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ROBERT D. RAGLAND, D.V.M., MPH

Senior Staff Officer

Risk and Innovations Management Division 

OPPD, FSIS, USDA

5601 Sunnyside Avenue, Mail-drop 5271

Beltsville, MD 220705-5271

Office:  301-504-0849;   Fax:  301-504-70876

E-mail:  robert.ragland@fsis.usda.gov

Guidance for Determining Whether a Poultry Slaughter  or Processing  Operation is Exempt  from Inspection  Requirements of the Poultry Products Inspection Act

http://origin-www.fsis.usda.gov/OPPDE/rdad/FSISNotices/Poultry_Slaughter_Exemption_0406.pdf

January 21, 2010, Poultry Mobile Slaughter 

FSIS-Net Conference       webinar

Poultry Exemptions 

Under the Federal 

Poultry Products Inspection Act

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History Federal Meat Inspection Act of 1906 and  1957 Wholesome Poultry Products Act (Public Law 90 – 492)

   These twentieth century Acts mandated federal inspection at businesses that slaughter and process meat and poultry products for use as human food that enter interstate or foreign commerce.

   These Acts did not required federal inspection if the meat or poultry products  did not  enter interstate commerce.

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Thus the First Exemption

   During the first half of the 20th century slaughterers and processors of livestock and poultry were exempt from any Federal inspection, if the product did NOT enter interstate commerce.

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Congress amended the Federal Meat Inspection Act in 1967 and Wholesome Poultry Products Act in  1968 

      Extending the mandate for federal inspection to “ALL”  slaughtering or processing of meat and poultry for shipment within a State, when the State does not enforce requirements at least equal to the federal inspection requirements in the  Acts.

Note:  These are two different Acts with 

            two different sets of Regulations 

            “requirements”.

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   However, it was not the intent of Congress to subject the slaughter and processing of an owner’s private holdings of poultry that are slaughtered and processed for the owner’s personal use to continuous federal  inspection, thus both the Poultry and Meat Acts included  two personal use exemptions.

Intent of Congress

Two Personal  Use Exemptions Provided by Congress in the Poultry and Meat Acts

The  slaughtering and processing  of  livestock  or poultry  for the owner’s personal use.

The custom slaughter  or processing  of  an individual’s livestock  or poultry for the personal use of  the owner (a service).

 NOTE:   Products produced under these exemptions may NOT be sold in commerce. 

     In addition, Custom Slaughter exempt livestock products must be  marked “NOT for SALE”  and  exempt poultry product  marked “Public Law 90 – 492.”

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    Regarding poultry, the Poultry Act was passed a year after the Meat Act and the Poultry Act included additional types of poultry slaughter and processing that could be exempt; they are exemptions for:

         (1)  producers/growers and 

    (2)  small businesses 

   if they meet certain criteria in the Poultry Act.

            Exemptions are conditional.

Intent of Congress

Addition Exemption for Poultry

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The PPIA and Federal Regulations Provide for Several  Types of Exempt Slaughter    and  Processing Operations/Businesses

Slaughter & processing  of poultry for personnel use

Custom slaughter & processing-personal use

Producer/Grower no more than 1,000/calendar yr.

Producer/Grower no more than 20,000/calendar yr.

Producer Grower or Other  Person (PGOP) no more than 20,000/calendar yr.—meals/processing

Small Enterprises slaughtering/cutting up no more than 20,000/calendar yr.—carcasses and parts no processing 

Retail Stores      

Restaurants

 Note:  Religious exemption is not in the list.

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Today I will focus on these 4 poultry exemptions

Producer/Grower 1,000 Limit;

Producer/Grower  20,000 Limit;

Producer Grower or Other  Person (PGOP)   20,000 Limit; 

Small Enterprises 20,000 Limit.

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But First a Misconception

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

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Exempt From What?

   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.

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Another Misconception

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

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

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Three Basic Requirements (Criteria) for  Businesses Slaughtering or Processing Poultry 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

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Forth Criteriafor  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.

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A 5th and 6th Requirements/Limitationsfor  all Businesses Slaughtering or Processing Poultry for Human Food Under a PPIA Exemption 
        - 5th    Product cannot bare the Official

             USDA mark of  inspection.
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        - 6th    The poultry products are
        -           distributed  only within the State,
        -           territory, or   DC where produced
        -           i.e. cannot  be   distributed across 
        -           State lines. 

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Exemptions’ Six Requirements/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, 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

6.	Poultry products do not move in inter-state commerce.

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Producer/Grower – 1,000 Limit Exemption

   A person may slaughter and process poultry: 

a.  on his or her premises, poultry   

     that he or she raised and 

b.  they may distribute such poultry 

  without mandatory inspection to customers in the State where slaughtered and processes.  		

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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, and

Safe Handling Instructions 

FSIS expect the 1,000 limit poultry sold in commerce to bear safe handing instructions.

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 Producer/Grower – 20,000 Limit Exemption

A Producer/Grower:
        -  slaughters and processes, on his or her own premises, no more than 20,000 poultry, raised by him or her, in a calendar year provided.
        - only distributes poultry products he or she produced under the Producer/Grower Exemption   

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Additional Producer/Grower-20,000 Limit Limitations/Criteria

7.  The business slaughters and processes 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)].

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These  two Limitation a3333pply  to the three 20,000 bird limit:1.  Producer/Grower  20,000 Limit,2.  Producer Grower or Other  Person           (PGOP)  20,000 Limit exemptions, and3.  Small Enterprise exemption 20,000 

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 Eight Exemption Limitations  Applicable to Producer/Grower, Producer/Grower Other Person, and  Small Enterprise 20,000 Exemptions

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 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 commerce.

7.    The business slaughters and  processes 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)].

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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, and 

     c. the statement, Exempt P.L. 90-492, and

     d. safe handling instructions 

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a. Household Consumer
        - Restaurants and  similar Institutions

c.  Retail Stores (Groceries) 

b. Hotels

20,000

Producer Grower May Sell To

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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.

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a. Household Consumer

c.  Restaurants and  similar Institutions

b. Hotels

PGOP May 

Sell To

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Producer/Grower or Other Person Exemption Notes:

     A business preparing poultry products under the PGOP exemption may not sell products to a:

a.  retail store

b. Producer/Grower        or other  PGOP

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The 9th Exemption Limitation for PGOP

9.   Exempt product for sale directly  to household consumers, restaurants, hotels, and boarding houses for  the preparation of meals sold directly to customers

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   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, and 

   c. the statement, Exempt P.L. 90-492, and

   d. safe handling instructions 

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   Small Enterprise Exemption

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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 buy poultry and slaughter  and process the poultry under exemption provided processing is limited to cutting up – Defining Criteria .  

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

Note:  Processing is limited to cutup

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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

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a. Household Consumer
        - Restaurants and  similar Institutions

c.  Retail Stores (Groceries) 

b. Hotels

Small Enterprise may sell too

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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.  

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Label requirements for small enterprise  exempt product include:

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 –PL90-492” is sufficient.

Safe handling instruction that comply with the requirements of Title 9 CFR 381.125(b)(2)(ii),

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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.”

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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.”

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   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.

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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.

Label/Identifying Items  

My Grandmother’s Poultry Mobile Slaughter Unit   Traditional Mobile Slaughter Unit

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Available  Low-End Poultry Mobile Slaughter Units

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 http://attra.ncat.org/attra-pub/PDF/poultryprocess.pdf 

www.foothillsfamilyfarms.org/content/1526

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Whole Foods

Some High-End Poultry Mobile Slaughter Units

Kentucky  Mobile Poultry Processing Unit

The End

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I am poultry.

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