Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...

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Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef

The Marfrig Beef Animal Welfare Program program seeks to ensure
the safety and humane management of animals and is part of the
company's business strategy. Get to know!
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef

1   Marfrig Beef Animal Welfare Program

2   Animal Welfare Area and Committee

3   Staff training

4   Humane management

5   Structure and equipment in the units

6   Animal Welfare in rural properties

7   Transport of animals

8   Actions with employees and the community

9   Acknowledgment
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef
        Marfrig Beef Animal Welfare Program

        The Marfrig Beef Animal Welfare Program, prepared in accordance with legal standards and customer requirements,
seeks to ensure the safety and humane management through internal, constantly audited rules and procedures.The project
was designed in partnership with suppliers and employees, always prioritizing top quality of products.
        The Company developed the Welfare Animal Policy and considers it as an essential and strategic part of its business
and has been intensifying the work in this area for over a decade. Based on care of animals throughout the process, it is
possible to provide the best food to consumers worldwide. In order to do that, units invest in new technologies and
equipment, as well as modern structures and awareness of employees, through regular training.
        Marfrig Beef seeks to comply, as applicable, with the five inherent freedoms of animals as defined by the Brambell
Committee and improved by the United Kingdom Farm Animal Welfare Council, currently the Farm Animal Welfare
Committee (FAWC).
        Ÿ    Physiological Freedom: absence of hunger and thirst;
        Ÿ    Environmental Freedom: facilities adapted for higher comfort;
        Ÿ    Health Freedom: absence of pain, disease and injury;
        Ÿ    Behavioral Freedom: allowance to express normal behaviors;
        Ÿ    Psychological Freedom: absence of fear and distress*.
         Among the initiatives for continuous improvement in animal welfare processes, Marfrig Beef works with some
universities and research entities, and maintains contact with the World Animal Protection (WAP), one of the largest non-
governmental global organizations. Most part of the educational material that evidences good management practices,
distributed by WAP, was recorded and pictured at the Company's premises.

        Animal Welfare Area and Committee

         In 2006, Marfrig Beef developed a specific Animal Welfare area, comprising technicians (zootechnicians and
veterinarians) and duly qualified employees. The team is responsible for developing strategies, implementing management
and structure improvements to offer appropriate treatment to animals, in compliance with requirements provided in
national and international laws, customer protocols and voluntary activities of the Company. They also offer trainings and
workshops on this topic and monitor the activities in industries and farms.
         The international operation of the Beef division follows the same procedures of animal welfare applied in Brazil.The
Global Animal Welfare Committee is comprised of representatives of Marfrig and focuses on sharing updates on related
topics, such as new legislation and trends, for instance. Each operation has a representative, all the time seeking continuous
improvement according to related operation segments and their particularities.
         The Committee operates in all units with management and supervision teams, as well as with the corporate area
(coordination and leadership) and holds weekly meetings in order to share concepts, update indexes, deal with internal
issues and prepare joint actions.The purpose is to share experiences and promote engagement towards goals defined based
on the results of the previous year.
         The Company discloses some indexes and evolution of the area once a year in the sustainability reports and on its
website as well, all the time maintaining transparency of data, which is one of its main values.

        Staff training

        Animal Welfare is addressed from the integration program for new employees joining the Company, when
representatives of the area promote general awareness and emphasize relevance and ethical commitment, established
through internal rules, for both carriers and employees.
        All the people involved in management of animals receive technical training and are qualified, committed and able to
ensure suitable procedures are followed. Trainings are offered on a regular basis, focusing on innovation, dynamism and
awareness for general benefit: of animals, managers, producers, transporters, industry and consumers.

* Distress: negative, intense stress to which the animal cannot adapt and cause suffering to the animal.
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef
          Humane management

         Pre-slaughter and slaughter management is a determining factor within the Humanitarian Slaughter Program. In this
sense, Marfrig Beef provides and maintains all conditions established in the program, seeking to improve management and
minimize stress.
                                                                                All animals intended for slaughter should be duly
                                                                          supported by a reference document (Letter of
                                                                          Guarantee) which evidences non-use of cloned
                                                                          animals and also substances considered as growth
                                                                          promoters. Marfrig Beef does not promote use of
                                                                          antibiotics unless prescribed by a veterinarian
                                                                          responsible for the property. Drugs as Quinolones, 3rd
                                                                          and 4th generation Cephalosporins, Ractopamine and
                                                                          hormones should never be used. It also suggests that,
                                                                          whenever required, they should be prescribed by an
                                                                          accredited professional and in compliance with the
                                                                          withdrawal period. The Company suggests that all
                                                                          information on the application of controlled drugs is
                                                                          recorded, at least per batch or, if applicable, individually.
                                                                                Livestock producers sign a commitment
                                                                          evidencing nonuse of banned products and proper
                                                                          treatment of animals. In addition, there is the National
                                                                          Meat Residue Control Plan (PNCRC, in Portuguese),
                                                                          which provides for random sampling in all
                                                                          slaughterhouses and confirmation of data provided by
                                                                          cattle ranchers. Surgical procedures as castration,
                                                                          dehorning, births and cesareans, if applicable, must be
                                                                          performed by a qualified technician, and pre- and post-
                                                                          surgical care should be strictly followed.
                                                                                Check the letter on Chemical Control and
                                                                          Antibiotic Residue Program (PNRB) of Uruguay.
                                                                          (http://www.marfrigbeef.com/Uploads/Arquivos/Man
                                                                          ual/Chemical_Control_and_Antibiotic_Residue_Pro
                                                                          gram.pdf)
                                                                          In order to allow replacement of aversive techniques
with less aversive ones, by replacing electric prods with flags, for example, Marfrig provides drivers, whenever necessary and
along the training of employees responsible for handling in stockyards, as well as during field visits for property management
teams.
         Marfrig's Animal Welfare area conducts regular monitoring in the industry, always following AMI standards, customer
protocols and current legislations. Different indicators are considered, such as number of falls, slips, vocalization, use of the
electric prod, efficacy of stunning, deaths, injured animals in general, data on bruising grading, transportation, among others.
         According to internal audits, in 2017 the average indexes verified in Brazil were in conformity with the parameters
considered acceptable by the institute, as shown in the table below.

Table 1: Index of animal welfare

Animal Welfare Parameters                         Marfrig Beef Brazil               Marfrig Beef Uruguay

Stunning performance on first shot                 Over 98%                          Over 98%
Conscious animals in the gutter                   None - 0%                         0%
Falls                                             Below 1%                          Below 1%
Slips                                             Below 2%                          Below 2%
Use of electric baton                             Below 15%                         Below 12%
Vocalization                                      Below 1%                          Below 2%
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef
         50 animals are sampled from those daily monitored in each production unit of Marfrig Beef Brasil, regardless of the
number of slaughtered animals. In some specific cases, such as the units in Uruguay and Argentina, this sampling is based on
the number of slaughtered animals and may be lower.At Marfrig Brasil, for the internal audit containing data presented on the
table above, the sampling is conducted on 100 animals. All other criteria are strictly assessed, and any deviations found are
treated according to the established criteria.
         Performance records are daily maintained and monthly expressed in order to monitor measures and their
evolution. There are also second- and third-party audits that take place at the units, with results reported directly to
customers. The company maintains all licenses for the most demanding customers in animal welfare and pursues animal
welfare certification for 100% of its operating units.
         Marfrig Beef is strictly against routine mutilations that could take place in the field and adopts control measures at
the plant as a guarantee to prevent this type of action.All suppliers are assessed and qualified according to quality of the farm
within the plant.

        Structure and equipment in the units

        Marfrig seeks information in the literature and supports scientific work to develop better ways to treat animals and
prevent stress.As a result, practically all stockyards were built “fishbone-shaped” within units over the last decade, based on
the concepts of Dr.Temple Grandin, reference in Animal Welfare, upon confirmation that theories are applicable to reality.
Races were also fitted into curves with circular crowding pens, all with closed sides to prevent animals from getting
distracted.

                                                  Corridors with closed sides
        By understanding that even the most climate-resistant animals in Brazil have a need for thermal comfort, facilities are
provided with sprinklers to cool the animals housed in the yards without disturbing them. Many units have also installed
shading systems with specific canvas for air circulation.They are properly positioned to avoid behavioral problems that could
lead them to stress.

                                                Shading system in housing pens
         Accommodations aim to follow established laws and regulations.The accommodation is made in suitable facilities,
with slip-proof flooring, stockyards sanitized at each batch exchange, use of recommended densities, providing the right to
lie down, get up, walk, access to food (when the waiting time exceeds the number of hours required by legislations) and fresh
water in abundance, all the time the animals remain in the yards, among other requirements.
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef
                                                                              The facilities are provided with state-of-the-art
                                                                        containment and pre-stunning machinery, which are
                                                                        properly maintained and, along with recommended
                                                                        parameters and trained staff, supporting the efficacy
                                                                        of stunning in 100% of animals, ensuring prolonged
                                                                        unconsciousness and preventing any unnecessary
                                                                        suffering.
                                                                              In addition to pneumatic equipment, specific,
                                                                        portable equipment is available for emergency use, so
                                                                        that all animals are stunned as quickly as possible
                                                                        before any painful procedure. Requirements for
                                                                        religious slaughter are maintained and observed
                                                                        according to customer requirements, considering all
                                                                        humanitarian practices. The total number of animals
                                                                        slaughtered according to the Kosher Method
                                                                        accounts for a percentage below 0.070, based on the
                                                                        number of animals slaughtered in 2017, in Marfrig
                                                                        Beef units in Brazil, Uruguay and Argentina.
                 Monitoring during stunning of animals
                                                                              In Uruguay, the amount of slaughtered
(uncastrated) animals accounted for 47,1% of the grand total of slaughtered animals, of which, 88.3% did not come from
confinement.
        Marfrig also encourages the development of joint projects with equipment manufacturers to facilitate operation and
provide better welfare to animals and employees.An example was the development of Move Boi, an exclusive equipment for
cattle management designed within one of the units that runs along the corridor signaling the animals to walk, which
prevents touching them with the electric prod at the entrance of the slaughter house. Another recent investment was the
renewal of the floors in the yards area, after spotting some issues during handling.

                                                       Non-slip floors
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef
        Animal Welfare in rural properties

                 In Brazil, the climate allows for the
breeding of animals in open air, without the need to
keep the animals within facilities, such as enclosed
sheds. For intensive confinement systems during the
finishing of animals in properties, a 10 m² area is
recommended per animal, considering the favorable
space according to the non-overcrowding standard.
                 The fattening program is previously
planned according to the storage capacity, considering
the individual space and infrastructure for the
development of animals, such as water and high-quality
feed ensured equally for all animals throughout the
period, and shelters with easily accessible shades, in dry
and favorable conditions.
                 Facilities should be provided with
systems that ensure the supply of water in fountains and
high-quality food, in the event of a mechanical or electrical failure. It is recommended that the unit provides enough space for
all accommodated animals, in accordance with the plan, and that all records are maintained.

                                                  Guidance during farm visits
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef
                                                            In Uruguay, the Viva Grass Fed Beef program stands out, carried
                                                       out together with cattle suppliers to obtain a unique product, in
                                                       which livestock are exclusively pasture-fed and, meeting the demand
                                                       of the North American market, without the use of antibiotics, growth
                                                       hormones and feed of animal origin. Upon the approval from the US
                                                       Department of Agriculture (USDA), the products are marketed in
                                                       large American retailers.
                                                            Among other activities, the personnel responsible for Marfrig
                                                       Beef Brasil Animal Welfare department conducts technical visits in
                                                       the properties of suppliers, monitoring the management of
                                                       shipments, evaluating all criteria in the document filled in during visits.
                                                       Within the possibilities and whenever requested, lectures and
                                                       training are offered to ranchers and their teams.Whenever visits are
                                                       allowed in the properties, technicians shall provide all necessary
                                                       guidance on the subject.
                                                            One of the criteria for auditing properties in a given month is the
                                                       index of bruising found in carcasses, classified during the slaughter.
                                                       The system was developed based on the “Aus Meat” method and
                                                       adapted to some areas. Information on these results is also included
                                                       in reports to producers.
                                                            By means of the Marfrig Club program, the Company checks
                                                       every item and promotes awareness visits in farms. During technical
                                                       visits, the team uses specific questionnaires to maintain control of
                                                       evolutions and points that require improvement.

                                      Delivery of informative material during farm visits
         Marfrig Beef also prepares complementary material, such as the manuals, which are handed out during visits and are
available on the website and at the production unit. Other recommended practices and guidelines are available in the Marfrig
Club Guide for Sustainable Practices.The purpose is raising awareness, interacting and expanding the topic even more.
         In 2004, Resolution 447 was established in Uruguay, prohibiting the use of anabolic products in animals intended for
production of food for human consumption.
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef
Animal Welfare - Marfrig Beef - The Marfrig Beef Animal Welfare Program program seeks to ensure the safety and humane management of animals and is ...
Animal Welfare – Marfrig Beef
        Transport of animals

         Marfrig Beef has a logistics system that coordinates the segment, duly supported by the Livestock Acquisition sector.
It is on Marfrig's best interests that stopovers are implemented when directing animals to the nearest units, so as to avoid
long distances and prolonged periods, seeking, whenever possible, the shortest travel time. Marfrig recommends that animals
are transported at 40 km/h. Based on that average, 80% of the trips meet the 8-hour travel time recommended by some
customers.
         The supervisor checks all information regarding the boarding bulletin on a daily basis, such as schedules,
management, behavior, physical conditions, density, among other requirements.Type of vehicle, structure quality and state of
preservation, adequate density, driver qualification, animal care and comfort are also considered. In order to assess density,
for example, table 1 is applied, indicating the optimum spacing for each animal, in linear meter, depending on the approximate
live weight.

                                Table 2: Recommended spacing for animals in transport vehicles
                                 Approximate live weight (Kg)                Linear spacing
                                      350                                     0.41
                                      400                                     0.44
                                      450                                     0.47
                                      500                                     0.51
                                      550                                     0.54
                                      600                                     0.57
                                      650                                     0.60
                                      700                                     0.63
                                      750                                     0.65
                                      800                                     0.68
                                Adapted from the formula, ML = 0.01xPV0.63, where ML is the linear meter of cage and PV is the
                                approximate live weight of the animals.

         In Uruguay, Marfrig has a standard for purchasing livestock which provides that transport between the farm and
units must not exceed 8 hours. This procedure is recorded at all times and may be effectively checked online, in our
management systems.
         Livestock drivers are instructed to consider the welfare of
animals throughout the process. Regular trainings are carried out and
validated through efficacy assessment, with the issuance of a certificate
and a transportation authorization card.
         Marfrig also develops internal campaigns and projects, to
promote engagement from everyone. Carriers are invited to meet the
units and learn about the processes. That way, they obtain insights and
awareness of the importance of taking good care of animals.
         There is also a specific clause for animal care in agreements with
carriers. In case of an intentional measure of non-compliance with proper
care, the Company may take actions deemed appropriate and, depending
on the fault, may terminate the agreement for non-compliance with the policy, on both occasions.
Animal Welfare – Marfrig Beef

        Actions with employees and the community
         All production units promote regular awareness
campaigns and especially on the World Animal Day, celebrated on
October 4th. The initiative was suggested by an Animal Welfare
supervisor in 2012, in a single unit, which gained increasing
adherence until it became a common practice in all units.Activities
involve employees from different sectors, children and adolescents
from Instituto Marfrig Fazer e Ser Feliz, drivers or live cargo and
young apprentices. In 2017, 3,219 people took part in internal and
external actions in animal welfare in Brazil.
         Currently, 100% of the personnel in charge of handling and
managing animals, from transport to slaughter, receive training.
         People in charge of carriers had access to the Contingency
and Crisis Management Plan promoted by the company.

          After the Transport Workshop, which brought together
coordinators of carriers from different states in Brazil to discuss
issues of animal welfare and crisis management, improvements have
been achieved in order to facilitate communication in case of crises
during animal transportation (Contingency and Crisis Management
Plan). Considering accommodation and safety of animals during
transport, Marfrig seeks to maintain all drivers trained and vehicles
frequently inspected. In 2017, nearly 3 thousand vehicles were
assessed in total, which contributes for fleet quality, therefore
preventing injuries and improving accommodation conditions for
animals.
          Our actions also include consumers. During customer
visits, the topic is addressed in loco, and during the trade shows of
the sector in which Marfrig Beef participates. Informative materials are distributed explaining the entire productive chain
and origin of the meat. It is a means for educating the public, maintaining consumers informed about the Company's
procedures.
          Currently, all registered customers complete a document on Animal Welfare.
Animal Welfare – Marfrig Beef

        Acknowledgment
        As a result of all efforts and attention with Animal Welfare in every unit, the Company is approved in audits based on
the AMI Protocol, as well as in protocols of customers demanding animal welfare, carried out by third parties. In addition,
Marfrig Beef is included in the Ranking of Companies that publish information on animal welfare in the BBFAW Report.
        In May 2014, the coordinator of the Animal Welfare department of Marfrig Beef Brasil was recognized as a
professional who makes a difference in Brazilian livestock, winning the Beef Point Animal Welfare Award, granted by Beef
Point.
        In 2017, an important recognition came from Fleming's Prime Steakhouse, who achieved first place in the ranking of
the best restaurants by TripAdvisor. Fleming's is an exclusive customer of Marfrig and recognized that the company's
products were part of this achievement, referring to the quality in animals care.
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