Editorial

UEP Consumer Survey on Welfare

Feb 16, 2012

The UEP has released survey data supporting Bill H.R.3798 which is the defining legislation with regard to the Agreement between the U.S. Egg Production Industry and the HSUS. This study was commissioned by the UEP and conducted by the Bantam Group and involved 2,000 anonymous respondents, all of whom were registered voters.

Consumers supported conversion from conventional to enriched cages by a proportion of 12 to 1. Support for federal legislation was 4 to 1 in favor and twice as many respondents supported federal over state legislation.

The figures are convincing and basically confirm what many industry observers have recognized for some time, despite an understandable reluctance to abandoned conventional cages.

Value of the IPSF

Feb 13, 2012

The 2012 International Poultry Scientific Forum arranged by USPOULTRY is held concurrently with the annual International Poultry Exposition in the Georgia World Congress Center. Over the past decade the program has gained significance and impact, far transcending the scope of meetings organized by the Southern Poultry Science Society (SPSS) and the Southern Conference on Avian Diseases (SCAD).

Had it not been for the foresight and support of USPOULTRY, the two separate events would have withered or even ceased for lack of financial support and an evident decline in attendance and quality of contributions. The IPSF now provides a venue for U.S. scientists and their students affiliated to Land Grant universities, federal and state institutions and the R & D divisions of the allied poultry industry to share the results of their research.

Movement Towards H.R. 3798

Feb 8, 2012

The U.S. egg production industry is moving inexorably towards implementation of the principles adopted in the agreement between the UEP and the HSUS. The determinant of our future will be passage of H.R. 3798 The Egg Products Inspection Act Amendments of 2012. Absent binding legislation we will be faced with a patchwork of state rules and ballot initiatives and uncertainty which will inhibit investment.

To quote David Lathem, UEP Chair “This is legislation that egg farmers and consumers overwhelmingly support”. That is precisely the point. Opposition from the American Farm Bureau Federation and specific organizations representing pork and cattle segments of the livestock industry is cynical, self-serving and inappropriate.

The Ongoing Debate on the Future of Cage Confinement

Feb 1, 2012

The 2012 IPE was an occasion for reviewing recent developments in the ongoing debate on the future of cage-confinement of hens. The recent introduction of HR 3798, entitled the “Egg Products Inspection Act Amendments of 2012” clearly defines the future of our industry. Gene Gregory of the UEP described events leading to the present juncture in a comprehensive presentation at the symposium on the future of the poultry industry organized by USPOULTRY.

The entire set of PowerPoints was reproduced in EGG-CITE.com on Friday 27^th January and will run in subsequent editions for the benefit of readers representing producers, equipment manufacturers and the allied industries.

2012 IPE A Great Success

Jan 27, 2012

The 2012 International Poultry Exposition was a success as measured by the attendance of over 20,500, with 895 exhibitors and four new conferences on important emerging issues.

The U.S. Poultry and Egg Association (USPOULTRY) arranged a world-class event with features and activities far exceeding any other international program in either Asia or Europe. The weather was exceptionally mild for late January and as usual the GWCC and area hotels contributed to an environment conducive to an exchange of information and fellowship.

The educational sessions included the International Poultry Scientific Forum, the Pre-harvest Food Safety Conference, the session on Sustainability and the Executive Review on the Future of the American Poultry and Egg Industry.

Annual Conventions

Jan 17, 2012

The week of January 23^rd represents one of the two focal points each year for our Industry as we gather in Atlanta for the International Poultry Exposition and associated commercial, scientific and organization activities.

The IPE has long served as a venue for an exchange of information, both in the educational sessions and on the show floor. The US Poultry and Egg Association in conjunction with the American Feed Industry Association go to great lengths to promote the poultry and feed industries which are complimentary in their scope and importance to the agro-economy of our Nation.

It is indeed unfortunate that the major suppliers of equipment to the egg production segment of the poultry industry have adopted a two-year cycle for displaying equipment and installations.

AEB Good Egg Project

Jan 8, 2012

The Good Egg Project launched in 2009 by the American Egg Board is clearly improving the image of the industry. The AEB reports that a number of consumers agreeing with the statement that “egg farmers are committed to caring for their animals” has increased by 18% since 2009.

According to AEB statistics, currently 57% of consumers acknowledge that egg farmers provide safe, affordable and nutritious eggs. Attributed to the promotions and media activities of the AEB approximately 24% more consumers consider that egg producers feed hens a well-balanced diet and 50% now accept that hormones are never fed to flocks producing table eggs.

Justifiable Concern

Jan 5, 2012

Nature abhors a vacuum. By the same token financial institutions are averse to uncertainty. While there are many in our Industry content with the HSUS-UEP “agreement” there is justifiable concern over the future. Especially since the path that has been selected will involve the commitment of anywhere between $2.5 billion and $5.0 billion over 20 years to be funded mostly by loan capital.

The “agreement” apparently offers stability in an increasingly contentious and adversarial environment. In the words of a prominent proponent “the war is over”. This commentator would be amiss in not amplifying questions which are swirling in the Industry:-

Are we sure that egg producers will be assured of a steady transition from conventional to enriched cage modules? If so then future planning and acquisition of capital for new buildings, installations and equipment can go forward with assurance.
Are we are confident that the increase in production cost, ranging in estimates from 5 cents to 15 cents per dozen will be passed on to consumers? If so, farmers, supermarkets and consumers will presumably be satisfied with respect to welfare and price.

Highlights of the Industry in 2011

Dec 26, 2011

As we approach the new year, hopefully with enthusiasm and optimism, it is appropriate to consider some of the highlights and noteworthy events and even non-events which influenced our industry in 2011.

EGG-CITE reported and commented on:-

Absence of any recalls due to SE in 2011
Continuation of the RFI requiring diversion of 40% of the nation’s corn harvest to ethanol
Increased scrutiny of operating practices by the EPA but with moderation imposed by Congress
Apparent completion of the FDA mission to inspect approximately 600 egg-producing farms but with a concentration on targeted audits and the use of state personnel

Dr. Peter Holt Makes a Case for Confining Flocks

Dec 21, 2011

Dr. Peter Holt has prepared a comprehensive review of peer-reviewed scientific literature in response to proposed animal welfare guidelines under consideration by the Livestock Committee on the National Organic Standards Board. It has been proposed that more extensive outside access should be mandated for flocks to be eligible for USDA Organic certification. The new regulations would require that “outdoor access must be provided to all poultry with the exception of pullets younger than 12 weeks of age or under conditions of inclement weather or temperature below 50F”.

The apparent justification for this change is to promote “natural behavior” and “improved quality of life” for flocks. A less than charitable justification is that enforcing extensive outside access effectively disqualifies a number of large in-line organic egg production units which deviate from the initial concept of the “family farm” operated under idyllic 19^th Century management.

DeCoster Update

Dec 19, 2011

Readers of EGG-CITE.com may wish to reflect on the following facts:-

John Glessner is suing Jack DeCoster for $40 million for alleged losses sustained as a result of the SE outbreak in 2010.
Jack DeCoster is countersuing, claiming misappropriation during Glessner’s tenure at Ohio Fresh.
Jack DeCoster has issued a statement indicating his intention to withdraw from egg production (see editorial below).

Given the above:-

Why were Glessner and DeCoster visiting a Midwest complex under construction last week to review enrichable cages?
Why does Bakersfield CA keep coming up in relation to DeCoster and his intentions?

DeCoster Apparently Exiting the U.S. Egg Industry

Dec 14, 2011

According to an Associated Press article authored by Ryan Foley which appeared in the December 4^th edition of San Francisco Examiner, Austin “Jack” DeCoster has decided to relinquish his direct involvement in egg production.

Previously DeCoster adopted a policy of obscuring his ownership through surrogates and nominees although now it appears that he has bowed to the inevitable. His Maine operations will be leased to Moark LLC effectively eliminating the deception that a number of the complexes were owned, leased or operated by Dorothy’s and Radlo Foods. The Ohio Fresh facilities have been leased to Dean Family interests. Centrum Valley Farms have taken options on the complexes comprising Wright County Egg Farms, the subject of the August 2010 SE recall.

According to the press report the DeCoster family issued a statement to the Associated Press “while we are committed to working to address outstanding issues related to the outbreak, it is important to note that we no longer operate any of the farms involved and are no longer in the business of egg production”.

Why is the USDA Getting It Wrong on Corn Forecasts?

Dec 6, 2011

A front page article in the December 5^th edition of The Wall Street Journal by Liam Pleven and Tom McGinty draws attention to the recent discrepancy between USDA forecasts and the actual 2011 corn harvest and stock levels. EGG-CITE.com reproduces the USDA-WASDE statistics each month with their forecasts for the critical parameters of harvest acreage, yield and residual stock.

An accompanying commentary provides input from other published sources involved in forecasting either confirming or detracting from USDA figures. Questions most certainly arose for the 2011 harvest which was subject to successive monthly adjustment downwards from July onwards.

The Sparboe Episode

Nov 21, 2011

As with all incidents involving adverse publicity for our Industry it is prudent to collect facts and opinions before preparing commentaries and editorials. The press releases and national television coverage of the alleged mishandling of flocks at complexes owned by Sparboe Farms on Friday 18^th elicited reaction from industry leaders, animal welfare advocates and more importantly the major customers supplied by the company. The Monday following is an appropriate time to provide readers of EGG-CITE.com with a personal perspective based on discussion with colleagues and industry contacts.

At the outset it is difficult to verify the veracity of undercover videos to determine to what extent they may be staged, reflect situations which are taken out of context or represent exaggerated depictions. In this instance the fact that Sparboe Farms has not questioned the location of the alleged acts of neglect and commission, which in any event are not reflective of our industry, suggests an acceptance of reality. This is further reinforced by the press release from the Company President Ms. Beth Sparboe Schnell, who announced the formation of a Sustainability Task Force “so that we can make our Company better” This is a classic case of shutting the barn door after the horse has bolted.

Is the USDA "A Friend of Agriculture?"

Nov 10, 2011

Two issues have surfaced during the past week which raises concern over the intent, motivation and commitment to livestock production by the USDA.

The first arises from a November 2^nd address to the floor of the U.S. Senate by Jerry Moran (R-KS) concerning a USDA initiative to present an “Animal Welfare Scientific Forum”. Although this topic falls within the purview of the Department it is apparent from the memorandum from an Undersecretary of the USDA, dated October 6^th that HSUS fingerprints are all over the program with respect to topics, speakers and content.

Senator Moran correctly characterizes the event as a “forum to promote the agenda of an organization outside the USDA” which is overtly hostile to intensive food production. The exclusion of prominent scientists affiliated to Land Grant Universities is regarded as detracting from the “scientific” component of the title for the proposed forum, supported by taxpayers’ funds.

Commentary-Proposal for Organic Animal Welfare and Stocking Rates

Nov 7, 2011

At the meeting of the Livestock Committee of the National Organic Standards Board to be held November 29^th through December 2^nd a number of radical and long-anticipated proposals will be considered. The principal requirements for housing hens will be:

Laying hens will require 1.5ft²/bird indoor space and 2.0ft²/bird for outdoor runs or pens
Indoor space requirements will have to be met from the interior dimensions of the building. This will effectively disqualify aviary systems since an indoor space allowance of 1.5ft² will be required.
Perching areas and nest boxes will not be used in the calculated floor space
All birds must be able to perch at any time whether on a flat roost surface or perch
Birds must be provided with sufficient exit areas to ensure ready outdoor access
Houses with slatted floors must have enough floor area available to permit dust bathing without crowding
Enclosed spaces with a solid roof overhead do not meet the definition of outdoor access effectively disqualifying “sun porches”
Access to outdoor areas with direct sunlight must be provided during daylight hours when temperatures exceed 50F.

Is the FDA Overwhelmed by Food Imports?

Oct 21, 2011

A student exercise in Journalism has led to a series of three investigative reports on Food Safety. The initial item authored by Brad Racino was posted on October 3^rd and focuses on the magnitude of the challenges faced by FDA in inspecting food products both imported and domestic origin.

Effectively this Agency is responsible for ensuring the safety of 80% of the U.S. food consumed. The FDA employs 1,900 field investigators in the U.S. responsible for 44,000 U.S. food manufacturers. There are however 100,000 additional registered U.S. food facilities not including 200,000 foreign locations. In 2010 the FDA inspected 354 foreign food establishments representing 0.2% of the total of suppliers. The Agency hopes to increase this proportion to 0.5% of foreign food facilities. This goal appears unlikely given that Congress will cut the Agency budget for 2012 by close to $300 million with $35 million removed from food safety programs.

FDA Administrator a No-Show

Oct 13, 2011

An administrator at the FDA Center for Food Safety and Applied Nutrition was a no-show at the 2011 Pennsylvania Sales and Service Conference. Invited to address the egg/layer program by the organizers, he forwarded a slide set and attempted to address the meeting using a cell-phone link. This was totally impractical and his slides were shown by one of the embarrassed organizers reading from the projected power points.

Absent an emergency requiring his presence, either he or a substitute should have been available to address the topic selected and respond to questions from a significant cross section of the US egg production industry. There has been considerable criticism of the FDA as a result of their implementation and execution of the Final Rule on prevention of SE. This event would have been an excellent opportunity to provide a lucid and detailed justification for some of the discrepancies and irregularities associated with the first year of the program.

Looking Backwards – Tardy Reporting by the CDC

Sep 11, 2011

The CDC released the results of surveillance for food borne diseases covering 2008* on September 9^th 2011 <www.CDC.gov>. Yes, you read 2008 correctly. This is an unacceptably delay.

The assembly and publication of statistics is an important determinant of either progress or regression in suppressing this category of diseases. Knowledge of vehicles of infection, incidence rates, location of outbreaks and the number of cases in each incident are critical to defining the epidemiology of food borne infections and developing appropriate counter measures.

Reliable, timely and comprehensive data are the pivotal to defining the epidemiology of disease outbreaks which devolve around the classic parameters of “what, when, who and where”. In this day of computerizes databases it is inexplicable why a federal agency with the resources and mandate of the CDC cannot release data dealing with a class of infections over a calendar year within six months.

Ethanol Semantics

Sep 5, 2011

The U.S. Energy Information Administration reported that sugar cane-origin ethanol may be imported from Brazil since it is classified as an “advanced bio-fuel”.

This is a tacit admission that cellulosic ethanol previously promoted as the future of bio-fuels is “unlikely to meet the Federal targets in the near future”.

This commentator has railed against the unsubstantiated claims for cellulosic ethanol by the Administration and by corn-state politicians to placate opponents of diversion of corn to ethanol production.

S Heidelberg in Ground Turkey

Aug 18, 2011

Both print and electronic media have documented the magnitude and circumstances relating to the recall of ground turkey meat by Cargill Inc. which was announced on August 3^rd. There are a number of aspects of the episode which may have bearing on the U.S. egg production industry.

The first item relates to the serotype of the Salmonella concerned. Salmonella Heidelberg surfaced as an incidental finding when FDA conducted investigations in August 2011 at Wright County Egg Farms in Iowa. At this time, the FDA provided verbal assurances at public meetings that S. Heidelberg would not be selected for specific regulatory action. The emergence of S. Heidelberg as a proven foodborne pathogen may well alter this initial determination by FDA.

Experience with FDA Salmonella Inspections-The first year

Aug 9, 2011

The August 8^th Editorial is longer than usual as it deals with a critical aspect of our Industry. Given the immense cost of compliance and the financial impact of detecting SE, the performance of the FDA during their first year after implementation of the Final Rule is of concern and worthy of a detailed critique. The opinions in this editorial were peer-reviewed by knowledgeable and experienced colleagues who contributed comments and guidance which was incorporated into the text.

The Food and Drug Administration (FDA) Final Rule on Prevention of SE in Shell Eggs during Production, Transport and Storage (The Final Rule) was implemented on July 9^th 2010. A major component of the program involved inspection of farms to ensure compliance with the Salmonella Prevention Plan developed for each farm or complex.

Assessing Organic Production in China

Aug 1, 2011

The People’s Republic of China exports 2 million tons of food products to the U.S. annually. A proportion of this quantity is represented by Certified Organic products required to adhere to the rules of the National Organic Program administered by USDA-Agricultural Marketing Service.

This Agency has recently published a document, 2010 Organic Assessment of China. The 9-page report includes a background to the organic industry in China, methods used to assess the status of the industry, results of product and soil sampling and evaluation of production based on meetings with officials of the Government of China.

We Are Moving On

Jul 8, 2011

Recent announcements and “industry buzz” suggest that the “Jack” Austin DeCoster era is drawing to a close. For too long the operations he controlled or owned directly or through surrogates have been associated with SE outbreaks, exploitation of labor, deviations from appropriate flock welfare and environmental issues.

Unfortunately the negative publicity following disclosures of inappropriate practices and disregard of laws has detracted from the favorable image of the Industry and the positive benefits from the promotional activities of the American Egg Board. Not to mention the $125 million or so decline in revenue borne by producers of generic shell eggs over three months following the September 2010 recall, which was associated with the DeCoster operations in Iowa.

The UEP/HSUS Concordant

Jul 8, 2011

My response to the announcement of the agreement between the HSUS and UEP was deferred until I had the opportunity to review press releases and to confer with contacts in the industry who requested anonymity. This Editorial has incorporated points from conversations and reflect the views of a dispassionate observer.

Most U.S. egg-producers and livestock welfare advocates were stunned by the joint July 7^th announcement regarding the agreement between the UEP and the HSUS on the future of confined housing of hens. These antagonists have faced off over the past two decades, with the UEP fighting rearguard actions through introduction of welfare standards and certification programs and opposing state ballot initiatives intended to effectively ban cages. It is instructive to speculate on why there has been an outbreak of “realpolitik” among the two camps.