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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 1

Bruce FeinbergSenior Director Global Restaurant Quality

Good Agricultural Practices A Global Perspective

Todays Agenda

About McDonalds Consumers Are Driving Change What Keeps Me Up At Night Brand Trust So What? Global Consensus, Local Solutions

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 2

There is no love sincerer

than the love of food

George Bernard Shaw

And We Love Food In ABig Way

In 118 countriesOver 32,000 restaurantsServing > 64 million customersEVERYDAY

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 3

Over$9.3billionU.S

.SupplyC

hain

Purchase

s

808MillionPou

ndsofBe

ef

727MillionPou

ndsofCh

icken

1.6BillionPoun

dsofPota

toes

Fruit & Veggies for the USBusiness

1.6 BILLIONpounds ofpotatoes

60 MILLIONpounds of apples

43 MILLIONpounds oftomatoes

2.1 MILLIONpounds

of blueberries

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 4

Changing Consumers

THEN

Limited choices Home preparation Food = Nourishment Processed = convenience Industry appreciated Microwave as technology

NOW

Variety All Year-long Global/Ethnic Eat in/out; take home; mix it up Fresh on-the-go Food hea lth & wellness Industry suspected Food prepares itself

ContemporizingMcDonalds

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 5

The future aint what it

used to beYogi Berra

Genuine Consumer Concern

73% of Americans are more concerned about thefood they eat than they were 5 years ago, up from65% in 2010

And the second most pressing concern, the safetyof food ingredients and product consumed,increased significantly from 36% in 2010 to 49%in 2011.

Source: Consumer Food & Product Insights Survey March 2011

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 6

Economic & Health Impact

Of 14 foodborne pathogens assessed, the top 5

CamphylobacterSalmonellaListeria Monocytogenes

Toxoplasma gondii

Norovirus

And while the top 14 pathogens cause an estimated loss of $14B,the top 5 account for $12.7B

Source: University of Florida Emerging Pathogens Institute May 2011

The Times They Are a-

Changin

Bob Dylan January 1964

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 7

!#

$

!

!

#

!#

"

!#

Brand TrustBrand Protection

Brand Trust:From Farm to Customer

Farm Supplier Distributor Restaurant Customer

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 8

SO WHAT?

Bruce Feinberg - Everyday

What We Did: After the completion of 3 separate benchmarking exercises in

Q4 2010, the Global Produce Food Safety Team deployed a globalproduce food safety strategy Q1 2011 that includes:

A globally accepted set ofexpectations for on farm control

A verification checklist for growers and supplier via 2nd or 3rd

party auditorsTraining video product ion (an industry first), introduced via web

cast to each AOW, moderated by McDonalds with industryconsultant Q&A following each session

30 minute classroom lecture

20 minute proficiency test

McDonalds Good Agricultural

Practices Food Safety Standards

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 9

Critical Elements

For Produce Food Safety

1.0ManagementCommitment

2.0 Food SafetyProgram Growing,

Harvesting &Transportation

3.0 Irrigation& Water

Management

4.0 F ertilizer.Soil Additivesand Pesticide

Use

5.0 RiskAssessment

6.0 Land UseAssessment

7.0PersonnelHygiene

8.0 FieldForeignMaterialControl

9.0Traceability

Standard: Water used in the product ionand harvesting of f resh produce will be

from a source that does not result in anunacceptable risk to fresh produce.

Expectations:

3.4 If any irrigation water is used, a minimum of onesample at point of application that meets the criteriastated in 3.10 must be sampled to establish a waterquality profile prior to us e.

3.0 Irrigation & Water Management

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 10

Whats Next?

Produce Processing Opportunities In July 2011, released McDonalds

Global Guidance for ProduceProcessing Food Safety

Provides needed guidance to freshproduce processers assuring food

safety from the farm to the restaurant

McDonalds Good AgriculturalPractices Food Safety Standards

In Closing

Internal Collaboration, External Inclusion Global Solutions Require Global Support

Recipe for Future Success React to changing food safety

concerns

Meet customers requirements Simplicity and ease of use

McDonalds Good Agricultural

Practices Food Safety Standards

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BRUCE FEINBERG MCDONALDS CORPORATION, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USAGLOBALG.A.P Secretariat | Page 11

Thank You!

None of us is as good as

all of usRay Kroc McDonalds Founder