Technical and Regulatory Update

1. Technical and Regulatory Update Ashley B. Peterson June 22, 2012

2. Agenda HSUS and UEP Agreement Antibiotics Update NCC Animal Welfare Audits

3. HSUS and UEP Agreement • UEP and HSUS announced their agreement on July 7, 2011 • Impact 280 million laying hens • Require all cages to be enriched by 2030 • Nest box, scratch pad, perch, 124in2 • Prohibit induced molting • Require cartons labeled: • “eggs from caged hens” • “eggs from hens in enriched cages” • “eggs from cage-free hens” • “eggs from free-range hens”

4. HSUS and UEP Agreement • Why? • Success in California • Increased ballot initiative momentum • Consumer pressure • Concerns • Federal standard for animal welfare – precedent-setting • Divided UEP member support • Attacks on those unsupportive

5. HSUS and UEP Agreement • Support • UEP Membership (though divided), HSUS, AVMA, AAAP, many on Capitol Hill • Opposition • NPPC, NCBA, ASI, USFB • Current State of Play • Offered as an amendment to the Farm Bill in the Senate by Sen. Feinstein • Sen. Reid disallowed any non-germane amendments • Farm Bill passed out of Senate without amendment • Stand-alone bill

6. Antibiotics • FDA’s Center for Veterinary Medicine (CVM) has released three recent documents putting new restrictions on "sub-therapeutic" antibiotics. • There has been tremendous political pressure on CVM by some in Congress, by special interest groups, and by the media to curtail antibiotic use in farm animals. • Despite these claims, there is no clear scientific evidence that antibiotic use in food-producing animals reduces the effectiveness of certain antibiotics in treating human diseases. • However, FDA believes these restrictions are necessary to prevent the development of antimicrobial resistance to drugs of importance to human health.

7. Antibiotics Guidance 209: industry voluntarily limit the use of medically important antibiotics in food-producing animals to medically necessary uses under veterinary supervision. Essentially eliminating subtherapeutic use of medically important antibiotics Guidance 213: animal drug companies voluntarily withdraw label claims regarding “feed efficiency” or “growth promotion.” Demonstrate a therapeutic mechanism that prevents disease Veterinary Feed Directive: outlines ways veterinarians can authorize the use of certain animal drugs in feed, which is important to make the needed veterinary oversight feasible and efficient.

8. Antibiotics How do we measure success? Less antibiotics administered? Improved animal health and welfare Improved public health outcomes Decreased antibiotic resistance How do we communicate with customers? Judicious use Veterinary oversight Talk about what happened in EU Video Rep. Louise Slaughter (D-NY) inquiries and other customer concerns

9. NCC Animal Welfare Audits • Time to edit the NCC Animal Welfare Audits • Broilers and Broiler Breeders • Committee met June 14th • Academic Review Panel • SargeBilgili, Chair, Auburn • Yvonne Thaxton, University of Arkansas • Mike Martin, NC State • Bruce Webster, University of Georgia • Suzanne Millman, Iowa State • Tony Pescatore, University of Kentucky

10. NCC Animal Welfare Audits • Proposed Timeline • June/July – Contact academic review panel • August-October – Review in process • November – Committee Review • December – Executive Committee Review • January – Present final audits to the Board • PAACO Certification • Increased Credibility/Validity • Third-party review

11. Thank you for your attention! Questions?