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Poultry Products Inspection Act.

ROBERT D. RAGLAND, D.V.M., MPHROBERT D. RAGLAND, D.V.M., MPHSenior Staff OfficerSenior Staff Officer

Risk and Innovations Management Division Risk and Innovations Management Division OPPD, FSIS, USDAOPPD, FSIS, USDA

1400 Independence Avenue, S.W., Rm. 3549-S1400 Independence Avenue, S.W., Rm. 3549-SWashington, DC 20250-3700Washington, DC 20250-3700

Office: 202-205-0210; Fax: 202-720-7027Office: 202-205-0210; Fax: 202-720-7027

E-mail: robert.ragland@fsis.usda.govE-mail: robert.ragland@fsis.usda.gov

March 10, 2009 webinarMarch 10, 2009 webinar

Poultry Exemptions Under the

Federal

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HistoryHistoryThe 1957 Wholesome Poultry Products ActThe 1957 Wholesome Poultry Products Act

((Public Law 90 – 492Public Law 90 – 492))

The 1957 Act mandated federal The 1957 Act mandated federal inspection at businesses that inspection at businesses that slaughtered and processed slaughtered and processed poultry products that entered poultry products that entered interstateinterstate or or foreign foreign commercecommerce..

33

Congress amended the Congress amended the Wholesome Poultry Products Act in Wholesome Poultry Products Act in

1968 1968

Extending the mandate for Federal inspection to Extending the mandate for Federal inspection to

all businessesall businesses that slaughter or that slaughter or process poultry for shipment within a State, process poultry for shipment within a State, when the State does not enforce requirements at when the State does not enforce requirements at least equal to the Federal inspection least equal to the Federal inspection requirements in therequirements in the

Poultry Products Inspection Act (PPIA)Poultry Products Inspection Act (PPIA) ..

55

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It was not the intent of Congress It was not the intent of Congress to mandate full Federal Inspection to mandate full Federal Inspection of the slaughter and processing of of the slaughter and processing of an owner’s private holdings of an owner’s private holdings of poultry or to mandate full poultry or to mandate full inspection at businesses that inspection at businesses that slaughter or process a small slaughter or process a small amount of poultryamount of poultry. .

Intent of Congress

77

Therefore, Congress in Therefore, Congress in the Act exempts some the Act exempts some poultry slaughter and poultry slaughter and some processing some processing businesses from certain businesses from certain requirements of the Act.requirements of the Act.

Intent of Congress

88

The PPIA and Federal Regulations Provide The PPIA and Federal Regulations Provide for Several Types of Exempt Slaughter for Several Types of Exempt Slaughter

and Processing Operations/Businesses and Processing Operations/Businesses

1. Slaughter & processing of poultry for personnel use;1. Slaughter & processing of poultry for personnel use;2. Custom slaughter & processing-personal use; 2. Custom slaughter & processing-personal use; 3. Producer/Grower no more than 1,000/calendar yr.;3. Producer/Grower no more than 1,000/calendar yr.;4. Producer/Grower no more than 20,000/calendar yr.;4. Producer/Grower no more than 20,000/calendar yr.;5. Producer Grower or Other Person (PGOP) no more than 5. Producer Grower or Other Person (PGOP) no more than

20,000/calendar yr.—meals/processing; 20,000/calendar yr.—meals/processing; 6. Small Enterprises slaughtering/cutting up no more than 6. Small Enterprises slaughtering/cutting up no more than

20,000/calendar yr.—carcasses and parts no processing; 20,000/calendar yr.—carcasses and parts no processing; 7. Retail Stores; and 8. Restaurants7. Retail Stores; and 8. Restaurants..

Link: Guidance for Determining Whether a Poultry Slaughter or Processing Link: Guidance for Determining Whether a Poultry Slaughter or Processing Operation is Exempt from Inspection Requirements of the PPIA 2006Operation is Exempt from Inspection Requirements of the PPIA 2006

www.fsis.usda.gov/OPPDE/rdad/FSISNotices/Poultry_Slaughter_www.fsis.usda.gov/OPPDE/rdad/FSISNotices/Poultry_Slaughter_Exemption_0406.pdfExemption_0406.pdf

Poultry Exemptions

This presentation is billed as an overview with focus on:

• Producer/Grower 1,000 Bird limit

• Producer/Grower 20,000 Bird limit

• Producer/Grower or Other Person 20,000

• Small Enterprise 20,000.

1010

A MisconceptionA Misconception

An exempt operation is exempt An exempt operation is exempt from all requirements of the from all requirements of the

Poultry Products Inspection Act Poultry Products Inspection Act (PPIA).(PPIA).

1111

Exempt From What?Exempt From What?

Under the Act the term “exempt” Under the Act the term “exempt” means that certain types of poultry means that certain types of poultry slaughter and processing operations slaughter and processing operations qualify to operate without the benefit qualify to operate without the benefit of Federal inspection on a daily of Federal inspection on a daily basis and a grant of Federal basis and a grant of Federal inspection is not required.inspection is not required.

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Exempt operations are exempt Exempt operations are exempt from continuous bird-by-bird from continuous bird-by-bird inspection and the presence of inspection and the presence of FSIS inspectors during the FSIS inspectors during the slaughter of poultry and slaughter of poultry and processing of poultry products.processing of poultry products.

1313

Three Very Basic Requirements Three Very Basic Requirements (Criteria-Limitations) (Criteria-Limitations)

for Businesses Slaughtering or Processing for Businesses Slaughtering or Processing Poultry for Human Food Under a PPIA Poultry for Human Food Under a PPIA

ExemptionExemption..

1. 1. The poultry is healthy when slaughteredThe poultry is healthy when slaughtered..

2. The slaughter, processing, and 2. The slaughter, processing, and transportation are conducted under transportation are conducted under sanitary practices and procedures that sanitary practices and procedures that produce poultry products that are produce poultry products that are sound, clean, and fit for human food (not sound, clean, and fit for human food (not adulteratedadulterated))..

3.3. The poultry is not misbranded and is The poultry is not misbranded and is identified as exempt productidentified as exempt product..

1414

Another MisconceptionAnother Misconception

A business may A business may simultaneously claim or simultaneously claim or

operate under more than operate under more than one exemption.one exemption.

1515

Which and how many exemptions may a Which and how many exemptions may a person or business claim when person or business claim when

slaughtering or processing poultry?slaughtering or processing poultry?

• A slaughterer or processor of poultry may A slaughterer or processor of poultry may not simultaneously operate under more than not simultaneously operate under more than one exemption during a calendar yearone exemption during a calendar year. .

• A person or business may slaughter or A person or business may slaughter or process poultry under an exemption if the process poultry under an exemption if the operation qualifies for the exemption. operation qualifies for the exemption.

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Forth CriteriaForth Criteriafor All Businesses Slaughtering or Processing for All Businesses Slaughtering or Processing

Poultry for Human Food Under a PPIA ExemptionPoultry for Human Food Under a PPIA Exemption ..

1. The poultry is healthy when slaughtered.1. The poultry is healthy when slaughtered.

2. Slaughter, processing, and transportation are 2. Slaughter, processing, and transportation are conducted under sanitary standards, conducted under sanitary standards, practices, and procedures that produce practices, and procedures that produce poultry products that are sound, clean, and fit poultry products that are sound, clean, and fit for human food (not adulterated).for human food (not adulterated).

3. The poultry is not misbranded.3. The poultry is not misbranded.

4.4. Business operates under Business operates under only one exemption in a only one exemption in a calendar yearcalendar year..

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A 5A 5thth and 6 and 6thth Requirements/Limitations Requirements/Limitationsfor all Businesses Slaughtering or for all Businesses Slaughtering or

Processing Poultry for Human Food Under a Processing Poultry for Human Food Under a PPIA Exemption PPIA Exemption

55thth Product cannot bare the Official Product cannot bare the Official USDA mark of inspection.USDA mark of inspection.

66thth The poultry products are distributed The poultry products are distributed only within the State, Territory, or DConly within the State, Territory, or DC where produced i.e. cannot be where produced i.e. cannot be distributed across State linesdistributed across State lines. .

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Six Common Requirements/Limitations Applicable Six Common Requirements/Limitations Applicable to the 4 Exemptions Presented Todayto the 4 Exemptions Presented Today

1.1. The poultry is healthy when slaughtered; The poultry is healthy when slaughtered;

2.2. The slaughter and processing are The slaughter and processing are conducted under sanitary standards, conducted under sanitary standards, practices, and procedures that produce practices, and procedures that produce poultry products that are sound, clean, poultry products that are sound, clean, and fit for human food (not adulterated); and fit for human food (not adulterated);

3. The poultry is not misbranded is 3. The poultry is not misbranded is identified as exempt product and identified as exempt product and labeled;labeled;

4. The business operates under only 1 4. The business operates under only 1 exemption during calendar year;exemption during calendar year;

5.5. Product cannot bear the Official USDA Product cannot bear the Official USDA mark of inspection; andmark of inspection; and

6.6. Poultry products do not move in inter-Poultry products do not move in inter-state commerce.state commerce.

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Small Enterprise Small Enterprise 20,000 Bird Limit 20,000 Bird Limit

ExemptionExemption

2020

A Small Enterprise Exemption A Small Enterprise Exemption Business Can BeBusiness Can Be::

• a a producer/grower who raisesproducer/grower who raises, or , or

• a a business that purchases live business that purchases live poultrypoultry that they slaughter and dress, or that they slaughter and dress, or

• a a business that purchases business that purchases inspected inspected poultry or exempted 1,000 or 20,000 poultry or exempted 1,000 or 20,000 Producer/Grower dressed poultry.Producer/Grower dressed poultry.

The Small Enterprise can process and sell The Small Enterprise can process and sell another persons poultry provided processing is another persons poultry provided processing is

limited to limited to cutting upcutting up..

2121

Additional Small Enterprise LimitationsAdditional Small Enterprise Limitations

7.7. The business slaughters and dresses The business slaughters and dresses or or cuts upcuts up no more than no more than 20,00020,000 birds/carcasses in a calendar year birds/carcasses in a calendar year under the exemption.under the exemption.

8. The facility used to slaughter or 8. The facility used to slaughter or process poultry is not used to process poultry is not used to slaughter or process another person’s slaughter or process another person’s poultry unless the Administrator of poultry unless the Administrator of FSIS grants an exemption [9 CFR FSIS grants an exemption [9 CFR 381.10 (b)(2)].381.10 (b)(2)].

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Small Enterprise Exemption Notes:Small Enterprise Exemption Notes:

• may handle “pass through” inspected productmay handle “pass through” inspected product

• may purchase, cutup, and distribute exempt may purchase, cutup, and distribute exempt product produced under the Producer/Grower product produced under the Producer/Grower ExemptionsExemptions

• may cutup product produced under Federal may cutup product produced under Federal inspectioninspection

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No restriction on intra-state customers; but No restriction on intra-state customers; but product may not be distributed across state product may not be distributed across state lines.lines.

A Small Enterprise Exemption may sell to:A Small Enterprise Exemption may sell to:

• Household ConsumerHousehold Consumer

• Retail Stores (grocery stores)Retail Stores (grocery stores)

• HotelsHotels

• Restaurants and Similar InstitutionsRestaurants and Similar Institutions

• DistributorsDistributors

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Small Enterprise Exemption Notes:Small Enterprise Exemption Notes:

A small enterprise may not A small enterprise may not purchasepurchase, cut up, and , cut up, and distribute poultry products produced under as these 2 distribute poultry products produced under as these 2 exemptions which may not sell to a Small Enterprise: exemptions which may not sell to a Small Enterprise:

a. Retail exemption b. PGOP exemptiona. Retail exemption b. PGOP exemption

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Small Enterprise Product LabelingSmall Enterprise Product Labeling

Note: Poultry products produced under a Note: Poultry products produced under a Small Enterprise exemption are not Small Enterprise exemption are not misbranded when they bear all of the misbranded when they bear all of the features of a label for inspected product features of a label for inspected product with the exception that the official with the exception that the official inspection legend may not be used. inspection legend may not be used.

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Label requirements for small enterprise exempt Label requirements for small enterprise exempt product includeproduct include::

1.1. Name of the product;Name of the product;2.2. Ingredients statement;Ingredients statement;3.3. Statement of the quantity of contents in terms of Statement of the quantity of contents in terms of

weight or measures;weight or measures;4.4. Name and address of manufacturer;Name and address of manufacturer;5.5. Special handling statement;Special handling statement;6.6. Date of packing; Date of packing; 7.7. Explanatory statement indicating why the Explanatory statement indicating why the

inspection legend is not permitted; for example, the inspection legend is not permitted; for example, the phrase “Small Enterprise Exemption from phrase “Small Enterprise Exemption from Inspection” is suggested by FSIS but is not a Inspection” is suggested by FSIS but is not a mandatory requirementmandatory requirement. . The ”The ”Exempt –PL90-492Exempt –PL90-492” ” is sufficient.is sufficient.

8.8. Safe handling instruction that comply with the Safe handling instruction that comply with the requirements of Title 9 CFR 381.125(b)(2)(ii),requirements of Title 9 CFR 381.125(b)(2)(ii),

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Safe handling instruction that comply Safe handling instruction that comply with the requirements of with the requirements of

Title 9 CFR 381.125(b)(2)(ii)Title 9 CFR 381.125(b)(2)(ii)

“ “Some food products may contain bacteria Some food products may contain bacteria that could cause illness if the product is that could cause illness if the product is mishandled or cooked improperly. For mishandled or cooked improperly. For your protection, follow these safe handling your protection, follow these safe handling instructions.”instructions.”

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It is not acceptable to use the safe handling It is not acceptable to use the safe handling statement use on inspected product 9 CFR statement use on inspected product 9 CFR

381.125.(2)(i)381.125.(2)(i)

“ “This product was prepared from inspected This product was prepared from inspected and passed meat and or poultry.and passed meat and or poultry. Some Some food products may contain bacteria that food products may contain bacteria that could cause illness if the product is could cause illness if the product is mishandled or cooked improperly. For mishandled or cooked improperly. For your protection, follow these safe handling your protection, follow these safe handling instructions.”instructions.”

3030

In addition, if the labeling does not In addition, if the labeling does not bear nutrition or health claims, the bear nutrition or health claims, the nutrition facts feature, as nutrition facts feature, as explained in, Title 9 CFR 381.500 explained in, Title 9 CFR 381.500 Exemption from nutritional Exemption from nutritional labeling, labeling, is optionalis optional for poultry for poultry products produced by a business products produced by a business eligible for the small enterprise eligible for the small enterprise exemption.exemption.

3131

Small Enterprise Exemption Notes:Small Enterprise Exemption Notes:

A small enterprise is not prohibited from A small enterprise is not prohibited from selling live poultry to a customer and then selling live poultry to a customer and then slaughtering, dressing, and cutting up the slaughtering, dressing, and cutting up the poultry for the customer. Sellingpoultry for the customer. Selling livelive poultry is not the same as buying or selling poultry is not the same as buying or selling poultry productspoultry products,, one of the criteria that one of the criteria that prevents a business from claming the prevents a business from claming the Custom Exemption.Custom Exemption.

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Producer/Grower or Other Producer/Grower or Other Person (PGOP)Person (PGOP)

20,000 Bird Limit Exemption20,000 Bird Limit Exemption

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Producer/Grower or Other Person (PGOP) Producer/Grower or Other Person (PGOP) Exemption May be:Exemption May be:

• a poultry grower whoa poultry grower who slaughters and slaughters and processes poultry that he or she raisedprocesses poultry that he or she raised for sale, orfor sale, or

• a person whoa person who purchases live poultry from purchases live poultry from a grower and then slaughtersa grower and then slaughters these these poultry and processes such poultrypoultry and processes such poultry

for sale directly to household for sale directly to household consumers, restaurants, hotels, and consumers, restaurants, hotels, and boarding houses to be served in those boarding houses to be served in those homes or dining rooms for the homes or dining rooms for the preparation of mealspreparation of meals sold directly to sold directly to customers.customers.

3434

Restriction on intra-state customers and Restriction on intra-state customers and product may not be distributed across state product may not be distributed across state lines.lines.

A PGOP 20,000 Limit Exemption may sell to:A PGOP 20,000 Limit Exemption may sell to:

• Household ConsumerHousehold Consumer

• HotelsHotels

• RestaurantsRestaurants

May NOT sell to Retail Stores or DistributorsMay NOT sell to Retail Stores or Distributors

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a. Household Consumer

c. Restaurants

b. Hotels

3636

Producer/Grower or Other Person Producer/Grower or Other Person Exemption Notes:Exemption Notes:

• A business preparing poultry products A business preparing poultry products under the PGOP exemptionunder the PGOP exemption may NOT sellmay NOT sell products to: products to:

a. retail store or

distributor

b. Producer/Grower or other PGOP

3737

PGOP Exemption LimitationsPGOP Exemption Limitations

1.1. The poultry is healthy when slaughtered; The poultry is healthy when slaughtered;

2.2. The slaughter and processing are conducted The slaughter and processing are conducted under sanitary standards, practices, and under sanitary standards, practices, and procedures that produce poultry products that procedures that produce poultry products that are sound, clean, and fit for human food (not are sound, clean, and fit for human food (not adulterated); adulterated);

3. The poultry is not misbranded is identified as 3. The poultry is not misbranded is identified as exempt product and labeled;exempt product and labeled;

4. The business operates under only 1 exemption 4. The business operates under only 1 exemption during calendar year;during calendar year;

5.5. Product cannot bear the Official USDA mark of Product cannot bear the Official USDA mark of inspection; andinspection; and

6.6. Poultry products do not move in inter-state Poultry products do not move in inter-state commerce.commerce.

3838

PGOP Exemption LimitationsPGOP Exemption Limitations7. 7. The business slaughters or processes no The business slaughters or processes no

more than 20,000 birds/carcasses in a more than 20,000 birds/carcasses in a calendar year under the exemption.calendar year under the exemption.

8. The facility used to slaughter or process 8. The facility used to slaughter or process poultry is not used to slaughter or poultry is not used to slaughter or process another person’s poultry unless process another person’s poultry unless the Administrator of FSIS grants an the Administrator of FSIS grants an exemption [9 CFR 381.10 (b)(2)].exemption [9 CFR 381.10 (b)(2)].

9. The PGOP is the 9. The PGOP is the sole distributorsole distributor i.e. i.e. sale sale directly to household consumers, restaurants, directly to household consumers, restaurants, hotels, and boarding houses for the hotels, and boarding houses for the preparation preparation of mealsof meals sold directly to customers. sold directly to customers.

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Labeling PGOP ProductLabeling PGOP Product

The shipping containers, when distributed in intrastate commerce, (instead of all the required features of a label for inspected product) bear:

a. the processor’s name, b. the address, c. the statement, Exempt P.L. 90-492, and d. safe handling instructions.

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Producer/Grower – 20,000 Producer/Grower – 20,000 Limit ExemptionLimit Exemption

4141

Producer/Grower – 20,000 Limit ExemptionProducer/Grower – 20,000 Limit Exemption

The producer/grower may slaughters and processes, on his or her own premises, no more than 20,000 poultry, raised by him or her, in a calendar year.

The producer/grower only distributes poultry products he or she produced under the Producer/Grower Exemption

4242

Producer/Grower 20,000 Limit Exemption Producer/Grower 20,000 Limit Exemption LimitationsLimitations

1.1. The poultry is healthy when slaughtered; The poultry is healthy when slaughtered;

2.2. The slaughter and processing are conducted under sanitary The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry standards, practices, and procedures that produce poultry products that are sound, clean, and fit for human food (not products that are sound, clean, and fit for human food (not adulterated); adulterated);

3. The poultry is not misbranded is identified as exempt product 3. The poultry is not misbranded is identified as exempt product and labeled;and labeled;

4. The business operates under only 1 exemption during calendar 4. The business operates under only 1 exemption during calendar year;year;

5.5. Product cannot bear the Official USDA mark of inspection; andProduct cannot bear the Official USDA mark of inspection; and

6.6. Poultry products do not move in inter-state commerce.Poultry products do not move in inter-state commerce.

7. The business slaughters and dresses or cuts up no more than 7. The business slaughters and dresses or cuts up no more than 20,000 birds/carcasses in a calendar year under the exemption.20,000 birds/carcasses in a calendar year under the exemption.

8.8. The facility used to slaughter or process poultry is not used to The facility used to slaughter or process poultry is not used to slaughter or process another person’s poultry unless the slaughter or process another person’s poultry unless the Administrator of FSIS grants an exemption [9 CFR 381.10 (b)Administrator of FSIS grants an exemption [9 CFR 381.10 (b)(2)].(2)].

4343

Labeling Producer/Grower – 20,000 Limit Labeling Producer/Grower – 20,000 Limit ExemptionExemption

The shipping containers, when distributed in intrastate commerce, (instead of all the required features of a label for inspected product) bear:

a. the processor’s name,

b. the address,

c. the statement, Exempt P.L. 90-492, and

d. safe handling instructions.

4444

Producer/Grower – 1,000 Limit ExemptionProducer/Grower – 1,000 Limit Exemption

PPIAPPIA

A person may slaughter and A person may slaughter and process on his or her premises process on his or her premises poultry that he or she raised and poultry that he or she raised and they may distribute such poultry they may distribute such poultry without mandatory inspection to without mandatory inspection to customers in the State where customers in the State where slaughtered and processes. slaughtered and processes.

4545

Producer/Grower 1,000 Exemption Producer/Grower 1,000 Exemption LimitationsLimitations

1.1. The poultry is healthy when slaughtered; The poultry is healthy when slaughtered;

2.2. The slaughter and processing are The slaughter and processing are conducted under sanitary standards, conducted under sanitary standards, practices, and procedures that produce practices, and procedures that produce poultry products that are sound, clean, poultry products that are sound, clean, and fit for human food (not adulterated); and fit for human food (not adulterated);

3. The poultry is not misbranded is 3. The poultry is not misbranded is identified as exempt product and identified as exempt product and labeled;labeled;

4. The business operates under only 1 4. The business operates under only 1 exemption during calendar year;exemption during calendar year;

5.5. Product cannot bear the Official USDA Product cannot bear the Official USDA mark of inspection; andmark of inspection; and

6.6. Poultry products do not move in inter-Poultry products do not move in inter-state commerce.state commerce.

4646

Labeling Producer/Grower – 1,000 Limit Labeling Producer/Grower – 1,000 Limit ExemptionExemption

The shipping containers, when distributed in intrastate commerce, (instead of all the required features of a label for inspected product) bear:

a. the processor’s name, b. the address, and c. the statement, Exempt P.L. 90-492.

Safe Handling Instructions FSIS expects the 1,000 limit poultry sold in commerce

to bear safe handing instructions.

Label/Identifying Items