Back to the Future:Producing food in a changing

consumer environment

February 26, 2016Craig Rowles DVM

CEOIowa Cage Free

The egg industry has changed a lot!

• Overview of the Industry• Animal welfare/Housing issues• Egg Safety Rule• Audits• Keys to success – Pullet

development

Todays topic’s

U.S. Egg Industry

U.S. Egg Industry

1960’s and 1970’s1980’s and 1990’s

Back to the Midwest – near cheap grainMove to warmer weather and population

U.S. Egg IndustryState 1995 2015

(Million Layers) (Million Layers)

Iowa 14,709 58,100Ohio 21,754 29,733Indiana 19,528 26,629Pennsylvania 19,390 24,089California (70’s – 45 million layers) 24,794 15,234Texas 13,403 14,760Minnesota 10,145 10,583Nebraska 8,700 9,342Michigan 9,907 12,688Florida 8,381 8,191

Total 150,711 209,349 (70% of Industry)

U.S. Egg Industry

Mid 1970’s – 10,000 egg farmers in U.S. (est.)

1987 – 2,500 egg farmers

2015 – 175 commercial egg companies represent 99% of all eggs produced in the U.S.

60 companies with more than one million layers

These companies represent approximately 255 million layers or 89% of egg production

17 companies with more than 5 million layers

U.S. Egg Industry

Prior to AI - 305 million layers in U.S.

Average size farm around 1.5 million layers

Some farms with more than 6 million layers

91.3% of eggs still produced in cages 4.5% traditional cage-free 4.2% organic

U.S. Egg Industry

How are consumers…consuming eggs in the U.S.

U.S. Egg Industry

Of the 229 million cases of shell eggs produced:(Approximately 6.8 Billion Dozens – 82 Billion Eggs)

122.1 million cases went to retail (53.3%)

73.3.0 million cases were further processed (32%)

22.9 million cases went for foodservice (10%)

10.7 million cases were exported (4.7%)

U.S. Egg Industry

Per Capita Consumption – 316 million Americans

2000 – 251.7

2005 – 255.4

2010 – 247.9

2015 – 261 (estimate)

Animal WelfareIssues

2002

Has it been enough?

2015

States with Laws Passed65 Million Layers

Interstate Commerce Nightmare

Conventional Caged Egg Production

Modern Production FacilityAerial photo looking west 6.4 Million Hens

Enriched Colony Egg Production

Enriched Colony Cages

Cage-Free Egg Production

Welfare Tradeoffs

• Cap Ex. Per Bird– Old high rise buildings - $16– Belted Battery Cages - $23– Cage Free - $42

• Labor per dozen:– Caged $.02– Big Dutchman Aviary $.05– Vencomatic $.07

• Total Costs per dozen for cage free versus cage is 35% higher!

Costs…………….

• Salmonella Enteritidis prevention program• Pullets– must be procured from SE monitored breed flocks• Environmental testing

– Chick paper on arrival– 14-16 weeks of age environmental test– 40-45 week environmental test– 4-6 weeks post molt

• Biosecurity Practices– Visitors, cross contamination, wild birds, rodents, animals– Rodent, fly, other pest control programs

• Cleaning and disinfection– Remove manure, dry clean the house, spray disinfectants

• Refrigeration – hold and transport eggs at 45 degrees

Egg Safety Rule

Testing Procedures

• Written SE prevention Plan• Documentation that pullets were raised under “monitored”

conditions• Document compliance with

– Biosecurity, rodent and pest control, cleaning and disinfection, and refrigeration

• Environmental and egg sampling procedures• Test results• Diversion of eggs• Records of review, modification, and corrective actions

Required Records

• American Humane Certification• United Egg Producers• American Bakery Institute• Specific customer audits

Audits

• Growing system must be appropriate for the layer system• Vaccinations must be timely and appropriately administered

– 8 vaccination steps• Management and nutrition must be monitored

– 14 management checkpoints– 5 diets– Water and feed consumption monitored daily

Keys to success - Pullet Development

Automatic Vaccination machines

Spray vaccines at the hatchery

Wing Web vaccination

Spray vaccines on the farm

Number of birds weighed 99

Mean body weight 1.783 Lb

Mean + 10% 1.961 Lb

Mean – 10% 1.605 Lb

Number of birds outside 1.961 and 1.605 lb 9

Uniformity = ([99-9]/99) x 100 = 91 %

CV = (.11/1.783) x 100 = 6.1 %

Pullet Growth

Happy to answerquestions?