Small-Scale Livestock Production

Raising Poultry for Profit

This program was funded by the USDA National Institute for Food and Agriculture (NIFA) Beginning Farmer and Rancher Development Program (BFRDP) under award #2009-49400-05871.

What you need to know before you get started…

New marketing opportunities

Environmental stewardship

Production practices

Safe product handling

Business licensing

Zoning restrictions

• Leveraging flock management

• Certification programs• Evaluating program

costs & benefits

New Marketing Opportunities

Certification and Marketing

• Consumers are interested in how livestock are raised, handled & processed

• Certification may allow you to secure a premium for product or expand market reach – Such as specialty food stores and restaurants that

require that their animal products be sourced from humanely raised animals

• How you manage your flock (your stewardship practices) can influence your marketing opportunities

Animal Welfare Certification Programs

• Distinguish livestock products as coming from humanely treated animals

• Certified production systems often are more expensive than non-certified

• Be sure to keep in mind the production costs and marketing benefits of following a certification program

Animal Welfare

Approved

USDA Organic

American Humane Certified

Food Alliance

Global Animal

Partnership

United Egg

Producers

Possible Program Specifications for Flock Management

Outdoor access

Litter management & ammonia levels

Space allowances (roosting &

range)

Sleep period requirement

Catching birds for transport

Evaluating Certification Programs

• Make sure program goals align with yoursGoals

• Understand the certification process & animals covered Certification

• Understand the program’s fee structureFees

• Calculate the time required to achieve & maintain certificationTime Commitment

• Estimate how your production costs may change under certificationProduction Costs

Evaluating Certification Benefits

Access to new markets that seek certified products

Possibility of charging higher

prices for products

Ability to connect with customers based on their

values

Access to marketing materials and support

from certifying organization

Certifier may help grower improve safe

production and handling techniques

Evaluating Certification CostsMore ranging or living area may be required for each bird enrolled in the certification program You may need more land

Changes to poultry health care You may need to remove from your program sick birds that you vaccinate or medically treat

Changes to poultry feeding You may need to use feed from specific sources or follow certain ingredient guidelines

Changes to poultry housing You may need to build additional facilities to allow more space per bird

More detailed record-keeping on poultry health and raising You may need to allow more time or hire someone to do this

Linking Production & Marketing Decisions• Choose a breed that is appropriate for the products you

want to produce (meat vs eggs)• If you are producing meat animals, do you have a

slaughter and processing facility that will work with your level of production?

• Know who will buy your product before you produce it

• Take a course in Good Agricultural Practices (GAPs) – To understand how to prevent or reduce contamination of your

products throughout production, processing and sales – Obtaining GAPs certification is also a good marketing strategy

To be a good neighbor and food producer:• Manage manure properly• Monitor storm water

runoff• Dispose of mortalities

safely

Environmental Stewardship

Good Stewardship Leads to Better Business Management

Minimizing:• Animal and

manure odors• Dust• Insects &

predators

Using best management practices to:• Dispose of

dead birds• Mitigate runoff

Leads to a:• Cleaner

production operation

• Healthier herd• Good neighbor

relationships

& =

Manage Manure Properly

Control unpleasant odors and dust

Know the nutrient content of your manure, apply based on nutrient/fertilizer value, and keep recordsSpread manure away from wells, springs, and watercourses

When possible, till in fall-applied manure

Keep piles of manure, spent bedding and spoiled feed away from watercourses

Monitor Storm Water RunoffConduct annual tests for bacteria and nitrates in well water

Locate poultry operations away from wellheads; protect wellheads in pastures (consult local/state wellhead protection laws) Use buffers and setbacks to protect surface waters from direct contact with animal waste and process waste waterDivert clean water (run-on) around production and waste storage areas using berms, ditches grassy swales, roof gutters

Dispose of Dead Birds Safely

Abide by state/local laws

Render within 48 hours, where service is available (dead animals used to create a new, usable product)

Compost in pile or bin, at high temperature (130o-150oF)

Bury on farm, at least 300 feet away from a watercourse and 3-ft deep, above the wet season high watertable

Bury/dispose at a licensed landfill

• Maintaining a healthy flock

• Managing sick birds

• Growing your flock

Production Practices

Animal Welfare

Preventing disease among your flock involves good stewardship and management

Adequate space & ventilation

Clean housing & bedding material

Access to water at all times

Nutritionally complete food

Protection from predators

Protection from extreme temperatures

Managing for Healthy Birds Includes Providing

Managing Sick Birds Includes

• Having a local avian veterinarian who understands your flock management program

• Establishing a plan for:– Any unknown disease

– Avian Influenza & Exotic Newcastle (cause significant morbidity in flocks)

• In case of disease outbreak, having a plan for cleaning and disinfecting vehicles & equipment, and protecting your employees

• Developing a quarantine procedure for sick birds• Developing a disposal plan for dead birds

Growing Your Flock

• Look for hatcheries participating in Voluntary National Poultry Improvement Plan (NPIP) – Certifies that poultry breeding stock and hatcheries

are free from certain diseases• Avoid poultry swaps or other unverified sources • Quarantine new birds before integrating into

your flock• Keep in mind local regulations for numbers of

birds allowable in your area

• Eggs• Meat• Live birds

Safe Handling

Eggs: Safe Handling for Small Flocks• Keep nests clean• Gather eggs 3 times/day to keep cleanGathering

• Use unscented, food-grade detergent + rinse water• Keep water temperature between 110°F and 120°FWashing

• Dip in 120°F water and bleach at 100-200 ppm chlorine (1oz bleach per 1 gallon water)Sanitizing

• Discard meat spots, blood spots and cracked egg shellsCandling

• Dry on racks before putting in cartonsDrying

• Store between 33°F and 41°FRefrigerating

• Must be clean• Maintain refrigerationTransporting

Eggs: Safe Handling for Large Flocks (3,000 or more laying hens)• Register with FDA under the Egg Rule• In your facility:

– Buy chicks and young hens only from suppliers who monitor for Salmonella bacteria

– Establish rodent, pest control, and biosecurity measures to prevent spread of bacteria throughout the farm by people and equipment

– Conduct testing in the poultry house for Salmonella

• Refrigerate: Eggs must be refrigerated at 45° F, within 36 hours of when they are laid

• Pasteurization• Have a written egg safety plan to prevent foodborne

illness outbreaks. See FDA’s new egg rule

• Handle all raw poultry carefully to prevent cross-contamination.

• Chill to 40°F or less within a specified time after slaughter. Keep poultry products cold (40°F or below) or frozen (0°F or below) during transport.

• The term ‘fresh’ may only be placed on poultry that has never been below 26°F.

• Raw poultry held at temperature of 0°F or below must be labeled with a “keep frozen” handling statement.

• Raw poultry has a very short refrigerator shelf life and should be frozen or cooked within two days of purchase.

Meat: Safe Handling

• Live baby poultry (chicks, ducklings, gosling and turkey poults) may carry Salmonella

• Bacteria may be in their droppings, feathers, feet, or beaks

• After handling baby poultry: – Wash your hands thoroughly

• After handling any livestock – Wash hands thoroughly & change shoes before

entering a food production or handling area

Live Birds: Safe Handling

Business licensing Which licenses you need depends on:– Whether you are selling

eggs or meat

– Where you plan to sell your product

– The scale of production you are considering

Getting Permission to do Business• County, municipal & Homeowners Association or

Neighborhood/Unincorporated Community Covenants• Business Registration (typically from your state’s Secretary

of State, although some cities & counties also require business registration)

• IRS Employer Identification Number (EIN, if you have employees)

• State taxes (sales tax, income tax, workers’ compensation, unemployment insurance)

• City/County sales tax license• Other business licenses (depending on your sales outlet

and product(s) offered for sale)To check on your state’s tax and licensing requirements: //www.sba.gov/content/learn-about-your-state-and-local-tax-obligations

• Flocks under 3000 laying hens are USDA grade exempt and fall under state law

• Flocks of 3000 and over laying hens require business registration with Food Safety Inspection Service (FSIS) through the FDA

< 3000 > =3000

How Many Hens Do You Plan to Have?

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• State licensing can vary depending on where you plan to sell your product

• Licensing may be easier if you plan to sell direct to consumers from your home or place of production

• However, check with the market or retailer for any licenses or food safety audits they may require

Where Do You Plan to Sell Eggs?

• From place of production?

• Farmers’ market(s)?

• Through retail stores?

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Licensing for Retail & Wholesale Meat Sales

• Must use state or federally inspected slaughter and processing facility (see exemption for custom processing)

To sell packaged poultry direct to

the consumer

• Must use state or federally inspected slaughter and processing facility (see small flock exemption)

• Required: Labeling – i.e., Net Weight using Standard Weights and Measures*

• Optional: Grading

To sell packaged poultry to retail

buyers, wholesale or farmers’ market

*Note that your processor can help guide you through the packaging and labeling process.

Exemptions to USDA slaughter and processing requirements

Sold before slaughter to new

owner

Labeled NOT FOR SALE

Processed for household use

Processed for non-paying guests

Exemption #1 for freezer meats

AND

AND

OR

Exemptions to USDA slaughter and processing requirements

Producer-grower 1,000 bird per year

limit

Producer-grower 20,000 bird per year

limit

On-farm sales Retail sales

Exemption #2 for poultry, but not recognized in all states

FOR FOR

Your County Health Department May Require

• Colorado Dept. of Public Health & Environment Plan Review

• County Health Department Application

• Inspection (possible)

• Estimated fee: $115

• Annual fee, but will be renewed unless revoked

2.

3.

4.

1.

A retail food establishment license for product sales. For example in Colorado:

One More Thing About Meat & Egg Sales…

Many farmers’ markets require vendors to carry their own liability insurance policy

For more info on licensing and regulationscheck with your local Extension office or state Department of Agriculture?

• Zoning is a restriction on the way land can be used

• Zoning regulations may include where you can (or can’t) raise animals

• Zoning may also define the number of birds you raise on your property

Zoning restrictions

County & Municipal Zoning Regulations

• Present your plans early―your local planning and zoning board may have ideas to make your business more viable or to protect your resource base

• Once you are in operation, remember to consult local officials before making any changes to your business (to structures or to products you sell)

County & Municipal Zoning Regulations

• Livestock allowances are usually outlined in land use codes

• Large livestock are typically prohibited in non-agriculturally zoned county or municipal districts

• Many municipalities allow private ownership/production of a small number of fowl, although many exclude roosters and limit the density of confinement

• Your Homeowners’ Association may also have restrictions on poultry

Always verify the number birds

legally allowed on your property

before starting your business

Regulations in Districts Where Commercial Poultry Production is Permitted may Include:

Commercial or agricultural

permit requirements

Permit fee often required

Size and type of animal

structures; location on your

property

Minimum space requirement per

chicken; restrictions on

roosters

Standards for odor, dust, noise

Limited or no allowable

slaughter on premises

Building a Profitable Business Involves

Building Customers

through

Marketing

Safe handling practices

Building Community

through

Good resource & flock

stewardship

Building Business Processes

through

Research & compliance

with regulations

and certifications

that lead to a sustainable business!

Good neighbor relations

Questions?

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Acknowledgments

• Blake Angelo, Colorado State University Extension, Urban Agriculture• Dr. Jack Avens, CSU Food Science and Human Nutrition• Thomas Bass, Montana State University Extension, Livestock

Environment Associate Specialist• Dr. Marisa Bunning, CSU Food Science and Human Nutrition• Emily Lockard, CSU Extension, Livestock• Dea Sloan, CSU Agricultural and Resource Economics• Martha Sullins, CSU Extension, Agriculture and Business Management• Dr. Dawn Thilmany, CSU Agricultural and Resource Economics• Heather Watts, CSU Agricultural and Resource Economics• Wendy White, Colorado Department of Agriculture• David Weiss, CSU Agricultural and Resource Economics

Photo Credits – flickr.comAll photos used under the Creative Commons License

Aprilskiver6351632089

James Bowe7177637421