United States 

Department of 

Agriculture

Animal and 

Plant Health 

Inspection 

Service

May 2013

Analysis in Support of Certification that the 

Rule will not have a Significant Economic 

Impact on a Substantial Number of Small 

Entities

Proposed Rule 

2011-0101

RIN 0579-AD83

Amendments to the National Poultry 

Improvement Plan Regulations, their 

Auxiliary Provisions, and to Avian Influenza 

Response Regulations 

Policy & Program Development

Policy Analysis & Development
0

Summary

This rulemaking would result in various changes to 9 CFR parts 56 and 145 – 147, 

modifying provisions of the National Poultry Improvement Plan (NPIP). The proposed 

modifications are recommended by the NPIP General Conference Committee (GCC), which

represents cooperating State agencies and poultry industry members and advises the Secretary on 

issues pertaining to poultry health. The proposed amendments to these regulations would 

improve the regulatory environment for poultry and poultry products.

This proposed rule would move approved tests and testing procedures from the Code of 

Federal Regulations to a program standards document; add compartmentalization standards to 

the NPIP regulations; and make a number of specific changes, including adding or amending 

definitions of technical terms to specific sections, amending poultry disease classifications and 

laboratory procedures, and adding specific tests for certain poultry diseases. 

The establishments that would be affected by the proposed rule—principally entities 

engaged in poultry production and processing—are predominantly small by Small Business 

Administration standards. In those instances in which an addition or modification could 

potentially result in a cost to certain entities, we do not expect the costs to be significant. This 

rule embodies changes decided upon by the NPIP GCC on behalf of Plan members, that is, 

changes recognized by the poultry industry as in their interest. We note that NPIP membership 

is voluntary. Under these circumstances, the Administrator of the Animal and Plant Health 

Inspection Service has determined that this action would not have a significant economic impact 

on a substantial number of small entities.
1

Introduction 

This analysis provides the basis, as required by the Regulatory Flexibility Act, for 

certification by the APHIS Administrator that the proposed rule, if promulgated, will not have a 

significant economic impact on a substantial number of small entities.

The proposed rule would result in various changes to the National Poultry Improvement 

Plan (NPIP) regulations in 9 CFR parts 56 and 145 – 147. Regulations found in 9 CFR 56 set the

conditions for the control of and payment of indemnity for H5 and H7 low pathogenic avian 

influenza. Regulations contained in 9 CFR parts 145 and 146 consist of the NPIP regulations for 

breeding poultry and commercial poultry, respectively. Part 147 contains the procedures for 

blood testing, bacteriological examination, sanitation, and changing the NPIP.

The proposed modifications were discussed and recommended by the NPIP General 

Conference Committee (GCC), which represents cooperating State agencies and poultry industry

members and advises the Secretary on issues pertaining to poultry health. The proposed 

amendments to these regulations would improve the regulatory environment for poultry and 

poultry products.

Industry Background

The United States is the world’s largest broiler (chickens under 13 weeks old) and turkey

producer and the second largest egg producer. In 2011, the combined value of production from 

broilers, eggs, turkeys, and chickens was $35.6 billion.1 Broiler production ($23.2 billion) 

accounted for the major share, followed by eggs ($7.4 billion), turkey ($5 billion), and other 

chicken ($81.3 million). 

Broiler production is concentrated throughout the Southeast and Mid-Atlantic coast

(figure 1). The top three broiler-producing States in 2011 were Georgia, Arkansas, and 

Alabama.

2

 That year, over 49.7 billion pounds of broilers were produced. Most production is 

 

1 USDA National Agricultural Statistics Service. Poultry-Production and Value 2011 Summary. April 2012. 

http://usda01.library.cornell.edu/usda/current/PoulProdVa/PoulProdVa-04-26-2012.pdf

2 USDA Economic Research Service. Poultry and Eggs Background. May 2012. 

http://www.ers.usda.gov/topics/animal-products/poultry-eggs/background.aspx#.UWbycrXFVms
2

under contract with a broiler processor, with growers supplying the broiler-houses and labor and 

processors supplying the chicks, feed, and veterinary services. U.S. per capita consumption for 

broilers in 2011 and 2012 was 82.9 pounds and 80.4 pounds, respectively, the largest of any meat 

type.3Per capita consumption of broilers has more than doubled over the last 40 years, averaging 

40.0 pounds per year from 1970 to 1980 and 83.3 pounds per year from 2002 to 2012.4

Figure 1. Number of Broilers and Other Meat-Type Chickens Sold: 2007

 

3 USDA Economic Research Service. Livestock & Meat Domestic Data. April 2013. http://www.ers.usda.gov/dataproducts/livestock-meat-domestic-data.aspx#26147

4

Ibid.
3

Turkey production is more scattered than broiler production. The top three turkeyproducing States are Minnesota, North Carolina, and Missouri (figure 2). U.S. Per capita 

consumption of turkey was 16.1 pounds in 2011 and 16.0 pounds in 2012. Turkey per capita 

consumption has also practically doubled over the last 40 years, with average per capita 

consumption equaling 8.8 pounds per year from 1970 to 1980 and 16.9 pounds per year from 

2002 to 2012.5

Figure 2. Number of Turkeys Sold: 2007

U.S. egg operations produce over 90 billion eggs annually. Approximately 67 billion 

eggs are produced annually for human consumption; the remaining one-fourth of production is 

used for the hatching market and become breeding stock, replacement layers, or broilers. The top 

three egg-producing States are Iowa, Ohio, and Pennsylvania (figure 3). U.S. per capita 

 

5

Ibid.
4

consumption was 248 eggs in 2011 and 250 eggs in 2012. Per capita consumption of eggs has 

remained relatively constant since the 1990s.6

Figure 3. Layers Inventory: 2007

Potential Impact on Small Entities

This proposed rule consists of one broad and numerous specific changes. Based upon the 

recommendations of the NPIP GCC, the broad change that APHIS proposes is moving the names 

of approved tests and details on how to perform tests for various poultry diseases from the Code 

of Federal Regulations to a program standards document, including changes to the tests and 

testing procedures that were approved at the 2010 Plan Conference.

The specific proposed changes would include, among others, adding or amending 

definitions of technical terms to specific sections, amending poultry disease classifications and 

 

6

Ibid.
5

laboratory procedures, and adding specific tests for certain poultry diseases. In total there are 15 

specific changes which were approved at the 2010 Plan Conference and 2012 Plan Conference. 

Establishments that would be affected by the proposed rule—principally entities that 

engage in poultry production or processing—are predominantly small by Small Business 

Administration (SBA) standards. The major industries that would be affected are categorized 

according to the North American Industry Classification System as follows, and have the SBA 

small-entity standards indicated: Poultry Hatcheries (NAICS 112340, not more than $750,000 in 

annual receipts), Other Poultry Production (NAICS 112390, not more than $750,000 in annual 

receipts), Poultry Processing (NAICS 311615, not more than 500 employees), and Poultry and 

Poultry Product Merchant Wholesalers (NAICS 424440, not more than 100 employees).

7

Affected entities would benefit from the movement of approved tests and testing 

procedures to a program standards document, the provision of compartmentalization standards, 

and the various specific regulatory changes included in this proposed rule. In those instances in 

which an addition or modification could potentially result in a cost to certain entities, we do not 

expect the costs to be significant. This rule embodies changes decided upon by the NPIP GCC 

on behalf of members, that is, they are recognized by the poultry industry as regulatory changes 

that would be in their interest. We note that NPIP membership is voluntary. Under these 

circumstances, the Administrator of the Animal and Plant Health Inspection Service has 

determined that this action would not have a significant economic impact on a substantial 

number of small entities.

 

7 U.S. Small Business Administration, Table of Small Business Size Standards. 

http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf