Small-Scale Livestock Production Raising Poultry for Profit This program was funded by the USDA National Institute for Food and Agriculture (NIFA) Beginning Farmer and Rancher Development Program (BFRDP) under award #2009-49400-05871. What you need to know before you get started… New marketing opportunities Environmental stewardship Production practices Safe product handling Business licensing Zoning restrictions New Marketing Opportunities • Leveraging flock management • Certification programs • Evaluating program costs & benefits Certification and Marketing • Consumers are interested in how livestock are raised, handled & processed • Certification may allow you to secure a premium for product or expand market reach – Such as specialty food stores and restaurants that require that their animal products be sourced from humanely raised animals • How you manage your flock (your stewardship practices) can influence your marketing opportunities Animal Welfare Certification Programs • Distinguish livestock products as coming from humanely treated animals • Certified production systems often are more expensive than non-certified • Be sure to keep in mind the production costs and marketing benefits of following a certification program Animal Welfare Approved USDA Organic American Humane Certified Food Alliance Global Animal Partnership United Egg Producers Possible Program Specifications for Flock Management Outdoor access Litter management & ammonia levels Sleep period requirement Space allowances (roosting & range) Catching birds for transport Evaluating Certification Programs Goals Certification • Make sure program goals align with yours • Understand the certification process & animals covered Fees • Understand the program’s fee structure Time Commitment • Calculate the time required to achieve & maintain certification Production Costs • Estimate how your production costs may change under certification Evaluating Certification Benefits Access to new markets that seek certified products Possibility of charging higher prices for products Access to marketing materials and support from certifying organization Ability to connect with customers based on their values Certifier may help grower improve safe production and handling techniques Evaluating Certification Costs More ranging or living area may be required for each bird enrolled in the certification program  You may need more land Changes to poultry health care  You may need to remove from your program sick birds that you vaccinate or medically treat Changes to poultry feeding  You may need to use feed from specific sources or follow certain ingredient guidelines Changes to poultry housing  You may need to build additional facilities to allow more space per bird More detailed record-keeping on poultry health and raising  You may need to allow more time or hire someone to do this Linking Production & Marketing Decisions • Choose a breed that is appropriate for the products you want to produce (meat vs eggs) • If you are producing meat animals, do you have a slaughter and processing facility that will work with your level of production? • Know who will buy your product before you produce it • Take a course in Good Agricultural Practices (GAPs) – To understand how to prevent or reduce contamination of your products throughout production, processing and sales – Obtaining GAPs certification is also a good marketing strategy Environmental Stewardship To be a good neighbor and food producer: • Manage manure properly • Monitor storm water runoff • Dispose of mortalities safely Good Stewardship Leads to Better Business Management Minimizing: •Animal and manure odors •Dust •Insects & predators Using best management practices to: •Dispose of dead birds •Mitigate runoff Leads to a: •Cleaner production operation •Healthier herd •Good neighbor relationships Manage Manure Properly Control unpleasant odors and dust Know the nutrient content of your manure, apply based on nutrient/fertilizer value, and keep records Spread manure away from wells, springs, and watercourses When possible, till in fall-applied manure Keep piles of manure, spent bedding and spoiled feed away from watercourses Monitor Storm Water Runoff Conduct annual tests for bacteria and nitrates in well water Locate poultry operations away from wellheads; protect wellheads in pastures (consult local/state wellhead protection laws) Use buffers and setbacks to protect surface waters from direct contact with animal waste and process waste water Divert clean water (run-on) around production and waste storage areas using berms, ditches grassy swales, roof gutters Dispose of Dead Birds Safely Abide by state/local laws Render within 48 hours, where service is available (dead animals used to create a new, usable product) Compost in pile or bin, at high temperature (130o-150oF) Bury on farm, at least 300 feet away from a watercourse and 3-ft deep, above the wet season high watertable Bury/dispose at a licensed landfill Production Practices • Maintaining a healthy flock • Managing sick birds • Growing your flock Animal Welfare Preventing disease among your flock involves good stewardship and management Managing for Healthy Birds Includes Providing Adequate space & ventilation Clean housing & bedding material Access to water at all times Nutritionally complete food Protection from predators Protection from extreme temperatures Managing Sick Birds Includes • Having a local avian veterinarian who understands your flock management program • Establishing a plan for: – Any unknown disease – Avian Influenza & Exotic Newcastle (cause significant morbidity in flocks) • In case of disease outbreak, having a plan for cleaning and disinfecting vehicles & equipment, and protecting your employees • Developing a quarantine procedure for sick birds • Developing a disposal plan for dead birds Growing Your Flock • Look for hatcheries participating in Voluntary National Poultry Improvement Plan (NPIP) – Certifies that poultry breeding stock and hatcheries are free from certain diseases • Avoid poultry swaps or other unverified sources • Quarantine new birds before integrating into your flock • Keep in mind local regulations for numbers of birds allowable in your area Safe Handling • Eggs • Meat • Live birds Eggs: Safe Handling for Small Flocks Gathering Washing Sanitizing Candling Drying • Keep nests clean • Gather eggs 3 times/day to keep clean • Use unscented, food-grade detergent + rinse water • Keep water temperature between 110°F and 120°F • Dip in 120°F water and bleach at 100-200 ppm chlorine (1oz bleach per 1 gallon water) • Discard meat spots, blood spots and cracked egg shells • Dry on racks before putting in cartons Refrigerating • Store between 33°F and 41°F Transporting • Must be clean • Maintain refrigeration Eggs: Safe Handling for Large Flocks (3,000 or more laying hens) • Register with FDA under the Egg Rule • In your facility: – Buy chicks and young hens only from suppliers who monitor for Salmonella bacteria – Establish rodent, pest control, and biosecurity measures to prevent spread of bacteria throughout the farm by people and equipment – Conduct testing in the poultry house for Salmonella • Refrigerate: Eggs must be refrigerated at 45° F, within 36 hours of when they are laid • Pasteurization • Have a written egg safety plan to prevent foodborne illness outbreaks. See FDA’s new egg rule Meat: Safe Handling • Handle all raw poultry carefully to prevent crosscontamination. • Chill to 40°F or less within a specified time after slaughter. Keep poultry products cold (40°F or below) or frozen (0°F or below) during transport. • The term ‘fresh’ may only be placed on poultry that has never been below 26°F. • Raw poultry held at temperature of 0°F or below must be labeled with a “keep frozen” handling statement. • Raw poultry has a very short refrigerator shelf life and should be frozen or cooked within two days of purchase. Live Birds: Safe Handling • Live baby poultry (chicks, ducklings, gosling and turkey poults) may carry Salmonella • Bacteria may be in their droppings, feathers, feet, or beaks • After handling baby poultry: – Wash your hands thoroughly • After handling any livestock – Wash hands thoroughly & change shoes before entering a food production or handling area Business licensing Which licenses you need depends on: – Whether you are selling eggs or meat – Where you plan to sell your product – The scale of production you are considering Getting Permission to do Business • County, municipal & Homeowners Association or Neighborhood/Unincorporated Community Covenants • Business Registration (typically from your state’s Secretary of State, although some cities & counties also require business registration) • IRS Employer Identification Number (EIN, if you have employees) • State taxes (sales tax, income tax, workers’ compensation, unemployment insurance) • City/County sales tax license • Other business licenses (depending on your sales outlet and product(s) offered for sale) To check on your state’s tax and licensing requirements: //www.sba.gov/content/learn-about-your-state-and-local-tax-obligations < 3000 > =3000 • Flocks under 3000 laying hens are USDA grade exempt and fall under state law • Flocks of 3000 and over laying hens require business registration with Food Safety Inspection Service (FSIS) through the FDA Image: James Bowe @ flikr.com / Creative Commons licensed How Many Hens Do You Plan to Have? • From place of production? • Farmers’ market(s)? • Through retail stores? • State licensing can vary depending on where you plan to sell your product • Licensing may be easier if you plan to sell direct to consumers from your home or place of production • However, check with the market or retailer for any licenses or food safety audits they may require Image: James Bowe @ flikr.com / Creative Commons licensed Where Do You Plan to Sell Eggs? Licensing for Retail & Wholesale Meat Sales To sell packaged poultry direct to the consumer To sell packaged poultry to retail buyers, wholesale or farmers’ market • Must use state or federally inspected slaughter and processing facility (see exemption for custom processing) • Must use state or federally inspected slaughter and processing facility (see small flock exemption) • Required: Labeling – i.e., Net Weight using Standard Weights and Measures* • Optional: Grading *Note that your processor can help guide you through the packaging and labeling process. Exemptions to USDA slaughter and processing requirements Exemption #1 for freezer meats Sold before slaughter to new owner AND Labeled NOT FOR SALE OR Processed for Processed for nonhousehold use AND paying guests Exemptions to USDA slaughter and processing requirements Exemption #2 for poultry, but not recognized in all states Producer-grower 1,000 bird per year limit Producer-grower 20,000 bird per year limit FOR FOR On-farm sales Retail sales Your County Health Department May Require A retail food establishment license for product sales. For example in Colorado: • Colorado Dept. of Public Health & 1. Environment Plan Review 2. 3. 4. • County Health Department Application • Inspection (possible) • Estimated fee: $115 • Annual fee, but will be renewed unless revoked One More Thing About Meat & Egg Sales… Many farmers’ markets require vendors to carry their own liability insurance policy For more info on licensing and regulations check with your local Extension office or state Department of Agriculture Zoning restrictions • Zoning is a restriction on the way land can be used • Zoning regulations may include where you can (or can’t) raise animals • Zoning may also define the number of birds you raise on your property County & Municipal Zoning Regulations • Present your plans early―your local planning and zoning board may have ideas to make your business more viable or to protect your resource base • Once you are in operation, remember to consult local officials before making any changes to your business (to structures or to products you sell) County & Municipal Zoning Regulations • Livestock allowances are usually outlined in land use codes • Large livestock are typically prohibited in non-agriculturally zoned county or municipal districts • Many municipalities allow private ownership/production of a small number of fowl, although many exclude roosters and limit the density of confinement • Your Homeowners’ Association may also have restrictions on poultry Always verify the number birds legally allowed on your property before starting your business Regulations in Districts Where Commercial Poultry Production is Permitted may Include: Commercial or agricultural permit requirements Minimum space requirement per chicken; restrictions on roosters Permit fee often required Size and type of animal structures; location on your property Standards for odor, dust, noise Limited or no allowable slaughter on premises Building a Profitable Business Involves Building Customers Building Community Building Business Processes through through through Marketing Good resource & flock stewardship Safe handling practices Good neighbor relations Research & compliance with regulations and certifications that lead to a sustainable business! Photo credit: Aprilskiver 6351632089 Questions? Acknowledgments • Blake Angelo, Colorado State University Extension, Urban Agriculture • Dr. Jack Avens, CSU Food Science and Human Nutrition • Thomas Bass, Montana State University Extension, Livestock Environment Associate Specialist • Dr. Marisa Bunning, CSU Food Science and Human Nutrition • Emily Lockard, CSU Extension, Livestock • Dea Sloan, CSU Agricultural and Resource Economics • Martha Sullins, CSU Extension, Agriculture and Business Management • Dr. Dawn Thilmany, CSU Agricultural and Resource Economics • Heather Watts, CSU Agricultural and Resource Economics • Wendy White, Colorado Department of Agriculture • David Weiss, CSU Agricultural and Resource Economics Photo Credits – flickr.com All photos used under the Creative Commons License James Bowe 7177637421 Aprilskiver 6351632089