Alabama Poultry, May/June 2008

May/June 2008 – VOL. 3 NO.3

AP&EA P.O. Box 240 Montgomery, AL 36101 Address Service Requested

Non-Profit Org. U.S. Postage PAID Montgomery, AL Permit No. 796

Board of Directors Officers Jack Sherwood, President, Enterprise* Ken Taylor, Vice President, Anniston* Fred Cespedes, Treasurer, Hanceville* Wendell Shelton, Secretary, Boaz* Ricky Walker, Immediate Past President, Snead* Directors Johnny Adcock, Woodland Ronnie Adrian, Collinsville George Attwood, Anniston Dale Carroll, Boaz Roger Chappell, Cullman Gary Davis, Montgomery Melissa Durbin, Birmingham Randall Ennis, Huntsville Tim Esslinger, Eufaula Dale Gambrill, Snead Harold Hunt, Gadsden Spence Jarnagin, Huntsville* Ted Lankford, Athens Richard Lusk, Huntsville Dennis Maze, Horton Todd McMahen, Dothan John Pittard, Guntersville* Tom Powell, Montgomery John Roberts, Cullman Kenneth Sanders, Brundidge Roddy Sanders, Gordo Taylor Steele, Albertville Phyllis Thomas, Russellville Mike Tamimi, Enterprise Stanley Usery, Athens Mack Watson, Pineapple Advisors Dr. Don Conner, Auburn University James Donald, Auburn University Dr. Joe Hess, Auburn University Dr. Tony Frazier, Montgomery Troy Newton, Montgomery Perry Oakes, Auburn

*Executive Committee Members

AP&EA STAFF Johnny Adams – Executive Director Wanda H. Linker – Administrative Director Wes Cumbie – Membership Director Huck Carroll – Communications Director Jennifer Shell – Support Director

Alabama Poultry is published by the Alabama Poultry & Egg Association 465 South Bainbridge Street Montgomery, AL 36104 Phone: 334-265-2732 Fax: 334-265-0008 Send editorial and advertising correspondence to: Alabama Poultry Editor P.O. Box 240 Montgomery, AL 36101 Advertising rates and closing dates available upon request.

Editorial matter from sources outside AP&EA is sometimes presented for the information and interest of our members. Such material may or may not coincide with official AP&EA policy. Publication does not necessarily imply endorsement by AP&EA.

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President’s MESSAGE

t hardly feels like a year has passed since I was elected to serve as the president of AP&EA. It has been a busy year for the Association and a year of progress for the poultry industry. We were able to achieve many goals and overcome many challenges by working together through our association.

Today we communicate with more of our extended members and supporters by making sure that company, allied leaders, and decision makers receive our magazine and are aware of the many seminars, workshops, and networking events that our association sponsors.

We have worked this year communicating the needs of our industry to the researchers and faculty at Auburn. The National Poultry Technology Center was officially created earlier this year. This Center will search for ways to help our poultry farmers become more efficient and productive through improved technology and enhanced techniques.

We worked with our elected officials and were successful in making sure that the poultry industry was represented on the Alabama Immigration Task Force. Past AP&EA President Ricky Walker and AP&EA board member and poultry producer Dennis Maze were appointed by the governor and lt. governor to serve on this task force that made policy recommendations to the Legislature.

Late last year we discovered that many of the contractors building and equipping poultry houses were not properly licensed. As a result, several poultry house construction projects were halted. This came at a time when there were expansion projects going on throughout the state. Growers had construction notes that were accumulating interest and poultry companies had increased hatchery production with nowhere to send the chicks. Through the Association we were able to work with the state contractor’s board and implement an expedited licensing approval process in order to avert a housing crisis.

Earlier this year we worked with Public Service Commissioner Susan Parker and her staff in identifying alternative energy sources and we continue to monitor these projects in an effort to cut costs for our farmers.

We were very involved in this year’s legislative session where we led the effort to deal with the growing issue of reforming our state and nation’s immigration policy. In a year that saw many states taking drastic measures in passing unrealistic and unworkable immigration bills, our association along with other agriculture and business organizations was able to convince the Legislature to react responsibly in dealing with immigration reform. We will continue to educate our elected officials and the citizens of our state that any successful immigration solution must be comprehensive if we are to be successful.

Finally, I was very pleased with this year's “Evening of Fun.” It was a great success and was enjoyed by many of our members. The success that we have enjoyed this year could not have happened without the great support that we received from our members, our committees, and our board of directors. I am honored to have had the privilege to serve this industry and the membership of the Association. I want to thank all of you for your support and assistance in helping me have a successful year serving our industry.

w w w. a l a b a m a p o u l t r y. o r g

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Governmental Affairs

New State Diagnostic Lab Opens in Boaz Boaz, June 24 – Commissioner Ron Sparks and Sen. Hinton Mitchem cut the ribbon opening the MitchemSparks State Diagnostic Laboratory.

The new facility, located at 1833 Industrial Blvd. in Boaz, is a 5,069 square foot state-of-the-art livestock and poultry diagnostic lab.

Alabama is on the cutting edge of diagnostic technology designed to protect Alabama citizens from pos-

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sible transmittable disease as well as timely alerts to human, animal, or poultry disease concerns. In 2007, the Boaz lab performed 206,991 tests and approximately 4,709 necropsies. The primary case load is poultry/avian, but cattle are the second largest group. Deer, goats, equine, sheep, hogs, exotic and companion animal samples are also received at the Boaz lab. The lab also

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works closely with state and federal wildlife agencies and law enforcement on testing and surveillance measures.

“I am so proud that Alabama has been able to lead the way with our diagnostic laboratories,” said Sparks.

“We have an excellent staff in Boaz.

They are highly skilled in their areas of expertise and now we have a facility to match their capabilities.”

This is the third diagnostic lab to be built in Alabama in the last four years. Having this new facility in Boaz is expected to help farmers tremendously in north Alabama.

The previous facility could not accommodate large animals easily and biosecurity was a concern. The new lab will provide better isolation and biosecurity in cases of a disease outbreak such as avian influenza or footand-mouth disease. The new lab will continue to receive poultry and companion animal samples, but they will also be able to handle much larger livestock samples. The bigger facility will also help to meet increased consumer demands in testing for avian influenza and other diseases.

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Governmental Affairs FDA Bans Extralabel Use of Cephalosporins in Food Animals July 3, 2008 – Citing a risk to public health, the U.S. Food and Drug Administration today prohibited the extralabel use of cephalosporin antimicrobial drugs in food producing animals.

The prohibition will take effect Oct. 1; the agency will accept comments on the rule through Sept. 2 at www.regulations.gov (search for Docket No. FDA-2008-N-0326).

The FDA reports it has gathered evidence showing that “the extralabel use of cephalosporins in foodproducing animals is likely to contribute to the emergence of resistance and compromise human therapies.”

Of particular concern to the FDA are expanded-spectrum cephalosporins, notably ceftriaxone and cefotaxime, which are the drugs

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of choice for invasive Salmonella infections in pediatric patients.

The FDA believes that some cephalosporin use in animals is contributing to an increase in cephalosporin-resistant human pathogens.

Although the FDA reported that there was only limited information regarding the extent of extralabel use of the antimicrobials in food-producing animals, it said it is evident that such use is occurring.

The rule affects only the extralabel use of the antimicrobials.

Certain cephalosporins, including Ceftiofur, are approved for use in animals. Some of the uses approved for some of these compounds include respiratory disease in cattle, swine, sheep and goats, respiratory tract infections in horses, skin and

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soft tissue infections in cats and dogs, and the control of “early mortality associated with Escherichia coli infections in day-old chicks and poults,” the FDA reported.

“Although ceftiofur is not used in human medicine, the observed trend of increasing resistance to this drug in human isolates highlights concerns about the movement of food borne bacterial pathogens between animals and humans,” the FDA reported, noting an 18.8 percent prevalence of ceftiofur resistance among Salmonella slaughter isolates for cattle, up from none in 1997, when the National Antimicrobial Resistances Surveillance System began monitoring such isolates.

The prevalence also increased in swine, chickens and turkeys, according to the FDA.

Economic News

Economic News

Higher Food Prices Ahead

Years of drought have plagued Alabama’s corn farmers, but this year’s floods in the mid-west will have a devastating effect on America’s consumers.

By Jacqui Fatka “Feedstuffs,” June 23, 2008

Food prices are on their way up and analysts are expecting higher increases ahead.

Recent flooding in the Midwest has exacerbated already tight domestic corn and soybean supplies, limiting U.S. farmers' ability to produce enough to meet growing domestic needs.

The U.S. Department of Agriculture estimated corn demand at 12.5 billion bushels. About 5 billion would be used to feed livestock, 4 billion for ethanol production, 2 billion overseas and the rest for other food, seed and industrial uses.

Earlier this month, USDA's latest projections estimated this year's corn crop at 11.7 billion bushels, but this does not account for recent flood damage. Tight supplies will require market prices to go higher to reduce demand.

The government's Consumer Price Index for all food rose 4 percent in 2007 after increasing at a rate of 2.4 percent annually during the previous two years. Last week, several analysts increased food price estimates, calling for 5-9 percent increases this year.

Bill Lapp, president of Advanced 8

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Economic Solutions, projects a 9 percent increase from 2009 to 2012 as corn reigns as king in the marketplace and drives up other commodity prices with it.

Dave Miller, director of research and commodity services with the Iowa Farm Bureau Federation, said while the price of corn has gone up $1.50 in the last two weeks in Chicago, 111., it should not directly affect the price of most of the food at the grocery store.

Wheat production is up in the U.S. and globally, and that has a larger impact on bread and cereals than corn, he said. However, since nearly half of Iowa's corn (and all of the byproduct of ethanol production) is used to feed livestock, consumers can expect meat prices to fluctuate.

“In the short term, pork and beef prices may initially drop as livestock farmers liquidate herds because feed costs are too high for them to hold out, but expect those prices to climb at the meat counter in about six months,” Miller said.

Several livestock representatives, last week said the industry is in “round two” of liquidation because feed prices continue to climb.

James Herring, president and chief executive officer of Friona InAlabama Poultry

dustries, the fourth-largest U.S. cattle feeding operation, said the public will need to pick up an additional 20 percent increase in beef prices by the fourth quarter. If producers can't pass on that cost, production will have to be curtailed more.

Rod Brenneman, president and CEO of Seaboard Foods, the thirdlargest pork producer, expects significantly higher prices at the consumer level in late 2008 and early 2009 as fewer supplies of pork are available due to ongoing liquidation efforts.

Revisiting mandates Food and livestock groups continued their call for the government to reevaluate ethanol policies — especially the renewable fuels standard (RFS) mandate — in light of the recent flooding.

Last week, the Environmental Working Group released a report, “Biofuels & Bad Weather: America's Food-to-Fuel Gamble,” which said the increased corn production needed to meet larger corn ethanol production banks on good weather, which has not occurred this year.

Earlier this spring, Texas requested a waiver of the 9 billion-gallon corn based ethanol mandate of the RFS. Environmental Protection Agency Administrator Stephen Johnson can grant the request if he sees that the mandate poses “severe economic harm” to a state, region or the nation.

EPA's public comment period regarding the waiver request closed June 23. A final decision on the request should be known by the end of July.

The true impact of reducing the mandate on food prices remains unknown, explained Paul Hill, chairman of West Liberty Foods and National Turkey Federation chair-

man, “but we haven't seen the full price increases. If we can stabilize the upward spiral, we can move these price increases through the system in a proper manner. This has the whole industry caught off balance."

Livestock group representatives said the reduction in corn for ethanol won't bring prices back down to $34. Hill said the mandate reduction might lead Chicago Board of Trade prices to back off $1-2 from their current highs of $7-8. Previous studies have indicated that prices would drop potentially not even 50 cents.

In support of the RFS, the American Farm Bureau Federation wrote in its letter to EPA that although Texas officials assert that the state's livestock sector is experiencing severe harm from increased corn prices caused by the RFS, no data linking the two are provided.

Higher corn prices are caused by numerous factors, the bureau wrote.

These include record export demand fueled by a weak dollar, record domestic feed use, a flood of speculative money into the commodity markets and dramatic price increases for crude oil and energy.

Food price investigation A coalition of farm and commodity organizations urged congressional leaders to promptly initiate comprehensive hearings to examine all of the reasons for increased retail food prices. The co-coalition urged the hearings to focus on the underlying causes of higher food prices, which sectors of the economy are responsible for the increase and whether any of them have benefited unduly from such price hikes.

In a letter to House and Senate leaders, the coalition noted that recent

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media reports have attributed higher commodity costs paid to farmers as the cause of higher costs passed on to consumers.

“Such a perspective is a great disservice to the general public because it ignores the facts behind higher prices. Equally important, however, is the concern that, left unchallenged, such reports will help to shape public opinion and public policies in ways that are detrimental to U.S. agriculture,” coalition members wrote in a letter.

While recognizing that higher retail food prices are affecting many people at home and abroad, the coalition told members of Congress that pointing the finger only at farmers, whose share of the food dollar is small compared to other entities, is wrong and does not provide the true picture of what is driving up food costs.

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Association News

Brewers Recognized at Ag Graduation Breakfast

Johnny Adams, Jane Brewer, Dr.Bob Brewer and the engraved omelet pan.

(Left) Dr. Joe Hess discusses litter management.

(Below) Ray Hilburn explains a point.

May 10, 2008 – Auburn – As a throng of new Auburn University College of Agriculture graduates and guests were preparing to descend on specially prepared omelets at the College of Agriculture Graduation Breakfast, a couple of special folks were recognized for outstanding service over the years to the AP&EA sponsored event.

Jane Brewer and her husband, Dr.

Bob Brewer were awarded an engraved copper omelet pan by Dr. Don Conner, head of the department of poultry science at Auburn and AP&EA Executive Director Johnny Adams. Dr. Brewer is a former department head of the poultry science department and Jane is a home economist. She was employed with the Alabama Poultry & Egg Association for a number of years.

Litter Source and Management Seminars Held May 2008 – The Auburn University poultry science department went on the road to conducted a series of grower seminars around Alabama to discuss alternate litter sources for broiler growers and review other litter management techniques that might help growers manage built-up litter to their advantage. With the high cost of litter replacement, good litter management techniques are a must as growers reuse litter across a

number of growouts.

Topics covered included: Alternative Litter Sources for Broilers – Sarge Bilgili; Litter Treatment to Control Ammonia – John Blake; Windrow Composting for Litter Reuse or Movement – Ken Macklin; and Litter Management Decision Making – Joe Hess.

Seminars were held in Crossville, Moulton, Troy and New Brocton.

Auburn Hosts Egg Processors Meeting May 28, 2008 – Auburn University Egg producers from around the country gathered to hear members of the poultry academic community talk about the research going on at their particular schools and general improvements in the industry in management, hardware and practice.

Universities represented were: Dr. Pat Curtis (above) of Auburn Univer- University of Georgia, North Carsity’s poultry Science department works in olina State University and Auburn the area of poultry and egg products safety University. There were also repreand quality. sentatives from the USDA and FDA discussing research priorities and She announced that the National Egg Products School will be held at Auburn Univer- updating regulations.

The meeting was held in the sity on September 29 - October 2, 2008. For more information, call 334-844-2634 poultry science farm’s new conference room.

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Association News

“Hopefully, God will bless our son with success and the kind of life we have been blessed with – and the future of the family farm will continue on with his children.”

Wayne Woodham

Jan Woodham loves animals. Whether they are large or small, furry or feathered, it doesn’t matter.

Once she had to hand nurse a bull calf that she named Valentine. Valentine stayed in the yard with the Woodham’s three dogs.

Jan says that she knew that she had trouble when she looked out the window one day and saw Valentine chasing the mailman along with the dogs.

Valentine was put out to pasture, where he stayed for 13 happy, but unprofitable, years as a very large pet, trotting over to see Jan whenever she came for a visit.

When Jan tells the story, Wayne, who did not grow up with pets, just shakes his head and rolls his eyes. But, I don’t think that Wayne would want her to be any other way.

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Wayne Woodham is right at home on the farm, in fact, he was raised on the land that he and Jan, his wife of 23 years, with their son, Ryan Rhoades, farm. Farming comes naturally to Wayne. Except for a stint working at the Sony plant in Dothan, he has always been a full-time farmer. Jan, however has a different story.

She was born and raised in Atlanta, but her parents were from Slocum, in nearby Geneva County. Every summer, she would come to visit her grandmother on the farm in Slocum. She learned to love animals while doing farm chores with her grandmother. When she was about to enter the 10th grade, her family moved away from the big city and back to rural life in Slocum.

The couple met while they were both working at the Sony Plant in Dothan. After a short courtship, they were married in 1985. Wayne inherited a ready-made family with Jan’s two children from a previous marriage.

Samantha was 5 and Ryan was just 3. They have blended well.

Both children were very young when the Woodhams built their first three 40 x 400 foot broiler houses in 1989 and started growing for Perdue Farms.

As soon as they were old enough, Samantha and Ryan began to help with the chickens. Ryan loved it, but Samantha gradually realized that the poultry profession was not for her.

Samantha’s first great adventure came as a freshman at the University of Tampa, where she decided she needed to be closer to home. Her second great adventure came shortly after she graduated from Troy University. Wanting to become a Russian linguist, she went to live with a family in Moscow to study the language. She had hardly settled in, when 9/11 happened. With growing Alabama Poultry

tensions worldwide, her student visa was not renewed and she came home.

Not even a terrorist attack could keep Samantha on the farm for long.

She enrolled in Jones Law School at Faulkner University in Montgomery.

She is now a lawyer, married to another lawyer, Brandon Sellers. They live in Greenville and have a 9-month-old daughter, Julia Grace.

Back on the farm, Ryan, 27, lives at home with his parents. This is not, however, a “Failure to Launch” situation. Ryan has plans for his own place.

A nearby poultry farm is for sale and Ryan has bank approval, but is waiting for Perdue’s blessings before he seals the deal. Even when that happens, he will continue to help his mom and dad on their three farms.

The Woodhams farm more than 900 acres. Row crops of peanuts, cotton and corn account for 600 of those acres. They have 200 head of brood cows on 200 acres, with the final acreage devoted to hay and oat production. In 2003, with the drought taking a toll on profits from the other farming operations, they upgraded their existing poultry houses and built four 50 x 500 foot houses. This investment has been very profitable for the Woodhams. They regularly harvest four and a half batches a year from their houses, with a 94 percent livability rate for average 8.33 pound bird.

Jan has always had the primary responsibility for the chickens, and she wants her chickens to be happy. She takes a very intuitive approach to raising chickens. If the temperature doesn’t seem right to her, no matter what the thermometer says, she makes it right. If Jan is happy, you know the chickens must be happy. And, it certainly appears that a happy chicken is a very profitable chicken.

When the demands of farming give them some leisure time, Wayne and Jan love to follow NASCAR. They have taken their RV places like Daytona and Talladega to see their favorite driver, Dale Earnhardt, Jr. Wayne and Ryan like to hunt dove. Ryan also has a collection of arrowheads that would make the archaeologists at Moundville jealous.

They are also very involved with their church, Chalkhead Baptist, where Jan teaches Sunday School and Vacation Bible School.

The Woodhams are a happy and satisfied farm family. They have faced their share of hardships, but they remain cheerfully hopeful for the future.

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Jan and Ryan pose on Jan’s tractor.

Ryan celebrated his 27th birthday the day that I took these pictures. I could not resist the temptation to ask them if they had seen the movie “Failure to Launch.”

Jan replied, “Oh, yes!” and cut her eyes at Ryan, who just ducked his head and grinned.

This family obviously loves each other and enjoys being together, whether working or playing.

Congratulations Wayne & Jan Woodham AP&EA 2008 Farm Family of the Year

Wayne serves as: • President Dale County Farmers Federation • Dale Cty. Cattlemen’s Association Board Member • Alabama Cattlemen’s Association Board Member • Wheat and Grain Commodity Committee • Dale County Chairman Poultry Commodity Committee • Alabama Poultry & Egg Association Member • Farm Service Administration County Committee Jan has just been elected as: • Chairman Dale County Poultry Committee

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May 16, 2008, Lake Guntersville – Like Captain Ahab and his pursuit of the great white whale, so too was Harold Holland in his pursuit of “Moby Bass,” and if he didn’t get him this time, he came darn close. From the murky depths of Lake Guntersville, Harold pulled an 8.7 pound monster to win $100 and help his team win the AP&EA “Big Bass” fishing tournament and $200.

Teamed with his son, Wade, the Holland team bested the second place team ($130) of Roger Landers and Kevin Allen by one ounce shy of seven pounds, with a total of 22.7 whopping pounds. Third place finishers ($80) were Tony Butts and Eric Wilborn.

All contestants received gift bags containing lures, tackle boxes, hats and other goodies. After the tournament, a drawing was held for rods, reels, coolers and other great fishing prizes.

Many thanks to AP&EA’s VIP sponsors for making the event both competitive and fun.

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The shouts could be heard across the golf course. It could mean either one of two things, a heart attack or a hole-in-one. Fortunately it was the latter. On the 8th hole, J. B. Dabbs sunk the big one and propelled his GSM Steel team into a commanding lead and an eventual first place in the annual EOF Poultry Classic at Bentwood Golf Club.

Poultry pros from around Alabama got together on the first Friday in June to test their mettle on the greens and fairways. Clouds of aromatic second-hand smoke billowed over several groups as premium cigars were the order of the day, but the golfing was serious.

A sumptuous catered lunch awaited the participants in the clubhouse, as scorecards were turned in and tabulated.

First through third place teams received Edwin Watts gift certificates and closest to the pin winners (J. B. Dabbs was one for sure) received cash prizes. A set of Cobra golf clubs, donated by Southwestern Sales, was given as a door prize to Frankie Daniel of American Proteins.

The tournament was the kick-off event in the AP&EA “Evening of Fun” weekend and was graciously sponsored by AP&EA’s VIP Sponsors and 18 individual hole sponsors.

May/June 2008

Alabama Poultry

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Even as the roadies were putting the final touches on the entertainment portion of the AP&EA “Evening of Fun” over at the Birmingham-Jefferson Convention Center, the poultry growers were gathering to do some business. It was time to elect directors to serve on the AP&EA board for the coming year, to present the 2008 “Farm Family of the Year,” and to view a presentation “On-Farm Energy Efficiency” by Mike Roden of the NRCS and a short presentation on earning CAFO credits by Frank Owsley.

Johnny Adcock, chairman of the AP&EA Grower Committee, served as the master of ceremonies, and welcomed everyone. He thanked the more than 50 growers in attendance for thier commitment to the industry and to the association. He then invited Dorman Grace to the podium for a special introduction.

Grace introduced one of Alabama poultry’s most influential friends, Congressman Robert Aderholt. Standing at the back of the auditorium, Congressman Aderholt acknowledged the introduction and applause with gracious praise for the poultry industry. Then, it was back to business.

Adcock introduced AP&EA Vice President Ken Taylor to present the Nominating Committee Report. AP&EA bylaws require that the growers be represented by six directors. Two seats were up for election. The nominating committee recommended that Stanley Usery be re-elected to a second two-year term and that Billy Gilley of Cullman be elected for a first term.

The floor was opened for additional nominations, but none were forthcoming. Taylor then declared the nominations be closed. On a hand vote, the nominees were elected without dissent.

Next on the agenda was the introduction of the AP&EA 2008 Farm Family of the Year. This year’s winner, nominated by their integrator, Perdue Farms, was Wayne and Jan Woodham of WayJan Farms in Dale County.

Read about Wayne and Jan on page 12 and 13 of this magazine. They came on stage with their son, Ryan Rhoades, who works with them on the farm.

The Woodhams have three 40 x 400 foot houses and four 50 x 500 foot broiler houses, growing an 8.33 pound bird.

After the presentation of the Farm Family of the Year, Mike Roden began his part of the program titled “On-Farm Energy Efficiency.” Through the discussion he covered topics such as: the need to be concerned about energy efficiency, available assistance and the Section 9006 Grant Program.

(There is a direct link to the to the USDA Renewable Energy and Energy Efficiency Program on our website.)

After Roden finished, Frank Owsley of the Alabama Cooperative Extension System spoke on the importance of earning CAFO continuing education credits.

At the conclusion of the program, a picnic supper was served for all in attendance. By this time, everyone was ready for the fun part of the “Evening of Fun!” Alabama Poultry

Johnny Adcock

Johnny Adcock and the Woodhams

Mike Roden

Frank Owsley Dorm an G r

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Con g and ressman his c hildr Aderholt en

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It was “road-house” hot in Birmingham that Saturday night in June.

The “good ole’ boys” and the “good ole’ gals” were ready to do some family friendly honkey tonking at the Birmingham-Jefferson Convention Center. All that was missing were peanut hulls on the floor and waitresses in “Daisy Dukes.”

It all got started as the gates were opening. A fiesty little brunette took to the stage and, as the seat were filling, she started nailing hides to the wall. With a sound that was somewhere between Janis Joplin in her prime and Linda Ronstadt, who was always prime, her name: Bridgette Tatum.

This won’t be the last that you hear that name. Bridgette sang a number of songs including “Hold On To Me,” “That’s Love, Y’all” and “Some Things Need to Be Said.” She finished with a wild and raucous “I Like My Cowboys Dirty.” To see the young folks crowding the front of the stage so early in the evening, you got the idea that they were really enjoying Bridgette and would like to see her come back again.

Alabama Poultry & Egg Association Executive Director Johnny Adams welcomed everyone and introduced former AP&EA President Jeff Burroughs of Cullman, who delivered the invocation. Then it was time for Bridgette to return for a stirring rendition of the “National Anthem.”

AP&EA President Jack Sherwood came on stage to introduce Association Vice President Ken Taylor and the Executive Committee. Next, Executive Director Johnny Adams introduced the special dignitaries in the audience including Associate Justice of the Alabama Supreme Court Harold See, Jr., Judge Terri Willingham Thomas of the Court of Civil Appeals, Judge Greg Shaw of the Court of Criminal Appeals, along with his wife, State Auditor Sam Shaw. From the Alabama Legislature, Rep. Gerald Allen of Tuscaloosa, Rep. Mike Curtis of Florence, Rep. Richard Lindsey of Centre, and Rep. Steve Hurst of Munford were recognized.

Congressman Robert Aderholt, representing the 4th Congressional District also was in attendance. The Alabama poultry industry is fortunate to have such good friends.

The next item on the program was one of the most special – the announcement and introduction of the AP&EA 2008 Farm Family of the Year. Executive Director Johnny Adams welcomed to the stage Wayne and Jan Woodham of Ozark, and their son, Ryan Rhoades, who works with them on the farm. Wayne and Ryan looked a little shy in front of the large crowd, but Jan Woodham’s smile lit up the auditorium.

Jake Owen and his group were the first to take the stage, and to use a line from one of his songs, “It was wilder than any eight second ride!”

Jake took ownership of the stage and held it with a tight grip. He was everywhere on the stage making contact with the kids down front. Jake sang songs from his CD Startin’ With Me, including “The Bad in Me,” “Something About a Woman,” the plaintive title track, “Startin’ With Me,”

and the sad and reflective ballad “Ghosts.” He really rocked the house with “Eight Second Ride” and “The Bottle and Me.” But, his hit single “Yee Haw,” sent the crowd wild.

After Jake left the stage, the intermission was welcomed by all. It gave the crowd a chance to breath again and get some refreshments, then buckle in for the next act as the roadies did their jobs onstage.

Then she was there, the girl that they had all come to see. The winner of three CMT awards and an American Idol semifinalist, a true American sweetheart, Kellie Pickler. And she was dazzling, spunky, tough and vulnerable all rolled into one delightfully cute and sassy package. As she danced around the stage to her own music, her face was like quicksilver, expressions changing constantly. Even to die-hard, non-American Idol aficionados, it was easy to see why she had become such a an American sweetheart.

Her songs rocked, but like the title cut from her album of the same name, “Small Town Girl,” and several others, were, at times painfully personal. Songs such as “My Angel,” about the grandmother who raised her, and “I Wonder,” about the mother who abandoned her, certainly put a lump in your throat. The country rocker emerged in “One of the Guys,” “Things That Never Cross a Man’s Mind, “ “Gotta Keep Moving” and her signature, “Red High Heels,” that she sang for a show ending encore.

She also paid tributes to two of her own idols, Tammy Wynette and Dolly Parton, with Tammy’s “Stand By Your Man,” and Dolly’s “9 to 5.” After the show, she stayed on stage, signing autographs and chatting with her fans.

Many thanks to Bridgette, Jake and Kellie for giving us a concert to remember.

The show band Escalade turned out to be just as smooth and classy as its General Motors name sake as they laid down some great dance music at the Sheraton Ballroom. The dance floor was kept full with great music from the ‘60s and ‘70s with a great mix of soul and rockn’ roll. It was well after one a.m. when the poultry partiers decided to call it an evening. Our AP&EA Farm Family of the Year kept dancing until the band’s last song.

You can kick yourself for missing all the fun this year, or, even better – you can make plans to be at the next AP&EA “Evening of Fun.” Hey, you gotta be there!

To see and download photos of this year’s “Evening of Fun” visit us at www.alabamapoultry.org

Membership News

Many thanks to our great sponsors for making AP&EA’s “Evening of Fun” possible!

PLATINUM

Bred for performance AlaTrade Foods, LLC Aviagen, Inc. Cobb-Vantress, Inc. Evonik-Degussa Hill Parts Hubbard LLC

GOLD

Advanced Poultry Equipment & Supplies, Inc. Alabama Power Company Alpharma Biomune Company Elanco Animal Health Federal Land Bank Assn. of N.A

Intervet /Schering Plough International Paper K Supply Company, Inc. Marel Food Systems Sand Mountain Electric Cooperative

SILVER

When it comes to performance, every Ross bird is a star.

Federal Land Bank Assn. of S.A. Franklin Industries, Inc. Ivesco, LLC Pfizer Animal Health The Vincit Company Walco International Inc.

FLBA of North Alabama Pays $2.39 Million in Patronage Cullman, Ala. — The Federal Land Bank Association of North Alabama, FLCA, a rural lending cooperative headquartered in Cullman, recently mailed checks to its stockholder-borrowers as part of its patronage program. Patronage refunds to customers totaled $2.39 million.

“We are pleased to announce the return of 2007 earnings in the amount of $2.39 million,” said Loyd Rutherford, chairman of the co-op’s member-elected board of directors.

“The board has always strived to live by true cooperative principles, including sharing our earnings with our borrowers. Hopefully, we can continue to pay patronage as the coop continues to do well.”

The board has approved a return 18

May/June 2008

of member’s equity every year since 1996. This year’s payment effectively lowers their stockholders’ average interest rate for 2007 by 70 basis points, or 0.70 percent.

The Federal Land Bank Association of North Alabama is a lending cooperative that specializes in fi-

nancing rural real estate. The co-op has financed Alabama’s farmers, agribusiness firms and rural residents for more than 90 years. The Land Bank has offices in Albertville, Athens, Cullman, Talladega and Tuscumbia.

www.aviagen.com

Alabama Poultry

an Aviagen brand

With the outside temperatures in the high double digits, it won’t be long before that century mark is in sight. It’s time to keep the recipes simple and the cooking time to a minimum and maximize that good old summertime taste.

Ingredients

Triple Citrus Chicken Breast

6 skinless, boneless chicken breast halves 1 tsp grated lemon zest 1 tsp grated orange zest 1 clove garlic, peeled and minced 1 tbls chives, chopped 1 tsp salt 1/4 tsp black pepper 3 tbls fresh lime juice 2 tbls fresh lemon juice 1 tbls honey 1 tsp balsamic vinegar 2 tbls vegetable oil 2 tbls heavy cream

From "MMMMiami" by Carole Kotkin and Kathy Martin*

Instructions: • Between two layers of plastic wrap, pound chicken breasts with meat mallet to an even thickness of about 1/2 inch. Place chicken in large, self-sealing plastic bag.

Orange Balsamic Chicken Salad Chicken Part: Precooked breast strips | Preparation Method: Assemble

Ingredients Chicken Salad: 1 package precooked grilled chicken breast strips (about 2 cups) 1 yellow bell pepper, cut in 4 large pieces, seeded 1 bag pre-washed salad greens mix (about 8 ounces) 1/4 cup crumbled Gorgonzola cheese 1/4 cup chopped walnuts 1 large tomato, diced Dressing: 1/4 cup extra-virgin olive oil 1/8 cup orange juice 1/8 cup balsamic vinegar 1 tbls Dijon mustard

Instructions • Place cooked chicken breast strips in large bowl. Cover with ¼ cup vinaigrette dressing, toss well to coat and marinate at room temperature for one-half hour. Reserve remaining dressing for salad.

• Preheat broiler. Place pepper pieces under broiler and cook, turning, until beginning to char, about 3 – 4 minutes per side. Remove from broiler, cool and slice into strips.

• In serving bowl, combine chicken strips, pepper strips, lettuce leaves, Gorgonzola cheese, walnuts and diced tomato. Toss very well to mix. Add additional salad dressing and toss again to coat.

• Orange Balsamic Vinaigrette: In small bowl, whisk together 1/4 cup extra-virgin olive oil, 1/8 cup orange juice, 1/8 cup balsamic vinegar and 1 tablespoon Dijon mustard.

Makes 4 servings

20

May/June 2008

•. In medium bowl, whisk together lemon zest, orange zest, garlic, chives, salt, pepper, lime juice, lemon juice, honey and balsamic vinegar. Pour into bag, over chicken. Close bag securely and turn to distribute marinade.

Refrigerate at least 2 hours or as long as 24 hours, turning occasionally.

• Remove chicken from bag. Shake excess marinade into bag and reserve.

• In large, heavy, nonstick skillet over high heat, warm oil. Saute chicken until browned, about 2 - 3 minutes per side. Lower heat to medium and continue cooking until chicken is done, about 2 more minutes per side. Transfer to serving platter and cover to keep warm.

• Pour reserved marinade into skillet and bring to a boil over high heat. Scrape the bottom of pan with a wooden spoon to loosen any browned bits. Add any liquid that has collected around chicken and let mixture boil for 2 minutes, until slightly thickened and reduced. Stir in cream; cook for another minute. Pour hot sauce over chicken breasts. Garnish with slices of lime, lemon or orange.

Makes 6 servings.

California Chicken Salad Ingredients 3 2 3 1/4 1/3 1/3 1/8 1/8 2

cups chicken breast meat, cooked, diced cups cherry tomatoes, halved scallions, chopped tsp cayenne pepper cup horseradish cup bacon sour cream dip tsp salt tsp pepper avocados, peeled, pitted and sliced

Instructions: • In a medium bowl, stir together the chicken, cherry tomatoes, scallions and sour cream dip. Season with salt and pepper. Arrange avocado slices on four salad plates. Spoon chicken salad over avocado and serve.

Makes 4 servings.

Alabama Poultry

Alabama Poultry

May/June 2008

21

Practical Applications

Membership News Aviagen Completes 45th Production Management School

June 26, 2008 - Huntsville, Ala.– Aviagen, the world’s leading poultry breeding company, recently completed its annual production management course. This four-week workshop brings participants from around the world together to learn the latest information in all areas of poultry science and its practical application to managing successful breeder and broiler operations.

Aviagen is proud to have hosted a record number of attendees at this year’s course. Thirty-three participants representing 19 different countries attended Aviagen’s 45th Production Management School held at the University of Alabama in Huntsville’s Bevill Center from June 2nd to June 26th. During the course, attendees from Argentina, Bangladesh, Holland, Honduras, Indonesia, Japan, Jordan, Kenya, Korea, Mexico, Nepal, Nicaragua, Nigeria, Pakistan, the Philippines, Saudi Arabia, Scotland, Thailand, and Turkey came together to learn from Aviagen professionals and industry experts through a series of 22

May/June 2008

presentations, labs, and workshops.

A number of industry professionals including Aviagen staff, consultants, suppliers and university professors spoke on a variety of issues related to the care and management of poultry. Topics included genetic and pedigree selection practices, general poultry production principles, hatchery management, veterinary and health issues, nutrition, environmental management and processing. Because of the many different countries and climates represented, the school provided a great opportunity to learn not only from instructors but also from each other’s experiences.

In addition to the comprehensive education program, the attendees had many opportunities to see the local sights and engage in leisure activities that included soccer games, visits to Nashville, shopping and white water rafting. Also, a graduation ceremony and dinner was held Thursday, June 26th where the “students” were presented with their certificates of completion.

Alabama Poultry

Attendance at the Aviagen School has become highly competitive with record numbers of applicants all vying for the opportunity to attend. The success of the school has been proven year after year as many of its past graduates have been promoted to leadership positions within their respective companies, often sighting their attendance at the school as a major contributor to their success. It is also a testimony to the value of the course that each year, companies are willing to send their most valuable employees to the United States for a month to participate in this educational event.

The success of the Aviagen School is due in large part to the hard work and dedication of course managers Neal Scanlon and Amy Boller. They work tirelessly to arrange speakers, venues, activities, transportation, meals and lodging for all of the course participants. Over the last 45 years, nearly 900 men and women from well over 100 countries have completed the Aviagen Production Management School.

Ken Macklin, Joe Hess and Joe Giambrone Auburn University

Water is the single most important nutrient required by all living things; however it is often overlooked and taken for granted. As far as poultry production is concerned, providing good clean water can make the difference between a small settlement and a large one. If water quality is suspect, it is best to have it tested for pH, mineral content and bacterial levels. This testing is even more urgent now with farmers looking to alternative sources of water due to the drought.

Ideally the pH of the water provided to poultry should be 7, but a range of 6.0-8.0 is suitable for growing chickens. Water pH higher than 8 can be corrected by adding acid to the water until the pH is around 7.

Research has shown that chickens are tolerant of lower pH. So if the water pH is 5.5 there still isn’t any real concern; however a pH lower

than that should be raised with a base like a lime drip.

Mineral (calcium, chlorides, sodium, etc.) and chemical content (iron, nitrates, etc.) will impact scale build up in the water lines as well as on the nipple drinkers. As long as they are not too far out of line, they will not impact the health of birds.

These contaminants will however impact the performance of the nipple drinkers. This normally leads to less water flow when the bird is drinking or possibly can lead to the valve being stuck open and leading to a leaky nipple. Additionally, scale can lead to reduced effectiveness of vaccines and disinfectants. If this is a constant problem, a non-sodium based water softener should be used.

Water bacterial counts entering the house should be kept as low as possible, with the ideal being 0. If the bacterial count is not zero an investigation into possible reason should be completed, since bacteria may have adverse effects on bird Alabama Poultry

performance and health.

Once the water gets into the house and it has been determined to meet all the above requirements for quality water, it is important to try and keep it that way. The only factor of those three mentioned that will change is the bacterial counts; this is due to the formation and propagation of biofilms in the water lines.

Virtually any bacteria that enter the water lines are capable of forming what is called a biofilm. A biofilm is a slimy mixture of proteins and carbohydrates that attaches to the pipe surface and allows the bacteria to live and grow. In addition to providing a place for bacteria to live and grow, biofilms provide protection to the bacteria from most disinfectant/sanitation attempts. Biofilms are rarely composed of just one bacterial type. Often E.coli, Salmonella and Campylobacter as well as other potential pathogenic bacteria reside in these biofilms. Recent work conContinued on page 24 May/June 2008

23

Practical Applications Continued from page 23 ducted by the authors at Auburn University has shown that Infectious laryngotracheitis (ILT) virus can often be recovered in water lines days after water vaccination and in some cases even in water lines from birds that were infected with ILT virus. Although the ILT virus cannot grow in biofilm, it can be trapped in it and infect other birds in either the same flock or subsequent flocks, if the water lines are untreated. As portions of the biofilm break off, which they normally do, the mi-

Practical Applications crobes are released into the water and will eventually be consumed by the birds. The bacteria and viruses released could have a detrimental effect on bird performance. Biofilm can also affect solubility of vaccines, vitamins, and disinfectants in the water lines. If sanitation/disinfection of the water lines is not a standard routine, it might be best to consider doing it to reduce the threat of bacterial and possibly viral pathogens and to increase bird performance.

Organic acids are often used to remove biofilm in the water.

An important consideration that often complicates the water quality that the birds receive is the origin of the water. Municipal water will often be of good quality year round; however if you are on a well, the quality of the water is much more variable, possibly changing on a seasonal basis. This should be addressed with an appropriate filtration unit to maintain a good quality water supply to the birds year round.

The take home message is that water entering the house, as well as water in the waterlines should be monitored.

Using Litter Treatments For Broilers Joe Hess, John Blake and Ken Macklin Auburn University

Interest in the use of litter treatments has steadily increased over the last decade as growers and poultry company technical personnel alike recognize the health and productivity benefits of improving the broiler house environment. It is known that high ammonia levels make birds more susceptible to respiratory diseases. Methods to reduce pathogenic microbes and ammonia levels include changes in management practices and the utilization of litter treatments. Most of the litter treatments in use in the broiler industry involve chemical reduction of litter pH so that bacteria associated with ammonia release are either inactivated, reduced in number or both. In addition, there are products containing beneficial bacteria that may also help manage the litter and control ammonia.

Originally, litter treatments were placed at a relatively low level (generally 50 lb/1000 sq. ft. depending on compound) to give early ammo24

May/June 2008

nia control during the brooding period. More recently, higher levels have been suggested as the industry becomes more comfortable with the performance benefits associated with improving air quality in the broiler house through litter treatment use. Broiler growers must balance the cost of applying extra amounts of a litter treatment with the benefits associated with longer ammonia control. In general, though, improved bird health normally translates into improved broiler weights and better feed conversions.

Use of litter treatments when combined with other litter management techniques such as tilling or inhouse windrow composting will further enhance air quality early on in the life of the broiler.

With windrow composting, it is important to spread out the litter after composting and allow ammonia to breath off (preferably with some minimal ventiAlabama Poultry

lation). This should be performed before litter treatments are added and the grower sets up for the next batch of chicks. If ammonia is not encouraged to escape after composting (or without composting for that matter) the ammonia levels peak as the litter is heated for brooding. This process will use up the litter treatment rapidly, which in turn will reduce the positive effects on bird health.

Recently, poultry producers have come under increased regulatory scrutiny regarding the amount and type of emissions exhausted from poultry housing during the course of normal house ventilation. Ammonia and dust have both been discussed as

potential problems with poultry house exhausts. Poultry facilities do contribute ammonia emissions to the atmosphere and reducing ammonia volatilization from poultry facilities is possible utilizing correct management techniques. Litter treatments, particularly at higher levels, may allow us to reduce ammonia emissions in reused litter such that broiler housing may meet whatever environmental standards are placed upon us. If more strict environmental regulations are put into effect regarding ammonia emissions from poultry facilities, litter treatments may become an important technique to allow producers to remain compliant.

The main goal in using a litter treatment is to effectively reduce ammonia emissions from poultry facilities, which will have a direct effect on improving litter management, nutrient enrichment, and reducing ammonia volatilization from poultry house litter. Recent research completed by the poultry science department at Auburn has

focused on a series of litter treatment trials to evaluate five litter treatments at three application levels (50, 100, or 150#/1,000 ft2) to prolong litter usage and to reduce ammonia volatilization and pathogenic microorganisms associated with this material. With the exception of lime, all of these agents were designed to reduce litter pH to control ammonia. Results show that increased levels of litter treatments can extend the ammonia control that litter treatments bring such that bird health may be improved. Most worked well, with the exception of lime. In these trials, ammonia levels were often controlled at the 100 and 150 lb/100 sq. ft levels for 35 to 42 days (starting with new pine shavings litter), so that birds would have matured substantially before ammonia levels increased.

Recently, the use of bacterialbased litter treatments has increased in Alabama. Essentially there are two types of bacterial treatments, those that raise the litter pH and

Measuring treated litter for ammonia emissions

Alabama Poultry

those that acidify (lower) it. The first group of bacterial treatments is applied after the birds have been marketed. It actively stimulates ammonia production by encouraging the breakdown of uric acid and urea into ammonia. The thought is that venting the produced ammonia during the layout will result in lower ammonia levels when chicks are placed. The other group of bacterial treatments actively produce organic acids, which in turn lower the pH. Much like chemical treatments, this reduced pH will reduce the proliferation of most bacteria and will inhibit ammonia production.

Litter treatments have become a common means of improving the broiler house environment throughout much of the broiler industry.

Growers have used this technology to improve bird health and monetary returns. It is likely that the use of these products will continue as growers manage reused litter to their best advantage.

Untreated litter

May/June 2008

25

Practical Applications

Jess Campbell, Gene Simpson, Jim Donald & Ken Macklin, Auburn University

Poultry growers across the United States are looking for every possible way to reduce energy costs.

The first strategy in reducing fuel costs is to make sure you are purchasing poultry house heating fuel at the lowest possible prices. At present, a very high percentage of poultry houses in the United States are heated by propane (liquefied petroleum gas, or LP). However, there are a number of locations in the country where natural gas (NG) is available, or natural gas is available if the grower is willing to pay a fee to bring the gas lines to the farm. In most of these locations where there is an opportunity to convert a poultry house from propane to natural gas, it is economically advantageous to do so given current and projected price relationships between propane and natural gas.

Converting from propane to natural gas requires changing the burner orifices and associated plumbing and other equipment on the farm so that brooders and heaters will operate efficiently with natural gas. The conversion from propane to natural gas is not difficult but it must be well 26

May/June 2008

Practical Applications ing fuel. Fairly simple equipment adjustments enable natural gas to produce the same amount of heat as propane.

The heat generated by both LP and NG is known for being much cleaner than that produced by oil or gasoline. NG and LP are both completely combusted in the appliance, producing mainly carbon dioxide and water as exhaust products. NG, like LP, is a good clean fuel that will not negatively impact the health or performance of the flock as long as the house is properly managed. thought-out and done with the help of a qualified natural gas technician.

In this newsletter we will explain the most important details involved in converting from propane to natural gas, discuss some of the common pitfalls and problems associated with a conversion, and then look at the economics and the possible payback based on comparative prices of propane and natural gas.

The Facts About Propane and Natural Gas

Natural gas is a mixture of lighter-than-air flammable gases, including methane, butane, ethane and pentane. Propane, on the other hand, is collected during the processing of oil and natural gas and is heavier than air. Both are explosive risks if allowed to concentrate; fortunately, both readily disperse when released into the environment.

Natural gas is piped directly into a poultry house in the form of gas, while propane arrives at the farm in a tank truck and is pumped as a liquid into 500 or 1000 gallon holding tanks. The liquid propane evaporates from the wetted surface area in the top of the tank and is then piped into the poultry house in the form of gas.

Generally, natural gas is sold by Alabama Poultry

the therm, but in some areas is sold by the thousand cubic feet (MCF).

A therm is the quantity of gas necessary to produce 100,000 BTUs of heat. A therm is approximately 100 cubic feet.

Propane is sold by the gallon.

One gallon of propane produces 91,660 BTUs of heat.

Many old timers will tell you that natural gas does not burn as hot as propane. This is not true. The flame temperatures of natural gas and propane are almost identical at approximately 3,560°F. The reason the old timers will tell you that natural gas does not burn as hot as propane is that on a per cubic foot basis, natural gas contains less than half the heat content of propane, and the old timers were not delivering the correct volume of natural gas to the appliance. It takes approximately 2.5 times the volume of natural gas to produce the same amount of heat as it does propane. Burning one cubic foot of natural gas produces approximately 1,012 BTUs of heat while burning one cubic foot of propane produces 2,520 BTUs of heat.

The difference in heat content per cubic foot does not mean that natural gas is less desirable as a heat-

Facts About Natural Gas vs Propane Equipment & Operation

Most propane heating systems operate at eleven inches of water column pressure, while natural gas systems operate at seven inches water column. This means that different pressure regulators and pipe sizes (larger for natural gas) may be required.

Different pressure regulators are needed for propane and natural gas; and pressure regulators must be matched to equipment being used.

Some newer model brooders (within

the last ten years) operate at 5 PSI pressure. Older brooders operate at 11 inches of water column for propane and 7 inches for natural gas.

Most furnaces and tube heaters operate at 7 inches of water column for natural gas.

For most appliances, changing from propane to natural gas requires only drilling out the burner orifice (the small hole that meters the amount of gas entering the appliance) to increase the flow rate of the gas so that about 2.5 times the volume will reach the brooder or appliance in comparison to propane.

Drilling of orifices should only be performed by a qualified gas technician, using a precision machined set of numbered gas drills. The exact drill size is very critical for ensuring proper appliance performance.

Most companies that manufacture poultry heating equipment have very detailed and specific guidelines for converting their appliances from one fuel type to another. In many cases, the gas valves on the equipment are universal and can be used for both propane and natural gas.

However, in some cases the valves will need to have a tension spring

TABLE 1

adjustment made.

There are some circumstances in which gas valves will need to be replaced. Changing from propane to natural gas should only be done under the guidance of an experienced natural gas technician. Questions regarding the suitability of appliances for use on natural gas rather than propane should be answered by the manufacturer. While this may seem complicated, changing fuel types is a very straightforward task if done with reasonable care.

Facts About the Economics of Choosing Between Natural Gas and Propane

In broiler belt states like Alabama, where the price of natural gas is regulated by a state agency or elected municipal district boards, natural gas rates are less likely to experience the major price swings we typically see with propane. This may result in decreased fuel price risk facing growers.

Natural gas is sold by the therm, which will produce approximately 100,000 BTUs of heat, or in some TABLE 2

Price of NG per 1,000 cuft

Price of Natural Gas NG per therm

Stay with Propane if you are paying less than $/gal

Price Paid for Propane

Convert to NG if less than $/therm

Convert to NG if less than $/1,000 cuft

$1 0 .00

$1 .00

$0 .92

$2 .40

$2 .62

$2 6 .20

$1 1 .00

$1 .10

$1 .00

$2 .30

$2 .50

$2 5 .00

$1 2 .00

$1 .20

$1 .10

$2 .20

$2 .40

$2 4 .00

$1 3 .00

$1 .30

$1 .19

$2 .10

$2 .29

$2 2 .90

$1 4 .00

$1 .40

$1 .28

$2 .00

$2 .18

$2 1 .80

$1 5 .00

$1 .50

$1 .38

$1 .90

$2 .07

$2 0 .70

$1 6 .00

$1 .60

$1 .47

$1 .80

$1 .96

$1 9 .60

$1 7 .00

$1 .70

$1 .56

$1 .70

$1 .85

$1 8 .50

$1 8 .00

$1 .80

$1 .65

$1 .60

$1 .74

$1 7 .40

$1 9 .00

$1 .90

$1 .74

$1 .50

$1 .64

$1 6 .40

Note: Price points in tables are based on the cost/BTU equivalence formulas for LP and NG explained on page 2, and do not take into consideration possible costs of conversion, which are typically minor factors in the long run but which should also be included in the decision process.

Alabama Poultry

May/June 2008

27

Practical Applications areas by the MCF (one thousand cubic feet). An MCF is approximately equal to ten therms. Propane is sold by the gallon, which will produce 91,660 BTUs of heat. The difference in heat content means that to compare the true costs of heating (cost/BTU basis) of natural gas vs propane: Cost of one gallon of propane = Cost of one therm of natural gas divided by 1.09 (or of one MCF ÷ 10.9) Cost of one therm of natural gas = Cost of one gallon of propane multiplied by 1.09 Cost of one MCF of natural gas = Cost of one gallon of propane multiplied by 10.9 Examples: Natural gas at $1.60/therm or $16.00/MCF would have the same value as propane at $1.47/gallon (1.60 ÷ 1.09 = 1.47; 16 ÷ 10.9 = 1.47). Propane at $2/gallon would be equivalent to natural gas at $2.18/therm (2 X 1.09 = 2.18) or $21.80/MCF (2 X 10.9 = 21.80).

When a grower makes the decision to convert a farm over from LP to NG all of the heating equipment in the houses must be converted by either modifying or replacing the orifices in the equipment. The regulators must also be replaced to make the plumbing system compatible with the new gas system. Every existing farm plumbing system must be inspected and sized by a qualified gas professional to make sure that the existing gas system can be converted or modified for use with natural gas.

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May/June 2008

Conversion from propane to natural gas is typically advantageous in areas where natural gas lines are located close enough to the farm. The conversion process involves changes or modification of equipment, such as trading propane tanks for natural gas meters, shown at right.

Tables 1 and 2 illustrate the true heating cost comparisons of natural gas vs propane at various price levels, starting with either the propane cost or the natural gas cost.

Costs of making the required equipment modifications or replacements must be figured into a decision to convert to natural gas.

Whether the grower or the LP company owns the propane tanks and whether they are to be removed, will also be factors to consider. In addition, growers should be aware that natural gas bills may include additional service charges, which can change from location to location but may add 5 percent or more to the bill.

Where natural gas pipelines are not close enough to a farm to allow

no-charge connection, the grower may be able to pay a fee for extension of the pipeline to get connected.

Even when such fees seem very high, the long-term cost savings of natural gas may make the natural gas connection economically justified.

Economics Example #1 – No Fee for Natural Gas Connection

Grower Jones has four poultry houses. He burns approximately 20,000 gallons of propane/year. He is currently paying $1.90/gallon for propane to heat his houses. Natural gas is available at his farm at a cost of $1.30/therm. Is converting to natural gas a wise consideration? Both Table 1 and 2 indicate that converting to natural gas could yield substantial savings.

Example Calculations: Cost of propane: 20,000 gallons LP X $1.90 = $38,000/yr for LP 20,000 gallons LP ÷ 1.09 = 18,349 therms/yr NG equivalent (or 1,834.9 MCF/yr) 18,349 therms @ $1.30/therm of NG = $23,853/yr cost of NG (1834.9 MCF @ $13/MCF = $23,853/yr) Yearly savings by switching from LP to NG = $38,000 - $23,853 = $14,147 Cost of increasing pipe sizes, adding new regulators, changing orifices, and changing valves is estimated to be $1,000/house X 4 houses = $4,000 First year savings of $14,147 - $4,000 = $10,147 Subsequent year savings = $14,147/yr In this example, a very substantial fuel cost reduction is realized in the first year by converting from LP to NG. Alabama Poultry

Economics Example #2 – $25,000 Fee for Natural Gas Connection Grower Jones has four poultry houses. He burns approximately 20,000 gallons of propane/year. He is currently paying $1.90/gallon for propane to heat his houses. Natural gas is not available at his farm. He can elect to pay a fee for having the natural gas company extend the pipeline to his farm at a cost of $25,000. After extending the pipeline he can purchase natural gas at a cost of $1.30/therm. Is converting to natural gas a wise consideration? Even with the additional cost of extending the pipeline, converting to natural gas could yield substantial savings.

Example Calculations: Cost of extending NG pipeline + cost of converting 4 houses at $1000/house: $29,000 financed for 2 years @ 7 percent = $33,204 Cost of propane: 20,000 gallons LP X $1.90 = $38,000/yr for LP 20,000 gallons ÷ 1.09 = 18,349 therms/yr NG equivalent 18,349 therms @ $1.30/therm of NG = $23,853/yr cost of NG Yearly savings by switching from LP to NG = $38,000 - $23,853 = $14,147 First year additional cost = $16,602 (One half of $33,204) Second year additional cost = $16,602 (One half of $33,204) First year deficit = $16,602 - $14,147 = ($2,455) Second year deficit = $16,602 - $14,147 = ($2,455) Third year savings = ($4,910) + $14,147 = $9,237 Subsequent year savings = $14,147/yr In this example, the “breakeven” point occurs early in the third year, and results in substantial cost reductions in subsequent years.

The Bottom Line If natural gas is available, given current and projected price relationships between propane and natural gas, converting to natural gas offers an excellent opportunity to decrease annual energy costs for heating and brooding. The conversion to natural gas is likely to pay off in the longer term even if the grower has to pay a steep fee for connection.

Calendar of Events AP&EA Broiler Workshop October 14-15, 2008 Auburn University Hotel and Dixon Conference Center

AP&EA Breeder/Hatchery Workshop November 12-13, 2008 Auburn University Hotel and Dixon Conference Center ADVERTISING INDEX American Proteins ANPAC Auvil Insurance Aviagen Dura-Slat Farmers Poultry Supply Federal Landbank First Financial Bank First South Farm Credit Poultry Supply Superior Metal Systems Van Beek

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pg. pg. pg. pg. pg. pg. pg. pg. pg. pg. pg. pg.

31 5 20 21 29 32 11 24 7 2 10 9