Post on 21-Feb-2017
Evolution and Change – Preparing for Tomorrow
2015 Allen D. Leman Swine Conference
September 22, 2015
One of the largest integrated pork producers in the United States
Presence across nine states (Minnesota, Iowa, Illinois, Nebraska, Colorado, South Dakota, Missouri, Utah, and Montana )
Employs approximately 1,200 people and holds over 1,500 contract relationships (live production)
Manages 175,000 sows on 54 sow farms (company-owned) and over 450 nurseries and grow finish sites (both company-owned and contracted)
Operates 5 company-owned feed mills located in Minnesota, Iowa, Nebraska, and South Dakota
Markets approximately 4 million hogs per year through Triumph Foods and other key packer/partner relationships
The largest stakeholder of Triumph Foods located in St. Joseph, Missouri
Through Triumph Foods, Triumph members own 50 percent of Daily’s Premium Meats
Triumph Foods and Seaboard Foods partners to launch new harvesting plant in Sioux City, Iowa
About Christensen Farms
3Respect ⦁ Integrity ⦁ Excellence ⦁ Adaptability ⦁ Innovation
U.S. Sow Base – 1994 to 2014
4
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CAGR
Ch
ristensen
Farm
sS
ow
Bas
e an
d T
op
25
Pork Powerhouse # of SowsTop 25 Total Sow Base Christensen Farms
514.84%
61.15%
55.63%
Source of data: Pork Powerhouse Ranking
2014 U.S. Pork Powerhouses
5
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
6
2010
Bob Christensen
Pursues Talent
Acquisition
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
7
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
2010 – Bob Pursues Talent Acquisition
8
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
9
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
2011 – CF Recovers From ‘08/’09
10
• Sow Expansion• Foreign Animal Disease• Export Market Availability• Labor Availability
“I think we’re in good enough shape to start making the same mistakes again.”
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
11
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
November 3, 2012 – Passing of Bob
12
Bob Christensen1961 - 2012
Recognized as an Industry Leader
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
13
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
2013 – CF Launches Investment Plan
14
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
15
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
PEDv Hits Christensen Farms
16
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
17
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
January, 2014 – CF Acquires Exetare
18
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
19
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
1. Review and Recommit to CF’s Mission, Values and Focus on People
2. Launch an Organizational and Individual Talent and Leadership Development Program
3. Strengthen the Foundation - Best in Cost –Top 10% in Agri-stats and Other Available Benchmarks
4. Enhance Liquidity Position to Manage / Weather Business Volatility
5. Seek Strategic Growth Opportunities within the Core Business or within Ancillary Verticals
6. Capture the Full Value of an Integrated Model
March 24, 2014 – Strategic Priorities
20
Two Tracks of a Successful Business
The goal is to maximize speed, decrease friction, minimize resource requirements, and expand the
capacity of the organization
Strategy & Business TrackLeadership & Team Track
21
Our Mission
22
The Christensen Farms team is committed
to and takes pride in being an industry leader
in responsibly producing quality pork
for the noble purpose of providing
food to a growing world.
23
Respect We honor the contributions and accomplishments of others and
embrace the diversity of individuals.
Integrity We will do what is right every day, even when no one is looking.
Excellence We continuously strive to be the best in the industry.
Adaptable We anticipate, pursue, and embrace change for the benefit of the organization.
Innovative We continuously seek and communicate new ideas that drive
improvements in the business, regardless of position.
Our Values
Our People
24
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
25
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
High Performing Organizations
26
High Performing Organizations Starts with People and How They Work in Teams
High Performing Organizations
Collaborative and Productive Teams
Talented Individuals and Leaders
People Strategies: Integrated Approach
Alignment is achieved throughout the organization by
establishing a leadership competency model that
articulates a common set of leadership norms and
expectations.
Three people strategies are leveraged to communicate expectations, assess gaps, and prepare leaders and
team members for success.
27
Examining Performance and Potential
28
• Partnered with 2 Ph.D. Industrial Psychologists and 1 Professional Individual and Team Coach
• Leaders Underwent a Comprehensive Assessment Process Testing Cognitive, Social and Leadership Qualities Using the Following:
₋ Hogan Personality Inventory and Development Survey
₋ California Psychological Inventory
₋ Occupational Personality Questionaire
₋ In-Basket Simulation
₋ Two Cognitive Numeric and Verbal Testing Exercises
₋ Interview with Industrial Psychologists
• Individual Development Plans and Alignment Meetings
• Team Assessments, Exercises and Coaching
Individual and Team Assessment
29
Performance and Potential Development
30
• What are the natural strengths of our leadership?
• How do we communicate?
• How do we make decisions?
• How do we manage change?
• How do we manage conflict?
• How can we work together and more fully engage the organization?
31
How Do We Lead The Organization?
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
32
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
CF Production at a Glance
33
3.00
4.00
5.00
6.00
7.00
8.00
9.00
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Wean to Market
Mortality %6.12 7.01 7.32 7.39 8.75 8.04
Wean to Market Mortality %
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Feed Cost $/Lb of Gain $0.27 $0.38 $0.39 $0.41 $0.33 $0.28
Feed Cost $/Lb of Gain
26.50
27.00
27.50
28.00
28.50
29.00
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Pigs/MatedSow/Yr 28.19 28.18 28.32 28.52 27.19 28.39
Pigs/MatedSow/Yr
4,500
5,000
5,500
6,000
6,500
7,000
7,500
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Lbs. Mated Sow/Yr 6,793 6,593 6,344 6,403 7,020 6,672
Avg. Weight 276.41 275.48 272.31 268.53 279.11 274.78
Lbs/Mated Sow/Yr
Comprehensive Business Accountability• Employee and Animal Safety
• Animal Wellbeing/Compliance
• Human Resource Management
• Turnover and Retention
• Environmental Monitoring
• Asset Management
• Cost/Input Management
• Biosecurity Compliance
Empowerment & Accountability
34
Production Key Performance Indicators• Breed/Farrow Target• Total Born/Born Alive• PWM• SDL• Replacement/Removals• Farrow Rate• LSY• PSY
Jul
2011
Au
g 2
011
Sep
201
1
Oct
201
1
No
v 2
011
Dec
201
1
Jan
201
2
Feb
201
2
Mar
201
2
Ap
r 20
12
May
201
2
Jun
201
2
Jul
2012
Au
g 2
012
Sep
201
2
Oct
201
2
No
v 2
012
Dec
201
2
Jan
201
3
Feb
201
3
Mar
201
3
Ap
r 20
13
May
201
3
Jun
201
3
Jul
2013
Au
g 2
013
Sep
201
3
Oct
201
3
No
v 2
013
Dec
201
3
Jan
201
4
Feb
201
4
Mar
201
4
Ap
r 20
14
May
201
4
Jun
201
4
Jul
2014
Au
g 2
014
Sep
201
4
Oct
201
4
No
v 2
014
Dec
201
4
Jan
201
5
Feb
201
5
Mar
201
5
Ap
r 20
15
May
201
5
Dollar Cost Advantage/(Disadvantage) to the Avg. Co in Agri-Stats
(12 Month)
WP/Cwt Nursery/Cwt Gain Finish/Cwt Gain WTF/Cwt Gain Cwt $ Total
35
$0
Measuring Success and Progress
36
Equity per Sow
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Forecast
Equity per Sow
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
37
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
Daily’s Premium Meats
38
September, 2014
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
39
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
Sioux City, Iowa Plant Expansion
40
April, 2015
A Timeline of Significant Events and Decisions
Leading Through Major Inflection Points
41
2010
2011
2012
Christensen Farms
Recovers from ‘08/’09
Bob Christensen
Suddenly Passes Away
2013
Strategic Investment Plan – More Than $100
Million Plan
2013
2014
2014
2014
PEDv Hits Christensen
Farms
Christensen Farms
Acquires Exetare
Partnership
Christensen Farms Sets
Future Strategic Direction
Christensen Farms
Launches Organizational and Individual Development
Process
2014
Christensen Farms Sets
New Performance
Goals
2014
Triumph Foods
Acquires 50 Percent of Daily’s Premium
Meats
2015
Triumph Foods and Seaboard
Foods Announce New Sioux City Plant
2015
Christensen Farms
Responds to Animal Welfare
Situation
Bob Christensen
Pursues Talent
Acquisition
August, 2015
42
August, 2015
Integrated Model – Pork Value Chain
43
Bio-Security, Health & Animal Welfare Management
Nutrient Management
Further Processing and Direct Markets
Designates Christensen Farms Complete or Partial Ownership
Retail
Restaurant
Primary Processing
Packer Partners
Triumph Foods
Marketing Partner
STF
Christensen Farms
44
Our Mission
Our Values
Our People
Our Strategies
The Christensen Farms Team is committed to and takes pride in being an industry leader in responsibly producing high quality
pork for the noble purpose of providing food to a growing world.
VISION 2020
Respect
Integrity
Excellence
Adaptability
Innovation
Our People are Our Most Valuable Asset
Our Focus is to Attract and Retain Highly Motivated Talent
Our Goal is to Provide a Growth and Development Oriented Culture
Our Pursuit is to Work as a Team and Recognize the Accomplishments of Our People
Strengthen the Foundation
Organizational and Talent Development
Capture Full Value of the Integrated Model
Seek Strategic Growth and AncillaryBusiness Opportunities
Thank You&
Questions