PAGE 06C\'ROJUSe2/27/2BB2 26:51 3e69243118

SBHEPMB AoDUal Meeting 1002

AgendaDate:

Location:

March 7, 2002Travelodge Hotel Sakatoon

Time: 8:30 am

I.

~.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Call to orderApproval of the agendaAdoption of the Minutes from 2001 A OMPresentation of the Financial statements and Auditors' reportAdminisb'ator's ReportDirectors Per Diems and Travel ratesLevy fees for 2002Budget for 2002Discussion of Future dj~ons~tationsOther Business

SASKATCHEWAN BROILER HATCIllNG EGG PRODUCERS MARKETING BOARD

MINUTES -# 82- MARCH 01, 2001- ANNUAL MEETING @ TRA VELODGE HOTEL,

SASKATOON,SASK.

Ralph Isaac acted as Chair, the meeting was called to order @ 9:20 am.:Mr. Harvey Brooks, administrator and :Mr. Roy White from Agri-Food were in attendance.14 production units were represented.

The agenda was read

Mervin Slater made the motion that the agenda be adopted as read, seconded by CarolLetoumeau. Canied.

Minutes of the 2000 a1Ulual meeting were read by Ralph Isaac.

Richard Volk made the motion that the minutes from the 2000 annual meeting be accepted as

read, seconded by Don Barkman. Carried.

Harvey Brooks read the auditors report.

Ben Kleinsasser made the motion that the auditors report be accepted as read, seconded by Mervin

Slater .CaITied.

Harvey Brooks read the recommendations that the auditor, Curtis Hepting suggested. Therecommendations being: expense reports to be approved by the Board and then paid afterapproval, and that we should consider dual signfug authority on all cheques.

Mervin Slater made the motion that we have Cw1is Hepting do our 2001 audit, seconded by Don

Barkman. Canied.

Harvey Brooks read his administrators report.

Harvey read a letter from the Deputy Minister, Mr. Gord Nystuen, dated February 26,2001 thathad been written to Mervin Stater. After reading the letter, Harvey opened the floor to questionson the letter, a question from the floor was raised as to how he could open the letter up forquestions when the person that wrote the letter was not present to answer .HalVey then droppedthe discussion and questions on the letter .

Discussion on government issues, CFS, breeder issues, and a chick quality committee took place..

Harvey read his 2001 proposed budget. Discussion took place on the proposed partial budget.

Richard Volk made the motion that the partial proposed budget be accepted as read, seconded by

Don Barkman. Canied.

Ralph Isaac asked for 3 volunteers to fonn a committee to r~ew the directors per diam and travelrates. Don Barkman, Richard VoIk, and Ben Kleinsasser volunteered.

The meeting broke for a short coffee break.

Following the coffee break the cotmnittee assigned to review the rates decided that the directorsper diam should be lifted from $130.00 per day to $140.00 per day, and that the 32 cents per kmshould remain the same. DeWayne Unruh made the motion that we lift the directors per diam to$140.00 per day and that we leave the mileage rate at 32 cents per km., seconded by Brian Isaac.Canied.

Discussion on producers list took place, as to who is or is not a registered producer .It was asked asto why the producers list was not included in the annual report. Ronalda Kleinsasser stated thatHarvey had not sent her a list so it could not be added to the report.

Mr .White was asked about the list and stated that he was advised not to comment on the issue ofthe registered producers Jist.

Sandra Stevens gave her annual poultry extension report. She asked if the breeder people wouldlike to continue with the fall meeting in November , and it was requested that it be changed toDecember .It was also requested that there be a summer field meeting in July .Sandra was asked ifshe has ever been contacted by Harvey Brooks and she stated that she has never met or talked tohim. Sandra infolmed the producers that micro plasma testing would begin soon in breeder flocksand that this would be done by taking a blood test. Sandra also commented on the importance ofbiosecurity in this industry .

There was further discussion on the producers list and on the illegal production of hatching eggsby the Unity Hatchery and on how Harvey was handling this illegal production and disease contt'ol.

Meeting adjourned at 12:00 for lunch

Meeting called to order at 1 ;30 following lunch

Mr .Martin Dyck from Lill Dale was present

Martin gave a presentation on bird strain, growing and lighting birds, as wen as the half percentexploder rule, and that anyd1iDg under 70% hatchability gets shipped out that this would be coming

in the future.

Mr. Brooks rejoined the meeting at 2:20 p.m..

Levy discussion took place.

DeW ayne Unruh made the motion that we leave the levy at 60 cents, seconded by Brian Isaac.Canied.

Harvey talked about expansion of production for 2001, and the conversion agreement.Harvey commented on the present situation with the Unity Hatchery , he stated that he could not.say too much about it but that it was being handled by the legal system.

A vote took place as to whether or not we should confinue \Vith the Board paying for the CanadaPoultryman magazine. It was voted that the Board conUnue so subscribe and pay for the magazine.

Mervin Slater made the motion that the Board get on with their job as a price negotiation

committee, seconded by Richard Vo1k. Canied.

Don BarkIrum made the motion that the meeting be adjourned, seconded by Ben Kleinsasser .Carried.

Meeting adjoW1led at 3:10 p.m..

SASKA TCHEW AN BROILER HATCHING EGGPRODUCERS MARKETING BOARD

FINANCIAL STATEMENTS

DECEMBER 31,2001

ME YE R S NOR R IS PEN N Y LLP

AUDITORS' REPORT

To the Members:

Saskatchewan Broiler Hatching Egg Producers Marketing Board:

We have audited the balance sheet of Saskatchewan Broiler Hatching Egg Producers Marketing Board as at

December 31,2001 and the statements of revenues and expenses, changes in net assets and cash flows for the

year then ended. These fmancial statements are the responsibility of management. Our responsibility is to

express an opinion on these fmancial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards

require that we plan and perform an audit to obtain reasonable assurance whether the fmancial statements are

free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts

and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and

significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these fmancial statements present fairly, in all material respects, the financial position of the

Board as at December 31, 2001 and the results of its operations and its cash flows for the year then ended in

accordance with Canadian generally accepted accounting principles.

L.c{\~.L(S \{\.((ls ~e.I\.~1 LlPChartered Accountants

Saskatoon, Canada.anuary 25,2002

AMEMBEROF

. CHARTERED ACCOUNTANTS & BUSINESS ADVISORS

366- 3RD AVE. S., SASKATOON, SK S7K 1MS

PH. (306) 665-6706 FAX (306) 665.9910 www.mnp.ca

SUMMIT INTERNATIONAL

ASSOCIATES, INC.

SASKA TCHEW AN BROILER HATCHING EGGPRODUCERS MARKETING BOARD

Balance Sheet

December 31,2001

2000

(Restated -

note 5)2001Assets

$ 36,805

5.856

11,3767.555

Current

Cash

Accounts receivable

18,93142,661

550 721Capital assets (note 3)

19.652$ 43.211

Liabilities

25.467$ 7.106Accounts payable

Contingencies (note 4)

Net Assets

550

35.555

721

(6.536)

Invested in capital assetsUnrestricted

(5.815)36.105

19,652$ 43.211

See accompanying notes.

ON BEHALF OF THE BOARD:

Director

Director

SASKA TCHEW AN BROILER HATCHING EGG

PRODUCERS MARKETING BOARD

Statement of Revenues and Expenses

Year ended December 31,2001

2000

(Restated -

note 5)2001

Budget(Unaudited)Actual Actual

$ 79,061 84,600

24,000400

235

77,218

RevenuesAnnual fees

Expansion levy feesInterest and miscellaneous incomeLicenses and memberships

49235

865215

79.345 109.235 78.298

171 225

5,000

5,700?

1,200

2,000

1,400

40,000

6,000170

700

6,000

4.200

227-

8,2411,0001,4782,6011,1628,3546,000

18048

3,3191,0663.805

-

5,630

1,121

12,066

1,315997

35,839

6,000167

60

3,676

8,587

3.795

ExpensesAmortizationDirectorsExtension program

~ Insurance, Management salaries

Meetings and conventionOfficeProfessional feesRent

SubscriptionsTelephoneTravel -directors

-managersWages and employee benefits

37,425 72.595 79.480

Excess (deficiency) of revenues over expenses $ 41.920 36,640 (1,182)

See accompanying notes.

SASKATCHEWAN BROILER HATCHING EGGPRODUCERS MARKETING BOARD

Statement of Changes in Net Assets

Year ended December 31,2001

2001 2000

Total

Balance, beginning of year:As originally stated 721$ (14,016) (13,295) (4,633)

Prior period adjustment (note 5) 7 s480 7.480

As restated 721 (6,536) (5,815) (4,633)

Excess ( deficiency) of revenuesover expenses

071) 42.091 41,920 (1.182)

.alance, end of year $ 550 35~555 36,105 ~ill)

See accompanying notes.

.

SASKA TCHEW AN BROILER HATCHING EGGPRODUCERS MARKETING BOARD

Statement of Cash Flows

Year ended December 31,2001

2000

(Restated -

note 5)2001Cash provided by (used for) the following activities:

(1,182)$ 41,920

OperatingExcess ( deficiency) of revenues over expensesAdd (deduct) item not affecting cash:

Amortization 227171

(955)42,091Changes in working capital balances:

Accounts receivableAccounts payable

(1,060)12.802

1,699(18.361)

25,429 10,787Net change in cash during year

-58911.3768:ash, beginning of year

11,376$ 36.805Cash, end of year

See accompanying notes.

SASKA TCHEW AN BROILER HA TCHING EGGPRODUCERS MARKETING BOARD

Notes to Financial Statements

December 31,2001

I. Organization

Saskatchewan Broiler Hatching Egg Producers Marketing Board is a producer-elected board, operatedunder The Agri-Food Act of Saskatchewan, with the purpose of administering the marketing of chicksproduced from broiler hatching eggs. The activities of the Board are such that it is not subject to incometaxes.

2. Significant Accounting Policies

The fmancial statements have been prepared in accordance with Canadian generally accepted accountingprinciples and include the following significant accounting policies:

Capital assets

Capital assets are recorded at cost. Amortization is provided using the declining balance method at ratesintended to amortize the cost of assets over their estimated useful lives. The annual rates are as follows:

30%20%

Computer equipmentFurniture and equipment

In the year of acquisition, amortization is taken at one-half of the above rates.

3. Capital Assets

Accumulated Net BookAmortization ValueCost

2,2661.169

2,079806

187363

267454

$Computer equipmentFurniture and equipment

550 721$ 3.435 2,885

SASKATCHEW AN BROILER HATCHING EGGPRODUCERS MARKETING BOARD

Notes to Financial Statements

December 31,2001

4. Contingencies

A producer has made legal claims against the Marketing Board concerning actions taken in the allocationof quota. Management of the Marketing Board believes it will be successful against these claims. It is notpossible. at this time to estimate the amount for which the Marketing Board would be liable if the claimsshould be successful.

5. Prior Period Adjustment

Due to an oversight, accounts receivable totalling $7,480 were not recorded in the 2000 fmancialstatements. The prior period adjustment to correct this resulted in the following changes to the amountspreviously reported for 2000:

$ 7,480

7,480

7,480

7,480

Accounts receivable increasedDeficiency in unrestricted net assets decreasedAnnual fees revenue increasedExcess (deficiency) of revenues over expenses decreased

6. Related Party Transactions

a) Directors

The Marketing Board's Directors are elected from the producer-members of the Marketing Board. TheDirectors are subject to the same licensing fees ~d levies, on the same terms, as other producer-members.

b) Administrator

Saskatchewan Agriculture and Food (the Department) has engaged the services of an Administrator forthe Marketing Board. The Department is bearing the costs for these services; no amounts are beingcharged to the Marketing Board.

7. Comparative Figures

Certain of the prior year's comparative figures, which were audited by another professional accountant,have been restated to conform to the current year's method of presentation. Deficiency of revenues overexpenses was not affected except as identified in note 5.

PAGECYROJI.IS02/25/2002 366924311815:32

SBHEPMB AdministJ'8tDp's ReJX)rt

In June of 2000. the MinIster of AgricultUre and Food placed the powers oftbeSBHEPMB unO.r section I, 17. and 21 of the Broiler Ha~bina Ea'i, Marketina PlanRegulations, temporarily W1deI: the control of an Administfator. The Minister also placedthe administration of the CFS under the same Administrator. The first Administl'8tor wasMr. Harvey Brooks. In April of2001, J replaced Mr. Brooks as the Administrator.

As the Admini~or, I have been focused on 8 nwnber of areas. The focus of my effortsw_:

a) resolution of outstaodina issuesb) implementing the COD\lers!oo AgreeIIIettt with the CFS0) hnplementing the moditloations to the regulationsd) Developing and appropriate governance framework for the industry ,

During 200 I, I built on the efforts of the previous Administrator in the implemenL'ltion of~ Conwrslo~ Agteement wt~ me CFS. This Cofiversio'O Agfe~ butJt on the nilingsof the A8ri-Food Council and the SBHEPMB regulations. We agreed to and effected anIrbitra1e(! 5etitement of the monO1aryvaiue of the convened quota betweel\ the CFS andthe SBHEPI\..fB. This amount has now been finalized. We are now at the point ofd-mmg a tinancial pian md a payment schedule to effect payment to the CFS for theconvened quota. We 4l50 addreJsed some disputes arisinl from the ConversionAgreement, and responded to an appeal by a prod~r. We are now positioned to put theConvcnion Af"'"'nent behind us.

F()l!qwma $:UttlvoV$ ~ft'Qns ~Q ,,*h a commQn P9$lttQI1. produom ~ to ~ onseveral crucial matters facing the industry .As a result, the Minister of Agricultureprovi~ a deQiaion on the a1locl1ion of additional quota and tho implemon18tion of anauction 8ystem. [ implemented the auction system and we conducted the first auction inthe industry .The intemaJ auction, which was only open to existiDl producers inS~~~~ was conducted in June .The proceeds of this auction became the firstcontribution to an industry development Fund. There is now provision for furtheraUQtions, the I"'J8eods ofwhiGh will oontribute to the industry Fundi I have begun thedevelopment of the Fund fot the SBHEPMB.

It was imlX>rtant to improve the communications with and between producers. We hadieVetal mcctinSS with prod~ to improvc the tommunicatiom. I took the opponunityto listen to their concerns as we worked to build the industry and to responds to the8lOwth oppolt1JJlity to @l'OW the industry in support 6f the E~on Agreement signedby the CFS.

l:Aaal matters oontinuc to be a part of thc inQustry ; Wo spent a sianifi~ amoW1t of ~aiid resources dealing mth legat mauers.

I have not met with the Sask. Poultry Industry Advisory Committee. However, .1 haveworkm vcry closely ~ith the SBHEPMB OOard mcmbm -~y aftbe DrOducers in

l1'2/20/213132 15:32 3869243118 CYROJUS PAGE 03

identifying issues and advancing 5olutions to the issues fecmg the mduslPj er ~Ivingdi$p\J~s.. I h4v~ al$Q ~~n ~ec ~~f.y to impfQve the CQmmuni~ati()D$ \ltithprdducers and betwe~n pr'OdUoe1'5. Ptod~ a9Pear to "be comfortable Wheft all oftbem~ in thc same room hearing the same tbinp and worldna throuih issun toie\her .

It is important that we develop a itra!e~ direction for the industry that is supported bythe producers. We have made progress in resolving many issues. There are a number ofi!s\iCs that tcIItaiIi The reS()JutiM of iui;jCS Will nOw etiabIe us ro begil'i to focus on thefutUre. The most important issues outstanding ~ the strategic direction of the indUstr)'aild the g(jy~. this is a 5Ouroe of groat OOfioerfi and BiiXief>! tOt ~1joeiS.Producers have begun to develop proposals for the model of iovemance that will best fitthe lndustty. nn9 exercisewiU continue SlId be acceierated in 200~.

Several issues remain to be addressed. These include:

a)

b)

c)

d)

~)

Developing an appropriate Governance Model~telopin. I Stta~c P1111i\4 Vislan tbt the Indti.ittyResponWng to the strategic initiatives identified for the industly e.g..BIlE Qua1ity pro8M*t.Commwrication wi-th other stakeholders.Research initiatives with the hatcheryDetermi~ the role of the SBHEPMB within the provilwial and the nationaJindustry .

~~vina t:11e tev~1 of ~ tmQna ptQOuoo ~4 ~~ml me ~t Qt~by outstanding law suits.

OlWald L. Henry P. Ag.Administrator ~ SBHEPMB

PAGE 07CYROJUS3869243118~;l/~/I;lI1I1£ 26:51

Note:There is an outstanding liability facing the BHE for the COsts of the conv~ionagreement. There are some steps to be undel1aken to address this liability. Further. theexpansion quota is now subject to an auction, the I"""eocIa of which are targeted at anindustry development fund. The first obligations of the fund will be to reduce the liabilityof the Conversion Agreement. As a result~ the proceeds of the auction will DOt tX!reflected in the budget of the BHE. However, there may be some cOsts associated withthe establistunent of an atx:tion that will be born by the SHE.

February 13, 2002

Ms. Ronalda KleinsasserSaskatchewan Broiler Hatching Egg Producers Marketing BoardP.O. Box 296Luseland, SK SOL 2AO

Dear Ms. Kleinsasser:

RE: ANNUAL REPORT AND BUDGET FOR EXTENSION SERVICES

Please find attached the annual report and a budget statement for the year 2001. Alsoincluded are budget proposals for 2002 and 2003.

You will note that the budget for this year is the same as our last year's estimate.Invoices for the upcoming year reflecting the new budget will be sent out in the nearfuture.

As you are aware, Dr. Sandra Stephens resigned her position with us to take on newresponsibilities at the Canadian Food Inspection Agency. We are sorry to see her leavebut wish her well in her new position. We are fortunate that Dr. Craig Riddell hasoffered to take this position in the short term as we search for a more permanentreplacement.

I will be attending the Saskatchewan Poultry Conference in March and am hopeful that Iwill have the opportunity to meet with representatives of your organization at that time.As always, please feel free to contact me in regards to this report or other issues relatedto the University of Saskatchewan Poultry Extension Service.

Yours truly,

Cc: Dr. G. Wobeser, Head, Department of Veterinary PathologyDr. B. Laarveld, Department of Animal and Poultry ScienceDean A. Livingston, Western College of Veterinary MedicineDean E.M. Barber, College of Agriculture

Department of Animal and Poultry Science, University of Saskatchewan6034 Agriculture Building, 51 Campus Drive, Saskaloon SK S7N 5A8 Telephone: (306) 966-4128 Facsimile: (306) 966-4151

Poultry Extension Budgets

200

ooo~><

0-

-+-Income

-.-Expenses

Surplus

150

100

50

0

Year

1 University of Saskatchewan

Poultry Extension13/02/02

~DGET REPORT (2000)

$ 22,007.00

INCOME, SPONSORING AGENCIES$ 159,738.00

EXPENSES

SalariesTravel

TelephonesConsumables

.TOTAL

$$$

$

$

121,719.0014,281.00

1,055.004,751.00

141,806.00 $ 141,806.00

$ 39,939.00

BUDGET PREDICTIONS

2002 2003

Salaries $ 133,000.00 $ 135,239.73

Travel $ 20,000.00 $ 20,000.00

Telephone $ 1,000.00 $ 1,200.00

Consumables $ 4,000.00 $ 4,000.00

TOTAL $ 158,000.00 $ 160,439.73

2001 Report

JANUARY- DECEMBER 2001

Prepared for:

. Dr. H.L. Classen, Department of Animal and Poultry Science, Universityof Saskatchewan

Organizations funding the Poultry Extension Service.

Prepared by:

Sandra Stephens and Guillaume Audren.

1

2001 Report

INTRODUCTION

Program Objectives'

33

General

Staff changes

Producer meetings

Water

3334

BROILER HATCHING EGGSFall meeting

CoccidiosisStorage of HatchingShell Quality

555

6

77

788899

1010

BROILERS AND ROASTERSCoccidiosisInclusion Body HepatitisNecrotic Enteritis (NE)Bronchitis and Bursal challengesNotifiable DiseasesShrinkage due to lairage prior to processing

Transportation studyLighting program and feed withdrawalFirst week morality surveyFeeder and drinker space in chicken barns

TURKEYSField RicketsNotifiable DiseasesCarcass quality

II

II

II

II

13

13

13

14

14

14

TABLE EGGS

Salmonella programNutrition and shell quality

Infectious Laryngotracheitis (IL T)

Staph/ococcus aureusNecrotic Enteritis/Coccidiosis

2

2001 Report

The Saskatchewan Poultry Extension Service is funded by the four Saskatchewan

Poultry Marketing Boards and Lilydale Poultry. There are two service personnel: aPoultry Scientist and a Veterinarian. The University of Saskatchewan provides an officefor each and access to university resources. Policy is established by the Saskatchewan

Poultry Council on recommendation by the Research and Extension Committee. Theservice is supervised and administered by Dr. H.L. Classen (Animal and Poultry

Science) University of Saskatchewan in co-operation with Dr. G. Wobeser (Head) of theDepartment of Veterinary Pathology.

1. Monitor industry performance.2. Identify and solve industry problems.3. Investigate individual production problems.4. Communicate advances in poultry production.5. Act as a liaison to individuals supplying feed, medication and equipment to the

poultry industry.

Staff changes

The Poultry Pathologist position in the Depar1ment of Veterinary Pathology at theWestern College of Veterinary Medicine remains vacant at this time. The position hasbeen advertised and it is anticipated that this position will be filled July l' 2002.

Dr. Sandra Stephens resigned as extension veterinarian on December 31, 2001Craig Riddell will fill this position on a short-term basis.

Dr,

Producer meetings

In the past year Poultry Extension has arranged for speakers for the technical sessions,and luncheon speakers at the Annual Poultry Producers Conference. Topics dealingwith current disease problems and management practices were covered in each

producer group session.

The Fall Producer Meetings in 2001 were held in Wynyard for broiler chickens,Saskatoon for Turkeys and Broiler Hatching Eggs, and Saskatoon and Swift Current for

3

2001 Report

Table Eggs. These meetings are organized to provide an opportunity for producers tomeet with the extension personnel, to hear presentations on local industry concerns and

to exchange information and ideas with other producers.

Water

The safety of municipal and rural water supplies has been an issue that has gainednational attention over the past few years. Two issues concerning poultry productionhave been addressed by poultry extension this past year. First, water quality wasaddressed at the March meeting. To get optimal performance from birds it is importantto provide optimal environmental and nutritional conditions. Water is an extremelyimportant component of nutrition that is often disregarded when trying to optimize birdperformance. A complete water analysis should be done on the water supply on aroutine basis -the timing of repeat testing will depend to some extent on the source ofthe water. Deep wells do not require the frequency of testing that surface water orshallow wells would require for minerals and other elements. All water sources shouldbe checked yearly for bacterial contamination. Appendix A lists various elements andthe levels that poultry will tolerate without loss of performance.

The second water issue addressed this year was cleaning water lines and sanitizingdrinking water. Producers received a copy of the fall meeting notes on sampleprotocols that can be used. The use of acidic compounds is recommended to aid inremoving bio-film build up inside the water lines. Waterlines should be cleaned afterevery flock.

4

2001 Report

Fall meeting

Lilydale organised a meeting with personnel from Aviagen and Dr. Frank Robinson fromthe University of Alberta, on October 30th in Saskatoon. Excellent participation from theindustry was noted. Producers were informed on feeding programs for broiler breeders,on management techniques, and latest research on feeding breeders.

Coccidiosis

For the past year the administration of amprolium in the drinking water has been usedroutinely at approximately 2 and 4 weeks of age in most flocks. This approach is usedfor vaccinated flocks and for those on a step down ionophore program. This treatmentregime has been successful in reducing or preventing outbreaks of coccidiosis. For thesecond consecutive year there has been a shortage of 9.6% Amprol in the fall. It hasbeen suggested that producers calculate how much of the product they will require forthe year and make arrangements to order this amount early in the year .

Storage of Hatching

In one case of "lower than expected hatch results" that was investigated this year it wasdetermined that temperature abuse of the eggs before and during storage was

potentially causing early embryonic death. A break out of hatch debris followed by abreak out of eggs set for one week showed that the fertility rate was within the normalrate for the age of breeding hen, but the incidence of early embryonic death was morethan double the expected rate. Key points to remember for handling hatching eggs to

get optimal hatch results are:

1. Eggs must be cooled to or below embryonic physiological zero (70°F or 21°C), within4 hours of collection. At this temperature development of the embryo is arrested -embryos that have undergone too much growth will not survive storage or will notrespond to incubation.

2. Avoid temperature fluctuations -any time the temperature rises above 70°F duringstorage there is potential for embryonic growth to start again, thereby decreasing theviability of the embryo when incubated. Storage temperatures should be 65°F(19°C). The temperature of any given cooler should not fluctuate more than1.5 -2.0°F for the entire storage period.

5

2001 Report

Shell Quality

Poor shell quality, higher than "normal" mortality and failure to reach a good peak were

investigated in a flock in 2001. The major problem for this flock was the unusually highnumber of thin shelled and shell-Iess eggs at the onset of production.

Poor shell quality is not a common complaint for young breeder hens, however, when itis seen the most common cause is believed to be over feeding birds when thedeveloping ovary is very sensitive to nutrient changes. Dr. Frank Robinson's work atthe University of Alberta indicates that this "most sensitive" period would be the twoweeks following lighting. Birds that are overfed at this time can develop multiple sets offollicles maturing at the same rate. As a result, two follicles can be released into theoviduct within a few hours of each other, and the second egg will be thin shelled or haveno shell. Improper calcium/phosphorus balance and/or low levels of Vitamin D can alsoimpact shell quality. There are a few viral infections that can be associated with poorshell quality. Infectious Bronchitis virus, Newcastle Disease virus and some Adenoviruses have been associated with poor production and poor shell quality. In thisparticular case there was a possibility that the pullets had been overfed shortly afterlighting. These birds were further stressed when they had to be abruptly switched fromone water supply to another. Infectious Bronchitis and Newcastle Disease were foundnot to be the cause, but Adeno virus infection could not be ruled out. The productionproblems and the course of the disease were suggestive of adeno virus infection,however there are no definitive tests available for this group of viruses. The importanceof farm biosecurity programs can not be overemphasized in situations like the above.Many diseases of economic importance have been identified and brought under controlin the poultry industry -however, there are always new viruses emerging or old virusesthat have undergone changes that can cause significant disease challenge. The bestprotection for any production unit is to prevent these agents from getting onto the farmthrough the implementation of strict biosecurity .

6

2001 Report

Coccidiosis

Outbreaks of clinical coccidiosis are not common in Saskatchewan broiler barns. Inmost cases the disease occurs following a management problem or error that results inwet litter in the barn when the birds are 3 to 4 weeks of age. This year we have seen afew cases where flocks placed in new barns have experienced clinical coccidiosis, eventhough litter conditions were good. These cases may be characterized as part of the"new barn" syndrome -new barns do not have a resident populations of coccidia (orany other potential pathogens) so chicks are not exposed to even low levels of coccidiaetc. at placement. When these organisms are introduced into the barn in sufficientnumbers the chicks may not be able to respond adequately to the sudden challenge.

Amprolium (Amprol 9.6%) can be used effectively to treat outbreaks of clinicalcoccidiosis. Sulfaquinoxaline (Quinnoxine-S) can also be used and is very effective in

treating coccidiosis. The following cautions should be observed when using sulfa drugs:1. Withdrawal times must be observed prior to slaughter.2. The use of s.ulfa drugs can cause knock down in chicks less than 3 weeks of age.

Inclusion Body Hepatitis

We continue to see a few cases of this viral disease every year. In most cases it hasoccurred on the same farms as in previous years, and in chicks as young as 8 to 9 daysof age. The young age at which this disease is affecting these flocks and the fact thatthere does not appear to be a common breeder flock source in any of the cases,suggests that the viral agent (adeno virus) is causing this disease in these young chickson its own. The virus does not appear to have been passed to the chicks from the hensand it is not infecting the birds secondary to an immunosuppressive agent such asInfectious Bursal Disease or Chicken Anemia Virus. It would appear that virus hasestablished itself in some barns as evidenced by the repeat outbreaks on certain farms.It is important to note the age at which this disease is occurring -8 days of age.Producers should be cautious that they do not attribute mortality seen at one week ofage to being a continuation of yolk sac mortality. Yolk sac mortality, due to E. coli,should have subsided by 7 days of age -if a flock is experiencing increased levels ofmortality at this age, chicks should be submitted for pathologic diagnosis to determinethe cause.

Necrotic Enteritis (NE)

Cases of NE are seen occasionally throughout the year. These cases can occur inassociation with coccidiosis or as a separate infection, with Clostridium perfringensbeing the sole pathologic agent. Most frequently mortality caused by NE occurs in birds

7

2001 Report

over 24 days old, however it can occur in birds as young as 10 days of age. Mortality ina normal broiler flock during the second and third weeks that the chicks are in the barnshould be very low -0.5% per week or less. Chicks should be submitted for pathologicdiagnosis if unexplained mortality is significantly higher than this.

Bronchitis and Bursal challenges

Serologic monitoring of Saskatchewan breeder flocks is conducted for Infectious BursalDisease (IBD) to ensure that high maternal antibody levels are passed onto the chicks.There should be no need to vaccinate broiler flocks for either IBD or Bronchitis unlessflock performance and condemnation indicate a challenge. Before producers initiate avaccination program for either of these diseases, serologic and post mortem testingshould be done to obtain an accurate diagnosis. Consult the Poultry Extension Serviceveterinarian for advice.

Notifiable Diseases

Various countries that import poultry meat from Canada have identified four diseases of'significance'. Essentially these are "diseases of political importance" that act as non-tariff trade barriers. Three of the four diseases, Infectious Laryngotracheitis, AvianEncephalomyelitis and Fowl Cholera occur with some regularity in Canada. Vaccinationfor the prevention of these diseases is used for some or all of these diseases in someareas of Canada. Chlamydiosis is rarely diagnosed in commercial flocks.Saskatchewan Agriculture and Food implemented a surveillance system for these fourdiseases in July 2001. In this way, a reporting system for these diseases was createdthat would enable federal veterinarians in the registered slaughter facilities to verify thatflocks processed in these establishments had not been diagnosed with these diseases.The producer declaration as to the health status of their flocks is an integral part of thesuccess of this program.

Poultry Extension performed a feed withdrawal trial in March 2001 at the University ofSaskatchewan Poultry Centre. The objective was to estimate the amount of carcassshrinkage occurring prior to processing. At the time of this research, the Saskatchewanbroiler chicken industry loaded its birds around 10 pm the night before processing. Thispractice caused long waiting periods at the plant and consequently it was frequent tohave birds off feed for more than 12 hours prior to processing. This long waiting periodcan cause significant carcass shrinkage and economical loss for the SaskatchewanChicken Industry.

At 38 days of age, feed was removed from broiler pens and all birds were weighed.Water was provided for the next 4 hours, and then all birds were placed in crates and

8

2001 Report

weighed. The birds were subsequently weighed every 4 hours, until they had been offfeed for 20 hours. On average, body weight decreased by 56, 83, 108 and 124 gramsafter a period of 8, 12, 16 and 20 hours off feed, respectively. The weight loss to 8 hoursis essential to allow proper bird processing but weight loss beyond that time isconsidered unnecessary and a loss to the industry .At the time of the experiment, theaverage "off feed period" in Saskatchewan was 13.5 hours, which represents a loss of40 grams per bird. This represents a loss of approximately $450 for every 10,000 birdsshipped to the processing plant or the equivalent to 210 birds. Recent changes in

catching times should decrease the shrinkage and economical losses for bothproducers and processor due to excessive time off feed.

Transportation study

Studies on the environmental conditions of broiler transportation vehicles have beentaking place over the last two years. During that time a total of 31 vehicles have beenclosely monitored for temperature and humidity during winter, spring, summer and fallseasons. Data from these runs is still being analysed but as expected the largest

environmental challenge occurs in winter. Both areas of warm and very coldtemperature develop on trucks due to the extreme ambient conditions typical ofSaskatchewan winters and the passively ventilated trailers used for broiler

transportation. Modification of ventilation configurations on existing trailers or thedevelopment of improved vehicles are being studied to eliminate these poorenvironmental conditions. Additional funding has been received from NSERC andAgriculture and Agri-Food Canada to complete engineering research on this subject.

Data were also collected on dead on arrival (DOA, birds dying during the transportationperiod only) and values ranged from 0.05% to 0.52% with an overall average of 0.18%for winter runs. DOA values for spring, summer and fall runs were 0.12, 0.12 and0.10%, respectively. These data suggest that, with the possible exception of winterconditions, higher levels of death loss experienced by commercial production flocks areoccurring during lairage at the slaughtering plant. This emphasises the need to reducelairage time and improve lairage environmental conditions.

Poultry Extension completed research on the interaction of lighting program and feedwithdrawal to see if it is possible to synchronize the feed passage in the intestinal tractof chicken flocks. It may be possible that lighting programs could be used tosynchronize the digestive tract status of broiler flocks and thereby reduce the risk ofcontamination at the slaughtering plant. Results from this experiment are still being

analyzed.

9

2001 Report

First week morality survey

A survey of first week mortality was done in collaboration with the Lilydale Hatchery in

Wynyard. Average first week mortality was 2.1%, which is higher than values reportedfor Quebec, Manitoba, and British Columbia. Saskatchewan chicken producers should

target 1% or less first week mortality. Barn and floor temperature during the broodingperiod is very important has an important impact on early mortality and flock

performance. Barn temperature should be 32°C (89-90°F) at chick placement with afloor temperature at 30°C (86°F). Other factors like relative humidity, water and feedquality and availability, and chick quality can also affect first week mortality. For moredetails on the survey and first week management, see slides below.

Feeder and drinker space in chicken barns

The first week survey also provided information on floor, feeder and drinker space inbroiler barns. Floor space at housing ranged from 12.5 to 19 birds/m2 (0.56 to 0.86ft2/bird) which equates to approximately 22,5 to 34.2 kg/m2. The survey indicated thatSaskatchewan producers have an average of 68 birds per feeder and 14 birds pernipple waterer. 'According to equipment manufacturers, 13-inch pans are designed for50 to 60 birds and 14-inch pan for a maximum of 65 birds per pan. Nipples are designedfor 10 to 17 birds. Lack of feeder/water space can increase scratching damage anddown grading at processing. Also, lack of feeder/water space can affect growth anduniformity. For more details, see slides below.

10

2001 Report

Field Rickets

The development of rickets in young turkeys is most often associated with a nutritionalimbalance of calcium and phosphorus or the impaired utilization of these inorganicelements when vitamin 0 levels are inadequate in the diet. In most cases correcting thedietary deficiencies can alleviate the problem. This year the investigation of theoccurrence of rickets in three consecutive flocks on one farm revealed the presence ofunidentified bacterial like organisms that may be playing a role in the development ofrickets in very young poults (2 weeks of age). Further investigation of the significanceof these organisms in the development of rickets is planned for 2002. Turkey poultsshould receive supplemental Vitamin 03 in the water starting at 10 to14 days of age.The treatment should be given every other day for one week. This regime should berepeated at 6 weeks and 9 weeks of age. Using Vitamin 03 in this way will ensuremaximum uptake and utilization of calcium resulting in the development of strongbones.

Notifiable Diseases

Various countries that import poultry meat from Canada have identified four diseases of'significance'. Essentially these are "diseases of political importance" that act as non-tariff trade barriers. Three of the four diseases, Infectious Laryngotracheitis, AvianEncephalomyelitis and Fowl Cholera occur with some regularity in Canada. Vaccinationfor the prevention of these diseases is used for some or all of these diseases in someareas of Canada. Chlamydiosis is rarely diagnosed in commercial flocks.Saskatchewan Agriculture and Food implemented a surveillance system for these fourdiseases in July 2001. In this way, a reporting system for these diseases was createdthat would enable federal veterinarians in the registered slaughter facilities to verify thatflocks processed in these establishments had not been diagnosed with these diseases.The producer declaration as to the health status of their flocks is an integral part of thesuccess of this program.

Carcass quality

Down grading is still a major problem for Saskatchewan turkey flocks. Poor percentageof grade A in tom flocks and lack of consistency of grade A in hen flocks decreaseprofits for the producers. Barn environment, such as litter and air quality, is essential toproduce quality birds. In Saskatchewan for 2001, the average percentage of grade Awas 78 and 73% for broiler and hen turkeys, respectively. Less than 50% of birds in tomturkey flocks were grade A. For details on grade distribution, see slide below.

11

2001 Report

It would be to the advantage of the whole industry (producers and processor) tounderstand the causes of down grading in order to be able to develop a strategy toincrease the number of grade A birds in the province.

12

2001 Report

Salmonella program

The Saskatchewan Egg Producers continue testing all flocks for Salmonella enteritidis.In 2001 a total of 88 flocks were tested with none positive for Salmonella enteritidis andonly 12 (13.6%) positive for any Salmonella species. These results are similar to 2000and maintain the trend to lower levels of Salmonella being found on Saskatchewan egg

farms (see following Table)

# of Positive flocks # of

y flocks # oA Salmonellaear tested ° strains

1997 108 39

1998 108 36

1999 88 19

2000 83 12

2001 88 121 No flocks positive for Salmonella enteritidis.

36.133.321.514.013.6

911464

In 2001, four strains of salmonella were reported. Salmonella mbandaka continues tobe the most common type of salmonella found in Saskatchewan. This speciesrepresented 54% of the positive samples collected during 2001. The other strains ofSalmonella reported during 2001, were Salmonella orion, infantis, and anatum. It isimportant to note that Salmonella orion and anatum were not present in Saskatchewanlayer operations last year. According to the survey, 22% of Saskatchewan table eggflocks are under an "all-in/all-out" management system. This is a 220% increase since1999.

Nutrition and shell quality

Farm visits indicate that a some producers are overfeeding protein to hens during thelast 15 to 20 weeks production cycle. In these particular cases, protein level could likelyhave been decreased by 1 or 2% with no effect on production and egg size. To properlyphase feed or reduce protein, producers need to monitor feed intake, body weight and

egg size accurately.

Shell quality was identified as a problem in a number of flocks. In general, calcium

deficiency was identified as the cause of the poor shell quality. It was recommendedthat producers top dress oyster shell on the last meal of the day and add vitamin 03 in

the water.

13

2001 Report

Knowledge of the daily feed (nutrient) and water intake of laying hens is essential tomaximize profitability of modern egg operations. These records allow for the predictionof flock problems, and are required to efficiently provide nutrients to hens and therebycontrol body weight, egg size and shell quality. For more details on the effects ofenvironment and feed intake see slides below.

Infectious Laryngotracheitis (IL T)

A survey of serological titers for IL T was initiated in 2001. This survey was conductedto gather information on what the "normal" IL T tit res are for Saskatchewan laying flocks.The information will provide valuable information on which future decisions can bebased in the event that a depopulation of a premise is necessary. In this survey 20

randomly selected farms were chosen for the initial sample collection. Thirty birds weretagged and bled on each farm. Following the first sample collection, 3 farms that hadno titre for IL T and 4 farms that had low positive titres were selected for repeat serologic

testing. These flocks were all between 18 and 26 weeks of age. Sera samples werecollected from the tagged birds every 8 weeks for the life of the flock. The final samplecollections will be done in the Spring of 2002. To date, it appears that the presence oflow positive titer is not an indication of the presence of clinical disease in the flock.

Producers often raise the question of vaccination for IL T. The results of this surveyindicate that there is not a problem with clinical disease in Saskatchewan flocks and thatthe use of vaccination against IL T is not required.

Staphlococcus aureus

A young laying flock experienced a sudden increased mortality and dramatic decreasein production. The afflicted hens had markedly swollen wattles and combs and went onto die within a few days. Staphlococcus aureus was isolated in pure culture from thewattles and combs of these birds. This organism is part of the normal "bacterial flora"found on the skin of poultry .Historically when it was found as a pathogen it wassecondary to or working in association with another bacteria or virus. Recent reportsindicate that this organism now seems to be capable of being a primary pathogen. Inthis case we were not able to identify any other agent involved. Avian Influenza,Newcastle Disease and Fowl Pox were ruled out as potential disease agents in thiscase.

Necrotic Enteritis/Coccidiosis

Periodically necrotic enteritis and/or coccidiosis are diagnosed in pullets just startinginto production. These diseases are not often seen in caged laying hens because thebirds have limited access to fecal material that harbours these organisms. In caseswhere disease is present, investigations have revealed that a buildup of manure occurs

14

2001 Report

in the cages. The outbreak is usually limited to a small number of cages but death losscan be significant, as these birds have no acquired immunity to these disease agents.Proper management of manure in cage operations is required to eliminate necroticenteritis and coccidiosis as disease problems in caged laying hens.

15

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