2009 International Egg Commission (IEC) Marketing & Production Conference

Vancouver hosted the IEC’s annual Conference earlier this month. The IEC is the only global network for the egg industry and was established in Bologna, Italy in 1964. Approximately 450 Delegates and Associate Members from 55 member countries were in attendance, the largest IEC gathering to date. Many CPEPC members from both Egg Sectors and Associate Members took advantage of the meeting being held in Canada and attended. As the Conference title suggests, the sessions focused on marketing and production, with a focus on the European Union’s (EU) shift away from conventional cage production. As of January 1, 2012 the EU ban on conventional cage production comes into effect. Even though some EU countries such as Austria have already banned conventional cage production, delegates have learned that EU egg producers still have close to 60% of layers in conventional cages. Many EU countries admitted that they will not be in a position to meet the requirements come January 1, 2012. During the International Reviews, delegates learned that Venezuela has increased per capita egg consumption by 30% in the past 5 years, the average farm size in the US houses 1 Million layers, the Dutch population is outnumbered 2:1 by layers, making Holland the largest global egg exporter and that it cost Austrians 100 Million Euros to move their 5.3 Million layers out of conventional cages. Egg Farmers of Canada’s (EFC) Bonnie Cohen provided Delegates an overview of the “New Developments in Egg Marketing in Canada” and EFC’s Board member Peter Clark gave a Canadian Egg Industry and Supply Management 101 seminar. Professor Andrew John from Australia gave an excellent presentation on “Corporate and Social Responsibility”. The case was made by researchers from the Pennington bio-medical Research Centre, USA and well received that an egg a day is more than just OK! The panel discussion focused on the “Developments in Egg Production Technology – Enriched Colony Systems”, the panellists provided their expertise. Of interest, Germany’s ban on conventional cages is set for 2010, two years earlier than the rest of the EU. One of the speakers, a German producer, sold a 200,000 layer capacity conventional cage to a producer in a former Soviet Republic for the price of dismantling and removing. Self sufficiency in egg production in Germany is estimated to drop to 50% in 2010 from 75% in 2004. It is safe to say that the European egg industry is at a cross roads: the rest of the world will be closely observing the outcome of the ban on conventional cages. The IEC Conference had previously come to Canada in 1987 and 1997, Montreal and Toronto respectively. Next year, the IEC members will meet in April in Paris, France for their spring conference, and in September in Prague, the Czech Republic for the Marketing & Production Conference. In September 2011 it’s back to North America for the Marketing & Production Conference, which will be held in Washington DC, USA. CPEPC would like to congratulate the Egg Farmers of Canada and the International Egg Commission on a successful conference.

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TFC's 220th Meeting

TFC’s 220th meeting took place on September 24th in Toronto. The previous day, TFC held a business planning session for their Directors, Alternates and Managers, which included presentations from Dr. Tom Elam from FarmEcon.com and Linda Smith from Fleishman Hillard.

There were a number of issues discussed during the TFC meeting including: a decision to amend Section 2 of the TFC Export Policy; move forward on an initiative to establish a partnership with the Food Banks of Canada for a 2 year commitment of $50k per year as well as explore a longer term commitment; collect additional information from Alberta concerning their request for leasing; and updates on Nova Scotia leasing, TFC regulations, TQAC and Trade. CPEPC will be hosting the 2010 TFC summer meeting in Saskatoon to follow the CPEPC Convention and invited turkey delegates to attend.  Any turkey members wanting more information should contact Giuseppe Caminiti at Council office.

CanNAISS 2009 Update

We reported in the July 31st edition of Highlighter that the pre-slaughter portion of the 2009 Canadian Notifiable Avian Influenza Surveillance System (CanNAISS) was due to begin in August. Since then, CPEPC chicken and turkey processor members have been cooperating with CFIA by providing slaughter schedules for roasters, turkeys and spent hens (both leghorn and breeders). The sampling started during the last week of August and has been running for 5 weeks. In that time 106 farms were selected for on farm serology testing, 27 results have been received - all negative, and 79 are still pending.

Due to a slower start than originally planned, the number of target samples will increase for September onward, so that the total planned for the pre-slaughter portion can still be met in this calendar year. CFIA is meeting with the BC provincial government to see how they can incorporate existing surveillance data from that province into the CanNAISS model. The consultation with the specialty birds (ducks and geese) industry has begun with discussions about compensation likely to be the biggest topic. At this point, CFIA's objective is to implement NAI surveillance in that sector in November. CFIA is just beginning its work on the Parent Flock component. CPEPC will be involved in that technical committee, but we don't expect to have our first meeting for another two to three weeks.

CFIA has also let us know that the CanNAISS program will be audited next week by the EU. We will keep members updated as new information is forthcoming. Any CPEPC member wanting more information is urged to contact Erica Charlton or Robin Horel at Council office.

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JBS to Acquire Controlling Interest in Pilgrim’s Pride

Over the past couple of weeks, there have been many reports concerning Brazilian food giant, JBS S.A. efforts to purchase Pilgrim’s Pride. Under the plan recently disclosed in a US bankruptcy court, Pilgrim’s Pride would emerge from bankruptcy by the end of the year and will sell 64% of the common stock in the new company to JBS. The deal is valued at $2.8 billion (US).

Under the terms of the plan, all creditors of Pilgrim’s Pride and its subsidiaries will be paid in full. Existing Pilgrim’s Pride common stock will be cancelled and existing stockholders will receive new common shares, representing 36% of the reorganized Pilgrim’s Pride company. The next hurdle will be a disclosure statement hearing before the US Bankruptcy Court (of Northern Texas), to take place on October 20.

JBS also announced a recent merger with Bertin S.A., a Brazilian company with interests in cattle production and meat-packing. JBS is currently the largest Brazilian multinational in the food industry and the largest beef producer in the world. Pilgrim’s Pride, even after its recent financial troubles, is still the largest chicken company in the US (some analysts estimate Pilgrim’s share at 20.3%. Tyson is close behind at 20%). The new combined JBS-Bertin group will be the world's largest meat producer with an annual income of $28.7 bln, slightly more than Springdale, Arkansas-based Tyson Foods Inc.

Canada and U.S. Extend Equivalence to Organic Meat and Poultry Products

It has been many years in the making, but now Canada has its Organics Products Regulations in place (SOR/2009-944).  The U.S. has had a similar standard, the National Organic Program (NOP) in force for some time already.  Since Canada and the U.S. are each others best customers, when it comes to food products, including meat and poultry protein, it makes good business sense to determine if equivalency of the organic standards could be achieved.  Canadian and U.S. officials did just that and in short order decided that equivalency was possible.  As a result, letters of equivalence were issued and can be found on the NOP and COO (Canadian Organic Office) websites.  Useful Q's and A's can be found on these websites which address some of the more common questions.  The COO website address is:

www.inspection.gc.ca/english/fssa/orgbio/orgbioe.shtml

With an equivalency agreement in place, meat products meeting the U.S. organic standard can be sold as organic in Canada and, of course, the reverse as well.  Canada is trying to negotiate a similar agreement with the EU but this will be more difficult.

- from Poultry Briefs©, a publication of Devalk Consulting Inc.

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FDA: New Rules To Reduce Salmonella From Eggs

New federal regulations require most U.S. egg producers to take steps to prevent the spread of Salmonella enteritidis, reports the American Veterinary Medical Association. The regulations are published in a final rule that took effect on 8 September. Producers with more than 50,000 laying hens need to comply with the rule by July 2010, and those with more than 3,000 laying hens but fewer than 50,000 must comply by July 2012. The rules are expected to affect producers accounting for 99% of the nation's egg production.

To comply with the new federal requirements, most egg producers must do the following:

• Have and implement a written S enteritidis prevention plan and document compliance.

• Buy only pullets tested for S enteritidis contamination or raise pullets under monitored conditions.

• Implement biosecurity and pest control programmes.

• Clean and disinfect poultry houses with positive S enteritidis test results.

• Refrigerate eggs at 45 F (9.44 C) during storage and transportation.

• Conduct environmental tests for S enteritidis and test eggs following positive environmental tests.

• Keep records related to flocks for one year after the flocks are permanently taken out of production.

• Make records available to the FDA within 24 hours of an official request.

• Producers must register with the FDA, which the Federal Register notice states will help the agency with annual inspections and resource allocation.

Dr. Eric N. Gingerich, a diplomate of the American College of Poultry Veterinarians and a staff veterinarian and adjunct assistant professor at the University of Pennsylvania's School of Veterinary Medicine, expects his state's diagnostic laboratory system will need more-sensitive equipment and more staff members to handle the final rule's requirements. He also expects an increase in material costs associated with laboratory tests. However, he said a United Egg Producers figure indicates eggs will cost consumers only about one cent more per dozen under the new rules.

While Dr. Gingerich thinks the tests will remove some S enteritidis-positive eggs from the market, he said egg producers have largely gained control over the bacteria since the FDA rule was proposed in 2004. Dr. Gingerich still has questions about what producers should do after positive test results in areas where there are no buyers of pasteurized eggs, what training is planned for implementation of the rule, and whether recalls will be required following positive test results.

The FDA proposal was similar when introduced in September 2004, and the agency held public meetings in 2004 and accepted comments through July 2005. The 2004 proposal and the 2009 final rule were developed as part of a series of farm-to-table egg safety efforts that the FDA and the Department of Agriculture's Food Safety and Inspection Service started in the 1990s, the Federal Register entry states.

www.worldpoultry.net

China May File Anti-Dumping Case Against U.S. Poultry

The Chinese Ministry of Commerce (MOFCOM) said earlier this month that it is preparing to launch an anti-dumping investigation against the US poultry industry, alleging that poultry imports are causing economic injury to China’s domestic industry. China is alleging that the US provides indirect subsidies to the poultry industry via support programs to US corn and soybeans.

China’s action comes after a recent move by the Obama Administration to enact a safeguard provision under the WTO to increase import duties on Chinese-made tires.

- from USAPEEC Monday Line

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Conferences, Courses and Workshops

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