1. An Integrated Poultry Complex Community and Regional Impact October 28, 2014

2. Background for This Meeting “Feasibility Study Identifying Specific Strategies to Recruit and Retain Vertically Integrated Poultry Operations in Pittsylvania County” –BR Bock Consulting, lead contractor –Broad Energy Solutions, subcontractor –Lawton Lewis and Associates, subcontractor Purpose is to get public feedback concerning the possibility of an integrated poultry complex 2

3. Topics 3 Economic impact Site considerations Environmental considerations –Poultry processing –Contract grower operations Q&A Survey

4. 4 Sanderson Farms Complex in Palestine, TX ~1200 direct, full time employees ~100 contract growers –496 broiler houses, 48 hen houses, and 8 pullet houses 1.25 million large birds/week processing facility –~200 acres, roads, natural gas, electricity, water & waste water Separate feed mill –25 to 50 acres, rail, roads, natural gas, electricity, water Hatchery –~15 acres, roads, natural gas, electricity, water https://www.sandersonfarms.com/static/newsletters/Spring-2014.pdf

5. 5 Economic Impacts of an Integrator Complex

6. 6 Regional Processing Plant Compensation Line Workers: $11-$13 per hour Production Supervisors: $40,000 to $60,000 per year Maintenance and Refrigeration Techs: $15 to $28 per hour Upper Management: $50,000 to $100,000 per year Average compensation ranges from $36,000 to $40,000. Source: 2014 Survey of NC Poultry Plants

7. 7 Need for Additional Jobs in the Region http://virginiascan.yesvirginia.org/communityprofiles/MapSearch.aspx?type=default

8. 8 Good Potential Opportunity for Small Farms Looking to Diversify 8 http://www.coopercenter.org/sites/default/files/publications/PittDanville%20agbusiness_%20final.pdf

9. 9 Poultry Litter is Good as Hay and Pasture Fertilizer for Cattle Industry 9 http://www.coopercenter.org/sites/default/files/publications/PittDanville%20agbusiness_%20final.pdf

10. 10 Traffic Considerations

11. Proposed Feed Mill to be Located on Norfolk Southern Mainline 11

12. 12 Sanderson Farms Processing Plant: Kinston, NC

13. Environmental Considerations: Poultry Processing Highly regulated: Facilities must comply with USDA, EPA, FDA, OSHA, VA DEQ, and Homeland Security regulations. Wastewater –Treated in public waste water treatment facilities –No direct release into surface waters Odor –Occasional minimal odor from live bird holding area –Virtually no odor released from actual processing –Rendering contracted at remote facility (not local factor) Air emissions are minimal 13

14. Environmental Considerations: Poultry Houses No nutrient runoff from poultry houses Some odor emitted that generally dissipates within a short distance All integrators have setback restrictions for locating poultry houses; also local restrictions 14

15. Land Application of Poultry Litter as Fertilizer –Low cost NPK source for local farmers; value-added products such as compost also an option –Nutrient management plans required as part of Virginia Pollution Abatement (VPA) permit –Some nitrogen and phosphorus in feed inputs from the mid-west end up in poultry litter –Environmental question: Are local crop requirements sufficient to effectively use nutrients in litter and: Avoid saturation of soils, especially of phosphorus Avoid nutrient runoff and water quality problems 15

16. 16 Favorable Regional Nutrient Balance Fertilizer P + Manure P – Crop P Removed—2010, IPNI County Level http://nugis.ipni.net/map/ Pittsylvania Cumberland Lenoir

17. 17 More Than 6X Fertilizer P Used vs. Amount of Poultry Litter P to be Produced

18. 18 http://prod.rrba.org/ No significant adverse impact is expected on water quality.

19. Q&A 19

20. Survey 20

21. 21 Thank you for your time and interest. Contact Information Bert Bock brbock@brbock.com (256) 627-5035

22. Reference Slides 22

23. 23 http://www.dcr.virginia.gov/soil_and_water/documents/nmlitlistmap.pdf

24. 24 Fertilizer P + Manure P – Crop P Removed—2010, IPNI Watershed Level Pittsylvania Cumberland http://nugis.ipni.net/m ap/ Lenoir Favorable Regional Nutrient Balance