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Poultry Exemptions Under the Federal Poultry Products Inspection Act. ROBERT D. RAGLAND, D. V. Poultry Exemptions Under the Federal Poultry Products Inspection Act. ROBERT D. RAGLAND, D. V. M. , MPH Senior Staff Officer Risk and Innovations Management Division OPPD, FSIS, USDA 1400 Independence Avenue, S. W. , Rm. 3549 -S Washington, DC 20250 -3700 Office: 202 -205 -0210; Fax: 202 -720 -7027 E-mail: robert. [email protected] usda. gov March 10, 2009 webinar 1

History The 1957 Wholesome Poultry Products Act (Public Law 90 – 492) The 1957 History The 1957 Wholesome Poultry Products Act (Public Law 90 – 492) The 1957 Act mandated federal inspection at businesses that slaughtered and processed poultry products that entered interstate or foreign commerce. 2

Congress amended the Wholesome Poultry Products Act in 1968 Extending the mandate for Federal Congress amended the Wholesome Poultry Products Act in 1968 Extending the mandate for Federal inspection to that slaughter or process poultry for shipment within a State, when the State does not enforce requirements at least equal to the Federal inspection requirements in the all businesses Poultry Products Inspection Act (PPIA). 3

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Intent of Congress It was not the intent of Congress to mandate full Federal Intent of Congress It was not the intent of Congress to mandate full Federal Inspection of the slaughter and processing of an owner’s private holdings of poultry or to mandate full inspection at businesses that slaughter or process a small amount of poultry. 6

Intent of Congress Therefore, Congress in the Act exempts some poultry slaughter and some Intent of Congress Therefore, Congress in the Act exempts some poultry slaughter and some processing businesses from certain requirements of the Act. 7

The PPIA and Federal Regulations Provide for Several Types of Exempt Slaughter and Processing The PPIA and Federal Regulations Provide for Several Types of Exempt Slaughter and Processing Operations/Businesses 1. Slaughter & processing of poultry for personnel use; 2. Custom slaughter & processing-personal use; 3. Producer/Grower no more than 1, 000/calendar yr. ; 4. Producer/Grower no more than 20, 000/calendar yr. ; 5. Producer Grower or Other Person (PGOP) no more than 20, 000/calendar yr. —meals/processing; 6. Small Enterprises slaughtering/cutting up no more than 20, 000/calendar yr. —carcasses and parts no processing; 7. Retail Stores; and 8. Restaurants. Link: Guidance for Determining Whether a Poultry Slaughter or Processing Operation is Exempt from Inspection Requirements of the PPIA 2006 www. fsis. usda. gov/OPPDE/rdad/FSISNotices/Poultry_Slaughter_Exe mption_0406. pdf 8

Poultry Exemptions This presentation is billed as an overview with focus on: • Producer/Grower Poultry Exemptions This presentation is billed as an overview with focus on: • Producer/Grower 1, 000 Bird limit • Producer/Grower 20, 000 Bird limit • Producer/Grower or Other Person 20, 000 • Small Enterprise 20, 000.

A Misconception An exempt operation is exempt from all requirements of the Poultry Products A Misconception An exempt operation is exempt from all requirements of the Poultry Products Inspection Act (PPIA). 10

Exempt From What? Under the Act the term “exempt” means that certain types of Exempt From What? Under the Act the term “exempt” means that certain types of poultry slaughter and processing operations qualify to operate without the benefit of Federal inspection on a daily basis and a grant of Federal inspection is not required. 11

Exempt operations are exempt from continuous bird-by-bird inspection and the presence of FSIS inspectors Exempt operations are exempt from continuous bird-by-bird inspection and the presence of FSIS inspectors during the slaughter of poultry and processing of poultry products. 12

Three Very Basic Requirements (Criteria-Limitations) for Businesses Slaughtering or Processing Poultr for Human Food Three Very Basic Requirements (Criteria-Limitations) for Businesses Slaughtering or Processing Poultr for Human Food Under a PPIA Exemption. 1. The poultry is healthy when slaughtered. 2. The slaughter, processing, and transportation are conducted under sanitary practices and procedures that produce poultry products that are sound, clean, and fit for human food (not adulterated ). 3. The poultry is not misbranded and is identified as exempt product. 13

Another Misconception A business may simultaneously claim or operate under more than one exemption. Another Misconception A business may simultaneously claim or operate under more than one exemption. 14

Which and how many exemptions may a person or business claim when slaughtering or Which and how many exemptions may a person or business claim when slaughtering or processing poultry? • A slaughterer or processor of poultry may not simultaneously operate under more than one exemption during a calendar year. • A person or business may slaughter or process poultry under an exemption if the operation qualifies for the exemption. 15

Forth Criteria for All Businesses Slaughtering or Processing Poultry for Human Food Under a Forth Criteria for All Businesses Slaughtering or Processing Poultry for Human Food Under a PPIA Exemption . 1. The poultry is healthy when slaughtered. 2. Slaughter, processing, and transportation are conducted under sanitary standards, practices, and procedures that produce poultry products that are sound, clean, and fit for human food (not adulterated 3. The poultry is not misbranded. 4. Business operates under only one exemption in a calendar year. 16

A 5 th and 6 th Requirements/Limitations for all Businesses Slaughtering or Processing Poultry A 5 th and 6 th Requirements/Limitations for all Businesses Slaughtering or Processing Poultry for Human Food Under a PPIA Exemption 5 th Product cannot bare the Official USDA mark of inspection. 6 th The poultry products are distributed only within the State, Territory, or DC where produced i. e. cannot be distributed across State lines. 17

Six Common Requirements/Limitations Applicable to th Exemptions Presented Today 1. The poultry is healthy Six Common Requirements/Limitations Applicable to th Exemptions Presented Today 1. The poultry is healthy when slaughtered; 2. The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry products tha are sound, clean, and fit for human food (not adulterated); 3. The poultry is not misbranded is identified as exempt product and labeled; 4. The business operates under only 1 exemption during calendar year; 5. Product cannot bear the Official USDA mark o inspection; and 6. Poultry products do not move in inter-state 18 commerce.

Small Enterprise 20, 000 Bird Limit Exemption 19 Small Enterprise 20, 000 Bird Limit Exemption 19

A Small Enterprise Exemption Business Can Be: • a producer/grower who raises, or • A Small Enterprise Exemption Business Can Be: • a producer/grower who raises, or • a business that purchases live poultry that they slaughter and dress, or • a business that purchases inspected poultry or exempted 1, 000 or 20, 000 Producer/Grower dressed poultry. The Small Enterprise can process and sell another persons poultry provided processing is limited to cutting up. 20

Additional Small Enterprise Limitations 7. The business slaughters and dresses or cuts up no Additional Small Enterprise Limitations 7. The business slaughters and dresses or cuts up no more than 20, 000 birds/carcasses in a calendar year under the exemption. 8. The facility used to slaughter or process poultry is not used to slaughter or process another person’s poultry unless the Administrator of FSIS grants an exemption [9 CFR 381. 10 (b)(2)]. 21

Small Enterprise Exemption Notes: • may handle “pass through” inspected product • may purchase, Small Enterprise Exemption Notes: • may handle “pass through” inspected product • may purchase, cutup, and distribute exempt produced under the Producer/Grower Exemptions • may cutup product produced under Federal inspection 22

No restriction on intra-state customers; but product may not be distributed across state lines. No restriction on intra-state customers; but product may not be distributed across state lines. A Small Enterprise Exemption may sell to: • • • Household Consumer Retail Stores (grocery stores) Hotels Restaurants and Similar Institutions Distributors 23

Small Enterprise Exemption Notes: A small enterprise may not purchase, cut up, and distribute Small Enterprise Exemption Notes: A small enterprise may not purchase, cut up, and distribute poultry products produced under as these 2 exemptions which may not sell to a Small Enterprise: a. Retail exemption b. PGOP exemption 24

Small Enterprise Product Labeling Note: Poultry products produced under a Small Enterprise exemption are Small Enterprise Product Labeling Note: Poultry products produced under a Small Enterprise exemption are not misbranded when they bear all of the features of a label for inspected product with the exception that the official inspection legend may not be used. 25

Label requirements for small enterprise exempt product include: 1. 2. 3. 4. 5. 6. Label requirements for small enterprise exempt product include: 1. 2. 3. 4. 5. 6. 7. 8. Name of the product; Ingredients statement; Statement of the quantity of contents in terms of weight or measures; Name and address of manufacturer; Special handling statement; Date of packing; Explanatory statement indicating why the inspection legend is not permitted; for example, the phrase “Small Enterprise Exemption from Inspection” is suggested by FSIS but is not a mandatory requirement. The ”Exempt –PL 90 -492” is sufficient. Safe handling instruction that comply with the requirements of Title 9 CFR 381. 125(b)(2)(ii), 26

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Safe handling instruction that comply with the requirements of Title 9 CFR 381. 125(b)(2)(ii) Safe handling instruction that comply with the requirements of Title 9 CFR 381. 125(b)(2)(ii) “Some food products may contain bacteria that could cause illness if the product is mishandled or cooked improperly. For your protection, follow these safe handling instructions. ” 28

It is not acceptable to use the safe handling statement use on inspected product It is not acceptable to use the safe handling statement use on inspected product 9 CFR 381. 125. (2)(i) “This product was prepared from inspected and passed meat and or poultry. Some food products may contain bacteria that could cause illness if the product is mishandled or cooked improperly. For your protection, follow these safe handling instructions. ” 29

In addition, if the labeling does not bear nutrition or health claims, the nutrition In addition, if the labeling does not bear nutrition or health claims, the nutrition facts feature, as explained in, Title 9 CFR 381. 500 Exemption from nutritional labeling, is optional for poultry products produced by a business eligible for the small enterprise exemption. 30

Small Enterprise Exemption Notes: A small enterprise is not prohibited from selling live poultry Small Enterprise Exemption Notes: A small enterprise is not prohibited from selling live poultry to a customer and then slaughtering, dressing, and cutting up the poultry for the customer. Selling live poultry is not the same as buying or selling poultry products, one of the criteria that prevents a business from claming the Custom Exemption. 31

Producer/Grower or Other Person (PGOP) 20, 000 Bird Limit Exemption 32 Producer/Grower or Other Person (PGOP) 20, 000 Bird Limit Exemption 32

Producer/Grower or Other Person (PGOP) Exemption May be: • a poultry grower who slaughters Producer/Grower or Other Person (PGOP) Exemption May be: • a poultry grower who slaughters and processes poultry that he or she raised for sale, or • a person who purchases live poultry from a grower and then slaughters these poultry and processes such poultry for sale directly to household consumers, restaurants, hotels, and boarding houses to be served in those homes or dining rooms for the preparation of meals sold directly to customers. 33

Restriction on intra-state customers and product may not be distributed across state lines. A Restriction on intra-state customers and product may not be distributed across state lines. A PGOP 20, 000 Limit Exemption may sell to: • Household Consumer • Hotels • Restaurants May NOT sell to Retail Stores or Distributors 34

a. Household Consumer b. Hotels c. Restaurants 35 a. Household Consumer b. Hotels c. Restaurants 35

Producer/Grower or Other Person Exemption Notes: • A business preparing poultry products under the Producer/Grower or Other Person Exemption Notes: • A business preparing poultry products under the PGOP exemption may NOT sell products to: a. retail store or distributor b. Producer/Grower or other PGOP 36

PGOP Exemption Limitations 1. The poultry is healthy when slaughtered; 2. The slaughter and PGOP Exemption Limitations 1. The poultry is healthy when slaughtered; 2. The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry products that are sound, clean, and f for human food (not adulterated); 3. The poultry is not misbranded is identified as exempt product and labeled; 4. The business operates under only 1 exemption during calendar year; 5. Product cannot bear the Official USDA mark of inspection; and 6. Poultry products do not move in inter-state commerc 37

PGOP Exemption Limitations 7. The business slaughters or processes no more than 20, 000 PGOP Exemption Limitations 7. The business slaughters or processes no more than 20, 000 birds/carcasses in a calendar yea under the exemption. 8. The facility used to slaughter or process poult is not used to slaughter or process another person’s poultry unless the Administrator of FSIS grants an exemption [9 CFR 381. 10 (b)(2 9. The PGOP is the sole distributori. e. sale directly to household consumers, restaurants, hotels, and boarding houses for the preparation of meals sold directly to customers. 38

Labeling PGOP Product The shipping containers, when distributed in intrastate commerce, (instead of all Labeling PGOP Product The shipping containers, when distributed in intrastate commerce, (instead of all the required features of a label for inspected product) bear: a. the processor’s name, b. the address, c. the statement, Exempt P. L. 90 -492, and d. safe handling instructions. 39

Producer/Grower – 20, 000 Limit Exemption 40 Producer/Grower – 20, 000 Limit Exemption 40

Producer/Grower – 20, 000 Limit Exemption The producer/grower may slaughters and processes, on his Producer/Grower – 20, 000 Limit Exemption The producer/grower may slaughters and processes, on his or her own premises, no more than 20, 000 poultry, raised by him or her, in a calendar year. The producer/grower only distributes poultry products he or she produced under the Producer/Grower Exemption 41

Producer/Grower 20, 000 Limit Exemption Limitations 1. The poultry is healthy when slaughtered; 2. Producer/Grower 20, 000 Limit Exemption Limitations 1. The poultry is healthy when slaughtered; 2. The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry products that are sound clean, and fit for human food (not adulterated); 3. The poultry is not misbranded is identified as exempt product and label 4. The business operates under only 1 exemption during calendar year; 5. Product cannot bear the Official USDA mark of inspection; and 6. Poultry products do not move in inter-state commerce. 7. The business slaughters and dresses or cuts up no more than 20, 000 birds/carcasses in a calendar year under the exemption. 8. The facility used to slaughter or process poultry is not used to slaughte or process another person’s poultry unless the Administrator of FSIS grants an exemption [9 CFR 381. 10 (b)(2) ]. 42

Labeling Producer/Grower – 20, 000 Limit Exemption The shipping containers, when distributed in intrastate Labeling Producer/Grower – 20, 000 Limit Exemption The shipping containers, when distributed in intrastate commerce, (instead of all the required features of a label for inspected product) bear: a. the processor’s name, b. the address, c. the statement, Exempt P. L. 90 -492, and d. safe handling instructions. 43

Producer/Grower – 1, 000 Limit Exemption PPIA A person may slaughter and process on Producer/Grower – 1, 000 Limit Exemption PPIA A person may slaughter and process on his or her premises poultry that he or she raised and they may distribute such poultry without mandatory inspection to customers in the State where slaughtered and processes. 44

Producer/Grower 1, 000 Exemption Limitations 1. The poultry is healthy when slaughtered; 2. The Producer/Grower 1, 000 Exemption Limitations 1. The poultry is healthy when slaughtered; 2. The slaughter and processing are conducted under sanitary standards, practices, and procedures that produce poultry products tha are sound, clean, and fit for human food (not adulterated); 3. The poultry is not misbranded is identified as exempt product and labeled; 4. The business operates under only 1 exemption during calendar year; 5. Product cannot bear the Official USDA mark o inspection; and 6. Poultry products do not move in inter-state commerce. 45

Labeling Producer/Grower – 1, 000 Limit Exemption The shipping containers, when distributed in intrastate Labeling Producer/Grower – 1, 000 Limit Exemption The shipping containers, when distributed in intrastate commerce, (instead of all the required features of a label for inspected product) bear: a. the processor’s name, b. the address, and c. the statement, Exempt P. L. 90 -492. Safe Handling Instructions FSIS expects the 1, 000 limit poultry sold in commerce to bear safe handing instructions. 46

Label/Identifying Items Label/Identifying Items