Delmarvas Poultry Industry An Environmental Update

1
Delmarvas Poultry IndustryAn Environmental
Update

• Presentation to the
• Maryland General Assembly Agricultural
  Stewardship Commission
• September 13, 2005

2
Economic Importance2004 Maryland Data

• 33 of Maryland cash farm income
• 284,600,000 broilers produced, 7th in the USA
• 1,366,100,000 pounds, 9th in USA
• 628,406,000 value of production, 8th in USA

3
Economic ImportanceNational Rankings of
Maryland Counties

• Wicomico 18
• Worcester 23
• Somerset 24
• Caroline 55
• Dorchester 94

4
Economic Importance2004 Maryland Data

• Approximately 2,700 chicken houses
• Approximately 1,000 Maryland growers
• Approximately 5,000 poultry company employees
  working in Maryland

5
Economic Importance2004 Delmarva Data

• Three legged stool poultry growers, grain
  farmers, poultry companies
• Most local crops used by chicken industry

6
Economic Importance2004 Delmarva Data

• 63 million poultry company capital improvements
• 85 million in grower capital improvements

7
Economic Importance2004 Delmarva Data

• 159 million grower contract pay
• 337 million companies payrolls
• 617 million of feed purchases
• 1.7 billion wholesale value Each job in poultry
  processing industry creates 7.2 jobs elsewhere

8
Number of Broiler Chickens Produced on Delmarva

• Source Delmarva Poultry Industry, Inc.

9
Broiler Chicken Production In Delaware,
Maryland, and Virginia
Number of Birds
Source United States Department of
Agriculture Prepared by Delmarva Poultry
Industry, Inc.
10
Environmental Issues

• 21 of all bay nitrogen comes from all sources in
  Maryland
• 37 of Maryland nitrogen from agriculture (about
  half from animals)
• 20 of all bay phosphorus comes from all sources
  in Maryland
• 42 of Maryland phosphorus from agriculture
  (about half from animals)
• Source EPA

11
Environmental Issues

• Susquehanna, Potomac, and James rivers
  contributed about 95 of the annual nitrogen load
  and 87 of the annual phosphorus load from the 9
  major rivers draining to Chesapeake Bay from 1990
  to 1998
• Marylands broiler chicken industry is not
  along these rivers
• Source USGS Report 99-4238

12
Environmental IssuesHow Much Manure is There?

• 1,000 chickens in a 7 week life cycle will
  produce about 1 ton of excreta
• 25,000 bird house will produce 25 tons
• Manure excreted by the birds does not mean it is
  available
• Extended time between cleanouts means less manure
  is removed annually

13
Environmental SuccessesPhytase

• Feed additive that allows birds to better use
  phosphorus in the corn so less comes out the rear
  end
• Used throughout Delmarva
• 30 - 50 reduction in phosphorus excreta using
  phytase

14
Environmental SuccessesPoultry Manure Transport

• Funded by poultry companies and state
• FY 1999            1,897 tons
• FY 2000            13,366
• FY 2001            20,477
• FY 2002            43,144
• FY 2003            27,707
• FY 2004            37,674 
• FY 2005 24,080
• In 2005, 80 went to alternative uses

15
Environmental SuccessesPerdue AgriRecycle LLC

• Began operation in Delaware in 2001
• Takes manure from growers throughout Delmarva at
  no cost to growers. 40 from Maryland
• Produced 39,000 tons of finished product last
  year. 52,000 expected this year
• 103,000 tons processed since opening

16
Environmental SuccessesMaryland MOU

• Educational and technical assistance to help
  growers comply with State and Federal water
  quality laws
• Research to develop new science-based
  environmental practices and alternative uses for
  manure
• Collaboration on environmental and agricultural
  management issues.

17
Environmental SuccessesNutrient Management Plans

• Plans required by Maryland law
• Federal CAFO rule being adapted and adopted in
  Maryland

18
Environmental Needs

• Manure Transport long term shift from land
  application to alternative use transports should
  occur
• Use transport money to help growers pay tipping
  fees for alternative use companies that may
  charge a tipping fee
• 750,000 in state general fund money
• Cost share for cover crops

19
Environmental Needs

• State purchases of manure based products
• Helps create consumer confidence
• Allows governments to be part of the solution
• With forestry use of manure products, there is
  quicker growth
• of trees

20
Environmental Needs

• State assistance in developing alternative use
  facilities such as energy production at ECI in
  Somerset County
• Bio-energy projects
• Use chicken manure in mine reclamation in Western
  Maryland
• Continue and expand MACS program

21
Environmental Needs

• Restore state dollars for farmland preservation
  programs
• Helps farmers compete with developers
• Helps young farmers get into business
• Keeps land available for manure application
• Helps reduce pollution increases
• Keeps other government costs down

22
Environmental Needs

• Trees around chicken houses for nutrient uptake
  and air quality
• Tax incentives for equipment to incorporate
  litter in no-till farm situations
• Modifications to cost-share specifications to
  allow lower cost units to be built

23
Environmental Needs

• Fund research to develop feeds that reduce the
  amount of ammonia in chicken excreta
• Realistic expectations on solving problems it
  took decades to create the problem and will take
  years to solve the problem