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Poultry Products Inspection Act. ROBERT D. RAGLAND, D.V.M., MPH Senior Staff Officer

Poultry Products Inspection Act. ROBERT D. RAGLAND, D.V.M., MPH Senior Staff Officer Risk and Innovations Management Division OPPD, FSIS, USDA 1400 Independence Avenue, S.W., Rm. 3549-S Washington, DC 20250-3700 Office: 202-205-0210; Fax: 202-720-7027

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Poultry Products Inspection Act. ROBERT D. RAGLAND, D.V.M., MPH Senior Staff Officer

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  1. Poultry Products Inspection Act. ROBERT D. RAGLAND, D.V.M., MPH Senior Staff Officer Risk and Innovations Management Division OPPD, FSIS, USDA 1400 Independence Avenue, S.W., Rm. 3549-S Washington, DC 20250-3700 Office: 202-205-0210; Fax: 202-720-7027 E-mail: robert.ragland@fsis.usda.gov March 10, 2009 webinar Poultry Exemptions Under the Federal 1

  2. HistoryThe 1957 Wholesome Poultry Products Act(Public Law 90 – 492) The 1957 Act mandated federal inspection at businesses that slaughtered and processed poultry products that entered interstate or foreign commerce. 2

  3. Congress amended the Wholesome Poultry Products Act in 1968 Extending the mandate for Federal inspection to all businesses that slaughter or process poultry for shipment within a State, when the State does not enforce requirements at least equal to the Federal inspection requirements in the Poultry Products Inspection Act (PPIA). 3

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  5. It was not the intent of Congress to mandate full Federal Inspection of the slaughter and processing of an owner’s private holdings of poultry or to mandate full inspection at businesses that slaughter or process a small amount of poultry. Intent ofCongress 6

  6. Therefore, Congress in the Act exempts some poultry slaughter and some processing businesses from certain requirements of the Act. Intent of Congress 7

  7. The PPIA and Federal Regulations Provide for Several Types of Exempt Slaughter and Processing Operations/Businesses 1. Slaughter & processing of poultry for personnel use; 2. Custom slaughter & processing-personal use; 3. Producer/Grower no more than 1,000/calendar yr.; 4. Producer/Grower no more than 20,000/calendar yr.; 5. Producer Grower or Other Person (PGOP) no more than 20,000/calendar yr.—meals/processing; 6. Small Enterprises slaughtering/cutting up no more than 20,000/calendar yr.—carcasses and parts no processing; 7. Retail Stores; and 8. Restaurants. Link: Guidance for Determining Whether a Poultry Slaughter or Processing Operation is Exempt from Inspection Requirements of the PPIA 2006 www.fsis.usda.gov/OPPDE/rdad/FSISNotices/Poultry_Slaughter_Exemption_0406.pdf 8

  8. Poultry Exemptions This presentation is billed as an overview with focus on: • Producer/Grower 1,000 Bird limit • Producer/Grower 20,000 Bird limit • Producer/Grower or Other Person 20,000 • Small Enterprise 20,000.

  9. A Misconception An exempt operation is exempt from all requirements of the Poultry Products Inspection Act (PPIA). 10

  10. Exempt From What? Under the Act the term “exempt” means that certain types of poultry slaughter and processing operations qualify to operate without the benefit of Federal inspection on a daily basis and a grant of Federal inspection is not required. 11

  11. Exempt operations are exempt from continuous bird-by-bird inspection and the presence of FSIS inspectors during the slaughter of poultry and processing of poultry products. 12

  12. Three Very Basic Requirements (Criteria-Limitations) for Businesses Slaughtering or Processing Poultry for Human Food Under a PPIA Exemption. 1. The poultry is healthy when slaughtered. 2. The slaughter, processing, and transportation are conducted under sanitary practices and procedures that produce poultry products that are sound, clean, and fit for human food (not adulterated). 3.The poultry is not misbranded and is identified as exempt product. 13

  13. Another Misconception A business may simultaneously claim or operate under more than one exemption. 14

  14. Which and how many exemptions may a person or business claim when slaughtering or processing poultry? A slaughterer or processor of poultry may not simultaneously operate under more than one exemption during a calendar year. A person or business may slaughter or process poultry under an exemption if the operation qualifies for the exemption. 15

  15. Forth Criteriafor All Businesses Slaughtering or Processing Poultry for Human Food Under a PPIA Exemption. 1. The poultry is healthy when slaughtered. 2. Slaughter, processing, and transportation are conducted under sanitary standards, practices, and procedures that produce poultry products that are sound, clean, and fit for human food (not adulterated). 3. The poultry is not misbranded. 4.Business operates under only one exemption in a calendar year. 16

  16. A 5th and 6th Requirements/Limitationsfor all Businesses Slaughtering or Processing Poultry for Human Food Under a PPIA Exemption 5th Product cannot bare the Official USDA mark of inspection. 6th The poultry products are distributed only within the State, Territory, or DC where produced i.e. cannot be distributed across State lines. 17

  17. Six Common Requirements/Limitations Applicable to the 4 Exemptions Presented Today 1. The poultry is healthy when slaughtered; 2. The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry products that are sound, clean, and fit for human food (not adulterated); 3. The poultry is not misbranded is identified as exempt product and labeled; 4. The business operates under only 1 exemption during calendar year; 5. Product cannot bear the Official USDA mark of inspection; and 6. Poultry products do not move in inter-state commerce. 18

  18. Small Enterprise 20,000 Bird Limit Exemption 19

  19. A Small Enterprise Exemption Business Can Be: a producer/grower who raises, or a business that purchases live poultry that they slaughter and dress, or a business that purchases inspected poultry or exempted 1,000 or 20,000 Producer/Grower dressed poultry. The Small Enterprise can process and sell another persons poultry provided processing is limited to cutting up. 20

  20. Additional Small Enterprise Limitations 7.The business slaughters and dresses or cuts up no more than 20,000 birds/carcasses in a calendar year under the exemption. 8. The facility used to slaughter or process poultry is not used to slaughter or process another person’s poultry unless the Administrator of FSIS grants an exemption [9 CFR 381.10 (b)(2)]. 21

  21. Small Enterprise Exemption Notes: may handle “pass through” inspected product may purchase, cutup, and distribute exempt product produced under the Producer/Grower Exemptions may cutup product produced under Federal inspection 22

  22. No restriction on intra-state customers; but product may not be distributed across state lines.A Small Enterprise Exemption may sell to: Household Consumer Retail Stores (grocery stores) Hotels Restaurants and Similar Institutions Distributors 23

  23. Small Enterprise Exemption Notes: A small enterprise may not purchase, cut up, and distribute poultry products produced under as these 2 exemptions which may not sell to a Small Enterprise: a. Retail exemption b. PGOP exemption 24

  24. Small Enterprise Product Labeling Note: Poultry products produced under a Small Enterprise exemption are not misbranded when they bear all of the features of a label for inspected product with the exception that the official inspection legend may not be used. 25

  25. Label requirements for small enterprise exempt product include: Name of the product; Ingredients statement; Statement of the quantity of contents in terms of weight or measures; Name and address of manufacturer; Special handling statement; Date of packing; Explanatory statement indicating why the inspection legend is not permitted; for example, the phrase “Small Enterprise Exemption from Inspection” is suggested by FSIS but is not a mandatory requirement. The ”Exempt –PL90-492” is sufficient. Safe handling instruction that comply with the requirements of Title 9 CFR 381.125(b)(2)(ii), 26

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  27. Safe handling instruction that comply with the requirements of Title 9 CFR 381.125(b)(2)(ii) “Some food products may contain bacteria that could cause illness if the product is mishandled or cooked improperly. For your protection, follow these safe handling instructions.” 28

  28. It is not acceptable to use the safe handling statement use on inspected product 9 CFR 381.125.(2)(i) “This product was prepared from inspected and passed meat and or poultry. Some food products may contain bacteria that could cause illness if the product is mishandled or cooked improperly. For your protection, follow these safe handling instructions.” 29

  29. In addition, if the labeling does not bear nutrition or health claims, the nutrition facts feature, as explained in, Title 9 CFR 381.500 Exemption from nutritional labeling, is optional for poultry products produced by a business eligible for the small enterprise exemption. 30

  30. Small Enterprise Exemption Notes: A small enterprise is not prohibited from selling live poultry to a customer and then slaughtering, dressing, and cutting up the poultry for the customer. Sellinglive poultry is not the same as buying or selling poultry products, one of the criteria that prevents a business from claming the Custom Exemption. 31

  31. Producer/Grower or Other Person (PGOP)20,000 Bird Limit Exemption 32

  32. Producer/Grower or Other Person (PGOP) Exemption May be: a poultry grower whoslaughters and processes poultry that he or she raisedfor sale, or a person whopurchases live poultry from a grower and then slaughtersthese poultry and processes such poultry for sale directly to household consumers, restaurants, hotels, and boarding houses to be served in those homes or dining rooms for the preparation of meals sold directly to customers. 33

  33. Restriction on intra-state customers and product may not be distributed across state lines.A PGOP 20,000 Limit Exemption may sell to: Household Consumer Hotels Restaurants May NOT sell to Retail Stores or Distributors 34

  34. a. Household Consumer b. Hotels c. Restaurants 35

  35. Producer/Grower or Other Person Exemption Notes: A business preparing poultry products under the PGOP exemptionmay NOT sellproducts to: b. Producer/Grower or other PGOP a. retail store or distributor 36

  36. PGOP Exemption Limitations 1. The poultry is healthy when slaughtered; 2. The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry products that are sound, clean, and fit for human food (not adulterated); 3. The poultry is not misbranded is identified as exempt product and labeled; 4. The business operates under only 1 exemption during calendar year; 5. Product cannot bear the Official USDA mark of inspection; and 6. Poultry products do not move in inter-state commerce. 37

  37. PGOP Exemption Limitations 7. The business slaughters or processes no more than 20,000 birds/carcasses in a calendar year under the exemption. 8. The facility used to slaughter or process poultry is not used to slaughter or process another person’s poultry unless the Administrator of FSIS grants an exemption [9 CFR 381.10 (b)(2)]. 9. The PGOP is the sole distributor i.e. sale directly to household consumers, restaurants, hotels, and boarding houses for the preparation of meals sold directly to customers. 38

  38. Labeling 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, c. the statement, Exempt P.L. 90-492, and d. safe handling instructions. 39

  39. Producer/Grower – 20,000 Limit Exemption 40

  40. Producer/Grower – 20,000 Limit Exemption The producer/grower may slaughters and processes, on his or her own premises, no more than 20,000 poultry, raised by him or her, in a calendar year. The producer/grower only distributes poultry products he or she produced under the Producer/Grower Exemption 41

  41. Producer/Grower 20,000 Limit Exemption Limitations 1. The poultry is healthy when slaughtered; 2. The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry products that are sound, clean, and fit for human food (not adulterated); 3. The poultry is not misbranded is identified as exempt product and labeled; 4. The business operates under only 1 exemption during calendar year; 5. Product cannot bear the Official USDA mark of inspection; and 6. Poultry products do not move in inter-state commerce. 7. The business slaughters and dresses or cuts up no more than 20,000 birds/carcasses in a calendar year under the exemption. The facility used to slaughter or process poultry is not used to slaughter or process another person’s poultry unless the Administrator of FSIS grants an exemption [9 CFR 381.10 (b)(2)]. 42

  42. Labeling Producer/Grower – 20,000 Limit 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, c. the statement, Exempt P.L. 90-492, and d. safe handling instructions. 43

  43. Producer/Grower – 1,000 Limit ExemptionPPIA A person may slaughter and process on his or her premises poultry that he or she raised and they may distribute such poultry without mandatory inspection to customers in the State where slaughtered and processes. 44

  44. Producer/Grower 1,000 Exemption Limitations 1. The poultry is healthy when slaughtered; 2. The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry products that are sound, clean, and fit for human food (not adulterated); 3. The poultry is not misbranded is identified as exempt product and labeled; 4. The business operates under only 1 exemption during calendar year; 5. Product cannot bear the Official USDA mark of inspection; and 6. Poultry products do not move in inter-state commerce. 45

  45. Labeling Producer/Grower – 1,000 Limit 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. Safe Handling Instructions FSIS expects the 1,000 limit poultry sold in commerce to bear safe handing instructions. 46

  46. Label/Identifying Items

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