Memorandum to Tyson Foods Shareholders

Shareholder proponents ask you to support the following resolutions to be voted on at the 2010 Annual Meeting of Tyson Foods, Inc., for the reasons stated herein.

• Contact: Sr. Pat Daly, American Baptist Home Mission Society 973-509-8800, pdaly@tricri.org

• Contact: Vidette Bullock Mixon, General Board of Pension and Health Benefits of The United Methodist Church, 847-866-5293, vmixon@gbophb.org

• Contact: Chris Matthias, Adrian Dominican Sisters, 517-226-3535, cmatthias@adriandominicans.org

1. Tyson Foods, Inc., the world’s largest meat processing company, relies heavily on large Concentrated Animal Feeding Operations (CAFOs) to supply its poultry, pork, and beef. These factory farms are responsible for significant air, land and water pollution.
2. Factory farms typically confine thousands of animals in enclosed barns. To prevent the spread of disease, low levels of antibiotics are routinely used as a feed additive. This practice facilitates the development and spread of resistant pathogens that can be transmitted through food, and transmitted to the environment through air and water emissions.
3. Legislative and regulatory measures have been proposed that may affect Tyson’s business model and disrupt its supply chain.
4. It is in Tyson’s and its investors’ financial interests to be at the forefront of policies and practices that ensure the sustainability of the meat supply while mitigating environmental damage. Doing so will help the company remain an industry leader while reducing long-term financial risk for the company and its shareholders.

1. Tyson relies heavily on Concentrated Animal Feeding Operations (CAFOs), or “factory farms,” for its livestock supply. These farms are responsible for significant air, land and water pollution.

• Tyson reports that it has 87 company-owned poultry farms and contracts with approximately 6,700 independent poultry farmers. All of the company’s beef and the nearly all of its hogs are procured under contract or purchased on the open market.ⁱ
• Tyson exerts considerable control over its contract farms,ⁱⁱ but the company does not report on the environmental impacts of these farms in its Sustainability Report.
• Factory farms emit high levels of air pollutants, including: greenhouse gases (GHG), arsenic, ammonia, hydrogen sulfides, airborne pathogens and particulate matter. It is estimated that current meat production processes account for 15% to 24% of greenhouse gas (GHG) emissions.ⁱⁱⁱ
• A 2006 report from the United Nations Food and Agriculture Organization states that: methane emissions from beef and dairy cattle account for 17% of GHGs in U.S. agriculture; the U.S. has the world’s highest level of methane emissions from animal manures, with hogs accounting for the largest share; and 18% of GHG emissions worldwide are attributable to livestock activities.^iv
• As a partner in the U.S. Environmental Protection Agency’s (EPA) Climate Leader’s program, Tyson committed to conducting a corporate-wide greenhouse gas inventory. In the company’s Sustainability Report, however, a GHG inventory on the company-owned and contract farms is omitted.
• Depending on the type of animal raised, large factory farms generate anywhere from 2,800 to 1.6 million tons of animal waste per year.^v However, CAFOs are not required to treat animal waste prior to disposal. Large volumes of untreated manure are stored on site in waste lagoons or sprayed as fertilizer onto fields. This causes pollution run-off into nearby streams and water bodies.^vi The waste, which has high levels of nitrogen and phosphorus, may also contain E. coli, antibiotics residue, and other pathogens.^vii
• Factory farms are often geographically clustered, leading to excessive application and a high potential for runoff and leaching into area waterways.^viii Officials in North Carolina, California, Arkansas and Oklahoma have identified numerous wells and water bodies contaminated by manure runoff.
• In November 2009, EPA and the State of Florida agreed to set limits on water pollution from animal wastes to settle litigation brought by environmental groups.^ix
• Tyson has been indicted for criminal violations of the Clean Water Act and has paid millions of dollars in fines and penalties for numerous water violations over the years. In August 2009, Tyson was fined $2 million for violating a 2001 consent decree by allowing discharges of fecal coliform and nitrates from its Nebraska facility.^x It is now being sued by the State of Oklahoma for poultry run-off pollution from several of its contract farms.^xi

2. Factory Farms facilitate the spread of antibiotic-resistant bacteria that are transmitted to workers, consumers, and the environment.

• Factory farms typically shelter thousands of animals in enclosed barns. To prevent the spread of disease, low levels of antibiotics are routinely used as a feed additive. This practice facilitates the development and spread of resistant pathogens that can be transmitted through food such as Campylobacter jejuni, multidrug resistant Salmonella, and Methicillin Resistant Staphylococcus Aureas(MRSA).^xii Resistant bacteria can also be transmitted to the environment through air and water emissions.
• Medically important antimicrobials such as antibiotics and ionophores are routinely used. The Union of Concerned Scientists estimates that livestock production accounts for approximately 70% of all antibiotic use in the United States.^xiii Many scientific studies confirm that the non-therapeutic use of antibiotics in farm animals contributes to the development of antibiotic-resistant bacterial infections in humans.^xiv Farmers and farm workers are particularly at risk.^xv
• The World Health Organization has flagged widespread use of antimicrobials outside human medicine as a “serious concern given the alarming emergence in humans of bacteria, which have acquired, through this use, resistance to antimicrobials.”^xvi
• Tyson’s Sustainability Report states that antibiotics are used “when necessary and for therapeutic reasons,” however, “therapeutic” is not defined, supporting data is not provided to corroborate this statement, and the company does not disclose if inonophores are used. (The US Department of Agriculture classifies ionophores as an antibiotic.)
• A study sponsored by the US Geological Survey in 2002 found that antibiotics were present in 48% of the streams tested nationwide, and that almost half of the tested streams were downstream from agricultural operations.^xvii Another study by Health Canada linked 2300 illnesses and 7 deaths to water contaminated with E. coli and Campylobacter from a nearby cattle farm.^xviii
• Zoonotic disease is also a concern. A 2007 report by the UN Food and Agriculture Organization warned that increasing industrialization of pig and poultry production could lead to a higher risk of disease transmission from animals to humans.^xix Examples of such diseases include H1N1 (swine) flu, SARS, and the highly pathogenic avian influenza (bird flu).
• There is strong consumer demand for antibiotic-free chicken. Citing consumer research that indicated 91% of consumers prefer antibiotic-free chicken, Tyson launched a “Raised Without Antibiotics” marketing campaign in 2007.^xx Tyson’s competitors reported losses of millions of dollars due to the campaign and prevailed in a federal lawsuit that claimed the advertising was misleading.
• Over 250 hospitals have signed the Healthy Foods Pledge, endorsed by the American Medical Association, committing to purchase meat products that are grown without routine use of antibiotics.^xxi
• McDonald's Corporation has prohibited its direct suppliers from using antibiotics that are important in human medicine as growth promotants in food animals since 2004. Other restaurant and food service companies that have purchasing policies against non-therapeutic antibiotics in their meat supply include: Bon Appétit, Chipotle, Dairy Queen, Domino’s, Hardee’s, Panera Bread, Popeyes, Ruby Tuesday, Subway, T.G.I. Friday’, and Wendy’s.^xxii

3. Legislative and regulatory measures have been proposed that could adversely affect CAFOs and disrupt Tyson’s supply chain.

• The use of antibiotics as growth promoters was completely banned by countries of the European Union in 2005.^xxiii Sweden was the first to ban all use of antibiotics as growth promotants in 1986. Denmark, Europe’s largest hog producing country, phased out this use of antibiotics in 2000. Two years later, it was reported that the prevalence of drug resistant bacteria had markedly decreased with minimal effect on the health of animals or the price of meat.^xxiv
• Calls to restrict or ban the non-therapeutic use of medically important antimicrobials in farm animals have been endorsed by the American Medical Association, American Public Health Association, the World Health Organization, the New England Journal of Medicine, the Pew Commission on Industrial Farm Animal Production, John Hopkins University, the National Association of County and City Health Officials, and more than 300 other organizations.
• The Preservation of Antibiotics for Medical Treatment Act of 2009 (PAMTA), introduced by Rep. Louise Slaughter (NY) and co-sponsored by 100 other Representatives, seeks to ban the routine, non-therapeutic use of medically important antibiotics in animals. If enacted, this legislation could have a material impact on Tyson’s operations.
• In the absence of federal guidance regarding air emissions from factory farms and with increasing concerns about environmental damage, at least six agricultural states have stepped in to regulate some factory farm emissions.^xxv In acknowledgment of the deficiency in emissions monitoring data and in preparation for the development of future protocols, in 2007 the EPA implemented a two-year National Air Emissions Monitoring Study of factory farms.
• President Obama has expressed support for strict EPA monitoring and regulation of pollution from factory farms, and large fines for those who violate air and water quality standards.^xxvi

4. It is in the financial interests of both Tyson and its investors for the company to be at the forefront of policies and practices that ensure the sustainability of the meat supply while mitigating environmental damage. Doing so will help the company to retain its leadership position and reduce financial risk for the company and its shareholders.

• Tyson should set goals for phasing out non-therapeutic use of antibiotics in animal feed to avoid disruptions to its supply chain in the event of a ban on this use by the Federal of state governments and to protect its reputation with consumers as a producer of wholesome meat products.
• Tyson must also improve environmental management practices at company-owned facilities and its contract farms to ensure compliance with all Federal and state laws protection water resources, air quality, and the public’s health.
• In Sierra Club v. Tyson, a federal court in 2003 ruled that Tyson could be held liable as the “operator” and “person in charge” for environmental violations at its contract farms. The company has paid more than $10 million in fines to settle violations of the Clean Water Act and the Clean Air Act since 2003.^xxvii
• Tyson’s Sustainability Report should reflect the company’s policies and programs in this area, thereby providing investors and other stakeholders with information to better assess the company’s long-term strategies on sustainability.

To protect Tyson’s competitive position and enhance shareholder value, we strongly urge the company to adopt aggressive measures to reduce the impact or its operations on human health and the environment by phasing out the use of animal feeds containing non-therapeutic doses of antibiotics that are used in human medicine, preventing run-off and other forms of water pollution at all of its facilities. Tyson should also publicly disclose its progress in implementing these measures at both company-owned and contract facilities in its Sustainability Report.

Therefore, the proponents recommend a vote FOR Proposals 4, 5, and 6.

ⁱ Tyson Foods 10-K Report 30 November 2009, “Raw Materials and Source of Supply.” http://secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=6907268&type=convpdf&companyid=3674&ppu=%2fdefault.aspx%3fticker%3dTSN%26amp%3bformgroupid%3d1%26amp%3bauth%3d1

ⁱⁱ Tyson Foods, Inc. 2007 Sustainability Report, “We provide farmers with state-of-the-art veterinary support, scientifically-formulated feed, and technical assistance, with our technical advisors typically visiting farms on a weekly basis. We provide producers with information on sound environmental practices, optimal lighting and ventilation for chickens, and disease control.”

ⁱⁱⁱ Fiala, N. 2008. Meeting the demand: An estimation of potential future greenhouse gas emissions from meat production. Ecological Economics 67(3): 412-419.

^iv Livestock’s Long Shadow, Food and Agricultural Organization of the United Nations, 2006, pp 97-99, 112 ftp://ftp.fao.org/docrep/fao/010/A0701E/A0701E00.pdf

^v Concentrated Animal Feeding Operations: EPA Needs More Information and a Clearly Defined strategy to Protect Air and Water Quality, US Government Accountability Office, September, 2008.

^vi Fountain, H. “Down on the Farm and Endless Cycle of Animal Waste,” The New York Times, 28 December 2009. http://www.nytimes.com/2009/12/29/science/29manure.html?_r=1&scp=3&sq=farm%20runoff%20fouls%20wells&st=cse

^vii Duhigg, C. “Health Ills Abound as Farm Runoff Fouls Wells, The New York Times, 17 September 2009. http://www.nytimes.com/2009/09/18/us/18dairy.html?scp=1&sq=farm%20runoff%20fouls%20wells&st=cse. See Hodne, C.J. Concentrating on Clean Water: The Challenge of Concentrated Animal Feeding Operations, The Iowa Policy Project, 2005.

^viii R.L. Kellogg, C. H. Lander, D. C. Moffitt, and N. Gollehon. Manure Nutrients Relative to the Capacity of Cropland and Pastureland to Assimilate Nutrients: Spatial and Temporal Trends for the United States. Washington, D.C.: December 2000.

^ix Earthjustice News Release, “Judge Approves Historic EPA Settlement: EPA and Florida Must Set Limits on Fertilizer and Animal Waste Pollution in State Waters,” 16 November 2009. http://www.sierraclub.org/environmentallaw/lawsuits/docs/EPA-SMT_11.16.09.pdf

^x U.S. EPA News Release, Tyson Fresh Meats, Inc., to Pay More than $2 Million for Discharges at Dakota City, Neb., Meat Packing Plant, 21 August 2009. http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/614f15bb6b523b188525761900662388!OpenDocument

^xi AllBusiness.com, “Long-awaited poultry suit begins: The state's attorney general says chicken litter has fouled the Illinois River watershed,” 25 September 2009. http://www.allbusiness.com/government/government-bodies-offices/13040362-1.html

^xii Use of antimicrobials outside human medicine and resultant antimicrobial resistance in humans, Fact sheet Number 268, World Health Organization, 2002. http://www.who.int/mediacentre/factsheets/fs268/en/

^xiii M. Mellon, C. Benbrook, K.L. Benbrook. Hogging It: Estimates of Antimicrobial Abuse in Livestock, Union of Concerned Scientists Publications, 2001.

^xiv Testimony of Dr. Joshua Sharfstein, Principal Deputy Commissioner of Food and Drugs of the Food and Drug Administration, before the Committee on Rules of the House of Representatives held a hearing on H.R. 1549, 13 July 2009, http://www.rules.house.gov/111/oj/hr5419/statements/sharfstein_hr1549_111.pdf. See, also, Testimony of Dr. Margaret Mellon, http://www.ucsusa.org/assets/documents/food_and_agriculture/july-2009-pamta-testimony.pdf; and Robert Martin, http://www.ncifap.org/bin/o/o/Martin%20testimony.Rules.7.13.09%20final-3.pdf

^xv See, Kristol N. “Our Pigs, Our Food, Our Health,” The New York Times, 11 March 2009. http://www.nytimes.com/2009/03/12/opinion/12kristof.html?scp=1&sq=our%20pigs%20our%20food&st=cse

^xvi Use of antimicrobials outside human medicine and resultant antimicrobial resistance in humans, Fact sheet Number 268, World Health Organization, 2002. http://www.who.int/mediacentre/factsheets/fs268/en/

^xvii Kolpin DW, Furlong ET, Meyer MT, et al. 2002. Pharmaceuticals, Hormones, and Other Organic Wastewater Contaminants in U.S. Streams, 1999-2000: A National Reconnaissance. Environ. Sci. Technol. 36:1202 –1211. http://www.mindfully.org/Water/Wastewater-Contaminants-US-StreamsMar02.htm

^xviii C.G. Clark, L. Price, R. Ahmed, D.L. Woodward, P.L. Melito, F.G. Rodgers, J. Jamieson, B. Cieben, A. Li, A. Ellis, Characterization of Waterborne Outbreak-Associated Campylobacter jejuni, Walkerton, Ontario. Emerging Infectious Diseases. Vol. 9, no. 10 (2003): 1,232-1,241.

^xix J. Otte, D. Roland-Holst, D. Pfeiffer, R. Soares-Magalhaes, J. Rushton, J. Graham, E. Silbergeld. Industrial Livestock Production and Global Health Risks, Food and Agricultural Organization of the United Nations, June 2007.

^xx “Tyson Goes Antibiotic-Free”, Matthew Enis. June, 20, 2007, found at http://supermarketnews.com/fresh_market/tyson_antibiotic_free/

^xxi Health Care Without Harm, Healthy Food Pledge, http://www.noharm.org/us_canada/issues/food/pledge.php

^xxii “Statements on Antibiotic Use by Major Restaurant Chains and Food Service Companies,” Keep Antibiotics Working, 2005. http://www.keepantibioticsworking.com/new/consumers_statements.cfm

^xxiii European Union News Release, “Ban on antibiotics as growth promoters in animal feed enters into effect,” Europa Reference: IP/05/1687, 22 December 2005. http://europa.eu/rapid/pressReleasesAction.do?reference=IP/05/1687&format=HTML&aged=0&language=EN&guiLanguage=en

^xxiv Brown, D. “Gains From Antibiotic Ban Noted; Benefits to Danish Farm Animals Come at 'Marginal' Cost,” The Washington Post; 27 March 2002; A.11

^xxv Concentrated Animal Feeding Operations: EPA Needs More Information and a Clearly Defined strategy to Protect Air and Water Quality, US Government Accountability Office, September, 2008, p. 41.

^xxvi “Barack Obama on Concentrated Animal Feeding Operations,” available at http://obama.3cdn.net/6274ad7348d96cd410_2aumv2byv.pdf.

^xxvii Tyson Foods, 10-K, 30 November 2009, Item 3. Legal Proceedings. http://secfilings.brand.edgar-online.com/DisplayFilingInfo.aspx?filingid=6907268&ppu=%2fdefault.aspx%3fticker%3dTSN%26amp%3bamp%3bamp%3bamp%3bformgroupid%3d1%26amp%3bamp%3bamp%3bamp%3bauth%3d1&type=HTML