Direct Poultry Marketing Dr. Bryon Wiegand University of Missouri Division of Animal Sciences wiegandb@missouri.edu

Value of Poultry to U.S. Economy Broilers, eggs, turkeys, and chickens Combined value of $35.9 billion in 2008 Up 11 % Broilers 64% Eggs 23% Turkeys 12% Chickens 1%

Consumer Demands Increased consumer demand for locally grown meat Increased demand for organic, all natural food products Number of farmer’s markets across the nation has doubled in the last 10 years This means greater opportunities for Direct marketing of meat and poultry products.

Growing the birds http://www.attra.org/livestock.html#Poultry Poultry Your Way Operating on a budget

Processing Options On farm processing State Inspection Federal Inspection

On farm processing Poultry is the only meat allowed to be sold after farm processing Processors must slaughter animals raised on their own farm Many farmers markets and institutions will not allow “exempt from inspection” poultry products to be sold Waste disposal is an important consideration with on-farm processing

On farm processing Allowed under various exemptions Mutually exclusive exemptions- only one exemption per facility is allowed per year All exempt processors must meet non-inspection provisions of the Federal Meat and Poultry Acts Not adulterated or misbranded Prepared under sanitary conditions Properly marked and packaged Stored separately from inspected products All facilities must be constructed in a manner that will allow the operator to maintain sanitary conditions and prevent the adultering of products

Personal Use Exemption “Not for sale” product Should be labeled “Exempt P.L. 90-492" Poultry is slaughtered by the producer/grower “Personal use” exempt poultry meat is for the use of the grower/producer, family, and non-paying guests/employees of the household Meat cannot be sold or donated for use as human food No limit to the number of birds slaughtered per year Poultry must be healthy at slaughter

Custom Exemption A custom exempt processor does not buy or sell poultry, they act solely as a service Not for sale, only for the personal use of the grower/owner of the poultry Should be labeled “Exempt P.L. 90-492" Slaughter and processing is conducted in accordance with sanitary standards Poultry must be healthy at slaughter

Producer/Grower 1,000 Limit exemption Producer can slaughter no more than 1000 of their own birds/year for distribution as human food Slaughter and processing is conducted under sanitary standards Producer keeps records necessary for the effective enforcement of the Federal Meat and Poultry Acts these include slaughter and sales records Not allowed for interstate commerce Poultry must be healthy at slaughter

Producer/Grower 20,000 Limit exemption Must slaughter less than 20,000 of their own birds/year for distribution as human food Slaughter and processing is conducted under sanitary standards Not allowed for interstate commerce Should be labeled “Exempt P.L. 90-492" Poultry must be healthy at slaughter Facilities inspected occasionally for sanitation

Producer/Grower or Other person 20,000 limit exemption A poultry grower who slaughters and processes their own poultry for sale directly to household consumers, restaurants, hotels, and boarding houses to be used in for the preparation of meals served or sold directly to customers. A person who purchases live poultry from a grower and then slaughters and processes such poultry for sale directly to household consumers, restaurants, hotels, and boarding houses to be used for the preparation of meals sold directly to customers.

Producer/Grower or Other Person Limited to slaughtering less than 20,000 birds/year Cannot be sold to a distributor or retail store Should be labeled “Exempt P.L. 90-492" Not allowed for interstate commerce Poultry must be healthy at slaughter Slaughter and processing is conducted under sanitary standards

Small Enterprise exemption A producer/grower who raises, slaughters, and dresses poultry for use as human food whose processing of dressed exempt poultry is limited to cutting up; A business that purchases live poultry that it slaughters and dresses whose processing of the slaughtered poultry is limited to the cutting up; or A business that purchases dressed poultry, which it distributes as carcasses and whose processing is limited to the cutting up of inspected or exempted poultry products, for distribution for use as human food.

Small Enterprise exemption Processing of Federal or State inspected or exempt poultry product is limited to the cutting up of carcasses; The business slaughters and dresses or cuts up no more than 20,000 birds in a calendar year A business may slaughter or cut up poultry under the Small Enterprise Exemption for sale to: household consumers hotels retail stores restaurants similar institutions.

State Inspection “Equal to” federal inspection Meat bearing the state mark of inspection can be sold within the state of Missouri, no interstate commerce Require Sanitation Standard Operating Procedures (SSOPs) and a Hazard Analysis and Critical Control Point (HACCP) plan http://mda.mo.gov/animals/health/inspections/officialplan ts.php

Processing Very, very, very limited in Missouri. http://www.freshchickenandturkey.com/index.html Mobile Processing Units???? http://www.extension.org/pages/Mobile_Slaughter/Processing _Units http://www.extension.org/pages/Kentucky_Mobile_Poultry_Pr ocessing_Unit Who builds them??? http://www.extension.org/pages/Who_builds_mobile_processi ng_units%3F

Mobile Processing Scalding Self-contained unit Killing Cones Plucking http://www.ibiblio.org/farming connection/grazing/pastpoul/mpupix.htm Chilling

State of Missouri Poultry Inspection Poultry Exemption 9 CFR 381.10 and the "Poultry Products Inspection Act" address the exemption regulations in regard to poultry producers. Call (573) 522-1242 for further clarification of these regulations. Inspection exemption Label exemption

MO Poultry Health Program Staff poultry@mda.mo.gov Rose Foster Program Coordinator (573) 522-3377 (573) 690-2153 - cell phone Tony Perryman (573) 522-3378 (573) 999-1191 - cell phone Jennifer Weber Animal Health Officer (573) 526-4673

Federal Inspection Required for interstate commerce Federally inspected meat is also eligible for export Require Sanitation Standard Operating Procedures (SSOPs) and a Hazard Analysis and Critical Control Point (HACCP) plan

Poultry label claims Free Range “must have access to the outside” no other criteria such as environmental quality, number of birds, or space per bird, are included in the term “free-range.”

Natural Claims Natural A product containing no artificial ingredients, flavors or colors, chemical preservatives and is only minimally processed Minimally processed Traditional processes used to make food edible, preserve it, or make it safe OR Physical processes that do not fundamentally alter the raw product or that only separate whole food into component parts ex: ground beef

Label Claims No hormones added No antibiotics added Cannot be used on poultry labels as hormones are not permitted in raising poultry No antibiotics added may be used if sufficient documentation is provided to the Agency demonstrating that the animals were raised without antibiotics.

Certified Organic Poultry must be under continuous organic management beginning no later than the second day of life The total feed ration must be composed of organically produced agricultural products, including pasture and forage No drugs, hormones, or antibiotics

Certified Organic Housing “Housing should protect birds from the elements, maintain a comfortable temperature, provide ventilation and clean bedding and allow birds to conduct natural behaviors.” “Cages are not permitted. Birds must have access to the outdoors for exercise areas, fresh air and sunlight and must be able to scratch and dust bath.” Stocking densities are not specified by the National Organic Program For any other information regarding certified organic poultry, visit the USDA website page for the National Organic program

General Label Requirements Product Name Legend of Inspection Handling Statement – i.e. “Keep refrigerated” Net Weight Address/Signature Line Safe Handling Instructions Ingredients-two or more Nutrition Facts- unless exempt (small business, single ingredient, etc.) To prevent misbranding, these elements should be included on all packages.

Applying for Label Claims Label submissions are only accepted from the plant, not from the producer. Also, labels can only be applied at the plant where approved In order for processors to make label claims, they must be inspected. Claims must have substantial supporting documentation For more information, contact the Missouri Department of Agriculture or the Food Safety and Inspection Service of the USDA

Pricing http://www.farmersmarketstoday.com/index.php?option= com_content&task=view&id=37&Itemid=1 Be aware of what other direct marketers are charging Attend farmer’s markets in your area to see what other producers are charging for the same type of product Know your cost of production, promotion, and distribution. Make sure you charge more than your break-even price. Consumers are usually willing to pay higher prices if the product meets their specifications for either animal raising practices or product quality http://www.kansasruralcenter.org/publications/DMPPP.p df