Sturgeon Valley Pork

1. Sturgeon Valley Pork ALMA Presentation

2. Sturgeon Valley Pork Background • 2 family farms purchased abattoir Ouellette Packers in 2000 • 2003 constructed new federally inspected plant 215 and could now market outside of Alberta boarders the world was now the market • 2010 producer/shareholder group grew to 21 and a doubling of operations

3. Major Events And Challenges • 2003 BSE flood of protein on the market and higher operational cost as well as regulatory changes • Large integrators such as Smithfield were changing the industry quickly, only one profit center was needed • Pork producers were running negative margins for 4 years and the global demand for pork was sluggish • H1N1 was called “Swine Flu” by media had damaging effects to the pork industry slowing global demand and halted the price recovery

4. The Concept & Goals • To create a value chain allowing pork producers to make the transformation from raising pigs to marketing meat with distinct claims and qualities • SVP group are all small to mid size family farms that have a passion for raising pigs in a sustainable manner caring for the animals, land and environment • To match pork production with processing capacity to maximize efficiency and have guaranteed shackle space • Produce high quality pork from farm through processing and market the story with identifiable branding • Great story sounds simply right? The reality is this is a huge undertaking and success hinges on good planning, management, marketing and commitment by all

5. The Business Plan • This is were it all starts, you need to gather up all the ideas batted around and pull them together evaluate the strengths and weakness and do your homework • This is outside our scope of work and this is were ALMA has been very beneficial both with the finical cost as well as resources to assist companies like ours in developing solid business plans • I believe one of the most important decisions early on is which consultant or company one hires to work on the plan • They need to have a good working knowledge of the industry or resources available, this document is used for finance and is the road map to keep on course • The plan was also important in clearly explaining the model so potential new shareholders understood the model

6. The Facility • Meat processing is much like most manufacturing processes and is very competitive and lean manufacturing principles are required • This is often achieved though adopting new technologies and processes • ALMA has several tools and programs that help from evaluating processes, engineering cost, equipment, training ect… which are very helpful in implementing and helping Alberta plants become even more efficient • One example is our DNA TraceBack which SVP has implemented and is the first pork plant in Canada to use this technology, it is a solid science and we now can offer full traceability to our customers

7. SVP Guarantee

8. Marketing & Branding • Brand and brand awareness are key to developing market share and carving out your niche in the market place and maintaining your market share • Building the brand encompasses everything from logo design, the story, web site development, in store promotions, tasting events and the list goes on, the reality is this takes a lot of time and resources • Here in Alberta we are very fortunate to have a organization such as ALMA with a goal to facilitate companies such as SVP to seek out new market opportunities provide much needed resources in marketing and branding efforts • The support comes in many forms from making it affordable for companies to attend food shows or industry events to matching dollars in marketing and brand development • The benefit to SVP has been many, new contacts and business relations, a increased group to net work

9. Brand Logo’s

11. Value Added • SVP has work with a local pet food company adding value to pork organ meat in a fast growing market, this product is exported around the world • SVP also has been working on value adding primals that have slow seasons or have no margin to help support total cut out • This will be new for SVP and will align with market and branding work done to date

12. Steep Learning Curve • The meat business is challenging at the best of times and 2009-10 has been a very transitional year for SVP • Now 20+ shareholders a new energy and dynamic’s • Building addition to double capacity and improve efficiencies • New management team • New markets being developed domestic and export • Branding and programming for both retail and food service • Plant operations on Yield Improvement and Product Improvement • TraceBack implemented • Pet food project • ALMA has been very important in SVP moving along on the above changes. There is no doubt that there role as a catalyst have helped SVP accelerate the changes and the staff have been a pleasure to work with and many from staff or board of directors are visionary and are a great sounding board

13. SVP Contribution to the Pork Industry • 75 full time jobs • Dollars stay in the Alberta economy and rural Alberta • 21 family farms have moved up one more level in the value chain and taking charge of there destiny • Customers and consumers now have another choice for local fresh pork products • A greener sustainable model with lower environmental foot print • Company driven by meat quality and processes that help that make it to you table

14. Conclusion • SVP goal is that you will be able to purchase fresh and further processed branded product across Western Canada and consumers ask for it by name • That the farmers and shareholders will be able to continue raising there livestock in a sustainable way and feel the pride when they can identify there own branded product • We are a local Alberta company providing safe and local product mainly to western Canadian retailers and food service industry. The success of us getting this far has its beginning in what ALMA and all of its staff have contributed

15. Questions