headquarters in lansing, il - incorporated 2002 ▪ 3 u.s. facilities ▪ 1 singapore facility...

Headquarters in Lansing, IL - Incorporated 2002▪ 3 U.S. facilities▪ 1 Singapore facility

Proprietary, patented, FDA-approved technology, pasteurizing more than 250 million eggs per year. (one billionth egg pasteurized in 2010)

Contracted Amerinet Supplier of Pasteurized Shell Eggs

American Culinary Federation seal of approval for quality and functionality

About National Pasteurized Eggs

1

SQF 2000 Certified

Recommendations and Approvals

2

Menu Choice

Many healthcare operators have chosen to give up shell eggs and serve only liquid eggs. This limits recipes to essentially scrambled eggs and omelets.

Liquid eggs don’t taste as good as shell eggs (Culture Change).

Patients and seniors often become unhappy and reduce egg intake with liquid.

Eggs are the most complete protein source available in the human diet and therefore can be key in recovery and health

The other choices for protein are usually far more expensive.

Compliance

FDA FOOD CODE – Must use pasteurized eggs when serving to Highly Susceptible Population (HSP)

Safest Choice helps operators to comply with the regulation and avoid the risk of citations, fines, illness and litigation.

Value Proposition: Healthcare

AI impacts

AI Outbreak

• 48 million birds affected – 35 million laying hens

• 223 detections - began Pacific Northwest on backyard farms

• Heavily concentrated in Mississippi flyway

• Largest US Outbreak; 2nd largest worldwide of Highly Pathogenic Avian Influenza (HPAI)

• Source is migratory water fowl but not only method of introduction

• Spread from farm to farm due to interactions, surfaces and wind

• Incidence has slowed as migration patterns change and weather warms (autumn return?)

Current Industry State

• Loss of 15.5% of total laying production

• Force majeure conditions

• Discontinuation of Supply

• Export quarantines

• Development of control protocols by USDA• Quarantines & control zones• Sanitations • Product holds

Long to middle term AI impacts

• Supply restoration• Chronic AI • Cost impacts• Timing

Impacts on NPE

• Quarantined farms

• New sources of supply based on market price  

• Suppliers declaring force majeure and suspend our contracts, leading to purchases based on market prices.

• The Urner Barry increased 120% in a 6 week period

• Facilities

NPE Management

• New sources of supply /contracts

• Price increase

• Allocations

• Cost cutting

• New production capabilities