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Welcome
This report summarizes the past progress and future commitment of Novus International, Inc. to providing innovative solutions that will help feed the world affordable, wholesome food and achieve a higher quality of life. The earths population is increasing by 75 million people per year. In the next 40 years, its limited natural resources will have to bear the burden of feeding 3 billion people more than the global population of 6.6 billion today. The strain on the planets resources makes it imperative to protect quality of life by moving forward in ways that support global sustainability. Health through Nutrition is Novuss second sustainability report. The first report covered the 18-month period ending June 30, 2008, which complied with the Level C guidelines of the Global Reporting Initiative (GRI). This report covers the 12-month period ending December 31, 2009, with footnote data pertaining to the date range of July 1 to December 31, 2008. It fulfills the more rigorous Level B GRI guidelines. Going forward, Novus plans to publish a sustainability report on an annual basis.
GRI: 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.9, 3.10 and 3.11
Thad W. Simons President and Chief Executive Officer Novus International, Inc.
Novus International, Inc. Health through Nutrition 2009 | 2
Vision
To help feed the world affordable, wholesome food and achieve a higher quality of life.
Novus has a clearly defined Vision. Feeding the world over the next four decades will require producing more food than in the previous 4,000 years. Satisfying this increasing demand without straining, depleting or polluting the earths natural resources will continue to be a complex challenge. It will require innovative solutions in nutrition, combined with a solid commitment to global sustainability.
Mission
Make a clear difference in sustainably meeting the growing global need for nutrition and health.
Our core expertise and experience in health and nutritional research empower Novus to move toward our Mission. Together, our Vision and Mission form the solid bedrock that supports Health through Nutrition.
Core Values
Global sustainability is a fundamental imperative at Novus. It is the common denominator between our corporate Vision, Mission and Core Values.
As you read the first section of this report, Novuss Background and Sustainable Culture, please note the icons belowthey are meant to provide examples of how we integrate our Core Values into our work each day.
Novuss Core Values bring our Vision and Mission to life. The Core Values define, in practical terms, how our 600-plus employees conduct business with each other, with customers and with other stakeholders. They guide all business strategies, plans and objectives. They shape our companys culture, which begins at the individual level and carries through to the marketplace.
We seek excellence from every employee. We encourage, expect and support alignment, diversity, individual growth, initiative and teamwork.
We strive to provide products with demonstrable value. Our research focuses on leading-edge concepts, and we are committed to supplying preferred products and services.
It is critical that we maximize longterm customer satisfaction. Whether related to products, services or innovation, we must always anticipate our customers needs and exceed their expectations.
We protect our employees, the public and the environment. Specifically, we make health, safety and environmental considerations a priority in everything we do.
We act with integrity. We treat all of our stakeholdersincluding employees, customers, suppliers, business partners, our owners and the publicin a fair and ethical manner.
These Core Values are of profound importance to each Novus employee. They are essential to the way we work each day and to Health through Nutrition.
Each of the preceding Core Values affects the way we measure our progress in terms of our triple bottom line of social, economic and environmental (SEE) considerations. They also provide a basis for our four Critical Success Factorsgrowth, profitability, people and reputation. Novuss Critical Success Factors provide the framework for the way we set our business goals and align towards our long-term strategy.
Profitability
Implement improved business processes, measure and support systems that will move Novus closer to our customers and deliver increased yearover-year market value.
People
Provide an environment that enables employees to bring their full capabilities to bear with behaviors consistent with the Novus Management and Integrity Systems, in accordance with the Novus Mission, Vision and Core Values. Promote a safe and healthy work-life balance to motivate employees to achieve our Novus Three-Year Growth and Diversification efforts.
Reputation
Expand on our positive image by initiating and supporting activities and programs that demonstrate Novuss integrity and aspirations to meet corporate objectives in a responsible, sustainable manner.
Three-Year Objectives
Social
Economic
Environmental
We measure our progress in terms of our triple bottom line: social, economic and environmental (SEE). The products we sell, the way in which we conduct business with stakeholders and our respect for the earths natural resources are all interconnected, integrated and equally important.
Raindrop, Douglas Auer and Michael Hayes, 2009 Media: Glass Novus commissioned this piece for our global headquarters. It is made of blown glass spheres and volumetric flasks. The materials chosen and the forms created highlight the link between scientific development and the preservation of the natural world.
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Novuss Background
Novus International, Inc. creates Health through Nutrition products for livestock, pets and people. Novus has employees working in over 90 countries, serving more than 2,500 customers worldwide. Based in St. Charles, Missouri, Novus has facilities including corporate offices, research and development laboratories and manufacturing operations in more than 35 countries, as well as smaller offices with field staff in an additional 60 countries. The organization has annual revenues approaching $1 billion. Based on Science Novus International, Inc. was founded in 1991, but our scientific roots and history originated over 50 years ago. In the 1950s, St. Louis, Missouri-based Monsanto Company began conducting livestock and poultry feed metabolism studies. In 1959, one of its products received FDA approval as an animal feed additive, which helped launch the Monsanto division that would become Novus. In 1991, in an effort to focus on its core businessesseed, herbicide and biotechnologyMonsanto sold its Feed Ingredients division to Mitsui & Co., Ltd. (www.mitsui.com) and Nippon Soda Co., Ltd. (www.nippon-soda.co.jp). The new owners saw Novuss strategic potential for growth. In our first year, we put into place the corporate Vision of helping to feed the GRI: 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8
Novus revolutionized poultry nutrition through the development of ALIMET, a liquid feed supplement.
world affordable, wholesome food. At the time, this Vision statement was considered a bold goal and some questioned how Novus could realistically make a contribution. We were a small, businessto-business company with two products for the poultry industry, but we understood that Novuss core knowledge of health and nutrition related to poultry could be beneficial to other species. Working from a strong base of scientific understanding, we have brought to market more than 100 new products over the past decade. Today the Novus product portfolio provides a holistic approach to Health through Nutrition for poultry, cattle, pigs, pets, farm-raised fish, horses and people.
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Working Closely with Our Customers Novus is committed to having a genuinely global reach. We connect with our customers at the local level, work with them in their own communities and understand their needs in a meaningful way. Novus customers have the unique experience of localized research and development, technical support, customer service and logistics. This commitment to working closely with our customers provides Novus with realtime, hands-on knowledge of current and future customer needs. We work with our customers to improve their business operations through increased productivity and profitability. Novuss Health through Nutrition programs support healthy, happy animals that are more productive and generate less waste, reducing their environmental impact. Additionally, Novus products protect the nutritional quality of feed and feed ingredients, which are farmers largest operational investments and most important tools for ensuring livestock health. The Importance of Agriculture Novuss history and largest market segment is based in livestock agriculture. The importance of achieving our Vision comes full circle when you consider the growing demand for food on our planet. Meeting this need can only be achieved through the technological innovation of companies like Novus. GRI: 2.7 We are motivated to contribute to an agriculture industry that is equipped to provide nutritious, affordable food to people everywhere in the world and to do so through sustainable, responsible practices. Novus has a culture of sustainability that begins at the individual level and carries through to the marketplace. We approach our work through the lens of sustainability, and this is a requisite consideration at Novus. Every business project is cross-checked to ensure that our criteria for sustainability are achieved. The need for food is projected to grow by 100% over the next four decades. We have made great strides as an industry, developing strategies to improve productivity including crop, genetic and nutritional technologies. However, there is still much work that needs to be accomplished. For example, we are currently only achieving 60% of the genetic growth potential of broilers. Technology related to nutritional strategies and best management practices can close this gap. As the productivity of our industry increases, so does access to affordable, wholesome food.
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Slides, Julia Dibner, Cell Biologist and Photographer David Burt, Artistic Director, 2009 Media: Digital Photography Cells from the organs and bones of animals were prepared and stained for scientific analysis, then photographed microscopically. The artists then isolated forms and compositions present in the images, and cropped and manipulated the photographs to create a finished piece.
GRI: 2.7
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Major Milestones
In 2009, we celebrated the 25th anniversary of ALIMET production at our facility in Chocolate Bayou, Texas, and the 50th anniversary of SANTOQUIN, the first feed additive approved by the FDA. These two livestock feed additives have helped improve animal health and enhance business operations for producers around the world for many decades. Over the last 25 years, we have grown the ALIMET production facility in Chocolate Bayou into the largest liquid methionine manufacturing plant in the world. SANTOQUIN helps farmers get the greatest return on their largest operating investments: feed and feed ingredients. SANTOQUIN protects feed from the damaging effects of oxidation, which is beneficial to animal health and to farmers sustained business operations. The quality of feed ingredients has a direct and measurable impact on the health of animals. Animals who are fed a quality diet, balanced with the proper levels of amino acids, have a lower incidence of health challenges and are more productive.
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Sustainable Culture
Novuss company culture of global sustainability is expressed through three basic principles:
Maximize Output, Minimize Waste Collaborate by Sharing Information Local Solutions for a Global Marketplace
When a holistic system functions at optimum efficiency, output is maximized and waste is minimized. Taking an integrated viewpoint is characteristic of a Novus-style solution. This point of view takes into consideration not only the intended result, but also the by-product of that result. As part of our culture, we strive to conduct our work in ways that minimize our environmental footprint. Novus products are geared towards maximizing output and minimizing waste. Leveraging a broad product portfolio, we take a comprehensive approach to optimizing the health of animals. This approach maximizes farmers outputs, fortifies livestock against disease and ultimately leads to the production of higher quality food. Novuss Health through Nutrition programs support healthy, happy animals who generate less waste for the environment and are more productive.
On June 3, 2009, the Governor of the State of Missouri, Jay Nixon, along with 450 other guests, participated in a ribbon release ceremony, commemorating the opening of Novuss Platinum LEED Certified global headquarters facility. Platinum LEED is the highest energy and environmental designation available in the U.S.
GRI: 2.7
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Sustainable Culture
At Novus, sustainability begins at the individual level and is evident in the daily activities of each employee. It is demonstrated in the way that employees put into practice our collective aspirations, Novuss Mission, Vision and Core Values.
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Collaborate by Sharing Information Novuss culture is shaped by the spirit of discovery and innovation on which our rich history is based. Our collaborative work style encourages the open flow of information among a community of colleagues who share common interests in scientific progress and improving the markets we serve. At Novus, a collaborative approach is also typical of our relationships with customers. We freely share our industry knowledge with customers in an open dialogue about their most important business challenges. We consult with them to develop innovative solutions that meet their specific needs. Our open culture is also reflected in the relationships we have developed with students and professors at universities around the world. We have something to learn from everyone and, in turn, we want to share all that we can. Our office and meeting spaces are open to encourage discussion and collaboration. People know each other on a first-name basis and respect one another as individuals. This sustainability report to stakeholders, Health through Nutrition, is another example of Novuss commitment to sharing information openly. Local Solutions for a Global Marketplace At Novus, we place a high priority on understanding our customers needs and believe that living and working in their specific geographies are key to building this knowledge. Additionally, we have found that working directly with our customers, globally, is a critical differentiator for Novus in our industry. For these reasons, we are committed to having a genuinely global reach. Novus customers have the unique experience of localized research and development, technical support, customer service and logistics. We understand that our customers needs vary based on their location in the world. Local resources enable us to provide support with agility and in a way that brings demonstrable value to our customers businesses.
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This past year, we formalized our commitment to sustainability at Novus, adding the role of Chief Sustainability Officer. In January 2009, Novus welcomed Joyce Cacho, Ph.D. to coordinate and synergize our sustainability efforts. Cacho leads the planning and implementation of Novuss global corporate social responsibility program and initiatives. Her extensive background in managing international agribusiness initiatives and projects with The Corporate Council on Africa (CCA) and U.S. International University (USIU) have prepared her to lead Novuss sustainability efforts around the globe.
GRI: 3.13, 4.1, 4.3, 4.4, 4.6, 4.8, 4.9 and 4.11
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Sustainability in Practice
We approach our work through the lens of sustainability, a requisite consideration at Novus. Every business project is cross-checked to ensure that our criteria for sustainability social, economic and environmental (SEE)are achieved.
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Each year, Novus employees volunteer their time, in partnership with the United Way, to support organizations such as the St. Louis Area Food Bank.
Giving a charitable donation to an organization or funding the construction of a building at a university are finite activities. Building synergistic relationships requires a commitment and an investment of time, but the positive effects are ongoing. Relationship building is the Novus approach to CSR.
To learn more about the CSR activities of our parent companies, please visit Mitsui CSR report: www.mitsui.co.jp/en/csr/report/index.html Nippon Soda annual report: www.nippon-soda.co.jp/e/index.htm
GRI: 2.5
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Employee Development
As a knowledge-based company, we recognize that our greatest return on investment in employees comes from our employee development programseducation and training. The next few pages provide examples of the many development programs we offer at Novus. The Novus Management System All employee development at Novus is rooted in the Novus Management System (NMS)a living set of principles that guide us in most effectively structuring, staffing and managing our organization. Among the tenets of the NMS are honesty, respect and fairness. Novus managers have many difficult decisions to make, and often there are no clear answers. NMS principles help guide our decision-making process so that we keep these tenets in mind, always striving for trustwhether between managers and subordinates, or throughout the organization as a whole. The Novus Online Learning System The Novus Online Learning System is a comprehensive training resource that is available to every Novus employee. There is a wide range of online training available, including modules based on the Novus Management System, the Novus Integrity System and our products and markets. In addition to modules that are specifically about Novuss business, the system also provides a wider selection of professional development tools, including foreign language courses from Rosetta Stone and value-added sales training.
Green Team
Our Green Team is a volunteer-based employee team responsible for integrating environmentally sound practices into our day-to-day activities at Novus. From office supplies to recycling, the Green Team helps us live our Mission by engaging in and providing education about environmental conservation. Activities of the Green Team include: Nature Conservation Green Team members address site-specific opportunities to improve Novuss footprint on water, soil and energy conservation. Community Involvement Our Team collaborates with organizations that are working to improve our local communities, including Habitat for Humanity and the Missouri Department of Conservation. Global Engagement Novus Green Teams are currently being established at our facilities throughout the world.
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The Novus Speakers Series The Novus Speakers Series creates opportunities for our employees to become better informed about issues affecting their communities and our industry. Speakers from both inside and outside the company address employees. One of our goals for this program is to capitalize on the diversity of our workforce by fostering opportunities for employees to learn from one another. Speakers over the past year have included representatives from the United Nations Association, Habitat for Humanity, Stray Rescue, Missouri Department of Conservation and the United Way. We post videocasts of the Novus Speaker Series on our company intranet, NovusConnect. NovusConnect Through NovusConnect, we provide the opportunity for all employees around the world to learn and collaborate with one another. NovusConnect serves as a central location for sharing information, from research data to corporate forms, in an organized and searchable environment. NovusConnect also provides a variety of tools to support global communication, such as announcements, alerts, presentation libraries and MySites (our version of Facebook). These tools allow employees to share information about themselves and access information about other peers in the organization. Novus employees can create blogs, join discussion forums and use a survey center to create polls about matters important to their roles in the organization.
Video Diaries and Podcasts More and more, we are using technology to share information, learn and stay connected globally. For example, when our EVP, Marketing and Sales, Dr. Giovanni Gasperoni, recently visited Kenya, he captured photographs and maintained a video diary to document the trip. To share his experiences with his fellow employees, he posted the media to NovusConnect, so that all employees would have the opportunity to learn firsthand about the significance of our work in Africa.
More and more, we are using technology to share information, learn and stay connected globally.
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All Hands Each quarter, Novus gathers for an all-hands communications meeting. These meetings include updates from various departments across the organization and typically feature presentations by our personal trainers, nutritionists and Green Team. All communications meetings are video recorded and available for viewing by all Novus employees, globally. Special Events Novus hosts a variety of special events for employees each year. For example, this past November, we hosted a Healthy Thanksgiving at our headquarters for all employees and their families. The event featured many traditional Thanksgiving delicacies, such as stuffing, cranberry sauce and mashed potatoes, but with a healthy preparation (low fat, low sodium, portion controlled). As a special gift, Novus gave families a copy of a cookbook featuring many of the dishes prepared for the event. Snapshot Newsletter Novus provides education on health, nutrition and sustainable practices for everyday life to employees through many platforms. For example, we send the Novus Snapshot newsletter to each employee on a monthly basis. The Snapshot provides educational information on current events both inside Novus and the industries in which we work. Each issue also includes a healthy recipe provided by Novuss approved nutritionist.
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GRI: 4.17
Asia Pacific Asia Pacific is one of the most aquaculture-dependent regions of the world, from the standpoint of economic development and food supply. The aquaculture and livestock industries rely heavily on the use of fish meal, which is derived from wild, oceancaught fish. However, fish meal is an unsustainable and increasingly expensive source of protein for agriculture supplementation. Our team in Asia Pacific has implemented a fish meal replacement program that we employ to offer customers a significantly lower cost of feed with optimized animal performance. The program supports amino acid balance, animal health and meat quality. It is environmentally friendly, because we substitute a significant percentage of fish meal and minimize the impact of fish caught wild from our oceans for this purpose. Europe At Novus, we place an emphasis on the sustainability of our solutions for our customers. In Europe, we have developed a program that optimizes the feed milling process by using a surfactant. The program utilizes our SURFACE product to improve the efficiency of the feed production process. Feed production can be an energy-intensive process, especially for those using granulators or extruders. Customers using SURFACE in their feed mills have experienced a 10% reduction in energy consumption while increasing the output of their presses. This program improves the mills efficiency, reduces the impact on the environment and increases feed production.
Novus works with feed mills in Africa that support the work of smallholder farmers.
In Alagoas, Brazil, Novus is working with more than 1,000 family farmers to create sustainable farming systems.
GRI: 4.17
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Talent Sustainability
Meeting the global demand for food in the future will require people who are willing to dedicate their careers to the agriculture industry. At Novus, we work to attract and develop new talent, not only for our company, but for the benefit and advancement of the entire industry. Novus Scholar Programs Through various Novus Scholar Programs, we award scholarships to support the research and work of students and professors who are and will be industry leaders in agriculture. In addition to funding their studies, we also seek to build relationships with these Scholars and offer opportunities for many of the participants to work with us as interns in our research facilities around the world. We can learn from their research and they can benefit from our industry experience and relationships. In some cases, these Scholars become Novus employees, customers or suppliers. Goals for the program include: Encourage students in animal agriculture to develop strong research programs and gain an international perspective on agriculture. Build relationships with professors and students who are and will be the future leaders in agriculture. Establish a technical collaboration network to help us develop solutions relevant to our customers in diverse regions of the world.
India
Our partnership with Bombay Veterinary College (www.mafsu.in) links the scientific talents of Novus with one of the most established veterinary institutions in Asia. This provides an important opportunity for collaboration that is mutually beneficial, while encouraging the continued growth of agriculture-related studies in the region.
Korea
In 2008, we established a partnership with Pukyong National University's (PKNU) College of Fisheries Sciences (www.pknu.ac.kr) in Busan, Korea. Through this program with PKNU, we are supporting aquaculture students who have demonstrated promise in areas associated with nutrition, metabolism, growth, development, health and disease in aquaculture.
Mozambique
Last year, we became the first private-sector company to sponsor the African Women in Agricultural Research and Development (AWARD) program (www.genderdiversity.cgiar.org), which seeks to advance the careers of African women. We invite you to learn more about the AWARD program in the Civil Society section, later in this report.
Thailand
In 2009, we established a relationship with the Department of Animal Science, Faculty of Agriculture at Kasetsart University (www.ku.ac.th) in Thailand, where we award a scholarship to a student working on a Masters degree in Poultry Nutrition. This student is also given the opportunity to participate in an internship at our research headquarters.
Vietnam
In 2008, we funded the construction of a 1,000-square-meter Aqua Research Facility at Nong Lam University Campus in Ho Chi Minh City. We fund two scholarships through this program.
United States
At the University of Arkansas (www.uark.edu), we have endowed a Chair in Poultry Science. The professor appointed to that Chair works with visiting scientists from other universities throughout the world and teaches graduatelevel courses related to nutrition and metabolism. At Auburn University (www.auburn.edu), we award a scholarship to a graduate student and provide that student with a paid internship at Novus.
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Career Development and Placement Programs We actively engage with organizations, industry and academia to support the career development of talented students and develop channels for recruitment.
The mission of the Missouri Colleges Fund is to acquire resources to help educate students in member private liberal-arts colleges and universities, comprised of a 16-school network. Novus has established science-specific scholarships within the fund. During our two years of program participation, Novus has hosted a Science Day for scholarship participants. On Science Day, students are introduced to a variety of people working in diverse occupations across our organization and other participating area companies.
Meds & Food for Kids (MFK) is a St. Louis based non-profit organization with operations in Haiti since 2003. In response to the earthquake in Haiti, Novus partnered with MFK to help raise donations and distribute Medika Mamba, a fortified, peanut-butter-based, ready-to-use-therapeutic food (RUTF) to people left hungry after the disaster. For more information on MFK, visit www.mfkhaiti.org
Novus has aligned with Texas A&Ms agribusiness department to establish a joint career placement program. Over the past year, Novus has collaborated with Texas A&M to provide full-time employment to five graduating students.
Heifer International helps people change their lives from a state of hunger and poverty into self-reliance and hope. They provide gifts of livestock and training, helping families improve their nutrition and generate income in sustainable ways. For more information on Heifer International, visit www.Heifer.org
IFAMAs mission is achieved through providing members with multiple vehicles for information sharing, knowledge advancement, discussion and debate, networking and career development. IFAMA has established a global network of academic institutions that have agribusiness or related departments. Students are invited to present research about agriculture technology and best practice management at IFAMA conferences around the world.
Novus employees went the extra mile for our 2009 United Way Annual Giving Campaign. We achieved 110% of our goal with an overall participation rate of 87%, with 100% participation from our Little Rock employees. Novus employees volunteered their time to work at the St. Louis Area Food Bank, where they packaged more than 6,000 meals for the hungry. For more information on the United Way, visit www.unitedway.org
The Arts and Education Council (AEC), through donations, supports more than 80 non-profit arts and arts education organizations. Every year, the funds generated by the AEC provide more than five million children and adults the opportunity to experience music, theater, dance, film, literary arts, visual arts and outreach programs. For more information on the AEC, visit www.keeparthappening.org For a complete listing of Novus Matching Gift Program recipients, visit page 81 in the Appendix.
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Community
Our Vision for sustainability is global. But in our global reach, we touch specific cities and countries in which we live and work. Reflecting our triple bottom line, our employees engage with their communities at multiple levelssocial, economic and environmental (SEE). Novus supports employees engagement in their communities through many programs. Civil Society Novus collaborates with partners in civil society whose work aligns with the Novus Vision, Mission and Core Values. We invite you to read about some of these dynamic and collaborative relationships over the next few pages.
must leave school or the workforce, and are not in a position to return until later in life. Because the AWARD program has no age restriction, participating women have the opportunity to re-engage in and add value to the industry in meaningful ways.
My goal is to help Mozambiques farmers produce more poultry at a lower cost, raising incomes and increasing food security.
Mena dos Anjos, Novus AWARD Fellow We have committed ourselves over the next five years to ten externships, through which African women will work at our headquarters, another Novus facility or with one of our partner organizations such as the Missouri Botanical Garden. Participants will receive mentoring to help them move to the next level in their education. In October 2009, we welcomed our first AWARD research fellow, Mena dos Anjos, a Senior Lecturer in Animal Nutrition at the University of Mondlane in Mozambique. Mena holds a Master of Science degree in Veterinary Medicine with a specialization in poultry production and health from the Royal Veterinary and Agricultural University in Denmark. Mozambique is heavily dependent on poultry production. In fact, more than 70% of rural families in Mozambique keep chickens, which contribute to income and food security. The cost of poultry feed is a challenge for the people of Mozambique. Mena is working at Novus on a project to enhance locally available dried peas to create a more feasible and low-cost feed alternative for poultry. She is collaborating with researchers at Novus to understand the nutritional balance requirements when utilizing these locally available ingredients. When she completes her program here, Mena will return to her academic position in Mozambique. She will try to attract more young people from Mozambique to animal nutrition research, and she will apply the research she worked on at Novus. Her goal is to help Mozambiques farmers produce more poultry at lower cost, raising incomes and increasing food security. For more information on AWARD, visit www.genderdiversity.cgiar.org
Economic opportunity for women in Africa is a matter of social justice. Almost 80% of the agricultural labor force in Africa is female, but only 10% to 15% of the continents agricultural students are female. Last year, Novus became the first private-sector company in the United States to sponsor the African Women in Agricultural Research and Development (AWARD) program and the first organization to host a U.S. placement of an AWARD fellow. AWARD seeks to advance the careers of African women in agricultural research. There is no age restriction for the AWARD program. This is important because the majority of similar programs restrict participation to women 35 years or younger in age. Due to family responsibilities, many African women
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milk dependency of calves and enables farmers to bring milk to market. Additionally, farmers gain the ability to raise healthier and more productive replacement heifers. To improve cattle nutrition in Uganda, our scientists developed a dry season supplement that also adds essential minerals and feed quality ingredients to locally available protein and energy sources. We are planning to test both programs in additional regions of Africa in the near future.
Every country in Africa has unique livestock industry challenges that require specific solutions. In Kenya, a challenge for farmers is calf mortality. A cow provides a single source of income for many Kenyan families. If a familys calf lives, it can support them in achieving a sustainable income. Calf mortality impairs the farmers' ability to produce a steady income from selling dairy cows and supplying their local communities with dairy products. Ugandan farmers struggle to provide adequate nutrition to their cattle during the dry season. In Uganda, longer dry seasons and the increased use of marginal land are compromising health and reducing the production of cattle. In 2009, a team from Novus traveled to Africa to identify the priorities in these two countries and to determine how we could contribute. The Novus team met with officials of the Nairobi-based ILRI and East Africa Dairy Development (established by Heifer International). After investing time in both countries to understand the challenges and circumstances, we engaged our R&D scientists to work towards solutions. To address calf mortality in Kenya, we developed a nutritionally complete diet that reduces
In 2009, our President and CEO, Thad Simons, was elected to the Board of the Corporate Council on Africa, which has the goal of improving social and economic conditions for the people of Africa by strengthening business relationships between African countries and the United States. It is critical that we empower African nations and farmers, through knowledge sharing and technology, to build the capacity to meet their own requirements for food. The continent of Africas demand for food is expected to greatly increase in the first half of this century. Our involvement with the Corporate Council on Africa is one way to collaborate with African farmers and facilitate an exchange of knowledge. In the fall of 2009, Novus chaired two panels at the Corporate Council on Africas Biennial Summit. The panelists discussed aquaculture and the role of education and technology in agriculture. For more information about the CCA, visit www.africacncl.org
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The World Agricultural Forum (WAF) is a policy neutral and internationally inclusive agriculture and agribusiness-driven forum that brings together leaders from private sectors with policy makers and key policy influencers to focus on providing food, fuel, fiber and water to the worlds growing population. For more information about the WAF, visit www.worldagforum.org
More than 75 leaders in agriculture from 19 countries attended the first World Agricultural Forum Asia Regional Roundtable, Balancing the Agricultural Bottom Line.
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OASIS Helps Protect the Red-Necked Ostrich The largest of three species in the ostrich family, the red-necked ostrich was once abundant in Niger. Like other ostriches, this species population numbers are declining due to human environmental interference and predation. In an attempt to rescue the red-necked ostrich from becoming an endangered species, Novus developed a plan with the Saint Louis Zoos Saharan Wildlife Recovery Center. The Zoos Recovery Center is a world leader in combating the extinction of Saharan wildlife. Upon hatching at the Wildlife Recovery Center, red-necked ostriches often face a long trip to the facility where they will grow to adulthood. During this trip, nutrition and hydration are frequently not available for the hatchling. Our OASIS hatchling supplement, originally developed for domestic fowl, is a hydrated nutritional formulation that supports this critical phase of life. OASIS is used during transport from the hatchery to farms to maintain gut health and hydration. Novus is providing OASIS to the Zoos Saharan Wildlife Recovery Center. OASIS will benefit the red-necked ostrich, as it has done for chickens, turkeys and ducks in farm environments around the world.
Our Arenus division has partnered with the Saint Louis Zoos Orthwein Animal Nutrition Center to study the effects of Arenuss structural health supplement, STEADFAST. The partnership, in the form of a grant, placed a graduate student from the University of Missouri Columbia with the Saint Louis Zoo for a two-year period. The primary focus of the research is assessing the effects of STEADFAST on enhancing joint health in various mammals. The importance of animal nutrition and its effects on treating and/or preventing health issues is a new undertaking in zoos. The Saint Louis Zoo is a world-class facility and one of only a few in the United States that staffs an animal nutritionist and maintains a dedicated nutrition center. For more information about the Saint Louis Zoo, visit www.stlzoo.org
GRI: 4.12
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Industry Associations
Recognition
Novus is very proud of the meaningful awards and recognition we have received over the past year. Below are a few examples:
We recognize our responsibility to collaborate and cooperate with other stakeholders in our industry. We participate in a range of industry associations as a highly effective way to integrate our Vision into the mainstream of modern agriculture.
Below are a few examples of industry associations that Novus employees participate in:
HEROES OF THE PLANET SUSTAINABLE EMPLOYEE PROGRAMS Awarded to Thad Simons St. Louis Business Journal
In 2009, we proudly became the first company in the feed-ingredient industry to become a member of the Sustainable Agricultural Initiative (SAI) Platform. The food industry established this organization to support agricultural practices and production systems that preserve and promote the efficient use of resources.
The Center for Food Integrity (CFI) was established in 2007 to increase consumer trust and confidence in the contemporary U.S. food system. Its primary mission is to promote dialogue, model best practices, address issues that are important to consumers and serve as a resource for accurate, balanced information about the U.S. food system. TOP 50 PLACES TO WORK Awarded to Novus The American Feed Industry Association (AFIA) is the worlds largest organization solely devoted to representing the business, legislative and regulatory interests of the animal feed industry and its suppliers. The program establishes comprehensive standards of excellence that go beyond existing regulations to maximize food and feed safety. RESPONSIBLE CARE ENERGY EFFICIENCY AWARD Awarded to Novus
The United States Soybean Export Council (USSEC) represents U.S.-grown soybeans, soybean meal, IP soybeans and soy protein isolates to international markets. USSEC travels the world with partner companies like Novus, educating farmers on the advantages of soybean inclusion into the rations for their animals. For a complete listing of Novus industry association memberships, please visit page 80 in the Appendix.
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Economic
The basic definition of sustainability is to keep a process or action going. Healthy businesses provide livelihoods for families, technologies that improve the quality of our lives and the framework for innovation that will be required to sustain our growing world. Core to our Vision is supporting our customers with products and services that improve and create efficiencies in their business operations. In the fabric of economic sustainability, we are all interwoven, and the strength of one is dependent on the strength of the entire community.
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Collaborating to Meet Demand Responsibly In business, innovation is where the commercial meets the creative. Within the Novus framework of innovation, we generate ideas that can be commercialized profitably. We believe that innovation requires well-rounded, collaborative input across our organization and with customers and partners outside of Novus. For this reason, we have created an innovation structure that integrates the competencies and ideas of both internal and external sources. We believe that varied perceptions bring value and honesty to the innovation process. Value chain synergies are central to meeting the global food demands of the future. Through joint R&D, we combine our core capabilities to bring new products to market. New product and process technologies are essential to our future as we work to fulfill a dramatically higher demand for food using virtually the same natural resources we have today. The Novus Idea Network relies on collaboration from internal and external sources. The Novus Idea Network
Discussion Forums
Recruiting Associations
Customers
Internal Sources
ERP
CSR
External Sources
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Value Chain of Food Production Novus and our products are part of the value chain of food production and we take this responsibility very seriously. We share this responsibility and stewardship with the partners we choose. At Novus, we select partners whose business practices align with our Mission, Vision and Core Values. Through the Novus Quality System (NQS), we demand accountability and transparency from ourselves and our partners. We choose our partners based on mutual alignment of best practices including: Traceability Quality Assurance Food Safety Practices Employee Standards and Safety Animal Well-Being Todays consumers are more aware of and engaged in the food they eat, from both nutritional and social points of view. Greater awareness is driving new standards of production and the opportunity for education. In our product development process, we focus on supporting our customers and consumers in this evolving industry. Localized Product Development with Customers Working with our customers at the local level is key to innovation at Novus. It is the reason we work directly in so many different countries. In all regions where we conduct business, we hire employees who have the education, knowledge and local expertise to support our customers and collaborate to meet their needs. By working locally, we are able to understand how our products can be applied effectively in varying circumstancesranging from multi-national corporations in Brazil to smallholder farms in Africa. Knowledge Sharing and Transfer Central to our product development process is the idea that creating best practices and successful models that others can replicate extends the power of innovation. We want the work we do through our innovation processincluding research and developmentto be applied as widely as possible. We are committed to creating scientifically-based innovations that promote Health through Nutrition. We feel a deep responsibility to share the knowledge we gain and the technology we develop. Through transferring knowledge, our goal is to empower people to improve agricultural practices in their local communities. This commitment is tangibly expressed in our direct and local approach with our customers, the way we collaborate with partners and through the collaborative relationships we build with nongovernmental organizations (NGOs), students and professors.
Producer
Processor
Distributor
Wholesaler
Retailer
Consumer
Novus Quality System The Novus Quality System encompasses a collection of documentation and process surrounding management review, integrity, training, product development and manufacture of products. The Novus Quality System assures that our customers around the world are sold products in which they can be confident. As part of this system, raw material specifications, manufacturing specifications and sales specifications ensure that all manufacturing plants adhere to the parameters we set forth. The manufacturing specifications may include product appearance, particle size, moisture, uniformity and active ingredients. The sales specifications summarize the functionality of the product and provide the customer with the characteristics that Novus will guarantee about the product. As an example, from the beginning of the manufacturing process, Novus develops raw material specifications. We conduct a minor impurities analysis to ensure that raw materials are free of undesirable substances, such as heavy metals. Manufacturing specifications assure compliance to the sales specifications, determined through input provided by Novus Marketing and Sales. The product can then be delivered to the customer with a guaranteed functionality. These specifications benefit Novus and our customers. Our advantage is a thorough understanding of the critical points along the continuum of manufacturing-to-product delivery and usage.
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University Research Collaboration Novus develops mutually beneficial partnerships with university research facilities around the world. Through these initiatives, researchers and students are able to pursue the expansion of knowledge and the application of that knowledge to advance agriculture. These alliances allow us to interact with businesses and to take our research to local field conditions to benefit our customers. In the dairy region of Argentina, we worked with university extension agents to evaluate our ruminant nutrition programs under field conditions. The extension agents put us in contact with a farmer whose herd was experiencing leg problems and milk fat challenges. Through this partnership, we were able to develop a program with our MFP and AGRADO products to improve hoof health and milk fat production. The assistance of the university and its extension agents allowed us to share our knowledge, products and research under local conditions for the benefit of a farmer. These findings were then presented at a scientific meeting for the benefit of researchers worldwide. We also share our analytical, experimental design, equipment and laboratory design expertise with our university collaborators. In many cases, we might assist with upgrading a university feeding facility or help them design new facilities. In Thailand, the facility at Kasetsart University was designed to replicate a commercial broiler setting. In Vietnam, we helped Nong Lam University officials plan a new aquaculture center to conduct research with Pangasius, a genus of catfish. The goal of these projects is to help the universities better conduct significant research initiatives using local feedstuffs and Novus products to increase production and animal health. Our findings strongly suggest that university-industry research relationships benefit academic institutions and customers. In cooperation with Bombay Veterinary College in India, we are conducting a twoyear research project on chelated trace mineral nutrition in poultry production. We are transferring the trace mineral knowledge we have established in the United States to broiler and layer customers in India. In the United States, we have worked with North Carolina State University and poultry producers to determine the effects of trace mineral nutrition on bone development and strength. These trials were developed in response to direct concerns from the industry to solve an economic and animal welfare issue. For more than ten years, we have worked with the University of Missouri Columbia. This relationship has helped us discover facilities that mimic field conditions to collect reliable data.
Each summer, Dr. Chris Knight travels to China to select the new, annual class of Novus Graduate Scholars.
Our current collaborative university projects do not just include research initiatives. Many times, we are simply assisting universities with establishing documentation or training standards. It is essential that the research community maintain controls and procedures to ensure quality data is obtained and shared with our industry for the benefit of producers.
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Amino Acids
Methionine
Methionine is an essential amino acid. Very simply stated, animals will be limited in their growth without proper amounts of methionine. It is the first limiting amino acid in poultry and the second limiting amino acid in ruminants and pigs. To meet the growing demand for animal protein, it is critical that we improve the conversion of the proteins in animal feed to meat. Amino acids play an important role in improving this efficiency in the animal. ALIMET contains 88% HMTBa, a precursor to methionine that is 100% available to the animal. By this, we mean that 100% of the HMTBa in ALIMET will be converted to methionine and available to the animal. This results in greater productivity for the producer. ALIMET and its sister products MHA, MERA Met and MFP contain a precursor to methionine, an essential amino acid. Amino acids are the building blocks of protein, which make feed more nutritious and efficient.
ALIMET liquid feed supplement contains 88% HMTBa, a precursor to methionine, and delivers an organic acid effect, resulting in better performance and reduced nitrogen excretions.
MHA feed supplement, a dry granular powder, is a leading source of methionine in premixes and farm feed mills.
MFP
MERA Met is a source of methionine for specific use in aquaculture diets.
TM
MFP is a source of methionine for specific use in beef and dairy cattle diets.
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Enzymes
All animals naturally produce enzymes to break down major nutrients, including protein. Through a technology partnership with BioResource International, Inc. (BRI), Novus has introduced CIBENZA, a family of enzymes that provide producers with an excellent source of versatile and pellet stable solutions. CIBENZA enzymes help producers achieve improved animal performance and greater flexibility in dietary formulations. Producers must maximize their return on animal feed investments. Less-than-optimal digestibility results in wasted feed and wasted money. CIBENZA enzymes are ideal for corn/soy diets and alternative ingredients, such as cassava, sorghum, palm and copra. We produce CIBENZA for poultry, pork, aquaculture and rendering. CIBENZA DP100 is a heat-stable protease that improves dietary protein digestibility for optimal animal performance. CIBENZA DP100 usage can reduce ration costs by lowering protein levels in the feed up to 10% without sacrificing animal performance, while lowering nitrogen excretion into the environment. CIBENZA DE200 is a heat-stable mannanase that improves energy availability. CIBENZA DE200 allows producers to save on feed costs and increase formulation flexibility through the use of a variety of raw materials in feed rations. CIBENZA PHOS is a heat-stable phytase. CIBENZA PHOS enables animals to obtain more phosphorus from feed, resulting in less phosphorous being emitted into the environment. CIBENZA CSM is a blend of enzymes designed by Novus to work with local feedstuffs. CIBENZA CSM is blended locally at Novus manufacturing facilities in Mexico and China. CIBENZA IND900 is a heat-stable protease enzyme for feather meal processing. CIBENZA IND900 allows customers to create a high-quality feed product using less energy.
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The MINTREX product family offers chelated trace mineral technology for aquaculture, poultry, pork, beef, dairy and pets. MINTREX combines HMTBa with an essential trace mineral in a two-to-one chelated molecule. These products are available in customized blends. ZORIEN SeY is a special strain of yeast, Saccharomyces cerevisiae, that is enriched with an organic form of selenium, which is needed in trace amounts for cellular function. ZORIEN SeY delivers significant health benefits to aquaculture, poultry, pork, beef and dairy.
TM
GLYTREX provides the benefits of chelated trace mineral nutrition, including gut stability and increased absorption. GLYTREX is available in customized blends. Over the past year, Novus acquired the Animal Nutrition Division of Albion Laboratories, Inc. Products from the acquisition, including the MAAC chelated trace mineral product line, will align with our GLYTREX family. The acquisition furthers our commitment to continually offer a broader range of products to address the needs of our customers.
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Return on Investment
Consider the example of farmers seeking to ensure their poultrys need for zinc (Zn). Symptoms of zinc deficiency can include a suppressed immune system, poor feathering and dermatitis. Inorganic zinc sulphate is an inexpensive, though not particularly bioavailable, form of mineral supplementation. Farmers might need to feed their poultry 100 parts per million of inorganic zinc sulphate. By substituting MINTREX Zn, a highly available chelated form of the mineral, farmers can feed their poultry 32 parts per million, improving the animals health and performance while reducing waste. Inorganic Trace Minerals
Chelated trace mineral technology enables farmers to reduce their levels of mineral inclusionsaving money and reducing waste to the environment.
The economic return on investment of our chelated trace minerals can be as high as 5:1 for farmers. But these returns cannot be counted only in dollars. They also translate to lower quantities of zinc excretions into the environment. Deposits of zinc, copper and other trace mineral metals are all reduced by MINTREX. This results in reduced volumes of heavy metals being deposited into our soil.
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Antioxidants
Novus antioxidant products are available in two categories: feed preservatives and dietary supplements. Feed Preservative Antioxidants Oxidation of animal feed and feedstuffs can result in rancidity of fats and destruction of vitamins A, D, E and amino acids. If unchecked, a single degraded ration ingredient can lead to lower animal feed consumption and nutrient deficiencies. Novus products, including SANTOQUIN, FEEDGUARD and NATUGUARD feed preservatives, protect the nutritional value of feed.
NA TU
SANTOQUIN feed preservative provides unsurpassed protection from oxidative rancidity. Oxidation decreases the value of unprotected ingredients as soon as they are produced and continues to degrade nutrients over time. SANTOQUIN protects feed ingredients and prolongs nutritional shelf life in complete feed. GRI: 2.2, 2.7 and 4.17 FEEDGUARD feed preservative is a dry, free-flowing product for use in dry mixes. It is a proprietary blend of antioxidants that is used to preserve fats, oils, vitamins and pigments contained in dry animal feed. NATUGUARD feed preservative is a natural-based antioxidant used to preserve fats, oils, vitamins and pigments contained in animal feed. The ratios of active antioxidants in NATUGUARD have been developed to provide optimal performance at the best cost possible.
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Dietary Antioxidants Dietary antioxidants for animals promote healthier immune systems and tissues by capturing free radicals and optimizing oxidative balance. By reducing the amount of energy required to fight disease and improving health, dietary antioxidants enable animals to grow more productively.
The AGRADO product family contains dietary antioxidants that have been reviewed and approved by the FDA for use in total mixed rations of lactating dairy cows. In addition to being beneficial to the dairy market, AGRADO products offer benefits for cattle and pigs. AGRADO products have superior efficacy against both animal and plant-sourced fats in the total mixed ration, protect key ingredients from oxidation and reduce harmful free radical formation that can negatively affect health and productivity.
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Feed Quality
Novuss solutions for feed quality protect the value of high-quality ingredients to ensure optimal animal health, performance and improved feed conversion rates. The Novus family of products for feed quality includes SOLIS, ZORIEN MOS, PRO-STABIL and CAPTURA.
SOLIS is an anti-caking agent approved for use in animal feed. When properly mixed, SOLIS has the ability to target the challenges of fungal metabolites. ZORIEN MOS is a prebiotic additive containing mannanoligosaccharides and beta-glucans, derived from a selected strain of Saccharomyces cerevisiae yeast cell wall for use in production livestock. PRO-STABIL is available as a granulated or liquid preservative premix. It contains propionic acid as its main agent and is used in the preservation and stabilization of compound feed and feed materials. CAPTURA is a free-flowing premixture that reduces the effects of moisture and toxins in animal feed.
MOS
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SURFACE is a liquid preservation premixture that offers multiple economic and environmental benefits during the production of pelleted feed. SURFACE exerts an emulsifier action that increases pellet output, improves conditioning, enhances the durability of the pelleted feed and improves the overall quality of the final feed.
IDEA provides a farm-level tool for our customers to test the quality of their feed ingredients and to determine the protein amino acid digestibility. Additionally, IDEA is used to test the quality and safety of pet food ingredients.
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Salmonella Prevention
Gut environment modifiers (GEMs) help control and prevent harmful agents, such as bacteria, from proliferating in the small intestines of animals. Bacteria, such as Salmonella, can have a negative effect on animal health, ultimately harming production and possibly human health. The European Food Safety Authority (EFSA) has assessed the public health risks from Salmonella in pigs. The EFSA assessment suggests that pigs and pig meat may be responsible for 10% to 20% of all human cases of salmonellosis in the EU. Effectively controlling Salmonella at the farm level can have a direct impact on the food chain and reduce the number of related human illnesses. When Salmonella proliferate in the intestine, it becomes difficult for animals to absorb nutrients. This results in poor health and performance. Through the various GEMLine products and programs we offer, such as ACTIVATE WD, farmers can manage a wide variety of challenges, such as the transmission of Salmonella in pigs. ACTIVATE WD is for use in the drinking water of pigs, and for the control and destruction of environmental pathogens.
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Biologicals
ADVENT is a vaccine against coccidiosis, one of the greatest threats to poultry. The product is sprayed onto broiler chicks shortly after they are hatched, providing protection through a single, antibiotic-free application.
Early Nutrition
Early Nutrition is fundamental to the overall health of chicks and piglets. OASIS hatchling supplement is a hydrated nutritional formulation specially designed for the first days of life for hatchling poultry. OASIS is used during transport from the hatchery to farms or as a top dress application on starter feed.
Enrichment
In recent years, people have become more concerned about how food choices impact their health and well-being. In late 2007, Novus began marketing DHA GOLD to animal producers. DHA is an essential component for many cells in the human body and studies have shown that a DHA-rich diet can lead to increased brain, eye and heart health. Including DHA GOLD in animal feed is a safe and effective way to nutritionally enhance the DHA content of meat and eggs. When included in livestock diets, DHA has health benefits to animals and ultimately, enriches the food products. Enrichment of food products is very important in emerging markets where diets are often lacking in balanced nutrition. Providing supplementation through eggs provides nutrition and can be less expensive than through traditional tablets. Other nutrients that can be supplemented through egg or protein enrichment include Zinc and Selenium. DHA GOLD is an all-natural, vegetarian source of the omega-3 fatty acid docosahexaenoic acid (DHA).
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NPN is a division of NNB dedicated to providing nutritional ingredient solutions to the pet food manufacturing industry. Products offered to manufacturers include the Novus line of chelated trace minerals, antioxidants, amino acids, prebiotics, enzymes, yeasts and protein quality testing.
Arenus is a premier provider of innovative health and nutrition products, offered direct to consumers, for dogs, horses, ornamental fish and birds. The division is an audited member of the National Animal Supplement Council (NASC), an industry group dedicated to protecting the health of companion animals and horses. Based on science, Arenus products are developed with the input of nutritionists, veterinarians and other animal professionals.
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Stratum Nutrition offers a portfolio of branded, value-added ingredients for human health applications. Stratum focuses on growing a portfolio of specialty and functional ingredients that target business-to-business manufacturers of foods, beverages and dietary supplements. Stratum Nutrition has entered into strategic partnerships with two ingredient manufacturers, KitoZyme and ESM Technologies. KitoZyme produces a new vegetarian ingredient, chitin-glucan, which supports arterial and overall heart health. Through a technology partnership with ESM Technologies, Stratum is working to accelerate the global use of the ingredient Natural Eggshell Membrane (NEM) in supplements, functional foods and beverages. NEM represents a unique and safe technology that fits a key target health platform for usjoint and bone health. Below are examples of products from the Stratum Nutrition product family: ESC is a naturally pure calcium source. It consists of a natural form of calcium carbonate, which the body needs to maintain healthy bone mineral density. NEM is a natural eggshell membrane ingredient clinically proven to support joint comfort and flexibility. NEM is composed of naturally occurring glycosaminoglycans, including chondroitin and hyaluronic acid, as well as collagen and other beneficial proteins essential for joint health. ARTINIA is a high-purity natural ingredient that features the benefits of soluble and insoluble fibers to support the bodys natural defenses against oxidized-LDL cholesterol. To learn more about Stratum Nutrition, visit www.stratumnutrition.com
Vitamin Angels is dedicated to reducing child mortality worldwide by advancing the availability, access and use of essential nutrients to newborns, infants and children under five. Through our partnership with Vitamin Angels, Novus is able to help improve the quality of life for children. We have committed to making significant donations in the way of monetary funds, as well as the raw material zinc. Through our partnership, Vitamin Angels is establishing a new zinc program that will provide relief for diarrhea, one of the most widespread and deadly health problems affecting children under the age of five around the world. The Vitamin Angels pilot program will be delivered to Sauri, Dertu and Eldoret, Kenya through the infrastructure of Millennium Villages. The goal of Millennium Villages is to empower communities to lead in their own development. To ensure success, participants must give a significant amount of their time, skills and resources. This large-scale humanitarian project, coordinated through Vitamin Angels Thrive to Five initiative, was launched during the groups 2009 Celebration of Angels event. The launch of the program coincided with Novuss launch of our new Stratum Nutrition division, which focuses on human Health through Nutrition. This partnership supports Novuss decision to expand the scope of its solutions to include ingredients and technologies that directly support human nutritionhealthy ingredients that are put into human supplements, beverages and foods. For more information about Vitamin Angels and Millennium Villages, visit www.vitaminangels.org www.millenniumvillages.org
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Programs
The challenge of global sustainability is complex and involves multiple, inter-related issues. We look at our customers business challenges from an integrated perspective, recognizing that it is an oversimplification to expect a single product to solve a multi-faceted problem. Our customers businesses are impacted by social, economic and environmental (SEE) factors. We look at health and nutrition issues from a holistic perspective, recognizing that only an integrated approach will make a clear, sustainable economic difference to our customers. We provide complete solutions that deliver long-term Health through Nutrition. Our goal at Novus is to help our customers treat systemic issues, not symptoms. Many times animals may experience specific problems, but there can be larger underlying issues that when addressed, will restore and sustain health for the long term. Novus is uniquely positioned to help our customers fortify and protect animal health. In many cases our products proactively prevent health problems before they begin. Based on an understanding of our customers needs and the factors that drive our market today, we approach the agriculture industry through four major program categories: Animal Well-Being Performance Food Safety Environmental GRI: 4.17
Animal Well-Being
From a business perspective, it is in the best interest of farmers to do everything they can to ensure that their animals have the best nutrition, environmental conditions and care. Animals are more productive when they are healthy. Health through Nutrition is central to animal well-being. Healthy animals are happy animals and Novus has been working to support the well-being of animals for nearly two decades. Many programs specifically focused on animal wellbeing have been designed based on our broad product portfolio. Below are a few examples: Joint Health for Horses Strenuous activities like training and competition, along with age, can erode horses joints over time, causing aches, pains and reduced mobility. STEADFAST EQUINE by Arenus is a joint health supplement specifically designed to support performance and longevity. While many equine joint health products may be useful in addressing a single joint-specific issue, STEADFAST EQUINE takes a multi-faceted program approach to supporting the horses entire joint systems. Not only does it provide essential components to joints, but also to bones, tendons and ligaments. Hoof Health for Cattle Hoof health is key to keeping cows happy and healthy. Environment and nutrition both play a critical role in hoof health. Nutritional deficiencies can negatively impact hoof health and cow mobility. Through nutritional programs including chelated trace minerals, we help to improve the mineral status in the animals and strengthen hoof health, keeping cows healthy and mobile. Footpad Health for Poultry Footpad lesions are a common issue with poultry and can cause discomfort for birds. Novus has developed a program to help eliminate some of the most common causes of footpad dermatitis. Highly bioavailable MINTREX chelated trace minerals strengthen the soles of the feet, making them more resistant to footpad issues. Proper amino acid nutrition with ALIMET enables maximum tissue integrity and CIBENZA enzymes assist in aggressively reducing protein and nitrogen excretions to reduce wet or caked litter conditions.
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Performance
For the livestock industry, the term "performance" relates to an animal achieving an optimal state of health and growing to genetic potential. A strategic approach to nutrition is critical for farmers working to keep their livestock healthy and productive. Novus works, through nutritional strategies, to help farmers achieve the highest performance possible. Examples of Novuss nutritional strategies to enhance performance include: Optimizing Feed Utilization Minimizing Structural Health Challenges Maximizing Reproductive Health Reducing Feed-Borne Pathogens Supporting Optimal Digestive Health Preventing and Eliminating Feed Toxins
GRI: 4.17
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Food Safety
Food Safety is extremely complex because there are many points along the farm-to-table continuum. At Novus, we have developed On-Farm Prevention Management Programs, which enable our customers to manage all points of potential pathogen introduction. Our programs combine management best practices with preventative, nutritional strategies. Novus offers many solutions to support Food Safety including: Pathogen Prevention Mycotoxin Management Water Quality Support Best Practice Consulting As part of the value chain of food production, we take our role and responsibility very seriously. We implement quality assurance programs and maintain traceability for all the products we produce.
Mycotoxins vary throughout the world, with different regions experiencing different mycotoxin-related challenges. The highest risk to human health is in emerging markets, where pasteurization is not yet widely adopted. In these areas, the aflatoxin M1 is of widespread concern. When cattle consume aflatoxin, the milk they produce quickly becomes contaminated with M1, which can ultimately have devastating health effectsincluding death of animals and of people who consume their products. African nations, including Kenya, Senegal and Somalia, have experienced aflatoxin contaminations, which have claimed thousands of human lives. In response to the global problem of mycotoxins, more than 100 countries have enacted legislation to control the amount of mycotoxins in animal feed, as well as in food for human consumption. Novus products SOLIS and CAPTURA are anti-caking agents. These products bond with mycotoxins during the digestive processes of animals and safely carry them out through their waste.
GRI: 4.17
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Food and waterborne diseases are leading causes of illness and death in less developed countries, killing an estimated 2.2 million people annually, most of whom are children.
World Health Organization, 2010
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Environmental
The agriculture industry plays a unique role in the global effort to protect and preserve the environment. It is our responsibility to feed a large majority of the world. In that respect, agricultures relatively small size has a disproportionately large impact on humanity and the environment. We face the challenge of working with our natural resources to meet the worlds increasing demand for food in a way that does not exhaust the environments capacity to produce what we need. We also have the responsibility of utilizing natural resources efficiently, maximizing productivity, while taking care to minimize waste. The environmental challenge of sustainability is largely dependent upon how we manage social and economic issuesas individuals, as companies and as members of our local communities.
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Products
Novus products are geared towards maximizing output and minimizing waste. Leveraging a broad product portfolio, we take a comprehensive approach to optimize the health of animals. This approach maximizes the farmers output, fortifies livestock against disease and ultimately leads to the production of higher-quality food. Novuss Health through Nutrition programs support healthy, happy animals who generate less waste into the environment and are more productive.
When comparing all sources of protein, poultry and fish are the most efficient, economical sources on earth. This is because there is a lower production cost per kilogram (kg) and therefore a lower consumer price point. Feed costs impact both the demand for and production of protein. When comparing the various segments of the protein industry, the poultry segment is less impacted by rising raw material costs due to efficiency of feed conversion. The table below provides a comparison of feed conversion efficiency between beef, pork, poultry, dairy and fish.
Average Feed-to-Protein Conversion Ratio
Feed (kg) Beef Pork Poultry Fish 5.0 3.0 2.0 1.7 Protein (kg) 1 1 1 1
Source: Novus Analysis, 2010
The level of industrialization of an operation directly and drastically impacts animal performance. The conversion numbers above apply to conventional farming environments. In emerging markets, where small farm operations are still common and widespread, conditions are variable, infrastructure can be limited, raw materials are often low quality and animal nutrition programs are not optimized due to lack of resources. Bringing best management practices, such as amino acid and enzyme balance in animal diets, to the farm level in emerging markets empowers farmers to increase their output, providing access to more food for their families and their communities. In these regions, chicken and fish hold great potential as sustainable sources of protein because the price of production is low by comparison, the production cycle is short and the protein output can be high when best practices are adopted. Farmers can have fast access to food to eat and take to market. In contrast, an investment in larger livestock, such as dairy cows, can represent the largest asset for families; and if the cows become sick or die, the effect can be devastating.
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Novuss largest plant operation, where we produce ALIMET, is located in Chocolate Bayou, Texas.
Commitment to Responsible Care Management Novus is certified as a Responsible Care Management System company. Responsible Care was launched in 1988 as the American Chemistry Councils (www.americanchemistry.com) comprehensive Environmental, Health, Safety and Security (EHS&S) performance improvement initiative. It incorporates progressive principles based on benchmarked best practices of leading private sector companies, initiatives developed through the Global Environmental Management Initiative, International Standards Organization and other bodies, and requirements of national regulatory authorities. Through our business, we strive to provide commercial solutions that promote reduced waste and the reuse and/or recycle of our natural resources. We are committed as an organization to offering sustainable programs to our industry and to achieving success through integrity. This commitment extends beyond social obligations or the imposed regulations of any one government or governing body, which may not yet reflect the higher standards by which we are driven.
KPI: EN3
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Inventory Management
Technology is another way we stay in close contact with our customers. One example is our patented Automated Inventory Management System (AIMS). Simply put, AIMS includes a sensor and a tank that supplies ALIMET to a feed mill or mixer. Novus monitors the level of the tank and automatically replenishes the bulk liquid supply as needed, creating business efficiencies for our customers. Novus pioneered vendor-managed inventory for feed industry bulk liquids in 1993. Since then, AIMS has improved supply chain efficiency and reduced environmental impact through the reduction of intermediate bulk container (IBC) and drum usage. In 2009, we upgraded the AIMS infrastructure. The new version of AIMS uses satellite communication with a submersible differential pressure sensor for level measurement. The new platform provides precise and dependable inventory readings, a back-up power supply and a local display of tank inventory. Novus customers can monitor their tank inventory levels and usage through the local display as well as on the Internet via Novus Premium Services at www.novusint.com
The AIMS inventory management system has improved supply chain efficiency and reduced environmental impact for Novus customers.
Novus monitors the ALIMET level in AIMS tanks and automatically replenishes the supply for customers as needed.
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Tough and flexible, Novus bags can be printed on with water-based inks that do not use solvents or heavy metals
Each year, Novus ships more than 2 million bags of product to customers.
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To help feed the world affordable, wholesome food and achieve a higher quality of life.
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Quality of Life
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Quality of Life
At Novus, we focus our sustainability efforts on improvements that matter, to make the most meaningful impact that we can. Our commitment begins with Novuss Mission, Vision and Core Values, where sustainability is embedded, and manifests itself in a systemic, longterm approach, based on our triple bottom line of social, economic and environmental (SEE) responsibility. Health through Nutrition is the purpose of our products and programs. The collective efforts of our employees are focused every day on achieving a higher quality of life, for animals and people, through nutrition. Our heritage and core strength is science and it will always be the bedrock from which we continuously innovate. Sustainable Culture, Global Vision At Novus, sustainability begins at the individual level and is evident in the daily activities of each employee. It is demonstrated in the way that employees put into practice our collective aspirations, Novuss Mission, Vision and Core Values. Our sustainable culture is based on minimized waste, collaboration and creating local solutions for our customers based on industry best practices. Sustainability in Practice We approach our work through the lens of sustainability and this is a requisite consideration at Novus. Every business project is cross-checked to ensure that our criteria for sustainabilitysocial, economic and environmental (SEE) are achieved. The Importance of Agriculture The importance of achieving our Vision comes full circle when you consider the growing demand for food on our planet. During the reporting timeframe of this report, the United Nations announced that by 2050 we will have to double our food production to meet global demand, using nearly the same water and arable land available today. Meeting this need can only be achieved through the technological innovation of companies like Novus. We are motivated to contribute to an agriculture industry that is equipped to provide nutritious, affordable food to people everywhere in the world and to do so through sustainable, responsible practices.
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GRI
Governance 4.1 4.2 4.3 4.4 4.5 Governance structure Chairman of board different than CEO Board structure How shareholders and employees provide recommendations to the board The Felt Fair Pay (FFP) system helps ensure all Novus employees are fairly compensated. FFP helps us account for country variables such as the amount of paid vacation and the number of work-months in a calendar year. Through FFP, we can be assured that all Novus employees are getting paid at essentially the same rateaccording to their role levelno matter where they are in the world. Processes to ensure conflict of interest avoidance Qualifications and expertise of governance body Internally developed statements and implementation status Procedures for governance oversight and management We have an organization in which every employee documents his or her key accountabilities in a Key Accountabilities Document (KAD). This starts with the CEO and cascades down through every single employee. These key accountabilities have a direct effect on Novuss short-term goals, three-year objectives, Critical Success Factors, and ultimately on our long-term strategy. Precautionary approach to principle Externally developed initiatives Memberships and associations List of stakeholder groups engaged by organization Basis for identifying stakeholders to engage Approach to stakeholder engagement Key topics and concerns for stakeholders Page 19 Page 75 Pages 19, 75 Page 19 This Page
Pages 6-7, 19 Pages 30-36 Pages 36, 80 Pages 36, 80 Page 32 Pages 9, 32 Pages 28-29, 31-34, 42-56
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EC2 EC6
EC7 Environment EN
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EN3
Novus is committed to operating in a way that recognizes that natural resources are finite. We incorporate renewable energy best practices in the operation of our headquarters building and animal feed blending plants throughout the world. We include our suppliers in industry logistics programs that achieve energy efficiency targets. Direct energy consumption by primary energy source
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EN16
Total direct and indirect greenhouse gas emissions by weight emissions of ozone-depleting substances by weight
Pages 20-21, 60 Direct energy consumption by primary energy source: Natural Gas - 39,349.60 MCF Electricity - 6,441,772.00 KWH Purchased Steam - 215.00 MMLB 19,378 metric tons
Pages 20-21, 60 Direct energy consumption by primary energy source: Natural Gas - 108,906.20 MCF Electricity - 14,099,224.00 KWH Purchased Steam - 473.00 MMLB 43,929 metric tons
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KPI
July 2008 - Dec. 2008 Jan. 2009 - Dec. 2009
Emissions of ozone-depleting substances by weight Total weight of waste by type and disposal method Liquid waste to local treatment Liquid waste to deep well Solid waste Air emissions Total number and volume of spills Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
0 181,970 metric tons 24,540 metric tons 157,264 metric tons 120 metric tons 47 metric tons 0 Pages 20-21, 61, 63
0 428,640 metric tons 48,755 metric tons 379,555 metric tons 234 metric tons 96 metric tons 0 Pages 20-21, 61, 63
Labor LA Integrity is one of five tenets that define the Vision of Novus. Human Resources policy articulates the framework for hiring and conditions of employment. Adhering to the highest standards of excellence with respect to interactions with all stakeholders, employees, suppliers, business partners, our owners and the public is embedded in Novus Internationals business strategy. Total workforce by employment type, employment contract and region Total number and rate of employee turnover by age group, gender and region Percentage of employees covered by collective bargaining agreements Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region Education, training, counseling, prevention and risk control programs in place to assist workforce members, their families, or community members regarding serious diseases This Page This Page
71
KPI
Human Rights HR Novus is committed to attracting and retaining a diverse workforce that delivers strong business results. We value individuals and support professional and personal development, especially in the areas of health and wellness. Novus, as a leading global company in health and nutrition, recognizes that flexibility and access to nutritious programs and products are critical to individual performance. Through Novuss providing of free access to healthy lunches and the fitness facility at Novus headquarters, employees can incorporate wellness into their daily routine. Novus also supports self-improvement through university degree and certification programs. In 2009, Novus had zero incidents of discrimination. Child labor: Novus does not condone or allow child labor or any forced or compulsory labor in any of its operations around the world. Forced or compulsory labor: Novus does not condone or allow child labor or any forced or compulsory labor in any of its operations around the world.
July 2008 - Dec. 2008
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SO2
Corruption, anti-competitive behavior and compliance are taken very seriously throughout Novus. In addition to an active Compliance Committee, employees are annually required to sign a Compliance form, acknowledging awareness of the importance of adherence to Novus regulations about corruption and anti-competitive behavior to continued employment. Percentage and total number of business units analyzed for risks related to corruption
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KPI
July 2008 - Dec. 2008 Jan. 2009 - Dec. 2009
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SO3
Percentage of employees trained in organizations anti-corruption policies and procedures: All new employees receive training in anti-corruption policies and procedures. Refresher courses and training are executed annually as appropriate based on managements recommendations. Novus employees are requested annually to positively affirm their compliance with Novus Integrity System, which contains Novuss anti-corruption policies and procedures; compliance in completion of this by all Novus staff globally is 99%. Public policy positions and participation in public policy development and lobbying Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
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PR3
Novus develops processes and product technology to improve the nutrition and health of animal livestock, companion animals and humans. Collaborating with local researchers and industry experts serves to reduce the risk from misuse of processes or product technology. Type of product and service information required by procedures, and percentages of significant products and services subject to such information requirements Programs for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion and sponsorship
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This Page
100% of our products are registered through government agencies throughout the world. Prior to external release, all advertising, marketing and public relations materials are reviewed by Novuss Regulatory and Legal departments. There were no fines.
100% of our products are registered through government agencies throughout the world. Prior to external release, all advertising, marketing and public relations materials are reviewed by Novuss Regulatory and Legal departments. There were no fines.
PR6
PR9
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services
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Appendix
2.5: Countries of Operation
CITY Buenos Aires Melbourne Sydney Brussels Porto Alegre So Paulo Beijing Shanghai Bogota London Nantes Gudensberg Hyderabad Jakarta Milano Tokyo Nairobi Kuala Lumpur Mexico City Manila Warsaw Moscow COUNTRY Argentina Australia Australia Belgium Brazil Brazil China China Colombia England France Germany India Indonesia Italy Japan Kenya Malaysia Mexico Philippines Poland Russia Singapore Seoul South Korea Madrid Spain Taipei Taiwan Bangkok Thailand Istanbul Turkey Beaumont, TX United States Chocolate Bayou, TX United States Lincoln, NE United States Little Rock, AR United States St. Charles, MO United States Caracas Venezuela Ho Chi Minh City Vietnam OPERATION Major Sales Office Major Sales Office Major Sales Office Regional Headquarters Major Sales Office Regional Headquarters; Manufacturing Plant; Major Sales Office Research Facility Regional Headquarters; Manufacturing Plant Major Sales Office Major Sales Office Major Sales Office Manufacturing Plant Major Sales Office Major Sales Office Major Sales Office Major Sales Office Major Sales Office Major Sales Office Regional Headquarters Major Sales Office Major Sales Office Major Sales Office Regional Headquarters; Manufacturing Plant Major Sales Office Major Sales Office Major Sales Office Regional Headquarters Major Sales Office Manufacturing Plant Manufacturing Plant Manufacturing Plant Manufacturing Plant Global Headquarters Major Sales Office Major Sales Office; Research Facility
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Trademarks
APPENDIX
ACIDOMIX is a registered trademark of Novus Deutschland GmbH ACTIVATE is a trademark of Novus International, Inc., and is registered in the United States and other countries ADVENT is a trademark of Viridus Animal Health, LLC, and is registered in the United States and other countries AGRADO is a trademark of Novus International, Inc., and is registered in the United States and other countries AIMS is a service mark of Novus International, Inc., and is registered in the United States and other countries ALIMET is a trademark of Novus International, Inc., and is registered in the United States and other countries ARENUS is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries ARTINIA is a trademark of Novus Nutrition Brands, LLC ASSURE is a registered trademark of Novus Nutrition Brands, LLC CAPTURA is a registered trademark of Novus International, Inc. CIBENZA is a trademark of Novus International, Inc. DHA GOLD is a registered trademark of Martek Biosciences Corporation ESC is a registered trademark of ESM Technologies, LLC FEEDGUARD is a trademark of Novus International, Inc. GLYTREX is a trademark of Novus International, Inc.
GST is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries
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IDEA is a trademark of Novus International, Inc. MERA is a trademark of Novus International, Inc. MFP is a trademark of Novus International, Inc.
MAAC is a trademark of Novus International, Inc., and is registered in the United States and other countries
MHA is a trademark of Novus International, Inc., and is registered in the United States and other countries MINTREX is a trademark of Novus International, Inc., and is registered in the United States and other countries NATUGUARD is a trademark of Novus International, Inc., and is registered in the United States and other countries NEM is a registered trademark of ESM Technologies, LLC NOVUS is a trademark of Novus International, Inc., and is registered in the United States and other countries OASIS is a trademark of Novus International, Inc., and is registered in the United States and other countries PRO-STABIL is a trademark of Novus Deutschland GmbH PROVENIA is a trademark of Novus International, Inc.
SANTOQUIN is a trademark of Novus International, Inc., and is registered in the United States and other countries SOLIS is a trademark of Novus International, Inc., and is registered in the United States and other countries SURF.ACE is a trademark of Novus International, Inc. STRATUM NUTRITION is a trademark of Novus Nutrition Brands, LLC STEADFAST is a trademark of Novus Nutrition Brands, LLC, and is registered in the United States and other countries ZORIEN is a trademark of Novus International, Inc., and is registered in the United States and other countries
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LA2: Total number and rate of employee turnover by age group, gender and region
July through December, 2008 Gender Female Age Groups Under 25 26-35 36-45 46-55 Over 55 Under 25 26-35 36-45 46-55 Over 55 Asia 0 0 0 0 0 0 0 1 0 0 0 1 1 EAME 1 3 0 0 0 4 0 0 3 2 0 5 9 LATAM NA 0 0 2 2 0 1 1 0 0 0 3 3 0 0 0 0 2 0 1 3 0 0 3 3 6 6 Total 1 7 1 1 0 10 0 1 5 6 0 12 22 January through December, 2009 Asia 1 7 1 0 1 10 1 1 5 2 0 9 19 EAME 0 0 0 0 0 0 1 0 0 0 0 1 1 LATAM 0 1 0 0 0 1 0 4 3 0 0 7 8 NA 0 6 4 0 2 12 0 2 2 2 2 8 20 Total 1 14 5 0 3 23 2 7 10 4 2 25 48
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LA7: Rates of injury, occupational disease, lost days and absenteeism, and number of work-related fatalities by region
2008 Region Asia EAME* LATAM NA Total * Lost days: 0 SG&A Work Related Injuries 0 0 0 0 0 2009 Region Asia EAME* LATAM NA Total * Lost days: 2 SG&A Work Related Injuries 0 2 1 0 3
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North Carolina Poultry Federation North Dakota Poultry Industries Northwest Poultry Council Vancouver, WA Ontario Agribusiness Association Ontario Institute of Agrologists Pacific Egg & Poultry Association (PEPA) Sacramento, CA PennAg Industries Association Pet Food Institute Poultry Middle East & North Africa Poultry Science Association (PSA) Professional Animal Auditor Certification Organization (PAACO) Society of Rheology South Carolina Poultry Federation Southern Feed & Grain Association Southern Poultry Science Association Space Solar Alliance for Future Energy (SSAFE) St. Louis Agribusiness Club Tennessee Poultry & Egg Association Nashville, TN Texas Board of Professional Engineers Texas Chemical Council Texas Poultry Federation Austin, TX The Poultry Federation Little Rock, AR U.S. Poultry & Egg Association Tucker, GA U.S. Soybean Export Council (USSEC) & American Soybean Association International Marketing (ASA-IM) United Egg Producers Alpharetta, GA United States Grains Council (USGC) University of Guelph Alumni Association Virginia Poultry Federation Virginia State Feed Association Washington University Executive MBA Alumni Board Member Wisconsin Poultry & Egg Industries World Aquaculture Association World Aquaculture Society World's Poultry Science Association (WPSA)
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Contact Us
If you have comments on Health through Nutrition or would like further information, please visit www.novusint.com Alternatively, you may contact the Novus Sustainability Team by sending an email to sustainability@novusint.com or request in writing to the following address:
Novus International, Inc. Attn: Sustainability Team 20 Research Park Drive St. Charles, MO 63304 United States of America
Please provide your name, affiliation and postal and/ or email address. You may obtain an electronic copy of Novuss sustainability report at www.novusint.com