, as sentient beings, all of the livestock that we process are treated humanely throughout their lives.

Farm Assurance

Reflecting local market demands, there will be differences across our businesses, and while EU legislation forms a statutory minimum, in many areas, standards, whether from national legislation or industry, company and customer welfare programmes, exceed this baseline.

Reflecting the demands from both customers and consumers for supply chain integrity, in addition to EU and national legislation, each of our markets offers the additional assurance (and higher standards) of recognised and independently audited farm assurance schemes; detail of some of these can be accessed below.

Traceability Robust traceability systems are demanded by both customers and consumers to ensure that the expected standards of food safety, and animal health and welfare are consistently delivered. All of our supply chains are required to meet levels of traceability as set out in EU legislation, but we also deliver higher levels in order to meet standards set out in national legislation and a range of quality assurance schemes and customer standards. Those standards extend to inputs to the various livestock systems and include, for example, animal feed and its constituent ingredients, and livestock medicines.

For example, Danish beef can always be traced back to the farm where the animal was raised. All cattle have an 11-digit earmark. The first six digits indicate where the animal was born, and the last five digits are the specific number of the individual animal.

Earmarking ensures full traceability throughout the food chain from farm to table. The animal carries the same ear tags throughout its life, and the tag on the left ear contains a chip, allowing the farmer to access the information using a scanner.

In addition, in all markets, our pig and beef supply chains are subject to independent third-party audits, with unannounced audits far from unusual, on behalf of some welfare schemes and retail clients.

Group positions on key welfare issues can be summarised below: Close confinement: Pigs: Tethering is not permitted in any of our supply chains, and all sows are tether-free.

Across all of our supply chains, the permanent use of sow stalls is not permitted. Confinement is permitted for the first four weeks of pregnancy (gestation) in 71% of our global supply chain. Our Danish UK welfare programme does not permit confinement of sows other than during the farrowing process and represents approximately 35% of our Danish output, and in addition, sow stalls are not permitted in our Friland (organic), Antonius and Bornholmer supply chains (4% of Danish supply). In our Swedish supply chain that accounts for a further 6% of the group’s pigs, the movement of pigs must not be restricted except under a limited number of proscribed occasions such as when handling the animals for care or treatment.

To optimise the welfare of both sows and piglets, the use of farrowing crates is permitted across our pig supply chains. They are not used in our Danish Friland, Antonius and Bornholmer (4% of Danish supply chain) supply chains, and there are significant

Danish Crown Group Animal Welfare Policy

Farm welfare standards form a part of all livestock sourcing contracts, all of which will include participation in recognised and independentlyaudited third party accreditation schemes. Welfare standards extend beyond the farm to include transport and processing. Processes for dealing with any non-compliance are set out within these schemes.

Farmers participating in higher welfare programmes are further rewarded with sustainable pricing and premiums.

In each of our home markets we have Agriculture Supply Chains whose field staff engage directly with farmers to support and advise on a range of welfare and management issues.

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restrictions in the Danish 3 Hearts scheme that limit their use from up to four days for 1 Heart, 2 days for 2 Hearts, and are banned from 3 Hearts standard.

Denmark was the only country in the world to set a target for loose-housed sows in the farrowing unit, with a target of 10% by 2020, and although this target was not achieved, the elimination of farrowing crates by 2030 in our Danish supply chain is being actively considered, and we will set new targets before the end of 2020. Danish Crown continues to support and participate in research projects that will facilitate an effective transition to free-farrowing systems in years to come.

Cattle: Tethering is not permitted in any of our supply chains and all cattle are tether-free. As set out in EU legislation, individual crating and housing of calves in individual pens after eight weeks is not permitted in our supply chains.

Routine mutilations: Routine mutilations are not permitted across our supply chains for all species.

Pigs: Routine tail-docking and tooth-clipping or grinding are not permitted across our supply chains but can be carried out if advised by a veterinarian and included in the farm Veterinary Health Plan. Some of our Danish quality programmes such as the 3 Hearts scheme preclude tail docking and it is not permitted in our Swedish supply chain (6% of group).

This represents approximately 30% of our Danish supply and the procedure restricted to female cattle, while in Poland, it accounts for 10% of production.

This also reflects the position of our Swedish supply chain as regards de-horning. De-horning is not practiced in our German supply chain Castration: Pigs: Approximately 85% of the male pigs processed by the group come from systems that permit castration where advised by a veterinarian, but that does not mean that all are castrated. Danish Crown continues to invest in research to develop solutions that are accepted across all major international markets.

In our Danish and Swedish supply chains, it must be conducted within 7 days of birth and with local analgesia and anaesthetic, and for our UK Welfare pigs, it must be conducted in the first 3 days. In our German market, local analgesia is the current requirement and from January 2021 local anaesthetic will also be required in Germany. Our Polish supply chain adheres to current EU legislation.

Cattle: Castration is permitted in our Danish and Swedish supply chains where prescribed, and castration of young bulls must be carried out by a veterinarian or trained, qualified personnel and with local anaesthesia. In Denmark and Germany, this accounts for less than 5% of livestock, in Poland, it accounts for less than 0.01% of production.

For our German (cattle) and Polish (pigs and cattle) markets, the maximum permitted transport time of 12 hours is a function of the geography of the two countries and in both markets, where transport times are extended, additional welfare requirements must be met.

Cattle: Routine tail docking is not permitted across our supply chains. Where advised, the de-horning/ disbudding of dairy cattle must be carried out by a veterinarian and with the use of local anaesthesia.

Livestock Transport Cattle

Maximum permitted transport

% transport <8hrs

Denmark

8hrs

Sweden

8hrs

Germany Poland Total

Average transport time

Maximum permitted transport

% transport <8hrs

100

3hrs

8hrs

100

2hrs

100

6.5hrs

8hrs

100

5.5hrs

8hrs

100

<4hrs

12hrs

100

5hrs

12hrs

90

6hrs

12hrs

70

8

99

93

Average transport time

Danish Crown Group Animal Welfare Policy

Pigs

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Use of growth-promoting substances: The use of antibiotic growth promoters is not permitted within our farming systems across the group. It should be noted that their use has been banned in Sweden since 1986, in Denmark since 2000, and in the EU since 2006.

Antibiotic use: Danish Crown advocates the responsible use of livestock antibiotics and requires that its suppliers have a special focus on limiting the use of antibiotics to ensure both animal and human healthâ&#x20AC;&#x2122;. This requirement applies across all markets and species. This includes limiting the use of antibiotics that are critically important for human health, and in our Danish and Swedish supply chains, their use is either banned or permitted only under exceptional circumstances. Antibiotic use is monitored across all markets.

Denmark is among the lowest users of livestock antibiotics of all the major pig producing countries and its systems are held as an exemplar for others.

Our Danish pig supply chain has also developed an antibiotic-free supply chain, while our Polish operation, working with a key retail customer, has introduced a programme one element of which is the exclusion of antibiotics in the fattening phase.

Healthy animals do not need antibiotics, and Sweden also has a long tradition of preventative health work and a well-established antibiotics controls in place, is among the lowest users of livestock antibiotics, and as with Denmark, performance is publicly-reported each year (via the SWARM report from the SVA).

The prophylactic use of antibiotics is not permitted in all of our livestock supply chains (Denmark, Sweden, Germany and Poland).

Environmental enrichment: All (100%) of sows, gilts and pigs in all markets must have permanent access to a sufficient quantity of enrichment material to enable proper investigation and manipulation activities, such as straw, hay, wood, and sawdust and in Denmark, rooting materials must be of natural origin.

In our Danish and Swedish cattle supply chains that represent 54% of production, when animals are outside in pasture there is a requirement to provide shade (https://www.foedevarestyrelsen.dk/Leksikon/ Sider/Udegaaende-dyr.aspx) In our Danish dairy cattle supply chain (>30% of supply), when in barns, the animals must have access to brushes against which they can rub, and moving forward, consideration will be given to environmental enrichment provision for cattle across the group.

In our Swedish supply chain, all cattle must have access to pasture according to geographical location.

During the grazing season, cattle in milk-producing herds must come out and have access to the pasture for at least six hours in a row every day. The grazing season that applies and how many days the animals should be kept on grazing depends on which part of the country the animals are located Southern Sweden: Animals should be kept on pasture for at least 120 days during the period 1 April to 31 October, of which at least 60 days should fall during the period 1 May to 15 September.

Middle of Sweden: Animals should be kept on pasture for at least 90 days during the period 1 April to 31 October, of which at least 60 days should fall during the period 1 May to 15 September.

North Sweden: Animals should be kept on pasture for at least 60 days during the period May 1-October 1, of which at least 30 days should fall during the period 1 June to 31 August.

Humane slaughter/pre-slaughter stunning: All pigs across our business must receive appropriate pre-slaughter stunning prior to processing. All pigs across the group are currently stunned using CO2 and effectiveness of stun is monitored. The only variance from this is in Sweden where, for sow slaughter, one of our slaughterhouses uses electric stunning.

All cattle in our Danish, Swedish and German beef supply chains must receive appropriate pre-slaughter stunning prior to processing. This is delivered through approved captive bolt systems. In the Sokolow supply chain, and reflecting historic trading structures, a kosher supply chain represents a minority element of production, and all other cattle must receive preslaughter stunning

Danish Crown Group Animal Welfare Policy

Cloning and use of genetically modified animals: Producers across our pork and beef supply bases must ensure that no animals are subject to any genetic modification or cloning. We continue to review scientific developments which may benefit the health and welfare of livestock. If this identifies new techniques to benefit livestock health, this may be considered. However, we would never adopt new techniques without prior discussion with stakeholders.

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Proportion of animals pre-slaughter stunned Pigs %

Cattle %

Denmark

100

100

Sweden

100

100

Germany

100

100

Poland

100

73

Total Group

100

94

Effectiveness of Stun Pigs %

Cattle %

Denmark

100

100

Sweden

100

>99

Poland

100

100

Germany

100

>99

Danish Crown’s beef interests include operations in Denmark (including Holsted, Europe’s most modern slaughterhouse), Germany, Sweden and Poland. More information, including output, videos and inspection reports can be found here. Its Danish business is founded on four core schemes – Friland (organic), Dansk Gastro Kalv, Danish Dairy Cattle, and Danish Beef Cattle – each of which includes a range of welfare requirements.

• The calves can move freely

Danish cattle have a high health standard, and the meat quality is the very best. Danish veterinary inspections and legislation are among the strictest in the world, and they cover the entire process from the rearing of the animals on the farms to the inspection of every single animal at the slaughterhouses. The official veterinarians at our slaughterhouses in all markets are employed by the Government and are thus independent of the slaughterhouses.

• Danish beef cattle are not milked

The Danish Beef Cattle programme accounts for approximately 7% of our Danish production, requires meat to originate from Danish beef cattle and for farmers to sign a contract that commits to meeting proscribed standards of care, including: • Reared and cared for by dedicated Danish farmers • The cattle must go out on the grass in the summer

• Healthy and natural food without unnatural additives and always with free access to water • There are no stressors around the meat cattle

• The animals are transported directly to the slaughterhouse.

In all markets, we work closely with customers to develop tailor-made welfare programmes, a recent example of which is in our Polish market – in May 2020, our Polish supply chain implemented a programme to deliver pig meat to a leading retailer that required non-GMO feed, no antibiotic use in the fattening phase, increased space requirements, and waste and slurry management elements. Initial scale is small, but growth is forecast.

Danish crown participates in 17 deferent schemes where animal elements are included, adapted to each market and the specific animal welfare rules in the country. A good example of this is the Dansk Gastro Kalv scheme. To give further impetus, and working with a leading Danish retailer, the scheme was relaunched in 2020 and results were positive, although the product from the programme can be accessed by the wider market.

Danish Crown Group Animal Welfare Policy

Under the Danish 3 Hearts scheme, the slaughter of bobby calves is not permitted and from 2022, this will apply to all Danish cattle supply chains

• During the winter, cattle are always free to move around in stables or outside

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Danish Crown Group Animal Welfare Policy

Reporting on Performance

As well as performance measurement, targets are also an important tool in welfare development, and Danish Crown plans to introduce a range of targets across the group before the end of 2020 These measures, whether on farm, transport or slaughterhouse can include requirements from EU and national legislation, sector quality assurance programmes, client specification standards and company programmes, and many are independently audited.

As reported in its CSR Report 2019/20, Danish Crown has set out priorities for animal welfare for the next five years. Planned initiatives include: • I ntroduce a certification programme for Danish cooperative members › A communications programme was developed to inform farmers of plans and requirements.

This included briefings at regional and national member meetings, and via field personnel › A target of 90% to be certified by the end of 2019 › The target was achieved. › Within this, 100% of farmers delivering into the Danish UK Welfare programme are now within the Danish Crown ‘Climate Track’ programme (see information box)

• Grow the number of pigs raised without antibiotics › It is only two and a half years since Danish Crown started its first trial with pigs bred without antibiotics, and growth has been encouraging. The target is for 1.5 million pigs to be bred within the scheme by 2021 • S tart use of local anaesthetic for piglets prior to castration (Denmark) › Training was required for all farms, to be completed by January 2019. Compliance was verified via independent audits • D evelop new training programme in animal welfare at all abattoirs › An Animal Welfare training course was developed that all workers in the lairage must attend every 3 years and to date more than 300 workers have participated. An update to the course will be completed before the end of 2020, for implementation in 2021. Currently the course is focused on our Danish pig interests and consideration is being given to extending this as part of Best Practice proposals being developed.

• New animal welfare targets will be defined before the end of 2020 In our Danish pig supply chain for example, a range of welfare metrics from slips at unloading, lameness and effectiveness of stun, to piglet mortality and antibiotic usage are measured every day.

Sample Welfare Outcome measures: Danish Crown UK Welfare pigs 2018/2019/H1 2020 Plant

Falls at unloading %

Lameness %

Killed at reception %

Overnight lairage %

Effectiveness of stun %

1

0.0/0.0/0.01

0.02/0.07/0.04

0.10/0.10/0.09

0.0/0.0/0.0

0.0/0.0/0.0

2

0.04/0.02/0.14

0.07/0.05/0.02

0.01/0.02/0.02

0.0/0.0/0.0

0.0/0.0/0.0

3

0.02/0.01/0.0

0.02/0.01/0.02

0.09/0.11/0.12

0.01/0.29/0.17

0.0/0.0/0.0

4

0.01/0.03/0.01

0.010.05/0.09

0.06/0.06/0.05

0.01/0/0.0

0.0/0.0/0.0

Danish Crown Group Animal Welfare Policy

While there may be differences in scope and detail between our various markets, across all of our supply chains, a range of health and welfare indicators are measured at each link in the chain. In addition to supporting our aim to seek continuous improvement in animal health and welfare, performance measurement is also a prerequisite to delivering business sustainability through the supply chains in which we operate.

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Our Danish supply chain accounts for more than 68% of group output. Although Danish animal welfare legislation is linked to EU law, in many areas, we exceed these requirements. We have a threestage audit process which involves; a self-audit by highly trained employees at both the farms and the slaughterhouses, thorough veterinary inspection at all stages, and a significant number of third-party official ‘unannounced’ visits from government authorities and customers to audit compliance with welfare legislation. Examples include:

• T ogether, veterinarians and producers must establish up to three focus areas for animal welfare for a single herd, where specific objectives and action plans must be established.

• D enmark does not permit iron chains to be used as enrichment material • T here must be sprinkling systems in all units for pigs above 20kg

Antibiotic Controls in Denmark Denmark is among the lowest users of livestock antibiotics of all the major pig producing countries and its systems are held as an exemplar for others, the most recent example of which is a Food & Agriculture Organisation report published earlier this year (attached).

Unlike many other countries, Denmark separated veterinary advice from sales of medicines back in 1994 and introduced the VETSTAT system in 2000 that records all sales of livestock antibiotics. With this as a foundation. Denmark introduced the Yellow Card scheme in 2010 that set levels of consumption, above which penalties and other requirements would be applied. Such is the continued drive to lower usage, this level has been lowered four times since its introduction.

Detail and data can be accessed via SEGES Danish Pig Research Centre that publishes the consumption of antibiotics in Danish pig production on an ongoing basis, and the annual DANMAP report

• D enmark is the only country in the world to set a target for loose-housed sows in the farrowing unit

Danish Pig Antibiotic Usage per Finisher Grammes

Kilo-doses

2015

3.08

290

2016

2.95

283

2017

2.85

274

2018

2.74

259

2019

2.78*

261

Source: SEGES, DANMAP *Lag in recording of livestock numbers against real time reporting of antibiotic usage accounts for slight increase

Kg antibiotics

Kg biomass (PCU)

Mg/kg biomass

12379

387000

32

Source: DANMAP

Danish Crown Group Animal Welfare Policy

Total Danish cattle antibiotic usage 2017

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Investing to improve

New certification of sustainable pig production on the way The aim of the programme is to work with farmers to raise the standards of conventional and organic production in Denmark, Sweden, Poland and Germany so that all pigs supplied to Danish Crown meet a number of sustainability parameters.

Initially, the programme covers all pigs supplied by Danish cooperative members and all calf suppliers in Denmark. At the same time, the certification is intended to help increase the transparency around farming. We have therefore held stakeholder workshops with researchers, farmers, NGOs, customers, chefs and sustainability specialists to listen to their wishes and recommendations on how a sustainable pig should be reared.

In order to be certified, the farmer must work in a targeted and systematic manner to ensure continuous improvements. Targets and initiatives must be defined for all the key sustainability parameters such as environmental and climate impact, working conditions, animal welfare and business ethics.

Examples of parameters include feed content, medicine use, mortality of sows, piglets and slaughter pigs, and vocational training schemes for employees.

In addition, the farmer must continuously monitor and report on performance and progress to Danish Crown and will be audited every three years by an independent third party, although internal audits will be carried out more frequently. The programme is a basic element for farmers. The first target was for 90 per cent of Danish cooperative members and suppliers of pigs to Danish Crown to be certified by the end of 2019, and by the end of 2020, it is anticipated that almost all Danish farms will be certified. The target is that all producers in Denmark, Sweden, Poland and Germany will be in this programme by the end of 2023

New transportation agreement for cattle improves animal welfare and reduces infection risk In April 2018, we entered into a new agreement for the transportation of cattle to Danish Crown Beef’s abattoirs in Denmark. The new agreement introduces the concept of ‘readiness for collection’ and means that the farmer must segregate the animals to be collected from the herd so that they are ready when the haulier arrives.

Preventing contact between the transport vehicle and its driver and the cow shed reduces the risk of spreading infection via, for example, the transport vehicle’s tyres, or the driver’s rubber boots. Quick loading of the animals onto the transport vehicle is also gentler and less stressful for them. This is good for both animal welfare and meat quality.

To date, it is primarily the large farms that have signed up for the scheme, which covers about 20 per cent of the animals supplied. The aim is for all cattle suppliers to Danish Crown Beef in Denmark to join within a number of years.

Farrowing Crates Farrowing crates are widely used as the most viable system to optimise the welfare of both the sow and piglets. However, Danish Crown has been a key partner in the consideration of alternative systems.

Together with SEGES and Danish academics, Danish Crown has been a participant in research into the performance of ten different free farrowing systems.

This will provide important information to Danish farmers as they consider adopting these systems.

Wider Danish research in this area has also involved dialogue with organisations including the RSPCA and CIWF. Danish Crown was also a key partner in the development and launch of the Danish 3 Hearts scheme (Bedre Dyrevelfærd) that sets out a range of enhanced welfare requirements. The base level (1 Heart) permits the confinement of the sow for up to 4 days post-farrowing, for 2 Hearts confinement is up to 2 days, and for 3 Hearts no confinement is permitted.

Danish Crown Group Animal Welfare Policy

Danish Crown seeks to support and deliver continuous improvement across its supply chains and invests in research in many areas to better advise and to drive performance. In partnership with industry organisations and universities, recent examples include an investigation of ten freedom farrowing systems to analyse performance, and the development and introduction of the Danish government 3 Hearts welfare scheme.

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Animal Welfare Network Group In May 2019, Danish Crown formed an Abattoir Animal Welfare Network Group that meets periodically to share information and knowledge. The stated aims of this group are to share best practice and to deliver certification of animal welfare at all slaughterhouses across the group.

Danish Crown Group Animal Welfare Policy

The scheme is in its early days but consumer response in Denmark has been encouraging.

Piglet mortality has been identified as a challenge for the Danish supply chain. At the same time, societal demand to further restrict sow confinement is growing. It is recognised that one of the challenges when transitioning from farrowing crates is an increase in piglet mortality, and Danish Crown is active in a number of projects to mitigate the impacts.

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Useful links Danish Crown CSR Report 2018/19

QS (Germany)

Danish Crown CSR Report 2017/18

Friland (Denmark)

Danish Crown CSR Report 2016/17

Dansk Kalv Koncept

Danish Product Standard (Denmark)

KLS-Ugglarps (Sweden)

Danish UK Contract (Denmark)

Danish Beef Cattle

Danish Transport Standard

SVA National Veterinary Institute

Danish Crown Group Animal Welfare Policy

Bedre DyrevelfĂŚrd

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