AHPharma is a animal research and product                             Delmarva Poultry Industry, Inc. 16686 County Seat Hwy. Georgetown, DE 19947-4881 (302) 856-9037 www.dpichicken.org Speaker: James L. McNaughton, Ph.D. Board Member DPI, Inc. President & CEO AHPharma, Inc. Salisbury, MD AHPharma is a animal research and product development company.

Mission of DPI Association, Inc. DPI is dedicated to representing the best interest of persons and organizations that have an interest in poultry production, processing and marketing.

Broiler Industry Facts: 9.8 Billion broilers are processed annually Delmarva features 4/top 20 U.S. Top Broiler Companies, including: Allen Family Foods, Inc. (#16), Mountaire Farms, Inc. (#6), Perdue Farms, Inc. (#3), and Tyson Foods, Inc. (#2). - Delmarva (three states) represent about 14% of the U.S. chicken production. States Broiler Industry income include: Delaware: $739 million Maryland: $535 million Virginia: $506 million

Poultry Industry Technology Key to historical, present and future success.

State of Poultry Industry Energy crunch is far reaching and has reached a critical state. Grain prices (due to all energy sources and ethanol production) has crippled potential profits. Financing future technology is rapidly diminishing. Environmental issues/legislation/threats of class-action lawsuits have distracted our focus on business at a very critical time. Mainly: manure disposal issues/Bay Critical Areas, land use, and mega/large farm issues (Somerset County).

Poultry Industry Technology Advancement Change from inefficient incandescent light fixtures to more energy- efficient light bulbs will be completed in late 2008. Solar energy is thought of as a cost-effective energy source. More efficient water reuse. More effective manure handling techniques More effective tunnel ventilation techniques have been completed.

Technology Requirements: Energy conservation methods (feed efficiency, lighting, heater/ heating improvements, renewable resources, etc.) Improved animal health and animal production. Grower profit improvements (improved weight gains, improved mortality, and disease control). Improved/less expensive food safety techniques