11

ROBERT D. RAGLAND, D.V.M., MPHSenior Staff Officer

Risk and Innovations Management Division OPPD, FSIS, USDA

5601 Sunnyside Avenue, Mail-drop 5271Beltsville, MD 220705-5271

Office: 301-504-0849; Fax: 301-504-70876

E-mail: robert.ragland@fsis.usda.govGuidance for Determining Whether a Poultry Slaughter or Processing Operation is Exempt from

Inspection Requirements of the Poultry Products Inspection Acthttp://origin-www.fsis.usda.gov/OPPDE/rdad/FSISNotices/Poultry_Slaughter_Exemption_0406.pdf

January 21, 2010, Poultry Mobile Slaughter FSIS-Net Conference webinar

Poultry Exemptions Under the Federal

Poultry Products Inspection Act

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History Federal Meat Inspection Act of 1906

and 1957 Wholesome Poultry Products Act

(Public Law 90 – 492– 492)) These twentieth century Acts mandated

federal inspection at businesses that slaughter and process meat and poultry products for use as human food that enter interstate or foreign commerce.

These Acts did not required federal inspection if the meat or poultry products did not enter interstate commerce.

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Thus the First Exemption

During the first half of the 20th century slaughterers and processors of livestock and poultry were exempt from any Federal inspection, if the product did NOT enter interstate commerce.

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Congress amended the Congress amended the Federal Meat Inspection Act in 1967 Federal Meat Inspection Act in 1967

andand Wholesome Poultry Products Act in 1968 Wholesome Poultry Products Act in 1968

Extending the mandate for federal inspection to Extending the mandate for federal inspection to ““ALL”ALL” slaughtering or processing of meat and slaughtering or processing of meat and poultry for shipment within a State, when the State poultry for shipment within a State, when the State does not enforce requirements at least equal to the does not enforce requirements at least equal to the federal inspection requirements in the Actsfederal inspection requirements in the Acts..

Note: Note: These are two different Acts with These are two different Acts with two different sets of Regulations two different sets of Regulations “ “requirements”.requirements”.

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However, it was not the intent of Congress to subject the slaughter and processing of an owner’s private holdings of poultry that are slaughtered and processed for the owner’s personal use to continuous federal inspection, thus both the Poultry and Meat Acts included two personal use exemptions.

Intent of Congress

Two Personal Use Exemptions Provided by Congress in the Poultry and Meat Meat

ActsActs1. The slaughtering and processing of livestock

or poultry for the owner’s personal use.2. The custom slaughter or processing of an

individual’s livestock or poultry for the personal use of the owner (a service).

NOTE: Products produced under these exemptions may NOT be sold in commerce.

In addition, Custom Slaughter exempt livestock products must be marked “NOT for SALE” and exempt poultry product marked “Public Law 90 – 492.” 88

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Regarding poultry, the Poultry Act was passed a Regarding poultry, the Poultry Act was passed a year after the Meat Act and the Poultry Act year after the Meat Act and the Poultry Act included additional types of poultry slaughter included additional types of poultry slaughter and processing that could be exempt; they are and processing that could be exempt; they are exemptions for:exemptions for:

(1) producers/growers and (1) producers/growers and (2) small businesses (2) small businesses

if they meet certain criteria in the Poultry Act.if they meet certain criteria in the Poultry Act.

Exemptions are conditionalExemptions are conditional..

Intent of CongressIntent of CongressAddition Exemption for PoultryAddition Exemption for Poultry

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The PPIA and Federal Regulations Provide The PPIA and Federal Regulations Provide for Several Types of Exempt Slaughter for Several Types of Exempt Slaughter

and Processing Operations/Businesses and Processing Operations/Businesses

1.1. Slaughter & processing of poultry for personnel useSlaughter & processing of poultry for personnel use2.2. Custom slaughter & processing-personal useCustom slaughter & processing-personal use3.3. Producer/Grower no more than 1,000/calendar yr.Producer/Grower no more than 1,000/calendar yr.4.4. Producer/Grower no more than 20,000/calendar yr.Producer/Grower no more than 20,000/calendar yr.5.5. Producer Grower or Other Person (PGOP) no more than Producer Grower or Other Person (PGOP) no more than

20,000/calendar yr.—meals/processing20,000/calendar yr.—meals/processing6.6. Small Enterprises slaughtering/cutting up no more than Small Enterprises slaughtering/cutting up no more than

20,000/calendar yr.—carcasses and parts no processing 20,000/calendar yr.—carcasses and parts no processing 7.7. Retail Stores Retail Stores 8.8. RestaurantsRestaurants

Note: Note: Religious exemption is not in the list.Religious exemption is not in the list.

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Today I will focus on these 4 Today I will focus on these 4 poultry exemptionspoultry exemptions

3.3. Producer/GrowerProducer/Grower 1,000 Limit1,000 Limit;;

4.4. Producer/Grower 20,000 LimitProducer/Grower 20,000 Limit;;

5.5. Producer Grower or Other Person Producer Grower or Other Person (PGOP) 20,000 Limit(PGOP) 20,000 Limit; ;

6.6. Small Enterprises 20,000 LimitSmall Enterprises 20,000 Limit..

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But First a But First a MisconceptionMisconception

An exempt operation is An exempt operation is exempt from all exempt from all

requirements of the Poultry requirements of the Poultry Products Inspection Act Products Inspection Act

(PPIA).(PPIA).

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Exempt From What?Exempt From What?

Exempt operations are exempt Exempt operations are exempt from continuous bird-by-bird from continuous bird-by-bird inspection and the presence of inspection and the presence of FSIS inspectors during the FSIS inspectors during the slaughter of poultry and slaughter of poultry and processing of poultry products.processing of poultry products.

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Another Another MisconceptionMisconception A business may A business may

simultaneously claim simultaneously claim or operate under more or operate under more than one exemption.than one exemption.

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Which and how many exemptions Which and how many exemptions may a person or business claim may a person or business claim

when slaughtering or processing when slaughtering or processing poultry?poultry?

A person or business may slaughter or A person or business may slaughter or process poultry under an exemption if process poultry under an exemption if the operation qualifies for the the operation qualifies for the exemption. exemption.

A slaughterer or processor of poultry A slaughterer or processor of poultry may not simultaneously operate under may not simultaneously operate under more than one exemption during a more than one exemption during a calendar yearcalendar year. .

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Three Basic Requirements (Criteria) Three Basic Requirements (Criteria) for Businesses Slaughtering or Processing for Businesses Slaughtering or Processing

Poultry for Human Food Under a PPIA Poultry for Human Food Under a PPIA ExemptionExemption..

1. The poultry is healthy when slaughtered1. The poultry is healthy when slaughtered

2. The slaughter, processing, and 2. The slaughter, processing, and transportation are conducted under transportation are conducted under sanitary practices and procedures that sanitary practices and procedures that produce poultry products that are produce poultry products that are sound, clean, and fit for human food sound, clean, and fit for human food (not adulterated)(not adulterated)

3. The poultry is not misbranded and is 3. The poultry is not misbranded and is identified as exempt productidentified as exempt product

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Forth CriteriaForth Criteriafor All Businesses Slaughtering or for All Businesses Slaughtering or

Processing Poultry for Human Food Under a Processing Poultry for Human Food Under a PPIA Exemption PPIA Exemption

1. The poultry is healthy when slaughtered.1. The poultry is healthy when slaughtered.2. Slaughter, processing, and transportation are 2. Slaughter, processing, and transportation are

conducted under sanitary standards, conducted under sanitary standards, practices, and procedures that produce practices, and procedures that produce poultry products that are sound, clean, and fit poultry products that are sound, clean, and fit for human food (not adulterated).for human food (not adulterated).

3. The poultry is not misbranded.3. The poultry is not misbranded.

4. 4. Business operates under only Business operates under only one exemption in a calendar one exemption in a calendar yearyear..

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A 5A 5thth and 6 and 6thth Requirements/Limitations Requirements/Limitationsfor all Businesses Slaughtering or for all Businesses Slaughtering or Processing Poultry for Human Food Processing Poultry for Human Food

Under a PPIA Exemption Under a PPIA Exemption 55thth Product cannot bare the Official Product cannot bare the Official USDA mark of inspection.USDA mark of inspection.

6th The poultry products are6th The poultry products are distributed only within the State,distributed only within the State, territory, or DC where producedterritory, or DC where produced i.e. cannot be distributed across i.e. cannot be distributed across State lines. State lines.

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Exemptions’ Six Exemptions’ Six Requirements/LimitationsRequirements/Limitations1.1. The poultry is healthy when slaughtered The poultry is healthy when slaughtered

2.2. The slaughter and processing are The slaughter and processing are conducted under sanitary standards, conducted under sanitary standards, practices, and procedures that produce practices, and procedures that produce poultry products that are sound, clean, poultry products that are sound, clean, and fit for human food (not adulterated) and fit for human food (not adulterated)

3. The poultry is not misbranded, identified 3. The poultry is not misbranded, identified as exempt product and labeledas exempt product and labeled

4. The business operates under only 1 4. The business operates under only 1 exemption during calendar year;exemption during calendar year;

5.5. Product cannot bear the Official USDA Product cannot bear the Official USDA mark of inspectionmark of inspection

6.6. Poultry products do not move in inter-Poultry products do not move in inter-state commerce.state commerce.

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Producer/Grower –Producer/Grower – 1,000 Limit 1,000 Limit ExemptionExemption

A person may slaughter and process A person may slaughter and process poultry: poultry:

a. on his or her premises, poultry a. on his or her premises, poultry that he or she raised and that he or she raised and b. they may distribute such poultry b. they may distribute such poultry without mandatory inspection to without mandatory inspection to customers in the State where slaughtered customers in the State where slaughtered and processes. and processes.

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Labeling Producer/Grower – 1,000 Limit Labeling Producer/Grower – 1,000 Limit ExemptionExemption

The shipping containers, when distributed in intrastate commerce, (instead of all the required features of a label for inspected product) bear:

a. the processor’s name, b. the address, and c. the statement, Exempt P.L. 90-492, and

Safe Handling Instructions FSIS expect the 1,000 limit poultry sold in commerce to bear safe handing instructions.

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Producer/Grower – 20,000 Limit Producer/Grower – 20,000 Limit ExemptionExemption

A Producer/Grower:• slaughters and processes, on his or

her own premises, no more than 20,000 poultry, raised by him or her, in a calendar year provided.

• only distributes poultry products he or she produced under the Producer/Grower Exemption

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Additional Producer/Grower-20,000 Additional Producer/Grower-20,000 Limit Limitations/CriteriaLimit Limitations/Criteria

7. The business slaughters and 7. The business slaughters and processes no more than processes no more than 20,000 20,000 birds/carcassesbirds/carcasses in a calendar in a calendar year under the exemption.year under the exemption.

8. The facility used to slaughter or 8. The facility used to slaughter or process poultry is not used to process poultry is not used to slaughter or process another slaughter or process another person’s poultry unless the person’s poultry unless the Administrator of FSIS grants an Administrator of FSIS grants an exemption [9 CFR 381.10 (b)(2)].exemption [9 CFR 381.10 (b)(2)].

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These two Limitation a3333pply to the These two Limitation a3333pply to the three 20,000 bird limit:three 20,000 bird limit:

1. Producer/Grower 20,000 Limit,1. Producer/Grower 20,000 Limit,

2. Producer Grower or Other Person 2. Producer Grower or Other Person (PGOP) 20,000 Limit exemptions, (PGOP) 20,000 Limit exemptions, andand

3. Small Enterprise exemption 20,000 3. Small Enterprise exemption 20,000

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Eight Exemption Limitations Applicable toEight Exemption Limitations Applicable to Producer/Grower, Producer/Grower Other Person, and Producer/Grower, Producer/Grower Other Person, and

Small Enterprise 20,000 ExemptionsSmall Enterprise 20,000 Exemptions

1.1. The poultry is healthy when slaughtered; The poultry is healthy when slaughtered;

2.2. The slaughter and processing are conducted under sanitary The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry standards, practices, and procedures that produce poultry products that are sound, clean, and fit for human food (not products that are sound, clean, and fit for human food (not adulterated); adulterated);

3. The poultry is not misbranded is identified as exempt product 3. The poultry is not misbranded is identified as exempt product and labeled;and labeled;

4. The business operates under only 1 exemption during calendar 4. The business operates under only 1 exemption during calendar year;year;

5.5. Product cannot bear the Official USDA mark of inspection; andProduct cannot bear the Official USDA mark of inspection; and

6.6. Poultry products do not move in inter-state commerce.Poultry products do not move in inter-state commerce.

7. The business slaughters and processes no more than 20,000 7. The business slaughters and processes no more than 20,000 birds/carcasses in a calendar year under the exemption.birds/carcasses in a calendar year under the exemption.

8. The facility used to slaughter or process poultry is not used to 8. The facility used to slaughter or process poultry is not used to slaughter or process another person’s poultry unless the slaughter or process another person’s poultry unless the Administrator of FSIS grants an exemption [9 CFR 381.10 (b)Administrator of FSIS grants an exemption [9 CFR 381.10 (b)(2)].(2)].

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Labeling Producer/Grower – 20,000 Labeling Producer/Grower – 20,000 Limit ExemptionLimit Exemption

The shipping containers, when distributed in intrastate commerce, (instead of all the required features of a label for inspected product) bear:

a. the processor’s name, b. the address, and c. the statement, Exempt P.L. 90-492, and d. safe handling instructions

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a. Household Consumer

d. Restaurants and similar Institutions

c. Retail Stores (Groceries)

b. Hotels

20,000Produc

er Grower

May Sell To

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Producer/Grower or Other Person Producer/Grower or Other Person (PGOP) Exemption May be:(PGOP) Exemption May be:

a poultry grower who a poultry grower who slaughters and slaughters and processes poultry that he or she processes poultry that he or she raisedraised for sale, or for sale, or

a person who a person who purchases live poultry purchases live poultry from a grower and then slaughtersfrom a grower and then slaughters these poultry and processes such these poultry and processes such poultry poultry

for salefor sale directly to household consumers, directly to household consumers,

restaurants, hotels, and boarding restaurants, hotels, and boarding houses to be served in those homes or houses to be served in those homes or dining rooms for the dining rooms for the preparation of preparation of mealsmeals sold directly to customers. sold directly to customers.

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a. Household Consumer

c. Restaurants and similar Institutions

b. Hotels

PGOP May Sell To

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Producer/Grower or Other Person Producer/Grower or Other Person Exemption Notes:Exemption Notes:

A business preparing poultry A business preparing poultry products under the PGOP exemption products under the PGOP exemption may not sellmay not sell products to a: products to a:

a. retail store b. Producer/Grower or other PGOP

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The 9The 9thth Exemption Limitation Exemption Limitation for PGOP for PGOP

9. Exempt product 9. Exempt product for sale for sale directly to household directly to household consumers, restaurants, hotels, consumers, restaurants, hotels, and boarding houses for the and boarding houses for the preparation of mealspreparation of meals sold sold directly to customersdirectly to customers

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Labeling PGOP ProductLabeling PGOP Product The shipping containers, when distributed

in intrastate commerce, (instead of all the required features of a label for inspected product) bear:

a. the processor’s name, b. the address, and c. the statement, Exempt P.L. 90-492, and d. safe handling instructions

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Small Enterprise Small Enterprise ExemptionExemption

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A Small Enterprise Exemption A Small Enterprise Exemption Business Can Be:Business Can Be:

a a producer/grower who raisesproducer/grower who raises, or , or a a business that purchases live poultrybusiness that purchases live poultry

that they slaughter and dress, orthat they slaughter and dress, or a a business that purchases business that purchases inspected inspected

poultry or exempted 1,000 or 20,000 poultry or exempted 1,000 or 20,000 Producer/Grower dressed poultry.Producer/Grower dressed poultry.

The Small Enterprise can buy poultry and The Small Enterprise can buy poultry and slaughter and process the poultry under slaughter and process the poultry under exemption provided processing is limited to exemption provided processing is limited to cutting up – Defining cutting up – Defining Criteria Criteria ..

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Small Enterprise Exemption Small Enterprise Exemption Notes:Notes: may handle “pass through” productmay handle “pass through” product may purchase, may purchase, cutupcutup, and distribute , and distribute

exempt product produced under the exempt product produced under the Producer/Grower ExemptionsProducer/Grower Exemptions

may cutup product produced under may cutup product produced under Federal inspectionFederal inspection

Note: Note: Processing is limited to cutup Processing is limited to cutup

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No restriction on intra-state No restriction on intra-state customers; but product may not be customers; but product may not be distributed across state lines.distributed across state lines.

A Small Enterprise Exemption may A Small Enterprise Exemption may sell to:sell to:

Household ConsumerHousehold Consumer Retail Stores (grocery stores)Retail Stores (grocery stores) HotelsHotels Restaurants and Similar InstitutionsRestaurants and Similar Institutions DistributorsDistributors

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a. Household Consumer

d. Restaurants and similar Institutions

c. Retail Stores (Groceries)

b. Hotels

Small Enterpris

e may sell too

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Small Enterprise Product Small Enterprise Product LabelingLabeling

Note: Poultry products produced Note: Poultry products produced under a Small Enterprise exemption under a Small Enterprise exemption are not misbranded when they bear are not misbranded when they bear all of the features of a label for all of the features of a label for inspected product with the exception inspected product with the exception that the official inspection legend may that the official inspection legend may not be used. not be used.

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Label requirements for small enterprise Label requirements for small enterprise exempt product includeexempt product include::

1.1. Name of the product;Name of the product;2.2. Ingredients statement;Ingredients statement;3.3. Statement of the quantity of contents in Statement of the quantity of contents in

terms of weight or measures;terms of weight or measures;4.4. Name and address of manufacturer;Name and address of manufacturer;5.5. Special handling statement;Special handling statement;6.6. Date of packing; Date of packing; 7.7. Explanatory statement indicating why the Explanatory statement indicating why the

inspection legend is not permitted; for inspection legend is not permitted; for example, the phrase “Small Enterprise example, the phrase “Small Enterprise Exemption from Inspection” is suggested by Exemption from Inspection” is suggested by FSIS but is not a mandatory requirementFSIS but is not a mandatory requirement. . The ”Exempt The ”Exempt –PL90-492–PL90-492” is sufficient.” is sufficient.

8.8. Safe handling instruction that comply with Safe handling instruction that comply with the requirements of Title 9 CFR 381.125(b)the requirements of Title 9 CFR 381.125(b)(2)(ii),(2)(ii),

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Safe handling instruction that Safe handling instruction that comply with the requirements comply with the requirements

of of Title 9 CFR 381.125(b)(2)(ii)Title 9 CFR 381.125(b)(2)(ii)

“ “Some food products may contain Some food products may contain bacteria that could cause illness if the bacteria that could cause illness if the product is mishandled or cooked product is mishandled or cooked improperly. For your protection, follow improperly. For your protection, follow these safe handling instructions.”these safe handling instructions.”

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It is not acceptable to use the safe It is not acceptable to use the safe handling statement use on inspected handling statement use on inspected

product 9 CFR 381.125.(2)(i)product 9 CFR 381.125.(2)(i) “ “This product was prepared from inspected This product was prepared from inspected

and passed meat and or poultryand passed meat and or poultry. Some . Some food products may contain bacteria that food products may contain bacteria that could cause illness if the product is could cause illness if the product is mishandled or cooked improperly. For your mishandled or cooked improperly. For your protection, follow these safe handling protection, follow these safe handling instructions.”instructions.”

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In addition, if the labeling does In addition, if the labeling does not bear nutrition or health not bear nutrition or health claims, the nutrition facts claims, the nutrition facts feature, as explained in, Title 9 feature, as explained in, Title 9 CFR 381.500 Exemption from CFR 381.500 Exemption from nutritional labeling, nutritional labeling, is is optionaloptional for poultry products for poultry products produced by a business produced by a business eligible for the small eligible for the small enterprise exemption.enterprise exemption.

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Small Enterprise Exemption Small Enterprise Exemption Notes:Notes:

A small enterprise is not prohibited from A small enterprise is not prohibited from selling live poultry to a customer and selling live poultry to a customer and then slaughtering, dressing, and cutting then slaughtering, dressing, and cutting up the poultry for the customer. Sellingup the poultry for the customer. Selling livelive poultry is not the same as buying poultry is not the same as buying or selling or selling poultry productspoultry products, one of the , one of the criteria that prevents a business from criteria that prevents a business from claming the Custom Exemption.claming the Custom Exemption.

Label/Identifying Items

My Grandmother’s Poultry Mobile Slaughter My Grandmother’s Poultry Mobile Slaughter Unit Unit

Traditional Mobile Slaughter Unit Traditional Mobile Slaughter Unit

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Available Low-End Poultry Mobile Slaughter Available Low-End Poultry Mobile Slaughter UnitsUnits

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http://attra.ncat.org/attra-pub/PDF/poultryprocess.pdf 

www.foothillsfamilyfarms.org/content/1526

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Whole Foods

Some High-End Poultry Mobile Slaughter Some High-End Poultry Mobile Slaughter UnitsUnits

Kentucky Mobile Poultry Processing Unit

The EndThe End

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I am poultry.