Poultry Times PERIODICALS
Since 1954, the nation’s only poultry industry newspaper
December 3, 2012
Industry
Outlook Inside: An in-depth look at the poultry industry, along with a glimpse at what’s on the horizon for 2013.
Poultry Times
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December 3, 2012 Volume 59, Number 25 www.poultrytimes.net
Increased food production is vital for the future By David B. Strickland Poultry Times Staff
dstrickland@poultrytimes.net
ATHENS, Ga. — “There is a revolution coming in agriculture, but that revolution is going to be what will allow us to keep up with enhanced food production; that is an absolute requirement,” said Dr. Scott Angle, dean and director of the University of Georgia’s College of Agricultural and Environmental Sciences. Angle described what he sees as the “future of agriculture,” during the 2012 Georgia Poultry Conference. He began by noting the continuing increase in the world’s population
and the necessity for more food. “We’ve got to double food production by the year 2050,” he said. “The population is growing and will continue to grow relatively strongly.” He added that of just as much importance is that most of the world’s population is poor, living on $2 a day or less. And living on $2 a day or less, means that the people are eating a lot of rice and beans, very little meat or milk, and are generally sick from disease and malnourished, with the percentage of children living to the age of 5 at around 50 percent.
Economy & population “The world economy is growing
. . . and if you are one of the people who are living on $1 or $2 a day, and now are living on $3 or $4 or $5 a day, the first thing you are going to want to do is have more food,” Angle said. But more than just more food, you are going to want better quality food, he added. At this amount of money people may begin to consume a little bit more meat, as well as food with a minimal amount of processing and with better food safety. “When you look at a population up to around 9 billion people in the year 2050, and more consumption per person; it tells you why we will have to double food production,” Angle said. “That is just a given. If
we don’t, there will be many people going to bed hungry on this planet. So the assumption is we are going to produce more and better food.” This large growth curve in human population has been occurring for almost a century, he noted, adding that many Angle people were saying in the past that the capacity of agriculture couldn’t keep up with the rises in human population, and
that if the population reached around 5 to 7 billion people there would be no additional food and people above this number would just die off from hunger. “That turned out not to be true, as agriculture and agriculture alone has met the challenge,” Angle said. “We have done this over the last 50 years. We have grown more and more food when some said it was not possible.” Angle noted that these increases became possible through the collaborative efforts of the food industries, education, technology and the ability to utilize resources.
See Future, Page 16
President pardons Thanksgiving turkey
Special
Turkey pardoned: President Barack Obama pardoned the National Thanksgiving Turkey in a Nov. 21 Rose Garden ceremony at the White House. Joining the president for the pardoning of “Cobbler” were National Turkey Federation Chairman Steve Willardsen and the president’s daughters, Sasha and Malia.
WASHINGTON — President Barack Obama “pardoned” the National Thanksgiving Turkey in a Nov. 21 White House ceremony, as he and National Turkey Federation Chairman Steve Willardsen celebrated the 65th anniversary of the National Thanksgiving Turkey presentation. Willardsen presented the president with “Cobbler,” a 19-week old, 40-pound tom. “Tomorrow, in the company of friends and loved ones, we will celebrate a uniquely American holiday. And it’s a chance for us to spend time with the people we care about and to give thanks for the blessings that we enjoy; and to think about just how lucky we are to live in the greatest nation on Earth,” said Obama. After his remarks, the president pardoned the National Thanksgiving Turkey and its alternate, “Gobbler.” The names of the turkeys were chosen from submissions from el-
ementary schools in Rockingham County, Va., where the turkeys were raised. Many of the submissions came from schools in agriculture-producing areas, where students have the chance to learn about the importance of agriculture to the world food supply and to local economies. Both birds were raised on the farm of Craig and Nancy Miller, near Harrisonburg, Va., under Willardsen’s supervision and in partnership with the Virginia Poultry Federation. Willardsen is president of Cargill Inc.’s Wichita, Kan.-based turkey business. Dr. Bob Evans, also of Cargill, handled the turkey during the Rose Garden ceremony. “Thanksgiving is about welcoming in the holiday season,” said Willardsen. “Being a part of raising the National Thanksgiving Turkey is such an honor and a privilege, as it symbolizes the importance of recognizing our many blessings throughout the year.”
Willardsen’s wife, Cheri, and their family also joined President Obama at the White House Rose Garden for the annual Thanksgiving presentation. The night before the presentation, “Cobbler” and “Gobbler” stayed in a room at the W Washington, D.C. Hotel. After the pardoning, they were driven to George Washington’s Mount Vernon Estate Museum and Gardens. The National Thanksgiving Turkey will be on display for visitors during “Christmas at Mount Vernon,” a special program through Jan. 6. After the holidays, the National Thanksgiving Turkey and its alternate will live in a custom-made enclosure at Mount Vernon’s nationally recognized livestock facility. Jaindl’s Turkey Farm in Orefield, Pa., gave President Obama’s family two dressed turkeys that will be donated to the Capital Area Food Bank.
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POULTRY TIMES, December 3, 2012
NTF: keeping eye on production and legislation in 2013 By Joel Brandenberger President National Turkey Federation
WASHINGTON — USDA’s Turkeys Raised report, issued in late September, estimates the total number of turkeys raised in 2012 will increase by 2 percent from last year. Depending on the ultimate average liveweight of those birds, the total readyBrandenberger to-cook (RTC) poundage could wind up increasing slightly more or slightly less than 2011.
In normal years, with a sputteringbut-growing economy, that should have been enough to keep industry profitability in the same neighborhood as 2011, but 2012 was far from a normal year. The record drought this summer drove corn prices to more than $8 at one point in the summer, nearly double the price at the beginning of the year and oversupply of some turkey products kept prices soft in many areas, especially for dark meat, wings and breast trim. Even turkey breast meat, which did not suffer as sharp a decline as other parts, became problematic by year’s end because rising feed costs made it difficult to produce breast products profitably. All of this makes peering into the crystal ball for 2013 somewhat challenging. The industry’s situation is
not as dire as it was in late 2008 and much of 2009, but the outlook is not as positive as it was going into this year or either of the previous two years. Current market conditions are consistent with those that have led to modest industry cutbacks in previous years, but each individual company faces unique opportunities and challenges, so predicting an industry-wide trend is particularly difficult. With that in mind, let’s take a look at some of the issues that will drive industry decision-making in the coming year. Renewable Fuels Policy: While no one can argue the drought greatly exacerbated the industry’s feed-cost problems, our nation’s misguided renewable fuels policy laid the foundation for the
current crisis. That’s why the turkey industry for more than eight years has been at the forefront of the fight against the federal government’s ethanol support structure. During that time, the Renewable Fuels Standard (RFS) has grossly distorted the nation’s corn markets. The year before the RFS took effect, about 12 percent of the corn harvest went to ethanol production. In 2013, about 42 percent of a smaller harvest will go toward ethanol. That’s why it is absolutely mindboggling that the Environmental Protection Agency, which administers the RFS, denied petitions from the governors of Arkansas, North Carolina and six other states for an RFS waiver next year (petitions strongly supported by the National Turkey Federation and other poultry and livestock groups).
Not only is the crop just harvested smaller than in previous years, but the quality also will be diminished. Heat stress has reduced the average weight of a bushel in many places meaning turkey companies will need to buy more corn by volume to produce the same amount of feed by weight and that same stress has increased the levels of certain toxins in corn. This means some of the corn harvested will be unusable as a direct feed ingredient and that there will be fewer dried distiller’s grains (DDGs, a byproduct of ethanol production) usable as well. That’s why NTF and many of our coalition partners will be urging Congress to take a comprehensive look at the RFS in 2013. We believe
See NTF, Page 8
Coalition critical of EPA decision on fuel waiver WASHINGTON — A coalition of livestock, poultry and dairy organizations today expressed extreme disappointment with the U.S. Environmental Protection Agency’s denial in the wake of the worst drought in more than half a century of requests that it waive a federal law that requires corn to be turned into ethanol for gasoline. The Renewable Fuels Standard (RFS) requires 13.8 billion gallons of corn-based ethanol to be blended into gasoline in 2013, an amount that will use about 4.5 billion bushels of the nation’s corn crop, according to USDA. “We are extremely frustrated and discouraged that EPA chose to ignore the clear economic argument from tens of thousands of family farmers and livestock and poultry producers that the food-to-fuel policy is causing and will cause severe harm to regions in which those farmers and producers operate,” the coalition said. The EPA announced Nov. 16 that the agency has not found evidence to support a finding of severe “eco-
nomic harm” that would warrant granting a waiver of the Renewable Fuels Standard (RFS). The decision is based on economic analyses and modeling done in conjunction with USDA and U.S. Department of Energy (DOE). “We recognize that this year’s drought has created hardship in some sectors of the economy, particularly for livestock producers,” said Gina McCarthy, assistant administrator for EPA’s Office of Air and Radiation. “But our extensive analysis makes clear that congressional requirements for a waiver have not been met and that waiving the RFS will have little, if any, impact.” To support the waiver decision, EPA conducted several economic analyses. Economic analyses of impacts in the agricultural sector, conducted with USDA, showed that on average waiving the mandate would only reduce corn prices by approximately 1 percent. Economic analyses of impacts in the energy sector, conducted with DOE, showed that waiving the mandate would not im-
pact household energy costs. The coalition noted, however, that dozens of poultry, pork, beef and dairy operations have filed for bankruptcy, been sold or simply gone out of business during the past
See Waiver, Page 13
INDEX AEB Hotline...........................15 Business.............................6--7 Calendar...............................10 Classified..............................12 Viewpoint................................4 A directory of Poultry Times advertisers appears on Page 15
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POULTRY TIMES, December 3, 2012
NCC: companies learning to live with record high feed costs By William P. Roenigk Senior Vice President National Chicken Council
WASHINGTON — Record high feed costs during the second half of 2012 and undoubtedly at least for the first half of 2013, if not the full year, make any predictions about the chicken business in the new year somewhat more difficult and a bit more precarious than usual. With market-ready live chicken costs over 50 cents per pound and ready-to-cook weight costs essentially twice that amount, the one primary question is Roenigk “how much will production have to adjust to find the sweet spot where prices rise to cover at least break-even costs”? With the unprecedented cost challenges, chicken will venture into new, uncharted territory in the new year. Little did chicken producers/ processors know that the challenges of the past few years were just a warm-up to the likely operating environment in the year ahead. Factors impacting production and consumption Factor in a continued so-so U.S. economy and a global economy that is less than robust and the forecast becomes even more interesting. Although the presidential and congressional elections are now recent history, there still remains much uncertainty about the general economy, government programs, and federal policy changes. Before 2006 when chicken consumption peaked at 88 pounds per person there was an attitude that chicken’s very favorable value equation with consumers would help insulate chicken from the vagaries of a soft economy. Recent years’ experience has
proven that equation and attitude to be somewhat less than correct, especially at foodservice. Chicken wings maybe the exception to that general conclusion. USDA is calling for a modest decrease in chicken production in 2012 and for another modest decrease in marketings in 2013. Never in the history of the chicken industry has there been two consecutive years of decreases, that is, back-to-back negative production adjustments. A number of analysts outside of USDA see a much more dramatic drop in chicken production in the new year, that is, something beyond “modest.” And, such a situation is not just unprecedented and painful, but unnecessary if there was an appropriate federal government energy policy, especially for cornbased ethanol. Pork production is expected to pull back a percent or so in 2013 while beef’s downward adjustment may be more significant with a decrease of something over 4 percent. With the decline in the combined production of beef, pork, veal and lamb and with exports of red meat staying steady or better in 2013, per capita consumption of red meat will be less than 102 pounds per person in the new year, the lowest consumption level since the ‘30s. Combined meat and poultry consumption will be less than 200 pounds per person on average in 2013, the first time it will be below 200 pounds since 1990. Production adjustments/ price reactions In 2009 when chicken production decreased 3.8 percent, the wholesale composite broiler price increased 6.2 percent. In 2012 with chicken production estimated by USDA to be off 1.2 percent from 2011, the composite broiler price will most likely increase about 8 percent from the year before, according to estimated USDA data. If USDA’s forecast for chicken production in the new year proves
correct with a 1 percent or so decrease, what can be expected for the upward change in the composite broiler price? Using the 2009 and 2012 experiences as guides, what is a reasonable expectation for an increase in the wholesale composite broiler price? Certainly, a modest increase in the wholesale price will not begin to offset the double-digit percentage increase in feed costs. If, however, chicken production is down 3.0 or more percent in 2013 as certain private analysts believe, will the increase in the composite broiler price begin to cover ballooning feed costs? To be redundant, will a possible double-digit percent increase in the wholesale price of chicken be enough to offset and cover record high feed costs? Will consumers continue to make chicken their meat of choice with the price of retail chicken, especially boneless/skinless breast meat, on a new, higher plateau? Corn: feed or fuel? Looking back at last year’s corn harvest it was noted that without enough corn from the 2011 harvest to adequately meet all needs, animal agriculture found itself as the last man in a somewhat short line of who gets the corn. Although the Corn Belt was long overdue for a significant drought, few, if any, weather forecasts were calling for the extremely dry weather conditions experienced throughout the entire major corngrowing region this past summer. In fact, the contrary seemed to be the consensus, despite an overly-warm and dry winter season. The bottom line is that the tight corn situation last year was just a modest prelude to the devastation this year. Despite the twice-in-acentury drought in 2012, the federal government policy is to continue to pursue a supposed goal of energy security at the clear risk of jeopardizing food security. Forcing corn to be used to manufacture ethanol through the Re-
newable Fuel Standard is another demonstration of government’s inflexibility and the difficulty of bringing common-reasoning to a crisis situation. This stance apparently will continue despite the old adage of a “small crop gets smaller” proving true once again. Governors and the livestock/poultry interests petitioned the Environmental Protection Agency (EPA) to grant a waiver for the Renewable Fuel Standard for ethanol. While a very strong argument is made that the federal government should not force corn to be used for fuel when there is a severe shortage of corn, another adage comes to mind. And, that adage is “you cannot wake someone who is pretending to be asleep.” EPA, as expected, on Nov. 16 announced its decision to deny granting a waiver to the Renewable Fuel Standard for ethanol for 2013. With EPA holding fast to its position that 13.8 billion gallons of ethanol must be blended into gasoline in 2013, no matter what the consequences, the animal agriculture sector is in a more precarious position. More than a dozen poultry companies since the second renewable fuels standards was implemented in 2007 have filed for bankruptcy, sold to other companies, or have simply ceased operations. The E10 blend wall was bumped in 2012 and will be more-thanbumped in 2013 since there will not be enough over-the-road gasoline to blend in 2013. It will be interesting to see if EPA provides relief to the ethanol industry in this regard. Since EPA has provided relief for advanced (cellulosic) biofuels, it can be reasonably assumed EPA will do the same for corn-based ethanol. However, the fear is that Congress will change the law to declare corn-based ethanol to qualify as an advanced biofuel. Obviously, the U.S. government continues to believe and behave in a manner that it should pick the winners and los-
ers in the marketplace, and not the market itself. Analysts describe the ongoing cut-backs in animal agriculture as “demand destruction,” meaning that poultry and livestock numbers, including the reproductive animals, are being reduced to levels that if there is an abundant corn crop in 2013 there will not be a normal demand for corn from U.S. animal agriculture. If there is a bumper corn harvest next year, corn producers will have to count on a robust export market to provide stepped-up demand. In addition to reduced poultry flocks and livestock herds, ethanol’s demand for corn will be maxed-out as the E10 blend wall will certainly be hit hard in 2013. Ethanol’s hope that E15 will provide stimulated demand for their product in 2013 will remain just that, “a hope.” A major key to having an adequate corn crop (14+ billion bushels) in 2013 will be adequate sub-soil moisture in time for spring planting. While recent rains have begun to restore some subsoil moisture in certain parts of the Midwest, there is much replenishment needed. A good, continuous snow cover could begin to allay certain concerns about not having to rely entirely on timely spring showers. Concluding note How much insight this outlook provides will depend as it always does, on a number of factors, such as feed costs/volatility; the strength of consumer demand, especially at foodservice and especially at price levels perhaps not experienced before 2013; the dynamics of the U.S. dollar and foreign consumer demand in world markets; the size of the hatchery supply flock; the competition from other proteins; and a number of other significant factors unknown at this time, but in hindsight will appear much more clear. And, so clear and apparent one will wonder how this obvious development could not have been foreseen.
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POULTRY TIMES, December 3, 2012
Viewpoint Compiled by Barbara Olejnik, Associate Editor 770-718-3440 bolejnik@poultrytimes.net
2013 being viewed as ‘monumental’ for poultry exports By Jim Sumner
Special to Poultry Times
STONE MOUNTAIN, Ga. — Until an enterprising inventor comes up with a crystal ball that actually predicts the future, making market projections in any field of endeavor is risky business. This is particularly true for agriculture, and the poultry and egg export sector is no different. Foreseeing what will happen in an industry segment whose success is dependent on the ebb and flow of market forces, the vagaries Sumner of government policies both domestic and foreign, and the biological unpredictability of avian diseases is like shadowboxing in the dark. In other words, any punch you land would have more to do with luck than with skill. That said, I believe that 2013 could be a monumental year for U.S. poultry and egg exports. Jim Sumner is president of the USA Poultry & Egg Export Council with headquarters in Stone Mountain, Ga.
There are several reasons why I say that. First, it appears that exports of both poultry and egg products will set a new record value of well over $5 billion for 2012. For chicken meat this year, exports will account for more than 21 percent of total U.S. output of ready-to-cook production. For turkey meat, the export share of production will be at an all-time high of about 15 percent, and more than 3.5 percent for U.S. eggs. More importantly, with some exceptions, one or two countries are no longer as dominant as they once were. For example, as recently as 2009, Russia and China together accounted for more than 40 percent of total U.S. export quantity of chicken meat. Through the third quarter of 2012, the top five export markets accounted for 40 percent of the total. Exports to Russia have declined over time, of course, but the important point is that exports to other markets such as Mexico, Angola and Cuba have grown to more than make up the difference. No one discounts the impact of the rising cost of feed grains on our industry. Rising input costs have forced many companies to cut production and have helped to push some over the brink into bankruptcy. But high grain costs affect some companies — and countries — more severely than others, and it’s important to keep this in perspec-
tive when looking at the future. Here in the U.S., we enjoy the best of both worlds — we have a highly efficient, vertically integrated industry, and our grain supplies are for the most part home grown. This gives our industry a competitive advantage unmatched by few countries other than our chief competitor, Brazil. Even accounting for this year’s drought, our industry still has the largest supply of grain to draw from, unlike those poultry-producing countries that must import much of their feed ingredients. Poultry and egg producers in countries that import grain — often even with high duties — are finding themselves in dire straits and are having to face consumers who are sometimes actually rebelling over high prices for poultry. In Saudi Arabia recently, consumer advocates called for a general boycott of exorbitantly-priced local chicken and, in Iran, people took to the streets in protest over the price of chicken. Countries that depend on imported grains are becoming more desperate, from the Caribbean to Africa to the Middle East to Japan. Even Russia, with its vast wheatproducing areas, is having to cope with high input prices and, therefore, is less-competitive in its domestic poultry production. Rising incomes in many developing countries is fueling demand, which is pushing per capita consumption of poultry upward. If these countries have uncompetitive domestic industries, then this bodes well for the future of U.S. exports. In its latest estimates from 2011, the Food and Agriculture Organization of the U.N. reports that in the previous five years, per capita poultry consumption in developing countries grew at an annual rate of 3.7 percent, on average. Consumption in the countries in Near East Asia is increasing very rapidly, at an annual rate of nearly 5 percent. In developed countries, per capita consumption is growing at a snail’s pace of just over 1 percent per year. The International Monetary Fund estimates that per capita GDP (based on purchasing-power-parity) in emerging and developing coun-
“
‘We have a highly efficient, vertically integrated industry, and our grain supplies are for the most part home grown.’ Jim Sumner
USA Poultry & Egg Export Council
tries will rise by 5.6 percent in 2013, compared to a rate of 3.5 percent in advanced economies. More long term, IMF calculates that per capita GDP in the developing world will grow at an annual rate of 6.4 percent from 2012 through 2017.
Populations in developing countries are also outpacing the developed world, according to FAO, which expects the populations in
See Sumner, Page 5
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POULTRY TIMES, December 3, 2012
AEB: aiming to increase consumer knowledge on nutrition By Joanne C. Ivy President & CEO American Egg Board
PARK RIDGE, Ill. — When looking at the American Egg Board’s Demand Dashboard, I’m thrilled with the increases we’ve tracked in egg consumption across various channels by looking beyond USDA’s Per Capita Consumption, especially the growth in the retail and foodservice channels. As a result of targeted efforts to Quick-Service Restaurants (QSRs) through AEB’s National Accounts Program, we helped drive a 6.5 percent increase since 2007 of total QSRs serving breakfast, which included an increase of 3.3 percent this past year. As in any industry, challenges
exist: rising costs, changing regulations and challenging perspectives — to name a few; however, longterm trends are positive for egg demand. Motivated to increase demand for eggs and egg products, AEB’s staff moves into 2013 with program plans Ivy to educate Americans about incredible nutritional attributes of eggs. We’re still leveraging the lower in cholesterol/higher in all-natural vitamin D messages with
success and promoting the wealth of research that supports eggs’ role in a healthful diet. Americans find these messages motivating factors to consume and buy more eggs and in turn, promoting these messages supports AEB’s mission and grows egg demand for the industry. AEB’s “Wake Up to Eggs” campaign will continue in 2013, and we’ll be working toward increasing eggs’ share of weekday breakfast to 22 percent. The updated Incredible Edible Egg Jingle will be leveraged throughout the year. In its first four weeks, the Incredible Jingle reflected its status as an icon and an incredible promotional asset. Key highlights include: 79,100 Facebook fans gained 5,725 farmer video views on
YouTube 13,855 likes; 1,929 shares; 1,746 comments and 6.7 million impressions of the farmer video on Facebook. 41 Jingle contest entries 7 million traditional media impressions. During the first quarter of 2013, AEB will use existing weather-related research on America’s cloudiest cities to show why vitamin D in eggs is vital in its promotional efforts. Plans are underway to conduct egg cooking radio giveaways in top 20 cloudiest cities. Social media will play a huge part in this efforts. Across AEB, efforts are underway to emphasize eggs as a critical component of any Easter celebration. We’re planning to roll out the
pastel carpet with a fashion forward campaign that’s going to have everyone “dye-ing” (for) eggs! One way we’ll do this is through recruiting a well-known designer to create one-of-a-kind egg décor. This egg will then inspire AEB’s Facebook fans to share their own creations on Facebook and fans vote for the best. This is only one part of the Easter-related efforts that will place renewed interest in dyeing eggs. Passion is a word that is often overused, but in this case, no other word more succinctly describes my enthusiasm for the infinite opportunities ahead for the American Egg Board. AEB’s staff is motivated and enthused about our 2013 plans to increase egg and egg product demand.
UEP: looking toward egg production ‘certainty’ for next year By Chad Gregory
Senior Vice President United Egg Producers
ALPHARETTA, Ga. — U.S. egg farmers are looking for more certainty in 2013. One characteristic farmers cherish is certainty. The dictionary defines certainty the following way: ‘freedom from doubt’ ‘definitely true or an event that is definitely going to take place.’
Knowing what to expect and hoping you can farm the same way you have in previous years is comforting. This has not been the case for egg farmers the past 3-4 years and that uncertainty has created anxiety. In the coming months and year, egg farmers are hoping for more certainty. Certainty with feed prices, fuel prices, rules and regulations, consumer confidence, taxes, health care and all sorts of other input
costs. The biggest area egg farmers are hoping ‘certainty’ shows up is in the form of production standards and types of systems they can Gregory invest in and
build. The types of systems they can count on using for the next 2025 years. The kind of certainty they can plan for so they can pass their successful family businesses onto the next generations. The federal egg bill, amendment to the Egg Products Inspection Act, will provide that kind of certainty. Egg farmers will then have a detailed road map they can use to plot their course. H.R. 3798 will preempt
and prevent state legislation and ballot initiatives which will provide certainty where it currently does not exist. UEP is hopeful the egg bill will pass with the Farm Bill during the infamous lame duck session or early in 2013. However, as John F. Kennedy said, “The one unchangeable certainty is that nothing is certain or unchangeable.” And farmers know this better than anyone.
cessed egg products. The European Union’s cagedlayer restrictions imposed in January caused a near-immediate shortage of eggs throughout Europe, particularly for industrial use. The result was record exports of U.S. eggs to Europe for breaking stock. The outbreak of highly pathogenic H7N3 avian influenza in the Mexican state of Jalisco, in an area with the world’s highest concentration of commercial egg farms, devastated the Mexican egg industry
last summer, but created an opportunity for U.S. egg exporters. And, as the global food manufacturing industry continues to grow, we see increased opportunities worldwide for processed egg products. Here, at USAPEEC, our focus over the last few years has been on market development in emerging economies, particularly in Sub-Saharan Africa and South Asia. In recent weeks, for example, we have hosted delegations, including
government officials and poultry industry leaders from Senegal and Ghana. Since it’s natural that domestic poultry industries are wary of imports, our message to them has been that domestic production and imports can and do co-exist to the benefit of both. Our aim is not to displace domestic production, but to enhance it with imported product, helping to feed a growing population that previously could not afford such luxury proteins
as chicken, eggs, turkey or duck. With challenge comes opportunity. This is why I think there has never been a more exciting time to be engaged in the export side of our industry. As we move forward toward diversifying our export markets, I believe that more opportunities will present themselves to our industry in the export arena. As for 2013, I say, “Bring it on. We’re ready!”
•Sumner (Continued from page 4)
emerging economies to grow at an annual rate of 1.2 percent from now through 2020, while population growth in the developed world is averaging 0.4 percent. These trends favor a rise in poultry consumption, particularly in those countries that shun pork. The picture is somewhat the same for exports of U.S. table eggs, breaking stock in particular, and for pro-
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POULTRY TIMES, December 3, 2012
Business Compiled by David B. Strickland, Editor 770-718-3442 dstrickland@poultrytimes.net
Valley Proteins acquires Perdue rendering operations WINCHESTER, Va. — Valley Proteins has announced the acquisition of the Perdue Agribusiness rendering business. The acquisition includes existing supply agreements with Perdue processing facilities and two rendering facilities located in Accomac, Va.; and Lewiston, N.C. Previously operated by Perdue Fats & Proteins LLC, these plants will join the extensive network of Valley Proteins rendering facilities located throughout the Mid-Atlantic, eastern and southwestern regions of the U.S., the company said. With more than 60 years of experience in rendering, Valley Proteins is well-positioned to efficiently operate the plants and grow the business, the company added. The two newly-acquired rendering facilities will continue to recycle animal by-products into quality fats and proteins used in the manufacture of animal feed ingredients. These nutritious animal feeds nourish the global food supply and help fight world hunger. “We are excited about our latest acquisition, and are confident that we will continue to provide excellent service to Perdue’s current customers,” said Gerald F. Smith Jr., president of Valley Proteins. “These facilities will also allow us to better serve Valley Proteins’ customers in these areas. We are pleased to have a capable staff at these plants, and expect to retain their services as we move forward. As always, we are committed to being a good corporate neighbor in the communities in which we operate by positively contributing to their economies and protecting the environment.” More information can be obtained at www.valleyproteins.com.
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Other Business News Sanderson changing N.C. site plans LAUREL, Miss. — Sanderson Farms Inc. on Nov. 13 announced that Nash County, N.C., will not be the site for a new poultry processing complex. Sanderson Farms, who made this decision together with the officials of Nash County as a result of various timing issues, had previously announced that sites in Nash County had been selected for the location of a new poultry processing complex subject to various contingencies. The company has also announced that construction of the new complex remains on hold pending improvement in market fundamentals, including the supply and price of corn and other feed grains. Commenting on the joint decision, Robby Davis, a member of the Nash County Board of Commissioners who was responsible for recruiting Sanderson Farms to the area, said, “While we are disappointed that Nash County will no longer be considered for this project, we understand the need for certainty with respect to Sanderson Farms’ ability to move forward with construction in a timely manner once the other contingencies are met. Unfortunately, various legal challenges will not allow us to meet Sanderson Farms’ schedule without the possibility of delay. We are grateful for the very professional manner in which Sanderson Farms has negotiated with our board and staff during the entire process.” Joe F. Sanderson Jr., chairman and CEO of Sanderson Farms Inc., said, “We very much appreciate the hard work of everyone in Nash County who worked diligently to recruit us to the area. We also appreciate the support of the local community and the business and political leaders who welcomed us to Nash County. We remain committed to our growth strategy and, toward that end, have been evaluating and will continue to pursue alternative locations that will
enable us to continue our pattern of steady growth as market conditions allow. Today’s (Nov. 13) announcement will affect the location, but not the timing, of the next poultry complex for Sanderson Farms.”
Chore-Time notes accord with Qalovis MILFORD, Ind. — Chore-Time Egg Production Systems, a division of CTB Inc., has entered into an exclusive arrangement with Qalovis Farmer Automatic Energy GmbH of Germany to market its manure drying systems in the U.S. and Canada. Commenting on the agreement, Greg Wilkerson, vice president and general manager of Chore-Time Egg Production Systems, said, “The strategic relationship with Qalovis makes sense for both companies. It combines Qalovis’ experience in providing manure drying and integrated biomass treatment solutions with Chore-Time’s existing manure dryer system product line, egg production systems engineering expertise and strong marketing capabilities.” According to Wilkerson, this is another significant step for ChoreTime in offering more advanced solutions to its customers for handling, drying and treating chicken manure and also other biomass materials such as compost and poultry litter. Wilkerson added that, “In the years ahead, the egg production industry will face increasing challenges for handling, storing and using biomass materials in a cost-effective manner while preserving the environment. The Qalovis systems give Chore-Time the opportunity to provide egg producers with additional and innovative solutions to meet these challenges.” “We are excited about the future of agriculture and proud to have this strategic association with a leading company like CTB that has both the resources and a strong reputation
for product innovation and support to the agricultural market,” said Peter Vergossen, president of Qalovis. “This is a great opportunity for Qalovis to continue to grow and serve customers in the North American market.” More information can be obtained at www.ctbinc.com.
Cal-Maine closes Maxim acquisition JACKSON, Miss. — Cal-Maine Foods Inc. has announced that it has closed the previously announced acquisition of the commercial egg production and related assets of Maxim Production Co. Inc. The assets purchased by CalMaine Foods include a feed mill and two production complexes with capacity for approximately 3.5 million laying hens with related pullet capacity, all located near Boling, Texas. In addition, the acquisition includes contract capacity for approximately 500,000 laying hens near Gonzalez, Texas. More information can be obtained at www.calmainefoods.com.
Tyson Foods wins FFA award INDIANAPOLIS — Tyson Foods Inc. was awarded the Distinguished Service Citation at the 2012 National FFA Convention & Expo for the company’s long-term support of agriculture education. Tyson Foods has sponsored the National FFA for more than 35 years and is currently a 5-star sponsor, providing $500,000 over five years. The company’s support includes: Financial and in-kind support for national officer training and development, which includes the FFA officers spending a week at the company’s headquarters in Springdale, Ark. Representation on the Na(Continued on next page)
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POULTRY TIMES, December 3, 2012 (Continued from previous page)
tional FFA Foundation Sponsor’s Board, with Craig Bacon, Tyson Foods’ senior vice president of Corporate Research and Development, currently serving as an active board member. Active involvement of Tyson Foods’ team members. More than 300 are registered in the FFA CONNECT program while others, including Tyson President and CEO Donnie Smith, have interacted with the National FFA officer team. The donation of 30,000 pounds of chicken to Gleaners Food Bank of Indiana in support of the National FFA Organization’s “Feeding the World-Starting at Home” hunger relief initiative. Tyson Foods was nominated by Ryan Tate, senior regional director at the National FFA Foundation. Awards such as the Distinguished Service Citation recognize that FFA makes a greater effect on students through the cooperation of the entire community, the group noted. FFA and agricultural education programs have helped millions of students achieve extraordinary success for 84 years because of this remarkable dedication.
Campbell profits dip as co. repositions The Associated Press
NEWYORK — Campbell Soup’s net income dipped 8 percent in the first quarter, as the world’s biggest soup maker booked charges related to closing its oldest U.S. plant and a push into the faster-growing premium juice market. The company, which also makes Pepperidge Farm baked goods and V8 vegetable juices, on Nov. 20 cited the moves to reposition its business for the decline in its quarterly profit. But it noted that its flagship U.S. soup business saw a promising sales bump, helped by a new lineup of soups and sauces intended to resonate with younger consumers. Campbell Soup Co., based in Camden, N.J., has struggled in re-
cent years amid intensifying competition and declining consumption of canned soups. CEO Denise Morrison, who was hired about a year ago, has been working to revitalize the company’s main business with new flavors and packaging designed to appeal to people in their 20s and 30s. Instead of the company’s iconic steel cans, for example, the newest soups come in plastic pouches that can be torn open and microwaved. The company said these “Campbell’s Go” soups helped lift U.S. soup sales by 2 percent in the quarter, marking the second straight quarter of growth. In a conference call with analysts, Morrison said that the new soups have created “somewhat of a buzz about soup in general” but that the company wasn’t “breaking out the champagne yet.” The sales increase was also driven by its Chunky ready-to-serve soups, which offset a 1 percent decline in condensed soups. This past September, Campbell cited declining consumption, productivity improvements and a focus on new packaging for the closure of a spice plant and one of its four U.S. soup plants. The closures, which will take place by next summer, will result in the loss of more than 700 jobs. Campbell said it will incur total pretax costs of $115 million, most of which will be in its fiscal 2013. The broader U.S. soup and sauce business rose by 3 percent in the quarter, with volume up 1 percent and prices up 2 percent. Campbell noted the earlier Thanksgiving this year, which led supermarkets and other retailers to stock up on inventories during the first quarter. As a result, it warned that its second-quarter results could be negatively impacted and lag its full-year growth projections. Even as it works to revitalize its soup business, Campbell is looking for growth beyond the center aisles of supermarkets where nonperishable packaged foods are sold. The company’s acquisition of Bolthouse Farms this summer was intended to give it a stake in premium juice and fresh packaged
foods, which are growing more quickly than packaged foods in general. For the period ended Oct. 28, the company said it earned $245 million, or 78 cents per share, for the quarter that ended Oct. 28. That compares with $265 million, or 82 cents per share, a year ago. Not including one-time items related to its acquisition of Bolthouse Farms and the plant closings, Campbell said it earned 88 cents per share. Net sales rose 8 percent to $2.34 billion. Analysts on average expected a profit of 85 cents per share on sales of $2.36 billion, according to FactSet. Sales for Campbell’s snacks and baked goods unit rose 1 percent to $574 million, as Goldfish crackers and new Jingos crackers sales offset a decline in cookies and baked goods. Sales for the beverage unit fell 5 percent to $189 million, due to a decrease in sales of V8 vegetable and V8 V-Fusion juices. The company said it’s focusing on growing categories, such as energy and children’s drinks. Marketing and selling expenses in the quarter decreased 3 percent to $254 million, in line with the company’s plans to scale back on U.S. soup advertising. Campbell said the decrease is a reflection of other measures it’s taking, such as upgraded packaging and in-store promotions. But Ken Goldman, an analyst for J.P. Morgan, noted that growing a business is difficult when marketing dollars are cut. He also noted that it was the lowest level of marketing as a percent of sales for Campbell since at least 1997. Campbell stood by its projections for 2013, with earnings expected to be between $2.51 per share and $2.57 per share. Sales are expected to grow 10 percent to 12 percent, primarily because of its acquisition of Bolthouse Farms. Goldman noted that Campbell will need to deliver a strong performance for the rest of the year to meet that target. Shares of Campbell were down about 2 percent on Nov. 20, at $36.08.
Business USB research yields new phone app ST. LOUIS — Ever wonder whether it’s worth it to apply a fungicide? How about the most costeffective seeding rate? The national soy checkoff has put that information in the palm of your hand. A new app developed by the United Soybean Board (USB) includes two calculators that help farmers plan for their next crop. One helps users determine whether the yield benefits of various input combinations justify the costs. The other uses the main maturity rates for a farmer’s region, the cost of soybean seed and an estimated price of the soybeans at the time of sale to determine an optimal seeding rate based on a percentage of return. The app also includes documents and videos that describe the research behind each tool. “This is a really easy way for farmers to get an idea about seeding rates for soybeans based on both the cost of the seed and the price of the harvested grain,” said Seth Naeve, lead investigator and associate professor of agronomy and plant genetics, University of Minnesota. “It’s a
way for them to utilize that information together to provide them with a numerical suggestion for seeding rates.” The Extreme Beans app is available for Apple iPhone and Androidenabled smartphones and other devices. Farmers can easily find it in their device’s app store by simply searching by the title. The Extreme Beans app is a result of the soy checkoff-funded “Maximum Yield Through Inputs” study, which compared the yields from plots where various inputs were applied to plots without additional inputs. Researchers threw “everything but the kitchen sink” at the soybeans, Naeve said. “The checkoff is continually looking for ways to give farmers tools to improve production and increase the value of their soybeans,” said Jim Schriver, chairman of USB’s production committee and soybean farmer from Bluffton, Ind. “When we see opportunities to help add value to the product, not only in terms of production but also quality, we want to help it come to market, and one of the best ways to do that is through a tool.” More information on the United Soybean Board can be obtained at www.unitedsoybean.org.
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POULTRY TIMES, December 3, 2012
Poultry industry continues to improve worker safety record WASHINGTON — The incidence of nonfatal occupational injuries and illnesses in the poultry sector, which includes slaughter and processing, continues to decline, according to the 2011 Injury and Illness Report recently released by the Department of Labor’s Bureau of Labor Statistics (BLS). The total recordable poultry processing illness and injury rate for 2011 was 5.8 cases per 100 full-time workers (per year), down from 5.9 in 2011. In terms of injuries per 100 full time workers, the poultry industry’s rate of 5.8 was below the rate of 6.4 for all animal slaughter and processing and only slightly above the rate of 5.6 for the entire food manufacturing sector.
Processing Poultry processing’s 2011 rate of 5.8 represents a 74 percent decrease from 1994 (the oldest data available
Ongoing efforts Ongoing efforts to improve the poultry industry’s record in worker safety include:
Sharing non-competitive practices, culminating with the release of a white paper, Ergonomics in the Poultry Industry — A Review of 25 Years of Industry Efforts, which documents many of the industry’s efforts to improve worker safety; Partnering with the Georgia Tech Research Institute to develop an instrument to assess musculoskeletal disorder (MSD) risks in poultry tasks. The tool will measure upper extremity stresses associated with poultry deboning and cutting tasks, and provide quantitative data to help in workstation and tool redesign and process workflow improvements to reduce the stresses and strains associated with repetitive work; Continuing to work with equipment manufacturers and suppliers to improve machine guarding on new equipment and the provision of adequate disconnects to assist and facilitate proper lock out/tag out (LOTO) procedures;
Collaborating with personal protective equipment suppliers. This has led to improvements in cut resistance of protective handwear, reduced fogging issues with safety eyewear, and improved slip resistance in safety footwear to address lacerations, foreign objects/splashes and slip, trips and falls; Conducting monthly meetings of the Poultry Industry Safety & Health Committee to share best practices in hazard identification and risk control; and Holding an annual safety conference for the past 29 years — the National Safety Conference for the Poultry Industry. The June 2012 conference highlighted such things as “recognizing combustible dust hazards,” “hot topics in industrial hygiene” and roundtable discussions covering many topics including machine guarding, fall protection and catastrophic event planning and response.
the new legislative and regulatory climate will require the industry to continue to work together as it faces new challenges. The next four years of the Obama administration, like most administrations that achieve a second term, will see changes in leadership at the federal agencies that affect the turkey industry. There are rumors of potential changes at USDA, FDA (Food & Drug Administration), DHS (Department of Homeland Security), EPA, OMB (Office of Management & Budget), as well as other regulatory bodies. Some of the moves may be immediate, but you can expect a little more staggered approach to any changes in the second term. After working with the current adminis-
tration for the last four years, NTF anticipates increased action on the regulatory front. Some actions, like the pending promulgation of a final poultry inspection rule, will be positive, but other activities, like continuing action on the Chesapeake Bay initiative or antibiotics regulation could be detrimental to our industry. NTF’s improved grassroots networking ability will be needed in communicating with legislators and regulators to influence new or unfinished policies that we will likely face. What to Expect Next Congress: There are still major funding bills for agriculture-related programs, among many other agencies, that have yet to be completed, as well as
a looming debate on passing a Farm Bill before the end of 2012 or punting it until 2013. Additionally next year, it is likely that we will see immigration reform brought up early, the Farm Bill, a major overhaul of the tax code to reduce rates for companies seeking to do more business in the United States, as well as potential entitlement reform. It is also expected that we will see significant fights over the red tape that comes along with the massive regulatory burdens that have been proposed over the last four years. NTF will continue to work diligently on the behalf of the turkey industry to promote an economic atmosphere that limits regulation and promotes business and job growth in the 113th Congress.
on the BLS website), when the recorded rate was 22.7, demonstrating the enormous progress the industry has made in improving safety for its workforce. “The significant and consistent decline in illness and injury rates among our workforce over the past two decades is a direct result of the poultry industry’s strong commitment to worker safety,” said National Chicken Council President Mike Brown. “Our employees are our most important asset. I commend poultry companies and their management teams for their tremendous efforts to protect them and for their ongoing dedication to further progress.” John Starkey, president of U.S. Poultry & Egg Association, commented, “The industry recognizes that our people are our most valuable asset, and worker safety efforts have never been stronger. Poultry companies continue to devote people, time and other resources to
actively identify and correct workplace hazards.” “The poultry industry has been diligent in reducing recordable injuries and illnesses for decades,” said National Turkey Federation President Joel Brandenberger. “This most recent data acknowledges the excellent safety performance achievements the poultry industry has accomplished. We all continue to learn additional practices and tools to further protect the people that work hard every day in our plants to provide high-quality, safe and nutritious protein for consumers.” A recent economic impact study found that poultry production and processing is directly responsible for 327,400 jobs in the United States.
gens in turkey and poultry products. NTF also continues to be in constant communication with FSIS to ensure regulations are science-based and risk-based with measurable achievements in public health. To that end, NTF remains optimistic that FSIS’ New Poultry Inspection System rule will be implemented in early 2013. The rule builds on a highly successful pilot that had strong food safety and worker safety results in select turkey and chicken plants. Political Outlook: Ronald Reagan once said “Status quo, you know, is Latin for ‘the mess we’re in’.” If the 2008 elections made history, the 2012 elections defied it. While many of the turkey industry’s friends in Congress were re-elected,
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we will find an increasingly receptive audience on Capitol Hill. Food Safety: The turkey industry in 2012 continued its intense scientific focus on preventing foodborne pathogens, especially salmonella. The strong industry response to the 2011 recalls helped reassure customers that they can use ground turkey and other turkey products with confidence and continuing these efforts into 2013 will help maintain that high level of confidence. NTF members will continue implementing the federation’s strategic action plan to research and implement emerging technologies and new strategies that will further reduce naturally occurring patho-
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NEW IB VARIANTS REQUIRE US TO WORK SMARTER, NOT HARDER.
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THE KEY IS A CROSS-PROTECTIVE ABILITY. Global research has already proven the cross-protective (also called cross-reactive) abilities of certain IB serotypes: when two different IB serotypes are administered, birds develop immunity to those serotypes and cross-reacting antibodies to several other IB serotypes. In an interview with Dr. Mark Jackwood he says, “We already have a lot of really good vaccines available to us. I think that we can do a better job of actually applying those vaccines and getting a little broader protection using a protocol involving Protectotype.”
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POULTRY TIMES, December 3, 2012
Production begins at Auburn University’s new Poultry and Animal Nutrition Center By Jamie Creamer
Special to Poultry Times
AUBURN, Ala. — Auburn University’s new $7.1 million Poultry and Animal Nutrition Center, a stateof-the-art academic and research feed production facility located on a 50-acre site north of the main campus, officially opened Nov. 16, with a ribbon-cutting ceremony led by university administrators and representatives of the poultry and feed mill industries. “The new Poultry and Animal Nutrition Center at Auburn is the result of a great partnership between the university and agribusiness,” Auburn President Jay Gogue said.
New feed mill The feed mill has had strong industry support since plans began taking shape in early 2008, when a technical advisory committee that included poultry nutritionists and feed mill personnel was formed to provide input on the facility’s design and equipment. Thus far, more than 40 corporations have donated to the facility, including $750,000 in equipment. The feed mill opens as the nation observes the 150th anniversary of the 1862 Morrill Land-Grant Act,
which established a system of public universities to provide practical educations to the sons and daughters of America’s working class. Auburn and the more than 100 other landgrant universities nationwide have a three-fold mission of teaching, research and outreach. Auburn officials say the Poultry and Animal Nutrition Center is poised to enhance programs in all three areas. Housed inside a 12,500-square-foot steel building, the new feed mill is comprised of nine prefabricated modules, Conner each 40 feet long by 8 feet wide by 9 feet and 6 inches high, that were manufactured in Minnesota, trucked 1,100-plus miles to Auburn on nine flatbed trailers and then assembled on site in stacks of three. The modular design is “a smallscale adaptation of a commercial mega-facility” and is ideal for teaching, said Don Conner, head of the Department of Poultry Science at Auburn and the driving force in moving the feed mill from an idea to reality. “Students can come in here and stand in one place and see every step of the milling process and how all the pieces work together,” Con-
For poultry industry news visit www.poultrytimes.net
ner said. “Students want and need hands-on, real-world experience, and they’re going to get that here. “One of our department’s key missions is to serve the industry, and producing outstanding employees is one of the ways we do that,” Conner said. “The experience students get working and learning at the feed mill will equip them with the knowledge and skills the industry is demanding.” The feed mill, in fact, will be operated primarily by students, as part of the poultry science curriculum. “We’re in the process of putting together an introduction-to-feedmilling course, and we’re going to move labs in some of our existing courses out here as well,” Conner said. “We also are going to develop more aggressive courses that eventually will be part of a degree program in feed mill management.” That’s good news to Auburn poultry science alum Mitchell Pate, who headed Sylvest Farms Inc.’s feed milling division in Montgomery for 16 years before returning to Auburn in 2006 as director of the Poultry Research Unit. “The industry is losing feed mill managers; we need the next generation,” Pate said. “I am very excited about the nutrition center and the impact it will have on the poultry industry and on Auburn University.”
Changing locations As director, Pate also is overseeing the move of the feed mill — and, subsequently, the Poultry Research Unit’s poultry houses and processing plant — to the north Auburn campus
from South College Street, where the facilities have been located for almost four decades. That property abuts what is now the Auburn Research Park, and Auburn’s master land-use plans call for the feed mill, poultry houses and processing plant that comprise the research unit to be relocated to the north Auburn campus, which is home to several Alabama Agricultural Experiment Station programs, including the Department of Fisheries and Allied Aquacultures’ 1,600-acre E.W. Shell Fisheries Center. The feed mill is the first poultry science building at north Auburn. But the old feed mill was well past its prime, Conner said. “It served us very well, but it is so outdated now that it had become ineffective for teaching purposes,” Conner said. “Research has been extremely limited at the old location, too. The new feed mill will be a huge jump for nutrition research at Auburn.”
Research Research is where the new facility’s scalability is especially crucial. Patterned after California Polytechnic State University’s Animal Nutrition Center, which Hopkins, Minn.based T.E. Ibberson Co. designed and built in 2008, Auburn’s Poultry and Animal Nutrition Center is built to scale and is scalable by factors of five, 10, 12 and 15. This will allow research conducted at the feed mill to be translated for any size commercial feed mill. And there is an urgent and growing need for advanced research in animal nutrition. “In Alabama and globally, the agriculture sectors face daunting
challenges in the future, and as demands on our resources continue to soar, animal nutrition will become a huge global issue,” Auburn College of Agriculture Dean and Alabama Agricultural Experiment Station Director Bill Batchelor said. “The feed-milling industry will be more essential than ever, as the need for feeds that optimize poultry, livestock and fish production increase.” Auburn research will focus on getting as much nutritional value out of feed as possible, not only for poultry but other agriculturally important animals. And feed produced at the facility will be used as food for the university’s 20,000-bird research flock and livestock research animals. In addition to Auburn scientists, researchers from private corporations will be allowed to contract use of the feed mill for some projects.
Continuing education Conner said the feed mill also will be used to host continuing education workshops and short courses for people in the industry. In addition to Conner, Gogue and Batchelor, others participating in the opening ceremony were Auburn Board of Trustees member Jimmy Sanford, Alabama Poultry and Egg Association Executive Director Johnny Adams; Randall Ennis of Huntsville, an Auburn poultry science alumnus and CEO of Aviagen Inc. poultry breeding company; and William McLean of Laurel, Miss., CEO of The Essmueller Co., a manufacturer of feed mill equipment. Jamie Creamer is a communications and marketing specialist with the College of Agriculture at Auburn University in Auburn, Ala.
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POULTRY TIMES, December 3, 2012
Calendar Compiled by Barbara Olejnik, Associate Editor 770-718-3440 bolejnik@poultrytimes.net
SCIENTIFIC FORUM, Atlanta, Ga. Contact: Southern Poultry Science Society, P.O. Box 1705, Clemson, S.C. 29633. Ph: 662325-3416; execsec@southernpoultrysciencesociety.org; www. southernpoultrysciencesociety.org.
JAN 13-16 — AFBF ANNUAL MTNG.,Nashville, Tenn. Contact: American Farm Bureau Federation, 600 Maryland Ave., S.W., Suite 1000 W, Washington, D.C. 20024. Ph: 202-406-3673; www.fb.org. JAN 25 — GEORGIA AG FORECAST, Georgia Center for Continuing Education, Athens, Ga. Contact: University of Georgia College of Agricultural & Environmental Sciences; www.georgiaagforecast.com. JAN 28 — GEORGIA AG FORECAST, ECO Center, Rome, Ga. Contact: University of Georgia College of Agricultural & Environmental Sciences; www.georgiaagforecast.com. JAN 28-29
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INT’L.
POULTRY
JAN 28-29 — UEP BOARD MTNG., Atlanta, Ga. Contact: United Egg Producers, 1720 Windward Concourse, Suite 230, Alpharetta, Ga. 30005. Ph: 770-360-9220; www.unitedegg.com. JAN 29 — GEORGIA AG FORECAST, Georgia Farm Bureau, Macon, Ga. Contact: University of Georgia College of Agricultural & Environmental Sciences; www.georgiaagforecast.com. JAN 29 — NCC TECHNICAL & REGULATORY COMMITTEE, Georgia
World Congress Center, Atlanta, Ga. Contact: National Chicken Council, 1052 15th St., N.W., Washington, D.C. 20005. Ph: 202-296-2622; ncc@ chickenusa.org; www.nationalchickencouncil.org; www.eatchicken.com. — INTERNATIONAL JAN 29-31 PRODUCTION & PROCESSING EXPO, Georgia World Congress Center, Atlanta, Ga. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401, seminar@uspoultry. org, www.poultryegginstitute.org; or American Feed Industry Association, 2101 Wilson Blvd., Suite 916, Arlington, Va. 22201, 703-524-0810, afia@afia.org, www.afia.org; American Meat Institute, 1150 Connecticut Ave., N.W., Wshington, D.C. 20036, 202-587-4200, www.meatami.com JAN 29-Feb. 1 — NPFDA ANNUAL CONV., Hyatt Regency, Atlanta, Ga. Contact: National Poultry & Food Distributors Assocatiion, 2014 Osborne Road, Saint Marys, Ga. 31558. Ph: 770-5359901; kkm@npfda.org; www.npfda.org. JAN 30 — GEORGIA AG FORECAST, UGA Tifton Conference Center, Tifton, Ga. Contact: University of Georgia College of Agricultural & Environmental Sciences; www.georgiaagforecast.com. JAN 30 — CHICKEN SUMMIT 2013 ADVSORY GROUP, Atlanta, Ga. Contact: National Chicken Council, 1052 15th St., N.W., Washington, D.C. 20005. Ph: 202-296-2622; ncc@ chickenusa.org; www.nationalchickencouncil.org; www.eatchicken.com.
CAREER OPPORTUNITIES
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—NCC MARKETING JAN 30 COMMITTEE, Atlanta, Ga. Contact: National Chicken Council, 1052 15th St., N.W., Washington, D.C. 20005. Ph: 202-296-2622; ncc@chickenusa.org; www.nationalchickencouncil.org; www.eatchicken.com. JAN 30 — NCC BOARD MTNG., Atlanta, Ga. Contact: National Chicken Council, 1052 15th St., N.W., Washington, D.C. 20005. Ph: 202-296-2622; ncc@ chickenusa.org; www.nationalchickencouncil.org; www.eatchicken.com. — NEQS ANNUAL JAN 30 STAKEHOLDERS MTNG., Atlanta, Ga. Contact: National Egg Quality School, Maryland Department of Agriculture, 50 Harry S. Truman Pkwy., Annapolis, Md. 21401. Ph: 410-841-5769; Deanna. Baldwin@maryland.gov; www.neqs.org.
N.W., Suite 400, Washington, D.C. 20005. Ph: 202-898-0100; info@turkeyfed.org; www.eatturkey.com. FEB 20-21 — NPI CONV., Norfolk Lodge & Suites, Divots Conference Center, Norfolk, Neb. Contact: Nebraska Poultry Industries Inc., University of Nebraska, 102 Mussehl Hall, P.O. Box 830721, Lincoln, Neb. 685830721; 402-472-2051; egg-turkey@uni.edu; www.nepoultry.org. FEB 21 — TPA POULTRY SCHOOL, Ellington Agricultural Center, Nashville, Tenn. Contact: Tennessee Poultry Association, P.O. Box 1525, Shelbyville, Tenn. 37162-1525. Ph: 931-225-1123; dbarnett@ tnpoultry.org; www.tnpoultry.org. FEB 25-27 — PEPA ANNUAL CONV., Intercontinental, Monterey, Calif. Contact: Pacific Egg & Poultry Association, 1521 I St., Sacramento, Calif. 95814. Ph: 916-441-0801; dmurdock@cgfa.org; www.pacificegg.org. 17 — HOUSTON FEB 25-March LIVESTOCK SHOW & RODEO, Houston, Texas. Contact: Houston Livestock Show & Rodeo, P.O. Box 20070, Houston, Texas 77225-0070. Ph: 832-667-1000; questions@ rodeohouston.com; www.hlrs.com. MAR 11 — CPF WINTER BOARD MTNG., Piccadilly Inn, Fresno, Calif. Contact: California Poultry Federation, 4640 Spyres Way, Suite 4, Modesto, Calif. 95356. PAh: 209-576-6355; www.cpif.org. MAR 11-15 — AFIA SPRING COMMITTEE MTNGS./PURCHASING & INGREDIENT SUPPLIERS CONF., Omni Fort Worth Hotel, Fort Worth, Texas. Contact: American Feed Industry Association, 2101 Wilson Blvd., Suite 916. Arlington, Va. 22201. Ph: 703524-0810; afia@afia.org; www.afia.org. — ENVIRONMENTAL MAR 12-13 MGMNT. SMNR., Marriott Hotel, New Orleans, La. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401; seminar@uspoultry. org; www.poultryegginstitute.org. MAR 12-14 — MPF ANNUAL CONV., Saint Paul RiverCentre, St. Paul, Minn. Contact: Midwest Poultry Federation, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-682-2171; info@midwestpoultry.com; www.midwestpoultry.com.
JAN 31 — GEORGIA AG FORECAST, Decatur County Livestock Complex, Bainbridge, Ga. Contact: University of Georgia College of Agricultural & Environmental Sciences; www.georgiaagforecast.com.
MAR 13 — CEAM ANNUAL MTNG., Saint Paul RiverCentr, St. Paul, Minn. Contact: Chicken & Egg Association of Minnesota, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-682-2171; info@ mnchicken.org; www.mnchicken.org.
FEB 1 — GEORGIA AG FORECAST, Toombs County Agri-Center, Lyons, Ga. Contact: University of Georgia College of Agricultural & Environmental Sciences; www.georgiaagforecast.com.
MAR 13 — MTGA ANNUAL MTNG., Saint Paul RiverCentre, St. Paul, Minn. Contact: Minnesota Turkey Growers Association, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-682-2171; info@minnesotaturkey.com; www.minnesotaturkey.com.
FEB 13-16 — NTF ANNUAL CONF., Coronado Bay Resort, San Diego, Calif. Contact: National Turkey Federation, 1225 New York Ave.,
MAR 20-21 — FEED MILL MGMNT. SMNR., Doubletree Hotel, Nashville, Tenn. Contact: U.S. Poultry & Egg
Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770493-9401, seminar@uspoultry. org, www.poultryegginstitute.org. MAR 20-21 — AEB BOARD MTNG., Chicago, Ill. Ga. Contact: American Egg Board, 1460 Renaissance Drive, Park Ridge, Ill. 60068. Ph: 847-2967043; aeb@aeb.org; www.aeb.org. APR 5 — OPA INDUSTRY CELEBRATION BANQUET, Renaissance Columbus Downtown Hotel, Columbus, Ohio. Contact: Ohio Poultry Association, 5930 Sharonb Woods Blvd., Columbus, Ohio 43229. Ph: 614-882-6111; jchakeres@ ohiopoultry.org; www.ohiopoultry.org. APR 17 — DPI BOOSTER BANQUET, Salisbury, Md. Contact: Delmarva Poultry Industry Inc., 16686 County Seat Hwy., Georgetown, Del. 19947-4881; dpi@ dpichicken.com; www.dpichicken.com APR 19-21 — GPF ANNUAL MTNG., Lake Lanier Islands Resort, Buford, Ga. Contact: Georgia Poultry Federation, P.O. Box 763, Gainesville, Ga. 30503. Ph: 770-532-0473; www.gapf.org. APR 22-24 — HUMAN RESOURCES SMNR., Sandestin Golf & Beach Resort, Destin, Fla. Mo. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401, seminar@uspoultry. org, www.poultryegginstitute.org. MAY 2-3 — NATIONAL BREEDERS ROUNDTABLE, Airport Marriott Hotel, St. Louis, Mo. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401, seminar@uspoultry. org, www.poultryegginstitute.org. MAY 14-15 — AFIA BOARD MTNG., Arlington, Va. Contact: American Feed Industry Association, 2101 Wilson Blvd., Suite 916, Arlington, Va. 22201. Ph: 703524-0810; afia@afia.org, www.afia.org. MAY 15-16 — POULTRY PROCESSORS WKSHP., Embassy Suites Atlanta Centennial Olympic Park, Atlanta, Ga. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770493-9401, seminar@uspoultry. org, www.poultryegginstitute.org. MAY 20-22 — UEP LEGISLATIVE BOARD MTNG., Washington, D.C. Contact: United Egg Producers, 1720 Windward Concourse, Suite 230, Alpharetta, Ga. 30005. Ph: 770360-9220; www.unitedegg.com. MAY 20-23 — NEQS — Harrisburg, Pa. Contact: National Egg Quality School, Maryland Department of Agriculture, 50 Harry S. Truman Pkwy., Annapolis, Md. 21401. Ph: 410-841-5769; Deanna. Baldwin@maryland.gov; www.neqs.org. JUN 7-8 — AP&EA GOLF TOURNAMENT and EVENING OF FUN, Birmingham, Ala. Contact: Alabama Poultry & Egg Association, P.O. Box 240, Montgomery, Ala. 36101. Ph: 334265-2732; www.alabamapoultry.org.
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POULTRY TIMES, December 3, 2012
Experts at seminar offer perspectives on future DUNBOYNE, Ireland — With high feed costs, increased government regulations and intensifying consumer demands, the future of the poultry industry is difficult to predict. However, at Alltech’s 10th Poultry Solutions Seminar held in Hannover, Germany, on Nov. 12, a number of poultry industry experts lent their experience to the discussion, giving presentations on their research and the issues that they believe will be of most importance in 2013. Antibiotic resistance is a trending news topic globally and governments are starting to take notice. Dr. Marcel Boereboom, Royal Dutch Society for Veterinary Medicine, discussed the impact this is having on the Dutch industry, following a
study by the Dutch Health Council. He described how the government of the Netherlands has, to date, banned certain antibiotics and implemented a targeted reduction of 50 percent (of 2009 levels) of the total amount of antibiotics used in food producing animals by 2013. Dr. Stephen Collett, a professor at the University of Georgia, recommended a shift in gut health management, from working against pathogens to working with the intestinal microbial community. This involves improving performance by accelerating the evolution and maintaining the stability of favorable intestinal microbiota. According to Collett, the three most important areas of an effective intestinal health management program include: “seeding” the gut with
favorable organisms, “feeding” the favorable organisms and “weeding” out the unfavorable organisms. Dr. Roselina Angel, a professor at the University of Maryland, detailed research on how neonatal conditioning, resulting in epigenetic changes, shows great promise in terms of improving phosphorus utilization. “By applying a moderate phosphorus deficiency in young chicks, the bird is conditioned to utilize phosphorus more efficiently throughout its life. The timing of the conditioning is critical and requires a clear understanding of skeletal growth, the main driver of calcium and phosphorus requirements,” Angel said. Controlling campylobacter, a bacteria that poses no danger to
poultry, but is the leading cause of human bacterial gastroenteritis, was the topic of Dr. Frank Pasmans’ presentation, researched at Ghent University. When a single bird is infected, the infection spreads quickly through the flock, resulting in the majority of birds being colonized within only a few days after campylobacter entry. Pasman explained how, overall, the outlook is bleak if the flock has been infected but results of recent studies, using oral administration of bovine or chicken immunoglobulins of hyper-immunized animals and the use of bacteriocins to limit caecal colonization, look promising. “We are still quite a ways away from commercialized products, but the future does seem to be positive,”
he said. To deal with unpredictable feed costs and an inconsistent supply, Dr. David Roland, a professor at Auburn University, recommended his econometric approach to the feeding of layers. “Feeding correctly is challenging because nutrient requirements and dietary levels needed for optimal returns are continually changing,” Roland said. He presented his econometrics calculation tool to attendees, demonstrating how optimal econometric feeding can improve performance, returns and help regulate feed and egg prices at the same time. A more detailed account of the presentations at the Solutions Seminar can be obtained from Alltech at www.alltech.com.
Programs in U.S. match fledgling farmers, landowners The Associated Press
ALBANY, N.Y. — When Schuyler and Colby Gail were trying to get started in farming, they ran into an obstacle common to many fledgling farmers: Land was expensive and hard to find. They turned to a local land conservancy, which matched them up with a landowner willing to sell at an affordable price. Now, they raise pigs, lambs and poultry on their farm in New Lebanon, 25 miles southeast of Albany near the Massachusetts border. “We were able to come to a better financial agreement because the landowners were excited about what we were doing,” said Schuyler Gail, who launched Climbing Tree Farm a year ago with her husband, a carpenter. “It wouldn’t be the same if we bought land off the regular real estate market.” To keep land in agricultural production and help a new generation start farming as older farmers near retirement, land conservancies and other farm preservation groups have
launched a growing number of landowner-farmer matching programs like the one that helped the Gails. About 25 states have FarmLink programs that match new farmers with landowners, and the programs vary in how involved they are in matches. For example, Connecticut has made only about a half dozen since it began in 2007 but staffers aren’t allowed to get involved in leases, spokeswoman Jane Slupecki said. The opposite is true in California, said Central Valley coordinator Liya Schwartzman. In Maine, the program has facilitated 82 matches since it started in 2002, a spokeswoman said. More than 60 percent of farmers are over 55, and the fastest growing group of farmers and ranchers is those over 65, Census figures showed. U.S. Agriculture Secretary Tom Vilsack has set a goal of creating 100,000 new farmers within the next few years. In New York and New England, where nearly a quarter of farmland is owned by farmers 65 and older, a
new generation is eager to produce the locally grown organic vegetables, fruit, meat and milk that are in high demand at urban greenmarkets and restaurants. But the proximity to population centers that creates demand for local farm goods also pushes land prices out of reach for fledgling farmers and makes selling to developers a tempting option for farmers looking for a retirement cushion. New York state has lost almost half a million acres of farmland to subdivisions, strip malls and scattered development in the past 25 years, according to the American Farmland Trust. “While we can’t control the price of land, we can help farmers obtain land,” said Marissa Codey of the Columbia Land Conservancy south of Albany that helped the Gails find their land. The conservancy’s matching program has grown quickly through word of mouth since it began in 2009, now counting about 85 landowners and 65 farmers. “There’s a pretty steady flow of new people to the program,” Codey said.
Some of the landowners are urbanites who bought former farms as second homes and would like to lease some acreage to someone who’ll farm it. Others have had their land in production for generations and would prefer to pass it on to a new farmer rather than see it developed. The Columbia Land Conservancy’s primary focus is on facilitating leases rather than sales. “Leasing land is not a new concept,” Codey said. “The change we’re seeing is that so many farms are now participating in the local food movement.” Landowner Larry Steele said he and his wife, Betty, had wanted their 89-acre property to be an active farm since they bought it 15 years ago, but they knew nothing about farming. They joined the Columbia Land Conservancy’s matching program three years ago and interviewed about a dozen farmers before signing a lease with 29-year-old Anthony Mecca, who grew up in the New York City suburbs and became
interested in sustainable agriculture as a young adult. “We were looking for someone who was committed, who had a great work ethic, who was passionate about what he did,” Steele said. “Someone with integrity that we could build a long-term relationship with.” They negotiated a lease where Mecca pays no monthly fee until the farm reaches a specific level of annual sales; when lease payments begin, the Steeles will reserve half of each payment for improvements on the farm. For some landowners, the incentive is more spiritual than financial. “We felt almost a moral obligation to use the land the way it was intended,” Steele said. “It was originally a farm in the late 1800s; we wanted to resurrect it and have it be operational again.” Now in its third year, Mecca’s Great Song Farm is a communitysupported agriculture operation that feeds about 95 families. “We couldn’t be happier,” Steele said.
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POULTRY TIMES, December 3, 2012
ConAgra and Ralcorp facing ratings review on deal The Associated Press
NEW YORK — Fitch Ratings downgraded its ratings on ConAgra Foods and two other rating agencies are reviewing their assessment of ConAgra and Ralcorp, following the food company’s announcement on Nov. 27 that it plans to buy private-label food producer Ralcorp for $5 billion. ConAgra Foods Inc., whose brands include Banquet and Chef Boyardee, will pay $90 per share to Ralcorp Holdings Inc. stockholders. The companies value the transaction at about $6.8 billion, when debt is included. The acquisition is expected to close by the end of March, provided it gets approval from Ral-
corp shareholders. Fitch said on Nov. 27 that it has downgraded its long-term issuer default, senior unsecured notes and bank credit facility ratings on ConAgra one notch to “BBB-” from “BBB” on concerns about its debt position. The rating change keeps it in investmentgrade territory. It also affirmed the same “BBB-” ratings for Ralcorp. Standard & Poor’s Ratings Services on Nov. 27 placed ConAgra’s investment-grade “BBB” long-term corporate credit ratings, along with other ratings, on review for possible downgrade. S&P also put Ralcorp’s “BBB-” issue-level rating on review for possible downgrade. A
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POULTRY TIMES, December 3, 2012
Recycling ammonia emissions from livestock waste as fertilizer By Ann Perry
Special to Poultry Times
BELTSVILLE, Md. — One of the costs of running a farm can include buying nitrogen in the form of anhydrous ammonia to fertilize crops. But there are other agricultural costs associated with nitrogen, especially when the nitrogen in livestock waste produces pungent — and potentially harmful — ammonia emissions. But on June 20, 2011, Agricultural Research Service soil scientists Matias Vanotti and Ariel Szogi filed U.S. Patent Application No.13/164,363 for an invention that could help change on-farm nitrogen management. It’s a system that uses gas-permeable membranes
to capture and recycle ammonia from livestock wastewater before the ammonia goes into the air. The two scientists, who work at the ARS Coastal Plains Soil, Water and Plant Research Center in Florence, S.C., found that they could use these membranes to reduce ammonia emissions from livestock waste and capture concentrated liquid nitrogen that could be sold as fertilizer. The membranes are similar to materials already used in waterproof outdoor gear and in biomedical devices that add oxygen and remove carbon dioxide from blood. Using these materials, the scientists recorded an average removal rate of 45 to 153 milligrams (mg) of ammo-
nia per liter per day when manure ammonia concentrations ranged from 138 to 302 mg ammonia per liter. When manure pH increased, ammonia recovery also increased. For instance, the scientists were able to recover around 1.2 percent of the total ammonia emissions per hour from manure with a pH of 8.3. But the recovery rate increased 10 times — to 13 percent per hour — when the pH was 10.0. In a follow-up study, Vanotti and Szogi immersed the membrane module into liquid manure that had 1,290 mg of ammonia per liter. After nine days, the total ammonia concentration decreased about 50 percent
to 663 mg per liter, and the pH decreased from 8.1 to 7.0. This meant that the gaseous, or free, ammonia in the liquid — the portion of the total ammonia linked to ammonia emissions — decreased 95 percent from 114.2 to 5.4 mg per liter. Using the same process in 10 consecutive batches of raw swine manure, they recovered concentrated nitrogen in a clear solution that contained 53,000 mg of ammonia per liter. “When we started this research more than 10 years ago, the membranes were very expensive,” Vanotti says. “But the prices have come down, so its use for recovering the ammonia in manure is now much more cost effective.”
The scientists want to scale up the process to see whether the membrane modules would lower ammonia emissions when installed in manure pits below the slotted floors in swine barns or in manure tanks and lagoons. If so, they believe that livestock producers could use the technology to help meet air-quality regulations, save fuel, protect the health of livestock and their human caretakers, improve livestock productivity and recover nitrogen that can be sold as fertilizer.
ethanol industry will use more than 40 percent of the corn supply next year. Further, the carry-over stocks for 2012-13 are now forecast at 647 million bushels, less than 5 percent of expected corn usage and the lowest amount ever. This is a 35 percent decrease from last year’s carry-over amount. This means there likely would be no corn reserves for next year should the country experience another poor crop. “We now have about one-third less of the corn that we need to adequately supply animal feed, ethanol, exports and sufficient carryover levels,” the coalition noted.
“But the government continues to mandate that a significant amount of the corn supply be blended next year into gasoline.” When Congress expanded the RFS in 2007, certain “safety valves” were added to the law. One provision allows the EPA administrator to reduce the required volume of renewable fuel in any year based on severe harm to the economy or environment of a state, a region or the U.S. In addition to the livestock, poultry and dairy organizations, a bipartisan group of 34 U.S. senators and 156 House members and nine governors petitioned EPA to grant
a waiver of the federal requirement for the production of corn ethanol because the mandate, coupled with a drought that has reduced yields and pushed up prices of feed grains, has caused the severe economic harm for which Congress added “safety valves.” “Unfortunately, EPA chose to ignore all of them by issuing a decision that is going to cost more American jobs, put family farmers and ranchers out of business, create an animal feed crisis and cause food costs to soar in the coming months,” the coalition concluded. Members of the coalition include the American Feed Industry Association, American Meat Institute,
American Sheep Industries Association, California Dairy Campaign, Dairy Producers of New Mexico, Dairy Producers of Utah, Idaho Dairymen’s Association, Milk Producers Council, National Cattlemen’s Beef Association, National Chicken Council, National Pork Producers Council, National Turkey Federation, Nevada State Dairy Commission, North American Meat Association, Northwest Dairy Association, Oregon Dairy Farmers Association, Southeast Milk Inc., United Dairymen of Arizona, U.S. Poultry & Egg Association and the Washington State Dairy Federation.
Ann Perry is a public affairs specialist with USDA’s Agricultural Research Service in Beltsville, Md.
•Waiver (Continued from page 2)
several months because of rising feed grain prices. “How many more jobs and family farms have to be lost before we change this misguided policy and create a level playing field on the free market for the end users of corn?” the coalition asked. “It is now abundantly clear that this law is broken, and we will explore remedies to fix it.” USDA’s Nov. 9 crop report puts this year’s corn harvest at just 10.7 billion bushels, down 13 percent from last year and down 28 percent from USDA’s May projection. The
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POULTRY TIMES, December 3, 2012
Markets
ate. Breaking stock supplies were moderate for the light to instances moderate demand. Light type fowl offerings were sufficient; processing schedules were reduced.
Compiled by David B. Strickland, Editor 770-718-3442 dstrickland@poultrytimes.net
National Egg Market:
ally moderate. The total shell egg inventory was 6.1 percent higher than the previous week. Supplies were light to moderate, while moderate to heavy on Mediums in the Midwest and Northeast regions. Market activity was slow to moder-
(Nov. 27): New and regional prices were steady. Demand into retail and food service channels was light to usu-
run tenders $1.89; skinless/boneless breasts $1.57½; whole breasts $1.00½; boneless/skinless thigh meat $1.32½; thighs 71½¢; drumsticks 67¢; leg quarters 54¢; wings $1.83½.
Fowl:
National Slaughter:
Nov. 23: Live spent heavy fowl Final prices at Farm Buyer Loading (per pound): range 9½-21¢
Broiler: Estimated slaughter for week ending Nov. 24 is 122,460,000. Actual slaughter for the week ending Nov. 17 was 160,103,000. Heavy-type hen: Estimated slaughter for the week ending Nov. 24 is 845,000. Actual slaughter for the week ending Nov. 17 was 1,826,000. Light-type hen: Estimated slaughter for the week ending Nov. 24
Parts: Georgia: The f.o.b. dock quoted prices on ice-pack parts based on truckload and pool truckload lots for the week of Nov. 26: line
The following chart provides an annual high and a comparison of recent activity of major poultry company stocks.
USDA Shell Eggs AMS weekly combined region shell egg prices Average prices on sales to volume buyers, Grade A or better, White eggs in cartons, delivered warehouse, cents per dozen.
Annual High
Cal-Maine 47.00 Campbell Soup 37.16 ConAgra 29.73 Hormel 31.49 Pilgrim’s Pride 8.68 Sanderson Farms 55.87 Seaboard 2391.97 Tyson 21.06
Nov. 20
Estimates: The estimated number of broilerfryers available for the week ending Nov. 24 was 147.5 million head, compared to 114 million head slaughtered the same week last year. The estimated U.S. slaughter for the week of Nov. 24 was 122.7 million head, or minus 24.8 million less than estimated. For the week of Dec. 1, the estimated available is 145.1 million head, notes USDA’s Agricultural Marketing Service Poultry Programs.
Broiler/Fryer Markets
Industry Stock Report
Company
is 829,000. Actual slaughter for the week ending Nov. 17 was 1,373,000. Total: Week of Nov. 24: 124,134,000. Week of Nov. 17: 163,302,000.
Nov. 27
43.75 45.73 36.21 36.60 27.96 29.63 30.05 30.55 6.46 6.91 48.48 48.70 2144.55 2350.00 19.07 19.11
Nov. 23
Extra Large Regions: Northeast 132.00 Southeast 139.50 Midwest 128.50 South Central 137.50 Combined 134.47
Large
Medium
131.00 137.50 126.50 137.50 133.30
105.00 107.00 101.50 107.50 105.33
Computed from simple weekly averages weighted by regional area populations
USDA Composite Weighted Average For week of: Nov. 26 98.50¢ For week of: Nov. 19 95.66¢ Chi.-Del.-Ga.-L.A.-Miss.-N.Y.--S.F.-South. States Nov. 12 Nov. 26 For delivery week of: Chicago majority 85--90¢ 92--99¢ Mississippi majority 84--87¢ 90--92¢ New York majority 88--91¢ 96--99¢ For delivery week of: Nov. 13 Nov. 27 Delmarva weighted average 69¢--$1.09 69¢--$1.15 Georgia f.o.b. dock offering 96¼¢ 97¢ Los Angeles majority price $1.05 $1.06 San Francisco majority price $1.05½ $1.06½ Southern States f.o.b. average 64.63¢ 64.13¢
Grain Prices
Turkey Markets
OHIO COUNTRY ELEV. Nov. 13 Nov. 20 Nov. 27 No. 2 Yellow Corn/bu. $7.33 $7.49 $7.62 Soybeans/bu. $13.70 $13.65 $13.99 (Courtesy: Prospect Farmers Exchange, Prospect, Ohio)
(Courtesy: A.G. Edwards & Sons Inc.)
Weighted avg. prices for frozen whole young turkeys Weighted average (cents/lb.) F.O.B. shipper dock
Broiler Eggs Set/Chicks Placed in 19 States Ala Ark
Ca,Tn,Wv
Del Fla Ga Ky La Md Miss Mo. N.C. Okla Pa S.C. Tex Va
19 States Total Prev. year % Prev. yr.
EGGS SET (Thousands)
CHICKS PLACED (Thousands)
Oct. 27
Nov. 3
Nov. 10
Nov. 17
Oct. 27
Nov. 3
Nov. 10
Nov. 17
25,961 20,507 10,563 3,240 1,353 30,168 7,210 3,183 6,766 16,365 7,867 19,331 6,622 3,246 5,252 13,381 6,195
24,787 20,132 10,261 3,284 1,351 29,852 7,330 2,956 6,803 15,168 6,859 19,266 6,662 3,167 5,156 12,996 4,780
26,932 21,045 10,414 3,389 1,353 31,559 7,094 2,956 7,136 17,223 7,258 20.202 6,553 3,546 5,129 13,980 5,127
27,513 21,688 10,883 3,415 1,351 32,130 7,517 3,288 7,158 16,865 8,040 19,553 6,830 3,678 5,402 14,128 6,275
19,380 19,282 10,666 4,232 1,291 26,577 5,910 2,703 5,259 14,142 5,543 14,988 4,356 2,945 3,818 11,148 4,494
18,979 17,289 10,090 4,164 1,276 25,812 5,544 2,949 5,712 13,994 4,996 14,505 3,706 2,901 4,251 11,027 4,526
18,543 17,258 8,560 4,095 1,035 25,119 5,247 2,981 5,246 13,869 4,849 15,055 4,181 2,634 3,726 10,769 4,349
19,054 20,306 10,729 4,371 1,326 25,014 5,569 2,891 5,307 13,993 5,265 15,679 3,680 2,647 4,365 11,234 4,507
187,210 185,172
180,810 186,594
190,896 194,224
195,714 195,158
156,734 153,311
151,721 149,126
147,516 152,174
156,027 152,567
101
97
98
100
102
102
97
102
1/Current week as percent of same week last year.
National Week ending Nov. 23 Hens (8-16 lbs.) 106.15 Toms (16-24 lbs.) 108.52
Last year 112.50 114.46
Week ending Nov. 16 Hens (8-16 lbs.) Toms (16-24 lbs.)
Oct. avg. 110.27 112.18
107.07 112.92
Egg Markets USDA quotations New York cartoned del. store-door: Nov. 20 Nov. 27 Extra large, no change $1.38--$1.42 $1.38--$1.42 Large, no change $1.36--$1.40 $1.36--$1.40 Medium, no change $1.11--$1.15 $1.11--$1.15 Southeast Regional del. warehouse: Nov. 20 Nov. 27 Extra large, no change $1.34--$1.46 $1.34--$1.50 Large, no change $1.32--$1.48 $1.32--$1.52 Medium, no change $1.04½--$1.24 $1.04½--$1.22
CMYK
15
POULTRY TIMES, December 3, 2012
AMERICAN EGG BOARD HOTLINE AEB Hotline appears regularly in Poultry Times and provides an update on programs and services provided for egg producers by the American Egg Board. Details on any item mentioned may be obtained by contacting AEB at 1460 Renaissance Dr., Park Ridge, Ill. 60068. Phone: 847-296-7043. In October, the new Incredible Edible Egg Jingle launched and within its first week, earned more than 5.9 million media impressions. This jingle has a fun, modern flair and builds on what AEB started 35 years ago when the Incredible Edible Egg campaign first was introduced. The new lyrics celebrate the health benefits of eating eggs with updated information on cholesterol and vitamin D content. To help promote the new tune and encourage consumer engagement, AEB programming included: Partnerships with popular national radio programs, “Mike and Mike” on ESPN and Ryan Seacrest’s American Top 40, to promote the jingle to their listeners throughout the month. An “Incredible Edible Egg Jingle Contest” on AEB’s Facebook, encouraged fans to record their own rendition of the new jingle to win prizes. The contest was featured on OnlineVideoContests.com, a popular video site, and was in cue to launch on VidOpp.com, another popular site. Thanks to several egg farmer “volunteers,” we created a video of farmers and
their families singing the jingle, which posteded to Facebook and YouTube to help promote the contest. View it here: http:// tinyurl.com/8k57smr. The video has already received more than 1,900 views. Press materials were developed, including a release promoting the 35th anniversary of the jingle and the contest along with a fact sheet with “35 Reasons to Love Eggs.” The press kit reached media across the country on Oct. 9 and was posted to PR Newswire. To date, the press kit has a 11.4 percent open rate and 12.8 percent click-thru rate to date (industry average is 2 percent), and the press release has been picked up by 256 outlets. The jingle press kit has already exceeded the recent back-to-school press kit, which had a 10.9 percent open rate and 7.9 percent clickthru rate. Articles appeared in the Star Tribune and Agri-Marketing. AEB developed a ringtone of the jingle for smart phones that is available for free on IncredibleEgg.org. The state promotional organizations are already leveraging this national message locally through radio buys. These contacts also received the press kit for sharing with local media. Through the share button on Facebook, the state organizations are also sharing the contest details with their followers. AEB is eggcited to reintroduce the iconic jingle to consumers.
USPOULTRY Foundation awards $160K in student recruiting grants TUCKER, Ga. — The USPOULTRY Foundation has approved student recruiting grants totaling approximately $160,000 to the six U.S. universities with poultry science departments and 15 other institutions with industry related programs. The foundation provides annual recruiting funds to colleges and universities to attract students to their poultry programs.
Poultry science The six poultry science departments receiving the grants are: Texas A&M University, $24,910; North Carolina State University, $18,279; University of Arkansas, $15,491; Auburn University, $13,632; Mississippi State University, $14,477; and University of Georgia, $13,210. Related programs The 15 other institutions with industry related programs receiving recruiting grants under the founda-
tion’s Industry Education Funding Program are: California State University Fresno, Calif., $7,000; Clemson University, South Carolina, $2,500; Crowder College, Missouri, $2,500; Gainesville State College, Georgia, $2,000; Iowa State University, Iowa, $2,000; Jones Junior College, Mississippi, $2,400; Louisiana State University, Louisiana, $7,000; Modesto Junior College, California, $5,000; National Park Community College, Arkansas, $6,500; Penn State University, Pennsylvania, $7,000; Stephen F. Austin State University, Texas, $3,000; Tennessee Tech University, Tennessee, $2,500; University of Delaware, Delaware, $4,600; Wallace State Community College, Alabama, $2,000; West Virginia University, West Virginia, $4,000. “It is vital that we continue to draw sharp young people to study for careers in the poultry industry,” said USPOULTRY Foundation chairman Gary Cooper, Cooper Farms, Oakwood, Ohio. “We need
bright young managers to join our companies today, as they will eventually be the leaders of tomorrow. USPOULTRY Foundation recruiting grants play an important role in encouraging students to enroll in industry related studies and in becoming future industry leaders of tomorrow,” he said. U.S. Poultry & Egg Association established the USPOULTRY Foundation in 1994 to provide student recruiting funds to universities with poultry science departments. In 2004, the Poultry Science Education Funding Program, now named the Industry Education Recruitment Funding Program, was added to the foundation’s umbrella so other colleges and universities that offer industry related studies are eligible to apply for recruiting grants. Applications must be submitted for these grants, which provide up to $7,000 each. More information can be obtained at www.uspoultry.org.
Index of Advertisers Acme, 8H........................................................................................................................................................... 918-682-7791; www.acmeag.com Agrifan, 2........................................................................................................................................................ 800-236-7080; www.envirofan.com American Proteins, 8F............................................................................................................................................... www.americanproteins.com Delong’s Gizzard, 8B........................................................................................................................................ 478-743-9134; www.delongs.com EnSave, 8B..........................................................................................................................................................800-732-1300; www.ensave.com FPM, 8H...............................................................................................................................................................402-729-2264; www.fpmne.com Gasolec, 8B.........................................................................................................................................................................................800-628-4588 Griffin Industries, 8H................................................................................................................. 877-659-8438; 800-669-1209; www.darpro.com Liphatech, 8A..................................................................................................................................................415-351-1476; www.liphatech.com Merck Animal Health, 8D, 8E............................................................................................................................................... www.ihc-poultry.com Merial Select, Cover III.................................................................................770-536-8787; http://us.merial.com/avian_producers/products.asp Preserve, Cover II...............................................................................................................................................................................800-995-1607 Pro Tech, 7................................................................................................................................................... 800-438-1707; www.pro-techinc.com Reeves, Cover IV.......................................................................................................................................888-854-5221; www.reevessupply.com Rose Acre Farms, 10......................................................................................................................................................... www.roseacrefarms.com Space-Ray, 13 .................................................................................................................................................. 800-849-7311; www.spaceray.com Star Labs, 8F.....................................................................................................................................................800-894-5396; www.primalac.com United Soybean, 8C........................................................................................................................................................... www.unitedsoybean.org Weigh Tech, 8F......................................................................................................................................... 800-457-3720; www.weightechinc.com
CMYK
16
POULTRY TIMES, December 3, 2012
•Future (Continued from page 1)
“We have been able to do it, and most people think we will continue to be able to do so until the year 2050,” he said. “Now it will be a paradigm shift from what we have had in the last 50 years. We have already done the easy things . . . such as increased production. The next things we do will be the hard and difficult things.”
Importance “Why is this important? Why do we care?” he asked. “Because we are part of the system and most areas of the world are not going to be producing more food — they just can’t.” He noted the basics of food production, which relies on plant production. “We grow plants, we then feed them to chickens . . . you’ve got to be able to produce plants first, and a lot of places in the world simply are not going to be able to do that,” Angle added. Around the globe Angle provided his thoughts on nations and continents around the globe, along with their strengths and weaknesses in producing additional food for the growing population. China First, China already has a large population and will probably not be exporting a lot of food, he said. And secondly, its countryside is a large desert with very poor water and soils, and poor resources in terms of such things are fertilizers and other things needed to produce more food. “So they are not going to be producing more food in ways to help feed the future,” he said. India “The same things apply to India . . . also (India) is too hot, too dry and very poor soils,” Angle said. South America “South America has been that
part of the world that has stepped up in the last 50 years to product a lot more food,” he said. “But they have done this, primarily, by taking grasslands out of production, the savannah of Brazil and the rain forests — not generally seen as a good thing by many of the environmental groups in particular.” “Because cutting down the rain forests actually does contribute to global warming,” Angle noted. “That may be one of the most significant sources of global warming on the planet.” He added that what will likely be a scenario in South America is taking the soybean and corn lands out of production and transitioning them back into the rain forests, to take more of the atmospheric carbon and place it back into plants and the soil. “So we are not going to see a whole lot more production coming out of South America, but they will be incorporating a lot of new technology into their agriculture, so they will be a player, just not as large of a player,” Angle said. Europe Europe is an “interesting case,” he said. Europe could potentially produce a lot more food because it has good soils and good water in many parts of the continent. “They have a strong agricultural ethic, but they have chosen not to produce more food,” Angle noted. “They have decided they want to go into the sustainable and organic areas. They have signed off on the global revolution, at least for the time being. “Organic food production is a nice market; you can make money in this market, but yields are often lower and we simply can’t produce more food, globally, organically to feed a growing population. So you can take Europe off the market.” Africa “Africa has some good soils and water, but unfortunately the civil governance of many countries in Africa are not yet ready for wide scale agriculture,” he said.
Angle also noted that the UGA Poultry Science Department has worked with Mali in helping to assist people to grow more chicken, but the rise in revolutionaries coming into the nation led to the team having to leave. “What was a good opportunity to grow more food has been wiped out by a lack of good governance,” he said. But there are bright spots for Africa, noting its good soils, water and resources, but many nations “lack the good governance that would make it easy for agriculture. You need civil society, lack of corruption and you need infrastructure, obviously, for agriculture to be successful,” he added. North America Angle noted that a large increase in food production will come down to North America (U.S., Mexico and Canada). In regard to Canada, it has good soils and good water, but it will not be able to produce much more food, because of its colder temperatures and its shorter lengths of daylight and sunlight, he said. Mexico faces the same problems being faced by the western U.S.; there is not enough water, he noted, adding that, “While California has been, and still is, the breadbasket of the U.S., their production is decreasing. Lack of water is true for most of the western states, so they are not going to be ramping up production.” For the states East of the Mississippi River, the northern states would face the same problems as Canada with lower amounts of sunlight, he said. The New England and northern and central plains states, “are good agriculture states and they produce plenty of food but you can’t push the system much harder,” he added. For the southeastern states, Florida is excluded from the equation, to some extent. “They’ve got a lot of environmental problems and land values are so high,” Angle said. “It’s really hard to justify agriculture when you are looking at many tens
Photo by David B. Strickland
of thousands of dollars per acre for land. Florida is still very important, but has some future problems.” The southeastern states, “these are the states that are really going to have to step up and become the new breadbasket not just for the U.S., but for the world,” he said. “It’s an opportunity and I feel good about the future of agriculture. Agriculture is a growing industry and expected to continue to grow.” In making strides to produce more food, Angle added that, “In some ways it is a moral obligation. When you can produce food and you can stop people from being hungry around the world; you need to do that. You are the ones that are going to have to make this happen. The rest of the world depends on what happens in this region.”
Feed prices In regard to problems, especially for the poultry industry, “the main one you face every day is feed prices,” he said. “It looks like prices are going to remain high for a long time. The future is dependent on what happens with these prices . . . and this is something that is going to have to be built into the system. Ultimately these corn prices are something that is going to have to be passed on to the consumer. “The problem is that it is difficult to make that happen when you live in a competitive market and a competitive world. Eventually, and we
are starting to see this already, that the prices of poultry will increase enough to offset the cost of the inputs that you are seeing on a daily basis. Things will normalize at some point in time. You are in the middle of this normalization process.”
Future “I feel very confident and optimistic about the future,” Angle said. “Poultry is still the best way to produce protein for our society and a hungry world. “We are very fortunate today in a lot of ways, even though the future is uncertain. People often talk of making the future what you want it to be; this is absolutely true right now.” He noted that if agriculture is going to have a bright future it will take a joint effort on the parts of the poultry industry, poultry association groups, government and educational institutions all working together to create a successful business environment. “You have your day job, which is to produce more chicken at a low cost and high quality,” Angle added. “You have your weekend and nighttime job, which is to encourage your elected officials and anyone in the state who will listen to support agriculture. “I hope you will work every day to make sure that happens. Things are good right now in many ways, and if we will work together we can have a bright future.”
from hatch
to harvest
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1 Merial Study 99-0763-R, data on file 2 Merial Study VAX-10-0120-FS, data on file Š 2012 Merial Limited. Duluth, Georgia. All rights reserved.
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