Audits, Assessments, and Self Evaluations

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Audits, Assessments, and Self Evaluations

• Daryl Olsen, DVM
• AMVC, Audubon, Iowa

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Definitions

• Audit IRS
• Self Evaluation Me
• Assessment My wife

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Audits

• A formal examination of an organizations or
  individuals accounts or financial situation
• A methodical examination and review

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3rd Party Audits

• A systematic evaluation for determination of
  compliance
• Requested or paid for by a third party
• Must be performed by an unbiased third party

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What Auditing Programs are Out There?

• USDA Process Verified Programs (PVP)
• FDA Feed Mill Audits
• Slaughter Plants
• Good Manufacturing Practices
• HACCP
• Environmental
• Animal Handling Welfare
• State Environmental Programs

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How did formal auditing start?

• In 1997, McDonalds was found culpably
  responsible for cruelty to animals in the
  British High Court in London
• On December 11, 1998 McDonalds and Temple
  Grandin meet with PETA to discuss animal welfare
  in the United States

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American Meat Institute (AMI) materials

• 1991 - Recommended Animal Handling Guidelines
  for Meat Packers
• 1997 Management Practices for Handling and
  Stunning (audits)

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AMI Animal Handling and Audit Guide (updated in
2005)

• Written by Dr. Temple Grandin, Ph.D.
• Illustrated detailed guidelines
• Stun animals and maintain equipment
• Movement of non-ambulatory animals
• Measurable, objective criteria for self-audits
• Intended to sustain continuous improvement
• Used by producers to evaluate animal handling

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Animal handling guidelines

• Trucking practices
• Pen space and facility layout
• Livestock handling principles
• Prods and persuaders vocalization
• Stunning
• Religious slaughter

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Who is driving the demand for Welfare Audits?

• Consumer ?
• Producer ?
• Packer ?
• Retailer ?
• Food Service ?
• Activists ?

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PETA Campaigns

• McDonalds Oct. 99 Sept. 00 (11 months)
• Burger King Jan. 01 June 01 (5 months)
• Wendy July 01 Sept. 01 (2 months)
• KFC Jan. 02 - ??? (39 months to date)

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HSUS Dynamic Driver

• Well Funded More than 61 million revenue in
  2002
• Main stream messages Not PETA
• Confused with local animal shelters

Wayne Pacelle, CEO HSUS
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AVMA In The Crosshairs
Animal Rights International Ad Has Anyone
Betrayed More Animals than the American
Veterinary Medical Association? June 21, 2004
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AVMAs Response

• Creates Animal Welfare Division
• One of AVMAs top 5 priorities
• 5 new staff positions
• 2 veterinarians
• Dropped affiliated organizations representation

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Ranger Rick Attacks!

• February 2005 edition of Ranger Rick -
• Did you see Ranger Ricks Adventures in the
  February 2005 issue of Ranger Rick? The gang
  traveled to a hog farmand found big trouble.
  Heres why Years ago, a hog farm had only a few
  hundred hogs, at most. Now, a single "factory
  farm" may have up to a million! People for miles
  around these farms often complain about the
  terrible smell, and some also get sick.

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FMI/NCCR Animal Welfare Goals(Food Marketing
Institute National Council of Chain Restaurants)

• Consistency across the US retail sector
• Implement practical and attainable guidelines
  based on science
• A measurable audit process
• An ongoing advisory council of third party,
  independent animal welfare experts
• Improve communications across the supply chain on
  animal welfare issues

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FMI/NCCR Animal Welfare Methods

• Launched program January,2001
• Organized a committee of animal welfare
  independent expert advisors
• Review guidelines submitted by industry and
  producer organizations
• Suggest revisions and deficiencies
• Approve final guideline document

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SES(Sustainable Environmental Solutions)

• Contracted to manage the auditing program
• AWAP Animal Welfare Audit Program
• National program developed with FMI/NCCR and the
  producer community
• Totally voluntary program
• Generally based on voluntary guidelines developed
  by industry

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SES

• Train and certify auditors
• Manage audit bidding
• Collecting audit fees
• Disburse audit fees to auditors
• Manage audit database
• Update audit tools based on industry guidance
• Program quality control

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The Concerns

• Audits consist of a list of Yes/No questions
• Audit results are posted on secure website
• Customers view results and determine approval of
  the facility
• How many masters do you have to serve?
• Carcasses and products may have to be segregated

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SES Auditing Process

• Producer/Facility sends request for audit to SES
• 550 administration fee
• SES posts request on secure web-site
• Bidding by auditors
• Producer/Facility accepts auditor bid price
• Sends bid price to SES
• SES notifies auditor to proceed
• Auditor contacts producer

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SES Auditing Process (cont.)

• Audit conducted
• Results sent to SES for quality control
• Results reviewed by producer/facility
• Appeal or corrective actions (more )
• SES pays auditor bid price
• Results posted on secure web-site
• Customer requests audit results
• Producer/Facility releases security code to
  customer

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Potential Cost to Producer

• 1,500.00 per site if approval on first visit
• 10,000 sows on 4 sites
• 24 to 48 wean-finish sites
• 42,000.00 to 78,000.00 per year
• Who is going to pay for the expense ?

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At the Packer Level

• Retail Food Service pressure
• Winn-Dixie
• Albertsons
• Safeway
• Kroger
• Wal-Mart
• Applebee's
• Stipulations with regard to AWAP audit
• Most Retail Foodservice just want a
  third-party audit

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Self Evaluation

• Producers making daily decisions to make their
  operation better
• 95/5 rule
• SWAP program (AASV-NPB)
• Probably not going to satisfy the activists

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Assessment

• An evaluation of the situation
• Veterinarians
• Nutritionalists
• Production Analysts
• Genetic companies

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Welfare Audits

• Probably unavoidable
• Will definitely add expense
• Trained auditors are not available
• Who will train ?
• Who will govern ?
• Minimum Standards

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What is PAACO?

• Professional Animal Auditing Certification
  Organization
• Certification body
• Federation of Animal Science Societies (FASS)
• American Registry of Professional Animal
  Scientists (ARPAS)
• American Association of Bovine Practitioners
  (AABP)
• American Association of Swine Veterinarians
  (AASV)
• American Association of Avian Pathologists (AAAP)
• Non-for-Profit organization
• Beneficial to all stakeholders

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Why is Certification Needed?

• Auditors need the following characteristics
• Trained as a professional in their discipline
• Qualified by education experience for each
  species
• Trained by professionals in the field of animal
  welfare
• Certified education, experience and training
  (audit process minimum standards)
• Recourse for inappropriate behavior by an auditor
  (ax to grind)
• Minimum standards for animal handling welfare
  audits

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Thanks for the Opportunity