Maryland Poultry Industry: A Sustainable Future

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Maryland Poultry Industry A Sustainable Future

• Maryland Economic Development Association
• June 3, 2008
• Cambridge, Maryland

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Source MD Department of Agriculture 2004 Cash
Receipts
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• 15,000 employees
• 386 million payroll, excluding benefits

• 70 million annual capital improvements

• 152 million packaging and other processing
  supplies

Source DPI 2007
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Perdue in Maryland

• 1,900 associates
• 78 million payroll
• 350 contract producers
• 4,225 grain producers
• 29 million in producer payments
• 109 million in local grain purchases
• 8.5 million in taxes
• 500,000 in charitable donations

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Total Maryland impact845 million
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• 1,933 independent poultry producers
• 181 million in contract-producer payments

Source DPI 2007
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• 687 million annual feed bill

• 77 million bushels of corn used for feed
• 30 million bushels of soybeans used for feed

Source DPI 2007
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• Loss of farmland, decline in farmers

• Grain deficit

• Competitive disadvantage

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Source DPI 2007
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Disappearing Farmland
Source MD Ag Statistics Summary 2004
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Source DPI and Department of Agriculture
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Average annual disadvantage of .75/lb. or 25
million for DMV portion of Mid-Atlantic Region
from 2003 to 2005.
Source Agri Stats
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Trends and Drivers Marylands Poultry Industry

• Urban sprawl
• Input costs (energy, freight, corn)
• Lack of immigration reform
• Whats on the horizon?
• Chicken imports from China, Brazil, etc.
• Regulatory pressures

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Corn Ethanol Plants
Average Number of Size
(mmgy) Plants In Production 58 111
Under Construction 74 94 Proposed
87 207
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At Perdue, quality is the measure of our
character. Our commitment to quality goes beyond
products and service to include our leadership in
food safety, animal welfare and environmental
stewardship.
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Perdue and the Environment

• 2000 Phytase to reduce phosphorus in poultry
  litter
• 2001 Perdue AgriRecycle litter processing
  facility (13 million initial investment)
• 2004 P.I.N.E. Project
• 2006 Clean Bays Initiative agreement with EPA
• 2007 Environmental Stewardship Initiative

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Perdue AgriRecycle
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Perdue AgriRecycle

• First and still only large-scale alternative
  use for surplus poultry litter
• Largest litter recycling operation in the world
• Since 2003, 195,800 tons of litter removed from
  Delmarva watersheds
• 8.1 million pounds of nitrogen
• 4.5 million pounds of phosphorus
• 6.7 million pounds of potassium

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Perdue AgriRecycle Litter Recycling Plant
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P.I.N.E. Project

• Cooperative agreement between Center for Inland
  Bays and the poultry industry
• Focus on the Eastern Shores forgotten bay
  Little Assawoman Bay
• Cooperative efforts to accelerate compliance and
  nutrient management certification
• A model watershed concept
• Environmental survey of 25 of 26 contract poultry
  growers in the watershed

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Contracted poultry farms as of December 2001
6 - Milford 14-Greenwood 3-Lincoln 6-Bridgeville
3-Georgetown 24-Seaford 4 - Milton 41 - Laurel 10
- Millsboro 33 - Dagsboro 3-Gumboro 2-Selbyville 3
8-Frankford 8 - Ocean View 17 -
Delmar _________________ 212 Delaware farms
7-Preston 3-Federalsburg 5-Sharpton 1-Rhodesdale 2
-Trappe 4-Hebron 10-Bishopville 2-Willards 5-Pitts
ville 12-Parsonsburg 10-Salisbury 4-Powellville 4-
Tyaskin 2-Bivalve 4-Westover 6-Pocomoke 2-Stockton
3-Crisfield ________________ 86 Maryland farms
Town
Red Circle 10 mile radius Blue Circle 20 mile
radius
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Model Farm Partnership

• Dan Iris Moore, contract growers for Perdue
• Environmentally sensitive and close to new golf
  course development

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The Moore Farm

• Concrete pads at ends of houses reduces run-off
• Wind diverters on fans reduce odor and airborne
  particulate matter
• Vegetative buffers reduce dust plume
• Tree buffer provides visual and auditory buffer
• New truck route to alleviate related dust and
  congestion
• Paid for by Perdue and Freeman Communities
  (Bayside developer)

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Clean Bays Initiative

• First-of-its kind historic agreement with EPA
• Focuses on 17 farms in Maryland and Delaware with
  200,000 birds or more
• Perdue provides training, assistance,
  environmental assessments to producers to
  improvement implementation of BMPs and litter
  management to ensure compliance and protect the
  Chesapeake Bay and coastal bays
• A different model for ensuring compliance

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Environmental Sustainability at Perdue

• Environmental Sustainability initiative pulls all
  of our efforts together
• Reduce, reuse, recycle
• Research and innovation
• Community outreach

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Reduce, Reuse, Recycle

• Shore Water Conservation initiative resulted in
  average reduction of 2 million gallons of water
  per week per plant
• Cold cathode lighting in chicken houses provides
  an 80 reduction in energy use
• Milford and Georgetown energy saving pilots will
  save eliminate 3.98 kWh, which is equivalent to
  6.5 million pounds of CO2

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Innovation

• Perdue BioEnergy, LLC, is focused on
  opportunities in bio-energy
• Perdue Grain Oilseed is a key supplier to
  biodiesel customers
• Exploring alternative energy sources, including
  wood chips, to replace fuel oil in boilers
• Salisbury garage used 883,000 gallons of
  biodiesel this year

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Community Outreach

• MPT Chesapeake Bay Week volunteer-a-thon
• Pledged 500 volunteer hours to environmental
  groups
• Project Clean Stream volunteer clean up

• Continued and expanding partnerships with
  environmental groups

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