FALL/WINTER, 2000IN THIS ISSUE:

Marek’s DiseaseResearch at Hy-LineInternational – pg. 2

Hy-Line do BrasilLaunches SalesEffort – pg. 3

Entrepreneur Builds China’s Largest Egg Operation – pg. 4Hy-Line Presence Strong in Huge Chinese Market – pg. 5Hy-Line ReorganizedInternational Department– pg. 6Hy-Line DistributorParticipates in Argentine Show– pg. 6Hy-Line do Brasil Inaugurates New Facilities – pg. 7Peruvian Distributor HostsTechnical School – pg. 7Hy-Line U.K. has GrandOpening – pg. 8Hy-Line Hosts First LatinAmerican School – pg. 9Chinese Visitors Tour Hy-Line– pg. 9International Egg CommissionWorld Conference – pg. 10Hy-Line Distributors Meet inParis – pg. 10Hy-Line Holds Middle EasternTechnical School – pg. 11Hy-Line Scientists Attend theWorld Poultry Congress – pg. 11Hungarian Group Visits Hy-Line – pg. 12

Hy-Line Marks Another RecordYear Worldwide

Continued on page 2

For the 11th time in the past 15 years, Hy-Line’s international sales effort reachedrecord levels with the fiscal year justcompleted being the best year in thecompany’s 64 year history internationally,according to numbersjust released.

The 1999-2000sales year sawtotal revenuegenerated frominternational saleshit an all time high, farsurpassing last year’smark. The internationaleffort for 1999-2000 also sawthe highest net contributionever recorded, bettering lastyear’s numbers by over 27%.The year just finished also recorded the mostparent stock ever sold outside the UnitedStates with 100,000 more parent femalesplaced than ever before. Grandparent place-ments outside North America also set an alltime record. Income from international saleshas increased by three and one-half timessince 1985.

Besides the outstanding financial resultsgenerated in international sales, several new

distributors were named during the yearbringing the total number of new customersand distributors to more than 70, promisingeven better results for the future.

Areas that did especially well during thelast fiscal year

included China,which has thelargest percentage

increase in revenuefrom the previousfiscal year of any

region. Other interna-tional regions thatturned in excellentyears were Mexico,with a 43% increase

in net contributionover last year, Latin America, with a 42%increase, Europe, with 31% and the Far Eastwith a 20% jump in net contribution.

With joint venture companies now inplace in five countries outside the UnitedStates and Canada, wholly owned Hy-Linesubsidiaries operating in two others anddirect sales booming, Hy-Line is in an excel-lent position to confront the future challengesof the growing and ever more sophisti-cated international market.

Mexico 43%

Latin America 42%

Europe 31%

Far East 20%

Country/Region % Increase in Revenue from Previous Year

2

The tumor virus diseases, Marek’sdisease and avian leukosis, have historicallybeen some of the most detrimental infec-tious diseases of chickens. The distinctionbetween the two was not clearly establisheduntil the 1960’s when it was determined thatMarek’s disease was a herpesvirus that wasonly transmitted horizontally and leukosiswas a retrovirus that was primarily trans-mitted vertically (from infected parent tothe progeny through the hatching egg).Extensive research effort has been directedtoward these two diseases in the last 100years. Controlmethods,although muchdifferent for eachdisease, havebeen effective inreducing mortal-ity and otherdetrimentaleffects.

Hy-Linestarted testingfor leukosis inbreeding stock inthe mid 1970’sand worked toreduce the infec-tion incidenceover time. In the late 1980’s, total eradica-tion was achieved in all brown and whitebreeding lines. This effort resulted inimproved livability and production inparent and commercial flocks of all vari-eties. Freedom from the leukosis virus nowbenefits all Hy-Line customers worldwide.

Marek’s disease cannot be eradicateddue to its horizontal method of spread andwidespread occurrence in the industry.Control must rely on reducing early expo-sure to the virus, proper hatchery vaccina-tion, and genetic resistance of the layervariety. Hy-Line veterinarians and geneti-cists believe that Marek’s disease represents

a serious potential threat to the industry inthe future. The virus has demonstrated anability to mutate and develop resistance tovaccinal immunity. The vaccines that workwell today may not be adequate in another10 years. Therefore, we believe thatresearch must continue in an effort todevelop more naturally resistant geneticlines of layers and more effective vaccina-tion programs.

Research by USDA and university labo-ratories has been very rewarding in devel-oping new vaccines and understanding the

pathogenesis ofMarek’s disease.However, Hy-Lineresearchers sawthe need to dofurther researchspecific to theHy-Line layervarieties. A10,000 squarefoot floorgrowing housewas constructedin 1994 in anisolated locationfor the purposeof conducting

large-scale Marek’s disease challengetesting. The genetic research department atHy-Line International annually places over20,000 pedigreed chicks in this facility andchallenges them with one of the most viru-lent Marek’s disease viruses known in theU.S. Mortality is evaluated by Hy-Lineveterinarians and Marek’s disease incidenceis determined for each genetic family. Theseresults are used by the research department,along with other measured productiontraits, to make future breeding decisions.The desire is for all economically importantgenetic traits, including Marek’s diseaseresistance, to steadily improve over time.

Marek’s Disease Research atHy-Line International

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Marek's Disease Vaccine Efficacy

Continued on page 3

Research byUSDA and universitylaboratories has beenvery rewarding indeveloping newvaccines andunderstanding thepathogenesis ofMarek’s disease.

The Hy-Line technical service depart-ment also uses this facility to conductvaccine efficacy studies. In the U.S., thereare six Marek’s disease vaccine strains thatare marketed in various combinations fromfour major manufacturers. This presents awide variety of vaccine choices for the hatch-ery and customer. There has been evidencethat some vaccine strains work better incertain genetic types of birds. For thesereasons, Hy-Line has been examining rela-tive efficacy of the various vaccine strains,combinations and manufacturers in its layervarieties against different challenge viruses.Because of the complex bird/vaccine/chal-lenge virus interaction, it is difficult to makeconclusions that apply to all situations, butsome generalizations can be made.

Against the challenge viruses used inthese tests, HVT and the bivalent HVT/SB-1have been relatively weak in protection.This should be expected, as these challengeviruses evolved into major problems in thepresence of HVT/SB-1 immunity. The non-cloned Rispens vaccine strain, which hasbeen in the U.S. since 1994, demonstratesmuch better protection, whether in monova-lent, bivalent (HVT/Rispens), or trivalent(HVT/SB-1/Rispens) form. In general,protection is maximized when all threevaccine serotypes are in a trivalent combina-tion. (See graph.)

In some coun-tries, a second vacci-nation for Marek’sdisease is sometimesadministered at 7-10days of age. In Hy-Line’s tests, day oldand either 4 day or 6week revaccinationwith HVT/SB-1 didnot show any advan-tage. However,chicks given Rispensat hatch and Rispensagain at seven days of age did have a signifi-cant reduction in Marek’s incidencecompared to Rispens administered only onceat hatch. It appears this practice deservesfurther study.

Most of the U.S. broiler industry now

uses in-ovo (in the egg) Marek’s diseasevaccination. The original concept was toimprove protection by administering thevaccine virus to the embryo at transfer timein the hatchery, which gives the virus anextra three days to start working comparedto day-old administration. The economics ofin-ovo vaccination are not as favorable inlayer hatcheries since only the females areused and half the vaccination effort andexpense is therefore wasted on males. Inspite of this difference, the efficiency andprecision of in-ovo vaccination may justifyits use in layer hatcheries. Hy-Line compar-isons of in-ovo versus day-old Marek’sdisease vaccine administration show at leastas good or better protection with the in-ovotechnique. Further work in this area isongoing to determine the optimum vaccine,dose, and day of administration to maximizeprotection. Hy-Line is now utilizing in-ovoMarek’s disease vaccination in two commer-cial hatcheries.

Marek’s disease has proven its ability toquickly become a major problem in pulletsand layers in the U.S. and many other coun-tries of the world. We should never becomecomplacent about its control. Everyoneneeds to share part of the responsibility. Theproducers should control exposure ingrowing houses, the hatcheries must prop-erly administer vaccines, the vaccine compa-

nies should develop new products for thefuture, and the breeder companies shouldimprove the natural resistance of their vari-eties. Marek’s disease may never be elimi-nated, but if we all do our part, Marek’sdisease can be adequately controlled.

3

4

Private enterprise is alive and well inthe People’s Republic of China, and that factis nowhere more evident than in the rapidgrowth of the privately owned DalianHanwei Enterprises Group located in thecoastal area of northeast China.

The Dalian group was founded byvisionary Han Wei, the group’s Chairman,when he placed a flock of 300 commerciallayers on his farm in the late 1980’s. Sincethen, what began as a timid attempt at freeenterprise, has grown to be the largest eggproduction company in China with1,600,000 layers on three integrated layerfarms near the port city of Dalian. Today,Dalian Hanwei Enterprises produces morethan 30,000 tons of eggs annually.

Almost half of the Hanwei group’s eggproduction stays in the local markets ofDalian and Fushun. The other 50% is sentto southern China or exported to Japan andHong Kong.

The totally integrated company hasseveral businesses under its wide umbrella,including a marine farming enterprise, anestate management company, three layerfarms, three feed mills, two pullet rearingfarms, two manure processing plants, aparent stock farm, an egg processing plantand 200 retail sales outlets. The group alsohas its own diagnostic and feed qualitylaboratories. Hanwei has used Hy-Line W-36 parent stock on its 40,000 bird breederfarm for more than 10 years.

The organization has been named an“Excellent Private Enterprise of China” andits founder, Han Wei, is a member of theChinese Political Consultive Conference.Han Wei has plans for further expansion offacilities with layer numbers set to reachfour million birds. A new modern two

million bird complex is set to be constructedsoon.

Mr. Han Wei’s breaking and furtherprocessing plant produces powdered andsalted eggs as well as selenium and zincenriched eggs for special markets. Manurefrom the layer complexes is converted intofertilizer for use in truck farming in twocompany owned facilities.

Northeast China is the corn and soybeanproducing area of the country and intensivelivestock farming of all kinds flourishesthere. Dalian, being a major port city on theYellow Sea, is strategically located forexporting to Japan and other Asian coun-tries.

The Dalian Hanwei group has madesubstantial investments in controlled envi-ronment housing in recent years. This typeof construction is necessary against northChina’s hot summers and frigid winters.

Almost half ofthe Hanwei group’s eggproduction stays in thelocal markets of Dalianand Fushun. The other50% is sent to southernChina or exported toJapan and Hong Kong.

Mr. Han Wei, Chairman of the Company.

Entrepreneur Builds China’s Largest Egg Operation

Nobody knows exactly howmany laying hens there are onorganized farms in the People’sRepublic of China, but knowl-edgeable estimates set thenumber to be somewherebetween one billion and1,400,000,000 birds. This, ofcourse, makes China thelargest egg industry on Earthwith bird numbers that arethree to four times those ofthe North American or WesternEuropean national flocks.

Hy-Line International has beenselling in China for more that 15 yearsand today maintains a dominantposition in that huge industry.Unofficial comments fromthe Chinese Ministry ofAgriculture place Hy-Line market concentra-tion at between 30% and40%. If this is accurate,then there are somewherebetween 400,000,000 and560,000,000 Hy-Line layers in China. Thismeans that there are more Hy-Line layers inthe PRC than in any other country in theworld.

The Chinesemarket is about 80%brown egg and theremaining 20% isdivided betweenwhite egg birds

and creameggers. The Hy-Line Brown,Brown Plus,

W-36, W-98 andthe Hy-Line Grayare sold in the

People’s Republicof China through a

network of a dozennational distributors.

Eggs in Chinaare sold by weightand are not refrig-erated. Most

eggs are sold tothe public in street

markets and one of thefavorite ways of preparing eggs

at home is to mix fried eggs with toma-toes or other vegetables. The preference inChina is for brown eggs because these eggs areperceived to be more nutritious. Average percapita egg consumption in the People’s Repub-lic of China is about 170 per year. China doesexport some of its production, especially toHong Kong, and is beginning to work with eggbreaking and further processing.

The average layer farm in China has from5,000 to 20,000 layers on the floor, but there area few larger operations and that number isgrowing. The largest commercial egg producerin China is a private company and has been anearly 100% Hy-Line customer since the farm’sinception about a decade ago. This layercomplex is located in the northeastern area ofthe country where corn and soybeans aregrown. The second largest egg producer inthe country is located in the sultry southernarea of the country around Guangzhou. This

5

Hy-LineInternational has beenselling in China formore that 15 years andtoday maintains adominant position inthat huge industry.

80% Brown Egg

20% White& Cream Egg

80% Brown Egg

20% White& Cream Egg

Approximately 80% of the Chinese market is brown egg, while theremaining 20% is a combination of white egg birds and cream eggers.

Hy-Line Presence Strong in Huge Chinese Market

Continued on page 6

Hector Motta, President of CabañaAvícola Feller SRL, the Hy-Line distributorfor Argentina, was one of the speakers atExpo Avícola 2000, the Argentine poultryand pork exhibition, held recently inPalermo Park in Buenos Aires.

Motta, who is the current President ofthe ArgentinePoultry Associa-tion and pastPresident of theLatin AmericanPoultry Associa-tion, calledattention to thefact that theSouth Americannation needsstable and posi-tive supportfrom its govern-ment in order totake advantageof the tradeopportunitieswhich exist inSouth Americatoday. Mottaspoke of the

commercial relationship with Mercosurpartner Brazil and contrasted the long termbenefits that exist in trading to the shortterm problems caused by the devaluation ofthe Brazilian currency.

Expo Avícola is held every two years.This year’s show took place in conjunction

with the 4thInternationalPoultry ScienceSeminar and the2nd Interna-tional Market-ing Seminar.

The Argen-tine populationconsumes 11kilograms ofeggs annuallyper capita and26 kilograms ofchicken meat. It

is estimatedthat nationalegg productionwill increaseby 10% in thenext five years.

6

Pablo Hubler,Thomas Dixon and German Schneider stand by the booth at theExpo Avícola 2000. Mr. Hubler & Schneider are Sales Representatives for CabañaAvícola Feller.

Hy-Line Distributor Participates inArgentine Show

farm has half a million layers, keeps W-36parent stock and is 100% Hy-Line.

To give an idea of just how large theChinese egg production industry is, it isstaggering to learn that in Hebei Provincealone, the area around Beijing, there arebetween 100,000,000 and 200,000,000commercial layers on organized farms.Other provinces rival Hebei for poultrynumbers.

The industry in China is moving in thesame direction that the rest of the worldindustry is going, with the smaller, less effi-cient farms dropping out and the bigger,more modern operations growing in size. Inthe past, the national government owned allthe layer farms in the country, but todaymany operations are being privatized andsold to former employees or other buyers.

Continued from page 5

7

Hy-Line International has totally reorga-nized its international department as ofNovember 1, 2000, according to Dr. DennisW. Casey, President of Hy-Line International.

Under the new structure, Thomas Lohr,Hy-Line’s Production Department Director,will take over responsibilities for sales inwestern Europe, Africa, the Middle East andIndia. Assisting him will be long timeemployees, Fernando Paula and MiguelPaula, and recent addition to the salesdepartment, Joao Paula. Lohr will also haveresponsibility for Hy-Line’s wholly ownedsubsidiary in England, Hy-Line U.K. Ltd.Andrew Hignett is the Managing Director ofthe British company and reports to Lohr.Lohr will also be responsible for anothercompany owned subsidiary, Hy-Line doBrasil. Rogerio Belzer is Managing Directorof the Brazilian company. Besides his inter-

national sales duties, Lohr will continue tomaintain the responsibilities of Hy-LineProduction Director in Dallas Center, Iowa.

Tom Dixon, who has been the LatinAmerican Marketing Director for the last fiveyears, will continue in those responsibilitiesand will report to company President,Dennis Casey.

Ken Severson, who has been with Hy-Line for more than 10 years, will continue tobe responsible for sales in Eastern Europeand China and will assume responsibility forsales in S.E. Asia, Australia and NewZealand. Severson will report directly tocompany President, Dennis Casey.

Dennis Dixon, the International Directorfor the past 15 years, retired from Hy-Line inNovember.

Hy-Line Reorganized ItsInternational Department

Hy-Line’s first European distribu-tors’ meeting, with 50 people from 12countries attending, was held in Paris,France last May. The participantsrepresented 13 Hy-Line distributorsfrom Europe and the Mediterraneanarea.

Those attending the Europeanmeeting heard talks by Dr. DonaldMcNamara, Director of the Egg Nutri-tion Center in the United States, Dr.Mauro Castello, of the Italian Ministryof Agriculture and Dr. JohnPortsmouth, a consulting nutritionistfrom England. Talks were also givenby Hy-Line’s technical and sales staffmembers. The attendees were alsoupdated on the latest marketing informationon the Hy-Line Brown and Brown Plus layers.

The meeting, which featured a dinnercruise on the Seine River for delegates and their wives, lasted two days.

Hy-Line European Distributors Meet in Paris

While the Hy-Line distributors participated in the seminar, theirspouses were treated to several outings throughout Paris. Hereis the ladies group enjoying one of the sights.

Dennis DixonHy-Line’s InternationalDirector, retired fromHy-Line in November‘00.

8

Hy-Line International inaugurated itsnew Millennium hatchery and its recentlycompleted center of operations with an openhouse, dinner and display of fireworks in theUnited Kingdom last June. There were over300 guests from all over the world in atten-dance.

The new production center is built on 12acres of land (5 hectares) that in the 15thcentury was part of the Monastic Grange ofthe Studley Priory, located in the town ofStudley, Warwickshire, near Birmingham,England.

The construction of the two bio-securedhatcheries, under one roof, one for parentstock and one for commercial chicks, beganback in September 1999, and was completedin May of this year. On July 5th, history wasmade when the first parent stock hatch tookplace. The first commercial chicks werehatched one month earlier. The complex has

the latest incubation technology and equip-ment and is capable of hatching almost17,000,000 commercial and parent stockchicks annually. “The building is the mostadvanced, biosecure hatchery of its type, andrepresents a major commitment to the U.K.by Hy-Line International,” stated AndrewHignett, Managing Director of Hy-Line U.K.

Commercial chicks produced in the newhatchery are sold mostly to the U.K. market,however parent stock is shipped to Hy-Linedistributors in Europe, Africa and the MiddleEast. The new Hy-Line U.K. facilities allow

Hy-Line genetics tobe delivered tocustomers in aprompt and profi-cient manner,making transporta-tion easier andproviding the samesuperior qualityand service thatHy-Line customershave grown accus-tomed to. Hy-LineU.K. has a newfleet of trucks withtotal climatecontrol, on boardfumigation andwheel wash capa-bilities foradvanced biosecu-rity protection.

The office complex, which beganconstruction in January 2000, is housed inrenovated buildings that were part of theGrange and accommodates the administra-tion offices, meeting facilities and an ultramodern egg quality laboratory.

On July 5th,history was made whenthe first parent stockhatch took place at theHy-Line U.K. HatcheryPlant.

Hy-Line U.K. has Grand Opening

Members of the Hy-Line International group at the inauguration. (L-R) Angela Spooner,Kerstin and Albert Cordts, Dennis Casey, Erich Wesjohann, Brenda Hignett,AndrewHignett,Ann Wesjohann, Kirsten and Dirk Wesjohann.

9

The first Latin American CommercialLayer Seminar was hosted jointly by Hy-Line International and Hy-Line de Mexico,S.A. de C.V. in Puerto Vallarta, Mexico lastJune. The meeting, which was attended bymore than 115 egg producers and otherindustry leaders from 12 countries in LatinAmerica, was held at the Westin ReginaResort Hotel.

Speakers at the meeting included DonBell, industry specialist from Southern Cali-fornia; Cesar de Anda, President of theMexican Vitep Group; Dennis Casey, Presi-dent of Hy-Line International and variousHy-Line technical experts both from theIowa headquarters and from the Mexican

joint venture company. Countries repre-sented at the meeting were: Mexico,Guatemala, El Salvador, Panama, Colombia,Bolivia, Ecuador, Chile, Peru, Venezuela,Portugal and the United States of America.

Hy-Line de Mexico S.A. de C.V. is a jointventure company with Hy-Line Interna-tional and the Vitep Group of Tepatitlan,Mexico as partners. The company has beenin existence for seven years and holds adominant position in the large Mexicanmarket. Hy-Line de Mexico is located in thecity of Tepatitlan near Guadalajara, Mexico.The company’s Managing Director isIgnacio Castillo.

Hy-Line deMexico S.A. de C.V. is ajoint venture companywith Hy-LineInternational and theVitep Group ofTepatitlan, Mexico aspartners.

First Latin American Commercial Layer Seminar in Puerto Vallarta, Mexico

Hy-Line Hosts First LatinAmerican School

The International Egg Commission(IEC) meeting, which took place inTucson, Arizona last September, wasattended by more than 250 industrypeople from over two dozen countries.The participants heard internationalexperts’ reports on such matters asanimal welfare, the World Trade Orga-nization, genetically modified organ-isms, new management regulations forthe European industry and the latestfindings on egg nutrition.

Cesar de Anda, the President of Hy-Line de Mexico S.A., was one of themain speakers at the annual meetingof the International Egg Commission.De Anda, who is also President of theMexican Poultry Union, informed theprestigious group at the “America’sSummit” meeting of the problems andbenefits facing the Mexican egg indus-try with the ‘soon coming’ full imple-mentation of the North American FreeTrade Agreement in January of 2003.De Anda told the group of theeconomic decisions that need to bemade by the industry in Mexico andthe United States before open borders inegg trading become a reality in NorthAmerica.

During the closing ceremonies ofthe event several prestigious awardswere given:

The IEC Crystal Egg Award wentto Britain’s “Red Lion” program.Andrew Parker, British Eggs Informa-tion Commission Chairman andChairman of Stonegate Farmers, along time Hy-Line customer, receivedthe award. This award is given to theprogram that has had a major influ-ence in the demand for eggs in aparticular country.

Dr. Don McNamara was honoredwith the Dennis Wellstead Award.McNamara is the head of the Egg NutritionCenter. The Wellstead Award is given to the

person that has individually contributed themost to the global egg market and represents

International Egg CommissionWorld Conference

10

TheInternational EggCommission meetingwas attended by morethan 250 industrypeople from over twodozen countries.

Dennis W. Casey congratulating Andrew Parker after receivingthe IEC Crystal Egg Award.

Representatives of the U.S.A. Egg Industry receiving the MarketPromotion Award.

(L-R) Dennis and Maria Casey with Dr. McNamara who washonored with the Dennis Wellstead Award.

Continued on page 11

11

Hy-Line Holds Middle EasternTechnical School in Egypt

Countriesattending the TechnicalService School wereEgypt, Morocco,Tunisia, Yemen, Jordan,Saudi Arabia, Lebanon,Pakistan, Iraq, andSyria.

Hy-Line International held the first Tech-nical Service School for customers in theMiddle East in February, 2000. The school,which took place in Cairo, Egypt, wasattended by more than 150 commercial poul-trymen and distributors from nine countries.MISR Poultry Company, MIPCO, the Hy-Linedistributor for Egypt, hosted the event.

Countries represented at the meetingwere Egypt, Morocco, Tunisia, Yemen, Jordan,Saudi Arabia, Lebanon, Pakistan, Iraq, andSyria. Speakers included: Dr. Hussein ElAlaily, Nutritionist and MIPCO’s GeneralManager; Dr. Ahmed Hatem El Hatar,

MIPCO’s Production Manager and membersof the Hy-Line Technical Service Team.

The Technical School, which lasted threedays, was one in a series of InternationalTechnical Schools held around the world byHy-Line. Other technical meetings werepresented in India, Europe and Mexico. Themeetings took the place of the Hy-Line Tech-nical Service School, which normally is heldin Iowa, U.S.A. In June, 2001 Hy-Line willonce again sponsor a week long TechnicalSchool in Iowa for internationalcustomers.

Participants of the First Technical Service School for customers in the Middle East.

best the integrity of the IEC organization.McNamara has done extensive work inhelping to dispell the cholesterol myth indifferent parts of the world. Dennis Well-stead was a past industry leader and secre-tary general for the International EggCommission.

The Market and Promotion Award, the IEC’soldest and most prestigious award, is given to

the country that has developed and imple-mented the most effective program for eggpromotion on behalf of its egg industry. Thisyear’s award was given to the United Statesand was received by officials of the AmericanEgg Board, the Egg Nutrition Center, and theUnited Egg Producers as representatives ofthe U.S. egg sector.

Continued from page 10

Hy-Line do Brasil Ltda., the new whollyowned subsidiary of Hy-Line International,officially inaugurated its new productioncenter in Nova Granada, Brazil last October.The new parent stock and commercial chicknucleus is located in the interior of the stateof Sao Paulo some 400 km northwest of thecity of Sao Paulo.

The new facilities, which have beenunder construction for the past year and aresituated on 571 hectares of land, include aparent stock farm with growing and layinghouses, feed mill, biosecurity facilities andproduction offices. The parent farm hascapacity for 280,000 females. The companyhas had grandparent stock in Brazil sinceDecember of 1998, and produced its firstwhite and brown egg parent breeders inmid 2000. The grandparent farm and hatch-ery are situated in a different location in thesame state of Sao Paulo. The grandparentfarm and hatchery have the capacity to

12

Commemorative plaque presented to Hy-Line by thebuilders, Henning Construction of Johnston, IA, U.S.A.

Hy-Line do Brasil Inaugurates New Facilities

Members of the staff of Hy-Line do Brasil and their spouses during the opening ceremonies. Far left, Mr. RogerioBelzer, Managing Director of Hy-Line do Brasil.

Continued on page 13

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Participants of the Hy-Line/Produss Layer Technical School.

Peruvian Distributor HostsTechnical School

produce more than a half million parentstock annually.

The hatchery for commercial chicks andadministration offices are located in the cityof Nova Granada. This new 4,000 squaremeter commercial chick hatchery contains36 setters and 15 hatchers and can hatch70,500 female chicks per day, six days aweek. The plant will produce 22 millioncommercial females per year when itreaches full production. The parent stockfarm has eight “dark-house” type growinghouses and 20 slatted floor laying houseswith automatic egg collection. The farm has

25 km of on-farm roads with separate routesfor clean-out and spent hen removal, whichare isolated from roads that are used foregg, feed and employee transportation.

Hy-Line has been in Brazil for 40 years,but for much of that time worked through anational distribution network of franchisehatcheries. In December of 1998, Hy-Linedo Brasil was formed to enhance Hy-line’spresence in the large market of more that 70million layers. The General Manager of theHy-Line subsidiary is Rogerio Belzer.

Produss, the Hy-Line distributor for Peru,hosted the second annual Hy-Line/ProdussLayer Technical School last April at the ElPueblo Resort near Lima. About 80 producersattended the five day meeting. Participantstook part in wet labs in which they practicedvaccination techniques, posting and beak trim-ming.

The keynote speaker for the meeting wasDr. Daniel Yan from Israel, who spoke on theegg and the cholesterol myth. Speakers fromthe Colombian Poultry Association alsopresented their program for increasing eggconsumption in that South American country.

Other speakers included Dr. Kenton Kreager,Hy-Line’s Technical Service Director; Dr. JamesArthur, Hy-Line Research Director; Dr. WoodieWilliams, Nutritionist and Juan AntonioSerratos, the Technical Service Director of Hy-Line de Mexico S.A.

The organizer of the annual meeting wasSantiago Agreda, the Produss Sales Manager.Produss is a member of the San Fernandogroup of companies which are owned by theIkeda family. The company distributes Hy-Line Brown commercial chicks throughoutPeru.

Continued from page 12

Produss, theHy-Line distributor inPeru is a member of theSan Fernando group ofcompanies which areowned by the Ikedafamily.

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Hy-Line do Brasiland Estin Comercio eRepresentacoes Ltda.,recently hosted ameeting of eggproducers from thesouthern Brazilianstates of Santa Cata-rina and Rio Grandedo Sul in the city ofCaxias do Sul. Morethan 140 producersattended the meeting,which launchedcommercial Hy-Linechick sales in theregion.

Speakers at themeeting includedEduardo Estin, President of Estin Comercio,Thomas Dixon, Hy-Line Director of Market-ing for Latin America and Rogerio Belzer,Director of Hy-Line do Brasil. Jose Vilela,

Hy-Line do Brasil Sales Manager, announcedthat Estin Comercio had been named theofficial Hy-Line chick sales representativefor the two southern Brazilian states.

L to R: Joel Vilela de Moura Leite - Sales Manager, Hy-Line do Brasil; EduardoEstin - Sales Representative to Rio Grande do Sul; Rugerio Belzer - GeneralManager, Hy-Line do Brasil;Thomas Dixon - Director of Marketing for LatinAmerica, Hy-Line International.

Hy-Line do Brasil Launches SalesEffort in South

“Hy-Line Launch” in Caxias do Sul, Rio Grande do Sul, Brazil, June 1, 2000

The first Hy-Line commercialchicks placed by Estinfrom Hy-Line doBrasil’s new productioncenter were deliveredin June, 2000.

Four members of the Beijing HuaduYukou Poultry Industry Company, Ltd., ledby Chairman of the Board and GeneralManager Sun Hao, visited Hy-Line facilitiesin Dallas Center, West Des Moines andSpencer, Iowa recently as part of their Ameri-can tour.

The Chinese company hasbeen one of the Hy-Line distrib-utors for more than a decadeand receives grandparent stockfrom the Dallas Center produc-tion center. The Beijing HuaduYukou group produces and sellsparent stock and commercialchicks all over China from itsheadquarters near the capitolcity of Beijing. The companyplaces more than 20 millioncommercial chicks annually andplans to reach an output of 50million commercial females earlyin this decade.

The group was accompanied by Chun-ning Zheng, the Hy-Line representative inChina. Following their stay at Hy-Line themembers of the team visited several easternUnited States cities before returning home.

L to R:Wang Maojuan, Zhang Qingxiang, Sun Hao, Charley (Chunning)Zheng, Naro Zheng, Qian Zhixiang

Chinese Visitors Tour Hy-Line

Hy-Line geneticists, veterinarians andnutritionists were among the more than 2,000delegates who attended the XXVI WorldPoultry Congress held at the Palais desCongres in Montreal, Quebec, Canada lastAugust.

The World Poultry Congress,which took place in conjunctionwith the 6th InternationalSymposium on Marek’s Disease,drew scientists and technicalexperts from all over the worldfor lectures, panel discussionsand scientific presentations onthe latest technical findingspertaining to poultry.

Hy-Line’s international anddomestic sales personnel alsomanned a booth at the show’sexhibition hall and met withdelegates and Hy-Line customers

from several countries, including: ThePeople’s Republic of China, Brazil, Japan,Peru, India, Pakistan, Egypt, Spain, Nigeria,Australia, Canada, the United States andVenezuela.

Hy-Line Scientists Attend theWorld Poultry Congress

View of the Hy-Line booth at the World Poultry Congress. 15

The WorldPoultry Congress, tookplace in conjunctionwith the 6thInternationalSymposium on Marek’sDisease.

Members of the Hungarian group and Hy-Line staff officials.

Hungarian Group Visits Hy-Line

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Gyorgy Buza, the Director of BabolnaAgraria, the Hy-Line distributor for Hungary,recently visited company headquarters in Iowawith 14 customers and technical people repre-senting 40% of the Hungarian industry. Thegroup toured company facilities and alsovisited commercial layer operations in Floridaand Iowa.

Babolna Agraria, a new company, became aHy-Line distributor in early 2000 and importedits first Brown parent stock in mid year. Buzaplans to sell Hy-Line commercial chicksthroughout the Hungarian industry and willalso export to certain eastern European nationsas well as to parts of North Africa. Thecompany began producing its first Hy-Linechicks late last year.

Hungary, which has one of the most sophis-ticated egg industries in Europe, producesbrown eggs and has a layer population ofbetween five and six million birds. Per capitaegg consumption is about 165eggs/person/year. About 15% of all eggsproduced are broken.

Following their visit to Hy-Line in Iowa,the group toured Yellowstone and Grand TetonNational Parks in the western United Statesbefore returning home. Accompanying the tourgroup were Babolna Agraria officials, Dr. LaszioBango, Research and Development Direc-tor and Dr. Csaba Molnar, Sales Director.

L-R: Dr. Csaba Molnar, Gyorgy Buza, and Ken Severson,Eastern Europe Marketing Director at Hy-LineInternational.

Hy-Line InternationalP.O. Box 65190 • West Des Moines • Iowa 50265, U.S.A.

Fax: 515-225-6425 • www.hyline.com

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