Adapting to an Evolving Environment: Arkansas and U.S. Poultry Growers and Integrators

<p>NON-TECHNICAL SUMMARY:<br/> JUSTIFICATION: Over the past fifty years, poultry production became an increasingly important component of the economic base in many regions of the southern United States, particularly the Ozarks (Arkansas, Missouri and Oklahoma). Broiler production in terms of pounds of Ready-to-Cook (RTC) meat produced weekly in the U.S. has increased from 450 M in 1991 to 722M in 2010; the number of head slaughtered per week also increased from 131 M in 1991 to 166 M in 2010 (Poultry USA). During the forty-five-year period 1965-2010, per capita poultry consumption in the U.S. increased more than three-fold. This phenomenal growth coincided with growing consumer health concerns and increased demand for value-added, labor-saving food products. The broiler industry, already characterized by vertical integration and product differentiation, responded quickly to
these opportunities and thus continued along its path to greater concentration among firms. From 1980-2009, concentration as measured by the percentage of RTC broiler meat produced increased from 70% to 93% for the top twenty firms and from 20% to 48% for the top three firms (Poultry USA).
APPROACH: A risk assessment model will be developed to help identify the value and associated costs of potential risk reduction practices and food safety improvements. Recent changes in the poultry industry and increased human consumption of food items, including poultry meat, outside of the home has increased the exposure of individuals to foodborne pathogens. Opportunist pathogens have come into play in recent years and new research is needed to understand their behavior and their risk to humans. This project uses two different approaches to estimate the virulence properties of Salmonella typhimurium and Campylobacter jejuni in post-chill chicken carcasses: a multiplex polymerase chain reaction (PCR) and a measurement of lactate dehydrogenase (LDH) activities. Information collected will be combined with other data from sources such as the CDC, ERS, etc. to
evaluate the risk to humans of foodborne illnesses caused by these two bacteria types in poultry meat. We will estimate the welfare changes to pubic, company, and government given a catastrophic foodborne event. We will investigate whether the introduction of an insurance product to cover foodborne pathogenic risk is desirable to poultry meat producer and whether such insurance improves upon the current welfare status quo.

<p>PROGRESS: <br/>2013/01 TO 2013/09 <br/>Target Audience: Target audiences for the project activities this year were poultry growers in Northwest Arkansas and Oklahoma, row crop producers in the Arkansas Delta, poultry integrators, beginning farmers and ranchers in Arkansas, poultry growers across Arkansas and municipalities in Northwest Arkansas were reached through delivery of printed materials and presentations to local, state and regional meetings. In addition, audiences included 20 Southern Region representatives of Experiment Stations and Extension Services to "Local Food Systems in the South" initiative and crop insurers, lenders, USDA agency personnel and research and extension professionals in the national conference and subsequent communications on Crop Insurance and the Farm Bill. Changes/Problems: Nothing Reported What opportunities for training and professional
development has the project provided? Continuing interaction with poultry growers and integrators as well as other farmers (through Farm Bureau, Farm Credit System and Poultry Partners) resulted in public presentations to various industry audiences regarding risks associated with economic and regulatory changes in agriculture and agricultural trade policies.In addition, a major activity was conclusion of the convening and conduct of producer risk colloquia. Numerous insights to direct future research were obtained from the in-depth, first-of-its-kind �bar camp� information sessions among emerging producer audiences. How have the results been disseminated to communities of interest? Additional copies of IBIS continued to be subscribed to and the update of panel data for IBIS has commenced, involving panel information from 40 growers for the three IBIS components (broilers,
breeders, pullets), and should be completed by May, 2014.This information has been compiled and is in various stages of release to diverse audiences of producers and policy makers, the first being a briefing to the Deputy Secretary of Agriculture Krysta Harden at the Agricultural Roundtable in Little Rock in November 2013. The final colloquium was held with Specialty Crop producers in conjunction with Southern Sustainable Agricultural Work Group in Little Rock, AR, January 23-24, 2013. Assessment of anecdotal and observed responses by veteran farmers resulting in extensive output from the Young and Beginning Farmers Grant with Donoghue, et al. had been completed. An initial draft of this research has been completed and in prepared for submission to USDA-ARS for publication. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported
.<br/>PROGRESS: <br/>2012/01/01 TO 2012/12/31 <br/>OUTPUTS: Primary research accomplishments have occurred in three areas of emphasis: 1) Economic situation of poultry growers; 2) Issues facing the poultry industry and 3) Impact of high feed costs and over production and plant viability. Continuing interaction with poultry growers and integrators as well as other farmers (through Farm Bureau, Farm Credit System and Poultry Partners) continue to result in public presentations to lenders, regulatory professionals and integrator personnel at several levels regarding risks associated with economic and regulatory changes in agriculture. New panel for default values within the Interactive Broiler Income Spreadsheet are under development and IBIS continues to be subscribed to by persons within and outside Arkansas. Educational and outreach materials for a young and beginning farmer
project that includes poultry and livestock production were also developed and the courses are underway. In addition, a young and beginning farmer loan program through Farm Credit encouraging use of environmentally-based management practices to obtain concessionary loan fees and interest rates. PARTICIPANTS: H.L. Goodwin, Jr., is P.I./P.D. for the projects and utilized the following individuals for the project's activities: Sandra J. Martini, Meghan Ness, Susan Watkins, Amy West, Jessica House, Warren Carter, Mary Ahearn, Matt King, Bruce Tenecleve, Dan Donoghue, Ixchel Reyes, Paul Goeringer. Professional development opportunities for those working on the project included data management system development, data analysis processes, grant writing curriculum development and reporting and client interface. Collaborators included the Arkansas Energy Commission, Ozark Electric Cooperative,
the National Poultry Health Laboratory, USDA-ARS, the Dale Bumpers Small Farm Research Center, the Agricultural Law Center at the University of Arkansas, the National Center for Appropriate Technology, Arkansas Farm Bureau and Poultry Partners, Arkansas Farm Bureau, Tyson Foods, George's, Farm Credit Services, Western Arkansas Farm Credit, Source Gas, USDA/NRCS and Arkansas Natural Resources Commission. TARGET AUDIENCES: Target audiences for the project activities this year were poultry growers in Northwest Arkansas and Oklahoma, row crop producers in the Arkansas Delta, poultry integrators, beginning farmers and ranchers in Arkansas, poultry growers across Arkansas and municipalities in Northwest Arkansas were reached through delivery of printed materials and presentations to local, state and regional meetings. PROJECT MODIFICATIONS: Nothing significant to report during this reporting
period.
<br/>PROGRESS: <br/>2011/01/01 TO 2011/12/31 <br/>OUTPUTS: Primary research accomplishments have occurred in three areas of emphasis: 1) Economic situation of poultry growers; 2) Issues facing the poultry industry and 3) Alternative lighting in broiler houses. A thesis assessing propane usage patterns and pricing analysis was completed in Summer 2011. This thesis analyzed data on historical propane usage on the Arkansas Broiler Research Farm during 1214 flocks (since its inception through November 2010) to determine what factors are most important in the farm's consumption of propane. Primary factors considered were: minimum and maximum temperature, type of house, number and timing of flock placement and pick-up, feed conversion, water consumption, total propane usage by flock, price of propane, and firm. The pricing data were then transformed into four scenarios to assess
whether advanced contracting for propane was a money-saving strategy over the five-year period after housing renovation occurred. It was found that considerable savings would have been realized in three of the five years, and that over the five-year period, savings would have been realized with a propane purchasing plan that included purchase of all the years propane in July with actual deliveries occurring when inventories on-site reached 25 percent capacity. Continuing interaction with poultry growers and integrators as well as other farmers (through Farm Bureau, Farm Credit System and Poultry Partners) continue to result in public presentations to lenders, regulatory professionals and integrator personnel at several levels regarding risks associated with economic and regulatory changes in agriculture. New panel for default values within the Interactive Broiler Income Spreadsheet are
under development and IBIS continues to be subscribed to by persons within and outside Arkansas. Field research for a new research initiative involving the Arkansas Energy Office on use of LED lighting in broiler grow-out houses as a cost-saving measure was completed in December; results are being prepared for analysis. Educational and outreach materials for a young and beginning farmer project that includes poultry and livestock production were also developed and the courses are underway. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period. PARTICIPANTS: H.L. Goodwin, Jr., is P.I./P.D. for the projects and utilized the following individuals for the two projects' activities: Sandra J. Martini, Meghan Ness, Susan Watkins, Joseph Lacy, Drew Wilson, Susan Sullivan, Dan Donoghue, Ixchel Reyes, Paul Goeringer. Professional development opportunities
for those working on the project included data management system development, data analysis processes, grant writing curriculum development and reporting and client interface. Collaborators included the Arkansas Energy Commission, Ozark Electric Cooperative, White River Fertilizers, the National Poultry Health Laboratory, USDA-ARS, the Dale Bumpers Small Farm Research Center, the Agricultural Law Center at the University of Arkansas, the National Center for Appropriate Technology, Arkansas Farm Bureau and Poultry Partners. TARGET AUDIENCES: Target audiences for the project activities this year were poultry growers in Northwest Arkansas and Oklahoma, row crop producers in the Arkansas Delta, poultry integrators, beginning farmers and ranchers in NW Arkansas, poultry growers across NW Arkansas and municipalities in Northwest Arkansas were reached through delivery of
printed materials and presentations to local, state and regional meetings. PROJECT MODIFICATIONS: Nothing significant to report this year.<br/>
PROGRESS: <br/>2010/01/01 TO 2010/12/31 <br/>OUTPUTS: Primary research accomplishments have occurred in three areas of emphasis: 1) Economic situation of poultry growers; 2) Litter management; 3) Issues facing the poultry industry; and 4) Alternative lighting in broiler houses. Further development assistance on the recently commercialized Litter Baler was conducted focusing on the finalization of blending municipal biosolids with poultry litter. The final reporting of the USEPA project on blending dewatered municipal biosolids and poultry litter is currently underway. Continuing interaction with poultry growers and integrators as well as other farmers (through Farm Bureau, Farm Credit System and Poultry Partners) resulted in public presentations to lenders and regulatory professionals regarding risks associated with economic and regulatory changes in agriculture. Additional
copies of IBIS continued to be subscribed to and maintenance of the database continues. A new research initiative involving the Arkansas Energy Office on use of LED lighting in broiler grow-out houses as a cost-saving measure is underway and results are anticipated to have a major impact on Arkansas growers.Interdisciplinary activities include cooperation on two USDA-ARS projects regarding pasture renovation and ammonia scrubbers. PARTICIPANTS: H.L. Goodwin, Jr., is P.I./P.D. for the project utilized the following individuals for project activities. Sandra J. Martini, Meghan Ness, Susan Watkins, Joseph Lacy, Drew Wilson, and Susan Sullivan. Professional development opportunities for those working on the project included data management system development, data analysis processes, grant writing and reporting and client interface. Collaborators included the Arkansas Energy Commission,
Ozark Electric Cooperative, White River Fertilizers, the National Poultry Health Laboratory, USDA-ARS, the Dale Bumpers Small Farm Research Center, the Agricultural Law Center at the University of Arkansas, Arkansas Farm Bureau and Poultry Partners. TARGET AUDIENCES: Target audiences for the project activities this year were poultry growers in Northwest Arkansas and oklahoma, row crop producers in the Arkansas Delta, poultry integrators, and municipalities in Northwest Arkansas were reached through delivery of printed materials and presentations to local, state and regional meetings. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
<br/>PROGRESS: <br/>2009/01/01 TO 2009/12/31 <br/>OUTPUTS: Primary outputs were in three areas of emphasis: 1) Economic situation of poultry growers; 2) Litter management; 3) Issues facing the poultry industry. Interaction with the Arkansas Natural Resources Commission, USDA-NRCS, the Poultry Federation and the Arkansas Department of Environmental Quality is on-going. Continuing interaction with poultry growers and integrators as well as other farmers (through Farm Bureau, Farm Credit System and Poultry Partners) resulted in public presentations to lenders and regulatory professionals regarding risks associated with economic and regulatory changes in agriculture. Interdisciplinary activities include the HACCP Roundtable, Executive Board of the Southern Association of Agricultural Scientists, and cooperation on two USDA-ARS projects regarding pasture renovation and
ammonia scrubbers. PARTICIPANTS: Poultry Partners, The Poultry Federation, Western Arkansas Farm Credit, Arkansas Farm Bureau, Intertribal Agricultural Council, Farm Foundation, Illinois River Watershed Partnership, Conservation Reserve Enhancement Projects in the Illinois River and Beaver Lake watersheds with Arkansas Natural Resources Commission, USEPA, Arkansas Department of Environmental Quality. TARGET AUDIENCES: Poultry producers and processors, poultry service technicians, row crop farmers, agricultural lenders, state and federal policy makers. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.<br/>
PROGRESS: <br/>2008/01/01 TO 2008/12/31 <br/>OUTPUTS: Primary outputs were in three areas of emphasis: 1) Economic situation of poultry growers; 2) Litter management; 3) Issues facing the poultry industry. Interaction with the Arkansas Natural Resources Commission, USDA-NRCS, the Poultry Federation and the Arkansas Department of Environmental Quality is on-going. Continuing interaction with poultry growers and integrators as well as other farmers (through Farm Bureau, Farm Credit System and Poultry Partners) resulted in public presentations to lenders and regulatory professionals regarding risks associated with economic and regulatory changes in agriculture. Additional copies of IBIS continued to be subscribed to and maintenance of the database continues. Interdisciplinary activities include the HACCP Roundtable, Executive Board of the Southern Association of Agricultural
Scientists, Coordinator of the Alternative Energy SAAS opening session and multi-disciplinary track sessions for the 2009 SAAS annual meetings, development of consumer panels and panel assessments for the Heritage turkey research project and cooperation on two USDA-ARS projects regarding pasture renovation and ammonia scrubbers. PARTICIPANTS: Poultry Partners, The Poultry Federation, Western Arkansas Farm Credit, Arkansas Farm Bureau, Intertribal Agricultural Council, Farm Foundation, Illinois River Watershed Partnership, Conservation Reserve Enhancement Projects in the Illinois River and Beaver Lake watersheds with Arkansas Natural Resources Commission, USEPA, Arkansas Department of Environmental Quality, Ozark Slow Foods. TARGET AUDIENCES: Poultry producers and processors, poultry service technicians, row crop farmers, agricultural lenders, state and federal policy makers. PROJECT
MODIFICATIONS: Nothing significant to report during this reporting period.<br/>
PROGRESS: <br/>2007/01/01 TO 2007/12/31
<br/>OUTPUTS: Primary research accomplishments have occurred in three areas of emphasis: 1) Economic situation of poultry growers; 2) Litter management; 3) Issues facing the poultry industry. I was chairman of the Food Safety and Animal Health committee for the Farm Foundation effort and participated as a reviewer and steering member for the overall effort. A major accomplishment was completion of an assessment of the Ozark Litter Bank, culminating research and extension efforts over the past five years. The on-going project with the NRCS has resulted in over 70,000 tons of poultry litter being transported out of nutrient-surplus watersheds. This year, efforts in Litter Management have focused on developing projects to quantify field-level difference in yields for crops fertilized with poultry litter (wheat, soybeans and cotton experiments were conducted. Humified compost was developed
utilizing poultry litter and waste organic matter and is being assessed by golf course managers. The interactive software management tool LitterMart is ready for launch on the University website. Interaction with the Arkansas Natural Resources Commission, USDA-NRCS, the Poultry Federation and the Arkansas Department of Environmental Quality is on-going. Continuing interaction with poultry growers and integrators as well as other farmers (through Farm Bureau, Farm Credit System and Poultry Partners) resulted in public presentations to lenders and regulatory professionals regarding risks associated with economic and regulatory changes in agriculture. In addition, numerous copies (40+) of the Interactive Broiler Income Spreadsheet (for broiler, breeder hen and pullet producers) have been subscribed to and are in use at this time, thanks to cooperation of poultry partners and Winrock
International. Additionally, presentations were made to national sessions of American Farm Bureau on contracting in agriculture, its importance, predominance, functionality and potential externalities.
PARTICIPANTS: Individuals - Nathan Kemper, Research Specialist; Sandra Hamm, Research Specialist;Jim Smartt, Programming analyst. Partner Organizations - Poultry Partners; Winrock International; Poultry Federation; Arkansas Farm Bureau; American Farm Bureau; Farm Foundation; National Chicken Council, Council for Agricultural and Resource Economics; Mammoth Corporation; AgRecycle; Mississippi State University; Washington County Arkansas; City of Springdale Arkansas. Collaborators - Drs. Frank Jones, Keith Bramwell, Susan Watkins, Dustan Clark, Bruce Ahrendsen, Jennie Popp, Andrew McKenzie, Mike Thomsen, Nathan Slaton, Morteza Mozafarri, all from the University of Arkansas Division of Agriculture. Training or professional development - M.S. students Keith Smith, Andrew Armstrong, Corey Fortin, Alan Bacho; undergraduate students Kelly Pyle, Sarah Knox, Cody Wilson, Amalie Kennedy.
TARGET AUDIENCES: Poultry industry participants include, but are not limited to; producers regardless of age, gender or ethnicity; industry professionals of private and publicly-held firms; research and extension personnel; governmental regulatory agencies and local, state and federal policymakers.
PROJECT MODIFICATIONS: No changes planned.<br/>
PROGRESS: <br/>2006/01/01 TO 2006/12/31 <br/>Land Grant universities, governmental agencies, industry groups and non-profit organizations have all undertaken major efforts to study and explain some facets of this changing industry. However, no organization has compiled a neutral, comprehensive assessment of the future of animal agriculture in North America. Farm Foundation provided the leadership and framework for the stakeholders to review research, examine the pressures and challenges and explore the economic, structural and policy alternatives facing the industry. Consequences of key private and public policy decisions are outlined in an eight part document to be presented to policymakers in Canada, the U.S. and Mexico in Spring, 2006. The broad areas covered are: Economics and coordination of animal production, processing and marketing; Environmental issues; Animal
health and food safety; Animal welfare; Consumer demands; Labor and community issues and Global competitiveness and trade. I was chairman of the Food Safety and Animal Health committee for the Farm Foundation effort and participated as a reviewer and steering member for the overall effort. A major accomplishment was completion of an assessment of the Ozark Litter Bank, culminating research and extension efforts over the past five years. The on-going project with the NRCS has resulted in over 40,000 tons of poultry litter being transported out of nutrient-surplus watersheds. This year, efforts in Litter Management have focused on developing projects to quantify field-level difference in yields for crops fertilized with poultry litter (wheat is already planted and cotton and soybeans are slated for Spring 2007 planting). Humified compost has been developed utilizing discarded hay, breeder
and pullet litter and eggshell wastes. The interactive software management tool LitterMart is within one month of its launch at the Arkansas Farm Bureau meetings in mid-January. Extensive interaction with the Arkansas Natural Resources Commission, USDA-NRCS, the Poultry Federation and the Arkansas Department of Environmental Quality is on-going. Additional funding to implement shipment of litter through the pilot Ozark Litter Bank was obtained. Continuing interaction with poultry growers and integrators as well as other farmers (through Farm Bureau, Farm Credit System and Poultry Partners) resulted in public presentations to lenders and regulatory professionals regarding risks associated with economic and regulatory changes in agriculture.<br/>
PROGRESS: <br/>2005/01/01 TO 2005/12/31 <br/>Poultry production and processing has been a primary source of economic growth and stability in Arkansas over the past several decades. The by-product of this increased and more concentrated production is poultry litter, valued by cattle and forage producers as a prime soil amendment that has enabled farm income to increase. Litter was applied to meet nitrogen needs of plants according to USDA recommendations, but years of land application of litter have raised soil phosphorus levels and may result in excess nutrients being transported to surface water in runoff. Transportation of excess nutrients to deficit areas is desirable. Estimates of total annual litter production in the key watersheds were made and initial amounts of poultry litter designated for export were established as targets. Costs of transporting litter to
destinations in row crop areas of AR, MO and OK were estimated for raw, pelleted and baled poultry litter. At current market prices for chemical fertilizer, varying levels of transportation subsidies are necessary for OPLB to break even if the current market price for litter prevails. Current market prices for litter are substantially below the intrinsic (nutrient) value of litter. If the intrinsic litter value is paid, OPLB will operate at profitable levels. Baled litter was most feasible because it overcomes many of the row crop farmer objections of utilizing raw litter. Animal agriculture in Arkansas, the U.S. and North America is undergoing fundamental change. Technology and production economics are moving the industry toward fewer and larger production units. Concerns about environmental quality are pressuring the industry to find new ways to manage waste. Animal disease and other
food safety concerns are forcing the industry to develop better linkages and ways to trace animal products from the farm to the plate. Open markets are being replaced by contracts and other ways to convey critical information through the food chain. There is growing concern that some segments of the industry may move off shore to reduce costs. This change is not limited to any particular size or type of livestock operation, nor is it limited to the farm. Every facet of the animal food chain from genetics to the retailer and food service outlet is trying to adjust to the rapid pace of change. Land Grant universities, governmental agencies, industry groups and non-profit organizations have all undertaken major efforts to study and explain some facets of this changing industry. However, no organization has compiled a neutral, comprehensive assessment of the future of animal agriculture in
North America. Consequences of key private and public policy decisions are outlined in an eight part document to be presented to policymakers in Canada, the U.S. and Mexico in Spring, 2006. The broad areas covered are: Economics and coordination of animal production, processing and marketing; Environmental issues; Animal health and food safety; Animal welfare; Consumer demands; Labor and community issues and Global competitiveness and trade.</p>