Corporate Responsibility Report

Corporate Responsibility Report PRODUCTS / PLANET / PEOPLE

Corporate Responsibility Report 3736 South Main Street Marion, NY 14505 / 315 -926-8100 / WWW.SENECAFOODS.COM

About This Report Seneca Foods Corporation conducts its business in a responsible manner with a firm commitment to our longstanding Fundamental Beliefs, outlined on page 19. These values greatly influence every aspect of our business. The first three beliefs center on maintaining the highest standards for protecting the worker and the environment, protecting the integrity of the product and food safety, and conducting business with integrity in all business matters at all times. This report provides information on our commitment to operating in a responsible manner.

Table of Contents 

Letter from Our President and Chief Executive Officer

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Our Products

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Our Planet

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Our People

Description of Business Seneca Foods Corporation conducts its business almost entirely in food processing, which contributed about 98% of the Company's fiscal year 2013 net sales. From it’s twenty-four production facilities, Seneca offers vegetable and fruit products primarily in the canned and frozen categories, and fruit chip products represent 1% of the total food processing net sales. Non-food processing sales, which primarily related to the sale of cans and ends, and outside revenue from the Company's seed, trucking and aircraft operations, represented 2% of the Company's fiscal year 2013 net sales. Approximately 9% of the Company's processed foods were sold under its own brands, or licensed trademarks, including Seneca®, Libby's®, Aunt Nellie's Farm Kitchen®, Stokely's®, Read®, Festal®, and Seneca Farms™. About 55% of the processed foods were sold under private labels and 23% was sold to institutional food distributors. The remaining 13% was sold under an Alliance Agreement with General Mills Operations, LLC. Marion, New York June 1, 2013

About The Cover California cling peaches grown by family farmers whose orchards average just 50 acres. Most of our growers are members of the California Canning Peach Association, the oldest continuously operating grower association in the Country founded in 1922.

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From Our President and Chief Executive Officer

Thank you for taking the time to read our 2013 Corporate Responsibility Report. Our mission at Seneca Foods Corporation is to feed the world safe and nutritious products that are valued and enjoyed by families everywhere. This mission is supported by our vision which is to continue to grow as a leader in the fruit and vegetable industry by remaining deeply rooted in our Fundamental Beliefs and through a shared commitment to those we serve. Our commitment to corporate responsibility is directly represented in our Fundamental Beliefs:  Seneca will always maintain the highest standards for protecting the worker and the environment.  Seneca will protect the integrity of the product and food safety.  Seneca will conduct itself with integrity in all business matters at all times.  Employees will be treated with respect and will look to promote from within to provide advancement opportunities to our employees and develop loyalty. As one of the largest suppliers of fruits and vegetables in North America, one of our primary responsibilities is to be trusted stewards of the assets that we manage. With twenty-four production plants, Seneca and our employees share a common bond with the communities in which we operate, with our farmer partners, with our suppliers and with the millions of consumers who trust us to help feed their families. We understand that being good corporate citizens with safe and sound environmental, sustainability, and safety practices are not just requirements or rules, but rather shared beliefs which we promote each day. We appreciate your interest in our company.

Kraig Kayser President and Chief Executive Officer

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Our Mission “We feed the world safe and nutritious products that are valued and enjoyed by families everywhere.” With extensive US Production capabilities, Seneca Foods Corporation is a major supporter of US agriculture and one of North America’s largest providers of high quality fruits and vegetables. We supply product to almost every major U.S. retailer and U.S. Foodservice account. Our state-of-the-art processing facilities are located in the Northwest, Midwest, Northeast, and California, offering geographical diversity. Our Modesto, California fruit plant is the largest in the world. In addition to domestic sales, Seneca provides products to over 95 countries, feeding millions of consumers who trust us to help feed their families.

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Our Products PRODUCTS / PLANET / PEOPLE

Food Safety & Product Integrity Among the highest of our Fundamental Beliefs is Seneca will protect the integrity of the product and food safety. We have numerous programs in place to ensure we are a leader in Food Safety. Our plants are certified against the British Retail Consortium (BRC) code, one of the schemes recognized by the Global Food Safety Initiative (GFSI). We also have training programs, conduct and support numerous audits, and meet our regulatory compliance obligations, including the Food Safety and Modernization Act (FSMA). Quality begins with agricultural research. Investments made in information software allows us to enhance agricultural management, track pesticide usage, provide planting details, report point of origin, map GPS locations, and accommodate access of records for certification, auditing, and customer information requests. By further employing inhouse agronomists and plant breeders, plus joint research projects with leading U.S. universities, Seneca makes sure product has the right start towards providing our consumers high quality and safe products.

Integrated Pest Management (IPM) Experienced Field Staff and Environmental Coordinators are employed at each agricultural location to reduce and track all pesticide applications and ensure consistency throughout Seneca operations. Integrated efforts between Agriculture and Operations personnel, plus growers, further leverage plant optimization that may allow reductions in pesticide use. Seneca has implemented an Agricultural Information Management System to help us manage our agriculture practices. This proprietary system utilizes Global Positioning System (GPS) technology and has helped us to be more efficient, produce less waste when planting, apply fewer pesticides and be more efficient during harvesting . We have instituted a full scale IPM that has been instrumental in the reduction of pesticide applications, through better field management. Production fields are mapped, surveyed, and discussed with growers to protect ecologically sensitive areas. 5


Quality Control The existence of manuals in Quality Control, Thermal Processes, Test Procedures, Grade Specifications, Warehouse, and Safety provide the fundamentals to producing safe, quality food at each of our facilities. The following systems and programs are in place as a foundation to providing the highest quality product possible. 

A Food Allergen Program is in place to isolate allergenic ingredients at each plant. We manufacture products that have allergenic ingredients in such a way that it minimizes the risk of inadvertent introduction of allergens and we ensure products with allergenic ingredients are labeled properly.

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Heat processing and hermetic sealing kill bacteria and prevent any microorganisms from spoiling the fruits and vegetables. A system called Hazard Analysis and Critical Control Point assures that the canning process is monitored at all stages. Cans are tamper proof containers that protect the contents. HACCP plans are in place for all products produced. Teams review the plans on an annual basis and the plan is reviewed and authorized by our HACCP Coordinator.

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Requirements for metal detectors are documented in our Quality Control Manual including calibration requirements, what to do when an alarm sounds, and testing requirements for magnets.

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Our Sanitation Program includes a master schedule, and standard operating procedures.

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Continuing guarantees will be on file for all Raw Materials, with Certificate of Analysis for each lot being obtained.

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All customer complaints are forwarded to each respective plant where they are required to report on actions taken.

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New product development is initiated by our new products team. Two technical service individuals are on the new products team. The technical development of the products is handled with the existing technical services personnel.

Thermal Processes All thermal processes are approved by our in-house Thermal Process Authority; training programs are targeted towards thermal processing. Test Procedures Microbiological testing occurs at all frozen facilities; analysis is completed on all frozen finished product, sanitary surveys, and environmental surveillance. Plant Inspections consist of continuous quality control monitoring with staff at each facility, computerized fill control checks every 30 minutes, visual seam inspections every 30 minutes, seam teardown inspections every 3 hours, and cooker checks every 30 minutes. Quality Control Audits are conducted to evaluate documents, procedures, processing and training records, equipment functionality, and operational, and employee practices. Internal auditing covers QSM, Thermal Processes, Sanitation, and Warehouse. Audits are completed for USDA, organic, kosher, organic, and GMI. Grade Specifications Finished product specification documents are available for all products. Statistical Process Control is utilized in attribute grading and fill control with on-line inspections completed to determine product defect levels. Grading evaluations occur every hour and may include vacuum, color, flavor, sugar analysis, salt analysis, and center can temperature. Product auditing is completed on a weekly basis for all products produced the previous week. Finally, all canned product is on a mandatory five day hold and positive release. Training To ensure all equipment, systems, and procedures are properly utilized, Seneca has a training process that addresses who must be trained and the frequency of the training. The subjects that are required to be trained annually include HACCP, GMP's, Thermal Processing, Double Seams, Microbiology, Sanitation, and Chemical Handling. 6


Healthy Eating The use of Seneca products plays a key role in the journey towards healthier eating. Dietary guidelines recommend we eat more plant-based foods like fruits, vegetables, whole grains, beans and nuts - foods that provide fiber, antioxidants, and healthier fats. These nutrients are linked to lowered risks for heart disease, diabetes, certain cancers, and even obesity. According to the new guidelines, you need to fill half your plate with vegetables and fruits. By incorporating more fruits and vegetables, plus making other smart choices, families can create healthier eating habits. Seneca provides recipes to add a variety of fruits and vegetables and associated nutrients to meals, and to suggest healthier alternative ingredients as well.

Produce for Better Health Foundation Produce for Better Health Foundation (PBH) is a non-profit education foundation and a leader in fruit and vegetables education and nutrition marketing. Since 1991, PBH has been working hard to achieve its core purpose: motivate people to eat more fruits and vegetables to improve public health. Over the last 5 years, Seneca Foods has donated $275,000 to PBH, as we share our common goal to educate people to eat healthy and nutritious food.

Our Products vs. Fresh Numerous studies have been conducted comparing the benefits of fresh, frozen, and canned foods. According to experts, all forms of fruits and vegetables provide needed nutrients that make up a healthy diet. Moreover, canned and frozen fruits and vegetables compare favorably with, and in some cases exceed their fresh counterparts in nutrient contribution. That's because our process locks in nutrients at their peak of freshness and, unlike fresh, loses very little of that value over time. Our products provide nutrition, shelf life, convenience and flavor in a world that is demanding all of these attributes at a lower cost versus fresh alternatives, especially when taking into account the waste associated with fresh produce.

Our products are a great alternative for families that have little time to prepare healthy meals, are on a budget, or just want more variety in their fruit and vegetable selections.    

Convenience Our products are recipe ready, no peeling, washing, or slicing necessary. They can be used straight from the package, warmed as a side dish, or as an ingredient to enhance any recipe. Available Any time of year, they are "always in season" . Cost Effective Generally, canned and frozen foods are less expensive per serving than fresh. Variety Choices abound. With hundreds of different products and sizes, Seneca offers among the industry's most complete lines of canned and frozen fruits and vegetables.

Today's health-minded consumers want foods that go from "field-to-fork" to provide maximum flavor, freshness and nutrition. Our vegetables are carefully grown in high-quality soil, picked at their peak and processed immediately after harvesting to ensure premium quality that's as tasty and nutritious as fresh. What's more, many of America's favorite fresh vegetables, such as corn, are only available seasonally. We make it easy for the consumer to enjoy high-quality, farm-fresh variety year-round.

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Healthier Snacks We also help people make healthier choices for Snacks with our Apple Chips, Pear Chips, and healthier Potato Chips. Seneca Snack Chips meet the quest for a tasty, yet healthier, snack alternative. Less fat, low sodium, no cholesterol, and great taste combine to make our snack chips the preferred choice among health-conscious individuals. Our chips are gluten-free, with no trans-fats or other “junk” – just real apple, pear, and potato goodness. So go ahead, snack healthier with Seneca Chips.

Fruit Seneca’s fruit products are hand selected at the peak of ripeness and nutrient content from the finest orchards. With the same quality assurance that begins in our grower’s orchards, we reinforce the integrity of our products by making sure all raw produce meets our high standards. Peaches are fortified with 100% of the recommended daily allowance (RDA) for vitamin C while our Pears are naturally fat and cholesterol free, and low in sodium. Apples are rich in fiber and flavonoids, which lowers cholesterol, reduces blood pressure, and helps the immune system . Cherries also bolster the immune system, help fight inflammation, and are effective in the treatment of gout, a painful form of arthritis.

Organics Seneca produces and offers an extensive line of Certified Organic grown products that are delicious and nutritious. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent organizations and includes inspections of farm fields and processing facilities, detailed record keeping, and periodic testing of soil and water to ensure compliance.

Low Sodium and No Sodium Seneca also offers an extensive line of Libby’s Low Sodium and No Sodium Vegetables that are delicious and an excellent alternative for health conscious consumers.

Dry Beans As consumers move towards healthier eating habits, beans become even more important in every menu. They’re low in fat, cholesterol-free, and packed with protein, fiber, vitamins, and minerals - a key part in any balanced meal. Dry Beans are great in soups, salads, stews, and side dishes. They further open up exciting menu opportunities, because beans play a significant role in almost every cooking tradition - from classic American to Creole West Indian. We process and pack premium dry beans, including a full line of organic, to preserve flavor and natural texture. That’s why our beans are consistently outstanding and why Seneca beans are always the best you can buy. 8

Our Planet PRODUCTS / PLANET / PEOPLE

Environmental Management & Sustainability Practices Effective environmental conservation requires strong practices in the usage of water, energy, and soil. Only then can we minimize the impact our business has on the environment. At Seneca, we believe in farming and making great products in a sustainable and environmentally friendly way. Among our fundamental beliefs is our commitment to protect the environment we live and work in. We are constantly developing and implementing new systems and procedures that not only keep us in compliance with ever-changing regulations, but also reflect our dedication to preserving a healthy environment.

Agriculture Our roots run deep in agriculture. Protecting our natural resources is a responsibility and an honor that we take very seriously. Sustainable practices are a core belief at Seneca and we will continue to search for new and more effective means to protect our environment. From our Seed Research team to the farm and the table, we make products in a sustainable and environmentally friendly way, working in partnership with our many growers. From the delicate seed to the table, consumers expect us to make the commitment to produce our crops in the most environmental friendly way possible. That is why we continue to invest in modern equipment for our agriculture departments. An example is our use of air planters and Global Positioning Systems (GPS) in planting our pea seeds in our Central Sands Wisconsin area. This has allowed us to achieve a savings of 3 ½ % of seed, with a reduction of 67,000 pounds of seed on 8,000 acres. Tillage in this area is also being done using GPS systems which in turn reduces the overlapping of the tilling equipment again reducing the carbon foot print on the agriculture side. As part of the EPA initiative for Greenhouse Gas (GHG) emission reductions in agriculture equipment, the requirement to meet Tier 4 standards by 2014 are in place at our facilities. Leased and newly purchased equipment meet these guidelines and show our commitment to the environment. In the last four years, we have reduced the amount of harvesting equipment we have, by purchasing and replacing our six head corn harvesters with new state of the art eight head corn harvesters. This not only increased the efficiency of the harvest but also reduced our carbon footprint as we reduce the number of harvesters needed. The farmers we contract with take proactive steps by practicing no-till planting practices, when possible.

The Seed The key to our commitment to be environmentally friendly starts at the beginning with ”the seed”. We believe the only way to be sustainable is to promote those things which we grow. That is why we have our own seed breeding program for seed development which includes our own seed receiving and packaging operations. These operations consist of a research and development team, that also work hand in hand with Agricultural Colleges and State Universities such as; Oregon State University, University of Wisconsin, Cornell University and Iowa State University. Our breeding program helps us produce seeds with higher yielding potential which in turn reduces the acres necessary for our crops, thereby reducing our carbon footprint. As we breed new seeds, we strive to produce a seed that is more pest resistant, allowing us to protect the environment through reduced application of pesticides. 9


The Life Cycle Of Corn

Silage produced as a by-product from our sweet corn canning operations is 100% reused as either animal feed or soil amenities. In fact, our largest sweet corn plant will produce in excess of 70,000 tons of silage that animals love to eat, which when eaten, completes the life cycle of the corn process. Not only is our by-product waste reused, it is used in many different applications. Seneca seed and agriculture operations partners with IBAC, Interests, L.P., a company that specializes in the repair and recycling of our large seed bags. With a united effort, 49,798 pounds of bagging material was kept out of landfills in 2011 / 2012. We continue to reuse over 600,000 pounds of byproduct waste for animal feed, composting material and soil amenities. Our plant in Modesto, California has been successful in using pits from our fruit for body scrubs and fire place logs. We continue to divert over 7,000 tons of peach pits from local landfills with this unique opportunity.

By-Product from our operations is a great example of sustainability in action. Recycling Since recycling is a key component of waste reduction, we are committed to finding ways to process used materials into new products. These programs allow us to prevent waste of useful materials, reduce consumption of fresh raw materials, reduce energy usage, and decrease air and water pollution. We have initiated programs which reuse fruit and vegetable by-products as feed for livestock and nutrients for soil; utilize waste to produce energy for use in manufacturing; and reduced the waste delivered to landfills through packaging optimization and plant recycling programs. With our warehouse management system, we have greatly reduced and almost eliminated the need for using paper, as all requests and tracking in the warehouse are now handled by way of hand held scanners and computers in our labeling and packaging operations. Each plant has a comprehensive recycling program to track items that can be and are recycled. Offices are equipped with a separate container that is Recycled pounds identified and used only for recyclable materials. Our plant in (Waste kept out of landfills) Janesville has a recycling truck that is docked permanently; 40,000,000.00 recyclable material is placed in this truck and shipped to the 30,000,000.00 recycling center . As indicated by the graph, we are active in our efforts and have seen a steady increase since 2005, although 2011 20,000,000.00 was lower as a result of less waste produced at the facilities. We 10,000,000.00 also recycle our information technology equipment and cell phones. Our plant in Yakima, Washington has the distinction of recycling over 90% of the waste stream from the plant in 2005 2006 2007 2008 2009 2010 2011 2012 each of the last 3 years. 10


Water Conservation We understand that water is a valuable resource and as such, needs to be protected. That is why water conservation starts in the field. With the additional pressure on this resource, our farms and farmers we contract with are taking proactive steps in reducing the use of water. Several of the steps that have already taken place include; converting almost all high pressure irrigation systems to low pressure allowing less evapotranspiration and less energy use. Several of our growers are also using soil probes to aid them in less application of water, thus conserving energy and water usage. In order to reduce the usage of water and recycling of waste water for manufacturing and agricultural irrigation, Seneca rewards plants that lower water usage on an annual basis. This program has resulted in a water usage per case decline of 31% over three years and total generated waste water per case decline of 32% over same three years. Installation of a water management system and reverse osmosis units allows Seneca to send unused production water to irrigation and reduce energy costs by increasing the efficiency of steam generation. The company has further installed an anaerobic digester at 98% of our Waste Water is reused for irrigating our Montgomery, MN plant to treat waste water as well as generate energy from biomass. By-product of anaerobic crops that are in turn used for animal feed. digestion is methane gas which is then used as fuel in the manufacturing process. This digester allows us to convert from consuming energy as part of waste water treatment to actual generation of a renewable source of energy.

Over 1 billion gallons of waste water is returned to our ground irrigation systems annually and used to irrigate a crop that is then used for animal feed on an annual basis. Our Glencoe, Blue Earth, and Arlington, Minnesota facilities received a commendations in 2012 for outstanding operation of a waste water treatment facility. The Glencoe facility has received eight commendations since 2004 .

Our Yakima, Washington facility was recognized in 2012 by the City of Yakima for 100% Wastewater compliance.

Our Mayville, Wisconsin facility received an award from GE Water Technologies. GE worked with the facility on a Chloride Reduction Project. Not only did this project reduce the amount of salt and municipal water needed in their operation but also considerably reduced the amount of chlorides being sent to the municipal waste water facility. 11


Seneca Drives Green Our Fleet Operations have been engaged in the safe, dependable, and efficient transportation of Seneca products since 1952. As Seneca is committed to protecting the environment we live and work in, we are constantly developing and implementing new systems and procedures that not only keep us in compliance with ever-changing regulations, but also reflect our dedication to preserving a healthy environment. One of those procedures, in response to the environmental movement otherwise known as “Going Green”, was to add 2012 model Volvo VNL670 tractors to our Eastern fleet. In addition the Western Fleet previously updated their fleet with 2011 Volvo Models that also include the VN670 Tractors. By updating the fleet, fuel efficiency increased from 5.88 mpg to 6.67 mpg. This is a reduction of 60,000 gallons of fuel consumed, for same miles driven. The VNL670 tractors are equipped with Volvo D-13 engines, the most fuel efficient in the industry. They are certified Clean Idle by the Federal Government and California’s Air Resource Board. Starting with the front bumper, side extenders and mirrors, to the rear cab extenders, these trucks glide through the air. With the help of the Freight Wing under the trailer, we have achieved 4% better fuel economy, with the addition of the ECO-Flaps also adds 1% better fuel economy. By adding the technology of the new Volvo trucks to our shipping fleet, we have not only succeeded in major gains in fuel economy but we have succeeded in standing by our commitment to protecting the environment we live and work in. We have also eliminated tractor idling during down time due to APU (auxiliary power units) installation.

Transportation Policy & Efficiency Seneca also strives to ship product in the most efficient manner. As part of our initiative on the Frozen side of our business, we have leased 30 Frozen rail cars (Cryotrans) to ensure that we can move our frozen product in the most efficient manner. We also move our canned product on rail whenever possible. This has resulted in a savings of over 61,000 tons of Greenhouse Gas emissions vs. trucking product. Our plants and warehouses are also located near our customer base which allows for timely and efficient shipping of product. We also have a Policy in place at all warehouses for non-idling of all tractors when being loaded or unloaded.

Forklift LP Reduction We have taken strides in replacing our propane lift trucks with electric lift trucks, allowing us to reduce emissions . Since 2007 we have doubled our electric lift trucks while reducing the propane lift trucks in the same time period with a projection to have more electric then propane by 2016. 450 400 350 300 250 200 150 100 50 0 2007

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2012 forecast forecast forecast forecast forecast forecas t 2013 2014 2015 2016 2017 2018

LP Forklifts

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Electric Forklifts


Energy Efficiency From the farm to the table, energy affects every aspect of the process used to provide quality products to our consumers. We will continue to search for ways to reduce energy through installation of energy efficient equipment, modifications in manufacturing processes, and possible implementation of a Power and Management Solution Energy Analysis Program. In 2005 Seneca embarked on a program to install Reverse Osmosis systems. Since the program began, we have been successful in installing 13 of the systems in our plants for the boiler in feed water. This has allowed us to generate steam in a more efficient way by reducing not only blow downs of the boilers from 12-14 to 3-4 per hour, but also reduces the amount of chemicals needed to clean the water for the boilers. Some of our other successes in energy efficiency include;  Energy efficient lighting with occupancy sensors have been installed in warehouses, reducing the amount of time the lights are on in any particular zone by occupancy . In fact Seneca has 8,763,633 square feet of production, office and warehouse space under energy efficient lighting, which has saved the company over $900,000. All future warehouse and office spaces are intended to have energy efficient lighting.  Implemented program for peak energy reduction in freezer plants to lessen equipment usage during peak hours.  Usage of Programmable Logic Controllers to monitor equipment runtime and turn off equipment if no activity due to product variation.  Installation of boiler economizers, heat Exchangers, Blow-down heat exchangers and condensate recovery systems on boilers in our plants.  Each plant is required to implement utility savings projects . These projects go hand in hand with our commitment to energize the plants with the tools and equipment necessary to produce the products we sell in the most cost effective and efficient manner possible. Energy projects over the last 4 years 2008-2012 have shown savings of over $6,000,000 dollars.  The Information Technology Data Center in Marion, NY recently implemented major upgrades to reduce energy usage and cooling costs.

Reducing Our Carbon Footprint EPA requires reporting for over 25,000 metric ton of emissions of CO2 greenhouse gases (methane, nitrous oxide, carbon dioxide). All of Seneca Plants use natural gas (cleanest fuel available) and are under this threshold. In the mid 90's, oxidizers were installed in both can manufacturing plants which has allowed Seneca to reduce 1000's of pounds of Volatile Organic Compounds (VOC's).

We participate annually in the CDP (Carbon Disclosure Project) Our Glencoe, Minnesota Plant has installed solar powered aerators in one of the plant’s treatment lagoons . This has eliminated over 22,000 gallons of diesel fuel used to power the previous aerators there by eliminating the CO2 from the diesel powered engines. Montgomery, Minnesota is the site of a by-product/leachate closed loop digester. In 2001 a digester was built that theoretically would turn corn leachate, waste water and silage into a renewable energy. After years of experimentation and many modifications, the facility was able to bring the digester on line to full production of methane gas in 2009. Since then, the plant has installed a boiler where the methane gas is burned and has in fact, reduced the reliance on natural gas by approximately 20%. During the non-processing season, additional venting has been installed in the warehouses and plant to take full advantage of the heat produced by the digester during the winter months. 13


Packaging Optimization

As the only self made can manufacturer in North America, we control our own destiny. This allows us to have the lightest 15 oz. can in the industry. We necked the end down in 2012 to reduce the amount of steel used by 12.6%.

Seneca realizes the importance of packaging optimization to control the amount and types of resources utilized. Down gauging of steel in cans and ends, thermal oxidation and energy recovery on steel sheet coating, and use of water based compounds for steel coating have been implemented and successful at the plants. Reductions in can end weight have resulted in saving 5 lbs. of steel for every 1,000 of ends produced which further saves on resources and freight costs. Installation of state of the art thermal oxidizers has lowered volatile organic emissions, saved natural gas consumption in Seneca coating operations, and an energy savings of $4.64 per every thousand sheets of steel. Furthermore, Seneca's new drying units in the manufacturing of can ends now allow use of water based (versus solvent based compounds) which result in zero volatile organic emissions. Our final packaging material has been reduced to reflect our commitment of the field to customer sustainability practice. Since 2003, pallet stretch wrap -”pre-stretch” has been increased from 150% up to 250%. This has drastically reduced the amount of stretch wrap used in wrapping the pallet, not only reducing our packaging and carbon footprint, but reducing the footprint of those that produce the wrap. Not only have we increased the “pre-stretch”, we have also decreased the mil thickness of the wrap, reducing the pallet wrap from 68 mil down to the current 57 mil thickness. Even our shrink film that keeps the finished product in the containers has been reduced from 2 mil to 1.5 mil thickness. As with all packaging, we continue to look to our suppliers to provide us the most environmental friendly packaging possible. Seneca has taken the initiative and has been an industry leader to reduce the usage of BPA in the interior coatings of the cans our product is packed in. Our goal is to use the most cost effective and environmental Fact, 96% of the cans that we produce at our own friendly shipping materials, when possible. One of the items that can plants are made without BPA, with the intent contributes to the carbon footprint of our company is what the finished product is shipped on. “Pallets” not only contribute to the of 100% being made without BPA, by 2015. final weight, but also contribute to the deforestation of our forests as wood is used to produce wood pallets. As a result of this, Seneca has entered into a program with CHEP Pallets USA to reduce our reliance on wooden pallets. With the introduction of plastic pallets in our can plants, we have purchased and use 40,000 of this environmentally friendly pallet. For Use Of The CHEP USA Pallet Pooling System Saves The Following: 4,183,087 Pallets every reusable plastic pallet that is used, 11 trees are saved.

2,357,444 Pounds Solid Waste Saved

51,054,495,305 BTU’s Energy Saved

Reduction of 50%

Reduction of 19%

Waste Reduction Equivalent: Cubic Yards of Landfill Space 7,254 Households—Annual Trash Generation 550

Energy Equivalent: Households—Annual Electricity Use 1,332 Barrels of Oil

8,802

1,778,607 Pounds Greenhouse Gases Saved

Reduction of 5% C02 Reduction Equivalent: Miles Not Driven By Average Passenger Car 1,861,119 Number of Trees Planted And Grown for 10 years 76,664

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To date we have saved 36,636 trees or 91 acres of trees by using these pallets. As a result of this success, we are trialing other applications for plastic pallets, such as in our freezing operation in Rochester, Minnesota.

Our People PRODUCTS / PLANET / PEOPLE

Feeding the World At Seneca Foods, we truly do Feed the World. With our American-made products shipping to 95 countries, Seneca Foods offers customers around the world vegetables and fruits, and shelf-stable snack items. We recognize and appreciate cultural diversity and pride ourselves in the ability to meet our customer's unique requirements. By controlling every aspect of the process - from selecting seed to harvesting crops to manufacturing quality - Seneca is dedicated to providing our customers around the world with premium quality products and service.

In 2012, Seneca Foods joined with Hunger Free Minnesota, Feeding America and Second Harvest to use corn that would typically be destroyed, to feed those in need. The immediate result was 600,000 pounds of corn being used in 465,000 meals for people in 10 states.

Hunger is a worldwide crisis. Too many of our closest neighbors don't have the means to adequately feed themselves and their families. As a leader in the food industry, Seneca Foods coordinates product donations on a national level to organizations in need. We include special outreaches to support the local community organizations that serve the areas in which our employees and their families live and work. As a supporter of Feeding America, Seneca Foods donates products which help to bring relief to thousands of individuals and families during difficult and unprecedented times. Over the years Seneca has donated millions of dollars worth of products through organizations such as Feeding America, Second Harvest, and Foodlink. As an example, in 2010, Seneca donated more than 5 million pounds of food to Feeding America, the largest one time donation of canned fruits and vegetables in Feeding America’s history. We also partner with organizations such as Habitat for Humanity and Foodlink through "Get Back To The Table With Libby's" campaigns, as well as coordinating ongoing support to local food banks in each community where our employees live and work.

We continually strive to provide affordable, nutritious food to the people that need it most. Seneca Foods has been the recipient of the Donor of the Year Award presented by Channel One Food Bank and Food Shelf in Rochester, Minnesota. “In an era when many corporations do not look beyond their bottom lines, southeast Minnesota and western Wisconsin continue to benefit from the community spirit of Seneca Foods and over 100 other food donors that donate millions of pounds of food to aid in the hunger relief work of Channel One Food Bank and Food Shelf,” says a Channel One news release. Seneca Foods supports Channel One on a regional level and it supports the Feeding America organization on a national level.

In April, 2013, Seneca Foods received the Hunger Hero Award from Second Harvest Heartland for demonstrating extraordinary leadership in meeting the unprecedented demand for food. 15


Seneca Foundation The Seneca Foods Foundation is a private not-for-profit corporation which provides community assistance focused on helping to prepare and empower our young people, by giving them the tools they need to become independent and contributing members of their communities. The Foundation focuses on programs related to youth development and higher education, giving priority to those which serve youth in communities where Seneca has an operating facility or substantial presence, especially those with Seneca employee and retiree volunteer involvement.

Future Farmers of America

At Fiscal 2013 end, Seneca Foods Foundation gave back to our communities $2,240,000.

Seneca Foods is proud to sponsor nine scholarships through the National FFA Foundation. The selection process takes into account the whole student - FFA involvement, work experience, Supervised Agricultural Experience (SAE), community service, leadership skills and academics. Seneca Foods has set preference in the selection of awardees to those students who have family members that are either employees or growers of fruits and vegetable processors. In addition, we participate in the animal livestock sales at local fairs to promote the well being of the FFA program.

Our Grower Partners The farmers that we work closely with are true partners . The relationship we have with over 2,000 growers is a trusted one. Not only as growers of high quality fruits and vegetables but also as stewards of the land, using sustainable farming practices when possible. The vast majority of the farmers are from family farms and orchards that Seneca has done business with for many years, and in some cases, for generations. We are members of the same rural farming communities, which allows us to move produce from the farm to our processing facilities in a very short time frame, insuring optimal freshness. Our agriculture teams collaborate closely with our farmers on all aspects of the growing process, including recommendations on land selection, field preparation, fertility, planting, and crop maintenance throughout the growing season. For many of our crops, we provide the actual seeds to be planted, the equipment to plant the crop, and custom harvesting and hauling services to efficiently deliver the crop to our processing plants. We have representation on our Board of Directors from the grower community as well as the academic Many of our facilities are located in rural agriculture community from institutions such as Cornell University’s communities and require the support of College of Agriculture and Life Sciences.

people that live in these communities.

Volunteerism

Our employees volunteer in a variety of ways, such as volunteer firefighters and first emergency medical personnel. Many are also involved in 4H , Boys & Girls Clubs, Scouting and other programs. We also have a number of employees that participate together in a number of charitable events, such as American Cancer Society Relay for Life events and Making Strides Against Breast Cancer. 16


Working At Seneca Our vision at Seneca Foods is to continue to grow as a leader in the fruit and vegetable industry by remaining deeply rooted in our fundamental beliefs and through a shared commitment to those we serve. That shared commitment directly involves our relationship with our employees.

Employees will be treated with respect and we will look to promote from within to provide advancement opportunities to our employees and develop loyalty. We recognize that in order to achieve our vision, Seneca must continue its commitment to loyal employees. Without their dedication and hard work, achievement of our goals would not be possible. All in all, it is the combined team effort of every member of our Seneca Family that will enable us to be successful in reaching it.

Internship Program Seneca realized the need to promote the education of not only future employees for Seneca Foods, but of students that are studying to work in the field of Food and Nutrition. With this in mind, we started an internship program with local colleges to identify, develop, and train potential college graduates with the skills necessary to succeed in the field of food and nutrition.

Supporting Our Troops Seneca Foods is on the front line helping veterans who have returned from Iraq and Afghanistan to find jobs. We participate in Veterans Job Fairs sponsored through Veterans Affairs. Seneca also participates in other events such as the University of Wisconsin’s first ever Veterans Career Networking session. These activities are important for several reasons, but foremost is our desire to support our veterans who have made a personal sacrifice on behalf of our nation and who bring a combination of training, analytical skills, and real-world experience to the workplace. Secondly, as a government contractor we welcome veterans to apply for employment , tracking those that do on our Affirmative Action Plan.

Seneca Learns We have developed programs to empower our employees with the skills necessary to help them in making a difference to our company. These programs positively impact our employees and often the environment with reductions in waste. Two key programs are Seneca GROWS (Get Rid of Waste Systematically) and Seneca SAVES (Seneca Adding Value Employee System). GROWS is an approach to learning based on a philosophy that job enrichment must come from uninhibited involvement of those affected. It highlights respect and understanding, and reinforces growth and engagement between the individual and the organization. At the center of GROWS is the development of a continuous improvement action plan. Action plans are instrumental in helping to reach many of Seneca's objectives. Action plans are derived by reviewing situations in the work area that can be changed for improvement. Many action plans impact the areas of Quality, Human Safety, Cost Reduction, Productivity, or the Environment. SAVES is an action oriented process improvement program founded on systematic lean problem solving, disciplined waste elimination, superior cost management, and iterative continuous improvements across the organization impacting areas such as quality, service delivery, and employee safety. The program is committed to supporting professional development and personal growth of employees by providing education, training, and direct coaching on the application of lean tools and methodologies. It also fosters a learning organization by promoting reflection, self-assessment, and learning from our experiences. 17


Wellness and Safety Seneca will always maintain the highest standards for protecting the worker and the environment. Seneca offers a variety of programs to our employees, providing opportunities to improve their health and wellness. Examples are a Weight Watchers Program, LifeBalance to help employees manage personal and work issues, Quit For Life to help employees become tobacco free, Better Myhealth Incentive Challenge, and Wellness Wednesdays that provides information on many wellness topics, such as preventing underage drinking, eating healthy, a flu guide, and simple steps to protect your health.

Step Up Our Step Up program has been effective in getting our employees to engage in healthy habits by measuring the progress they achieve through walking and also by measuring the amount of fruits and vegetables they consume on a daily basis. As a result of this program, the company exceeded the step up goal with 111.9% of the goal reached for walking steps measured, and 85.5% of the servings goal for fruits and vegetables consumed.

Healthy Rewards In addition to regular health insurance, our employees can actually get paid to be healthy. How would you like to get paid to eat fruit and vegetables and of all things, walk and participate in other physical activities. Our Employees Do. The Healthy Rewards program that is available to employees and their spouses provides this opportunity. Simple things in life can be rewarding and beneficial not only to the company but to our employees and their families.

STOP

Seneca Foods strives to maintain the safest workplace possible for our employees, visitors and contractors. We gauge ourselves against past performance and industry peers. Our goal is to be an industry leader and maintain our positive results. Seneca Foods believes that the success of a good sound safety environment begins with our employees. Seneca promotes and encourages safety involvement at all levels of employment where employees can come together to help identify and resolve safety issues. We provide the necessary safety knowledge through in depth training and through the enactment of Seneca’s STOP (Safety Training Observation Program) where we achieve close to 100% participation.

Seneca outperforms National Averages for both Recordable and Lost Time Injuries. Seneca conducts safety audits annually at all locations to ensure complete compliance with Seneca and OSHA safety standards. Reports are written on the findings that identify the strengths and weaknesses of our safety program. Reports are then distributed to all levels of management. In addition, Seneca is partnered with outside risk management services to achieve optimal compliance and management of maintaining a safe working environment. The President’s “Bronze Eagle” Award recognizes plants that achieve a million work hours and / or 1,000 days worked without a lost time injury to their employees.

This year, a Chairman’s Award went to our Oakfield , WI plant for ten years without a lost time accident!

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Our Vision:

“We will continue to grow as a leader in the fruit and vegetable industry by remaining deeply rooted in our fundamental beliefs and through a shared commitment to those we serve.” Fundamental Beliefs Our principles and values are represented in our long-standing Fundamental Beliefs, which are prominently displayed throughout the organization.  Seneca will always maintain the highest standards for protecting the worker and the environment.  Seneca will protect the integrity of the product and food safety.  Seneca will conduct itself with integrity in all business matters at all times.  Employees will be treated with respect and will look to promote from within to provide advancement opportunities to our employees and develop loyalty.  Management will be accountable for their responsibilities.  Seneca will keep well-maintained plants.  Good news can wait, bad news can’t.  Seneca will be vertically integrated where it makes sense.  Seneca will be low key in our industry.  Move the pack and get rid of aged and slow moving stock.  Seneca will be the best at what we do and be a leader in the eyes of our customer.  Decisions will be based on protecting and improving shareholder value.

Leadership & Ethics It is our consistent principled leadership that has allowed Seneca Foods to be where it is today - one of the nation's premier food processing companies. Our goal at Seneca Foods Corporation is to be the world leader in agribusiness. In pursuit of our goal, we strive to achieve the highest business and personal ethical standards as well as compliance with the laws and regulations that apply to our business.

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3736 South Main Street Marion, NY 14505 315-926-8100 / WWW.SENECAFOODS.COM

The pulp used in the manufacture of this paper is from renewable timber produced on a fully sustainable basis.