U.S. Poultry & Egg Association Future of American Egg Industry Conference UEP-HSUS Initiative for Federal Legislation What It Means to the Industry

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1 U.S. Poultry & Egg Association Future of American Egg Industry Conference UEP-HSUS Initiative for Federal Legislation What It Means to the Industry By: Gene Gregory President/CEO United Egg Leadership by - for

2 Size of U.S. Egg Industry U.S. Layer Hen Population = 285 million hens Conventional Cages = approximately 95% Non-Cage Systems = approximately 5% Approximately 80% of all eggs produced under the sciencebased UEP Certified animal welfare program. United Egg

3 American Egg Farm and UEP United Egg is a national organization representing egg farmers owning approximately 87% of the nation s hens. We are concerned about how animal activists and their social agendas may limit our ability to feed our nation s and the world s growing population. We are concerned about state ballot initiatives and their impact upon the free flow of eggs. NEED TO END THE CONFLICT.

4 Egg Industry Challenges Despite having implemented science-based UEP Certified animal welfare program, our industry has continued to be challenged by animal activists. State legislation 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.

5 California s Prop 2 and (HSUS says required cage-free) Michigan (HSUS says 144 square inches space per hen) 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. Leadership by - For

6 Leadership by - For

7 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 laying hens and 3 million people. Iowa is not a ballot initiative state and may never have a restriction upon production but where are they going to sell their eggs. Nearly every state to their west and one state to their east and two states to their south are ballot initiative states. Leadership by - For

8 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. Ban on the installation of new conventional cages. Attempt to pass legislation by June 30, 2012 Attempt 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. Leadership by - For

9 Stops all state legislation and ballot initiatives. Clarified the acceptable housing for California, Michigan, Ohio, Oregon, Washington and all other states. HSUS accepts enriched colony housing. HSUS would stop lawsuits and undercover farm videos of UEP and UEP members. Allow eggs to continue flowing across state lines. Time to use existing conventional cages. Allows a phase-in schedule that avoids market disruptions. Allows a phase-in that will assist with cost averaging and therefore more affordable. Leadership by - For

10 UEP set the agenda. Did not cave into HSUS. The first meeting with Wayne Pacelle was held in March, 2011 and Deal Points were discussed. During April through early July a series of meetings took place between UEP and HSUS trying to find common ground. During the same period, UEP s Executive Committee and Board were involved and held several meetings. At each meeting a vote was taken and the Board continued to support a deal to end the conflict and transition to enriched colony housing. Leadership by - For

11 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 lad 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

12 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 square inches 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

13 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 a nest, perch 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. Nine years from date of enactment all enrichable cages will be required to meet 101 square inches for white birds and at that time the enrichments must be added to the cages. Will be fully implemented by Leadership by - For

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

15 One year after enactment all eggs must be labeled: Eggs from Cage d Hens Eggs from Hens in Enriched Cages Eggs from Cage-Free Hens Eggs from Free-Range Hens Leadership by - For

16 This is no 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. Despite the costs, most egg farmers believe this is the only way to end the conflict with HSUS and have an affordable, sustainability industry. Leadership by - For

17 Unfortunately, the 124 square inches has no scientific justification. European standards of 116 inches is scientifically supported. Respected scientists have endorsed the enriched system. UEP Scientific Advisory Committee has identified the advantages of the enriched systems. Leadership by - For

18 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 benefits of both conventional cages and cage-free housing. On this basis, the Scientific Committee has made preliminary recommendations regarding implementation of these housing systems in the United States. Further research in regard to space as well as details regarding the provisions for enrichments are needed. UEP supports the science and further research. Leadership by - For

19 The following associations have informed Congress of their opposition to the egg bill: National Cattlemen s Beef Association National Pork Council American Farm Bureau Federation American Sheep Industry Association National Farmers Union National Turkey Federation National Milk Federation Leadership by - For

20 The initiative between UEP and HSUS provides a clear pathway for egg farmer s future but requires a rebuilding of an entire industry and major capital investment. Assures a sustainable and affordable industry. Do we allow the other animal associations to determine the future survival of egg farming? Shouldn t egg farmers be the one to decide their future? Passing legislation will be difficult and needs great support from agriculture. Leadership by - For

21 To Learn More About U.S. Egg Farming Visit Us At: Thanks Gene Gregory, President/CEO United Egg United Egg