Beyond our near-term goal of fully restoring our packaged meats business, we have four areas of strategic focus:

• Become a global food safety leader
• Reduce our supply chain and systems costs
• Drive organic growth
• Build world-class functional leadership

1. BECOME A GLOBAL FOOD SAFETY LEADER
Investing in food safety has always been the right thing to do, to protect consumers and reduce risk. We are moving even further ahead by implementing a three-year food safety plan that not only encompasses every aspect of out food production but sets global standards of excellence for ourselves and our suppliers. Here is some of what we delivered in 2009:

• Completed a detailed food safety audit of all our food production plants
• Implemented over 200 new standard operating procedures at the Bartor Road facility alone, where the product recall occurred
• Doubled the level of testing for food-borne bacteria to over 123,000 tests in 2009
• Invested $12.5 million in food safety enhancements
• Trained people across our prepared meats plants in our new food safety procedures and requirements
• Incorporated proven antimicrobials in our prepared meats products
• Held our first annual Food Safety Symposium, including industry, government and scientific experts
• Established a Food Safety Advisory Council to provide expert counsel on global best practices
• Continued to achieve Global Food Safety Initiative (GFSI) certification at our frozen bakery operations

In 2010, we will continue the implementation of our three year plan, and increase our investment in processes, equipment and people to elevate our practices even further. To benchmark our progress, we will begin to implement GFSI certification at our prepared meats and meals plants, with a goal to have all plants certified by 2012.

2. INCREASE EFFICIENCY AND LOWER COSTS
In the past 15 years, we have acquired over 30 companies, and in the process established leading market shares in all our core categories. There is significant opportunity to benefit from these leading market shares by achieving greater efficiencies in our production and distribution network. We have largely delivered this in our fresh pork operations, consolidating four facilities into one double-shifted plant. In our value-added meats, meals and bakery businesses, we have 23 prepared meat plants and 22 fresh bakeries, respectively, inherited from the many acquisitions we have made in these businesses.

We plan to make significant capital investments over the next several years to establish a smaller number of large-scale plants that can compete on a cost basis with the best in North America. We announced the fIrst of these initiatives in early 2010, with a planned capital investment of approximately $100 million to construct a new bakery in southwestern Ontario. We expect to commission this new facility by late 2011. It will be by far the largest and most efficient bakery in Canada and among the leading bakeries in North America. We believe this is a sound strategic investment: the returns from investing in infrastructure improvements are excellent and far more predictable than acquisitions or high-risk growth initiatives.

The other major platform for increasing efficiency is implementing SAP as our new integrated systems platform. SAP powers most of the leading global consumer packaged food companies, providing rich and immediate information on business performance that enables better insights and operating improvements. During 2009, we established the footprint and rolled out the system in corporate functions and several smaller businesses or areas of the business. This phased-in approach is enabling us to obtain critical learning before we launch in our larger businesses and ultimately in our customer-facing functions. Following this strategy, we have completed eight successful implementations by the end of February 2010. In 2010, we are beginning to install the SAP system in both our fresh and prepared meats and fresh bakery operations. We expect to fully implement SAP across our manufacturing and distribution facilities by 2012.