Small-Scale Livestock Production Raising Poultry for Profit

1. Small-Scale Livestock ProductionRaising 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.

2. What you need to know before you get started…

4. Leveraging flock management • Certification programs • Evaluating program costs & benefits • New Marketing Opportunities

5. 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

6. 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

7. Possible Program Specifications for Flock Management

8. Evaluating Certification Programs

9. Evaluating Certification Benefits

10. Evaluating Certification Costs

11. 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

12. To be a good neighbor and food producer: • Manage manure properly • Monitor storm water runoff • Dispose of mortalities safely • Environmental Stewardship

13. 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 • & • =

14. Manage Manure Properly

15. Monitor Storm Water Runoff

16. Dispose of Dead Birds Safely

17. Maintaining a healthy flock • Managing sick birds • Growing your flock • Production Practices

18. Animal Welfare Preventing disease among your flock involves good stewardship and management

19. Managing for Healthy Birds Includes Providing

20. 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

21. 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

22. Eggs • Meat • Live birds Safe Handling

23. Eggs: Safe Handling for Small Flocks

24. 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

25. Meat: Safe Handling • Handle all raw poultry carefully to prevent cross-contamination.   • 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.

26. 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

27. 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 Business licensing

28. 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

29. How Many Hens Do You Plan to Have? • 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 • < 3000 • > =3000 Image: James Bowe @ flikr.com / Creative Commons licensed

30. Where Do You Plan to Sell Eggs? • 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 • From place of production? • Farmers’ market(s)? • Through retail stores? Image: James Bowe @ flikr.com / Creative Commons licensed

31. Licensing for Retail & Wholesale Meat Sales *Note that your processor can help guide you through the packaging and labeling process.

32. Exemptions to USDA slaughter and processing requirements Exemption #1 for freezer meats AND OR AND

33. Exemptions to USDA slaughter and processing requirements Exemption #2 for poultry, but not recognized in all states FOR FOR

34. Your County Health Department May Require A retail food establishment license for product sales. For example in Colorado: • Colorado Dept. of Public Health & Environment Plan Review • County Health Department Application • Inspection (possible) • Estimated fee: $115 • Annual fee, but will be renewed unless revoked 1. 2. 3. 4.

35. 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 ?

36. 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 Zoning restrictions

37. 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)

38. 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

39. Regulations in Districts Where Commercial Poultry Production is Permitted may Include:

40. Building a Profitable Business Involves Research & compliance with regulations and certifications • Good neighbor relations that lead to a sustainable business!

41. Questions? Photo credit: Aprilskiver 6351632089

42. 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

43. Photo Credits – flickr.com All photos used under the Creative Commons License James Bowe 7177637421 Aprilskiver 6351632089