2016 Annual Broiler Industry Report

Deirdre I. Johnson, DVM, MAM, ACPV

Mountaire Farms Inc.

AVBP Survey 2014

• Polled AVBP members (Association of Veterinarians in Broiler Production) and summarized statistical data from both public and private sources.

• AVBP members were asked to force rank both disease and non-disease issues

• The AVBP is comprised exclusively of veterinarians employed full-time by US broiler companies. The veterinarians responding represent 56% of the membership and 77% of US broiler production.

35364 35499

36159

36906

35510

36909 37202 37039

37830

38549

39512

33000

34000

35000

36000

37000

38000

39000

40000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

x M

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n P

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s o

f P

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ion

Year of Production

Broiler Production

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% Change in Production by Year

2013 2014 2015 2016 (6 Month)

Average Age 49 49.3 50.2 48.99

Average Broiler Weight 6.44 6.52 6.66 6.56

Feed Ingredient Cost/Ton (All

Broilers)

348.44 289.5 255.25 243.53

First Week Mortality 1.15 1.26 1.48 1.52

Total Mortality 3.92 4.36 5.23 4.86

Mortality (3.6-4.4 lbs) 3.32 3.59 4.16 3.88

Mortality (4.4-5.2 lbs) 3 3.51 3.74 3.84

Mortality (5.2-6.0 lbs) 4.24 4.25 5.72 4.87

Mortality (6.0-6.8 lbs) 3.65 4.06 5.4 4.99

Mortality (6.8-7.5 lbs) 4.24 4.98 5.36 5.09

Mortality (>7.5 lbs) 4.58 5.04 5.86 6.2

WB Farm + Parts Condemns 0.525 0.592 0.654 0.615

Septox Condemns 0.129 0.15 0.171 0.149

Airsac Condemns 0.099 0.125 0.127 0.144

IP Condemns 0.031 0.039 0.047 0.031

Leukosis Condemns 0.004 0.001 0.001 0.001

Top Disease Issues Composite

Forced Rank Mean Score Mean Rank

Coccidiosis 1 15.18 1.82

Necrotic Enteritis 2 13.73 3.27

Antibiotic Free/Health Issues 3 11.24 5.76

Chick Quality and Early Mortality 4 11.19 5.81

Infectious Bronchitis- Respiratory 5 11.00 6.00

Novel Reovirus 6 9.95 7.05 Bacterial Osteomyelitis of the

Legs 7 9.64 7.36

Gangrenous Dermatitis 8 9.59 7.41

Avian Influenza 9 9.05 7.95

Infectious Laryngotracheitis 10 8.90 8.10

Infectious Bursal Disease 11 8.43 8.57

Vertebral Osteomyelitis 12 7.57 9.43

Histomoniasis 13 7.19 9.81

Mycoplasmosis 14 6.71 10.29

Polyserositis 15 5.95 11.05

Infectious Bronchitis- Kidney 16 5.10 11.90

Marek's Disease 17 3.57 13.43

Top 3 Disease Issues • Coccidiosis, Necrotic Enteritis, and Chick Quality

– Subclinical coccidiosis is the most costly disease to our industry

• 3 Eimeria species, especially maxima, infect the gastrointestinal tract tissue and impact nutrient absorption

– Clinical coccidiosis (maxima) leads to Necrotic Enteritis

• Secondary proliferation of Clostridium leads to endotoxemia and death

– Chick quality is essential to a successful antibiotic free program

• Egg pack cleanliness

• Bacterial sanitation in the hatchery

• Proper embryo development

Necrotic Enteritis (NE)

Omphalitis

Dehydration/Starveout

Top Non-Disease Issues Composite

Forced Rank Mean Score Mean Rank

Antibiotic-Free Issues (Customer or Media) 1 7.00 2.00

FDA-Drug Availability/VFD Implementation 2 6.71 2.29

Meat Quality (White Stripping, Woody Breast) 3 6.23 2.77

Increased Food Safety Regulations by USDA 4 5.77 3.23

Biosecurity- HPAI Threat 5 5.75 3.25 Poultry Welfare(Internal

Programs/Activist Threats) 6 5.50 3.50 Exportation Issues (Drug, MRLs,

Paws, AI, etc.) 7 3.57 5.43

CVB- Vaccine Approval 8 2.62 6.38

Increased Environmental Regulations 9 2.40 6.60

Top 3 Non-Disease Issues

• Antibiotic Free Production, FDA Regulation, and Meat Quality

– The topic of ABF production is tightly linked to the top disease issues just mentioned

• Control of coccidiosis through ionophores

• Necrotic enteritis control with in feed antibiotics

• Chick bacterial control with in-ovo antibiotics

– FDA Regulation- VFD and prescription requirements in 2017

– Meat Quality- Woody Breast, especially in large bird debone

Breast muscle exhibiting wooden breast condition

Thank you!!! Any Questions?