Webinar Cage Free Egg Production. March 3, 2016 Chad Gregory President United Egg Producers

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1 Webinar Cage Free Egg Production March 3, 2016 Chad Gregory President United Egg Producers

2 Overview of UEP & The U.S. Egg Industry

3 United Egg Producers National farmer coop since 1968 with current membership producing more than 95% of total U.S. egg production (more than 300 million hens) Representing Egg Producers on: Government Relations offices/representation in DC HPAI and other disease management Food Safety Environment Animal Welfare And much more

4 United Egg Producers 150 separate egg company members Owning 303 million laying hens more than 95% of U.S. Board of Directors of 34 egg farmers most are owners

5 United Egg Producers UEP Committees 10 to 25 egg producers on each committee: Government Relations Information Sharing Food Safety Public Relations Environment Organic Animal Welfare EGGPAC and now a Biosecurity Task Force UEP s Scientific Groups: Scientific Advisory Committee for Animal Welfare Environmental Scientific Panel Food Safety Scientific Advisory Council

6 United Egg Producers Professional staff of 7 PR firm and expertise is CMA Consulting (Charlie Arnot) Crisis Management Experts Best Ag consultants and lobbyists

7

8 U.S. Egg Industry

9 U.S. Egg Industry Mid 1970 s 10,000 egg farmers in U.S. (est.) ,500 egg farmers commercial egg companies represent 99% of all eggs produced in the U.S. 60 companies with more than one million layers These companies represent approximately 255 million layers or 89% of egg production 17 companies with more than 5 million layers

10 U.S. Egg Industry Surplus Deficit Balanced

11 U.S. Egg Industry How are consumers consuming eggs in the U.S.

12 U.S. Egg Industry Of the 229 million cases of shell eggs produced: (Approximately 6.8 Billion Dozens 82 Billion Eggs) million cases went to retail (53.3%) million cases were further processed (32%) 22.9 million cases went for foodservice (10%) 10.7 million cases were exported (4.7%)

13 Animal Welfare Issues

14 Has it been enough?

15 Timeline of Events UEP has been addressing AW since 1982 Prop. 2 in California Nov Pursued Federal Egg Bill with HSUS HSUS resumed pursuing initiatives and corporate campaigns UEP Certified Program established In 2001 Efforts in MI, AZ, OH, OR, WA followed February 2013 Egg Bill Officially defeated

16 And now Massachusetts? HSUS Referendum in November, 2016 Banning the production of and sale of Pork, veal and shell eggs from crates and cages After January 1, million consumers in the state only 100,000 hens Hundreds of thousands of customers Taking away consumer choices Cost of food will go up significantly just look at CA And where does this stop???

17 Cage-Free Announcements Total U.S. Cage-Free Flock: 8.70% 5.70% 5.90% 6.00% 5.40% 4.40% 3.60% 3.50% Layers (millions) USDA Organic: 4.20% 2.90% 2.80% 3.00% 2.60% 2.20% 1.80% 1.70% Layers (millions) Traditional Cage-Free: 4.50% 2.80% 3.10% 3.00% 2.80% 2.20% 1.80% 1.70% Layers (millions) Source: USDA Agricultural Analytics

18 Cage-Free Announcements

19 Cage-Free Announcements Restaurant Chains Food Manufactures McDonald s Quiznos Nestle Burger King Sonic Unilever Taco Bell Hardee s General Mills Starbucks Carl s Jr. Kellogg s Jack in the Box P.F. Chang s Barilla Panera Bread Wendy s Grupo Bimbo Dunkin Brands Subway Flowers Foods T.G.I. Friday s Arby s ConAgra Foods Cheesecake Factory Qdoba Mondelez Au Bon Pain Cracker Barrel Campbell s Soup Noodles & Co. Red Robin Caribou Coffee Shake Shack Einstein Brothers Denny s Bob Evans Taco Johns Peet s Coffee & Tea White Castle California Pizza Kitchen Tim Hortons IHOP Applebee s Golden Corral Bloomin Brands Krystal Burgers 6.7 Billion Eggs/year 24.7 Million Hens

20 Cage-Free Announcements Food Service Grocery Stores Hospitality and Travel Compass Group Costco Marriott Aramark Target Hilton Worldwide Sodexo BJ s Wholesale Hyatt Delaware Trader Joe s Royal Caribbean North Centerplate Whole Foods Carnival Cruise Lines Schwan s CVS Starwood Hotels Stop & Shop Norwegian Cruise Lines Giant Martin s Peapod Albertsons 1 Billion Eggs/year 3.7 Million Hens For just restaurants and food service (as of 2/24/16) 7.6 Billion Eggs/year 28.5 Million Hens

21 Cage-Free Announcements Canada s Decision Time and cost to convert UEP Board Meeting March 8-9 in Napa

22 Conventional Caged Egg Production Around $15/hen

23 Conventional Caged Egg Production

24 Conventional Caged Egg Production

25 Enriched Colony Egg Production Around $25/hen

26 Enriched Colony Egg Production

27 Cage-Free Egg Production Minimum of $40/hen

28 Cage-Free Egg Production

29 UEP supports ALL 3 Production systems (and science does too!) And adamantly supports consumer choices! And recommends FMI members work with their egg supplier(s) on timing and costs

30 Happy to answer questions?

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