United Voices Newsletter

United Voices Newsletter
d/b/a Egg Farmers of America

Highlights Inside This Issue
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NASS Chicken & Egg Report
McDonald’s Transition to Cage
Free
FSMA Preventative Controls
APHIS Update
Tyson Foods Cuts Ties after
Undercover Video
Sheraton New Orleans Room
Confirmations
300 Million Tons of Manure
WOTUS Rule
Subway Australia Cage Free
Urner Barry Report
For Sale
D.C. Report

Mark your calendar for
2015 UEP Meetings!

October 6th – 9th
UEP Annual Board &
Executive Conference
New Orleans, LA

September 11, 2015
New Chicken and Egg Report from NASS
And why is that important to you?

Approximately two years ago, UEP’s Chairman Jim Dean strongly emphasized the need for
accurate industry statistics and data. He and others shared the view that it was difficult to
make sound business decisions if the information upon which you were basing those
decisions was old and inaccurate. That led to UEP establishing a new Information Sharing
Committee. The more the committee investigated all the various sources of industry
statistics, the more it appeared that they were all basing their findings and reports on what
USDA NASS was generating through their monthly Chicken and Egg Survey. If that
information was untimely and inaccurate then subsequent reports would become equally
inaccurate.
The goals of this committee were to work with USDA NASS to:
 Better understand the format and questions in their Monthly Chicken and Egg
Survey
 Ascertain the extent to which the industry was participating in the monthly survey
 Determine if NASS was willing to edit their survey by changing the format and using
language that egg farmers understood and used in their businesses.
The Committee is comprised of these UEP Members: Jacques Klempf - Chair (United Egg
Marketing Corp.), Andy Seger – Vice Chair (Layer’s, Inc.), Lisa Beohm (Iowa Cage Free), Tim
Dawson (Cal-Maine Foods), Ross Dean (Center Fresh Egg Farm, LLP), Mark Oldenkamp
(Valley Fresh Foods, Inc.), Lowell Ostrand (Michael Foods Egg Products Company), Doug
Wicker (ISE Newberry, Inc.).
A big “THANK YOU” goes to these egg farmers for their leadership and efforts. After several
positive and productive meetings and conference calls, USDA NASS has significantly changed
their monthly survey. A copy of the new NASS survey is included in this newsletter. The
new survey includes UEP’s requested wording changes and preferred sequence.
Our hopes (NASS and UEP):
 Egg farmers like the new format, questions and sequence
 Because of the new look and feel – all egg farmers will complete the survey on a
monthly basis
 Therefore, leading to reports and industry statistics that are accurate and timely
NASS is open to this being completed per farm or even aggregated for all locations of a
producer.

1720 Windward Concourse
Suite 230
Alpharetta, GA 30005
Tel: 770-360-9220
Fax: 770-360-7058

Please be on the lookout for this new monthly survey from NASS! Please share it with the
person in your organization that is responsible for completing the survey. Please complete
the survey so that 6 months to a year from now we can feel confident that the decisions you
are making are based on reliable and timely information.
Thanks and as always, if you have questions please don’t hesitate to contact your UEP staff.

http://www.unitedegg.com

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McDonald’s Announces Transition to Cage Free Eggs
To meet consumers’ changing expectations and preferences, McDonald’s has announced that it will
fully transition to cage-free eggs for its nearly 16,000 restaurants in the U.S. and Canada over the
next 10 years. “Our customers are increasingly interested in knowing more about their food and
where it comes from,” said McDonald’s USA President Mike Andres. “Our decision to source only
cage-free eggs reinforces the focus we place on food quality and our menu to meet and exceed our
customers’ expectations.
On an annual basis, McDonald’s USA purchases approximately two billion eggs and McDonald’s
Canada purchases 120 million eggs to serve on its breakfast menus, which includes popular
breakfast sandwiches, such as the Egg McMuffin and Egg White Delight. Since 2011, McDonald’s
USA has been purchasing more than 13 million cage-free eggs annually. “Animal welfare has always
been important to us and our customers,” added Marion Gross, senior vice president and Chief
Supply Chain Officer of McDonald’s North America. “Today’s announcement is another big
milestone building on our work with industry experts and suppliers to improve the treatment of
animals.”
UEP responded to the McDonald’s announcement by stating that “America’s egg farmers have long
been committed to ensuring the health and well-being of the hens. Over the years, many
evaluations of hen housing systems have been conducted, including a comprehensive, three-year
research study done by the Coalition for a Sustainable Egg Supply (CSES) that compared three
different hen housing environments. Both United Egg Producers (UEP) and McDonald’s are
members of CSES, and through this process, as well as through the ongoing counsel of UEP’s
Scientific Advisory Committee.”

The FDA Food Safety Modernization Act (FSMA) Preventive Controls for
Human Food and Animal
Food rules are now final, and compliance dates for some businesses begin in September 2016. The
rule was made available in the Federal Registry Thursday, September 10, 2015. This final rule is
the product of an unprecedented level of outreach by the FDA to industry, consumer groups, the
agency’s federal, state, local and tribal regulatory counterparts, academia and other stakeholders.
In response to input received during the comment period and during hundreds of engagements that
included public meetings, webinars, listening sessions, and visits to farms and food facilities across
the country, the FDA issued a supplemental notice of proposed rulemaking in September 2014. The
proposed revisions were designed to make the originally proposed rule more practical, flexible, and
effective for industry, while still advancing the FDA’s food safety goals.
The final rule has elements of both the original and supplemental proposals, in addition to new
requirements that are the outgrowth of public input received during the comment period for both
proposals. For example, flexibility has been built into key requirements, including control of the
supply chain, and the definition of farms— which are exempt from these regulations— has
significantly changed to reflect modern farming practices. UEP Director of Food Safety Oscar
Garrison and Randy Green will be meticulously going over the 2 rules consisting of over 1700 pages
in these documents and will provide an executive overview at the Annual Meeting in October. At
first glance, it appears the comments submitted by UEP were taken very seriously by the agency as
the final rule was drafted.

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APHIS Provides Additional Insight to Fall Planning
On Friday, August 28, APHIS again hosted its regular bi-weekly stakeholder HPAI update call. This
call was an important update for egg producers, with a number of key issues being raised and
discussed. The management team is in the process of leaving Iowa, a total of 16 sites have
contractors working in them and it is expected they will be completed very soon.
APHIS continues to focus on ‘streamlining effectiveness’ as it prepares for fall. The goal of a 24
hour depopulation continues to be a focus to keep the virus contained if it returns. The need for
rapid decision making and communication among the producer, state, and federal agencies will be
the key to accomplishing this goal. The indemnity process has been streamlined to no longer
require a signed flock plan to commence depopulation. Additional CO2 carts and foamers have
been ordered and whole house CO2 units are being constructed to facilitate the agencies goal.
Biosecurity continues to be a recurring topic. Producers will need to be able to communicate that
they have a plan in place and that they are following it. A biosecurity self-assessment tool is being
developed to identify potential gaps in current plans. Producers will be able to take the deficiencies
discovered in the self-assessment and focus on those as they develop site-specific biosecurity plans
for the fall. APHIS will collaborate with USPOULTRY on disseminating the self-assessment survey
by mid-September.
Cleaning and disinfection during the spring outbreak have provided many lessons learned to APHIS
and states. Most recently, APHIS has focused on dry cleaning and heating as the likely, preferred
cost-effective methods of killing the virus. The agency is currently considering a flat rate of
reimbursement for cleaning and disinfection in the future. UEP staff remains in communication
with USDA and will provide additional information as it becomes available.

Tyson Foods Cuts Ties with Farm after Undercover Video
Tyson Foods has cut ties with a Tennessee chicken farm after an undercover video shows alleged
animal abuses. A Mercy for Animals undercover investigator worked at the T&S Farm in Dukedom,
TN for about four weeks in July and August capturing video with a small camera. In images
released, chickens at the farm are seen being beaten and stabbed with a pole with a spike on it. In
the video, a farm employee is heard asking the investigator "You don't work for PETA, do you?"
before repeatedly hitting one of the birds with a spiked stick. T&S Farm raises chickens for the
Tyson Foods slaughterhouse in Union City, TN, which in turn supplies meat to McDonalds. Tyson
Foods spokesman Worth Sparkman said in a statement that “We’re committed to animal well-being
but don’t believe this video accurately depicts the treatment of chickens by the thousands of
farmers who supply us.”

Sheraton New Orleans Hotel Room Reservations
The Sheraton New Orleans Hotel has sent out the hotel confirmation letters to those of you that
have registered for the UEP Annual Board Meeting & Executive Conference.
If you do not receive your confirmation letter by Monday, September 21, or have any other
additional questions or requests, please contact Caryn Konrad at [email protected] or
770-360-9220.

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300 Million Tons of Manure; CERCLA-EPCRA Emissions Reporting Back In Play
A recent story in Bloomberg news (“EPA Doesn't Know How to Deal With 300 Million Tons of
Animal Poop” 8/20/2015) may have caught your attention. The story attempts to link together
several efforts at greater federal regulation of CAFOs into a seemingly unified problem related to
the amount of manure that CAFOs collectively generate. That is a lot of manure, and the story
implies it is being poorly managed universally; something that is patently untrue.
There is one piece of news in this story, though, having to do with CAFOs reporting their ammonia
and hydrogen sulfide emissions under CERCLA-EPCRA (the “Superfund” laws). Almost 15 years ago
this threat is in part what drove UEP and others in animal agriculture to seek Air Consent
Agreements while the National Air Emissions Monitoring Study was undertaken. The news in the
Bloomberg story is that the environmental groups have restarted litigation that creates the very
real chance that sometime in 2016 or 2017 EPA will once again require livestock and poultry
operations to report their ammonia emissions to national and state emergency authorities.
Operations emitting more than 100 pounds of ammonia over 24 hours would need to report. This
could create substantial legal liabilities for any CAFO that has NOT reported emissions over the
past several years, particularly those that did not sign an Air Consent Agreement. We will have
more in-depth analysis to present to the industry at the annual meeting in October.

Waters of the U.S. Still Troubled
While the official effective date of the final WOTUS rule was August 28, 2015, a North Dakota
federal district court’s rulings have complicated the start of the rule’s implementation.
Judge Erickson granted on August 27, 2015 the request of thirteen states for a Preliminary
Injunction (P.I.) against the rule. The judge found persuasive the states’ arguments that they would
suffer irreparable harm without the injunction and that their challenge to the lawfulness of the rule
had a strong chance of success. But after further briefing Judge Erickson concurred with US EPA
that the P.I. would only apply to the thirteen states, leaving the final rule in place for the rest of the
country. The thirteen states are Alaska, Arizona, Arkansas, Colorado, Idaho, Missouri, Montana,
Nebraska, Nevada, South Dakota, Wyoming, New Mexico and North Dakota. If you are not in one of
these states there is a distinct chance that you have drainage and water features on your farms that
today could be claimed as directly subject to Clean Water Act jurisdiction. The same is true for
those farmers that are accepting or purchasing your operation’s manure for crop production.
We don’t expect any imminent enforcement actions from the regulatory agencies as a result of the
rule. But the threat of Clean Water Act citizen suits is very real and as such the final rule
immediately creates new uncertainty and possible serious federal liabilities for egg producers. We
will have more in-depth analysis to present to the industry at the annual meeting in October.

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Subway Australia Goes Cage Free
Recently we reported that ALDI Australia had been targeted, with shoppers expressing their anger
via social media for selling cage eggs. Animal welfare group RSPCA has kicked-off an online
campaign by asking people to write to the German-owned company and urge them to stop selling
the type of eggs, which they label as 'cruel'. Some consumers have even threatened to stop shopping
at the supermarket chain after the RSPCA secured commitments from ALDI's larger competitors.
Now, Subway fast food chain, known the world over for its jingle encouraging customers to 'Eat
Fresh', have announced that they have switched to cage-free eggs, 18 months ahead of schedule.
The chain uses around 5.5 million eggs across its 1,400 Australian outlets each year.

Urner Barry Historical Data
Thanks to Urner Barry, this historical data gives users a quick look at current production and price
levels vs. like periods and averages of the last 4 years. Once a month, UEP will provide this past
information as a helpful tool.
Midwest Large Vs. Layer Numbers
2011 - 2015
2015
2014
Price Layers Price Layers
Jan 1.295 308.2 1.308 304.3
Feb 1.491 304.6 1.552 302.3
Mar 1.711 305.1 1.546 303.0
Apr 1.224 304.1 1.560 304.4
May 1.780 296.0 1.357 304.3
Jun 2.302 270.2 1.279 302.9
Jul 2.354 270.3 1.435 303.1
Aug 2.714 271.2 1.294 305.2
Sep 2.450
- 1.280 305.6
Oct
- 1.340 306.4
Nov
- 1.739 306.2
Dec
- 2.008 310.1
Average 1.883 291.2 1.470 304.8
* Average does not include current year.
Copyright © 2015 Urner Barry.
Source: Urner Barry · 732-240-5330

2013
Price Layers
1.338 298.6
1.220 298.8
1.360 300.6
1.068 300.2
1.257 296.0
1.062 297.2
1.210 296.7
1.255 298.0
1.217 300.9
1.242 299.3
1.565 303.0
1.614 306.1
1.281 299.6

2012
Price Layers
1.139 287.4
1.073 286.1
1.202 287.1
1.064 287.8
.960 286.0
1.090 285.7
1.300 284.1
1.417 284.2
1.415 286.8
1.274 288.7
1.418 293.3
1.374 293.8
1.225 287.6

2011
Price Layers
1.131 285.9
1.145 282.2
1.044 281.2
1.224 283.6
1.016 280.4
1.048 277.6
1.093 278.9
1.353 278.5
1.208 281.2
1.284 281.3
1.293 283.9
1.512 286.0
1.195 281.7

4-Year-Avg*
Price Layers
1.231 294.0
1.245 292.4
1.281 293.0
1.229 294.0
1.147 291.7
1.119 290.9
1.263 290.7
1.331 291.5
1.277 293.6
1.285 293.9
1.497 296.6
1.630 299.0
1.293 293.4

For Sale


2,000 sets of wooden boards, tic tac & pallets, pressure washed and sanitized for pick up in
the Midwest. Please call Phyllis at 1-800-735-3765 for more information.

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Washington D.C. Report
Summer Over as Congress Returns to a Busy Fall
Congress has returned from its August recess and faces several immediate issues. For food and
agricultural issues, the top of the list includes Highly Pathogenic Avian Influenza (HPAI), a Country
of Origin Labeling (COOL) battle in the Senate, Child Nutrition Reauthorization, EPA’s Clean Water
Rule (WOTUS), and the GMO labeling bill.
HPAI: Rep. Collin Peterson (D-MN) said that he expects the House Agriculture Committee to begin
working on an avian influenza insurance program for producers.
COOL: The Senate is still split over legislation to address the WTO’s ruling against the United States’
Country of Origin Labeling law. Senate Agriculture Committee Chairman Pat Roberts (R-KS) has
pledged to begin working on the bill for a clean repeal of COOL sponsored by House Agriculture
Committee Chairman Mike Conaway (R-TX) and passed by the House earlier this summer. Sen.
Debbie Stabenow (D-MI) and Sen. John Hoeven (R-ND) have a bill, backed by a majority of the
Senate Agriculture Committee that would offer a voluntary labeling approach. Critics of the
Stabenow-Hoeven bill say that a clean repeal of COOL is necessary to avoid retaliation from Canada
and Mexico.
Child Nutrition Reauthorization: USDA Secretary Tom Vilsack has given two high profile speeches
calling on Congress to reauthorize the Healthy Hunger Free Kids Act before it expires on September
30, 2015. The Senate Agriculture Committee is scheduled to mark up its version of the
reauthorization on September 17, and the House Education and the Workforce Committee is
expected to introduce their version in mid-September.
WOTUS: In a groundbreaking win for agriculture, a federal judge in North Dakota approved a
petition for a permanent injunction of the rule, a decision at odds with the rulings of federal courts
in Georgia and West Virginia finding that the States’ challenges to the WOTUS rule have to be
brought before a U.S. court of appeals. The North Dakota ruling stops immediate implementation of
WOTUS in 13 states, but EPA has clearly indicated it will implement WOTUS in 37 states.
GMO Labeling: Earlier this summer, the House passed Rep. Mike Pompeo’s (R-KS) Safe and Accurate
Food Labeling Act with the help of 45 Democrats. Proponents of the bill are eagerly watching the
Senate for action on the bill.

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