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2016 REGIONAL MEETINGS

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2016 REGIONAL MEETINGS

2

TODAY’S AGENDA

CFO Performance Report

___________________________________________________

Production and Demand, and Pricing

___________________________________________________

CFO Connects

___________________________________________________

CFO Communicates

___________________________________________________

FBCC – Actively Preparing for AI Outbreaks

___________________________________________________

Latest Developments on Sustainable Chicken Production

___________________________________________________

We Value Your Feedback – Consultation Sessions

3

Communications and Disclosure:

Communications is a core CFO value. All communications reflect on CFO’s regulatory role,

image and business. As such, CFO will strive to provide relevant, honest, accurate and timely

information to stakeholders about its performance and to make clear disclosures in all public

reports. CFO is committed to communicating openly about its operations without

compromising regulatory, proprietary and confidential information.

Forward Looking ,“Safe Harbor” Statement:

This presentation may contain certain forward-looking statements. These forward-looking

statements speak to conditions only as of the date on which these statements are made. CFO

cautions stakeholders not to place undue reliance on any forward-looking statements as a

number of factors could cause actual future results, conditions, actions or events to differ

materially from the targets, expectations, estimates or intentions expressed in the forward-

looking statements.

4

Rob Dougans,

President & CEO

Henry Zantingh,

Board Chair

Fresh Ideas, Growing Together

2016 Regional Meetings

Henry Zantingh & Rob Dougans

CFO Performance Update

June/July 2016 CFO Farmer-Member Regional Meetings

• Way Forward Plan: Ambition, Strategy, and Action

• Executing for Results: 2016 Priority Initiatives

For discussion today

June/July 2016 CFO Farmer-Member Regional Meetings

Leading the Way Forward

OUR MISSION:

To lead positive change and

build value as Canada’s premier

provider of trusted, family-

farmed, safe, high quality

chicken

…AND HOW WE WILL ACHIEVE IT

Leadership

Accountability

Excellence

Collaboration

Innovation

June/July 2016 CFO Farmer-Member Regional Meetings

Leading the Way Forward:Setting the stage for sustainable growth and production

Supply Management Leader and Steward

Regulatory goals,

1. Deliver responsive value-creating regulation,

2. Promote farming and industry growth, stability and

sustainability through effective regulatory oversight,

3. Deliver effective compliance, supervision and

enforcement,

4. Be an accountable, effective and efficient organization

June/July 2016 CFO Farmer-Member Regional Meetings

Leading the Way Forward:Setting the stage for sustainable growth and production

Minimum Effective Regulation

Regulatory principles,

1. Establish a “case for action”

2. Define objectives and examine regulatory alternatives

3. Adopt the option with the greatest net benefit

4. Promote, communicate and educate for success

5. Consult effectively with stakeholders

6. Revisit regulation regularly

June/July 2016 CFO Farmer-Member Regional Meetings

We are committed to involving those who will be impacted by

CFO strategies, policies, regulations and standards

in the development process

Transparency, Accountability, Performance:Communications, outreach and participation at Regionals

June/July 2016 CFO Farmer-Member Regional Meetings

• Way Forward Plan: Ambition, Strategy, and Action

• Executing for Results: 2016 Priority Initiatives

For discussion today

June/July 2016 CFO Farmer-Member Regional Meetings

Strategically evolve, build and expand CFO’s business

portfolio: 3 key segments for profitable growth

Supply Management

Steward and

Regulator

Farmer-Member

Business Advocate

Three business segments

- multiple product areas Value

Chain Partner

CFO

Core

Products & programs

1

CFO

Specialty

Products & programs

2

CFO

Community

Products & programs

3

Build and Leverage Leading Positions in Three Attractive Strategic Market Segments

Established

Developing

Emerging & New

June/July 2016 CFO Farmer-Member Regional Meetings

Evolving and strengthening CFO’s business portfolio to

achieve significant, sustainable performance

Supply Management

Steward and

Regulator

Farmer-Member

Business Advocate

Industry Value

Chain PartnerCFO

Core

Products & programs

1

STABLE GROWTH

• Production Optimization: Drive reliability, safety and

efficiency

• Raised Without Antibiotics: Meet growing consumer

demand

• Modular Operations: Evolve industry value chain

logistics

• High Standards: Evolve to 3rd party audit assurance

• AMU Reduction: Implement a paced reduction plan

• International: Grow a profitable business

Established

June/July 2016 CFO Farmer-Member Regional Meetings

Evolving and strengthening CFO’s business portfolio to

achieve significant, sustainable performance

Supply Management

Steward and

Regulator

Farmer-Member

Business Advocate

Industry Value

Chain PartnerCFO

Specialty

Products & programs

2

FAST, PROFITABLE GROWTH

• Specialty Breeds: Scale-up

• Organic: Scale-up

• Kosher: Deliver Ontario solution

• Growth Driven Platforms: Identify and

develop new growth-driven platforms (GDP)

• New Entrant Processor: Support Organic

scale-up & sustainability

• International: Grow a profitable business

Developing

June/July 2016 CFO Farmer-Member Regional Meetings

Evolving and strengthening CFO’s business portfolio to

achieve significant, sustainable performance

Supply Management

Steward and

Regulator

Farmer-Member

Business Advocate

Industry Value

Chain PartnerCFO

Community

Products & programs

3

NEW GROWTH

• Family-Food: Active stewardship

• Artisanal: Pioneer, tap into new opportunities

and commercialize

• Local Niche: Pioneer, tap into new

opportunities and commercialize

• Innovation & Business Development: Launch,

leverage and invigorate growth

• New: “Seed for the future”- identify and

capture new opportunities

Emerging & New

June/July 2016 CFO Farmer-Member Regional Meetings

• Way Forward Plan: Ambition, Strategy, and Action

• Executing for Results: 2016 Priority Initiatives

For discussion today

June/July 2016 CFO Farmer-Member Regional Meetings

Sustainable Growth:Focus on system evolution and performance

National allocation

• Continue lead improving Ontario and national allocation approaches,

processes and outcomes

Ontario Pricing

• Maintain focus on fairness, transparency, stability

• Plan for the future

Advocacy

• Continue to engage politicians in Ontario and Federally

• Raise CFO profile, brand strength and effectiveness

Stakeholder engagement & trust

• Promote transparency and active engagement

• “Walk the talk” through communication and consultations

June/July 2016 CFO Farmer-Member Regional Meetings

Sustainable Growth:Focus on system evolution and performance

Growth-driven business platforms

• Identify and access consumer-led market(s) evolution to drive growth

World-class sustainable farming operations

• Develop solutions, technologies and tools to enhance animal welfare,

improve quality and optimize production

“Minimum Effective Regulation”

• Rethink policy and regulatory development, delivery, and impact

(efficiency, transparency, accountability, adaptability, and coherence)

June/July 2016 CFO Farmer-Member Regional Meetings

Sustainable Growth:CFO Connects- farming in the digital age

2016

2017

2018+

Deploy SAP enterprise technology and

communication platform

Digital Transformation of Industry

World-class cyber

security for assets & operations

safety

Harness platform through

Big Data, Real-time Analytics

and Mobility

Drive value-building

outcomes & stimulate

innovation

Measure & Report

Operational Success

Spread Ideas

Continued

modernization of

Industry by leveraging

current technology tools

Maximize benefits to

farmer-members &

industry

Deliver a faster, smarter

more flexible Industry

June/July 2016 CFO Farmer-Member Regional Meetings

Responsible national system leadership:The rapidly changing environment presents new challenges

June/July 2016 CFO Farmer-Member Regional Meetings

Premier Provider:Advancing sustainable production the CFO Way

RELIABILITY

SAFETY

EFFICIENCY

TECHNOLOGY

Highest Standards

Positive, Productive

Relationships

Faster

Innovation

We are focused on value creation in chicken production and marketing

June/July 2016 CFO Farmer-Member Regional Meetings

• As of February 19, 2017, the first quota period of the new year (A-142)

• A new 7-week growing cycle option

• Those currently growing and marketing on a 12-week cycle will be required to move to a 10, 9, 8, or 7 cycle

• CFO will continuously review production approaches to ensure better planning, operations management, control, and performance results

Sustainable Production:Extensive consultations support optimizing production cycles

June/July 2016 CFO Farmer-Member Regional Meetings

1203 ACTIVE FARMS 3148 PRODUCTION FLOORS

Sustainable Production:Optimizing barn assets

June/July 2016 CFO Farmer-Member Regional Meetings

•Animal health and welfare needs driving change

•First processor now operating with modules

• Individual processors formulating their plans for the future

•CFO may develop regulations to facilitate a positive, productive industry transition

Sustainable Production:Ontario chicken industry is transitioning to modular loading

June/July 2016 CFO Farmer-Member Regional Meetings

Sustainable Production:Improving chick supply is a mission-critical priority

We strive to build effective, fair

and sustainable relationships

with our supplier-vendors who

deliver performance:

optimizing quality, cost, service,

speed and flexibility

218 Million Chicks Purchased*

$158 Million

*Domestic & Imported

June/July 2016 CFO Farmer-Member Regional Meetings

Where required, we are advancing

strategies to set the production

performance standards in our

chicken sector

Sustainable Production:Delivering “Ontario First” standards

June/July 2016 CFO Farmer-Member Regional Meetings

Supply Management Performance: Being a governance leader, delivering results

We ensure the responsible, value-driven management

and control of CFO through:

1. Strategic leadership and accountability

2. Risk management and continuous improvement

3. Key stakeholder communications

4. Performance management against the agreed to key

goals

5. Transparent, timely and relevant reporting

6. Effective succession

June/July 2016 CFO Farmer-Member Regional Meetings

Delivering Good Governance:Execution of the governance plan is well underway

We are actively enhancing how we recruit and evaluate Board

Directors

• Diversity & Inclusion Statement

• Board Director& District Committee Representative

Recruitment Matrix

• Candidate Nomination Processes

June/July 2016 CFO Farmer-Member Regional Meetings

We work together, unified by our respect for each other, CFO values, and the

pursuit of our business strategy. Diversity at CFO is understanding,

recognizing, and valuing the differences that make each person unique.

CFO is committed to developing a diverse Board, District Committee

Representatives and staff-associate team that represents the communities

that CFO serves within Ontario, and strengthens our role in the industry.

Delivering Good Governance:Diversity & inclusion from strategy into action

June/July 2016 CFO Farmer-Member Regional Meetings

Delivering Good Governance:Director and District Representative Recruitment

Seeking The Right Mix of Skill & Experience

Recruitment MatrixHigh Qualified Candidates

• Successful Farmer Respected with-in the farmer community

Demonstrated good business practices

Progressive & innovative

• Community Involvement Active and engaged in the community

Experience with different organizations

• Leadership Positions Leadership experience not only in agriculture

but from a variety of organizations

• Lifelong Learning Ongoing, voluntary and self-motivated

• Effective Communicator Skilled at conveying information and ideas

Works effectively with others

June/July 2016 CFO Farmer-Member Regional Meetings

Delivering Good Governance:Board & DCR Recruitment 2016

Recruitment plan for Districts 1-5

June/July:

• Regional meetings announcement

• Prepare list of quota holders within each election district including certain demographics (TBD),

canvass feedback from field and staff

• Communications: website enhancements to include nominations matrix and refresh of

Responsible Leadership section

July:

• Digital campaign kick-off

• Outreach survey -to identify any interested candidates or farmers wishing to learn more

August:

• Pool together internal assessment and survey results for G&L committee

• Develop “recruitment information” package for candidates

August/September:

• Begin outreach strategy (TBD) to potential candidates

October/November:

• Election campaign begins

June/July 2016 CFO Farmer-Member Regional Meetings

June/July 2016 CFO Farmer-Member Regional Meetings

CFO Cares – Let’s keep up the good work!

June/July 2016 CFO Farmer-Member Regional Meetings

Significant opportunity

Business scale

Value creation, expanding profit pools

Digital industry ecosystem

Progressive supply management leadership

A tested team

Key Takeaways:The investment rationale for Ontario chicken is compelling

June/July 2016 CFO Farmer-Member Regional Meetings

Thank you for your trust, confidence

and continuous support!

Key Takeaways:Our way forward value creating plan is delivering results

36

James Corpuz

Supervisor - Pricing, Markets

and Business Analyses

PRODUCTION AND DEMAND, AND PRICING

37

Ontario has been experiencing accelerated growth in 2016

Feed

Chick

2016 is based on allocations to A-140

38

Chicken has been gaining market share from other

meat proteins over time

Most of the recent gains have been due to supply

challenges in beef

Chicken

Beef + Pork

39

The cattle herd declined in 2014 and began expanding in

2015 from historically low levels

Beef supply has began expanding in 2015, herd

expansion takes 3-4 years

Chicken is expected to grow above historical

norms, but at a moderating rate as beef supply

normalizes

40

2017 Outlook: moderating growth

• Growth in imports is

primarily driven by

growth in Imports

Labelled Fowl and

the Duty Relief

Program

• CFO is working

closely with CFC in

its efforts to control

broiler chicken

imports

41

Domestic production has been growing but losing market

share to imports

42

CFO focuses on improving intelligence on market demand

Data Source: Direct Link

Data for foodservice dollar and volume

sales for chicken

Foodservice Channel

Data Source: Nielsen MarketTrack

Data for retail dollar and volume sales for

the following categories:

o Fresh protein meat (chicken, beef, pork,

turkey, all other)

o Frozen chicken products

Retail Channel

*Estimated by Restaurants Canada

~62% market share* ~38% market share*

CFO has provided thought leadership to CFC stakeholders by providing

insights on all material consumer channels

CFO actively works to influence CFC stakeholders in setting allocations that

meet market demand

43

Ontario FGMLP is now underpinned by a COP Formula

Regulation 402

COP Formula

Negotiating Agency

Chicken Farmers of

Ontario

Ontario Licenced

Processors

Agreement OR Arbitration

Farm-Gate Minimum Live Price

44

Resetting with surveys is required at least every 5 years,

next COPF survey is required in 2018

2012 2013 2014 2015 2016 2017 2018 2019

Y1 Y2 Y3 Y4 Y5

SurveyCost yearIntended

implementation

Actual

implementation

Y1

SurveyCost yearPlanned

implementation

COPF 1.0

COPF 2.0

Annual

Updates &

Adjustment

Annual

Updates &

Adjustment

Annual

Updates &

Adjustment

Annual

Updates &

Adjustment

45

CFO CONNECTS

John Um

Director, Information Technology

46

CFO Connects

CFO Connects Activation – Update

CFO Connects: Digital Platforms - Vision

47

CFO Connects

CFO Connects Activation – Update

48

Value: Activation of Farmer-Members

Objective Value

• CFO Connects has resulted in a huge “paradigm shift” in the

chicken industry – many farmers who we all thought would not

successfully convert from a paper-based system to a digital

system

• System went “live” on June 14, 2015

• 1166 farms activated in 337 days

• Number of forms submitted via the portal to date

- > 9500 Form 3’s

- > 30,000 Form 6’s

• Ambitious training plan accomplished with limited resources

• Solution implemented for “non-digital” farmers

• All farmer-members

activated on CFO

Connects

March 2014 Trace SWOT Analysis – “Wide cross-section of farmers with respect to technology capability and interest in electronic data capture”

49

3.4 Risk ManagementFarmer-Member Digital On-Boarding

11.3%

60.9%

27.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

One-on-One Workshop Webinar

50

Value: Activation of Processors

Objective Value

• 24 processors activated

• Relationships with our processors are better than they have

ever been

• Activation team took the time to understand individual business

processes

• Worked closely with processors following activation to ensure

that the system was meeting their needs

• Implemented almost 40 system enhancements

• All Processors

activated on CFO

Connects

March 2014 Trace SWOT Analysis – “Processor engagement and acceptance was not originally expected to be a barrier to success however it did prove to be a challenge throughout the Trace project”

51

Value: Activation of Transporters

Objective Value

• 17 live-haul transporters activated

• Close to 200 driver accounts created

• Driver texting process accounts for ~ 90 to 95 % of driver data

entry

• 2 transporters have implemented electronic Bill of Lading

systems with direct data upload to the Form 6; 1 more company

has plans to implement

• All Transporters

activated on CFO

Connects

March 2014 Trace SWOT Analysis – “Transport sector not tech-savvy and resistant to change. Transport sector wary of incurring additional costs. Moderate success on transporter data entry (company-dependent) with negative impact on processor support for roll out of Form 6”

52

Value: Activation of Other Industry Stakeholders

Objective Value

CFIA

• Strengthened relationships at national and regional levels

• Have adapted the system to accommodate CFIA regulatory

requirements, including regional differences (Quebec vs

Ontario)

OMAFRA

• Overcame resistance to use of digital forms

Hatcheries

• Streamlined data transfer process from hatcheries to CFO with

onus on hatcheries for accurate, timely data reporting

• Signed agreement with Quebec hatchery association (LCQ) to

have Quebec hatcheries report placement data to CFO

• Complete activation of

all industry

stakeholders

53

CFO Connects

CFO Connects: Digital Platforms - Vision

54

Version 2.0: Key Highlights

Objective Value

Drive self-serve model

• Make historical data available to farmer-members through

reporting

• Build portal functionality & value

• Reduce data entry and data errors

• Meet processor business requirements

Specialty Portal

• Integrate specialty farmer-members into CFO Connects

• Develop the base model for other community programs

Contracting

Processor Enhancements

Specialty Portal

Historical Reports

55

Version 3.0: Key Highlights

Objective Value

Complete Activation Enhancements

• Further demonstrate the business partnership with Ontario’s

processing community

• Increase the usability of the CFO Connects portal for

processors

Align Web Presence

• Create a cohesive feel between the CFO websites

• Allow farmer-members to log in once for their business

transactions and resource material

• Move Board and DCR portal to best in class Microsoft

SharePoint infrastructure

Complete Activation

Enhancements

Portal Alignment

56

Version 4.0: Key Highlights

Objective Value

Industry Analytics

• Increased reporting capability will allow the industry value

chain to greatly improve its efficiency

• Monitor the health and efficiency of the industry as a whole

• Allow better forecasting capability for industry stakeholders

Advance Mobile Platform

• Develop mobile applications to provide secure and user

friendly way to access CFO Connects

Agri-Food Analytics

Mobile Apps

57

Any questions?

Questions

58

Kathryn Goodish

Manager, Communications and Marketing

59

HOW WE COMMUNICATE

60

WHAT’S NEW @ontariochicken.ca

61

TARGETED E-MAIL CAMPAIGNS

62

WHAT’S NEW @ontariochicken.ca

63

WHAT’S NEW @ontariochicken.ca

64

WHAT’S NEW @ontariochicken.ca

65

INTRODUCING…

NEW FARMER-MEMBER RESOURCE AREA

66

WE’RE SOCIAL!

67

THANK YOU

68

Dr. Tom Baker

Incident Commander

MISSION

Proactively manage (prepare, respond and recover) incidents and emergencies for the poultry industry

VISION

Achieve an Emergency-free Ontario Poultry Industry

Providing a highly effective, rapid response system to manage

incidents and emergencies for Ontario’s poultry industry

CFO Regional Meetings

Dr. Tom BakerIncident Commander/ManagerFeather Board Command Centre

Actively Preparing for AI outbreaks: Business Continuity and Disease Insurance

Providing a highly effective rapid response system to manage

incidents and emergencies for Ontario’s poultry industry

70

International AI Assessment

71

• Over the past 50 years, one new or variant disease every year in North America

• In last 2 years, 41 outbreaks of H5 and H7 avian influenza (AI) in 20 countries

• Proof that outbreaks are associated with biosecurity breaches. Its not random!

Risk management is critical for the sustainability

and profitability of the Ontario poultry industry

72

Prevention

Preparedness

Response

Recovery

COSTS

FBCC Disease Recovery Initiative

“Sustaining the Poultry Industry in the face of Infectious Disease Outbreaks utilizing Movement Permits and Risk Transfer Programs”

• Federal government’s Agri-Risk Initiative supports research and development of new risk management tools

• FBCC just received conditional approval for a non-repayable contribution of up to $298,800 to explore business continuity and insurance options for Ontario

• Final approval pending for July 1 start up, based on finalizing contribution agreement

73

Project Benefits

• Incent farmers to report disease

• Incent farmers to accelerate C&D

• Encourage biosecurity compliance

• Avoid large unbudgeted costs

• Protect a secure food supply through business continuity

74

Two Key Project Objectives

1. Expedite approval of CFIA movement permits during reportable disease outbreaks through alignment of industry biosecurity standards

2. Identify potential AI insurance options for farmers by assessing disease risk in Ontario and holding industry consultations

75

Biosecurity Activities

1. Farmer consultations on AI risk and biosecurity protocols

2. Industry wide consultations

3. Review and align biosecurity SOPs across industry

4. Develop and simulate recovery planning protocols

76

Insurance Activities

1. Producer consultations

2. Review previous Ontario insurance studies

3. Update/create commodity specific Loss Quantification Models

4. Model disease scenarios

5. Conduct actuarial analysis on disease modelling outputs

77

Food for thought

• Do you feel adequately prepared to face an AI outbreak on your farm or in your vicinity?

• Have you made any changes to your biosecurity plan, SOPs or related practices since last spring’s Avian Influenza outbreak in south western Ontario? Please indicate what they were?

• What are your SOPs for self-quarantine in case of a suspected serious infectious disease on your farm?

• How would you compare your biosecurity standards with the suppliers and service providers who come on your farm?

• Do you currently have AI insurance? Have you ever had a policy? If not why not? Do your feel current available insurance products are sufficient in coverage? Do you feel premiums are appropriate?

78

79

Dr. Gwen Zellen

Vice President, Quality, Technical Affairs

and Sustainability

Dr. Gwen Zellen, Vice President

Quality, Technical Affairs and Sustainability

Fresh Ideas, Growing Together

Latest developments on sustainable chicken production

A world without antibiotics?

81

USA Centers for Disease Control and Prevention

(CDC)• 23,000 death/year due to AMR

• 2,000,000+ illnesses caused by AMR

Human Deaths in Europe and Cephalosporin use

in Poultry• 1,518 additional deaths

• Increase of 67,236 days of hospital admissions

AMR is a One-Health Issue

• Science lost the leading mandate

• EU - 2006 – removed use of all

antibiotics for growth promotion

• EU - 2011 – recommendation to

restrict preventive use

• UK O’Neill Report (May 19, 2016)

82

With international recognition, mandate switched from science to politics with increased media attention and legislative recognition

83

2. Restrictions on certain types

of highly critical antibiotics.

Too many antibiotics that are

now last-line drugs for

humans are being used in

agriculture; action should be

taken on this urgently by an

international panel.

3. We must improve

transparency from food

producers on the antibiotics

used to raise the meat that

we eat, to enable consumers

to make more informed

purchase decisions.

Animal Agriculture Three Key Recommendations

84

Learnings for Chicken Farmers of Ontario

• 200 delegates and speakers from 27 countries

• Animal health/pharmaceutics, equipment and feed manufacturers,

distributors, consultants, farmers, veterinarians, primary breeders,

businesses, integrated companies, academics, corporations, grocer,

publisher

85

Poultry Summit Europe 2016: A world without Antibiotics?Wake up time to improve hatchery to meet welfare and ABF Production

86

Poultry Summit addressed SIX KEY CHALLENGES of the poultry

industry, offering themed insights from a customer/consumer, scientific and industrial perspective:

1. Genetic Selection, Breeding and Early Feeding

2. Biosecurity

3. Stress Reduction on the Farm

4. Diet Optimization

5. Animal Welfare and Sustainability

6. Consumer Acceptance

A world without antibiotics?

Value creation – From Feed to Food

• Cobb geneticist

• To meet consumer demand for raising without

antibiotics, need to focus on selection for intestinal

health and nutrition

• Research on response to disease challenges

• 3-5 year window for improvements

• Wake up time to improve hatchery to meet welfare and ABF

production

• Hatchery – Superior conditions fundamental in antibiotic

free production

• Temperature, light, water, feed, stress free

• Time in hatchery is now 40% of lifespan87

Genetic Selection, Breeding and Early Feeding

Temperature

• Uniform

• Overheat, direct relationship to smaller, poor navel

• Research – lower incubation (100F) = 64% improvement organ

weights

Light

• Light schedule during incubation positively impacts bone development

• Light during and after hatch is important

Stress free

• Feed, water and light available

• Minimum handling and noise as hatch cradle is transport basket

allows rest

• More space and more hygienic

88

HatchCare and Viscon provide superior conditions

fundamental in antibiotic free production

89

HatchCare and Viscon provide superior conditions

fundamental in antibiotic free production

90

• Egg shells separated from

chicks increased hygiene and

space

• Immediate access to feed and

water with

95% crop fill

• Chicks stay in hatch cradle for

delivery

• Less handling reduces stress

and increase hygiene

• 4 grams/chick

HatchCare incubators provide superior conditions

fundamental in antibiotic free production

• Time of hatch and access to feed and water impacts on gut

development

• First hours of life important for intestinal growth and

development; longer you wait, the less impact nutrition will

have

• Villi length and crypt depth grow exponentially; negative

impact also exponential

• Improve immune development; when feed and water not

available, yolk is burned for tissue growth instead of immunity

• Shift from yolk lipids, to building based on carbohydrates and

protein 91

Science supporting value of early feed and water

92

• HatchCare in 4-6 hatcheries;

2 hatcheries supply 40-60%

• Chicks eat during transport

• Chicks cost 20% more

• 10-15% farmers hatch on farm

• 12-15% heavier - farm, 10% heavier -7 days, 5% heavier - processing (saves

1-2 days); farmer report less antibiotic use

• Several farmer hatchery Co-ops have arisen to control chick inputs; more

integration - “farmers independent and want to maintain control”

Netherlands chicken production starts with quality chicks

• HatchCare in 4-6 countries - how do we promote in Ontario?

• USA – Bell and Evans, Fredericksburg, PA

• Canada – Synergy Agri Group, Nova Scotia

• PIC Poultry Health Day – June 9

Hatch Care Incubation & Chick Care System – A Canadian hatchery’s

early experiences of raising chicks with early feeding – Doug Kaizer and

Ron Testrote, Synergy Agri Group, NS

Everything I know about raising Antibiotic Free Birds for many years –

Dr. Gary Gladys, Pennsylvania Poultry Consultant

93

Chick quality a worldwide issue:

HatchCare in other countries

94

1.Genetic Selection, Breeding and Early Feeding

2.Biosecurity

3.Stress Reduction on the Farm

4.Diet Optimization

5.Animal Welfare and Sustainability

6.Consumer Acceptance

A world without Antibiotics?

Value creation from Feed to Food

• Improvements in hatchery biosecurity through technology

and automation

• Dead and infertile eggs removed

• In-ovo vaccination of fertile eggs only

• Chicks separated from egg shells

• Chicks remain in hatch baskets (not moved, handled or

conveyed)

• Discussed tool for farmers to self assess biosecurity; level of

biosecurity of farmers in Netherlands unknown

• Question regarding cleaning and disinfecting between

flocks; science not available (farmers in Netherlands clean

and disinfect between each flock)95

Hatchery and on-farm biosecurity are key to reduce

challenges when growing without antibiotics

• Salmonella testing in all broiler flocks in Netherlands at 4

weeks (mandated by processor) – slaughtered at end of day

• Norway – Salmonella positive broiler flocks are culled and not

processed

• Campylobacter in Canada (PHAC research)

• remains number one cause of foodborne illness; linked to

Category 1 resistance

• most important source of contamination appears to be barn

and farm environment, particularly in barns that were

improperly cleaned and disinfected, had insufficient

downtime between flocks and poor biosecurity practices

96

Increased pressure for on-farm monitoring and control of

Salmonella and Campylobacter

97

1.Genetic Selection, Breeding and Early Feeding

2.Biosecurity

3.Stress Reduction on the Farm

4.Diet Optimization

5.Animal Welfare and Sustainability

6.Consumer Acceptance

A world without Antibiotics?

Value creation from Feed to Food

• Feed additives have been used for the last 30 years in

poultry

• reduces pathogenic bacteria

• modulates and increases beneficial gut microflora to

take their place

• improves health and performance

• Research to improve availability and impact of various feed

additives

Animal welfare and sustainability important to balance

when raising birds without antibiotics

98

Diet optimization is an important tool to raise birds without

antibiotics

A world without Antibiotics? Value creation from Feed to Food

99

1.Genetic Selection, Breeding and Early Feeding

2.Biosecurity

3.Stress Reduction on the Farm

4.Diet Optimization

5.Animal Welfare and Sustainability

6.Consumer Acceptance

A world without Antibiotics?

Value creation From Feed to Food

• TESCO Sustainable Farming Group – Poultry and Eggs

monitor antibiotic use in the poultry sector

• Data and analysis is key: challenge of national differences

in constraints on usage and lack of accurate reporting data

• Tesco Approach: Outcome Measures (OMS) – move towards

use of outcomes derived from animal based measures in

both farm and slaughter situations

• % mortality, leg culls, hock burn, pododermatitis

• antibiotic usage until end of life

• Tesco Code of Practice: Drugs that are of “critical

importance” must not be used preferentially10

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Consumer acceptance driving transparency in antibiotic

usage: Communication is key

2016 REGIONAL MEETINGS