1. Copyright 2010, Validus Verification Services, LLC. All rights reserved. January 23, 2015 Validus Poultry Specific Refresher Course

2. Copyright 2010, Validus Verification Services, LLC All rights reserved. Objectives 1.Poultry Program Updates 2.Cage and Cage-Free Changes 3.2014 Information 4.UEP Hatchery Audit Tool 5.Other poultry species audit tools 6.Food Safety

3. Copyright 2010, Validus Verification Services, LLC All rights reserved. California’s Proposition 2 Passed in 2008 - now in effect By January 1, 2015, egg-laying hens raised in CA must be able to “stand up, lie down, turn around, and fully extend their wings” In 2010, lawmakers enacted a law that requires that shell eggs sold in CA also be in compliance with Prop 2 Lawsuits from other states to overturn CA law have been dismissed We will see expansion into alternative systems –e.g. Hickman’s expansion - adding 300,000 cage-free layers

4. Copyright 2010, Validus Verification Services, LLC All rights reserved. 2014 Review - Case Studies SCOPE: Identify a time(s) during an audit that you faced a “gray” area and had to make a judgment call PURPOSE: Auditor calibration DIRECTIONS: –Each auditor will pose a situation they may have faced and we will discuss as a group the best course of action to take in an effort to better our calibration.

5. Copyright 2010, Validus Verification Services, LLC. All rights reserved. Validus Poultry Specific Refresher Course 1. Poultry Program Updates

6. Copyright 2010, Validus Verification Services, LLC All rights reserved. Re-audit Process - No Change If a site fails, re-audit process is 30 days If the site fails the 30 day re-audit If a failure does occur, continue with the audit. DO NOT STOP AUDIT PROCESS –Will assist next auditor completing audit

7. Copyright 2010, Validus Verification Services, LLC All rights reserved. Backfilling Requirement - Same Past process allows a company to backfill up to 90% of the original flock Process –100% of the number of layers at the time of the catastrophic loss event, provided that the new layers to be housed are placed in empty cages and that a catastrophic event be defined as a minimum of 6% loss of the flock within a short period of time. –Producer MUST still notify UEP of event

8. Copyright 2010, Validus Verification Services, LLC All rights reserved. Facility Count Sample selected must represent 50% of caged and 50% cage-free for certification

9. Copyright 2010, Validus Verification Services, LLC. All rights reserved. Validus Poultry Specific Refresher Course 2. Cage and Cage-Free Changes

10. Copyright 2010, Validus Verification Services, LLC All rights reserved. UEP Caged Layer Audit Changes Due to legal litigation, they plan to distribute the audit points more evenly throughout the sections For example, the handling and transportation section is now worth 50 points, instead of 30 Also, questions 1-3 in section 1 will all be pass/fail

11. Copyright 2010, Validus Verification Services, LLC All rights reserved. Bird Counts Samples need to be taken on top and bottom decks in two deck systems A good ladder is needed for 7 deck systems Based on cage size, calculate the number of birds they should have in each cage If in question, conduct calculations before leaving to prevent failure findings during QA/QC process

12. Copyright 2010, Validus Verification Services, LLC All rights reserved. Loose Bird Policy Look for loose birds Verify Loose bird policy/process for “feed and water” Verify that manure load-out doors are closed

13. Copyright 2010, Validus Verification Services, LLC All rights reserved. Enriched/Enrichable Bird Count 3 ways to verify bird count: –Review housing diagrams –Verify the number of birds placed in the house –Verify production records vs. breeder standards Cargill has a tool for auditing enriched houses

14. Copyright 2010, Validus Verification Services, LLC All rights reserved. Enriched/Enrichable Bird Count Review Housing Diagrams –Verify the total square inches per cage and calculate the maximum number of birds that can be placed per cage –Verify the total square inches of useable space per house and use this number to calculate the maximum number of birds that can be placed in the house –Review the company’s bird placement diagram for the house and compare it to “a” and “b” above

15. Copyright 2010, Validus Verification Services, LLC All rights reserved. Enriched/Enrichable Bird Count Verify the number of birds placed in the house –Review the pullet grow reports and compare them with the movement and placement reports

16. Copyright 2010, Validus Verification Services, LLC All rights reserved. Enriched/Enrichable Bird Count Verify Production Records vs. Breeder Standards –Determine breed in order to reference the correct breeder standard –Request the production numbers for the house being sampled, covering the life of the flock –Sample a minimum of 3 months of production data and compare the rate of lay to the breeder standard –If the average rate of lay is equal to or greater than 100%, do not award points for spacing. The company can elect to have the house physically sampled.

17. Copyright 2010, Validus Verification Services, LLC All rights reserved. Cage-Free Updates Most changes are regarding perch recommendations Purpose: to allow hens to rest and roost comfortably with minimal disturbances, to provide hens with a refuge from injurious pecking, and to minimize flightiness Guidelines: Material: easily cleaned, does not harbor mites, and minimizes keel, foot and nail damage no sharp edges ends of hollow perches must be capped designed and constructed to prevent injury to hens that are mounting or dismounting, and also those nearby

18. Copyright 2010, Validus Verification Services, LLC All rights reserved. Cage-Free Updates: Perches 4.75 linear inches of usable perch space per white hen, and 6 inches for brown hens Should not extend into nest area, but both the continuously available alighting rails in front of the nest boxes and the perches above the trough feeders can be counted as perching space A minimum of 0.5 inches gap on each horizontal side of any perch so that hens can grip the perch without trapping their nails A minimum distance of 7.5 inches from the top of the perch to the ceiling or other structure Perch diameter must be between 0.75 and 3 inches; they are generally 1.6 to 2 inches in diameter

19. Copyright 2010, Validus Verification Services, LLC All rights reserved. Cage-Free Updates: Perches At least 20% of the perch space must be elevated a minimum of 16 inches, but no more than 40 inches, above the adjacent floor or platform Adjacent perches must be at least 1 foot apart horizontally to allow hens to easily perch simultaneously, and at least 8 inches from the back wall Perches must be positioned to minimize fecal fouling of birds, feeders, or drinkers located below them SLATTED FLOORING MAY NOT COUNT AS PERCH SPACE!

20. Copyright 2010, Validus Verification Services, LLC. All rights reserved. Validus Poultry Specific Refresher Course 3. 2014 Information

21. Copyright 2010, Validus Verification Services, LLC All rights reserved. Other UEP Changes Changed the definition of “facility” –Previously: An egg production location or site. This includes all layer houses on each site or adjoining sites owned and operated by the same management team. –New definition: An egg production location, site, or group of sites commonly managed within a single company. This includes all layer houses on each site, adjoining sites, or a commonly managed geographical region owned and operated by the same management team.

22. Copyright 2010, Validus Verification Services, LLC All rights reserved. UEP Certificates Certificates will now expire on November 30 th of the following year

23. Copyright 2010, Validus Verification Services, LLC All rights reserved. Top Non-conformances in 2014 Lack of ammonia testing Lack of light testing

24. Copyright 2010, Validus Verification Services, LLC. All rights reserved. Validus Poultry Specific Refresher Course 4. UEP Hatchery Audit tool

25. Copyright 2010, Validus Verification Services, LLC All rights reserved. Summary of Hatchery Audits to Date Complete 7 hatchery audits annually –ID, IA, TX, VA, IN, GA, MN –Hy-Line International and Brickland Hatchery Voluntary audit process Average audit time is 2-4 hours No changes moving into 2015

26. Copyright 2010, Validus Verification Services, LLC. All rights reserved. Validus Poultry Specific Refresher Course 5. Other Poultry Species Audit tools

27. Copyright 2010, Validus Verification Services, LLC All rights reserved. PAACO PAACO training to be held August of 2015 Growing demand for auditors to be PAACO certified for broilers and turkey –NCC, NTF, American Humane Training to take place in North Carolina Validus leads the training of the layer section NCC and NTF audits are on their website

28. Copyright 2010, Validus Verification Services, LLC All rights reserved. Whole Foods Timeline and Updates Looking to start their project for their 365 brand in March of 2015 10-15 companies will provide eggs to their own brand Will open up the audits to other egg producers in 2016

29. Copyright 2010, Validus Verification Services, LLC All rights reserved. Cargill Audits of pullet farms Audits for McDonald’s facilities Relationship with Daybreak, Forsman, and Herbruck’s Will be looking at 1/3 of pullet facilities No changes to the pullet audit tool

30. Copyright 2010, Validus Verification Services, LLC. All rights reserved. Validus Poultry Specific Refresher Course 6.Food Safety

31. Copyright 2010, Validus Verification Services, LLC All rights reserved. FDA - Target FDA is targeting the smaller producers –Sites with less than 20,000 layers FDA feels confident in the larger plants audited to date Not sure of the expectations with the smaller facilities

32. Copyright 2010, Validus Verification Services, LLC All rights reserved. UEP 5-Star A brand-new tool was used in 2014 - use the new tool when auditing

33. Copyright 2010, Validus Verification Services, LLC All rights reserved. SQF- Safe Quality Foods Level III Completed first SQF audits last February SQF is the main program that provides an opportunity to cross audit with 5-Star Safe Quality Food Institute (owned by FMI) www.sqfi.com Validus is a licensed “Certifying Body” (CB) with SQF –4 certified auditors

34. Copyright 2010, Validus Verification Services, LLC All rights reserved. Summary California’s Proposition 2 is now in effect The UEP caged layer audit will now have the points distributed more evenly among the sections, and questions 1-3 in section 1 will be pass/fail There are 3 ways to verify bird counts in enriched/enrichable systems: the most important will be comparing production records to breed standards The characteristics of perches have been explained more thoroughly and slatted floors may NOT count as perch space

35. Copyright 2010, Validus Verification Services, LLC All rights reserved. Summary, Continued The definition of a facility has been expanded to include a commonly managed geographical region The top non-conformances in 2014 were lack of ammonia and light testing PAACO training will be held in August of 2015 in N. Carolina A brand-new UEP 5-Star tool was introduced in 2014 We have now been doing SQF audits for nearly a year and have 4 certified SQF auditors

36. Copyright 2010, Validus Verification Services, LLC All rights reserved. Questions?

37. Copyright 2010, Validus Verification Services, LLC All rights reserved. Questions? OR