© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® Trademarks of Kemin Industries, Inc., U.S.A. 1 Feed Safety: Where is our.

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Feed Safety: Feed Safety:

Where is our industry headed?Where is our industry headed?

Kristi KrafkaKristi Krafka

Vice President, Regulatory Affairs, Quality Assurance and Quality ControlVice President, Regulatory Affairs, Quality Assurance and Quality Control

Kemin AgriFoods North AmericaKemin AgriFoods North America

Des Moines, Iowa USADes Moines, Iowa USA

February 8, 2010 February 8, 2010

Northeast Ag and Feed Alliance Annual MeetingNortheast Ag and Feed Alliance Annual Meeting

Albany, New YorkAlbany, New York

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Kemin Industries, Inc.

04/10/23 © Kemin Industries, Inc. and its group of companies 2009 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A. 2

• Privately held company founded in 1961 by R.W. and Mary Nelson

• 14 manufacturing plants located in 9 countries

• Over 1,000 employees worldwide

• Annual revenue exceeds $350 million

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

KEMIN

Kemin Business

04/10/23 © Kemin Industries, Inc. and its group of companies 2009 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A. 3

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Kemin AgriFoods Companies

Europe

Singapore

India

Des Moines, Iowa

Herentals, Belgium

Chennai, India

Singapore

Mexico

South America

North North AmericaAmerica

Zhuhai, China

ChinaChina

Indaiatuba, Brazil

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Laying the Foundation for Feed Safety

• The goal is a safe and wholesome food supply.

• How do we get there?

• The old days…GMP’s– Prevent contamination – Prevent adulteration– Increase product safety

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

FDAAA (2007)

• Reportable Food Registry (09.08.09)

• Processing• Ingredients• Labeling

• Ready in 2010?

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Our industry is changing…

• Feed is food

• Safety is paramount

• Everyone is watching

• Consumer awareness – instant information

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Feed is highly regulated in the USA

• Local – Air quality, water, soil

• State Departments of Agriculture & Food – Registrations & Inspections

• FDA – Bioterrorism Registration & Compliance

• FDA – Routine Inspections & Compliance

• FDA – Reportable Food Registry

• Environmental Protection Agency - pesticides, etc.

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Feed is highly regulated in the USA, continued

• OSHA – keeping employees safe

• DOT – highway transportation

• USDA – import permits

• New administration creating change, so surveillance and inspections will be on the rise!

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Quality is a Growing Business

• ISO 9001:2008

• American Feed Industry Association (AFIA) Safe Food/Safe Feed

• FAMI-QS, European feed safety system

• Facility Certification Institute (FCI) Hazard Analysis Critical Control Points (HACCP)

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Evaluating data and managing the business at Kemin

• Batch rejections• Corrective and preventative actions• Customer complaints• Internal audits• Training at all levels in the organization• Computerization• On-time shipments• Costs

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Suppliers

• Supplier relationships have become more important– Ingredients, Packaging, Country of Origin?– Distributors?

• On-site audits

• Questionnaires

• HACCP

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Customers

• The melamine crisis of 2007 changed everything.

• The PCA problems in 2009 changed how customers look at third party audits.

• Customers often want to get their own data.

• In the end…it’s about managing the risks.

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

A Balancing Act…

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

Outlook

• Keep track of what’s going on…AFIA, news services, government, etc.

• Expect more regulation…inspections, fees and documentation

• Consumer expectations are growing

• How much will this cost?

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© Kemin Industries, Inc. and its group of companies 2010 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A.

What can we do to effectively manage feed safety?

• Understand your core business.

• Evaluate the risks.

• Move forward with the facts and manage the costs versus the risks.

© Kemin Industries, Inc. and its group of companies 2009 All rights reserved. ® ™ Trademarks of Kemin Industries, Inc., U.S.A..

™ Trademarks ® Registered by Kemin Industries, Inc., USA © 2009 Kemin Industries, Inc., USA

Questions?