annual report 2007 chicken farmers of saskatchewan · budget report (2007 ... price advantage for...

Chicken Farmers of Saskatchewan

Annual Report 2007

A world class Saskatchewan chicken industry built on innovation,

profitability and the ability of stakeholders to work together for the

good of the industry as a whole.

Through a dynamic, innovative leadership team, to boldly develop a

profitable, viable and expanding Saskatchewan chicken industry.

Through visionary leadership, CFS is committed to five core values:

Saskatchewan First, Innovation, Excellence, Partnership, and Honesty,

Integrity, Persistence and Decisiveness in managing board activities

VISION


ability of stakeholders to work together for the

good of the industry as a whole.

MISSION



VALUES

leadership, CFS is committed to five core values:


Integrity, Persistence and Decisiveness in managing board activities


ability of stakeholders to work together for the



leadership, CFS is committed to five core values:


Integrity, Persistence and Decisiveness in managing board activities.

Chicken Farmers of Saskatchewan | Table of Contents

3

Table of Contents

CFS BOARD OF DIRECTORS ..................................................................................................... 5

CFS BOARD OFFICE STAFF....................................................................................................... 6

CFS ADMINISTRATOR’S REPORT ............................................................................................. 7

CHAIRMAN’S REPORT ............................................................................................................ 9

C.E.O’S REPORT.................................................................................................................... 12

CFC DIRECTOR’S REPORT ...................................................................................................... 14

MARKET REVIEW ................................................................................................................. 16

UPDATE ON INTERNATIONAL TRADE NEGOTIATIONS .............................................................................. 19

SASKATCHEWAN POULTRY EXTENSION SERVICE ................................................................... 20

I. INTRODUCTION ...................................................................................................................... 21

Program Objectives: .............................................................................................................. 21

Personnel: .............................................................................................................................. 21

II. GENERAL ............................................................................................................................... 22

2007 Saskatchewan Poultry Industry Conference ................................................................. 22

Presentations ......................................................................................................................... 22

Newsletters ............................................................................................................................ 22

Emergency Response Planning .............................................................................................. 23

Chicken Farmers of Saskatchewan Annual Report

4 Table of Contents | Chicken Farmers of Saskatchewan

Avian Influenza Response ...................................................................................................... 23

Avian Influenza Recovery ...................................................................................................... 23

Poultry Transportation .......................................................................................................... 24

Acknowledgements ............................................................................................................... 24

III. BROILER HATCHING EGG PRODUCERS ................................................................................. 25

IV. CHICKEN PRODUCERS .......................................................................................................... 26

V. TURKEY PRODUCERS ............................................................................................................. 27

VI. TABLE EGG PRODUCERS ....................................................................................................... 28

BUDGET REPORT (2007) ............................................................................................................ 30

BUDGET PREDICTIONS ............................................................................................................... 30

CHICKEN FARMERS OF SASKATCHEWAN FINANCIAL STATEMENTS ........................................ 31

CHICKEN FARMERS OF SASKATCHEWAN 2008 PROPOSED BUDGET ....................................... 42

Chicken Farmers of Saskatchewan | Board of Directors

5

CFS Board of Directors

Left to Right: Bonnie Morrison, Nick Langelaar, Terry Knippel, Mike Pickard, Diane Pastoor

POSITIONS AND TERMS OF OFFICE

Nick Langelaar, Director

Board Chairman

Market Committee

Term Completes December 31, 2008

Terry Knippel, Director

Board Vice-Chairman

Market Committee

Poultry Council


Diane Pastoor, Director

Chicken Farmers of Canada Director

Production Committee


Mike Pickard, Director

Chicken Farmers of Canada Alternate

Market Committee

Canadian Broiler Committee


Bonnie Morrison, Director

Production Committee


Dale Sigurdson (absent from photo)

CFS Board Administrator

6 Office Staff | Chicken Farmers of Saskatchewan

CFS Board Office Staff

Left to Right: Colleen Kohlruss, Stephanie Ludwig, Clinton Monchuk, Gale Kellington

POSITIONS

Clinton Monchuk

Chief Executive Officer

Colleen Kohlruss

Executive Assistant

Gale Kellington

Accounting and Administration

Stephanie Ludwig

Poultry Analyst

Aaron Neufeld (absent from photo)

Auditor

Janice Sopatyk (absent from photo)

Auditor

Chicken Farmers of Saskatchewan | Administrator’s Report

7

CFS Administrator’s Report

DALE SIGURDSON

I welcome the opportunity to report on 2007 activities of the Chicken Farmers of Saskatchewan.

This past year presented the industry with many challenges, notably the rapid rise in feed grain

costs and the outbreak of Avian Influenza (A.I.) on a Saskatchewan Broiler Hatching Egg

producer’s farm.

The rapid rise in feed grain prices in 2007 was driven by world production shortfalls and

demand increases driven by the new energy uses for grain. This removed Saskatchewan’s

advantage as the province with the lowest grain prices. For 2008 it appears that our relative

price advantage for feed grains should improve and producers will begin to see higher broiler

chicken prices that are reflective of the higher feed grain prices.

With the outbreak of A.I. all the feather boards and the two provincial processors came

together to assist the producer with the cleaning and disinfecting of their premise. Through

this adversity the industry was able to work together to overcome a difficult challenge and has

learned some valuable lessons as to how to address future outbreaks.

The initiative to amalgamate the Saskatchewan Broiler Hatching Egg Producer’s Marketing

Board (SBHEPMB) and the Chicken Farmers of Saskatchewan Board was put on hold in 2007

until the SBHEPB is able to resolve an outstanding legal matter. Progress was made on merging

the administration of the two organizations, with the hiring of a new Chief Executive Officer, an

8 Administrator’s Report | Chicken Farmers of Saskatchewan

Administration and Accounting Assistant and a Poultry Analyst. As well, the office was moved

to Saskatoon where it is closer to production, research and processors.

In 2007, the Agri-Food Council approved order No. 36/07 an order addressing overproduction

charges. The order sets out the policy for addressing a producer who produces above their

allocation for that cycle. The Agri-Food Council also passed order No.38/07, an order

addressing the Development Fund Levy. The order removed the $0.03 per kilogram levy on B

quota live chicken and replaced it with a levy of $00.025 per kilogram of live chicken on all

quota classifications.

In 2007, the board revisited its policy on allocating New Market Development Quota and

reworked it to ensure that all producers were being treated equally.

I would like to thank the CFS board and staff for all there assistance in helping me move into my

position as Administrator, I have very much enjoyed my experience with the board and staff.

I would also like to thank Terry Scott for his efforts as Administrator prior to my assuming the

role in August of 2007, and for all his assistance and guidance to myself as I moved into the

position.

Sincerely,

Dale Sigurdson

CFS Administrator

Chicken Farmers of Saskatchewan | Chairman’s Report

9

Chairman’s Report

NICK LANGELAAR

As I’m writing this, after a month of very cold weather, temperatures are beginning to

turnaround. In a sense, it’s a new beginning again. In many ways, for the chicken industry

in Saskatchewan, 2007 was a year when we saw many new beginnings taking place.

After 40 years in Regina, the CFS office moved to Saskatoon, where the bulk of the

production in the province is located. There were new beginnings for several new staff.

Clinton Monchuk was chosen by the board as our Chief Executive Officer. His position is

shared with the Broiler Hatching Egg board (BHE) on an 80/20 basis. He comes with much

knowledge in world trade matters and with the ongoing WTO negotiations that are a

serious concern to supply management, this definitely is beneficial to our industry. The

Board feels that we have positioned ourselves well to deal with the many new challenges

that face our industry on all sides.

The 2007 high-path avian influenza outbreak in Saskatchewan was also a first. In a sense,

this was surprising and disappointing. It drove the message home that no place in the world

can claim immunity from A.I. As growers, we need to do our due diligence in helping

minimize that risk by maintaining effective bio-security practices. The wide open spaces in

our province certainly helped contain this outbreak to just one farm. There now is a

greater urgency to press on with contingency planning and minimum farm distance

requirements.

10 Chairman’s Report | Chicken Farmers of Saskatchewan

There were new policies relating to underproduction, the 3 cent check-off, and the modified

trust fund proposal.

If the trend in the past year is any indicator (other than A79), significant underproduction in

Saskatchewan may be history. Growers need to be complimented for making a more

concerted effort to fill their quotas.

Although the regulations that would implement the modified trust fund have been delayed,

the CFS Board was able to get approval from the Agri-Food Council to reduce the 3 cent

check-off on the B quota to a ¼ cent on all quotas. It is still the goal to implement the trust

fund proposal but for various reasons, it has taken longer than what was hoped for.

A year ago, it was the plan to amalgamate the CFS and BHE into one functioning board.

Today, that plan is on hold indefinitely because there is an unacceptable level of liability on

CFS assets in a lawsuit on the BHE side. Until that issue is permanently resolved, the

amalgamation will not proceed.

Over the past year, there were new beginnings in Saskatchewan for the ethanol industry.

This is having a dramatic impact on the cost of growing food and probably will for the

foreseeable future. We need to explore any and all cost effective means to grow chicken.

However, our country will have to realize that using feed grains for gasoline and diesel fuels

will adversely affect our ability to grow inexpensive food like we have for many decades.

The dramatic rise in the value of the Canadian dollar in 2007 had a significant impact on the

cost of importing chicken and exporting to world markets.

Last August, the board and processors participated in a one day workshop on strategic

planning. Goals were set for 2007/08 and exercises like these help keep the board focused

with an ‘eye on the horizon’. I encourage growers to read this document.

Chicken Farmers of Saskatchewan | Chairman’s Report

11

Last year also saw some changes at the board and staff level. In March, Mike Pickard was

elected to fill the chair left by Eugene Zagrodney’s passing. In August, Dale Sigurdson

replaced Terry Scott as the government administrator. That same month, Van Stewart also

submitted his resignation after 15 years of service. We thank both Terry and Van for their

inputs and service and we wish them all the very best. Mike Pickard and Terry Knippel were

re-elected for 3 year terms this past December. Diane Pastoor (CFC Director) and Bonnie

Morrison make up the rest of the board.

Although it has been a very busy year, it has been a real pleasure working with the board.

You have a board that is hard working, passionate, decisive, sensitive, and definitely has the

ability to effectively lead our industry.

For the CFS Board,

Nick Langelaar, Chair

12 C.E.O’s Report| Chicken Farmers of Saskatchewan

C.E.O’s Report

CLINTON MONCHUK

This past year can be summed up as a year of change for the Chicken Farmers of Saskatchewan.

Since my appointment as the CEO, the CFS office has seen changes in staff, location and the

adoption of some new policies that promote equity and fairness. All of these changes move

towards effectively following our Strategic Plan that was updated in August of 2007.

Saskatchewan’s production in the past year saw some ups and downs. The summer cycle of

A79 proved to be the most challenging as two weeks of major heat and humidity resulted in the

province only producing 90% of our allocated production. Aside from A79 our production to

allocation was consistently between 98.8% and 103.4%, which is a significant improvement

from 2006. As well, with the newly implemented NMDQ policy producers can expect more

consistency with producer specific NMDQ allocation throughout 2008. With respect to

transfers and leases, the office saw 21 quota transfers and an average of 1,908,064 kg of leasing

in/out per cycle between A76 and A81 (inclusive).

One significant factor that came into effect in 2007 was increasing costs of production,

primarily feed. American energy policy, droughts in Australia and shrinking global storage

stocks have resulted in grain and oilseed prices hitting all time highs in Saskatchewan. Largely

due to these grain prices live chicken prices for Saskatchewan producers have increased

$0.163/kg between the yearend cycles of A75 and A81.

Chicken Farmers of Saskatchewan | C.E.O’s Report 13

Aside from production related issues the CFS board office has been working diligently on both

OFFSAP and animal care issues. The vast majority of producers are following OFFSAP effectively

however we still seem to have issues with producers not getting their corrective action

responses completed by their specified dates. I would make the request to producers that they

make an effort to complete their corrective actions in the timeline set out by the auditors.

Regarding the proposed animal care program, we appreciate the responses received from the

producer meetings and will keep producers as up to date as possible as this program advances.

September 27, 2007 marked the first H7N3 avian influenza event in Saskatchewan. Between

September 27th and the end of the year our office has been working with the Saskatchewan

Poultry Industry Emergency Management Team (SPIEMT) to communicate with producers,

government and other industry stakeholders. Going forward the CFS will continue to work with

SPIEMT as we refine our response to disease outbreak situations like this.

Looking into 2008 the CFS will continue to adapt and change to meet the needs of our

producers. The CFS is planning on implementing a web-based program that will allow

producers to check their production number via the internet. Saskatchewan producers can

anticipate this program up and running by the fall of 2008.

I would like to thank all producers that have stopped by the office, phoned or given me emails

to introduce themselves to me. I look forward to working with a progressive group of

producers in my home province!

Yours truly,

Clinton Monchuk

14 CFC Director’s Report| Chicken Farmers of Saskatchewan

CFC Director’s Report

DIANE PASTOOR

This past year being the Chicken Farmers of Canada director for Saskatchewan, has been

challenging and rewarding.

The Avian Influenza outbreak here in Saskatchewan, brought the biggest challenge as an

industry for 2007.

We were able to deal with the outbreak effectively, with constant contact with government,

industry, and officials here, and at CFC. The outbreak was fortunately contained to one farm.

Since the outbreak in B.C., there has been plenty learned about this virus and all of our testing

and assumptions were put to the test. The Saskatchewan Poultry Industry Emergency

Management Team (SPIEMPT) was put into action, making decisions immediately and put

emergency plans into place. The media was informed through CFC and media attention was

fairly small. Thanks to the communications staff at the CFC.

The affected farm has been cleaned and disinfected and the quarantine was lifted from CFIA on

January 18th. 2008. Even though this farm is starting to get back on its feet, it will be a long

time coming before it will be at its full capacity. Raising Government awareness on the lack of

funding for AI outbreaks and other reportable diseases is ongoing by staff and Directors at CFC.

Early in 2007, CFC conducted a usage and attitude survey. This is a study done every three

years, enabling CFC to realize consumer current behaviors and attitudes regarding consumption

of chicken. The results of this survey showed that consumers are very confident that the

Chicken Farmers of Saskatchewan | CFC Director’s Report 15

Canadian chicken in their grocery stores is a very safe and healthy food choice. There is still a

need to educate consumers about how chickens are raised (not in cages) and what they are fed

(grain, and no hormones).

Also, this year at CFC, we participated in a Supply Management promotions video called; Good

Business, Great Chicken. This video was done with a lot of participation from growers to

processors and everyone in between whose businesses depend on our Supply Managed

system. These videos will be used to educate and promote, at government level, classrooms,

and lending institutes. The video was showcased at the producer meeting in the fall and was

very well received.

Production in 2007 was positive for all stakeholders, including growers, processors, and

downstream stakeholders. Canada enjoyed growth of just over 2 percent this past year due in

part to strong wholesale prices and stable storage stocks

Priorities for this next year continue to be:

• Government relations

• Processor relations

• Allocation and utilization

• Input costs/ live price

It is a pleasure to represent Saskatchewan in Ottawa and here at home. I look forward to

another year of working with staff and fellow board members here at CFS and at CFC.

Sincerely yours,

Diane Pastoor

CFC Director

16 Market Review| Chicken Farmers of Saskatchewan

Market Review

2007

CFS Quota Allocation

Cycle Range of Days

Allocation %

Base Price per

Kilogram A', 'Auction B'

Follow up

B'

A76 January 7, 2007 to March 3, 2007 95 90 $ 1.2170

A77 March 4, 2007 to April 27, 2007 95 90 $ 1.2620

A78 April 28, 2007 to June 23, 2007 98 98 $ 1.3165

A79 June 24, 2007 to August 18, 2007 100 100 $ 1.2955

A80 August 19, 2007 to October 13, 2007 95 89 $ 1.2980

A81 October 14, 2007 to December 8, 2007 95 91 $ 1.2930

CFS Quota Utilization

Cycle Allocation (kgs live) Production (kgs live) Utilization (%)

A76 8,049,302 8,205,067 101.9

A77 8,060,863 7,963,915 98.8

A78 8,516,489 8,438,425 99.1

A79 8,485,563 7,702,021 90.8

A80 8,033,486 7,945,983 98.9

A81 8,095,008 8,367,552 103.4

Chicken Farmers of Saskatchewan | Market Review 17

2008 Allocations and Adjusted Bases for Saskatchewan (kgs live)

Cycle Adjusted Base with NMDQ at 14% Allocated Production to SK % Over Base

A82 7,532,343 7,698,054 2.2

A83 7,933,034 8,178,957 3.1

A84 8,143,143 8,428,152 3.5

A85 8,484,024 8,551,897 0.8

A86 8,300,822 Not yet set -

A87 8,096,503 Not yet set -

A88 7,759,682 Not yet set -

Canada Quota Utilization

Cycle Allocation (kgs live) Production (kgs live) Utilization (%)

A76 206,638,968 207,306,944 100.3

A77 207,436,082 206,187,128 99.4

A78 218,297,810 217,537,407 99.7

A79 217,176,791 211,596,603 97.4

A80 207,919,435 208,197,841 100.1

A81 211,733,816 213,986,275 101.1

18 Market Review| Chicken Farmers of Saskatchewan

$1.0000

$1.0500

$1.1000

$1.1500

$1.2000

$1.2500

$1.3000

$1.3500

A69/A76 A70/A77

SK Base Price

0

10,000

20,000

30,000

40,000

50,000

60,000

2000

SK Annual Production

800,000

850,000

900,000

950,000

1,000,000

1,050,000

2000 2001

Canadian Annual Production


A70/A77 A71/A78 A72/A79 A73/A80 A74/A81 A75

SK Base Price ($/kg live)

2001 2002 2003 2004 2005 2006 2007

SK Annual Production (000 kgs live)

2001 2002 2003 2004 2005 2006 2007

Canadian Annual Production (000's kgs Evis.)

2006

2007

2007

2007

Chicken Farmers of Saskatchewan | Market Review 19

UPDATE ON INTERNATIONAL TRADE NEGOTIATIONS

There has been a lot of moving and shaking going on at the World Trade Organization (WTO) in

2007 and the first part of 2008. All eyes have been turned to the global forum to see if

negotiators can put together a deal before the 2008 U.S. presidential election. Significant

differences still remain between countries at the WTO, however the eventual agreement to a

Doha Round is imminent.

The most important area of these negotiations for the poultry industry focuses on market

access. A successful supply management system is dependent on three key areas, the ability to

set price, control imports and set production. If the industry loses the ability to control our

imports it will become more difficult to have an effective supply management system.

Under the existing market access component a sub-section called sensitive products is present.

This is the area where Canadian negotiators are trying to get both, all supply managed product

included and acceptable provisions surround the treatment of these products. Under the

sensitive products section the Canadian poultry industry would like to see no reductions in

over-quota tariffs and no increases in the amount of importation, which is the same position

defended publically by the Canadian government. This is an outcome based negotiation so it

remains difficult to assess where this agreement will leave the poultry industry in Canada when

it is concluded.

As the negotiations progress our national supply management representatives will continue to

have a strong presence in Geneva and at home in Ottawa to ensure your voices are heard

nationally and globally.

Clinton Monchuk

20 Saskatchewan Poultry Extension Services Report|

JANUARY

Prepared for:


Saskatchewan Egg Producers

Saskatchewan Turkey Producers

Saskatchewan Broiler Hatching Egg Producers

Lilydale Foods Inc.

Prairie Pride Natural Foods Ltd.

Dr. S. Gomis, Dept. of Veterinary Pathology, U of S

Dr. H.L. Classen, Dept. of Animal & Poultry Science, U of S

Prepared by:

Tennille Knezacek

Bob Goodhope

Saskatchewan Poultry Extension Services Report| Chicken Farmers of Saskatchewan

JANUARY – DECEMBER 2007


Saskatchewan Turkey Producers

Saskatchewan Broiler Hatching Egg Producers

Dr. S. Gomis, Dept. of Veterinary Pathology, U of S

assen, Dept. of Animal & Poultry Science, U of S

Saskatchewan Poultry Extension Service

University of Saskatchewan

Annual Report 2007


DECEMBER 2007

Saskatchewan Poultry Extension Service

University of Saskatchewan

Annual Report 2007

Chicken Farmers of Saskatchewan | Saskatchewan Poultry Extension Service Report 21

I. INTRODUCTION

The Saskatchewan Poultry Extension Service is funded by the four Saskatchewan Poultry

Marketing Boards, Lilydale and Prairie Pride Natural Foods. There are two service personnel: a

Poultry Scientist and a Veterinarian. The University of Saskatchewan provides an office for each

and access to university resources. Policies are established by the Saskatchewan Poultry Council

on recommendations by the Research and Extension Committee. The service is supervised and

administered by Drs. H.L. Classen and S. Gomis of the University of Saskatchewan.

Program Objectives:

1. Monitor industry performance.

2. Identify and solve industry problems.

3. Investigate individual production problems.

4. Communicate advances in poultry production.

5. Act as a liaison to individuals supplying feed, medication and equipment to the poultry

industry.

Personnel:

Tennille Knezacek, Poultry Scientist (306-966-6597)

Bob Goodhope, Poultry Veterinarian (306-966-7300)

22 Saskatchewan Poultry Extension Services Report| Chicken Farmers of Saskatchewan

II. GENERAL

2007 Saskatchewan Poultry Industry Conference

During the past year, the Poultry Extension service arranged to have speakers for the luncheons

and technical sessions at the annual Saskatchewan Poultry Industry Conference. In 2007, topics

and speakers were as follows: Anne Malleau, Animal Compassion Foundation, Why Should We

Care about Animal Welfare?; Crystal Mackay, Ontario Farm Animal Council, Poultry Welfare –

What’s the Big Flap?; Paul Schroeder and Rachelle Peterson, Canadian Food Inspection Agency,

On-Farm Feed Regulations and the Poultry Industry; Bud Malone, University of Delaware,

Catastrophic Mortality Composting Programs; Tennille Knezacek, University of Saskatchewan,

Are We Ready? Emergency Response Planning in Saskatchewan; Scott Wright, Feeds Innovation

Institute, Ethanol and Opportunities for Poultry Feeding.

The Saskatchewan Egg Producer of the Year Award was presented at the conference banquet to

William Kleinsasser from Bench Colony.

The Poultry Hall of Fame display from the North Battleford Western Development Museum was

digitized and presented to all producers at the conference banquet by Tennille Knezacek, Bert

Harman, Jason Bartoshewski and Hank Classen. A booklet describing the Poultry Hall of Fame

inductees was provided for all conference attendees.

Presentations

The 2007 fall meeting for the table egg producers was held in Swift Current on November 15th.

Presentations delivered by poultry extension were “Salmonella Monitoring Update” and “Avian

Influenza Response in Saskatchewan.” On November 26th, Poultry Extension presented “Avian

Influenza Response in Saskatchewan” at the fall turkey meeting in the afternoon and to the

producers at the Charison’s customer appreciation supper that evening.

Newsletters

Articles prepared for the Chicken Farmers of Saskatchewan newsletter included Drinking Water

Quality for Broilers – Part 2: Minerals (February 2007), Part 3: Water Sanitation and ORP

Measurements (April 2007) and Part 4: Cleaning Water Lines between Flocks (August 2007);

Waste Management Plans (August 2007); Fall Waterfowl Migration and Avian Influenza: A

Reminder (October 2007); and Avian Influenza Testing and Diagnosis (November 2007).


Emergency Response Planning

The Saskatchewan Poultry Industry Emergency Management Team (SPIEMT), comprised of

representatives from the Saskatchewan Egg Producers, Saskatchewan Broiler Hatching Egg

Producers, Saskatchewan Turkey Producers, Chicken Farmers of Saskatchewan, egg graders and

processors, hatcheries, poultry meat processors, U of S poultry extension, feed industry,

catching crews and Farm Animal Council of Saskatchewan (FACS), continued with emergency

response planning. Government partners, including the Canadian Food Inspection Agency

(CFIA), Saskatchewan Agriculture and Food (SAF), Emergency Measures Organization (EMO) and

Canadian Animal Health Coalition (CAHC), have been involved in the process so that the

emergency response plan complies with their procedures.

On February 8th, CFIA led a table top discussion to gain a better appreciation of the roles,

responsibilities and actions of the groups involved when dealing with an avian influenza

emergency. Small and large group discussions were used to examine the communication

process, understand the roles, responsibilities and actions of SPIEMT members and to assist

with revisions to the SPIEMT contingency plan.

SPIEMT continued to discuss emergency planning at meetings on March 2nd, April 11th and

August 24th. The emergency team and producer manuals, funding, communications, zoning,

GPS mapping and compensation were the agenda items considered.

All this preparation ensured the planning structure existed when Saskatchewan had to respond

to its first diagnosed case of highly pathogenic avian influenza in September 2007.

Avian Influenza Response

Due to regular SPIEMT meetings, the Saskatchewan Poultry Industry had a functional team

available and ready to respond to the avian influenza outbreak. Poultry extension reported the

suspicious case to CFIA on September 23, 2007. As the event progressed, Tennille Knezacek

assisted with sample collection at the index farm, logistics at CFIA’s emergency operations

centre in Regina and sample collection for provincial surveillance, while Dr. Goodhope

remained available to other poultry producers with poultry health concerns.

Avian Influenza Recovery

Responding to the highly pathogenic H7N3 avian influenza outbreak emphasized the need for

revisions to SPIEMT’s emergency plan and for continued education and communication

amongst all industry partners so we are better pre-pared in the event of another outbreak or

emergency situation.

On-farm food safety program implementation; collecting and updating GPS data for all poultry

production sites; poultry handling, sample collection and mass disposal training for response

personnel; the development of species-specific standard operating procedure templates for the


cleaning and disinfecting of an infected premise; and emergency disposal plan preparation are

affairs that can be improved with the assistance of Poultry Extension.

Poultry Transportation

The Quality Livestock Transport (QLT) certification program has been renamed the Certified

Livestock Transporter (CLT) training program due to legal conflicts with the previous title. The

CLT program focuses on the humane and safe relocation of livestock and includes the

regulatory requirements for Canada and the US. It is a skills-based instructional program that

certifies the ability of the participant to perform the necessary job functions of a qualified

livestock transporter. Poultry Extension was actively involved in assembling the content for the

poultry-specific module and presented the poultry information to participants in the Train-the-

Trainer Workshop held at Olds College in Alberta on May 17, 2007.

Drivers from both provincial poultry processors have received CLT training. Although the

program is voluntary at this time, certification may be required in the future. Additional

information can be attained by visiting the following website: http://livestocktransport.ca/

Acknowledgements

Poultry Extension would like to thank the poultry producers and processors who make

themselves, their facilities and their birds available for educational purposes. Students from the

Western College of Veterinary Medicine and the College of Agriculture and Bioresources at the

University of Saskatchewan appreciate the opportunity to learn first-hand about the

Saskatchewan poultry industry. These student-industry interactions are also an excellent

opportunity to promote the poultry industry in this province and to encourage student interest

in poultry-related employment subsequent to graduation.

Strict biosecurity protocols are followed for all on-farm visits. Additionally, a list of students in

attendance is provided to keep the visitor log book at each farm site current.


III. BROILER HATCHING EGG PRODUCERS

Canadian Hatching Egg Quality (CHEQ) auditor training, conducted by Viki Sikur from the

Canadian Broiler Hatching Egg Marketing Association, was held on May 3rd and 4th. Tennille

attended the training and is now qualified to act as a CHEQ implementation agent.

Health

Overall flock health was good. Nine producers reported 20 disease incidents. Sixty percent were

bacterial infections such as yolk sac infection, necrotic enteritis and reproductive infections.

Lameness due to Staphylococcus aureus continued for the second year to be less common than

previously. A few ascarids (round worms) were found in one flock but fecal floatation of a

subsequent flock failed to reveal infestation. Flocks with unexplained poor performance may

benefit from fecal sampling to rule out worm infestation. A few flocks had higher than expected

skeletal problems. Kinky back (spondilolithesis) in both pullets and roosters were reported and

were associated with inflammation of the vertebrae. An unusual presentation of arched backs

and crooked tails (kyphoscoliosis) was reported in one flock of 16 week old roosters.

High path avian influenza (HPAI) was confirmed for the first time in Saskatchewan poultry on

one premise. The HPAI strain was identified as H7N3. HPAI is a reportable disease under the

authority of the Federal Health of Animals Act and is the jurisdiction of the Canadian Food

Inspection Agency (CFIA). The CFIA quarantined the premises and ordered poultry depopulation

of the infected premise. Testing all contacts and surveillance of all sectors of the poultry

industry in Saskatchewan was undertaken by the CFIA and no other reportable avian influenza

infected premise was found. Cleaning and disinfection of the infected premises was completed

and the quarantine released in mid January 2008.

Follow up research, supervised by Dr. Gomis, to develop an effective vaccine to immunize

breeder hens against inclusion body hepatitis (IBH) adenovirus and thereby prevent

transmission of the virus in the egg to the broiler chick is ongoing at the University of

Saskatchewan. The adenoviruses isolated from IBH out-breaks have caused significant mortality

losses in broiler chicken flocks for the past 5 years.

All breeder flocks were blood sampled to monitor vaccination effectiveness for infectious bursal

disease (10 weeks of age) and avian encephalomyelitis (17 weeks of age) to ensure protection

of the progeny. The results indicate good vaccination practices in most flocks. All flocks were

blood sampled at 17 and 34 weeks of age to ensure freedom from Mycoplasma gallisepticum

and My-coplasma synoviae. All flocks tested negative. Vaccination auditing, particularly for

breast injections, is part of the poultry extension service that can be requested. A random

sample of pullets is examined to ensure the person(s) administering the vaccine(s) is using the

proper technique and applying the vaccine in the correct area.


IV. CHICKEN PRODUCERS

Health

Overall broiler chicken livability has

continued to be good. Forty-eight

producers reported 86 disease incidents.

Inclusion body hepatitis (IBH) continued

for the third year as the most commonly

diagnosed condition at 28% of incidents.

The total yearly outbreaks are shown in

the chart to the right. There was a small

decreasing trend since 2005. Research

into the epidemiology and preventive

strategies of IBH in Saskatchewan is

ongoing. The research is supervised by Dr.

Gomis at the University of Saskatchewan

and partially funded by the Saskatchewan

Chicken Industry Development Fund. Isolation, identification, propagation and disease model

development in broiler parents of the IBH adenovirus has been completed. Vaccine trials in

broiler parents are underway.

Other common disease problems reported in descending prevalence were: yolk sac infections

(15% of incidents), E.coli bacterial infections (13%), necrotizing dermatomyositis (9%),

coccidiosis (8%), and ascites (6%). Reported ascites incidents continue to decline.

A new disease never before reported as a flock mortality problem in Saskatchewan was

necrotizing dermatoyositis (NDM). NDM is a bacterial disease caused by Clostridium species. It

was reported in a number of flocks and is seen in market age broilers over 35 days of age.

Affected broilers are found dead or very depressed. The carcasses appear to be rotting even

though the flock manager has been diligent in picking up mortality. The skin on the breast and

abdomen is purplish with bloody fluid underneath. Losses can be hundreds per day. Treatment

with antibiotics, if possible, was not always effective. The method of infection and the reason

for NDM emergence is unknown. NDM is associated with a clostidial contaminated

environment, co-infection with coccidia and immunosuppression by infectious bursal disease.

Prevention may lie in effective cleaning and disinfection, and coccidial control.


Management

Research conducted at the University of Saskatchewan Poultry Centre used four different

lighting programs (23L:1D, 20L:4D, 17L:7D and 14L:10D, where L is hours of constant light and D

is hours of constant darkness) to determine the effects on the growth rate, feed efficiency,

mortality and leg weakness of broiler chickens. Repeated experiments have shown that the

optimum lighting program for each performance and welfare characteristic is different and that

near-constant lighting programs (23L:1D) never provide optimal results.

Birds marketed at 31 or 38 days attained maximum body weight using 20L:4D; whereas birds

marketed at 48 or 49 days showed similar maximum growth rates using the 17L:7D and 20L:4D

lighting programs. Feed efficiency was maximized at 14L:10D. There were no differences in feed

efficiency for birds on the 20L:4D and 23L:1D lighting programs, however birds on the 20L:4D

were heavier. Mortality was reduced, and therefore improved, with increasing exposure to

darkness. Leg weakness associated with higher gait scores was recorded for birds raised on

23L:1D. Average gait score decreased consistently with each addition of darkness.

Although one of the components relating to lighting programs in the Animal Care Program

mandates that birds must be exposed to a period of darkness no less than 1 hour per day, a

simple change to at least 4 hours of darkness per day will benefit bird welfare and productivity.

V. TURKEY PRODUCERS

Poultry Extension personnel are available to help implement the On Farm Food Safety (OFFS)

program for turkey producers.

Health

Nine turkey producers reported 21 disease incidents. The most frequent diagnosis was E. coli

bacterial infections (52% of incidents, increasing last 2 years), some of which were related to

concurrent infection with the immunosuppressive hemorrhagic enteritis (HE) virus. Many of

these E. coli infections can be prevented by vaccinating the poults with HE vaccine. Necrotic

enteritis was greatly reduced from past years (5 vs. 16% of incidents) which may be related to

increased inclusion of antibiotic prevention in feed. Round heart decreased for the second year

(5% of incidents), indicating improvements in genetics and/or brooder management. Rickets

was reported twice and continues to be of low prevalence.


Management

Two cases of dehydration in young poults were diagnosed. Ensuring poults have easy access to

drinking water when brooded under high temperatures will help prevent mortality due to

dehydration.

VI. TABLE EGG PRODUCERS

Health

Layer and pullet flocks were healthy with few disease incidents reported. Bacterial infections

(E.coli) were the most common diagnoses, with many infections affecting the reproductive

tract, particularly the ovaries. Diagnoses of fatty liver hemorrhagic syndrome, vent picking, and

caged layer fatigue were also among the submissions. Marek’s disease was not diagnosed for

the second consecutive year. An uncommon case of coccidiosis in caged layers was detected.

The affected hens were housed in a new cage system that allowed hen access to droppings on

the contaminated manure belt above their cage. Blood tests from one underperforming flock

resulted in the first report of the bacteria Orni-thobacter rhinotrachaele (ORT) in Saskatchewan

layers. The effect of ORT on egg production is poorly understood and may be incidental.

Production problems associated with infectious bronchitis continues to be re-ported and

investigated. Each production facility needs to determine the best vaccination program as the

risks are different for single age versus multi-age premises, whether growing pullets or not. On

multiage premises it is best to use live spray vaccine boosting every seven weeks. Timing of

booster vaccination when growing pullets should coincide with the pullet bronchitis

vaccinations. Blood sampling to determine the effectiveness of the vaccination program is also

necessary. The poultry extension service personnel are available for consultation and assistance

in sampling and investigating any production problems. Infectious bronchitis affects layer flocks

by decreasing egg production and causing a transient suppression of feed intake, wrinkled egg

shells, eggs without shells, watery whites and increased under-grades. Where infectious

bronchitis continues to be a problem in otherwise well vaccinated flocks, determining the kind

of infectious bronchitis virus involved may be necessary to explain the bronchitis outbreak.

Salmonella Monitoring Program

The Saskatchewan Egg Producers Board tested all flocks for Salmonella species/serovars by

environmental sampling. The number of flocks testing positive during the 2007 period was 31%;

a 10% increase compared to 2006 (see Table 1). This reverses a four year declining trend. In

2007, 12 strains of salmonella were reported, with S. mbandaka being the most common

serotype. Mbandaka has been the most prevalent in 8 of the last 10 years. Other frequently

isolated se-rovars of Salmonella in descending order were: heidelberg, tennessee, agona, hadar

and kentucky. Eighteen percent of positive farms had more than one Salmonella serotype

isolated and the most frequent site of isolation was from the egg belt (40%). Affected flocks


were followed up with a letter indicating best practices for control. No Salmonella enteritidis

was isolated in 2007.

Salmonella screening results are generally available within one week of submission. Layer farms

testing negative in all locations will receive a salmonella screening memo in the mail from

poultry extension within a few weeks. How-ever, if any of the locations tested on a farm are

positive, the samples are then sent to a Reference Laboratory for serotyping. Serotype results

can take up to two months to complete. Due to concerns regarding delayed notification of

positive salmonella screening results, Poultry Extension will be notifying farm managers by

telephone or fax when the preliminary positive results are received. Once the salmonella

serotype is identified by the Reference Laboratory, a memo containing this information will be

sent by post.

Table 1. Salmonella program isolation results in Saskatchewan

Year # Flocks Tested # Positive % Positive # of Strains

1997 108 39 36.1 9

1998 108 36 33.3 11

1999 88 19 21.5 4

2000 83 12 14.0 6

2001 88 12 13.6 4

2002 81 13 16.0 10

2003 82 23 27.7 12

2004 89 24 26.9 9

2005 85 20 23.5 14

2006 104 22 21.2 16

2007 91 28 30.8 12


BUDGET REPORT (2007)

BUDGET PREDICTIONS

31 Financial Statements | Chicken Farmers of Saskatchewan

Chicken Farmers of Saskatchewan Financial Statements

December 31st, 2007

Chicken Farmers of Saskatchewan | Financial Statements 33

42 Chicken Farmers of Saskatchewan l Proposed Budget

Chicken Farmers of Saskatchewan 2008 Proposed Budget

* A payee list is available upon request

Statement of Operations and Surplus

2008 Budget 2007 Actual 2007 Budget

REVE�UE

Board levies 608,000 602,898 610,883

Net price adjustment 0 733 0

Provincial Promotions 24,000 0 0

OFFSAP Validation 0 5,000 3,000

Monetary Enforcement 0 69,393 0

Quota Transfer Fee 5,000 8,050 3,000

Bank Interest 4,500 12,355 1,700

Other 10,000 379 0

TOTAL REVE�UE 651,500 698,808 618,583

EXPE�SES*

Administration Salary & Benefits 202,000 297,871 227,610

Administration Benefits (group ins,pension,cpp,ei,WCB) 45,000 36,470 included in above

Advertising & Promotion (Donations): 35,000 11,048 15,000

AI Cleanup Costs 38,843

Amortization: 1,000 1,800 1,000

Audit Fees 6,000 5,658 12,000

Legal Fees 9,000 5,557 0

Bank Charges: 1,000 892 300

CEO hiring process 0 15,282 0

Consultant Fees 0 10,048 0

Computer (program & hardware): 15,000 4,603 30,400

Director Per Diem/Comm & Stat Expense 70,000 73,813 68,000

Director Travel & Meals 42,000 43,691 39,500

Extension Services 81,000 80,134 70,000

Insurance 9,100 7,226 8,000

Janitor 2,400 1,727 3,000

Repairs/Maintenance/Security 1,100 2,655 0

OFFSAP: 25,000 27,202 18,000

Outside Services: 12,000 7,651 4,500

Management Expense/Meeting Administriation 35,000 62,651 49,000

Office Supplies & Equipment 10,000 22,740 14,500

Postage/Messenger Services 3,000 4,014

Building Rent: 26,000 21,541 15,000

Subscriptions/Memberships 3,000 6,383 3,950

Miscellaneous: 1,000 781 900

Telephone/Internet: 10,000 11,160 10,300

Utilities: 3,000 3,717 2,000

TOTAL EXPE�SES 647,600 805,158 592,960

Surplus (Deficit) $3,900 ($106,350) $25,623

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