NCC’s Roenigk delivers testimony to House subcommittee

National Chicken Council (NCC) Senior Vice President and Economist Bill Roenigk testified April 30 before the House Agriculture Subcommittee on Livestock, Rural Development and Credit about the current state of the chicken industry. Roenigk's testimony focused on a number of vital issues and difficult challenges currently confronting U.S. chicken producers.
Roenigk remarked that the state of the chicken industry, at least for those surviving firms, is good in terms of net margins but the industry continues to be frustrated by the results of an inflexible renewable fuels policy and program. He explained that chicken producers have been unable to step up production this year to long term annual averages because of lasting and rippling effects of a failed federal ethanol policy that has been in place since 2006.
"The often-dismissed fact, especially today as grain prices moderate, is that the Renewable Fuel Standard (RFS) has inflicted deep and sustained damage to chicken production," said Roenigk in his opening remarks. "In the end, consumers are once again paying the price for a biofuels policy and program that are broken beyond repair."
Roenigk says that since the RFS was enacted, chicken companies have incurred over $44 billion in higher actual feed costs due to the RFS.
"EPA's proposal for the 2014 RFS reflects again clear evidence that our nation's biofuels policy is broken, and broken well beyond repair," he added. "The issues of the blend wall, food versus fuel, mandates for non-existing cellulosic ethanol and other issues will not go away until Congress deals with the reality of the unworkable, unsustainable, imbalanced and misnomered RFS."
Roenigk also called the Trans-Atlantic Trade and Investment Partnership and the Trans-Pacific Partnership significant "job creators," and said their implementation would increase poultry exports, resulting in more jobs and more family farmers growing poultry.
In addition, Roenigk called on Congress to promptly pass Trade Promotion Authority legislation so that the position of the U.S. international trade negotiators is strengthened as they continue to move forward to successfully conclude these two critically important agreements.
Other topics included in Roenigk's testimony included: USDA's Grain Inspection Packers and Stockyards Administration's rule addressing competition and contracting the poultry and livestock industries; the need for comprehensive immigration reform and a strengthened E-verify system; international trade actions at the World Trade Organization; the need for a much better rail transportation system; and the need for greater oversight and foresight regarding the supply of propane.
The hearing began at 10 a.m. April 30 in the Longworth Office Building. Also scheduled to testify were:  Dr. Joseph Glauber, chief economist, U.S. Department of Agriculture; Roger Johnson, president, National Farmers Union; Shane Miller, senior vice president, Pork Margin Management, Tyson Fresh Meats, Dakota Dunes, S.D.; Dr. Steve Meyer, president, Paragon Economics, Adel, Iowa - on behalf of the National Pork Producers Council; Michael T. Smith, special projects manager, Harris Ranch, Selma, Calif. - on behalf of the National Cattlemen's Beef Association; Clint Krebs, president, American Sheep Industry Association, Ione, Ore.; and Matthew T. Cook, president and CEO, Norbest - on behalf of the National Turkey Federation.

Poultry groups comment on proposed NLRB ‘quickie election’ rules

The U. S. Poultry & Egg Association, National Chicken Council and National Turkey Federation submitted comments opposing the National Labor Relations Board's (NLRB) proposed rules governing representation procedures. The proposed rules, dubbed "quickie election rules" for their anticipated impact on the election process timeframe, were published in the Federal Register on February 6.
The comments were prepared by the Joint Poultry Industry Human Resources Council, which is made up of members from the U.S. Poultry & Egg Association, National Chicken Council and National Turkey Federation. Collectively, the three organizations represent 95 percent of the nation's poultry products, and their members generate more than 1.3 million total U.S. jobs.
Although the current procedures result in elections held within an average of 38 days, the proposed rules favor "rushed" elections and make other unreasonable changes in the unionization process. The poultry industry comments identify 23 issues with the proposed rule, many of which carry the unmistakable appearance of a denial of due process and certainly will serve to increase litigation and delay timely elections rather than speed the election process. 
"Limiting the time period to seven days between the notice of hearing and the hearing presents an almost impossible sequence of events to satisfy timely,' commented the Joint Poultry Industry Human Resources Council. "There are no provisions in the National Labor Relations Act or the regulations that require "rushed" elections, although there are many provisions requiring "fair" elections. The proposed changes do not meet that goal."

Iowa legislation calls for repeal of California’s Proposition 2

The Iowa House of Representatives on April 3 passed a resolution calling for repeal of California's Proposition 2 law that forbids the sale of eggs produced by hens kept in cages that don't meet certain size and space requirements. Iowa lawmakers are challenging the California egg law because it means most Iowa eggs cannot be sold in California, and that the legislation is unconstitutional.
The Iowa bill calling for the repeal of Proposition 2 seeks that "immediate action be taken by the State of California, the United States Congress, the United States Attorney General, state legislatures, state governors, and state attorneys general to effectuate the repeal of California legislation enacted as AB 1437 that unconstitutionally infringes upon the Commerce Clause of the Constitution of the United States to the detriment of this nation's consumers and farmers."
The Iowa legislation, known as House Resolution 123, also points out that California's law is bad for its own state. The bill states: "In 2008, California voters approved Proposition 2, a ballot initiative that prohibits California farmers from employing a number of agricultural production methods in widespread use throughout the United States, including the use of industry standards used in egg production."
Copies of Iowa House Resolution 123 are being sent to California legislative leaders, Vice President Joe Biden, House Speaker John Boehner, Senate Agriculture Committee Chair Debbie Stabenow, House Agriculture Committee Chair Frank Lucas, U.S. Secretary of Agriculture Tom Vilsack, U.S. Attorney General Eric Holder, Iowa Gov. Terry Branstad, Iowa Attorney General Tom Miller, and all members of Iowa's congressional delegation.
Additionally, copies of the bill were sent to the attorneys general from Missouri, Nebraska, Alabama, Kentucky and Oklahoma. Iowa had previously joined those states in a federal lawsuit, urging the court to declare the California egg rules invalid. 

Poultry groups want proposed injury, illness tracking regulation withdrawn

The National Chicken Council, National Turkey Federation and the U.S. Poultry & Egg Association (USPOULTRY) have sent a letter to the Department of Labor regarding the OSHA proposed regulation, "Improve Tracking of Workplace Injuries and Illnesses,"   respectfully suggesting that the rule is misguided and that it should be withdrawn.
"We believe the existing record keeping system is sufficient to allow employers to identify and address risks in their work environments," the groups wrote.  "In addition, we are very concerned that the proposed rule improperly and in a negative way changes the traditional no fault record keeping system.  This change will force employers to commit energy and resources toward lagging indicators, as opposed to more effective leading indicators."
The groups also said the proposed rule will have the effect of limiting the amount of useful information currently included in record keeping forms, out of concern that the information will be made public.
"We also question why OSHA did not make Federal agency injury and illness information public in a similar rulemaking completed just a few months ago," the letter continued. "Finally, our members have significant privacy concerns with making the information public and also believe that OSHA has significantly understated the costs of the rule."

Yum! Brands expects Chinese investigation to hurt profits

Yum! Brands Inc. said it expects KFC's sales in China to suffer because of a recent government investigation of its poultry.
The company announced in late December that the Chinese government was conducting a review of two poultry suppliers who provided chicken with unapproved levels of antibiotics to KFC. While the supplies represent a small percentage of the company's product, the publicity did slow sales.
Yum! Brands said that due to the bad publicity associated with the review, it expects a key sales measure for KFC in China will come in lower than expected. It expects revenue from its stores in China open at least a year will be down 6 percent for the fourth quarter of its 2012 fiscal year, as opposed to its prior forecast of a 4 percent decline.
Yum! expects to earn $3.24 for the full fiscal year on an adjusted basis. The company declined to comment further until it releases its full quarterly results on February 4.

US poultry groups appeal National Fire Protection Association amendment

The U.S. Poultry & Egg Association, National Chicken Council, National Turkey Federation and United Egg Producers have joined a coalition of animal agriculture industry groups in appealing the June 14 decision of the National Fire Protection Association to amend its 150 Standard for Fire and Life Safety in Animal Housing Facilities.
The existing standard requires automatic fire sprinkler and smoke control systems for housing facilities containing Category A animals — those animals that pose a potential risk to the health or safety of rescuers or the general public, such as dangerous zoo animals. The amendment would require the installation of sprinkler and smoke control systems in animal housing facilities for Category B animals — defined as all animals not included in Category A — which would expand the standard to include poultry barns.
Coalition members say they believe the amendment fails to meet applicable due process standards and does not consider the biosecurity or the financial impact of the decision. The expansion, they say, covers far more animal housing facilities than had been previously covered, expanding the 150 Standard to cover nearly every single livestock farm in the U.S.
While National Fire Protection Association standards typically do not have the full effect of law, they are often adopted in local and state building codes and by insurance companies and may become requirements to receive occupancy permits or purchase insurance.

Raw poultry products gain nutrition labels under USDA rule

Under a new U.S. Department of Agriculture Food Safety and Inspection Service rule, packages of ground or chopped poultry and meat, such as ground turkey or hamburger, will now feature nutrition facts panels on their labels. Additionally, 40 of the most popular whole, raw cuts of poultry and meat, such as chicken breast or steak, will also have nutritional information either on the package labels or on display to consumers at the store. The rule went into effect on March 1. The nutrition facts panels will list the number of calories and the grams of total fat and saturated fat that a product contains. Additionally, a ground or chopped product that includes on its label a lean percentage statement, such as "85% lean," and is not considered "low in fat" also will list its fat percentage, making it easier for consumers to understand the amounts of lean and fat content in a particular product. The Federal Register notice announcing this rule was published on Dec. 29, 2010.

USDA proposing poultry slaughter inspection oversight revisions

The U.S. Department of Agriculture is proposing a poultry slaughter inspection rule that would increase oversight of poultry processors’ sanitary practices and contamination controls instead of checking each chicken and turkey for visual defects, saving the industry $250 million a year, according to Agriculture Secretary Tom Vilsack.
The revisions to the current system could prevent 5,200 foodborne illnesses a year by modernizing and making methods more efficient, taking the emphasis off visual imperfections that can harm poultry sales rather than improve safety, said Vilsack. The U.S. could save as much as $40 million a year within two or three years, partly through the elimination of inspection jobs. The USDA would continue to inspect poultry carcasses at the end of production lines before they're chilled, and would be on-site at all times. Slaughter operators would have the option of requesting the U.S. continue the visual inspections, according to the proposed regulation. Poultry slaughter operations would have to develop written procedures to prevent contamination and a program to control sanitation, as well as sampling and analysis. Such guidelines are currently voluntary. The public will have 90 days to comment on the proposal.

Lighting manufacturer filing complaint against poultry program

LED lighting manufacturer Once Innovations Inc. is filing an abuse complaint in connection with a poultry lighting rebate program, claiming that the Arkansas Economic Development Commission Energy Office is managing the program using recovery funds in an "arbitrary and capricious manner" and steering rebate-eligible lamps toward specific, pre-selected manufacturers and lamp designs.
ONCE has expressed concern over what the company says are inappropriate and incomplete specifications for lamps qualifying for these rebates. “In addition to not requiring minimum power quality standards, the AEDC specifications were technically incompetent," said Michael J. Ostaffe, ONCE executive vice president. "They refused to add safety standards, even though urged to do so several times, an omission that could lead to the potential risk of fire, shock or other electrical hazards detrimental to birds, farmers and property. The specifications don’t require, or even reference, basic ANSI, NEMA or UL standards, as is the norm for commercial lighting projects. Not only that, this is an energy saving program, yet lights that are significantly less energy efficient than CFLs or incandescent bulbs could actually qualify for a 50% rebate based on the minimum requirements published by the AEDC.”
In January, ONCE expressed concerns over the program on procedural grounds.

India to regulate poultry antibiotics use

India's National Center for Disease Control's National Policy for Containment of Antimicrobial Resistance has put a cap on how much antibiotics can be put into poultry products, the first time such regulation has been provided, according to officials.
The new policy has named common antibiotics like tetracycline, oxytetracycline, trimethoprim and oxolinic acid, and clearly mentioned that their use "shall not exceed the prescribed tolerance limit." In addition, the use of over 20 antibiotics or pharmacologically active substances has been prohibited in poultry products. "Antibiotics are used by farmers to prevent infection in poultry," said Professor Randeep Guleria from the All-India Institute of Medical Sciences. "However, until now there was no limitation. We don't want such meat to enter the food chain and lead to the emergence of antibiotic resistance in humans who eat it. That's why we have fixed limits."

New US restrictions for Mexican poultry, egg imports

Processed poultry meat and hard-boiled eggs brought into the U.S. from Mexico must now be accompanied by specific government certification documentation or an import permit from the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service, according to import requirements set by U.S. Customs and Border Protection.
The measures were announced after USDA APHIS released new requirements for poultry products coming from countries where Exotic Newcastle Disease is said to exist. Certifications must confirm meat has been cooked to a minimum internal temperature of 165 degrees Fahrenheit. Otherwise, poultry must have the APHIS veterinary services import permit. Thoroughly cooked, hard-boiled eggs from Mexican states other than Sinaloa and Sonora must also be accompanied by a permit.
Poultry products without a USDA APHIS permit will be seized or refused entry, according to CBP.

Nebraska lawmakers introduce bill for state-run poultry inspection program

Nebraska lawmaker Senator Tyson Larson has spearheaded a bill that would move Nebraska toward a state-run poultry and meat inspection program, once state officials assess its cost and how well it would survive.
According to Larson, Nebraska meat producers have found it difficult in recent years to get their meats inspected and federally approved for sale. Twenty-seven states already run their own inspections, said Larson, and of the six states that border Nebraska, the only one with no program is Colorado. "Nebraska's lack of a state meat inspection agency puts our rural agricultural producers at an extreme disadvantage compared to their counterparts in neighboring states," he said.
While current law allows producers to ship their products out of state with federal approval, the number of federal inspectors available in some parts of the state have dwindled as small packing plants have closed.
An early version of the bill would have created an agency within the Department of Agriculture by Jan. 1, 2013, to inspect meat products for human consumption. The program would require an initial $200,000 from a state commercial feed administration fund and would subsist on inspection fees. Larson introduced a rewritten version to authorize a study that would outline how the program would unfold, what meats would qualify, proposed fees and a layout of the resources needed to keep it running. Lawmakers voted 35-1 to advance the measure through the first of three readings before it goes to Governor Dave Heineman.

Northwest poultry council forms alliance

Citing growing political and regulatory pressure, the Northwest Poultry Council has joined the Northwest Food Processors Association (NWFPA). According to a report in Ag Weekly, the alliance formed in June is aimed at giving the trade groups increased legislative influence and increased visibility of the region’s agriculture and food processing.
The food processors group will provide administrative support to the poultry council, plus advocacy and other benefits to its members joining NWFPA. The poultry group also elected Greg Satrum, co-owner of Canby-based Willamette Egg Farms, as council president, elected a new Board of Directors, and revised its bylaws to expand operations to Idaho, in addition to Oregon and Washington.

Regulatory issues at forefront for poultry

Regulatory issues are the top concern of poultry decision makers from around the world, according to a poll conducted by the WATT-Rennier Poultry Confidence Index (PCI).
Many respondents pointed to the increased cost of doing business associated with aggressive government regulation. Potential profits were evaporating as non-science-based legislation drove up costs associated with disease control and monitoring.
As one respondent said, “Regulators are coming after us, and it’s going to cost us all.”
Regulatory Issues was the most-selected industry concern, earning the top ranking in three of the four regions – USA/Canada, Europe and Asia. Meat/Poultry Supply and Demand was next on the list for USA/Canada and Europe.
In Asia, Environmental Issues were as important as Regulatory Issues (tied for top spot). Concerns were different in South and Central America as the top-two issues were General Economy and the Export Market.
Input Costs (excluding grain) was the third most important issue in three of the four regions.
Finally, three issues never made the top-three list for any region – Bird Health/Disease, Credit Availability and Grain Prices.
In their rankings of issues from a pre-defined list, respondents indicated that their concerns were more similar than different across geographic regions, said Dr. Greg Rennier.

Top three poultry issues by geographic region
Issues USA /Canada Europe Asia South & Central America

Regulatory issues 1st 1st 1st

Meat/poultry supply, demand 2nd 2nd


Input costs (excluding grain) 3rd 3rd 3rd

Jobs 3rd


General economy 1st 1st

Environmental issues 1st

Export market 3rd


Bird health/disease

Credit availability

Grain prices

Maryland may withhold money from law school over chicken concerns

As part of the state budget that passed the Maryland Senate, the University of Maryland’s environmental law clinic would be required to submit a report on every lawsuit it has filed in the past two years before the law school receives its $250,000 earmark, according to the Maryland Reporter. The budget must now be considered by the state’s House of Delegates.
The impetus for the requirement is the law clinic’s involvement in environmental lawsuits against chicken producers. Senators representing areas of the state where the poultry industry is concentrated said that the law clinic is singling out poultry producers. The law clinic is composed mostly of students who provide pro bono legal services.

Environmental seminar will look at new regulations

The 2010 Environmental Management Seminar will focus on what some are calling a new era of enforcement. Sponsored by U.S. Poultry & Egg Association's Poultry & Egg Institute, this year's conference will be held March 17-18 at the Marriott Hotel in New Orleans. The program will examine an anticipated higher level of regulation by the U.S. Environmental Protection Agency, along with the current developments in technology and management techniques for environmental sustainability.
Topics will include a federal policy and regulatory update; a case study of wastewater optimization and associated cost savings, the poultry industry’s impact in the Chesapeake Bay area, and plants that have won clean water awards.

USDA poultry meeting set for Jan. 27

The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service has scheduled a meeting of the National Poultry Improvement Plan General Conference Committee for Jan. 27, 2010, from 1:30 p.m. to 5 p.m. at the Georgia World Congress Center, 285 Andrew Young International Blvd. NW, Atlanta, Ga.
The General Conference Committee acts as a liaison between the poultry industry and USDA in issues affecting poultry health. It includes representatives of state agencies and the poultry industry.
Meeting topics are:
*National Poultry Improvement Plan diamond anniversary conference
*Salmonella isolation and identification laboratory protocol
*Notifiable avian influenza
*Salmonella and baby poultry contact
*Experimental use of a live Mycoplasma synoviae vaccine in broiler breeders
*National Poultry Improvement Plan database
The public may attend the meeting, but not participate in discussions. Written statements on meeting topics may be filed with the committee at the meeting. They may also be sent before or after the meeting to Andrew R. Rhorer, senior coordinator, NPIP, VS, APHIS, USDA, 1498 Klondike Road, Suite 101, Conyers, GA 30094. Writers should refer to Docket No. APHIS-2009-0096.

FSIS wants feedback on proposed labeling rule

The Food Safety and Inspection Service is seeking feedback on its recently proposed rule to require nutrition labels on packages of single-ingredient, raw ground or chopped products, rather than at their point-of-purchase.
The FSIS invites interested persons to submit comments on this proposed rule.
Comments may be submitted via www.regulations.gov or may be submitted via snail mail to Docket Clerk, U.S. Department of Agriculture, Food Safety and Inspection Service, 5601 Sunnyside Ave., Room 2-2127, Beltsville, MD 20705.

Justice Department, USDA to explore poultry competition

Competition and regulatory issues in agriculture will be examined in a series of Department of Justice (DOJ) and USDA workshops beginning in March 2010.
Poultry production contracts, industry concentration and buyer power will be the focus of a workshop at Alabama A&M University, May 21, Normal, Ala.
Crop, dairy, hog and beef farming issues will be addressed in other workshops scheduled March through December 2010.
Each workshop may feature keynote speakers, expert panels and break-out panels that will address more narrowly focused issues. At each workshop, the public will have an opportunity to ask questions and provide comments.
Written comments in advance of the workshops can be submitted in both paper and electronic form to the Department of Justice, no later than Dec. 31, 2009. Two paper copies should be addressed to the Legal Policy Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, NW, Suite 11700, Washington, D.C. 20001.
The May 21 workshop on poultry production issues will be held in the auditorium of Alabama A&M’s James I. Dawson Cooperative Extension Building at 4900 Meridian Street.

Baiada not fined over waste discharge

According to reports, Australia’s Baiada Poultry will not be fined over $500,000 for release of its rendering plant effluent onto a local road.
The local governing body ruled the discharged waste did contain enough ammonia and nitrogen for punitive action.