1. Sustaining our Future and Customer Focus Egg Farmers of Canada

2. 2 Overview Snapshot of the Canadian egg industry Supply Management Canadian Policy Long Term Sustainability and Customer Focus

3. A snapshot of the Canadian egg industry 3

4. Canadian snapshot Number of regulated egg producers in Canada: 1,016 Production in all 10 provinces and the Northwest Territories Average number of hens per producer: 20,241 There are approximately 21.5 million birds in production Many egg farms owned and operated by families who have been in the business for generations About 20% are first-generation farmers The industry contributes $1.4 billion annually to the Canadian economy Canadian egg industry employs 16,800 peoplemany of them through much needed rural jobs 4

5. Supply Management and Canadian Policy 5

6. 6 Supply Management Uniquely Canadian marketing system Matches production with consumer demand Stable income for farmers, stable prices for consumers, suppliers, retailers and other industries 3 Pillars: Import Controls Does not block imports Guaranteed volume with no tariffs Production Planning Quota set annually based on market analysis Flexible and reduces over/under-production Producer Pricing Price farmer receives based on cost of production Creates incentive for efficiency Retailers set consumer price

7. Canadian policy In Canada, Canadian egg farmers work together through Egg Farmers of Canadaa collective representing their interests Egg farmers receive no government subsidies Rather they are supported by government legislation that ensures self- sufficiency It allows individual farmers to collaborate at the national level to achieve much more together than they can alone Social responsibility is a key aspect of our policy – Achieved by promoting the public understanding and appreciation for egg farmers contribution to economic development, community vitality, and environmental stewardship Egg farmers are in a very strong position and a unique opportunity to ensure and work towards a sustainable egg industry into the future 7

8. Long Term Sustainability and Customer Focus 8

9. 9 Sustainability Projects/Programs The egg farmers of Canada see the long term sustainability and growth of their industry from a holistic perspective, which means a multifaceted approach is taken: Being active in international affairs Sponsoring efficiencies through research and development Promoting food safety and animal welfare with our on farm and traceability programmes Forward looking by focusing on: Environmental and social management Total quality management

10. Sustainability Canadian Egg Farmers Internationally 10 Egg Farmers of Canada are part of the supply management group SM5 that closely monitors international issues Egg Farmers of Canada – A key player in the International Egg Commission MOUs with OIE and FAO Member of the Consumer Goods Forum Actively involved with Global Food Safety Initiative (GFSI) and other such initiatives Egg Farmers of Canada are able to tie in our national objectives and strategies with what is happening internationally, and are acutely aware of the challenges the livestock sector will be facing in the future

11. Sustainability Research and Development Canadian egg farmers fund projects on a range of topics: Poultry health and welfare Human nutrition Environmental issues Economics Egg Farmers of Canada is supporting experts by providing multi-year funding to their research – Research Chairs This wide ranging research is promoting efficiency in the nutritional value of eggs as well as production output and its effects 11

12. Sustainability On Farm and Traceability Start Clean Stay Clean (SCSC) Program HACCP based on farm food safety program Animal Care Program Based on the Canadian Code of Practice Canadian Egg Industry Traceability System (CEITS) Benefits: Improved Food Safety Verification of production practices Improved Animal Health/Disease response Greater Supply Chain Control and Visibility 12

13. Sustainability (underway) Environmental & Social Life Cycle Assessment EFC implementing a Life Cycle Assessment Project on the whole supply chain. There is no legislation or outside pressure to do carry out this initiative – It is just the right thing to do. Guiding principle for EFC is that communities are served and supported through the social, economic, and environmental actions of egg farmers. Environmental issues are generally a growing concern to consumers in Canada and internationally The Egg industry LCA boundary is the complete supply chain: laying hen breeder flock to table eggs arriving at retail stores further processed eggs Spent hen disposal By housing systems 13

14. Sustainability (underway) Environmental & Social Life Cycle Assessment Environmental LCA Generate a national baseline amount of CO 2 equivalent, water and land usage that goes into producing 1kg of eggs Utilize internationally recognized ISO 14040 and 14044 standards for LCA Identify environmental red flags for development of mitigation strategies to reduce those potential impacts Next Steps – In due course develop an environmental assessment programme Social LCA Following United Nations Environmental Program SLCA Guidelines Generate a national baseline for social factors and societal impacts involved in egg production Identify social red flags for development of mitigation strategies to reduce those potential impacts Next Steps – In due course develop an assessment programme 14

15. Sustainability (underway) National Quality Code Project National Quality Code (NQC) Project aims to develop a household national identity for Canadian eggs Concept: To display the National Quality Code (NQC) symbol, eggs would have to be produced (verified) under the auspices of all the following EFC Programs: Start Clean Stay Clean (SCSC) Program (on farm food safety) Animal Care Program CEITS – Meet the traceability standard Environmental Assessment (future requirement as project ongoing) Pilot projects soon underway in British Columbia and Quebec Industry stakeholders are being engaged EFC applying for developmental funding from the Canadian Government under Growing Forward 2 15

16. Conclusions Egg Farmers of Canada is committed to the efficient utilisation of our natural resources in a way that conserves them for future generations Supply management provides EFC with a social license to initiate long term programs that benefit the consumer and all the industry stakeholders, whilst meeting our obligations on Social Responsibility Not only are Canadian egg farmers talking up commitment they are doing it 16

17. THANK YOU! Any questions? 17