2016 regional meetings - ontariochicken.ca
TRANSCRIPT
2
TODAY’S AGENDA
CFO Performance Report
___________________________________________________
Production and Demand, and Pricing
___________________________________________________
CFO Connects
___________________________________________________
CFO Communicates
___________________________________________________
FBCC – Actively Preparing for AI Outbreaks
___________________________________________________
Latest Developments on Sustainable Chicken Production
___________________________________________________
We Value Your Feedback – Consultation Sessions
3
Communications and Disclosure:
Communications is a core CFO value. All communications reflect on CFO’s regulatory role,
image and business. As such, CFO will strive to provide relevant, honest, accurate and timely
information to stakeholders about its performance and to make clear disclosures in all public
reports. CFO is committed to communicating openly about its operations without
compromising regulatory, proprietary and confidential information.
Forward Looking ,“Safe Harbor” Statement:
This presentation may contain certain forward-looking statements. These forward-looking
statements speak to conditions only as of the date on which these statements are made. CFO
cautions stakeholders not to place undue reliance on any forward-looking statements as a
number of factors could cause actual future results, conditions, actions or events to differ
materially from the targets, expectations, estimates or intentions expressed in the forward-
looking statements.
Fresh Ideas, Growing Together
2016 Regional Meetings
Henry Zantingh & Rob Dougans
CFO Performance Update
June/July 2016 CFO Farmer-Member Regional Meetings
• Way Forward Plan: Ambition, Strategy, and Action
• Executing for Results: 2016 Priority Initiatives
For discussion today
June/July 2016 CFO Farmer-Member Regional Meetings
Leading the Way Forward
OUR MISSION:
To lead positive change and
build value as Canada’s premier
provider of trusted, family-
farmed, safe, high quality
chicken
…AND HOW WE WILL ACHIEVE IT
Leadership
Accountability
Excellence
Collaboration
Innovation
June/July 2016 CFO Farmer-Member Regional Meetings
Leading the Way Forward:Setting the stage for sustainable growth and production
Supply Management Leader and Steward
Regulatory goals,
1. Deliver responsive value-creating regulation,
2. Promote farming and industry growth, stability and
sustainability through effective regulatory oversight,
3. Deliver effective compliance, supervision and
enforcement,
4. Be an accountable, effective and efficient organization
June/July 2016 CFO Farmer-Member Regional Meetings
Leading the Way Forward:Setting the stage for sustainable growth and production
Minimum Effective Regulation
Regulatory principles,
1. Establish a “case for action”
2. Define objectives and examine regulatory alternatives
3. Adopt the option with the greatest net benefit
4. Promote, communicate and educate for success
5. Consult effectively with stakeholders
6. Revisit regulation regularly
June/July 2016 CFO Farmer-Member Regional Meetings
We are committed to involving those who will be impacted by
CFO strategies, policies, regulations and standards
in the development process
Transparency, Accountability, Performance:Communications, outreach and participation at Regionals
June/July 2016 CFO Farmer-Member Regional Meetings
• Way Forward Plan: Ambition, Strategy, and Action
• Executing for Results: 2016 Priority Initiatives
For discussion today
June/July 2016 CFO Farmer-Member Regional Meetings
Strategically evolve, build and expand CFO’s business
portfolio: 3 key segments for profitable growth
Supply Management
Steward and
Regulator
Farmer-Member
Business Advocate
Three business segments
- multiple product areas Value
Chain Partner
CFO
Core
Products & programs
1
CFO
Specialty
Products & programs
2
CFO
Community
Products & programs
3
Build and Leverage Leading Positions in Three Attractive Strategic Market Segments
Established
Developing
Emerging & New
June/July 2016 CFO Farmer-Member Regional Meetings
Evolving and strengthening CFO’s business portfolio to
achieve significant, sustainable performance
Supply Management
Steward and
Regulator
Farmer-Member
Business Advocate
Industry Value
Chain PartnerCFO
Core
Products & programs
1
STABLE GROWTH
• Production Optimization: Drive reliability, safety and
efficiency
• Raised Without Antibiotics: Meet growing consumer
demand
• Modular Operations: Evolve industry value chain
logistics
• High Standards: Evolve to 3rd party audit assurance
• AMU Reduction: Implement a paced reduction plan
• International: Grow a profitable business
Established
June/July 2016 CFO Farmer-Member Regional Meetings
Evolving and strengthening CFO’s business portfolio to
achieve significant, sustainable performance
Supply Management
Steward and
Regulator
Farmer-Member
Business Advocate
Industry Value
Chain PartnerCFO
Specialty
Products & programs
2
FAST, PROFITABLE GROWTH
• Specialty Breeds: Scale-up
• Organic: Scale-up
• Kosher: Deliver Ontario solution
• Growth Driven Platforms: Identify and
develop new growth-driven platforms (GDP)
• New Entrant Processor: Support Organic
scale-up & sustainability
• International: Grow a profitable business
Developing
June/July 2016 CFO Farmer-Member Regional Meetings
Evolving and strengthening CFO’s business portfolio to
achieve significant, sustainable performance
Supply Management
Steward and
Regulator
Farmer-Member
Business Advocate
Industry Value
Chain PartnerCFO
Community
Products & programs
3
NEW GROWTH
• Family-Food: Active stewardship
• Artisanal: Pioneer, tap into new opportunities
and commercialize
• Local Niche: Pioneer, tap into new
opportunities and commercialize
• Innovation & Business Development: Launch,
leverage and invigorate growth
• New: “Seed for the future”- identify and
capture new opportunities
Emerging & New
June/July 2016 CFO Farmer-Member Regional Meetings
• Way Forward Plan: Ambition, Strategy, and Action
• Executing for Results: 2016 Priority Initiatives
For discussion today
June/July 2016 CFO Farmer-Member Regional Meetings
Sustainable Growth:Focus on system evolution and performance
National allocation
• Continue lead improving Ontario and national allocation approaches,
processes and outcomes
Ontario Pricing
• Maintain focus on fairness, transparency, stability
• Plan for the future
Advocacy
• Continue to engage politicians in Ontario and Federally
• Raise CFO profile, brand strength and effectiveness
Stakeholder engagement & trust
• Promote transparency and active engagement
• “Walk the talk” through communication and consultations
June/July 2016 CFO Farmer-Member Regional Meetings
Sustainable Growth:Focus on system evolution and performance
Growth-driven business platforms
• Identify and access consumer-led market(s) evolution to drive growth
World-class sustainable farming operations
• Develop solutions, technologies and tools to enhance animal welfare,
improve quality and optimize production
“Minimum Effective Regulation”
• Rethink policy and regulatory development, delivery, and impact
(efficiency, transparency, accountability, adaptability, and coherence)
June/July 2016 CFO Farmer-Member Regional Meetings
Sustainable Growth:CFO Connects- farming in the digital age
2016
2017
2018+
Deploy SAP enterprise technology and
communication platform
Digital Transformation of Industry
World-class cyber
security for assets & operations
safety
Harness platform through
Big Data, Real-time Analytics
and Mobility
Drive value-building
outcomes & stimulate
innovation
Measure & Report
Operational Success
Spread Ideas
Continued
modernization of
Industry by leveraging
current technology tools
Maximize benefits to
farmer-members &
industry
Deliver a faster, smarter
more flexible Industry
June/July 2016 CFO Farmer-Member Regional Meetings
Responsible national system leadership:The rapidly changing environment presents new challenges
June/July 2016 CFO Farmer-Member Regional Meetings
Premier Provider:Advancing sustainable production the CFO Way
RELIABILITY
SAFETY
EFFICIENCY
TECHNOLOGY
Highest Standards
Positive, Productive
Relationships
Faster
Innovation
We are focused on value creation in chicken production and marketing
June/July 2016 CFO Farmer-Member Regional Meetings
• As of February 19, 2017, the first quota period of the new year (A-142)
• A new 7-week growing cycle option
• Those currently growing and marketing on a 12-week cycle will be required to move to a 10, 9, 8, or 7 cycle
• CFO will continuously review production approaches to ensure better planning, operations management, control, and performance results
Sustainable Production:Extensive consultations support optimizing production cycles
June/July 2016 CFO Farmer-Member Regional Meetings
1203 ACTIVE FARMS 3148 PRODUCTION FLOORS
Sustainable Production:Optimizing barn assets
June/July 2016 CFO Farmer-Member Regional Meetings
•Animal health and welfare needs driving change
•First processor now operating with modules
• Individual processors formulating their plans for the future
•CFO may develop regulations to facilitate a positive, productive industry transition
Sustainable Production:Ontario chicken industry is transitioning to modular loading
June/July 2016 CFO Farmer-Member Regional Meetings
Sustainable Production:Improving chick supply is a mission-critical priority
We strive to build effective, fair
and sustainable relationships
with our supplier-vendors who
deliver performance:
optimizing quality, cost, service,
speed and flexibility
218 Million Chicks Purchased*
$158 Million
*Domestic & Imported
June/July 2016 CFO Farmer-Member Regional Meetings
Where required, we are advancing
strategies to set the production
performance standards in our
chicken sector
Sustainable Production:Delivering “Ontario First” standards
June/July 2016 CFO Farmer-Member Regional Meetings
Supply Management Performance: Being a governance leader, delivering results
We ensure the responsible, value-driven management
and control of CFO through:
1. Strategic leadership and accountability
2. Risk management and continuous improvement
3. Key stakeholder communications
4. Performance management against the agreed to key
goals
5. Transparent, timely and relevant reporting
6. Effective succession
June/July 2016 CFO Farmer-Member Regional Meetings
Delivering Good Governance:Execution of the governance plan is well underway
We are actively enhancing how we recruit and evaluate Board
Directors
• Diversity & Inclusion Statement
• Board Director& District Committee Representative
Recruitment Matrix
• Candidate Nomination Processes
June/July 2016 CFO Farmer-Member Regional Meetings
We work together, unified by our respect for each other, CFO values, and the
pursuit of our business strategy. Diversity at CFO is understanding,
recognizing, and valuing the differences that make each person unique.
CFO is committed to developing a diverse Board, District Committee
Representatives and staff-associate team that represents the communities
that CFO serves within Ontario, and strengthens our role in the industry.
Delivering Good Governance:Diversity & inclusion from strategy into action
June/July 2016 CFO Farmer-Member Regional Meetings
Delivering Good Governance:Director and District Representative Recruitment
Seeking The Right Mix of Skill & Experience
Recruitment MatrixHigh Qualified Candidates
• Successful Farmer Respected with-in the farmer community
Demonstrated good business practices
Progressive & innovative
• Community Involvement Active and engaged in the community
Experience with different organizations
• Leadership Positions Leadership experience not only in agriculture
but from a variety of organizations
• Lifelong Learning Ongoing, voluntary and self-motivated
• Effective Communicator Skilled at conveying information and ideas
Works effectively with others
June/July 2016 CFO Farmer-Member Regional Meetings
Delivering Good Governance:Board & DCR Recruitment 2016
Recruitment plan for Districts 1-5
June/July:
• Regional meetings announcement
• Prepare list of quota holders within each election district including certain demographics (TBD),
canvass feedback from field and staff
• Communications: website enhancements to include nominations matrix and refresh of
Responsible Leadership section
July:
• Digital campaign kick-off
• Outreach survey -to identify any interested candidates or farmers wishing to learn more
August:
• Pool together internal assessment and survey results for G&L committee
• Develop “recruitment information” package for candidates
August/September:
• Begin outreach strategy (TBD) to potential candidates
October/November:
• Election campaign begins
June/July 2016 CFO Farmer-Member Regional Meetings
Significant opportunity
Business scale
Value creation, expanding profit pools
Digital industry ecosystem
Progressive supply management leadership
A tested team
Key Takeaways:The investment rationale for Ontario chicken is compelling
June/July 2016 CFO Farmer-Member Regional Meetings
Thank you for your trust, confidence
and continuous support!
Key Takeaways:Our way forward value creating plan is delivering results
36
James Corpuz
Supervisor - Pricing, Markets
and Business Analyses
PRODUCTION AND DEMAND, AND PRICING
37
Ontario has been experiencing accelerated growth in 2016
Feed
Chick
2016 is based on allocations to A-140
38
Chicken has been gaining market share from other
meat proteins over time
Most of the recent gains have been due to supply
challenges in beef
Chicken
Beef + Pork
Beef supply has began expanding in 2015, herd
expansion takes 3-4 years
Chicken is expected to grow above historical
norms, but at a moderating rate as beef supply
normalizes
40
2017 Outlook: moderating growth
• Growth in imports is
primarily driven by
growth in Imports
Labelled Fowl and
the Duty Relief
Program
• CFO is working
closely with CFC in
its efforts to control
broiler chicken
imports
41
Domestic production has been growing but losing market
share to imports
42
CFO focuses on improving intelligence on market demand
Data Source: Direct Link
Data for foodservice dollar and volume
sales for chicken
Foodservice Channel
Data Source: Nielsen MarketTrack
Data for retail dollar and volume sales for
the following categories:
o Fresh protein meat (chicken, beef, pork,
turkey, all other)
o Frozen chicken products
Retail Channel
*Estimated by Restaurants Canada
~62% market share* ~38% market share*
CFO has provided thought leadership to CFC stakeholders by providing
insights on all material consumer channels
CFO actively works to influence CFC stakeholders in setting allocations that
meet market demand
43
Ontario FGMLP is now underpinned by a COP Formula
Regulation 402
COP Formula
Negotiating Agency
Chicken Farmers of
Ontario
Ontario Licenced
Processors
Agreement OR Arbitration
Farm-Gate Minimum Live Price
44
Resetting with surveys is required at least every 5 years,
next COPF survey is required in 2018
2012 2013 2014 2015 2016 2017 2018 2019
Y1 Y2 Y3 Y4 Y5
SurveyCost yearIntended
implementation
Actual
implementation
Y1
SurveyCost yearPlanned
implementation
COPF 1.0
COPF 2.0
Annual
Updates &
Adjustment
Annual
Updates &
Adjustment
Annual
Updates &
Adjustment
Annual
Updates &
Adjustment
48
Value: Activation of Farmer-Members
Objective Value
• CFO Connects has resulted in a huge “paradigm shift” in the
chicken industry – many farmers who we all thought would not
successfully convert from a paper-based system to a digital
system
• System went “live” on June 14, 2015
• 1166 farms activated in 337 days
• Number of forms submitted via the portal to date
- > 9500 Form 3’s
- > 30,000 Form 6’s
• Ambitious training plan accomplished with limited resources
• Solution implemented for “non-digital” farmers
• All farmer-members
activated on CFO
Connects
March 2014 Trace SWOT Analysis – “Wide cross-section of farmers with respect to technology capability and interest in electronic data capture”
49
3.4 Risk ManagementFarmer-Member Digital On-Boarding
11.3%
60.9%
27.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
One-on-One Workshop Webinar
50
Value: Activation of Processors
Objective Value
• 24 processors activated
• Relationships with our processors are better than they have
ever been
• Activation team took the time to understand individual business
processes
• Worked closely with processors following activation to ensure
that the system was meeting their needs
• Implemented almost 40 system enhancements
• All Processors
activated on CFO
Connects
March 2014 Trace SWOT Analysis – “Processor engagement and acceptance was not originally expected to be a barrier to success however it did prove to be a challenge throughout the Trace project”
51
Value: Activation of Transporters
Objective Value
• 17 live-haul transporters activated
• Close to 200 driver accounts created
• Driver texting process accounts for ~ 90 to 95 % of driver data
entry
• 2 transporters have implemented electronic Bill of Lading
systems with direct data upload to the Form 6; 1 more company
has plans to implement
• All Transporters
activated on CFO
Connects
March 2014 Trace SWOT Analysis – “Transport sector not tech-savvy and resistant to change. Transport sector wary of incurring additional costs. Moderate success on transporter data entry (company-dependent) with negative impact on processor support for roll out of Form 6”
52
Value: Activation of Other Industry Stakeholders
Objective Value
CFIA
• Strengthened relationships at national and regional levels
• Have adapted the system to accommodate CFIA regulatory
requirements, including regional differences (Quebec vs
Ontario)
OMAFRA
• Overcame resistance to use of digital forms
Hatcheries
• Streamlined data transfer process from hatcheries to CFO with
onus on hatcheries for accurate, timely data reporting
• Signed agreement with Quebec hatchery association (LCQ) to
have Quebec hatcheries report placement data to CFO
• Complete activation of
all industry
stakeholders
54
Version 2.0: Key Highlights
Objective Value
Drive self-serve model
• Make historical data available to farmer-members through
reporting
• Build portal functionality & value
• Reduce data entry and data errors
• Meet processor business requirements
Specialty Portal
• Integrate specialty farmer-members into CFO Connects
• Develop the base model for other community programs
Contracting
Processor Enhancements
Specialty Portal
Historical Reports
55
Version 3.0: Key Highlights
Objective Value
Complete Activation Enhancements
• Further demonstrate the business partnership with Ontario’s
processing community
• Increase the usability of the CFO Connects portal for
processors
Align Web Presence
• Create a cohesive feel between the CFO websites
• Allow farmer-members to log in once for their business
transactions and resource material
• Move Board and DCR portal to best in class Microsoft
SharePoint infrastructure
Complete Activation
Enhancements
Portal Alignment
56
Version 4.0: Key Highlights
Objective Value
Industry Analytics
• Increased reporting capability will allow the industry value
chain to greatly improve its efficiency
• Monitor the health and efficiency of the industry as a whole
• Allow better forecasting capability for industry stakeholders
Advance Mobile Platform
• Develop mobile applications to provide secure and user
friendly way to access CFO Connects
Agri-Food Analytics
Mobile Apps
MISSION
Proactively manage (prepare, respond and recover) incidents and emergencies for the poultry industry
VISION
Achieve an Emergency-free Ontario Poultry Industry
Providing a highly effective, rapid response system to manage
incidents and emergencies for Ontario’s poultry industry
CFO Regional Meetings
Dr. Tom BakerIncident Commander/ManagerFeather Board Command Centre
Actively Preparing for AI outbreaks: Business Continuity and Disease Insurance
Providing a highly effective rapid response system to manage
incidents and emergencies for Ontario’s poultry industry
70
International AI Assessment
71
• Over the past 50 years, one new or variant disease every year in North America
• In last 2 years, 41 outbreaks of H5 and H7 avian influenza (AI) in 20 countries
• Proof that outbreaks are associated with biosecurity breaches. Its not random!
Risk management is critical for the sustainability
and profitability of the Ontario poultry industry
72
Prevention
Preparedness
Response
Recovery
COSTS
FBCC Disease Recovery Initiative
“Sustaining the Poultry Industry in the face of Infectious Disease Outbreaks utilizing Movement Permits and Risk Transfer Programs”
• Federal government’s Agri-Risk Initiative supports research and development of new risk management tools
• FBCC just received conditional approval for a non-repayable contribution of up to $298,800 to explore business continuity and insurance options for Ontario
• Final approval pending for July 1 start up, based on finalizing contribution agreement
73
Project Benefits
• Incent farmers to report disease
• Incent farmers to accelerate C&D
• Encourage biosecurity compliance
• Avoid large unbudgeted costs
• Protect a secure food supply through business continuity
74
Two Key Project Objectives
1. Expedite approval of CFIA movement permits during reportable disease outbreaks through alignment of industry biosecurity standards
2. Identify potential AI insurance options for farmers by assessing disease risk in Ontario and holding industry consultations
75
Biosecurity Activities
1. Farmer consultations on AI risk and biosecurity protocols
2. Industry wide consultations
3. Review and align biosecurity SOPs across industry
4. Develop and simulate recovery planning protocols
76
Insurance Activities
1. Producer consultations
2. Review previous Ontario insurance studies
3. Update/create commodity specific Loss Quantification Models
4. Model disease scenarios
5. Conduct actuarial analysis on disease modelling outputs
77
Food for thought
• Do you feel adequately prepared to face an AI outbreak on your farm or in your vicinity?
• Have you made any changes to your biosecurity plan, SOPs or related practices since last spring’s Avian Influenza outbreak in south western Ontario? Please indicate what they were?
• What are your SOPs for self-quarantine in case of a suspected serious infectious disease on your farm?
• How would you compare your biosecurity standards with the suppliers and service providers who come on your farm?
• Do you currently have AI insurance? Have you ever had a policy? If not why not? Do your feel current available insurance products are sufficient in coverage? Do you feel premiums are appropriate?
78
Dr. Gwen Zellen, Vice President
Quality, Technical Affairs and Sustainability
Fresh Ideas, Growing Together
Latest developments on sustainable chicken production
A world without antibiotics?
81
USA Centers for Disease Control and Prevention
(CDC)• 23,000 death/year due to AMR
• 2,000,000+ illnesses caused by AMR
Human Deaths in Europe and Cephalosporin use
in Poultry• 1,518 additional deaths
• Increase of 67,236 days of hospital admissions
AMR is a One-Health Issue
• Science lost the leading mandate
• EU - 2006 – removed use of all
antibiotics for growth promotion
• EU - 2011 – recommendation to
restrict preventive use
• UK O’Neill Report (May 19, 2016)
82
With international recognition, mandate switched from science to politics with increased media attention and legislative recognition
83
2. Restrictions on certain types
of highly critical antibiotics.
Too many antibiotics that are
now last-line drugs for
humans are being used in
agriculture; action should be
taken on this urgently by an
international panel.
3. We must improve
transparency from food
producers on the antibiotics
used to raise the meat that
we eat, to enable consumers
to make more informed
purchase decisions.
Animal Agriculture Three Key Recommendations
• 200 delegates and speakers from 27 countries
• Animal health/pharmaceutics, equipment and feed manufacturers,
distributors, consultants, farmers, veterinarians, primary breeders,
businesses, integrated companies, academics, corporations, grocer,
publisher
85
Poultry Summit Europe 2016: A world without Antibiotics?Wake up time to improve hatchery to meet welfare and ABF Production
86
Poultry Summit addressed SIX KEY CHALLENGES of the poultry
industry, offering themed insights from a customer/consumer, scientific and industrial perspective:
1. Genetic Selection, Breeding and Early Feeding
2. Biosecurity
3. Stress Reduction on the Farm
4. Diet Optimization
5. Animal Welfare and Sustainability
6. Consumer Acceptance
A world without antibiotics?
Value creation – From Feed to Food
• Cobb geneticist
• To meet consumer demand for raising without
antibiotics, need to focus on selection for intestinal
health and nutrition
• Research on response to disease challenges
• 3-5 year window for improvements
• Wake up time to improve hatchery to meet welfare and ABF
production
• Hatchery – Superior conditions fundamental in antibiotic
free production
• Temperature, light, water, feed, stress free
• Time in hatchery is now 40% of lifespan87
Genetic Selection, Breeding and Early Feeding
Temperature
• Uniform
• Overheat, direct relationship to smaller, poor navel
• Research – lower incubation (100F) = 64% improvement organ
weights
Light
• Light schedule during incubation positively impacts bone development
• Light during and after hatch is important
Stress free
• Feed, water and light available
• Minimum handling and noise as hatch cradle is transport basket
allows rest
• More space and more hygienic
88
HatchCare and Viscon provide superior conditions
fundamental in antibiotic free production
90
• Egg shells separated from
chicks increased hygiene and
space
• Immediate access to feed and
water with
95% crop fill
• Chicks stay in hatch cradle for
delivery
• Less handling reduces stress
and increase hygiene
• 4 grams/chick
HatchCare incubators provide superior conditions
fundamental in antibiotic free production
• Time of hatch and access to feed and water impacts on gut
development
• First hours of life important for intestinal growth and
development; longer you wait, the less impact nutrition will
have
• Villi length and crypt depth grow exponentially; negative
impact also exponential
• Improve immune development; when feed and water not
available, yolk is burned for tissue growth instead of immunity
• Shift from yolk lipids, to building based on carbohydrates and
protein 91
Science supporting value of early feed and water
92
• HatchCare in 4-6 hatcheries;
2 hatcheries supply 40-60%
• Chicks eat during transport
• Chicks cost 20% more
• 10-15% farmers hatch on farm
• 12-15% heavier - farm, 10% heavier -7 days, 5% heavier - processing (saves
1-2 days); farmer report less antibiotic use
• Several farmer hatchery Co-ops have arisen to control chick inputs; more
integration - “farmers independent and want to maintain control”
Netherlands chicken production starts with quality chicks
• HatchCare in 4-6 countries - how do we promote in Ontario?
• USA – Bell and Evans, Fredericksburg, PA
• Canada – Synergy Agri Group, Nova Scotia
• PIC Poultry Health Day – June 9
Hatch Care Incubation & Chick Care System – A Canadian hatchery’s
early experiences of raising chicks with early feeding – Doug Kaizer and
Ron Testrote, Synergy Agri Group, NS
Everything I know about raising Antibiotic Free Birds for many years –
Dr. Gary Gladys, Pennsylvania Poultry Consultant
93
Chick quality a worldwide issue:
HatchCare in other countries
94
1.Genetic Selection, Breeding and Early Feeding
2.Biosecurity
3.Stress Reduction on the Farm
4.Diet Optimization
5.Animal Welfare and Sustainability
6.Consumer Acceptance
A world without Antibiotics?
Value creation from Feed to Food
• Improvements in hatchery biosecurity through technology
and automation
• Dead and infertile eggs removed
• In-ovo vaccination of fertile eggs only
• Chicks separated from egg shells
• Chicks remain in hatch baskets (not moved, handled or
conveyed)
• Discussed tool for farmers to self assess biosecurity; level of
biosecurity of farmers in Netherlands unknown
• Question regarding cleaning and disinfecting between
flocks; science not available (farmers in Netherlands clean
and disinfect between each flock)95
Hatchery and on-farm biosecurity are key to reduce
challenges when growing without antibiotics
• Salmonella testing in all broiler flocks in Netherlands at 4
weeks (mandated by processor) – slaughtered at end of day
• Norway – Salmonella positive broiler flocks are culled and not
processed
• Campylobacter in Canada (PHAC research)
• remains number one cause of foodborne illness; linked to
Category 1 resistance
• most important source of contamination appears to be barn
and farm environment, particularly in barns that were
improperly cleaned and disinfected, had insufficient
downtime between flocks and poor biosecurity practices
96
Increased pressure for on-farm monitoring and control of
Salmonella and Campylobacter
97
1.Genetic Selection, Breeding and Early Feeding
2.Biosecurity
3.Stress Reduction on the Farm
4.Diet Optimization
5.Animal Welfare and Sustainability
6.Consumer Acceptance
A world without Antibiotics?
Value creation from Feed to Food
• Feed additives have been used for the last 30 years in
poultry
• reduces pathogenic bacteria
• modulates and increases beneficial gut microflora to
take their place
• improves health and performance
• Research to improve availability and impact of various feed
additives
Animal welfare and sustainability important to balance
when raising birds without antibiotics
98
Diet optimization is an important tool to raise birds without
antibiotics
A world without Antibiotics? Value creation from Feed to Food
99
1.Genetic Selection, Breeding and Early Feeding
2.Biosecurity
3.Stress Reduction on the Farm
4.Diet Optimization
5.Animal Welfare and Sustainability
6.Consumer Acceptance
A world without Antibiotics?
Value creation From Feed to Food
• TESCO Sustainable Farming Group – Poultry and Eggs
monitor antibiotic use in the poultry sector
• Data and analysis is key: challenge of national differences
in constraints on usage and lack of accurate reporting data
• Tesco Approach: Outcome Measures (OMS) – move towards
use of outcomes derived from animal based measures in
both farm and slaughter situations
• % mortality, leg culls, hock burn, pododermatitis
• antibiotic usage until end of life
• Tesco Code of Practice: Drugs that are of “critical
importance” must not be used preferentially10
0
Consumer acceptance driving transparency in antibiotic
usage: Communication is key