Broiler Management Guide

Peterson Farms Broiler Management Guide Continuing Our Commitment to Excellence

Peterson Farms P.O. Box 248 Decatur, AR 72722 Contract Growers, The intent of this Broiler Management Guide is to provide you with accurate and up to date information to help you produce the best possible bird. Following these guidelines should help improve your performance and income. Your success will also help Peterson Farms continue to be a successful and competitive company. At Peterson we feel that what is good for you is also good for the company and vice-versa. Therefore, anything that we can do to help you grow better broilers will not only increase your income but will also help the company continue to be successful. We all know that when you are dealing with a live animal that there is always going to be some variation in results, but your care and hard work contribute greatly to the performance of the birds. There is simply no equipment that can replace a good, observant, and conscientious grower when it comes to producing high quality, efficient broilers. Since we are working with a live and variable product, following the suggestions in this guide cannot guarantee a certain level of performance. If they are followed carefully, along with the grower being present in the houses several times during the day, the result should be a very strong growing performance year in and year out. If there are parts of this guide that are not completely clear to you please contact your service representative or call the Broiler Department at 1-800-752-3211. Working together as a team will help assure that your operation and Peterson Farms will continue to be successful and profitable for years to come. Thanks for your hard work. Dan Henderson President

Table Of Contents BROILER GROWING CYCLE Pre-placement Check List..................... 1 Chick Placement Check List.................. 1 Chick Delivery............................. 2 First Seven Days........................... 2 8-14 Days................................ 2 Preparing for Full House Growout.............. 3 Steps for Turning Chicks into Full House......... 3 3-7 Weeks Growout........................ 3 Preparing for Live Haul...................... 4 Post Sell.................................. 4 BROILER HOUSE MANAGEMENT Importance of Management................... 5 Watering.................................. 5 Feeding.................................. 6 Feed Delivery/Pick Up....................... 6 Temperature............................... 7 Brooder Stoves............................. 7 Ventilation................................ 8 Night Ventilation........................... 8 Curtains.................................. 8 Lighting Programs.......................... 9 Lights.................................... 9 The Partition.............................. 9 Disease Control............................ 10 Culling................................... 10 Dead Bird Disposal......................... 11 House Clean Out........................... 11 Settlements................................ 12 Broiler Straight Run Performance Chart......... 12 SETTLEMENT INFORMATION Sample Settlement Sheet..................... 13 Definitions of Variables..................14 & 15 MISCELLANEOUS INFORMATION Hot Weather Tips........................... 16 Trouble Shooting........................... 17 Broiler House Requirements.................. 18 Glossary Of Terms.......................... 19

BROILER GROWING CYCLE Pre-Placement Check List Remove any birds left in house. Remove all wet or caked litter. You should flush the water lines with approved water disinfectant 2 to 3 days before the chicks arrive, using high pressure in lines to wash debris and stagnant water from the lines. 24 Hours Before Chicks Arrive Trench preparation for flood feeding is very important! The trench must be easily accessible to baby chicks. The depth of the trench should be set up so chicks can easily get into and out of the trench. Trench Preparation Put down 5 or 6 feet wide feed paper in trench so the trench can be wide enough to keep proper depth and reduce feed wastage. Flush water lines Another time with high pressure. This time use clear water, and allow water to warm to house temperature (90 o F.) Seventy percent of the chicks body is water, making it the most important nutrient available! You will need to high pressure flush water lines 3 to 4 more times during growout. Begin pre-brooding In order to reach the desired floor temperature (90 o F) before chicks arrive, you should start heating the brood chamber 24 hours prior to arrival. Chicks are hatched at approximately 98 o and their body temperature is 102 o to 105 o so they must be placed in a similar environment or they will chill and not perform to their full potential. Pre-ventilation Ammonia is released from the litter as it heats up, therefore you will need to exhaust the ammonia from the brood chamber. This can be done by running the sidewall exhaust fans with a timer long enough to lower ammonia level to 20 ppm or less. When the ammonia level is above 20 ppm it will burn eyes slightly and have an obvious odor. If concerned about the level of ammonia, have it checked by your service person. Chick Placement Check List The following should be in place when chicks arrive from the hatchery. Floor temperature should be 90 o F. Set curtain machine and fan thermostat (see the example in the ventilation section for setting.) Water lines flushed and water preheated to house temperature. Sweep water lines with broom 2 to 3 hours before chicks arrive. (This will put a droplet of water on the nipple and help the chicks find the water.) Ammonia at 20 ppm or less and fans and timers in place. Flood trench with feed ready for baby chicks. Feed Ready for Baby Chicks Center curtain and divider partition in place to keep chicks in the brood chamber. Adjust water lines after chicks are dumped so the nipple strikes the baby chick about the middle of the back. 1

BROILER GROWING CYCLE Chick Delivery You will be notified several days in advance of the day the chicks will be delivered. It is very important that the Chick Placement Check List has been completed. The grower should always be present when the baby chicks arrive. If the chicks are not delivered in good condition, you should immediately inform your service person. Always make sure the proper entrances are provided for delivery. Biosecurity should always be used by the chick delivery crew. First Seven Days ü Daily Checklist for First 7 Days Check air temperature. Check ammonia level. Check water lines for dripping nipples. Check division curtain for tightness making sure no chicks are behind it. Look for culls and remove. Pick up dead birds, record and dispose. The first 24 hours are very important! You should keep a close watch on the chicks. Daily removal and recording of dead birds is very important during the first seven days. On day three a second feeding on the paper may be necessary. To do this start the feed line, closing off the feed slides as the trench fills up. Your feed line breaker and your fill system breaker should be turned off, until the chicks are ready to be fed automatically. Keep water lines at the chicks eye level. Raise the lines on days three and seven. Spot feeding may be necessary on day seven if flood paper has not been destroyed. 8-14 Days Daily Checklist for Days 8-14 Check water line height and make sure it is level. Clean üwater line and check for leaks. Check for ammonia, stale air, and drafts on the birds. Check for worn belts on fans. Clean fan shutters. Check the litter for dampness and for too much dust. Pick up dead birds, record and dispose. Look for darkling beetle population. On day eight you should raise the feed lines to the appropriate level. Also on day eight, on the growout end of your house you should high pressure flush the water lines with disinfectant and allow to set 24 to 48 hours. This will help to kill bacteria in the lines. During cold weather you will need to preheat and pre-ventilate the growout end. By day nine chicks will be using the control pan and can be automatically fed. Notes: 2

BROILER GROWING CYCLE 8-14 Days Continued On day ten or 24 hours before turning chicks to full house, you should do the following steps in the growout end. Preparing for Full House Growout 1. High pressure flush water lines with clear water to remove undesirables. 2. Check for excess ammonia (should be 20 ppm or less.) 3. Check for proper temperature. 4. Run feed in the lines to control pan. Steps for Turning Chicks into Full House Approximately Day Eleven 1. You should turn chicks into the full house as early in the morning as possible. 2. Raise middle curtain. 3. Remove divider partition. 4. Turn on breaker switch for lights and start lighting program. About day twelve it will be time again to adjust the water and feed lines. Around day thirteen or fourteen half-house brooding should be complete and chicks should be evenly spread in entire house. 3-7 Weeks Growout Daily Check List for Weeks 3-7 Check water line height and make sure it is level. Clean üwater line and check for leaks. Check for ammonia, stale air, and drafts on the birds. Check for worn belts on fans. Check the litter for dampness and for too much dust. Pick up dead birds, record and dispose. Look for darkling beetle population. Make sure birds have enough oxygen. Look for tears in the curtains. Suggestions for Management Temperature Always maintain correct house temperature (see the temperature chart.) Feed Line Always keep feed line adjusted to the average bird. The top of the feed pan should be even with the middle of the average bird s back. Feed Pan Feed should be approximately 3/4 of an inch deep (to accomplish this, the feed saver should be placed 3/4 of an inch from the bottom of the pan.) Water Line Keep water line adjusted to the eye level of the birds during growout. Lighting The hours of darkness may need to be increased during this time to slow growth and reduce heart attacks (see Lighting Program). Ventilation Continued increasing ventilation will be required as birds grow bigger, use more oxygen, and litter becomes moist. Culling Due to the rapid growth some birds fall behind and need to be removed. 3

BROILER GROWING CYCLE Preparing for Live Haul It is very important to remove all crippled, blind, cross-beaked, and downed birds. Usually these birds are not average weight and are condemned at the plant. Allow the feed pans to empty out 5 hours before the scheduled catch time. If feed is still present in the feeders 5 hours prior to catch, you should go ahead and raise the feed lines. If feed lines are empty, raise them 1 hour prior to the scheduled catch. Raise water lines when the catch crew arrives on your farm. All thermostats, stoves, electrical wires and fans not in use should be raised to catch position prior to the arrival of the catch crew. Remove all dead birds before the catch crew arrives. Open end-of-house doors when catch crew arrives, and assist crew foreman with fans, foggers and lights (for nighttime catch.) During hot weather, growers should provide a hose bib at the catch end of the house to wet down birds and keep them alive. Post Sell Immediately after flock is sold remove any dead birds. Remove all wet or caked litter. Clean fans and fan louvers. On belt driven fans, check belts for tightness and replace worn belts. Put out bait for rodents and if insect control is needed, this is a good time to spray walls and floors. This is a good time to blow out your brooder stoves if you have them. Crystal Lake Chicken Chickens During Live Haul 4

BROILER HOUSE MANAGEMENT Importance of Management Management is the single most important influence that the grower has on producing a profitable, quality flock of broilers. In this section of the management guide, many management topics are presented for use as a general guideline. It is important to realize that many broiler houses are different, therefore some farms may require modified management programs from those discussed in this guide. Always consult with your field representative if you have any questions about which management programs are the most appropriate for your farm. The importance of management cannot be over stressed! All of the effort that a producer will put into the pre-placement is important. However, it is also very important to be there when the chicks arrive, so you can fine tune the water line height, adjust the feed pan, and check the air quality and temperature. Good management in these areas will help determine and increase your profits at sell day. During growout there must also be constant monitoring of the areas listed above to insure growth and feed conversion with proper weight gain. The more time you spend in the broiler house the more opportunities you will have to see improved profits. Watering Fresh clean water should be available at all times. A bird will consume 2 to 3 times more water than feed. Daily Water Consumption Table Gallons per 1,000 Birds Age in Weeks Gallons of Water 1st Week 8 2nd Week 16 3rd Week 24 4th Week 32 5th Week 41 6th Week 49 7th Week 57 8th Week 62 Your watering system should be kepted clean and sanitized at all times. High pressure flush water lines about 4 to 5 times during each flock and 1 time before they arrive. Always have waterers down and at room temperature on the first day. Always keep waterers adjusted to the appropriate height for the birds. For nipple drinkers, the nipple should be about eye level of the average bird (consult your service person for other adjustments according to your type of watering system.) 5

BROILER HOUSE MANAGEMENT Feeding Goal Addressing factors that affect feed consumption. Daily Feed Consumption Table Consumption by 1000 Birds Per Day at 70 o Degrees F. Age Pounds 1st Week 41.4 2nd Week 85.7 3rd Week 132.8 4th Week 208.5 5th Week 277.1 6th Week 318.5 7th Week 335.0 Water Consumption Good water will always directly affect feed consumption and thus improve feed conversion. Ventilation Cold drafts on the chicks will cause chicks to huddle and not consume feed for extended periods of time. The only way they will consume feed when they are cold is if they are extremely hungry. Disease Chicks with intestinal or respiratory problems will not consume desired amounts of feed. Feed Delivery/Pick Up Feed Bin Inventory The inventory of your feed bin should be called in on Mondays and Thursdays between 8:00 a.m. and 5:00 p.m. Locally the number is (501) 752-5440 and long distance is 1-800-752-9511. An accurate inventory is essential for the proper delivery amount. All deliveries (except your first) will be determined by calling in your inventory. Feed Pickup Any feed remaining on the farm after your birds are sold, will be picked up by Peterson Farms and credited to your flock feed cost. (501) 752-5440 1-800-752-9511 For Local Calls Long Distance Calls Notes: Mechanical Feeders Two tips to prevent feed wastage: 1) Keep the mechanical feeders running properly. 2) Keep the feeder height adjusted to an appropriate height as the broilers grow. Broiler Feed Formulation Broiler Broiler Broiler Minerals Starter Grower Finisher Protein 21% 19.5% 18% ME kcal/lb 1440 1470 1500 Calcium 0.9% 0.85% 0.8% Total Phos 0.68% 0.62% 0.55% Sodium 0.2% 0.2% 0.2% Arginine 1.35% 1.2% 1.05% Lysine 1.15% 1.05% 0.9% Methionine 0.55% 0.5% 0.4% Meth+Cys 0.89% 0.84% 0.78% Trytophan 0.24% 0.2% 0.17% 6

BROILER HOUSE MANAGEMENT Temperature Temperature has more to do with the feed conversion of your flock than any other area controlled by the grower. Temperature affects Feed Conversion From Three Weeks of Age to Market Temperature Feed Conversion 50 Degrees F 2.2 55 Degrees F 2.15 60 Degrees F 2.1 65 Degrees F 2.05 70 Degrees F 2 Cold chicks will consume feed to maintain body temperature before they convert feed to meat or muscle. This causes weight gain to be minimal and hurts feed conversion. It is also true that a chicken that is too hot will not eat. The key is to maintain the temperature that broilers like best. Watch your birds! If they are pulled to the middle of the house, they are probably to cold. If they are panting, they are probably to hot. For proper guidelines refer to the temperature table. Chicks that are at the Correct Temperature Temperature for Broilers Age Temperature 1 to 3 Days 90 o Degrees 4 to 7 Days 85 o -90 o Degrees 2nd Week 80 o -85 o Degrees 3rd Week 75 o -80 o Degrees 4th Week 70 o -75 o Degrees 5th to 7th Week 70 o Degrees Brooder Stoves When half-house brooding, the houses air temperature is significantly more important than that measured under the brooder stoves canopy. About 30,000 BTU s should be available per 1000 chicks in the brooding end. Stoves should be at least three feet above floor level to provide a larger circle for feeding and watering equipment. This additional height in stoves is also critical to maintain sufficient house temperature. Raise stoves to the ceiling when not in use. Chicks that are to Hot Chicks that are to Cold 7

BROILER HOUSE MANAGEMENT Ventilation Goal The removal of undesirable air and moisture from the poultry house. The following is a list of items that need to be incorporated for good ventilation: The Producer The producer and his or her presence in the broiler house will determine good ventilation. Curtain Machine The curtain machine is your most important source of ventilation and should be set at the desired house temperature. Exhaust Fans Exhaust fans are the second most important source of ventilation and should be set at 5 O F above the target house temperature according to the age of the chicks. Timer Set the timer on fans to a length of time long enough to exhaust ammonia and moisture. This will depend on density and age of the birds. Stir Fans Run stir fans to conserve energy and give a more uniform house temperature. Example Situation: The desired temperature is 79 O F at 21 days of age in February. 1. Set curtain machine thermostat at 79 O F. 2. Set exhaust fan at 84 O F. ( Which is 5 O above the desired house temperature.) Night Ventilation Warning Do not rely completely on fans and thermostats for night ventilation. Leave one side curtain partially open from 10 days to slaughter. Curtain Ventilation Age Curtain Setting 10 Days to 4 Weeks 1 inch down 4 to 5 Weeks 2 inches down 5 to 7 Weeks 4 inches down Curtains The curtain machine is your most important source of ventilation (see night ventilation for proper curtain settings.) The curtain machine should always be set at the desired house temperature (see the Temperature Guide for appropriate setting.) Your material should be winched and maintained at all times. If possible, leave curtains down when house is empty. Curtains must be equipped with one automatic curtain drop on the south side. 3. Set automatic curtain drop in working position. If while using this procedure the air becomes stale, continue to Step 4. 4. Set the timer fans to run enough minutes to give good quality air. 8

BROILER HOUSE MANAGEMENT Lighting Programs Goal Use lights to increase the total pounds per square foot. When the lights are turned off for extended periods of time it allows the chicks to rest and digest the feed they have consumed. Continual gorging of feed will not allow the chicks to absorb all the nutrients available in the feed. One hour of darkness before daybreak and one hour after dusk can be very beneficial. It will allow chicks to bed down and help prevent pile-ups if nighttime lights go out unexpectedly. Lighting Programs will continue to change as the size and age at which birds are sold changes. Communication on this and other issues will be helpful to keep you the producer updated. Use all artificial lights during first 24 hours. Use full lights final week to reduce contamination. Lights The Partition The partition is put in place to provide the baby chicks with 50% of the floor space. Solid Insulated Partitions This is the most recommend kind of partition. Non-Breathable Partition This is also an acceptable kind, provided it is neat and well kept. When to Remove the Partition When crowding birds into a half-house, we initially interfere with the chicks potential. It is imperative that we offset this crowding with improved management. Chicks should remain in the half house for no more than 14 days. (Between March 15 and September 15, chicks should only remain in the half-house for 10 days.) Use two lines of lights with drops twenty feet apart on each line. Stagger drops on each line. Nine-watt florescent bulbs are recommended. Correct Partition 9

BROILER HOUSE MANAGEMENT Disease Control Chicks placed on your farm will have been vaccinated at the hatchery for specific challenges that may occur during growout. These vaccinations will help prevent disease during growout. Factors that Help in Disease Control: 1. Maintaining proper house temperature. 2. Ensuring proper ventilation. 3. Proper daily culling. 4. Proper house clean out. Culling Goal To understand how much culling affects feed conversion. Culling begins at the day of delivery. The earlier you remove culls the better your feed conversion. Immediately after chicks are placed in the house, you should begin the culling. On day two, all chicks that fail to move out of your way during daily pick up of mortalities should be culled. You should cull daily, with 80% of culling done during the first 10 days of growout. Continue to cull until birds are sold. Notes: Chicks that Need to be Culled Here are some examples of birds that should be culled. Crippled With bad legs, birds will not survive long. Blindness Usually caused by poor ventilation, these birds will not survive. Cross Beaks These birds are unable to eat and will soon die. Sour Crops These birds have ruptured stomachs. Downed Birds May be diseased or crippled. 10

BROILER HOUSE MANAGEMENT Dead Bird Disposal Goal To realize the importance of properly disposing dead birds. Improper dead bird disposal has been responsible for the spread of numerous diseases. Dead birds should be removed from the house daily. During periods of excessive mortality, remove birds 5 times a day. Death loss should also be recorded on a daily basis. The dead birds should be disposed of by incineration or composting. Incineration Although it is more expensive, it is the best way of disposing of dead birds. Always be sure that the birds are burned completely to ashes. The incinerator should be located at a reasonable distance from the chicken house. Always be aware of pollution guidelines for your area. Do not incinerate during the catch of your flock. Composting The only other alternative allowed to dispose of dead birds. It is the cheaper of the two methods of dead bird disposal. In composting you can use your dead birds, house litter, and water. Contact your service person for other details regarding composting. House Clean Out Goal Removal of all litter, dust, debris, and disease-causing bacteria. Steps for House Clean Out: 1. Wash down the entire house 24 hours after birds are caught with Tempo, Insectrin or other approved insecticides (see your service person for recommendations.) The darkling beetles will be on the walls, ceiling and foundation looking for food, because they are hungry and the house has not yet cooled down. That is why 24 hours after the catch is the best time to use your insecticide. 2. Remove all litter from the house and spread on fields or sell. 3. Wash down curtains, ceiling, end walls, fans, stoves and everything in the house with disinfectant. 4. For darkling beetle control, next use safeside on the pad before applying shavings. Larva Pupa Adult Darkling Beetle 5. Place 3 to 4 inches of rice hulls and pine shaving mix in house. 6. Fill rodent station with bait. 7. Occasionally rotate your insecticides and rodent control programs. The insects and rodents will build up immunities to them over a period of time. Rodent Damage 11

BROILER HOUSE MANAGEMENT Settlements The Peterson broiler settlement is a competitive one. In other words, your flock is competing with other flocks that are grown during the same period. The following is a list of items that determine the performance of your flock: Feed Conversion Average Weight Mortality Condemnation Disease The majority of your settlement is determined by feed conversion. Broiler Straight Run Performance 6 5.1 5 4.35 4 Weight In Pounds 3 2.45 3.35 2 1 0.9 1.55 Broiler Weight 0.3 0 7 14 21 28 35 42 49 Age In Days 12

SETTLEMENT INFORMATION BRO528 GROWER JOHN DOE FIELDMAN 1 PETERSON BROILER DEPARTMENT DECATUR, ARKANSAS AE AVG FOR WEEK THIS FLOCK RANKED 12 OUT OF 24 CALORIE CONVERSION AB 3118 3095 FEED CONVERSION AC 47.40 47.67 AK FEED RATIO AD 2.11 2.10 0.2351 MIDDLE COST POINT SPREAD AE 3.03 2.83 % OF MORTALITY AF 6.14 7.88 % CONDEMNED AG 1.09 1.52 **************************************** S A L E S ******************************************** DATE AGE AVG PLANT SALE CONDEMNED SOLD PRODUCED WT PRICE PCT HEAD WEIGHT HEAD WEIGHT HEAD WEIGHT 1/10 7-0 5.14 PI 0.3625 1.09 298 2174 38562 197402 38860 199576 TOTAL 7-0 5.14 PI 0.3625 1.09 298 2174 38562 197402 38860 199576 AA C D E F A B ****************************************C O S T S******************************************** Y Z UNIT AVG FOR OVER(+) HEAD/WT. AMOUNT WEEK UNDER(-) FEED G 421,020 I 42,102.00 Q.2110.2098.0012 + CHICKS H 41,400 J 4,140.00 R.0207.0220.0013 - SUB-TOTAL 46,242.00 *.2317.2318.0001 - SUB-TOTAL K 46,242.00 S *.2317.2318.0001 - CONDEMNATION L 518.90 T.0026.0036.0010 - TOTAL COST M 46,760.90 U.2343.2354.0011 - LABOR N 8,054.00 V.0403.0398.0006 + GAS ALLOWANCE O 828.00 W.0041.0044.0003 - TOTAL P 55,642.90 X *.2788.2796.0007 - ******************************************************************************************** 1-7 DAYS 765 AH 8 - SALE 966 AH CHICKS PLACED UNACCOUNTED 809 AI DATE HEAD TOTAL 2,540 11/21 10,525 6.14% 11/21 10,175 11/21 10,925 11/21 9,775 AJ TOTAL 11/21 41,400 13

SETTLEMENT INFORMATION Definitions of Variables Quantities A = B = C = D = E = F = G = H = Head Produced (Live head picked up at the farm) Pounds Produced (Live pounds picked up at the farm) Head Condemned at processing plant Pounds Condemned at processing plant Head Sold is the Head Produced (A) less the Head Condemned (C) Pounds Sold is the Pounds Produced (B) less the Pounds Condemned (D) (This is the actual pound available to be sold.) Total pounds of Feed Used Total Chicks Placed Calculation Sample Using Numbers from Sample Settlement on Page 13 (A) 38,860 - (C) 298 = 38,562 (B) 199,576 - (D) 2,174 = 197,402 421,020 41,400 Costs I = J = K = L = M = N = O = P = Cost of Feed Used (Total Feed Pounds Used (G) x $.10 per Pound) Cost of Chicks Placed (Total Chicks Placed (H) x $.10 per Chick) Sum of the Cost of Feed (I) and the Cost of Chicks (J) Sub-total cost (K) divided by Pounds Sold (F) Less the Sub-total Cost (K) divided by Pounds Produced (B) x Pounds Produced (B) Total Cost is the sum of the Feed Cost (I), Chick Cost (J) and Condemnation Cost (L) Middle Cost (AK) less the Total Unit Cost (U) plus.04 x Pounds Sold (F) Gas Allowance paid to the Contract Grower (If applicable) Total Cost (M) plus the Labor Cost (N) plus the Gas Allowance (O) (G) 421,020 x.10 = 42,102 (H) 41,400 x.10 = 4,140 (I) 42,102 + (J) 4,140 = (K) 46,242 [(K) 46,242 (F) 197,402] - [(K) 46,242 (B) 199,576] x (B) 199,576 = 518.90 (I) 42,102 + (J) 4,140 + (L) 518.90 = 46,760.90 (AK).2351 - (U).2343 +.04 x (F) 197,402 = 8,054 828.00 (M) 46,760.90 + (N) 8,054 + (O) 828 = 55,642.90 Cost Per Unit Q = R = S = T = U = V = W = X = Cost of Feed per Pound Produced Cost of Chicks per Pounds Produced Cost of Feed (I) plus Cost of Chicks (J) divided by Pound Produced (B) Sub-total Cost (K) Divided by the Pounds Sold (F) Less Sub-total Cost (K) Divided by Pounds Produced (B) Total Unit Cost per Pound Produced is the Sum (I + J + L) divided by (B) This is the cost that will be compared to the Middle Cost per Pound (AK) to determine your Labor Rate. The Labor Rate times the Pound Sold (F) will be the Labor Cost (N) paid to you. See (AK) below. Middle Cost (AK) less the Total Unit Cost (U) plus.04 times Pounds Sold (F) divided by Pounds Produced (B) Gas Allowance per pound produced. See Other Terms below. Total Cost per Pound Produced 14 (I) 42,102 (B) 199,576 =.2110 (J) 4,140 (B) 199,576 =.0207 [(I) 42,102 + (J) 4,140] (B) 199,576 =.2317 [(K) 46,242 (F) 197,402] - [(K) 46,242 (B) 199,576] =.0026 [(I) 42,102 + (J) 4,140 + (L) 518.90] (B) 199,576 =.2343 [(AK).2351 - (U).2343] +.04 x (F) 197,402 (B) 199,576 =.0403 (O) 828 (B) 199,576 =.0041 (P) 55,642.90 (B) 199,576 =.2788

SETTLEMENT INFORMATION Comparisons Y = All growers totals are averaged for the week and the same calculations made as in steps (Q) through (X) for the individual grower. Z = Over (+) or Under ( ) is your Unit Cost (Q through X) less the average for the week (Y) If there is a plus (+) by the Over/Under, your cost was greater than the average. If there is a minus ( ), your cost was less than the average. AK = Middle Cost. This is the middle of all growers Total Costs (U) for the Week. In this example there are 24 growers settling. If there is an even number (24) then the two middle costs are averaged. If there is an odd number like 25, then grower 13 is the middle cost ( 12-1 - 12 ). Your Total Unit Cost (U) is subtracted from the Middle Cost (AK) to determine if your cost is over (+) or under ( ) the middle. This adjustment is applied to the Labor Rate per pound in your contract to determine the final Labor Rate per Pound Sold that you will be paid. Statistics AA = Average Live Weight at the Farm is Pounds Produced (B) divided by Head Produced (A) AB = Average Calorie Conversion is the sum of Total Calories per Pound of Feed times the Pounds of Feed Delivered divided by the Weight Produced (B) AC = Feed Conversion is Pounds Produced (B) divided by Feed Pounds (G) AD = Feed Ratio is the number of pounds of feed to make a pound of meat. Feed Pounds (G) divided by Pounds Produced (B) AE = Point Spread is the Average Live Weight (AA) less the Feed Ratio (AD) AF = % of Mortality is the total of Mortality (AH and AI) divided by the Chicks Placed (H) AG = % of Condemned is the Pounds Condemned (D) divided by Pounds Produced (B) AH = Mortality from your records as turned in by servicemen. AI = Unaccounted is the Total Chicks Placed (H) less Head Produced (A) less Mortality (AH) AJ = Detail Chick Deliveries Calculation Sample Using Numbers from Sample Settlement on Page 13 (B) 199,576 (A) 38,860 = 5.14 (B) 199,576 (G) 421,020 =.4740 (G) 421,020 (B) 199,576 = 2.11 (AA) 5.14 - (AD) 2.11 = 3.03 [(AH) 1731 + (AI) 809] (H) 41,400 = 6.14% (D) 2174 (B) 199,576 = 1.09% (H) 41,400 - (A) 38,860 - (AH) 1,731 = 809 Other Terms: Round Trip Miles Fuel Allowance Formula Plant Caused Condemned Farm Caused Condemned One Way Miles x 2 = Round Trip Miles Round Trip Miles 3.04 = Total Gallons of Diesel Fuel Used Includes but not limited to Cadavers, Contaminations, Overscald Includes but not limited to Tuberculosis, Leukosis, Septicaemia, Toxemia, Synovitis, Bruises, Airsacculitis, and Inflammatory Process 15

MISCELLANEOUS INFORMATION Hot Weather Tips Air Movement Air moving over a bird at 400 ft./min. will reduce effective house temperature by 10 O F. Running fans at night will improve both bird weight and feed conversion during periods of heat stress. Air movement is most effective when house temperatures are kept below 95 O F. It costs ten cents an hour to run a 48" fan and five cents an hour to run a 36" fan. The more a bird pants, the worse its feed conversion will be. Maintenance Bare ground next to a poultry house will be at least 30 o hotter than ground covered with grass. If the shutters on an exhaust fan do not open completely and the shutters are clean and the belt is tight then more inlet is required or the pads require cleaning. In a house where severe migration has occurred, bird weight will be 1/4 lb to 1/3 lb less than average. Flush the water lines several times during the hot afternoon hours. The cool water will encourage the birds to drink and this will lower their body temperature. Keep fan blades and evaporative cooling systems clean. Evaporative Cooling Evaporative Cooling systems should not be operated between the hours of 10:00 p.m. and 10:00 a.m. Fogging systems and evaporative cooling pads should not be used when the sum of the outside temperature and relative humidity is greater than 160. Water temperature has practically no effect on the amount of cooling produced by either an evaporative cooling pad or misting system. Decreasing the temperature of the water by 10 O F. increases the cooling produced by only 1%. Evaporative cooling is most effective if there is good air movement. A 1 gallon per hour nozzle will put out 1 1/2 gallons per hour at 200 psi. The higher the water pressure, the finer the mist and the greater the cooling produced. The relative humidity in a poultry house should not exceed 80%. It is a good investment to keep crucial spare parts, (i.e. Fogger pump, plumbing fittings, electrical breakers, fan motor). Change your water filters more often during hot weather. Dirty filters will reduce your water pressure and volume. If the static pressure in a house with evaporative cooling pads is over 0.1 inches, the pads require cleaning. 16

MISCELLANEOUS INFORMATION Trouble Shooting Water If water is not running properly: 1. Check the well house to make sure the pump is working and check water pressure at the pressure tank. 2. Check the water filter inside the poultry house for stoppage. 3. Check for stoppage in the in-line regulator. Most regulators have a filter inside. Sometimes regulators on nipple drinkers will also stop up. Fill Auger If the fill auger isn t bringing feed into the house: 1. Check for electrical power to the auger motor. 2. Check hopper switches. 3. Check safety switch on the fill auger power head. 4. Check the reset button on the motor. Space Heaters 1. Check for electrical power to the heating unit. 2. Make sure you have gas. 3. Check for pressure to gas tanks in cold weather. 4. Check fuses (if your unit has them). 5. Check flame sensor. 6. Check ignighter. 7. Check reset button. 8. Check control unit. Feeders If the feeders are not running properly: 1. Check for electrical power to the feeder motor. 2. Make sure the breaker switch is on. 3. If there is a feed timer, check the peg settings for automatic or manual start. 4. Check the switches in the control pans, located on feeder ends. 5. Check the reset button on the end of the feeder motor. 6. If the feeder seems to be trying to run but unable, check for a rock, bolt, etc. caught in the feedline. Curtain Machine If the curtain machine is not running properly: 1. Check thermostat. 2. Take the cover off the machine on the outside of the building and check the upper and lower limit switches to make sure they are working. 3. Open the control box on the inside of the house and check the square relay to make sure it is working. Also check to make sure the round wheels are turning. 17

MISCELLANEOUS INFORMATION Broiler House Requirements 1. Two 10 Ton bins per 20,000 birds. 2. Two Line auger feeders with 4 pans per 10 ft. section and flood pans. 3. All Feed lines winched on power winches. 4. 30,000 BTU s per thousand birds. 5. One Closed nipple watering system with 90 nipples per thousand birds. 6. Two Curtains, one on each side of the house each with a curtain machine and one curtain drop on the south side of the house. 7. One Half house drop curtain with pull cords. 8. Eight Fogger nozzles per thousand birds rated at 2 gallons per hour with booster pump and solenoid. 9. One 36" fan per 1,100 birds placed. 10. Two 9 watt fluorescent U tube light per thousand birds placed. 11. One Medicator. 12. One Incinerator or compost shed for dead bird disposal. 13. One Generator for power failure. 14. One Light clock. 15. One Feed clock. Notes: 18

MISCELLANEOUS INFORMATION Glossary Of Terms Automatic Curtain Drop: Safety device that is equipped with a thermostat that will drop the curtain in case of power failure or too high house temperature. Biosecurity: Process used which helps protect poultry houses against unwanted diseases. Precautions taken require all vistors to the poutry house to wear protective foot wear, coveralls and a hair net. Brood Chamber: The portion of the broiler house used to brood chicks in the first 10-14 days of age. Calorie Conversion: Amount of energy (calories) neede to convert feed to meat. Catch Time: Estimated time that the catch crew arrives to load chicks on live haul trucks. Center Curtain: Curtain located in the center of the house to separate the brood chamber and growout end. Composting: Method of dead bird disposal using litter, straw, and dead carcasses in covered bins. Condemn: Whole carcasses or parts discarded by USDA at the processing plant. Control Pan: Pan at end of feed line that activates auger to fill the feed line with feed. Culling guide lines: Removal of undesirable chicks from the house. Curtain Machine: Machine mounted on the end or side wall of poultry house that raises and lowers the curtain according to the temperature. Daily Feed Consumption: Amount of feed that broilers will consume in a 24 hour period. Divider Partition: Removable wood partition usually 2' x 8', used to from a barrier between the brood chamber and growout end. It is placed on litter before the chicks arrive. Exhaust: Use of side wall fans, usually on timers or thermostats, to remove undesirable air and moisture from the poultry house. Exhaust Fans: Fans used to exhaust air and water from poultry house. Farm Caused Condemned: Any bird that is discarded at the farm, which includes, but is not limited to Tuberculosis, Leukosis, Septicaemia, Toxemia, Synovitis, Bruises, Airsacculitis, and Inflamitory Process. Feed Conversion: Amount of meat produced by one (1) pound of feed. Feed Ratio: Amount of feed needed to produce one pound of meat. Feed Saver: Portion of feed pan that controls the depth of the feed in the pan. Feed Slides: A small piece of PVC pipe approximately 2 inches long that pops over the feed tube to open and close for flood feeding. Feed Trench: Trench made in litter to place flood paper on, trench keeps feed from spreading over the house (reducing feed wastage). Flood Paper: 5 or 6 foot wide paper used to place feed on before the chicks arrive for the first feeding. Growout End: Portion of house opposite brood chamber. High Pressure Flush: Process of bypassing water line regulators with 25-30 pounds of water pressure to remove undesirables from watering system. Incineration: Method of dead bird disposal using heat, rendering carcasses to ash when finished. Lighting Guide Lines: Use of artificial lights to control bird activity and growth rates. Mortality Card: Card provided by Peterson Farms telling the amount of birds placed in the house, the number of the delivering hatchery, and a chart for daily recording of death loss. Plant Caused Condemned: Any bird that is discarded at the plant that includes, but is not limited to Cadavers, Contaminations, Overscald. Pre-Brooding: Warming of brood chamber to desired temperature before chicks arrive. Pre-Ventilation: The removal of ammonia and stale air form the brood chamber before chicks arrive. Stir Fans: Fans in the ceiling to push warm air down to the chicks. Timers: Electrical motors that cycle by minutes and are used to engage exhaust fans. Ventilation: Removal of undesirable air and moisture from the house by exhaust fans on curtain sides. 19