Poultry Times January 16, 2012 Issue

Poultry TimesSince 1954, the nation’s only poultry industry newspaper

PERIODICALS

January 16, 2012

By David B. StricklandPoultry Times [email protected]

WASHINGTON — World-wide corn production for 2011-2012 is being reported as a record 868 million tons, an increase of 8.5 million tons noted in Decem-ber, based on larger production in China, the USDA Economic Research Service said in its re-cent Feed Outlook report.

“U.S. feed grain supplies (were) increased slightly (in De-cember) due to an increase in forecast oats imports from Can-ada, where supplies are plenti-ful,” ERS said. “Expected corn

use is down 5 million bushels due to reduced prospects for use in sweeteners . . . Forecast prices received by farmers are lowered for corn, sorghum and barley.”

Feed usageThe report notes an estimated

supply of U.S. feed grain for 2011-2012 at 357.6 million tons, which is less than the 380.5 mil-

Poultry Times January 16, 2012Volume 59, Number 2www.poultrytimes.net

OUTLOOKFEED

Photo by David B. Strickland

International Feed Expo: The International Feed Expo, sponsored by the American Feed Industry Association, and held in conjunction with the International Poultry Expo, Jan. 24-26, at the Georgia World Congress Center in Atlanta, Ga., will provide thousands of visitors the chance to see and hear about current industry trends from speakers and exhibitors from all around the world. More informa-tion can be obtained at http://www.ife12.org, or 703-524-0810.

ERS: World corn production up

See Outlook, Page 8

By Barbara OlejnikPoultry Times [email protected]

WASHINGTON — The U.S. Food and Drug Administration has issued an order that prohibits certain uses of the cephalosporin class of antimicrobial drugs in cattle, swine, chickens and tur-keys, effective April 5, 2012.

The FDA said it is taking this action to preserve the effective-ness of cephalosporin drugs for treating disease in humans. Pro-hibiting these uses is intended to reduce the risk of cephalosporin resistance in certain bacterial pathogens.

The National Chicken Coun-cil, in a statement by Tom Super, NCC vice president of com-munications, said it shares the concerns of others that FDA’s rule on extralabel drug use will take medical decisions to treat animals out of the hands of vet-

erinarians. “We question any substantive link or scientific basis between veterinary use of cephalosporins and antibiotic re-sistance in humans.”

Super added, “Antibiotics are a valuable tool in ensuring animal health and in producing wholesome food for the consum-ing public.

“Antibiotics are used sparingly in chicken production, and only if they are approved by the FDA. A majority of the antibiotics, such as Ceftiofur, are not used in human medicine meaning the threat of creating resistance is es-sentially reduced to zero.

“Consumers should know that chicken is safe, wholesome and that all chicken produced in the United States is inspected by the USDA. Inspectors test meat samples for chemical and antimi-crobial residues — poultry must be in compliance with USDA

standards. When antibiotics are used in chicken production, strict withdrawal periods must be fol-lowed before the birds are pro-cessed for food. Chicken consis-tently has the best record of any product tested by USDA.”

Cephalosporins are commonly used in humans to treat pneumo-nia as well as to treat skin and soft tissue infections. In addition, they are used in the treatment of pelvic inflammatory disease, di-abetic foot infections and urinary tract infections.

In its order, the FDA said it is prohibiting what are called “ex-tralabel” or unapproved uses of cephalosporins in cattle, swine, chickens and turkeys. The pro-hibited uses include:l Using cephalosporin drugs

at unapproved dose levels, fre-quencies, durations, or routes of administration;

FDA limits antibiotic usein food animals

See Antibiotic, Page 8

The Associated Press

BEIJING — The strain of H5N1 bird flu that killed a Chinese man cannot spread among people, a health agency has said, ap-pealing for calm after the country’s first reported case of the dis-ease in humans in 18 months.

Genetic analysis indicated the virus spread directly from poultry to the victim, who died Dec. 31 in the southern city of Shenzhen, the Shenzhen Disease Control Center said in a statement reported by the official Xinhua News Agency.

“Though it is highly pathogenic to human beings, the virus cannot spread among people,” the statement said, according to Xin-hua. “There is no need for Shenzhen citizens to panic.”

H5N1 rarely infects humans and usually only those who come

China: Bird flu deathnot human to human

See Bird flu, Page 5

2 POULTRY TIMES, January 16, 2012

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ARLINGTON, Va. — Car-gill Animal Nutrition of Wooster, Ohio, is the 2011 Feed Mill of the Year, as named by the American Feed Industry Association and Feedstuffs, the sponsors of the annual program. Southern States Cooperative’s Winchester Mill in Winchester, Ky., is the runner-up.

“Wooster,” as the winning plant is known, is managed by Susanna Wright, only the second female plant manager to win Feed Mill of the Year.

“To be recognized externally by winning AFIA’s Feed Mill of the Year is a huge accomplishment, and reflects strongly on the entire team we have in place, from pro-duction stakeholders, to sales, to administrative support,” Wright said.

Constructed in 1993, the plant was built to cater to the dairy mar-ket in Northeastern Ohio. The mill manufactures 42,000 tons of feed, split between bagged and bulk, including meals, pellets and tex-tured feeds. Both inbound ingre-dients and finished feeds are tested for various quality specifications monthly, at a minimum, and all plant scales are certified externally twice a year.

Once Wooster expanded to carry Nutrena bagged farmstore feeds, the plant’s territory grew to include distribution in Pennsylva-nia, West Virginia and Kentucky. In the late 1990s, a 10,000-square-foot addition to the warehouse was built to accommodate the Cargill Animal Nutrition brand family which includes Showmaster brand

show feeds, Record Rack wildlife feeds and Right Now Mineral. During the last three years, the facility has installed more than $1 million in new equipment to accommodate sustained growth.

Cargill’s Wooster plant was certified in 2010 by AFIA’s Safe Feed/Safe Food Certification Program. The mill is in compli-ance with the Bio Terrorism Act and has been inspected by the Food & Drug Administration within the last year and deemed compliant. The mill also has a SP plant that has been certified by a professional engineer.

Cargill Wooster has 10 produc-tion employees, one maintenance employee, five truck drivers and

one clerical employee, who work on two shifts. The plant has a written recall program, safety program, a written emergency plan and a safety committee with five rotating members represent-ed by both supervisor and non-supervisory employees. Twelve employees hold CPR-certifica-tion.

“Our continued success out of this location speaks volumes for the team we have in place, both past and present,” Wright said.

Wooster has had zero lost time accidents since 2004. Of its safe-ty record, Wright noted, “I feel incredibly privileged to work for a company that places such a high emphasis on the safety of

its employees. There is never a doubt in my mind that when it comes down to doing a job, safe-ty comes first; this is apparent in both day to day operations here at Wooster, and long-term plan-ning around how we continue to grow our business.”

Cargill Wooster sponsors and donates to several community causes. It was among eight other Cargill businesses that partici-pated in the Ohio Collabora-tive Hunger Relief fund drives of 2010 and 2011, raising more than $500,000. The plant is also is involved with the Viola Startz-man Free Clinic, Akron-Canton

Cargill’s Wooster plant named top feed mill

See Feed mill, Page 9

ARLINGTON, Va. — The 2012 Pet Food Conference will be held in Atlanta on Tuesday, Jan. 24, at the International Feed Expo/Inter-national Poultry Expo, the annual event organized by the American Feed Industry Association in con-junction with the U.S. Poultry & Egg Association. The conference covers a variety of topics ranging from regulatory issues to the tech-nical aspects of production, food safety, marketing and use of ingre-dients.

The Pet Food Conference will in-clude several expert speakers. Svet-lana Uduslivaia of Euromonitor International will address domestic and global industry trends, while Dr. Dale Hill, ADM Alliance Nu-trition Inc., will discuss ingredient variability. Pet food safety topics will be addressed by Douglas Mar-shall, Eurofins Scientific Inc., and Duarte Diaz, Novus International Inc. The Food & Drug Administra-tion will give an update on the one year anniversary of the Food Safety Modernization Act, and AFIA’s Leah Wilkinson will discuss third-

party certification programs.The conference will also feature

a number of panels, including one that will deliver a regulatory up-date of ingredient approvals, un-approved animal drugs, calorie labeling and the future of GRAS (Generally Regarded As Safe) listings. An ingredient supplier question and answer panel will provide an opportunity to gain insight into establishing supplier relationships and issues facing the pet food ingredient sector. The concluding panel will high-light the future of food and feed safety.

The day-long conference, which will be held from 8 a.m. to 5:30 p.m., is sponsored by AFIA’s Pet Food Committee and USPOULTRY’s Poultry Protein & Fat Council.

The Pet Food Conference has an after Jan. 6 add-on fee of $60, in addition to the initial IFE/IPE registration fee of $60 for a total of $120.

More information on the Pet Food Conference can be obtained

by contacting Leah Wilkinson, AFIA director of ingredients and state legislative affairs, at [email protected] or 703-558-3560. More information on the International Feed Expo/Interna-tional Poultry Expo is available at http://www.ife12.org.

IPE hosts Pet Food Conference

POULTRY TIMES, January 16, 2012 3

ATLANTA — As part of the Interna-tional Poultry Expo/International Feed Expo’s educational offerings, the Na-tional Renderers Association will hold a two-day program on Rendering Quality Feed Ingredients.

The program is scheduled for Thurs-day and Friday, Jan. 26-27, 2012, at the Georgia World Congress Center in At-lanta, Ga. All registered Expo attendees are eligible to attend the International Rendering Symposium for an additional $150.

The U.S. rendering industry collects and safely processes more than 50 billion pounds of animal byproducts each year, officials noted. Rendering is the process of converting these materials into fats and proteins used in animal feed. The render-ing industry provides services for the safe collection of these materials, transports the materials in bio-secure, leak-proof

trucks and uses heat (240 to 290 degrees F) to dehydrate and separate the fat and solid materials.

This program session will focus on the quality and safety of rendered products. Building on a background of the indus-try and its markets, globally recognized speakers will describe process control methods, microbiological controls, cur-rent research and useful details on using rendered products in high quality diets for various species, NRA noted.

The symposium will be held in Room B-405 of the Georgia World Congress Center, and the agenda will include:

Thursday, Jan. 26l 1 p.m.: Welcome, Dr. Don Franco,

moderatorl 1:10-1:30 p.m.: “Overview of North

American Rendering Industry, NRA and WRO,” Tom Cook, NRA.l 1:30-2 p.m.: “Global Rendering

Markets,” Kent Swisher, NRA.l 2-2:30 p.m.: “Rendering Code of

Practice for Safety and Quality-Certifi-cation Standards,” Dr. David Meeker, NRA.l 2:30- 3 p.m.: Break.l 3-3:30 p.m.: “Quality Assurance in

Manufacturing Rendered Products-Sup-plier Perspective,” Tom Dobbs, Griffin Industries.l 3:30-4:15 p.m.: “Controlling Salmo-

nella in Feed ,” Dr. Frank Jones, Emeritusprofessor, University of Arkansas.l 4:15-5 p.m.: “Regulation of the U.S.

Feed Industry,” Richard Sellers, Ameri-can Feed Industry Association.l 5-5:30 p.m.: Discussion, Questions,

Interaction.

Friday, Jan. 27l 8-8:30 a.m.: “Research in the Ren-

dering Industry,” Dr. Gary Pearl, Fats and

Proteins Research Foundation.l 8:30-9:10 a.m.: “Predicting Feed

Value of Rendered Products,” Dr. Jeffre Firman, University of Missouri.l 9:10-9:40 a.m.: “The Role of Ren-

dered Products in Aquaculture Feeds,” Dr. Albert Tacon, international nutrition consultant.l 9:40-10 a.m.: Break.l 10-10:45 a.m.: “Rendered Prod-

ucts for Feeding Swine,” Dr. Brian Kerr, USDA Agricultural Research Service.l 10:45-11:30 a.m.: “Rendered Prod-

ucts for Pet Food,” Jarrod Kersey, scien-tific and regulatory affairs manager, the Nutro Co.l 11:30 a.m.-noon: Discussion, Ques-

tions, Interaction.More information can be obtained at

http://www.ife12.org; or from the Na-tional Renderers Association at 703-683-0155.

Int’l. Rendering Symposium agenda set

WASHINGTON — The ethanol tax subsidy, the Volumetric Ethanol Excise Tax Credit (VEETC), ex-pired at the end of the day on Dec. 31.

The following includes industry representative reactions:l Mike Brown, president of Na-

tional Chicken Council, said, ““The broiler chicken industry has been under intense economic pressure from the rising cost of feed grains, much of which is caused by the fed-eral government’s ethanol policies, which is why NCC welcomes the expiration of two of those misguid-ed policies — VEETC and the im-port tariff on foreign ethanol. Their sunset is a culmination of growing concern among the American pub-lic and on Capitol Hill, marked in June by overwhelming bipartisan and bicameral votes to end unnec-essary federal support of corn-based

ethanol. These developments put the mature corn-based ethanol in-dustry two steps closer to operating on a level playing field with other agriculture commodities whose largest input cost is corn. This is a victory for American taxpayers and the U.S. Treasury who are sav-ing $6 billion in lost revenue and a victory for U.S. broiler chicken companies who continue to strug-gle because of the artificially high price of corn.”l Joel Brandenberger, president

of the National Turkey Federation, said, “The National Turkey Federa-tion (NTF) commends Congress for allowing the Volumetric Etha-nol Excise Tax Credit (VEETC) and import tariff on foreign ethanol to expire. This advance is signifi-cant in reforming the current U.S. biofuels policies, which has caused serious harm to the turkey industry.

The blender’s credit and import tariff on foreign ethanol distorted the corn market, creating need-less volatility in the cost of ani-mal feed. NTF and its members recognize that the battle to reform federal renewable fuels policy into something more sensible is far from over. The federation will continue to remain diligent to ensure the VEETC does not re-appear and will continue to push for real reform of the Renewable Fuels Standard.”l However, in an earlier re-

lease, Brooke Coleman, executive director of the Advanced Ethanol Council, in urging the extension of the tax incentive, wrote, “The advanced and cellulosic biofuels industry is now in the process of building new plants, innovating existing production facilities with emerging technologies, and intro-

ducing new product streams that will allow the renewable fuels sector to become more profitable, diversified and efficient. Several billion dollars have been invested in advanced biofuels development with the expectation that Congress will stay the course with regard to its commitment to the industry. A tax increase on advanced biofuels at this time would curtail investment and undercut an industry just start-ing to close deals and break ground on first commercial plants.”l Geoff Moody, director of

energy and environmental policy at the Grocery Manufacturers As-sociation, said, “GMA applauds Congress for allowing the ethanol tax credit and tariff to expire. After more than 30 years and billions of dollars in taxpayer support, the corn ethanol industry is able to stand on its own without government sup-

port, and allowing these subsidies to sunset is an important first step toward a more rational fuels policy. We look forward to working with Congress and the administration next year to reform other poli-cies that divert food and feed into fuel.”l Gawain Kripke, director of

policy & research at Oxfam Amer-ica, said, “Kudos to Congress for taking a pass on extending another year of pork barrel spending on blending credits to the corn ethanol industry that encourages the use of food crops for fuel and drives up food prices at a time when the world’s poorest people can least af-ford it. We look forward to work-ing with Congress toward creating a more effective and rational U.S. biofuels policy that supports both alternative energy sources and global food security.”

Industry responses to expiration of ethanol subsidy

By Joel NewmanSpecial to Poultry Times

ARLINGTON, Va. — As we begin 2012, I wish everyone a happy and prosperous New Year. The International Feed Expo/In-ternational Poultry Expo will be

here soon. As you prepare to attend and learn about the latest products and trends in our industry, I would like to provide a closer look at the feed industry in

2012. This year, the key opportu-nities and issues are: the recently passed free trade agreements, Food Safety Modernization Act rulemaking, the price of feed commodities and the upcoming November elections.

Free trade agreementsIn good news for the industry,

the recently signed Free Trade Agreements (FTAs) with South Korea, Columbia and Panama will positively benefit agricul-ture. The enactment of the three treaties will give U.S. food and agriculture products a greater competitive advantage, critical to the growth of the commercial feed industry and the U.S. econ-omy. Roughly 20,000 jobs are expected to be created, and ex-ports are projected to increase by $2.3 billion, giving the American economy a much needed boost.

Closer to home, the FTAs will also have a large impact on the poultry sector. The trade agree-ment with South Korea will phase out the 20 percent tariff on frozen chicken leg quarters in 10 years. Tariffs on frozen chicken breasts and wings will be phased out in 12 years and the 18 percent tar-iff on frozen turkey cuts will be phased out in seven years. The U.S. already represents one-third of the poultry import market for Korea, and these tariff elimina-tions will allow the U.S. poultry market to gain even more access to the Korean market.

Currently, Panama’s tariff on chicken leg quarters from the U.S. is 260 percent. Under the agreement, duties on high-qual-

ity beef and frozen turkeys are eliminated, and standard grade beef cuts, chicken leg quarters, pork and dairy products are given duty-free access under tariff rate quotas (TRQs). Additionally, the 30 percent tariff on prime and choice cut beef will be immedi-ately eliminated.

Colombia has the third largest economy in Central and South America. Although Colombia has not traditionally been a large market for U.S. dairy, meat and poultry products, exports are ex-pected to grow over time with the advantages achieved by the agreement. Additionally, with the exception of chicken leg quarters, import duties on most poultry products will enjoy duty-free access to Colombia.

Food safetyI cannot discuss 2012 with-

out covering the Food Safety Modernization Act (FSMA), the landmark legislation passed one year ago. This is a monumental law for our industry and will af-fect almost everyone. The Food & Drug Administration has been busy working to complete the rulemaking and implement the new provisions and authorities, with several rules due to go into effect this year.

This year, FDA is expected to publish preventive control rules. Throughout the rulemak-ing process, The American Feed Industry Association advised FDA to maintain a practical dis-tinction between food and feed safety requirements. AFIA has five FSMA work groups, who diligently submit comments and provide guidance to FDA, which will ultimately result in fair regu-lations, tailored for our industry.

One very practical and com-prehensive way to prepare your plant for FSMA is to participate in the AFIA Safe Feed/Safe Food


ViewpointCompiled by Barbara Olejnik, Associate Editor

[email protected]

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Poultry Times

Newman

“This year, the key opportunities and issues

are: the recently passed free trade agreements, Food Safety Modernization Act rulemaking, the price of feed commodities and the upcoming November elections

”Feed industry seesopportunitiesand issues in 2012

See Newman, Page 13

Joel G. Newman is president and CEO of the American Feed In-dustry Association with offices in Arlington, Va. He is also a di-rector of the International Feed Industry Federation and is an appointed member of USDA’s Technical Advisory Committee to the Secretary.


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into close contact with diseased poultry. Scientists are closely watching the virus for any signs it is becoming more easily transmissible from human to human.

A 39-year-old bus driver surnamed Chen devel-oped a fever Dec. 21 and was hospitalized Dec. 25, according to an earlier statement by city and provincial authorities. The provincial health de-partment said Health Ministry experts confirmed that he was infected with H5N1.

Xinhua said health authorities still were trying to figure out where he was infected.

The Guangdong health department has said 120 people who had close contact with Chen have not developed any abnormal symptoms.

The World Health Organization says globally 336 people have died from 573 confirmed bird flu cases since 2003. Of these, 40 cases were in China, 26 of which were fatal.

Chen’s death was a week after two dead birds tested positive for the virus in Hong Kong, which is just across a river from Shenzhen.

More than 19,000 birds at a Hong Kong mar-ket were slaughtered and imports and sales of live poultry were banned for three weeks after a chick-en carcass tested positive for H5N1. Lab tests later confirmed that an Oriental magpie robin found dead on Dec. 17 was also infected.

China’s last reported human case of H5N1 was in June 2010. A pregnant 22-year-old woman from central Hubei province died after being exposed to sick and dead poultry.

•Bird flu(Continued from page 1)

By Dr. Curtis NovakSpecial to Poultry Times

ST. PAUL, Minn. — Anti-biotics have been a common feed additive in poultry feed as a growth promoter (AGP) to improve performance and maintain health by reducing the burden of pathogens assuring a safe food for consumers. Anti-biotics can and are frequently used therapeutically and pro-phylactically for the treatment of disease in poultry.

It was back in the early 1900’s when the antibiotic pioneers first discovered the chemical substance (Salvar-son) that cured human disease while prontosil rubrum was discovered to protect mice and rabbits from infection by streptococci and staphylococci

(Jones et al., 2003). It wasn’t until 1946 when the first re-corded research indicated the positive effects of antibiotics on chicken growth which was originally believed to be relat-ed to the discovery of vitamin B12 (Jones et al., 2003).

However, increasing pres-sure to reduce or eliminate the use of antibiotics in feed is oc-curring due to the negative hu-man health issue of antibiotic resistance.

In 1994, it was first shown that vancomycin resistance en-terococci (GRE) could be iso-lated to farm animals in Great Britain and was suggested that farm animals could be a reservoir for the GRE infec-tion (Bates et al., 1994). In the study, 62 isolates of GRE were isolated from non-hu-man sources of which 22 were from farm animals and five from uncooked chicken. Roy and coworkers (2002) also iso-lated salmonella from poultry products, poultry and poultry environment and found that 91 of the 92 samples tested were

resistant to erythromycin, lin-comycin and penicillin.

A number of strategies to re-duce the use of antibiotics in feed have been explored, in-cluding improved biosecurity, vaccination, genetic selection, competitive exclusion (CE), enzymes, organic acids and phytogentics.

Vaccination can be effective, but the avian immune system may be compromised when vaccinating to reduce S. enter-itidis at day 1, and it was sub-sequently determined that the optimum vaccination time was at day 28 (Holt et al., 1999). Chicks are immunologically naive and prone to rapid and persistent colonization by ben-eficial and pathogenic bacteria in the first three to four weeks of life (Barrow et al., 1988) indicating that CE may be a beneficial approach.

One CE approach utilizes a complex mixture of bac-teria derived from the gut of healthy birds subsequentially orally administered to day old birds to establish a beneficial

microflora. This microflora in turn prevents the colonization of pathogenic microorganisms such as salmonella and E. coli.Probiotics are defined as “live microbial feed supplements which beneficially affect the host animal by improving its intestinal microbial balance” (Fuller, 1989). A number of researchers have reported that the addition of probiotics to the diet of broilers and layers leads to improved performance (Jernigan et al., 1985; Barrow, 1992; Jin et al., 1997).

Another CE product (Prebi-otics) uses the characteristic of mannose-specific binding with fimbriae of pathogenic gram-negative bacteria such as E. coli and salmonella. These

bacteria grow to express the type 1 fimbria and adhere ef-ficiently to the crop epithe-lium, lamina propria and api-cal surfaces of intestinal villi. The adhesion was inhibited by á-methyl-D-mannoside (Edel-man et al., 2003).

Mannan oligosaccharides (MOS), derived from man-nans on yeast cell wall, are non-digestible for monogastric animals and can be utilized by lactic acid bacteria. MOS also bind the fimbriae of patho-genic bacteria to prevent them from attaching and coloniz-ing on small intestine mucosa. Adhered bacteria are subse-quentially washed out of the

Feed ingredients aid gastrointestinal health

Dr. Curtis Novak is manager-technical service and field sales with Land O’Lakes Purina Feeds in Kansas City, Mo. This article is drawn from a presentation given at the 2011 Midwest Poul-try Federation Convention in St. Paul, Minn.

See Novak, Page 16


BusinessCompiled by David B. Strickland, Editor

[email protected]

Cargill resumesground turkeyArk. production

SPRINGDALE, Ark. — Ground turkey production has resumed at Cargill’s meat processing facility in Springdale, Ark., after the USDA approved an enhanced food safety plan. The company sus-pended ground turkey production after voluntary recalls in August and September.

Due to the resumption of ground turkey production, Cargill has brought back approximately 50 employees who were part of an early October, 130-person, layoff. More than 70 people had al-ready been called back to work as job openings in other parts of the facility occurred.

During the past three months Cargill food safety scientists have been exploring all possible solutions to reduce the risk from sal-monella in ground turkey, the company said.

According to Steve Willardsen, president of Cargill Value Add-ed Meats Retail, “No stone has been left unturned as we searched for answers to help us improve food safety.”

One of four ground turkey production lines has been reactivated at Springdale and the other three will be reactivated during coming weeks as part of a multiphase ramp-up of production at Spring-dale, the company added.

To reach this point, Cargill took the following actions:l Complete reassessment and overhaul of the facility’s food

safety plan.l Implementation of several new food safety measures, includ-

ing more and better bacterial reduction steps throughout the pro-cess.l Creation of a three-phase ground turkey sampling and moni-

toring program which is the most rigorous in the industry.l Use of high pressure processing (HPP) to reduce salmonel-

la.l Development of an enhanced process control monitoring

system to ensure all aspects of the company’s salmonella control program are continuously generating the best possible results.

A phased approach to resumption of ground turkey production will ensure Cargill’s enhancements to its food safety program are working as designed, Cargill said. As a federally inspected meat processing facility, USDA food safety inspectors will be present

See Cargill, Page 7

In other Business news:

Sanderson Farms reports fourth quarter

LAUREL, Miss. — Sanderson Farms Inc. on Dec. 20 reported results for the fourth quarter and fiscal year ended Oct. 31, 2011. Net sales for the fourth quarter of fiscal 2011 were $559.8 million compared with $529.1 million for the same period a year ago.

For the quarter, the compa-ny reported a net loss of $21.6 million, or 97 cents per share, compared with net income of $47.8 million, or $2.08 per share, for the fourth quarter of fiscal 2010. The net loss for the quarter includes an ad-justment of $9 million, or 27 cents per share net of income taxes, to record live invento-ries on hand at Oct. 31, 2011, at the lower of cost or market as required by generally ac-cepted accounting principles, the company said.

Net sales for fiscal 2011 were $1.978 billion compared with $1.925 billion for fiscal 2010. The net loss for the year to-taled $127.1 million, or $5.74 per share, compared with net income of $134.8 million, or $6.07 per share, for last year. The net loss for the fiscal year also includes the inventory ad-justment described above.

“The fourth quarter of fiscal 2011 marked the end of a chal-lenging year for Sanderson Farms and the poultry indus-try,” said Joe F. Sanderson Jr., chairman and CEO of Sander-son Farms Inc. “We reported record annual sales of $1.978 billion, a 2.7 percent increase

over fiscal 2010. However, we also reported a record net loss of $127.1 million, or $5.74 per share. Our results reflect the combination of weaker poultry markets throughout the year and the significantly higher feed grain costs we experi-enced during the entire year.

“For the year, we sold 2.794 billion pounds of dressed poul-try, another record, compared with 2.570 billion pounds in fiscal 2010.”

According to Sanderson, overall market prices for poultry products were lower in the fourth quarter of fiscal 2011 compared with prices a year ago. As measured by a simple average of the Georgia dock price for whole chick-ens, prices were higher by ap-proximately 1.5 percent in the company’s fourth fiscal quar-ter compared with the same period in fiscal 2010, and were higher by 1.7 percent for the fiscal year compared with the prior year. The higher Georgia dock whole bird price reflects steady demand for the compa-ny’s retail chill pack product during this fiscal year.

On the other hand, food-service demand has remained very weak, Sanderson noted. That weakness is reflected in boneless breast meat prices, which averaged 19.1 percent lower in the fourth quarter than the prior-year period. For fis-cal 2011, boneless prices were 14.5 percent lower when com-pared with fiscal 2010. Jumbo wing prices averaged 87 cents per pound during the fiscal year, down 31.6 percent from the average of $1.27 per pound for fiscal 2010. The average market price for bulk leg quar-ters increased approximately 29.8 percent for the quarter, and increased approximately 19.2 percent for fiscal 2011.

The relatively strong dark meat prices reflect good ex-

port demand during the year, the company said. Prices paid for corn and soybean meal, the company’s primary feed ingre-dients, increased significantly during the year and were up 73 percent and 23.5 percent, respectively, during the fourth fiscal quarter when compared with the fourth quarter a year ago. For the year, total feed costs in flocks sold were 38.8 percent higher than fiscal 2010.

“An important milestone for Sanderson Farms in fiscal 2011 was the start up of our new Kinston, North Carolina, poultry complex,” Sanderson added. “This project was com-pleted on time and on bud-get, and we began processing chickens in Kinston in Janu-ary. We look forward to the new marketing opportunities the Kinston plant will provide for Sanderson Farms. The in-creased production at the Kin-ston plant during fiscal 2012 will more than offset the 4 percent production cut we an-nounced in August at our other plants. We will institute that cut in January to better bal-ance our production with our customers’ demand. Because we expect demand from our foodservice customers to re-main soft until American con-sumers regain their confidence and the employment outlook brightens, we currently plan to leave our production cut in place through fiscal 2012.”

“We are pleased that our bal-ance sheet put us in the posi-tion to withstand the challeng-es of this past fiscal year,” he said. “As of Oct. 31, 2011, our balance sheet reflected $948.5 million in assets, stockholders’ equity of $506.9 million and net working capital of $324.3 million. Our total long-term debt at year-end was $273.7 million. We have often said

(Continued on next page)


during all ground turkey production.Cargill also is working with a number of university, government

and private researchers to accelerate the development of new tech-nologies that have shown significant promise for commercial ap-plication.

“Our quest for the safest food products possible is never ending,” Willardsen said. “With the collective knowledge, experience and ca-pabilities we’ve tapped to find solutions, we are confident in our ability to better ensure the safest ground turkey products available for consumers. We are also very pleased to be able to bring people back to work during this holiday season.”

More information can be obtained at http://www.cargill.com/tur-key-recall.

•Cargill(Continued from page 6)

Businessthat a strong balance sheet is an important advantage in today’s economic environment and provides us with the financial strength to not only support our growth strategy, but also to manage through conditions like we experienced during fis-cal 2011. We deeply appreciate the hard work and dedication to excellence of everyone as-sociated with our company, including our employees and growers.”

Gainco to distribute Anritsu systems

GAINESVILLE, Ga. — Gainco Inc. has announced an agreement with Anritsu In-dustrial Solutions USA Inc. in which Gainco has been named the exclusive authorized dis-tributor and re-seller of Anrit-su-brand HD X-ray inspection systems, checkweighers, com-bination systems and related quality control software to the poultry processing industry in the U.S.

Anritsu’s roots date back more than 40 years, and its first X-ray systems were introduced in 2000. Since then, more than 7,000 units have been installed worldwide, even as the product line has continually evolved, the company said.

“We’re pleased to be named Anritsu’s exclusive authorized distributor to the poultry pro-cessing industry in America,” Don Esch, president of Gain-co said. “The Anritsu brand is well-respected — and justifi-ably so. Together, we can of-fer solutions that pair Gainco’s highly effective yield enhance-ment systems and equipment with the precision-engineered

X-ray detection systems that Anritsu manufactures.”

Anritsu and Gainco products will be on joint display at the International Poultry Expo in Atlanta, Ga., on Jan. 24-26. Gainco is a subsidiary of Bet-tcher Industries Inc.

More information can be ob-tained at http://www.gainco.com.

Cal-Maine reports second quarter results

JACKSON, Miss. — Cal-Maine Foods Inc. on Dec. 27, announced results for the sec-ond quarter and six months ended Nov. 26, 2011. Net sales for the second quarter of fis-cal 2012 were $290.4 million compared with net sales of $234.5 million for the same quarter of fiscal 2011.

The company reported net income of $23.3 million, or 97 cents per basic share, for the second quarter of fiscal 2012 compared with net income of $15.2 million, or 64 cents per basic share, for the second quarter of fiscal 2011.

For the first six months of fiscal 2012, net sales were $534.2 million compared with net sales of $424.9 million for the prior-year period. The company reported net income of $26.4 million, or $1.11 per basic share, for the first half of fiscal 2012 compared with net income of $19.9 million, or 84 cents per basic share, for the year-earlier period.

“We are pleased with our results for the second quarter and the favorable trends in Cal-Maine’s business through the first half of fiscal 2012,” said Dolph Baker, president and CEO of Cal-Maine Foods

Inc. “Our higher sales reflect strong seasonal retail demand for eggs as well as higher av-erage selling prices. We typi-cally sell more eggs around the holidays and demand has been very good this fall with total dozen eggs sold up 6 percent compared with the same peri-od last year. Sales of specialty eggs, which have a higher sell-ing price, accounted for ap-proximately 23 percent of shell egg revenue for the quarter and over 16 percent of total dozens sold. Value-added specialty eggs include nutritionally-en-hanced, organic and cage free eggs, and represent a rapidly growing segment of the shell egg market as these products offer alternative choices for consumers with special pref-erences.”

“Our production costs have been materially affected by our feed costs, which were up 20 percent compared with the second quarter of fiscal 2011,” he added. “Prices for corn and soybean meal, our primary feed ingredients, have contin-ued to escalate this fiscal year. However, we are pleased with the efficiency of our operations and our ability to absorb these higher costs and improve our profitability for the quarter. While we have recently seen some easing in grain prices, we still expect our feed costs to be high and volatile for the rest of the fiscal year.”

For the second quarter of fis-cal year 2012, Cal-Maine will pay a cash dividend of approx-imately 32.5 cents per share to holders of its common and Class A common stock. The amount paid could vary slight-ly based on the amount of out-standing shares on the record

date. The dividend is payable Feb. 9, 2012, to shareholders of record on Jan. 25, 2012.

Tyson & Roundy’s join to fight hunger

MILWAUKEE, Wis. — Ty-son Foods Inc. joined with Roundy’s Supermarkets to lend a helping hand in the fight against hunger by donating more than 29,000 pounds of food to Feed-ing America Eastern Wisconsin.

Clearly there is a need, the company noted. According to the U.S. Census Bureau’s latest American Community Survey Profile, 12.4 percent of Wis-consin’s population is living in poverty; however, 24.3 percent of people in Milwaukee live in poverty.

“Since we’re in the food business it makes sense for our company to donate protein to feed people in need; however, we also believe in raising hun-ger awareness,” said Donnie Smith,

president and CEO of Tyson Foods. “One of the keys to ending hunger in America is mobilizing more people to join the fight. That’s why we’re encouraging people across the nation, including our own team members, to step forward and get involved.”

“We applaud Tyson Foods for supporting hunger relief in local communities. Together with com-mitted partners like Tyson Foods, we can provide food to children and families struggling with hun-ger,” said Bonnie Bellehumeur, president of Feeding America Eastern Wisconsin.

Feeding America Eastern Wisconsin distributes more than 15 million pounds of food a year to more than 1,000 pan-tries, meal programs and other nonprofit agencies that serve 330,000 people in eastern Wis-consin.

More information can be obtained at http://www.feed-ingamericawi.org.

(Continued from previous page)

lion reported for last year.“Forecast U.S. feed grain use

is lowered slightly to 333.5 mil-lion metric tons,” ERS noted. “Lower forecast corn food, seed and industrial use accounts for the fractional decline.”

“The projected index of grain-consuming animal units (GCAU) in 2011/12 is 93.3 million units, virtually unchanged from (No-vember) and slightly higher than last season’s 92.9 million,” the report said. “Feed and residual per GCAU is estimated at 1.37 tons, compared with 1.39 tons in 2010/11. In the major index com-ponents, GCAUs (were) increased (in December) for cattle on feed and lowered for broilers.”

ERS added that the December forecasts for turkeys and cattle were unchanged, and that broiler production was estimated lower in regard to the forecasted slow growth for average bird weights for the beginning of the year.

Corn prices“The forecast U.S. corn price

received by farmers for 2011/12 is reduced by (30 cents) per bushel on both the high and low end of the range to $5.90 to $6.90 per bushel, reflecting recent mar-ket trends and abundant foreign supplies of corn and feed quality wheat,” ERS noted.

“The season average price re-ceived by farmers in 2010/11 was $5.18 per bushel,” the report added. “Food, seed and industrial (FSI) use is lowered 5 million bushels due to lower expected first quarter use for high fructose corn syrup . . . due to the reduced export pace in recent months. The change in FSI is reflected in an increase in ending stocks to 848 million bushels, compared with (November’s) 843 million (bush-els).”

Total corn use for this year is estimated by the department at 12.6 billion bushels, which is down from the 13 billion bushels forecast for last year.

International“World 2011/12 coarse grain

production is projected up 9.4 million tons (for December) to a

record (1.15 billion tons), mostly due to higher corn production reported for China,” ERS said. “Foreign corn production is up 8.5 million tons to 554.8 million, foreign sorghum production is in-creased (600,000) to 55.3 million, and foreign barley and oats pro-duction each boosted (100,000) tons to 129.9 million and 22 mil-lion, respectively.

“China’s corn area has in-creased for eight consecutive years. Good returns for planting corn have supported corn replac-ing other crops, especially soy-beans.”

U.S. exportsExports for U.S. corn for 2011-

2012 are being estimated by ERS to total 41 million tons.

The report noted that No-vember corn export inspections, “reached 3.8 million, an increase of (500,000) tons over a year ago. As of Dec. 1, 2011, outstanding sales were 12.8 million tons, up 3 percent from the previous year.”

A decrease of 9 percent is be-ing estimated for this year from last year, a result of a decrease in

sales and shipments, the depart-ment said.

“Tight U.S. corn supplies, relatively high U.S. corn

prices, and competition from abundant feed-quality wheat in foreign markets are expected,” ERS noted.


l Using cephalosporin drugs in cattle, swine, chickens or turkeys that are not approved for use in that species (e.g., cephalosporin drugs intended for humans or companion animals);l Using cephalosporin drugs for disease prevention.The order does not limit the use of cephapirin, an older cephalo-

sporin drug that is not believed by FDA to contribute significantly to antimicrobial resistance.

Veterinarians will still be able to use or prescribe cephalosporins for limited extra-label use in cattle, swine, chickens or turkeys as long as they follow the dose, frequency, duration and route of admin-istration that is on the label.

Veterinarians may also use or prescribe cephalosporins for extra-label uses in minor species of food-producing animals such as ducks or rabbits.

“We believe this is an imperative step in preserving the effective-ness of this class of important antimicrobials that takes into account the need to protect the health of both humans and animals,” said Michael R. Taylor, FDA deputy commissioner for foods.

A comment period on the order will close on March 6, 2012. More information on the FDA order can be found at http://www.fda.gov/AnimalVeterinary/NewsEvents/CVMUpdates/ucm054434.htm

•Antibiotic(Continued from page 1)

•Outlook(Continued from page 1)

ST. LOUIS, Mo. — More than 7 bil-lion people inhabit planet Earth, and about 2 billion more will join within 40 years, according to the United Nations Popula-tion Division. While many decision mak-ers express concern about sustaining the population, often they forget to ask an im-portant question: Are U.S. farmers ready to produce the food needed to feed the growing population?

The United Soybean Board and soybean checkoff has responded with a resounding ‘yes,’ by funding soybean production re-search designed to help U.S. farmers grow as much as possible with as few resources needed.

“Soybean farmers must stay in tune with

what is going on in the United States in order to stay ahead of any problems, such as the growing population,” said Jason Bean, a soybean farmer from Holcomb, Mo., and USB director. “Finding ways to figure out how to get everything out of our soybeans in order to have the best yield is crucial for success.”

In order to stay ahead of the curve, much of the research USB funds focuses on creating new U.S. soybean varieties more resistant to the pressures from pests and diseases that decrease yield, the group noted.

“Every year, we do a major production research project in each region that allows us to figure out the No. 1 yield robber,”

Bean said. “Whether it is finding out how to resist pests, like aphids, stink bugs or soybean cyst nematodes, or determin-ing drought tolerance, checkoff-fund-ed research is intended to locate the problem, and then is shared with farm-ers across the United States.”

To help get this research into farm-ers’ hands, USB has established a pro-gram to help state soybean checkoff boards, land-grant universities and local Extension service staff share checkoff-funded research results with those who need it most. To date, 12 states participate in the program.

But informing U.S. soybean farm-ers is only one part of the equation.

Making sure consumers are informed about the process is important too, says Bean.

“In my opinion, it is very impor-tant for farmers to show consumers we take great pride in the product we produce,” he added. “It’s important for consumers to know farmers are doing everything possible to give them not only a high quantity, but a high-qual-ity product.”

USB is made up of 69 farmer-direc-tors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. More informa-tion can be obtained at http://www.unitedsoybean.org.

Soybean checkoff readies for the future

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Winchester MillThe Southern States Cooperative’s Win-

chester Mill (Winchester) in Winchester, Ky., is the runner-up for the 2011 Feed Mill of the Year. Constructed in 1976, the mill manufac-tures 73,000 tons of feed annually, at a 75 per-cent to 25 percent bag to bulk ratio, focusing primarily on pelleted and textured bag horse feeds, in addition to bags for dairy, beef, swine, horse, poultry, sheep, goat, rabbit and wildlife feeds.

Winchester is fully automated in all manu-facturing processes. Fully integrated PLC based controls assure accuracy, consistency and the integrity of all formula feeds and ingredients. The mill utilizes a bar code hand-add system to insure all micro nutrients and medications are accurately measured into formula feeds. In addition, the mill operates a stand-alone Computer Maintenance Management System. All equipment is bar coded and maintenance employees utilize PDA’s to perform preventive and work order based maintenance, an example of technology helping to streamline operations and insure equipment is maintained at peak performance.

Winchester has 29 production, maintenance and clerical employees, who work two shifts per day on a five day work week. The plant’s safety committee consists of six supervisory and non-supervisory employees on a rotating basis. Winchester has a written safety program, emergency plan and eight of its employees are certified in CPR. Annual training is also con-ducted in a number of safety areas, including rail car fall prevention and chemical handling.

“The phrase ‘you are as good as the people you have around you’ is something that rings true here at the Winchester plant, where the average employee tenure is over 20 years,” ex-plained plant manager Richard Sladic. “This fact illustrates the dedication to service, quality, employee engagement and safety that makes my job so rewarding. Southern States has a commitment to providing the highest quality bag and bulk feeding solutions to its farmer members that also parallels my personal com-mitment to excellence in the feed industry.”

The Winchester plant has not had a lost time accident in 794,437 hours (11.45 years). It was the first facility in Southern States Feed Division that initiated the Near Miss Program to monitor unsafe work conditions. The plant is certified annually by the Facility Certifica-tion Institute for compliance in both the Haz-ard Analysis and Critical Control Points and

AFIA’s Safe Feed/Safe Food Certification pro-grams. Winchester is fully compliant with the Bio Terrorism Act and has been inspected by both the FDA and Environmental Protection Agency within the past year.

Winchester employees are involved with several civic, community and religious as-sociations. This includes the local Youth 4-H and Prison Ministry as well as participating in fundraising events such as the Walk for the Cure and the Walk for the Poor. The mill also donates used mini pallets to Kentucky Fish & Game Commission, which is used as fish habi-tat for the state’s ponds and lakes.

The annual Feed Mill of the Year award recognizes overall excellence in feed manu-facturing operations. Increased safety, quality, regulatory compliance, operating efficienciesand overall industry awareness of food safety are among the criteria reviewed for each appli-cant. More than 80 feed facilities competed for this year’s award, an increase over last year’s entrants.

“The caliber of the top two plants made selec-tion the 2011 Feed Mill of the Year an extremely difficult decision,” explained AFIA’s Keith Ep-person, vice president of manufacturing and training. “Both mills should be commended for their commitment to safety and their commit-ment to the feed industry by continuously manu-facturing quality products.”

•Feed mill(Continued from page 2)

WASHINGTON — USDA’s Risk Management Agency (RMA) has announced a new pilot program of insurance for camelina beginning with the 2012 crop year.

Camelina is an oilseed crop with the potential to create new renewable energy markets in the U.S., generate rural jobs here at home and decrease Ameri-ca’s dependence on foreign oil. The new pilot program will be available in selected counties in Montana and North Dakota for the 2012 crop year, with a sales closing date of Feb. 1, 2012.

“The Obama administration is

committed to building new in-come opportunities for Ameri-ca’s farmers and ranchers, and by producing biofuels from a wide range of agricultural products, we can help promote economic opportunity in rural America,” said Agriculture Sec-retary Tom Vilsack. “This pilot program will help our farmers produce biomass which will be converted to renewable fuel and increase America’s energy independence, creating jobs and stimulating rural econo-mies across the nation.”

The camelina plan of insur-ance is Actual Production His-

tory, which insures a grow-er’s yield. The pilot product for camelina was developed through the 508(h) process and submitted by Great Plains Oil and Exploration LLC — The Camelina Co. and Crop Insur-ance Systems Inc.

Only spring-planted cameli-na grown under contract with a processor will be eligible for coverage. To be eligible, the contract must state: (1) the producer’s commitment to plant and grow camelina and to deliver the production to the processor, (2) the processor’s commitment to purchase all

production stated in the pro-cessor contract and (3) a base contract price not to exceed an amount specified in the Special Provisions. A single basic unit will be offered; multiple basic units or optional units are not available.

Insurable causes of loss will include: adverse weather, fire, wildlife, earthquake, volcanic eruption and insect and plant disease but not damage due to insufficient or improper appli-cation of pest or disease control measures.

Neither written agreements nor prevented planting will be

available for camelina. Cover-age levels offered will be from the catastrophic level to 65 per-cent.

Camelina, an oilseed, is a ro-tation crop for wheat that can be established on marginally productive land. It is an an-nual, short season plant. Bio-fuel from camelina is an ideal jet fuel substitute. USDA’s Agricultural Research Service scientists have long-term stud-ies underway to examine ways to use camelina as a bioenergy crop for producing jet fuel for the military and the aviation in-dustry. In addition, earlier this year USDA announced two Biomass Crop Assistance Pro-gram (BCAP) project areas de-voted to developing camelina as biofuel in several states, in-cluding Montana. USDA is also part of several partnerships to develop oilseeds and native and perennial grasses as a biofuels, including:

In 2010, USDA partnered with the Boeing Corp. and the Air Transportation Association on an initiative to bring sustainable and renewable aviation fuels to the marketplace.

In January, USDA and the De-partment of the Navy signed a memorandum of understanding (MOU) to encourage develop-ment and use of aviation biofu-els.

In August, USDA, Navy and the Department of Energy an-nounced a partnership to invest up to $510 million during the next three years in partnership with the private sector to produce advanced drop-in aviation and marine biofuels to power mili-tary and commercial transporta-tion. The initiative responds to a directive from President Obama issued in March 2011 as part of his Blueprint for A Secure En-ergy Future, the administration’s framework for reducing depen-dence on foreign oil.

Insurance pilot program offered for camelina


CalendarCompiled by Barbara Olejnik, Associate Editor

[email protected]

JAN 23-24 — UEP BOARD MTNG., OmniHotel & CNN Center, Atlanta, Ga. Contact: United Egg Producers, 1720 Windward Concourse, Suite 230, Alpharetta, Ga. 30005. Ph: 770-360-9220; [email protected]; http://www.unitedegg.com.

JAN 23-24 — ANIMAL AGRICULTURESUSTAINABILITY SUMMIT, Georgia World Congress Center, Atlanta, Ga. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401, [email protected], http://www.poultryegg.org, or American Feed Industry Association, 2101 Wilson Blvd., Suite 916, Arlington, Va. 22201, 703-524-0810, [email protected], http://www.afia.org.

JAN 23-27 — NPFDA ANNUAL CONV. &POULTRY SUPPLIERS SHOWCASE,Hyatt Regency, Atlanta, Ga. Contact: National Poultry & Food Distributors Association, 2014 Osborne Road, St. Marys, Ga. 31558. Ph: 770-535-9901, [email protected], http://www.npfda.org.

JAN 24 — NCC TECHNICAL &REGULATORYCOMMITTEE,Georgia World Congress Center, Atlanta, Ga. Contact: National Chicken Council, 1015 15th St., N.W., Suite 930, Washington, D.C. 20005. Ph: 202-296-2622; http://www.nationalchick-encouncil.cm; http://www.eatchicken.com.

JAN 24-25 — HATCHERY-BREEDERCLINIC, Georgia World Congress Center, Atlanta, Ga. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401; [email protected]; http://www.poultryegg.org,

JAN 24-26 — INTERNATIONAL POULTRYEXPO - INTERNATIONAL FEEDEXPO, Georgia World Congress Center, Atlanta, Ga. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401, [email protected], http://www.poultryegg.org, or American Feed Industry Association, 2101 Wilson Blvd., Suite 916, Arlington, Va. 22201, 703-524-0810, [email protected], http://www.afia.org.

JAN 25 — NCC MARKETINGCOMMITTEE, Georgia World Congress Center, Atlanta, Ga. Contact: National Chicken Council, 1015 15th St., N.W., Suite 930, Washington, D.C. 20005. Ph: 202-296-2622; http://www.nationalchick-encouncil.cm; http://www.eatchicken.com.

JAN 26 — NCC BOARD OF DIRECTORSMTNG., Georgia World Congress Center, Atlanta, Ga. Contact: National

Chicken Council, 1015 15th St., N.W., Suite 930, Washington, D.C. 20005. Ph: 202-296-2622; http://www.nation-alchickencouncil.cm; http://www.eatchicken.com.

JAN 29-31 — FMI MIDWINTEREXECUTIVE CONF., Hilton Orlando Bonnet Creek, Orlando, Fla. Contact: Food Marketng Institute, 2345 Crystal Drive, Suite 800, Arlington, Va. 22202-4813. Ph: 202-452-8444; [email protected]; http://www.fmi.org.

FEB 8-10 — POULTRY FOCUS ASIA2012, Queen Sirikit Center, Bangkok, Thailand. Contact: Positive Action Publications Ltd., P.O. Box 4, Driffield, East Yorkshire YO25 9DJ, England. Ph: +44 1377 241724; http://www.positiveaction.co.uk or http://www.nccexhibition.com.

FEB 15-18 — NTF ANNUAL CONV.,Tampa Marriott Waterside Hotel & Marina, Tampa, Fla. Contact: National Turkey Federation, 1225 New York Ave., N.W., Suite 400, Washington, D.C. 20005. Ph: 202-898-0100; [email protected]; http://www.eatturkey.com.

FEB 18-20 — BEGINNING FARMER& RANCHER CONF., Amway Grand Plaza Hotel & DeVos Place Convention Center, Grand Rapids, Mich. Contact: [email protected]; http://2012bfrconference.eventbrite.com.

FEB 19-21 — ANNUAL MEAT CONF.,Rosen Shingle Creek, Orlando, Fla. Contact: American Meat Institute, 1150 Connecticut Ave., N.W., 12th Floor, Washington, D.C. Ph: 202-587-4200; http://www.meatami.com.

FEB 22-23 — NPI ANNUAL CONV., NorfolkLodge & Suites, Divots Conference Center, Norfolk, Neb. Contact: Nebraska Poultry Industries Inc., University of Nebraska, 102 Mussehl Hall, P.O. Box 830721, Lincoln, Neb. 68583-0721. Ph: 402-472-2051; [email protected].

FEB 23-24 — USDA AGRICULTURALOUTLOOK FORUM, Crystal Gateway Marriott Hotel, Arlington, Va. Contact: http://www.gov/oce/forum.

FEB 23-25 — SGFA AND GFGA ANNUALCONV., Hyatt Regency Savannah, Savannah, Ga. Contact: Bonnie Holloman, Southeastern Grain & Feed Association and Georgia Feed & Grain Association, P.O. Box 58220, Raleigh, N.C. 27658. Ph: 919-855-8981; [email protected].

FEB 27-29 — PEPA ANNUAL CONV.,Sheraton Maui Resort & Spa, Maui, Hawaii. Contact: Pacific Egg & Poultry Association, 1521 I St., Sacramento, Calif. 95814. Ph: 916-441-0801; [email protected]; http://www.pacificegg.org.

FEB 28-March 18 — HOUSTON

LIVESTOCK SHOW & RODEO,Houston, Texas. Contact: Houston Livestock Show & Rodeo, P.O. Box 20070, Houston, Texas 77225-0070. Ph: 832-667-1000; [email protected]; http://www.hlrs.com.

MAR1-3 —ASA COMMODITY CLASSICCONV., Gaylord Opryland Resort, Nashville, Tenn. Contact: American Soybean Association, 12125 Woodcrest Executive Drive, Suite 100, St. Louis, Mo. 63141. Ph: 800-688-7692; [email protected]; http://www.soygrowers.com

MAR4-7 — FMI ANNUAL BUSINESSCONF., Orlando, Fla. Contact: Food Marketng Institute, 2345 Crystal Drive, Suite 800, Arlington, Va. 22202-4813. Ph: 202-452-8444; [email protected]; http://www.fmi.org.

MAR6-8 — AEB MTNG., Chicago, Ill. Ariz. Contact: American Egg Board, 1460 Renaissance Drive, Park Ridge, Ill. 60068. Ph: 847-296-7043; [email protected]; http://www.aeb.org.

MAR7-8 — ENVIRONMENTALMANAGEMENT SMNR., Doubletree Hotel, Nashville, Tenn. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401; [email protected]; http://www.poultryegg.org,

MAR12 — CPF WINTER BOARDMTNG., Doubletree Hotel, Modesto, Calif. Contact: California Poultry Federation, 4640 Spyres Way, Suite 4, Modesto, Calif. 95356. Ph: 209-576-6355; [email protected]; http://www.cpif.org.

MAR12-14—AFIASPRINGCOMMITTEEMTNGS./PURCHASING &INGREDIENT SUPPLIERSCONF., Omni Orlando Resort at Champions Gate, Orlando, Fla. Contact: American Feed Industry Association, 2101 Wilson Blvd., Suite 916. Arlington, Va. 22201. Ph: 703-524-0810; [email protected]; http://www.afia.org.

MAR13-14 - MPF ANNUAL CONV.,Saint Paul River Centre, St. Paul, Minn. Contact: Midwest Poultry Federation, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-682-5546l [email protected]; http://www.midwestpoultry.com.

MAR14 — BEAM ANNUAL MTNG., Saint Paul River Centre, St. Paul, Minn. Contact: Broiler & Egg Association of Minnesota, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-682-5546l [email protected]; http://www.midwestpoultry.com.

MAR14 — MTGA ANNUAL MTNG.,Saint Paul River Centre, St. Paul, Minn. Contact: Minnesota Turkey Growers Association, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-682-5546l [email protected]; http://www.midwest-poultry.com.

MAR15-16 — PHTQA ‘TRAIN THETRAINER’ MTNG., Saint Paul RiverCentre, St. Paul, Minn. Contact: Dr. Eva Waller-Pendleton, Poultry Handling & Transportation Quality Assurance coordinator, 100 Orchard Road, Animal Diagnostic Laboratory, Pennsylvania State University, University Park, Pa. 16802; 814-863-0837; eaw10psu.

edu; Registration: [email protected], http://www.midwest-poultry.com, or http://www.poultry-handling.org

MAR18-20 —NGFA ANNUAL CONV.,Charleston Place Hotel, Charleston, S.C. Contact: National Grain & Feed Association, 1250 I St., N.W., Suite 1003, Washington, D.C. 20005. Ph: 202-289-0873; [email protected]; http://www.ngfa.org.

MAR21-22—FEEDMILLMANAGEMENTSMNR., Doubletree Hotel, Nashville, Tenn. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401; [email protected]; http://www.poultryegg.org,

MAR29-30 — FLAX INSTITUTE CONF.,Doublewood Inn, Fargo,N.D. Contact: Flax Institute of the United States, P.O. Box 6050, Dept. 7670, North Dakota State University, Fargo, N.D. 58108-6050. Ph: 701-231-7122; [email protected].

APR13 — OPA CELEBRATIONBANQUET, Renaissance Columbus Downtown Hotel, Columbus, Ohio. Contact: Ohio Poultry Association, 5930 Sharon Woods Blvd., Columbus, Ohio 43229. Ph: 614-882-6111; [email protected]; http://www.ohiopoultry.org.

APR13-14 — GPF ANNUAL MTNG.,Brasstown Valley Resort, Young Harris, Ga. Contact: Georgia Poultry Federation, P.O. Box 763, Gainesville, Ga. 30503. Ph: 770-532-0473.

APR13-15 — ALABAMA CHICKEN& EGG FESTIVAL, Lions Club Fairgrounds, Moulton, Ala. Contact: Festival web site at http://www.ala-bamachickenandeggfestival.com.

APR16-18 — HUMAN RESOURCESSMNR., Sandestin Golf & Beach Resort, Destin, Fla. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401; [email protected]; http://www.poul-tryegg.org,

APR24-25 — PF LIVE PRODUCTIONSYMPM., Rogers, Ark. Contact: Poultry Federation, P.O. Box 1446, Little Rock, Ark. 72203. Ph: 501-375-8131; http://www.thepoultry-federation.com.

APR30-May 1 — FEDERAL FOODREGULATORY CONF., Washington, D.C. Contact: Susan Glenn, con-ference coordinator, Prime Label Consultants, 536 7th St., S.E., Washington, D.C. 20003. Ph: 202-546-3333; [email protected]; http://www.primelabel.com.

APR30-May 1 — I-RIM CONF., Hilton Fort Lauderdale Marina Resort, Fort Lauderdale, Fla. Contact: International Reflective Insulation Manufacturers (I-RIM), [email protected].

APR30-May 3 — AMI INT’L. MEATPOULTRY & SEAFOOD CONV.,Dallas Convention Center, Dallas, Texas. Contact: American Meat Institute, 1150 Connecticut Ave., N.W., 12th Floor, Washington, D.C. 20036. Ph: 202-587-4200; http://

www.meatami.comMAY1-3 — FMI EXHIBIT & EDUCATION

EVENT, Dallas Convention Center, Dallas Texas. Contact: Food Marketing Institute, 2345 Crystal Drive, Suite 800, Arlington, Va. 22202-4813. Ph: 202-452-8444; [email protected]; http://www.fmi.org.

MAY1-3 — UFPA UNITED FRESHMARKETPLACE & FRESHTECH,Dallas Convention Center, Dallas, Texas. Contact: United Fresh Produce Association, 1901 Pennsylvania Ave., N.W., Suite 1100, Washington, D.C. 20006. Ph: 202-303-3400; [email protected]; http://www.unitedfreshs.org.

MAY2-3 — STAKEHOLDERS SUMMIT,Arlington, Va. Contact: Animal Agriculture Alliance, 2101 Wilson Blvd, Suite 916B, Arlington, Va. 22201. Ph: 703-562-5160; http://www.animalagalliance.org.

MAY3-4 — POULTRY BREEDERS OFAMERICA NATIONAL BREEDERSROUNDTABLE, Airport Marriott Hotel, St. Louis, Mo. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401; [email protected]; http://www.poul-tryegg.org,

MAY7-9 — UEP LEGISLATIVE BOARDMTNG., Washington Court Hotel, Washington, D.C. Contact: United Egg Producers, 1720 Windward Concourse, Suite 230, Alpharetta, Ga. 30005. Ph: 770-360-9220; [email protected]; http://www.unitedegg.com.

MAY15-16 — TPF ANNUAL CONV.,College Station, Texas. Contact: Texas Poultry Federation, 595 Round Rock W. Drive, Suite 305, Round Rock, Texas 78681. Ph: 512-248-0600; [email protected]; http://www.texaspoultrly.org.

MAY16-17 — POULTRY PROCESSORWORKSHOP, Marriott Marquis, Atlanta, Ga. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770-493-9401; [email protected]; http://www.poultryegg.org,

MAY21-24 — NATIONAL EGG QUALITYSCHOOL, Indianpolis, Ind. Contact: Deanna Baldwin, Program Manager, Maryland Department of Agriculture, Food Quality Assurance Program, 50 Harry S. Truman Pkwy., Annapolis, Md. 21401. Ph: 410-841-5769; [email protected].

JUN 6-8 — POULTRY INDUSTRYNATIONAL SAFETY CONF.,Sawgrass Marriott Resort, Ponte Vedra Beach, Fla. Contact: Kristi Campbell, 404-407-8822 or [email protected].

JUN 8-9 — AP&EA GOLF TOURNEY &EVENING OF FUN, Birmingham, Ala. Contact: Alabama Poultry & Egg Association, P.O. Box 240, Montgomery, Ala. 36101. Ph: 334-265-2732; http://www.alabama-poultry.org.

JUN 11-14 — AFIA FEED INDUSTRYINSTITUTE, Westin St. Louis, St. Louis, Mo. Contact: American Feed Industry Association, 2101 Wilson Blvd., Suite 916, Arlington, Va. 22201, 703-524-0810, [email protected], http://www.afia.org.


NuggetsCompiled by Barbara Olejnik, Associate Editor

[email protected]

AFC contest seeks agricultural photos

MOULTON — Amateur pho-tographers are invited to submit photographs of agricultural inter-est for the Alabama Farmers Co-op (AFC) 2012 Photo Contest. The contest is held in conjunc-tion with the Alabama Chicken and Egg Festival set for April 13-15 at the Lions Club Fairgrounds in Moulton.

Photos must be related to agriculture from any location within the state of Alabama. The competition is divided into four themed categories: Life on the Farm, Livestock, Crops and Agriculture Families. Only 8x10 color photos will be accepted and entries using a portrait for-mat will be considered for use on the cover of Farming News,a publication of the AFC.

Prizes are awarded for each category with $125 for first place, $75 for second place and $50 for third place. In addition, each participant receives two free tickets to the 2012 Alabama Chicken & Egg Festival and all entries will be on display during the three day event.

“The Alabama Farmers Co-op is excited to partner with the Alabama Chicken and Egg Fes-tival to offer people of all ages a chance to show what they love most about farming in Alabama,” said Jim Allen, AFC’s director of advertising and public relations.

Contest rules and entry form can be obtained at http://www.

alabamachickenandeggfestival.com, click on “Contests” or call Event Coordinator Vicki Morese at 256-905-0700. There is no en-try fee and the deadline for en-tries is March 20.

The Alabama Chicken and Egg Festival is an interactive agricultural experience with food vendors featuring chicken entrees prepared in a variety of ways, and live entertainment by popular regional bands and local favorites. Admission to the festi-val is $3 for adults and children 5 and under are admitted free.

Highlights include a chicken clucking contest, egg toss com-petition, eating contests and the “Down on the Farm” area featur-ing agriculture exhibits, antique tractors and southern folk life artists such as quilters, saddle makers, farriers, potters, black-smith and basket and broom makers. Other activities include a juried art show Rooster Call and Rooster Hall of Fame, an egg roulette competition, live chickens in a variety of sizes and colors, Motorcycle Chicken Run and Little Chick Pageant.

USDA ag forum celebrates 150 years

WASHINGTON — USDA’s Agricultural Outlook Forum 2012 will be held Feb. 23-24 at the Crystal Gateway Marriott Hotel in Arlington, Va.

The theme for the forum is

“Moving Agriculture Forward: USDA — Growing, Innovating and Celebrating 150 Years.”

U.S. Secretary of Agriculture Tom Vilsack will be the keynote speaker and will also moderate a panel on “Agriculture: Visions of the Future.” Panel members will be former secretaries of ag-riculture: Ed Schafer, 2008-09; Mike Johnanns, 2005-08; Ann M. Veneman, 2001-05; Daniel Glickman, 1995-2001; Mike Espy, 1992-95; Clayton Yeutter, 1989-91; John Block, 1981-86; and Robert Bergland, 1977-81.

Other speakers include Kath-leen, Merrigan, deputy secretary of agriculture; and Joseph Glau-ber, USDA chief economist.

There will also be concurrent sessions on the following top-ics: food prices & farm outlook, international, renewable energy, agricultural science, conserva-tion, rural development, educa-tion & cooperation, climate & weather, commodities, financial markets, food safety and local foods.

More information and registra-tion is available at http://www.usda.gov/oce/forum.

Nebraska groups plan convention

LINCOLN — The 42nd annual Nebraska Poultry Industries con-vention will be held Feb. 22-23 at the Norfolk Lodge & Suites, Divots Conference Center, in Norfolk, Neb.

Topics for educational ses-sions will include an update on the Alliance for the Future of Ag-riculture in Nebraska (A-FAN), the weather outlook for 2012, environmental regulations, to-morrow’s pricing opportunities, enriched colony housing and leg-islative & regulatory challenges in an election year.

Annual meetings with election of officers and directors will be held by the Nebraska Poultry Improvement Association, Ne-braska Egg Council and the Ne-braska Turkey Federation.

The Nebraska Allied Poultry Industries will also an annual meeting and banquet. The Ne-braska Poultry Industries will have a quarterly meeting to in-clude election of officers and directors.

More information can be ob-tained by contacting the Nebras-ka Poultry Industries, University of Nebraska, 102 Mussehi Hall, P.O. Box 830721, Lincoln, Neb. 68583-0721; 402-472-2051; [email protected]; http://www.nepoultry.org.

AFIA and K-State offer education programs

ARLINGTON — The American Feed Industry Association, along with the Department of Grain Sci-ence and Industry at Kansas State University, are again partnering to offer educational programs in 2012.

“Establishing a HACCP Pro-gram for the Feed Industry” focus-es on the development of a Hazard Analysis Critical Control Points (HACCP) plan for all sectors of the feed industry, including feed mill managers, quality assurance personnel and ingredient suppliers.

The three-day short course will be held Feb. 27-March 1, 2012, in Manhattan, Kan. The registration fee is $475. Due to limited space, early registration is recommended. A second HACCP course is sched-uled for April 9-13, 2012.

K-State, in partnership with the AFIA and the National Grain and Feed Association, has held Feed Manufacturing Short Courses since 1976. These courses are taught by individuals from K-State and with-in the feed and allied industries and provide in-depth training on all

aspects associated with feed manu-facturing.

The 2012 Distance Education Program — “AFIA 501-Funda-mentals of Feed Manufacturing” — was developed by the feed technol-ogy group in K-State’s Department of Grain Science and Industry. The program will provide participants with an in-depth understanding of feed manufacturing. The benefits of e-learning, a new method of delivery, and mobile learning tech-nologies have proven beneficial in many industries.

The five-week course, offered completely online from March 5-April 6, 2012, is $499 for AFIA members and $685 for non-mem-bers. Course size is limited to 50 participants so early registration is recommended.

Registration for both programs is available at http://www.afia.org under “Upcoming Events.” Infor-mation about the content of the programming can be obtained by contacting Keith Epperson, AFIA’s vice president of manufacturing and training, at [email protected] or 703-558-3568.

Specific questions about the HACCP program should be di-rected to K-State’s Anita McDif-fett at [email protected] or 785-532-4080. More information on the Distance Education Program is available by contacting Brandi Miller at [email protected] or 785-532-4053.

AFIA, based in Arlington, Va., is devoted exclusively to representing the business, legislative and regu-latory interests of the U.S. animal feed industry and its suppliers. Members include more than 500 domestic and international compa-nies and state, regional and national associations. Member-companies are livestock feed and pet food manufacturers, integrators, phar-maceutical companies, ingredient suppliers, equipment manufacturers and companies which supply other products, services and supplies to feed manufacturers. More than 70 percent of the feed in the U.S. is manufactured by AFIA members.

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ATHENS, Ala. — A newly expanded Aviagen poultry feed mill in Athens, Ala., is producing 30 percent more feed while consuming far less energy, reduc-ing its carbon emissions by hundreds of tons and cutting its annual utility expenses by more than $160,000. The experience of the Aviagen mill offers an example of how new technology and sustainable practices can benefit both the environment and the bottom line.

Aviagen, a leading poultry breed-ing company, completed a multi-mil-lion dollar expansion of its feed mill in June of 2010. The expansion added production capacity with new equip-ment and procedures that ensure the biosecurity of pelletized and crumbled feed for Aviagen’s Pedigree operation in Tennessee and to 115 Aviagen poul-

try farms in Alabama.Now with a full year of operation be-

hind it, the mill is reporting its results: Even though the facility has increased feed production by more than 30 per-cent, Aviagen’s more efficient process-ing equipment has allowed it to reduce its electric, natural gas and diesel costs by $169,836 and cut its overall carbon dioxide (CO²) emissions by 615 tons.

To bring those carbon savings down to earth, a 615-ton reduction in CO² is like pulling 126 passenger cars (or 92 pickups and SUVs) off the road for a year, according to Environmental Pro-tection Agency estimates.

“Our Athens mill expansion is achieving all our goals,” said Richard Obermeyer, Aviagen’s director of feed production. “We grew capacity, en-

sured biosecurity and cut costs. But the added benefit is that we enhanced the sustainability of our feed mill opera-tion by reducing energy consumption across the board.”

Electric savingsElectricity powers nearly everything

at the Athens facility, which requires more than 2 million kilowatt hours (KWH) of electricity a year. After the upgrade, consumption dropped 15 per-cent, cutting the mill’s overall electri-cal costs by $31,126. Factoring in U.S. Energy Information Administration (EIA) estimates that generating a KWH of electricity in Alabama produces 1.31 pounds of CO², Aviagen’s carbon foot-print on electricity use alone plummet-ed by 238.7 tons during the first year

of operation.

Natural gas savingsAviagen has reduced its natural gas

consumption in large part by mak-ing innovative use of the 360-degree exhaust from a natural gas-powered steam generator. By redirecting the exhaust from the steam generator, Aviagen avoids having to pay for heat needed to drive up temperatures dur-ing the conditioning stage, an essen-tial phase in feed production that kills pathogens and creates starch bonds needed to produce a sturdy pellet. As a result, the mill uses 12 percent less steam and has cut its natural gas con-sumption by 28 percent — resulting in

Aviagen’s poultry feed mill is energy-smart

See Aviagen, Page 13

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Certification program (SF/SF). FDA has publically commented that SF/SF is a reli-able tool for companies to use when work-ing toward FSMA compliance, and AFIA is working to obtain official FDA recognition of this third party certification program. To learn more about SF/SF, please visit http://www.safefeedsafefood.org.

Commodity pricesLivestock and poultry producers are fac-

ing corn prices between $6 and $7, which is significantly straining their profitability. As you are all too familiar, the current price for corn has more than doubled since 2006 and the price of soybeans has almost doubled. Unfortunately, there is no sign of relief in the short-term. The increased prices, and in some cases, shortages, are mainly the result of increased global demand, reduced stocks-to-use ratios, weather effects on global pro-duction, increased speculation by financial markets in ag commodities and the ever-in-creasing demands of the biofuels industry.

While several of these factors are not within our control, AFIA has been busy ad-dressing two factors we can influence. AFIA played an active role advocating for the es-tablishment of the Commodity Futures Trad-ing Commission’s commodity trading rules which created speculative position limits on futures and swaps, eliminating an exemp-tion Wall Street banks have enjoyed since 2000; the other clarified rules for derivative

clearing organizations. These rules will bring about much needed transparency while sta-bilizing the markets, which should be based on actual supply and demand and not due to Wall Street interference.

One of the reasons for the increased price of corn and other feed commodities is be-cause those ingredients are vital to the bio-fuel and ethanol industry, leaving America’s farmers and ranchers scrambling to afford animal feed. AFIA established an Energy Policy Task Force in 2008 to address this issue, and to urge the government to recog-nize that the nation’s food security is at least equally as important as energy security. In this light, AFIA recommends that:l The biofuels industry should be driven

by market demand rather than government mandates and supports. At a minimum, a trigger mechanism should be used to tempo-rarily reduce the Renewable Fuel Standard when stocks-to-use rations fall below 10 percent. Working with the animal produc-tion associations, this has been included in proposed legislation supported by AFIA.l USDA should release all non-environ-

mentally sensitive acres from the Conser-vation Reserve Program without penalty to increase viable production acreage and help to rebuild much needed stocks.l The U.S. must develop a comprehensive

energy policy that reduces the U.S. depen-dence on foreign energy, which goes well beyond biofuels production, and supports all viable opportunities for increased domestic

production, alternative energy sources and conservation.

ElectionsConsumers are finding it difficult to han-

dle the price fluctuations and are looking to the government for answers, especially after the highly-touted Joint Committee on Deficit Reduction failed in its efforts. 2012 is an election year, and the same con-sumers who are struggling to feed their families — and the farmers and ranchers who are struggling to feed their animals — are aware more than ever how Capitol Hill’s inaction impacts them.

One of the critical items that the “Su-per Committee” left hanging in the deficit reduction failure is the 2012 Farm Bill. Every Poultry Times reader is affected, as the Farm Bill sets nation farm and food policy every five years. We desperately need this administration and Congress to attack the issues now, not in 2013!

In conclusion, in a time of increased food and feed prices, no one is safe. This November, you will have a chance to make your voice heard and I encourage you to vote for the candidate best for you and your family. Learn the issues now and make your voice heard every day. You’re your help, AFIA will continue to serve as the voice of the total feed industry and for you and for the future of our industry.

•Newman(Continued from page 4)

$75,510 in savings annually. Because Aviagen reduced its gas consumption by 54,665 hundred cubic feet (CCF) over the year, the company in turn reduced its carbon emissions by 333 tons, according to metrics established by the Carbon Dioxide Information Analysis Center at Oak Ridge National Laboratory.

Diesel fuel savingsThe Athens mill today produces pellets that

are denser, by about 12 percent, than they were prior to the upgrade. Denser pellets allow Avia-gen trucks to deliver more feed per load — 2.22

tons more, in fact. And that means fewer trips in Aviagen’s diesel-powered semi-trailer trucks. During the mill’s first year after the upgrade, the company reduced its total truck load count by 236, resulting in a total fuel savings of $63,200. And by driving 17,313 fewer miles, Aviagen re-duced its carbon emissions by another 43 tons, based on EIA estimates.

“Minimizing the environmental impact of our feed production demonstrates that Aviagen takes sustainability seriously,” added Obermeyer. “Cer-tainly, we’re saving money compared to our ener-gy expenses from last year. Also by reducing our carbon emissions so dramatically, we’re helping

•Aviagen(Continued from page 12)

WASHINGTON — Retail food prices at the supermarket declined slightly during the fourth quarter of 2011, according to the latest Ameri-can Farm Bureau Federation Mar-ketbasket Survey.

The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $49.23, down $3.89 or about 7 percent compared to the third quarter of 2011. Of the 16

items surveyed, 14 decreased and two increased in average price compared to the prior quarter. The overall basket of foods was up about 5 percent compared to one year ago.

“Since about the last quarter of 2010, we have seen consistently higher prices quarter-to-quarter on a broad range of marketbasket items,” said AFBF senior economist John Anderson. “With this survey, that trend appears to have reversed. While the marketbasket price was still higher year-over-year, the pull-back from recent highs on most of the items in the basket suggests that food price inflation is slowing down substantially.”

Meat and dairy products ac-counted for about half of the quar-ter-to-quarter retail price decrease. Sliced deli ham decreased 74 cents to $4.69 per pound, shredded ched-dar decreased 38 cents to $4.32 per pound, bacon decreased 36 cents to $4.05 per pound, sirloin tip roast dropped 13 cents to $4.15 per pound, ground chuck dropped 10 cents to $3.17 per pound, boneless chicken breasts decreased 9 cents to $3.24 per pound and eggs dropped 6 cents to $1.72 for one dozen.

The average price for a dozen “cage-free” eggs was $2.97, down 13 cents compared to the prior quarter but 75 percent higher than regular eggs. Compared to a year ago (fourth quarter of 2010), regu-lar eggs increased 8 percent while “cage-free” eggs decreased 2 per-cent.

Other items that decreased in price compared to the third quar-ter were Russet potatoes, down 68 cents to $2.75 for a 5-pound bag; Red Delicious apples, down 43 cents to $1.40 per pound; flour, down 34 cents to $2.38 for a 5-pound bag; vegetable oil, down 25 cents to $2.96 for a 32-ounce bottle; bagged salad, down 25 cents to $2.48 for a 1-pound bag; orange

Retail food pricesmoderate slightly

See Prices, Page 16


Industry Stock ReportThe following chart provides an annual high and a comparison of recent activity of major poultry company stocks.

Company Annual High Jan. 4 Jan. 11

Cal-Maine 37.67 36.51 36.06Campbell Soup 35.66 32.73 32.27ConAgra 27.03 26.51 26.88Hormel 30.50 29.07 29.18Pilgrim’s Pride 8.61 5.32 5.54Sanderson Farms 53.22 47.78 47.41Seaboard 2705.00 2022.00 1896.00Tyson 21.06 20.37 19.74

(Courtesy: A.G. Edwards & Sons Inc.) Turkey MarketsWeighted avg. prices for frozen whole young turkeys

Weighted average (cents/lb.) F.O.B. shipper dock

National Week ending Jan. 6 Last year

Hens (8-16 lbs.) 101.15 85.50Toms (16-24 lbs.) 101.27 85.71Week ending Dec. 30 Dec. avg.Hens (8-16 lbs.) 100.25 106.54Toms (16-24 lbs.) 102.25 107.01

Nat’l. Broiler Market:(Jan. 11): Whole broiler/fryer pric-es are trending steady to instances weak in the Midwest, steady else-where. Offerings are light to heavy,

mostly light to moderate for cur-rent trade needs. Retail demand is light to instances good, best where promotions are planned or in prog-ress. Foodservice demand is light to moderate with some finding a normal slowing in buyer interest.

Floor stocks were balanced to long. Prices for wings and bone-in breasts were trending firm to higher and continue to command premiums. All other parts are steady to at least steady. Offerings of wings and bone-less/skinless breasts are light and held with confidence. Remaining parts are moderate. Market activ-ity is mostly moderate. In produc-tion areas, live supplies are moder-ate at mixed, but mostly desirable weights.

Parts:Georgia: The f.o.b. dock quoted prices on ice-pack parts based on truckload and pool truckload lots for the week of Jan. 11: line run tenders $1.93½; skinless/boneless breasts $1.51½; whole breasts 85¢; bone-

less/skinless thigh meat $1.22½;thighs 71¢; drumsticks 66½¢; leg quarters 53½¢; and wings $1.77½.

Fowl:Jan. 6: Live spent heavy fowlFinal prices at Farm Buyer Loading (per pound): range 8¢-14½¢

National Slaughter:Broiler: Estimated slaugh-ter for week ending Jan. 14 is 154,989,000.Actual slaughter for the week end-ing Jan. 7 was 134,036,000.Heavy-type hen: Estimated slaugh-ter for the week ending Jan. 14 is 1,492,000.Actual slaughter for the week end-ing Jan. 7 was 1,355,000.

Light-type hen: Estimated slaugh-ter for the week ending Jan. 14 is 1,742,000. Actual slaughter for the week ending Jan. 7 was 1,457,000. Total: Week of Jan. 14: 158,223,000. Week of Jan. 7: 136,848,000.

Estimates:

The estimated number of broiler-fryers available for slaughter the week ending Jan. 14 is 150.3 mil-lion head compared to 151.4 million head slaughtered the same week last year.

For the week of Jan. 21, 2012, the estimated available is 152.9 million head, notes the USDA’s Agricultural Marketing Service, Poultry Programs, Market News & Analysis in Washington, D.C.

Grain PricesOHIO COUNTRY ELEV. Dec. 29 Jan. 5 Jan. 12 No. 2 Yellow Corn/bu. $6.42 $6.58 $6.48Soybeans/bu. $11.68 $11.90 $11.60(Courtesy: Prospect Farmers Exchange, Prospect, Ohio)

Broiler/Fryer MarketsUSDA Composite Weighted Average

For week of: Jan. 9 81.33¢For week of: Jan. 2 81.70¢ Chi.-Del.-Ga.-L.A.-Miss.-N.Y.--S.F.-South. StatesFor delivery week of: Dec. 26 Jan. 9 Chicago majority 72--76¢ 72--76¢Mississippi majority 75--90¢ 82--86¢New York majority 76--79¢ 76--79¢ For delivery week of: Dec. 28 Jan. 11Delmarva weighted average 66--95¢ 66--96¢Georgia f.o.b. dock offering 90.00¢ 90.25¢Los Angeles majority price 99.00¢ 99.00¢San Francisco majority price 99.50¢ 99.50¢ Southern States f.o.b. average 55.40¢ 56.03¢

Broiler Eggs Set/Chicks Placed in 19 StatesEGGS SET (Thousands) CHICKS PLACED (Thousands)

AlaArkCa,Tn,WvDelFlaGaKyLaMdMissMo.N.C.OklaPaS.C.TexVa

19 StatesTotalPrev. year% Prev. yr.

Dec. 17

27,90420,03810,1903,1241,35131,8467,7153,4097,12118,3377,94119,7076,8023,9275,50914,3535,813

195,087205,187

95

Dec. 24

27,53320,12111,1263,1261,34931,6797,4993,3647,48318,2667,94519,7676,7103,7695,36213,7116,041

194,851205,240

95

Dec. 31

27,54920,28710,7093,2321,34731,8397,5503,3487,44717,7637,43319,9276,2683,8125,16413,8875,909

193,471203,224

95

Jan. 7

27,12620,08210,6193,2651,35131,4307,6353,3647,36417,5737,85319,7726,5853,8185,25014,0895,694

192,870205,419

94

Dec. 17

19,98519,20110.,8214,4391,07327,4115,5582,9556,26115,1335,89515,2394,1723,1144,56512,1384,571

162,531170,078

96

Dec. 24

20,58819,33310,6893,35596427,6176,0152,9726,66715,5905,73415,7294,2643,1964,18311,6674,624

163,187168,134

97

Dec. 31

20,81120,37810,3394,3851,16026,8326,3782,9435,96815,4075,00415,6973,7463,1344,11511,8484,710

162,855168,813

96

Jan. 7

20,14319,2969,5693,9521,16027,0276,0982,9875,47415,5275,55415,4964,0423,2754,82811,9415,698

162,067168,417

961/Current week as percent of same week last year.

Egg MarketsUSDA quotationsNew York cartoned del. store-door: Jan. 4 Jan. 11Extra large, down 24¢ $1.28--$1.32 $1.04--$1.08 Large, down 24¢ $1.26--$1.30 $1.02--$1.06 Medium, down 11¢ 99¢--$1.03 88--92¢Southeast Regional del. warehouse: Jan. 4 Jan. 11Extra large, down 31¢ $1.39--$1.58 $1.08--$1.43Large, down 31¢ $1.39--$1.57¼ $1.08--$1.39Medium, down 15¢ 98¢--$1.09¼ 83--98½¢

MarketsCompiled by David B. Strickland, Editor

[email protected]

USDA Shell EggsAMS weekly combined region shell egg pricesAverage prices on sales to volume buyers, Grade A or better, White

eggs in cartons, delivered warehouse, cents per dozen.Jan. 6 Extra Large Large MediumRegions:Northeast 144.50 144.00 104.00Southeast 150.50 148.50 104.00Midwest 143.50 141.50 98.50South Central 153.50 153.50 107.50Combined 148.26 147.20103.68Computed from simple weekly averages weighted by regional area populations


AMERICANEGG BOARDHOTLINE

AEB Hotline appears regu-larly in Poultry Times and provides an update on pro-grams and services provid-ed for egg producers by the American Egg Board. De-tails on any item mentioned may be obtained by contact-ing AEB at 1460 Renaissance Dr., Park Ridge, Ill. 60068. Phone: 847-296-7043.

l The Egg Nutrition Cen-ter (ENC) recently hosted a roundtable in October to discuss obesity and nutri-tion in children. Participants included research and clini-cal experts from Harvard, University of Illinois and University of Missouri and two registered dietitians — a school nutrition director and a private-practice practitio-ner. The discussion covered strengths and gaps in cur-rent research, nutrition in schools, counseling strate-gies and overall nutrition is-sues. ENC plans to use some of the valuable information received during this round-table for creating the ENC-Teacher Exchange Program.l AEB’s efforts to reach

Quick Service Restaurants has contributed greatly to the dramatic growth in egg servings and egg menu im-portance in this segment. In the last year alone, year ending August 2011, 4.2 bil-lion servings of eggs have been seen in QSRs at Morn-ing Meal, with 631 million more egg servings since

2006. Menu importance of eggs has also increased by 10 percent, from 39 in 2006 to 43 in 2011.l Designed for the state

promotional groups, AEB completed turnkey kits for the Good Egg Project (GEP). Gathering materi-als most commonly used at GEP breakfasts, AEB pulled together these items states use. Each kit includes talk-ing points and key facts for the consumer. States can spread the GEP messages through small or large events as the turnkey events in the kit were designed to fit vari-ous budgets.l AEB’s relationship with

the editorial staff of ingre-dient supply press has gar-nered more than 30 mentions of positive egg information or availability of AEB re-sources. Depending on the topic of the editorial AEB consults with appropriate experts, such as American Institute of Baking for a fea-ture discussing eggs’ role in gluten-free formulations.l In an effort to reach

even more egg producers with information about how their checkoff dollars are being spent, AEB launched AmericanEggBoardBlog.org to communicate quick pro-gram updates. Please book-mark the site and check back often.

Obituary

Jack (Jacob) DeWittZEELAND, Mich. — Jack (Jacob) H. DeWitt,

100, co-founder of Big Dutchman Inc., died Jan. 6 at his home.

DeWitt, along with his brother Dick, founded Big Dutchman Inc., a world-wide supplier of au-tomatic poultry equipment now headquartered in Germany. In 1962, the company was the recipient of a service award from the U.S. Department of Commerce for contributions to foreign trade. The company was again recognized by the federal gov-ernment in 1964, when the Presidential “E” award was presented for the company’s outstanding con-tribution to the U.S. Export Expansion Program. Big Dutchman was the first company in the poultry industry to receive the award.

After selling Big Dutchman in 1968, Jack and Dick received the Distinguished Service to Ag-riculture award from Michigan State University. Jack went on to invest in Biotec Inc., a Zeeland-based manufacturer of operatory furnishings and equipment for dental offices. Jack’s role at Biotec also included a stint as owner/operator and con-tinued with his service on the company’s board of

directors and as part-owner.Jack DeWitt graduated from Hope College in

Holland with a major in history. He was a long-time president of the college’s Second Century Club. He was a recipient of the college’s Distin-guished Alumnus award in 1974 and was a princi-pal donor in the construction of the DeWitt Student and Cultural Center on Hope’s campus.

He was a charter member of the Zeeland Lions Club, and a member of Second Reformed Church in Zeeland, where he served as an elder. He served in the U.S. Army Medical Corps during World War II.

Survivors include his wife, Marlies; four chil-dren, Karen DeWitt, Tom and April DeWitt, Sabina and Andrew Otteman and John DeWitt; 11 grand-children; five great-grandchildren and one great-great grandchild.

NOTICE: Madeline Perdue, former wife of Per-due Farms founder Frank Perdue and mother of Jim Perdue, the company’s current chief executive, died Dec. 28, 2011, at her home in Salisbury, Md. She was 91.

Index of Advertisers

Agrifan, 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-236-7080; www.envirofan.com

American Protein, 8D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.americanproteins.com

Biomune, Cover III . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-846-0230; www.biomunecompany.com

Danisco, 8C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8314-771-7766; www.danisco.com/animalnutrition

Farm Alarm, 8G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-407-5455; www.farmalarm.com

FPM, 8G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402-729-2264; www.fpmne.com

Lee Energy, 8A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.leeenergysolutions.com

McNeely, 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-433-8407

Pfizer Animal Health, Cover IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.pfizerglobalpoultry.com

Preserve, Cover II, 8E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-995-1607

Star Labs, 8G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-894-5396; www.primalac.com

Synergy, 8H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 866-743-8573; www.syntrx.net

WeighTech, 8G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .800-457-3720; www.weightechinc.com


small intestine with the flow of intestinal contents. Diets supplemented with MOS sig-nificantly impact the chicken’s intestinal microflora and re-duce susceptibility of S. enter-itidis colonization (Fernandez et al., 2002).

Enzymes are widely used to-day to increase the availability of a number of nutrients such as phosphorus, protein, amino acids and energy. Enzymes can also be an effective tool in maintaining a healthy gut. The beneficial affects of utiliz-ing enzymes is likely the re-sult of an increase in digestive efficacy resulting in a change in quality and quantity of sub-strates for the host and micro flora. Short change fatty acids produced by the digestion of fiber can be a food source for certain beneficial bacteria.

This in turn can increase the competitive nature of those bacteria to foster a positive environment in the gut. Un-published research by Novak

and Sun utilizing a commer-cially available feed grade enzyme revealed an increase in the relative amounts of bi-fidobacteria (beneficial) while reducing clostridia perfringens in the gastrointestinal tract of broilers.

Organic acids (individual and blends - OA) have been evaluated and are reported to have an affect on microbial populations in the gastrointes-tinal tract and may be an option when feeding animals with-out AGPs. Dibner and Buttin, 2002 reviewed the use of OA in poultry feeds and reported OA can reduce acid-intolerant bacterial species such as E. coli, salmonella and campylo-bacter, but the variability as-sociated with detecting a posi-tive affect of their use is much larger compared to antibiotics and needs further evaluation.

Phytogenic feed additives are plant-derived products used in animal feeds to improve or maintain performance of live-stock animals. To further clas-sify these plant-derived prod-

ucts, they can be described with respect to their origin and processing. Such as: herbs (flowering, nonwoody and nonpersistent plants), spices (herbs with an intensive smell or taste commonly added to hu-man food), essential oils (vola-tile lipophilic compounds de-rived by cold expression or by steam or alcohol distillation), or oleoresins (extracts derived by nonaqueous solvents) (Win-disch and co workers, 2008). As noted by the increase in scientific publications since 2000, this group of feed ad-ditives has gained increasing interest for use in swine and poultry feeds.

This increase in interest is probably due to the ban of AGP in Europe in 1999. Mechanisms of improved per-formance determined thus far is through amelioration of feed properties, promotion of the animals’ production per-formance and improving the quality of food derived from those animals.

There are a number of things to evaluate when developing a non AGP program. In the poultry and swine industry, we need to move toward a bet-ter understanding of the bac-terial populations in the lower gastrointestinal tract to further develop feeding programs to reduce the loss in production without the use of an AGP. We need to learn how to feed the bacteria to work for the ani-mal, not against it.

Lastly, a combination of aforementioned products and improvements in management, vaccination programs and/or genetics will be most effec-tive in maintaining the growth and efficacy of poultry in the future.

•Novak(Continued from page 5)

juice, down 11 cents to $3.17 for a half-gallon; and toasted oat cereal, down 10 cents to $3.07 for a 9-ounce box.

Items that increased in price compared to the third quarter were: whole milk, up 10 cents to $3.76 per gallon; and bread, up 4 cents to $1.92 for a 20-ounce loaf.

“With consumer confidence still a little shaky closing out the year, it appears that retailers are holding the line on food prices as much as pos-sible,” Anderson explained. “Stabilizing energy prices this past quarter also may have helped take some of the pressure off of processor and re-tailer margins.”

The year-to-year direction of the Marketbasket Survey tracks with the federal government’s Consumer Price Index report for food at home. As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped.

“In the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on aver-age. Since then, that figure has decreased steadily and is now about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Anderson said. USDA’s new Food Dollar Series can be found online at http://www.ers.usda.gov/Data/FoodDollar/app/.

Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $49.23 marketbasket would be $7.88.

AFBF, the nation’s largest general farm organization, has been conduct-ing the informal quarterly Marketbasket Survey of retail food price trends since 1989. The mix of foods in the marketbasket was updated during the first quarter of 2008.

According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world. A total of 53 shoppers in 18 states participated in the latest survey, conducted at the end of October/early November.

•Prices(Continued from page 13)

Have you thought about tomorrow?

Together, beyond animal health

The animal health industry has a key role to play in re-thinking the way we

approach the world’s health. Whether it’s serving the needs of a pet owner in

a growing city or working on ways to feed a global population of nine billion

by 2050, our industry is an essential part of addressing global issues. At Ceva,

we’re committed to meeting these challenges and together – with you –

we will help build a healthy new world.


Poultry Times January 16, 2012 Issue

Documents

Transcript of Poultry Times January 16, 2012 Issue