USAHA/AAVLD Meeting. UEP-HSUS Agreement for Federal Egg Legislation. By: Gene Gregory President/CEO. United Egg Producers

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1 USAHA/AAVLD Meeting UEP-HSUS Agreement for Federal Egg Legislation By: Gene Gregory President/CEO United Egg Greensboro, NC. Oct. 22, 2012 United Egg Leadership by - for

2 Conventional Cages = approximately 95% (270 million hens) Non-Cage Systems = approximately 5% (15 million hens) Approximately 85% of all eggs producer under the UEP Certified animal welfare program. A voluntary program established in 2002 based upon recommendations of an independent scientific advisory committee.

3 Dr. Jeff Armstrong Purdue - Chair Dr. Patricia Hester Purdue (Chair) Donald Bell U. of CA./Riverside Dr. Bill Chase - Veterinarian Dr. Bill Chase Veterinarian Dr. Gail Golab - AVMA Adele Douglass AHA Dr. Joy Mench U. of CA./Davis Dr. Patricia Hester Purdue Dr. Ruth Newberry - WSU Dr. Joy Mench U. of CA./Davis Dr. Janice Swanson - MSU Dr. Ruth Newberry WSU Dr. Paul Thompson - MSU Dr. Larry Stanker USDA/ARS Dr. Donald Conner - Auburn Dr. Janice Swanson Kansas State Dr. Hongwei Xin Iowa State Dr. Jeff Armstrong - Cal Poly State University - Consultant Leadership by - For

4 Beak Trimming and Treatment Non-feed withdrawal molting Handling, Catching & Transportation Euthanasia and on-farm depopulation Biosecurity and animal health Cage housing and space per bird Lighting, Air Quality, Feed & Water Nest, perches and litter for cage-free Employee Conduct Company must meet the guidelines on 100% of their flocks to be Certified. Must have annual audits by USDA/AMS or Validus Leadership by - For

5 Conventional Cages: 67 square inches for White Birds 76 square inches for Brown Birds Prior to guidelines industry was at 48 to 50 square inches. Cage-Free 1.0 to 1.5 square feet per bird depending upon the type of housing. Leadership by - For

6 Despite having implemented science-based UEP Certified program, our industry has continued to be challenged by animal activist groups. State legislations and state ballot initiatives Lawsuits Undercover farm videos Market intimidation of our customers UEP and egg farmers have spent millions of dollars defending our industry.

7 California s Prop 2 and (HSUS says requires cage-free) Michigan (HSUS says 144 square inches space per bird.) Ohio (question about future housing) HSUS Plans Underway Prior to July 7, 2011 Washington (216 square inches and no cages) Oregon (216 square inches and no cages) The above states represent 65 million of the nation s 285 million hens. 24 states have right of ballot initiative.

8 Leadership by - For

9 It is not so much about where eggs are produced but more so about where eggs can be marketed. A patchwork of 24 state laws restricting the free flow of eggs would be a nightmare for egg farmers and retailers. Take Iowa for example: 55 million hens and 3 million people. Iowa is not a ballot initiative state but where are they going to sell their eggs. Across the U.S. we have some states that are egg deficit and some are surplus states. Eggs must move across state lines to accommodate our customers. WE AND OUR CUSTOMERS CANNOT LIVE WITH CONFLICTING STATE LAWS. Leadership by - For

10 UEP believed in consumer choice and supported all forms of egg production. HSUS advocated for a total cage-free industry. The first meeting with Wayne Pacelle (President HSUS) took place in March 2011 in an effort to resolve this conflict and to see if we could agree upon a sustainable egg industry.

11 On July 7, 2011 UEP and HSUS agreed to seek federal legislation for the transition from conventional cages to enriched colony cages over a year period. Decision supported by UEP s Board and vast majority of UEP members. Intent is to amend the Egg Products Inspection Act to make it clear this is only an egg bill and not an impact upon other farm animals. Check out for lots of information. Leadership by - For

12 Introduced in the House of Representatives on January 23, 2012 by: Rep. Kurt Schrader (D-OR) Rep. Sam Farr (D-CA) Rep. Elton Gallegly (R-CA) Rep. Jeff Denham (R-CA) As of October 1 st additional House members had signed on as co-sponsors of the legislation. Leadership by - For

13 Introduced and co-sponsored by: Dianne Feinstein (CA) Richard Blumenthal (CT) Scott Brown (MA) Maria Cantwell (WA) Jeff Merkley (OR) David Vitter (LA) Ron Wyden (OR) 13 additional co-sponsors added since being introduced. Leadership by - For

14 Our egg bill was not considered as an amendment by either the House or Senate Agricultural Committees in discussions of a 2012 Farm Bill. Chairman of the House Agriculture Committee (Frank Lucas (R) from OK is opposed to our legislation. Chairman of the Senate Agriculture Committee, Debbie Stabenow (D) from MI is supportive. They set the agendas. Senator Stabenow held a committee meeting in order to get our egg bill on the record. Three egg farmers were invited to provide testimony. Egg farmers owing more than 50% of the nation s laying hens were in the audience. Congress goes home for recess and will not take up a Farm Bill until after the election. We hope our egg bill will be considered at that time. Leadership by - For

15 As of 4 years from date of enactment, all conventional cages must provide 67 square inches for white birds. Existing cages may remain at 67 sq. in. for years providing targets are met for the installation of new enrichable cages. After 6 years the industry (as a whole) will be surveyed by the USDA Secretary to determine if the industry has at least 25% of total housing in enrichable cages. Leadership by - For

16 Three years from enactment of the legislation new cages must be of the enriched colony style and must ultimately be capable of being enriched with nest, perches and scratch area. Cage space per bird will be phased in over 15 years starting at 78 square inches per bird and moving on a three year schedule to square inches per bird. Will be fully implemented by Leadership by - For

17 Nine (9) years from date of enactment of the Act and thereafter all enrichable cages will be required to meet 101 square inches for white birds. At this time enrichments nest box, perches, and scratch areas must be added to the cages. The per bird space for each enrichment has not been determined and hopefully will be by science within 9 years of enactment of the Act. Leadership by - For

18 Let s assume each cage has 7,344 square inches of floor space. How many birds per cage? First 3 years = sq. in. Next 3 years = sq. in. Next 3 years = sq. in. Next 3 years = sq. in. Final phase in = sq. in. Leadership by - For

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20 Category Enriched Cage Hy-Line Standard Mortality 4.22% 7.61% Ave. Production 84.99% 81.81% Eggs Per Hen Feed conversion 3.19# 3.00# Birds provided 116 square inches of space, with nest, perches and scratch area. Leadership by - For

21 One year after enactment all eggs must be labeled. Eggs from Caged Hens Eggs from Hens in Enriched Cages Eggs from Cage-Free Hens Eggs from Free-Range Hens

22 Stops all state legislation and ballot initiatives Clarified the standards for California, Michigan, Ohio, Oregon and Washington. HSUS accepted enriched colony housing. HSUS would stop lawsuits and undercover farm videos. Allows eggs to continue flowing across state lines, Time to use existing conventional cages. Allows a phase-in schedule that avoids market disruptions. Allow a phase-in that will assist with cost averaging and therefore major price increases for consumers.

23 Recognition that factors beyond science are at play such as economics, social contract/license and holistic approach to sustainability. Pathway for saving cages are limited, science behind enriched cages is solid. Multiple states with cage bans could lead to an unsustainable situation headed toward non-cage as the dominate source of eggs. UEP may have put forth the best deal possible in resolving the conflict with HSUS. Leadership by - For

24 There is increasing scientific evidence indicating that housing in large enriched cages can be an acceptable approach to supporting good welfare of laying hens, potentially combining the benefits of both conventional cages and cagefree housing. On this basis, the Scientific Committee has made preliminary recommendations regarding implementation of these housing systems in the United States. Leadership by - For

25 This is not a small undertaking not just reducing the number of hens per house or cage. This is rebuilding an entire industry. Some have estimated costs to exceed $4 billion. The per dozen cost is estimated at 1.5 cents per dozen over the years of transition and about 6 cents per dozen when fully implemented based upon economic study by Agralytica Consulting. Despite the cost, most egg farmers believe this is the only way to end the conflict with HSUS and have an affordable, sustainable industry. Leadership by - For

26 Despite this being proposed legislation to amend an existing egg law, and despite this may be the best option for survival of many egg farmers we have the following associations lobbying Congress in opposition: National Cattlemen s Beef Associaton National Pork Council American Farm Bureau Federation Leadership by - For

27 Vast Majority of UEP Members Association of California Egg Farmers Colorado Egg Association Florida Poultry Federation Georgia Egg Association Indiana State Poultry Association Michigan Agri-Business Association Michigan Allied Poultry Industries New England Brown Egg Council North Carolina Egg Association Ohio Egg Processors Association Rocky Mountain Farmers Union Leadership by - For

28 American Veterinary Medical Association (AVMA) Dr. Jeff Armstrong President of Cal-Poly State University American Association of Avian Pathologists Association of Avian Veterarians American Humane Association National Consumers League Consumers Federation of America Editorials from 25 major city newspapers. Leadership by - For

29 Online survey of 2,000 voters conducted by The Bantam Group in late Dec and early Jan. 2012: When shown pictures and descriptions of conventional and enriched cages consumers support enriched cages by When shared information about legislation sponsored by UEP and HSUS. Consumers support federal legislation for enriched cages by 4 to 1. Consumers prefer federal legislation over state legislation by 2 to 1. Leadership by - For

30 The agreement between UEP and HSUS provides a clear pathway for egg farmer s future but will this Congress include our bill in a new Farm Bill or will we have to find another avenue. Assures consumers of choices of conventional cage eggs being available for the next 18 years and a sustainable industry. Our ability to pass this legislation may be limited based upon the strong opposition from others in agriculture that seem to feel it is their right to determine the future of egg farmers. Questions

31 Thanks Gene Gregory, President United Egg United Egg