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January 2012


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Economic Update

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Scientific and Regulatory

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    Live Production/Environment

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Top Headlines

Congress Ends Ethanol Funding  

Poultry Slaughter Rule 

Challenging Dioxin Proposal

Annual Convention Speakers 


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NTF Staff

President

Joel Brandenberger; Ext. 7226

 

Legislative

Damon Wells; Ext. 7232

Leslee Oden; Ext. 7228

 

Scientific & Regulatory

Lisa Picard; Ext. 7233

Andrew Bailey; Ext. 7224

 

Communications

Sherrie Rosenblatt; Ext. 7227

Adrienne Richards; Ext. 7223

Kimmon Williams; Ext. 7234

 

Membership

Jen Zukowski; Ext. 7229

Clara Sackey; Ext. 7221


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President's Messagepresmes

 

Greetings!  

 

Because it simply cannot be said enough, congratulations to all the NTF members and staff (and our many coalition partners) who worked tirelessly across the last eight years to achieve the first significant reform of the federal ethanol policy in more than three decades.  By allowing the ethanol "blender's credit" and the import tariff to expire, Congress has begun to recognize that corn-based ethanol is not
-- and never has been -- a viable solution to meeting our domestic energy needs.

 

That said, the renewable fuels reform effort --and many other pressing issues facing the turkey industry -- are far from settled.  The ethanol industry may have lost an important battle, but they are likely to try to revive the credit and the tariff.  And, as long as the Renewable Fuels Standard (RFS) is in place, no one is going to claim that the corn ethanol lobby is losing the war.

 

Ethanol, food safety, the environment, marketing, membership expansion and countless other key issues will be front and center at the 2012 NTF Annual Convention, Feb. 15-18 in Tampa.  The convention likely will be the first, and most critical step, in helping the federation and the entire industry prepare for major challenges in the coming year and beyond.  The convention will not only help set policy and prioritize issues for 2012, but it will help develop the agenda for the five-year NTF Strategic Planning meeting that will take place in mid-April.

 

In the Membership Section of this newsletter, you will find more information about the convention, including a link that will allow you to learn more about the program, register for the convention and make your reservations at the Tampa Marriott Waterside Hotel and Marina.  Additionally, many of you will receive updates on the agenda for the many committee meetings that will be taking place at the convention as well.

 

Please do not miss this opportunity to have a major say in how the industry prepares for 2012 and beyond.  We look forward to seeing you next month in Florida.

 

  

Sincerely,

 

Joel signature  

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Economic UpdateEcon  written by Tom Elam, FarmEcon, LLC

 

 

Tax Credits, the Renewable Fuel Standard and Unintended Consequences:  After four years of hard work on the part of NTF and its members, the Volumetric Ethanol Excise Tax Credit (VEETC), or blender's credit, for corn-based ethanol expired at midnight on Dec. 31.  During 2011, the blender's credit provided about $6 billion in support to the ethanol industry.  It was one of the major reasons that the United States will have produced close to 14 billion gallons of ethanol, while the Renewable Fuel Standard (RFS) required only 12.6 billion gallons.

 

In theory the 45-cent-per-gallon tax credit provides $1.26 (45 cents times 2.8 gallons per bushel) for every bushel of corn used to produce ethanol.  With the loss of the credit, blenders (gasoline refiners) will have less incentive to buy ethanol in excess of the 13.2 billion gallons mandated in the 2012 RFS.  Further, the removal of about $6 billion in income takes away buying power from the entire ethanol system.  That has to be a negative for both ethanol and corn prices, but by how much exactly remains unclear.

 

Click here to read the full article.  

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Legislativeleg

 

 

Congress Ends Ethanol's 30 Years of Government FundingEndEth:  As noted in the article above, 30 years of government funding of the ethanol industry came to an end Dec. 31 with the expiration of the VEETC and the tariff on imported ethanol.  Over the last month, NTF and its coalition of partners helped garner 73 representatives' signatures on a letter to House leadership urging the expiration of the subsidies and to resist any efforts to create new tax incentives.  The expiration of the VEETC and tariff is a significant grassroots victory for NTF and its members, after nearly eight years of steady work. Thank you to everyone who contacted their Senators and Representatives over the past year to advocate on this important issue affecting the turkey industry. NTF released a statement with its coalition partners, where NTF President Joel Brandenberger commended Congress.

 

 

NTF Encourages Senate Environment and Public Works Committee to Conduct Hearing on the Renewable Fuels Standard:  NTF, along with the animal agriculture coalition, sent a letter to Sens. Barbara Boxer, D-Calif., and James Inhofe, R-Okla., requesting the Senate Environment and Public Works Committee conduct a hearing to discuss the impact of the Renewable Fuel Standard (RFS) on feed supplies and the overall economy. The coalition cited ongoing pressure on domestic feed grain supplies and a discovery of $9 million in fraudulent renewable identification numbers as justifications for a hearing. Also noted in the letter was the 2011 National Academy of Sciences study that cited the diversion of the corn crop to ethanol production since 2007 as a contributing factor to the increased strain on livestock and poultry producers. NTF also issued a statement on the request. The statement was picked up by several trade press publications, including Meat and Poultry Magazine and Meatingplace.com.

  

  

USDA Implements GIPSA Rule Based on Provisions from 2008 Farm Bill:  USDA on Dec. 8, published the final version of the Grain Inspection, Packers and Stockyards Administration (GIPSA) rule, after more than a year of heated debate. Congress voted in November to prohibit USDA from moving forward on portions of the controversial rule. The language that was passed only permitted USDA to publish a final rule that addressed the four specific provisions contained in the 2008 Farm Bill. One troubling provision related to undue preference, which was in the 2008 Farm Bill, was removed from the final rule by USDA. The rule will become effective on Feb. 7.  

 

 

House Passes Dust Legislation with Bipartisan Support: The Farm Dust Regulation Prevention Act of 2011 (H.R. 1633) passed the house with bipartisan support by a vote of 268 to 150.  the bill prohibits EPA regulation of rural dust.  The bill now moves to the Senate.

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Scientific and Regulatorysci

 

Technical and Regulatorytechreg 

 

 

Poultry Slaughter Rule Heads to OMBPlSlgThe Poultry Slaughter Rule (PSR) cleared USDA and was sent to Office of Management and Budget (OMB) for approval.   OMB has 90 days to review the document, but FSIS expects them to respond quicker. FSIS assured NTF staff that a transition will be outlined for establishments currently operating under the Salmonella Initiative Program. Public comment period for this docket is expected to be 90 days, which leaves little chance of implementation in 2013. 

In a related matter, NTF was notified that the agency will be looking closely at plants currently operating under HIMP (HACCP-based Inspection Models Project) to make sure there are no public health concerns. It is expected that consumer groups and the inspectors unions will strongly oppose the PSR, therefore HIMP will likely be an example used as to why PSR is a bad idea. In the meantime, Sen. Kirsten Gillibrand, D-N.Y., asked the Government Accountability Office to review the use of HIMP.

  

NTF Reiterates Concerns on Release of Establishment-Specific FSIS Data:  NTF and several other trade associations reiterated numerous concerns that were expressed in the National Academy of Sciences' National Research Council report, "The Potential Consequences of Public Release of FSIS Establishment-Specific Data."  The report identified a number of possible costs or unintended consequences of public release of establishment-specific data, including the financial commitment associated with designing and maintaining a useful data-disclosure system; the drawing of inappropriate conclusions as a result of misinterpretation of the data; adverse effects on international trade; the risk that proprietary or confidential information could be deduced from the data; and adverse effects on inspector performance.

 

 

FSIS Posts New Report on Residue Sampling Programs:  FSIS has posted a new report on Microbiological and Residue Sampling Programs that serves as the first of a two-part effort by the agency to increase transparency and share information on the microbiological and residue sampling efforts.  An outcome of FSIS' Strategic Plan for 2011-2016, the report provides comprehensive information on the agency's sampling plans, including historical background, design, and statistical/policy basis and limitations for the current sampling programs.  FSIS plans to release a second sampling program plan in early 2012, which will identify changes FSIS expects to implement in the New Year.

 

Nutrition Labeling Rule Implementation Delayed:  In response to a request from NTF and several other trade associations, the effective date of FSIS final regulation that mandates nutrition labeling of the major cuts of single-ingredient, raw meat and poultry products and ground or chopped meat and poultry products is being delayed. Originally, the effective date of the final rule was Jan. 1, but has been delayed until March 1.

 

FSIS to Offer Regulatory Webinars: On Jan. 10 and Feb. 7, FSIS will provide guidance on addressing a recent increase of products recalled because of undeclared allergens. The discussion will focus on the steps establishments can take to prevent production of items containing undeclared allergens.   On Jan. 12 and Feb. 14, FSIS will address the general labeling approval process.  All webinars start at 2:00 p.m. EST.

To access the webinars, go to https://connect16.uc.att.com/usda/meet/?ExEventID=85277207 and follow the on-screen instructions. For technical questions, contact Kristin Goodwin (phone:  301-504-0878 or E-mail:  kristin.goodwin@fsis.usda.gov).

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Live Production and Environmentlpe

 

NTF Meets with Vilsack and Jackson:  NTF's Secretary-Treasurer John Burkel represented the turkey industry during a meeting with USDA Secretary Tom Vilsack and EPA Administrator Lisa Jackson to discuss such issues as the Renewable Fuel Standard and the proposed EPA dioxin standard.  During the meeting other topics included concentrated animal feeding operations, particulate standards, public perception of pesticides, nutrient management rules and water quality standards.

 

Secretary Vilsack reiterated his support for biofuels and asked that the disagreement on ethanol be kept within agriculture.  He also discussed USDA's budget reductions and warned that as a result programs will have to be cut or eliminated.

 

NTF Key Player in Group Challenging Dioxin ProposalDixPropNTF, along with a coalition of food trade associations, sent a letter to the White House expressing concern on EPA's proposed daily exposure limit for dioxin because the proposed limit is well below standards set by the World Health Organization and the European Union.  The proposed standard would not by itself trigger any regulations on farmers or food companies, but the government could later recommend measures, including restrictions on the content of livestock and poultry feed, to reduce the amount of dioxins consumed.  John Burkel mentioned this issue in his meeting with Vilsak and Jackson (see previous article).

 

 

FDA Makes Available Draft Guidance on Evaluating the Effectiveness of Anticoccidial Drug for Use in Poultry:  FDA announced the availability of a draft guidance document, "Evaluating the Effectiveness of Anticoccidial Drugs in Food-Producing Animals."  The draft document provides guidance to the industry for designing and conducting clinical effectiveness studies.  It also describes CVM's criteria for the evaluating the effectiveness of anticoccidial drugs intended for use in poultry and other food-producing animals.  

 

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TradeTrade

  

NTF Urges Japan's Inclusion in TPP Talks:  NTF, along with a coalition of more than 60 food and agricultural organizations, sent a letter to the Agriculture Secretary Vilsack urging the United States to work with Japan to smooth the way for the country's participation in the Trans-Pacific Partnership (TPP), a multilateral trade agreement.  The letter explained how adding Japan to the negotiations would enhance the significance of the TPP and make the agreement more encompassing.  In addition, the letter highlights how Japan's economy is second only to China's in the region and the United States' fourth largest agricultural export market.

 

 

NTF Working to End India's U.S. Poultry Ban:  NTF is working with the National Chicken Council and others to seek congressional support for an effort by USTR and USDA to challenge India's ban on imports of American poultry.  India put the ban in place because there have been cases of low pathogenic avian influenza (LPAI) in the United States when OIE rules clearly prohibit a nationwide ban for such LPAI cases.

 

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Worker Safety and Health/Human Resourceswrksfhh

 

USDA Proposes Labor Rule Regarding Federal Contractors:  USDA's Office of Procurement and Property Management has issued a direct final rule that would require contractors to attest that they and their subcontractors and suppliers are in compliance with all applicable labor laws.  The rule would modify the Agriculture Acquisition Regulation language that must be included in all USDA solicitations and contracts exceeding the threshold (currently $150,000). The federal contractor will be required to report any formal allegations or findings of non-compliance of labor laws and may be subject to False Claim Act charges if in violation of labor laws.

 

The Joint Poultry Human Resources Council is currently discussing whether or not to file public comments on the rule.

 

 

New OSHA NEP for Chemical Facilities: In a news release, OSHA announced a new National Emphasis Program (NEP) for process safety management covered chemical facilities. The Joint Poultry Safety and Health Council discussed the new NEP on the December conference call, as most poultry processing facilities may be in the targeted inspection list.  The NEP notice cites approximately 175 "highly hazardous chemicals" in the target list, including ammonia and chlorine.

 

 

Joint Poultry Safety and Health Council to Meet at IPE:  The Joint Poultry Industry Safety and Health Council will meet Jan. 25 at 1:00 p.m. in Atlanta during the International Poultry Expo (IPE).  All NTF members of the Joint Council will receive complimentary IPE admission.  Please click here for an IPE grower coupon.

 

  

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Marketing Communicationscomm

 

Marketingmktg 

 

 

Holiday Consumer Inquiries and Media Mentions:  NTF answered more than 230 phone and E-mail inquiries from both consumers and the media this holiday season.  E-mail was once again the most popular form of communication (56%).  The top consumer questions were about oven preparation, product availability and materials request for items like brochures or recipe pamphlets.

 

NTF also received numerous media mentions throughout the holidays reaching a circulation of more than 242 million.  The most popular media questions were about the National Thanksgiving Turkey presentation and turkey prices.

 

 

NTF Website Key Resource on Thanksgiving: NTF's website was a key resource for consumers on Thanksgiving Day, receiving more than 88,900 visitors.  For the entire month of November, EatTurkey.com received more than 226,200 visitors.  As in previous years, the most popular page was NTF's deep fried turkey page with more than 151,370 visits.

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Issuesissues

 

 

NTF Featured on Fox Business Network:  NTF's Sherrie Rosenblatt represented the turkey industry on Nov. 22, during an interview with Eric Bolling of "Follow the Money" on the Fox Business Network.  The interview was on PETA's billboards that targeted children and equated eating turkey to eating a pet dog.  Rosenblatt addressed how the turkey industry has a philosophical difference with PETA about the role of animals in society and how these groups ultimately want to end the production and consumption of turkey and other meat proteins.

 

 

Poultry Industry Illness and Injury Rate Press ReleasePlIll:  NTF, along with the National Chicken Council and U.S. Poultry and Egg Association, on Dec. 8 issued a press release highlighting how the incidence of nonfatal occupational injuries and illnesses in the poultry sector, which includes slaughter and processing, continues to remain low.   The press release was a result of the 2010 Injury and Illness Report released by the Department of Labor's Bureau of Labor Statistics that showed poultry processing illness and injury rate for 2010 was 5.9 cases per 100 full-time workers (per year).  The 2010 rate of 5.9 represents a 74 percent decrease from 1994.

 

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Member Servicesmem

 

 

NTF Announces Speakers for 2012 Annual Convention General Session II: spk Paul Steinhauser, CNN's deputy political director, will deliver the keynote address during NTF's General Session II on Saturday, Feb. 18.  With the nation entering a volatile election year, General Session II will focus on guiding NTF members on the best way to leverage the political environment in 2012.  Steinhauser will provide an analysis of the election year and the challenges that lie ahead.  Also joining the lineup is Leonard Greenberger of Potomac Communications Group, who will provide an overview of grassroots advocacy and strategy.  Closing General Session II will be a panel of speakers ranging from a social media expert to a public policy advisor, who will provide NTF members with the tools to be advocates on important turkey industry issues. Panelists include Joan Galvin, senior advisory, Kelley Drye & Warren; Robert Philips, vice president of digital media, GolinHarris; and Hobey Bauhan, president, Virginia Poultry Federation.

 

The 2012 Annual Convention is Feb. 15-18, at the Tampa Marriot Waterside Hotel and Marina.  Please note that the cutoff date is Jan. 24 for hotel reservations and special pre-registration rates.  For more information and to register, visit NTF's "Members' Only" website.  

  

 

Tampa Marriot Waterside Hotel and Marina

 

Sponsorship opportunities are still available. Please go online or contact Jen Dansereau for more information.

 

 

Preferred Supplier Members Continue to Grow:  NTF gained 43 new members in 2011, bringing the federation to a total of 287 preferred supplier members. NTF would like to thank the preferred supplier members for their continued support of NTF and the turkey industry.  During the Membership/Purchasing Managers Committee meeting at NTF's 2012 Annual Convention on Feb. 16, members will discuss big changes to NTF's preferred supplier membership program as the federation strives to provide its members with the best possible return on investment. 

 

  

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 Gibletsgib

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    NTF President Joel Brandenberger (left) presented Past Chairman Paul Hill, West Liberty Foods, an award for his years of outstanding service for NTF and the industry.
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    NTF's Damon Wells (left) toured a Hutterite colony in South Dakota prior to his attending the North Dakota Poultry Industries Convention in Fargo.

     

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    Butterball, LLC announced its support of the Culinary Institute of America (CIA) as the Gift-in-Kind (GIK) turkey provider through July 31, 2012. As a GIK supporter, Butterball will donate turkeys for use in CIA's top educational curriculum at its three U.S. campuses. 

     

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    Farbest Foods, Inc. is building a new 220,000 square-foot processing plant in Knox County, Ind., creating up to 600 new jobs.  The new facility is expected to open its doors in January 2014. 

     

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    Valley of the Moon Commercial Poults, Inc.and Aviagen Turkeys, Inc. were awarded the 2011 "Outstanding Business of the Year" Venture Award, presented by the Iowa Area Development Groups, which recognizes Iowa's finest business leaders and companies.

     

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    Butterball, LLC Carthage facility achieved 4 million worker hours without a lost-time injury, representing three-and-a-half years without injury. 

     

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    Carl's Jr. is expanding its line of Charbroiled Turkey Burgers with the launch of a Santa Fe Turkey Burger, which is now available at most Carl's Jr. locations in California, Colorado, Idaho and Oregon.

     

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    According to Technomic, incorporating "healthy" within menu descriptions has increased 86 percent. Starbucks' Reduced Fat Turkey Bacon and White Cheddar breakfast sandwich was used as an example for one of the better-for-you items added to menus.

      

     

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