The Saskatchewan Egg Producers

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					     The Saskatchewan                   Egg Producers
                          P. O. Box 1263
    ....
                       Regina, Sk S4P 3B8
            Courier   - 496 Hoffer Drive S4N 6E2
           PH: (306) 924-1505      Fax: (306) 924-1515
                      Email: sep@saskegg.ca
                                                 Risk Mana1!ement Order

             The Saskatchewan Egg Producers, pursuant to The Agri-Food Act, 2004, The Agri-Food Act
             Regulations, 2004, and The Commercial Egg Marketing Plan Regulations, hereby orders and
             detennines that:

             This Order No. ~06,   being an order governing the management of risk, shall be referred to
             as the Risk Management Order.


             I. Definitions

             1. In this Order:

             (a) inspector" means a person authorized by the Minister, pursuant to s. 40(1) of the Agri-
             Food Act, 2004, or any amendments thereto, to make any inspection, investigation or inquiry
             for the purpose of administering and enforcing the Agri-Food Act, 2004, the Commercial Egg
             Marketing Plan Regulations or any order of the Lieutenant Governor in Council, the
             Minister, the Agri-Food Councilor of the Saskatchewan Egg Producers.

             (b) "CEMA inspector" means a person authorized by the Canadian Egg Marketing Agency
             ("CEMA") to assess production facilities in tenns of the degree of fulfillment of the tenns
             and requirements of the CEMA "Start Clean Stay Clean™'' (SCSC) program.

             (c) "production facility" means the buildings and equipment used to house and maintain egg
             laying hens ("layers") and manage the egg production and market the eggs, including but not
             limited to the barn(s), and the buildings and equipment to collect, package, store and ship the
             eggs.

             (d) "Se. positive" means the presence of the bacteria Salmonella enteritidis ("Se.")

             (e) "Se. negative" means the absence ofthe bacteria Se.

             (f) "Se. sampling" and "Se. sample" mean, respectively, the process of taking samples in
             accordance with this Order for the purposes of testing for the presence or absence of the
             bacteria Se., and a sample taken in accordance with the provisions of this Order for the
             purposes of testing for the presence or absence of the bacteria Se.
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             (g) "table egg market" means those outlets and purchasers purchasing eggs for consumption
             in the shell including, but not restricted to: end consumers, who~lers, graders and retailers.




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      II. Classification or Gradin2 of E22S

      2. The SEP shall classify or grade all eggs, other than broiler hatching eggs, produced by a
         registered producer, in tenns of their risk of contamination by the bacteria S.e.

      3. The risk of contamination by Se. shall be detennined by the presence or absence of Se.
         in the production facility wherein the eggs are produced. If Se. is present in the
         production facility, it shall be identified as S.e. positive. If Se. is not present in the
         production facility, it shall be identified as S.e. negative.

      4. Eggs produced in a production facility that has been identified as Se. positive shall be
         classed or graded as "high risk".

      5. Eggs produced in a production facility that has been identified as S.e. negative shall be
         classed or graded as "low risk".

      6. Eggs produced in a production facility to which an inspector has been denied access or
         entry for the purpose of Se. sampling shall be classed or graded as "uninspected".

      III. Testin2 for S.e. Contamination

      7. Identification of the presence of Se. in a production facility shall be detennined by
         sampling the production facility and testing the samples for the presence of Se.
         contamination. Sampling the production facility for the presence of Se. contamination
         shall be done by inspectors authorized by the Minister and conducted in accordance with
         the protocols of Schedule I to this Order. Testing the samples for the presence of Se.
         contamination shall be done by a laboratory accredited by the Standards Council of
         Canada.

      8. Inspectors may sample the production facility or facilities of registered producers for the
         presence of S.e.

      9. No one shall deny an inspector immediate and unimpeded access or entry to a production
         facility for the purpose of S.e. sampling in accordance with this Order.

      10. An inspector may sample a production facility at any reasonable time and with any
          frequency considered reasonably necessary to manage the risk of S.e. contamination.

      11. A production facility with multiple buildings or multiple flocks, which are located on the
          same or contiguous land descriptions, and which are linked by a network of transport
          belts or are sheltered within a single structure, shall be deemed a single production
          facility.

      12. A production facility with multiple buildings or multiple flocks, which are located on the
          same or contiguous land descriptions, and which use the same packaging and transport
          facilities, shall be deemed a single production facility.
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13. A producer may apply to the SEP for waiver or modification of the provisions of ss. II
    and 12 of this Order, which determine whether the producer's production facility is
    deemed a single production facility, and the SEP, in its absolute discretion and on a case
    by case basis, may approve or deny such a request.

14. If Se contamination is found in anyone component of a single production facility the
   entire production facility, and each of its components, shall be identified as Se. positive.

15. If a production facility is identified as S e. positive, the SEP shall promptly notify the
    producer, the grader, CEMA and any other person or party which SEP considers necessary or
    advisable to notify.

IV. Disposition of Ee:e:sFrom An S.e. Positive Production Facilitv

16. No eggs from a production facility that has been identified as Se. positive, and no eggs
    that have been classed or graded as uninspected, may be marketed to the table egg
    market.

17. Eggs from a production facility that is identified as Se. positive, and eggs that have been
    classed or graded as uninspected, may be diverted to a breaking facility for
    pasteurization.

18. If the producer operating a production facility that is identified as Se. positive is
    currently participating in the CEMA SCSC program, and the producer chooses to divert
    its eggs to a breaking facility, the diverted eggs will be incorporated into the Industrial
    Products Program. In this case, if the producer has a SCSC score of 90 or higher as of the
    date of the positive Se. test result, the diverted eggs will be priced at the provincial
    producer price. If the producer has a SCSC score of less than 90, the diverted eggs will be
    priced as the product derived by multiplying the provincial producer price for the grade in
    question and the SCSC score expressed as a percentage. For greater clarity, the following
    example will demonstrate the pricing principle: if the producer SCSC score is 80, and the
    Saskatchewan Grade A Large producer price is $1.50 per dozen, then the producer shall
    receive 80% of $1.50 = $1.20 per dozen for Grade A Large eggs diverted to the breaker;
    and similarly for other grades and sizes.

19. If the producer operating a production facility that is identified as Se. positive is not
    currently participating in the CEMA SCSC program or does not have a SCSC score
    which has been delivered within the most recent twelve months, and the producer
    chooses to divert its eggs to a breaking facility, the diverted eggs shall not be
    incorporated into the Industrial Products Program.

20. If a production facility is identified as Se. positive, and the producer chooses to
    depopulate the production facility, the SEP will endeavour to work with the producer and
    with CEMA so as to facilitate compensation from CEMA for the producer according to
    the terms and conditions ofCEMA's Se. Downtime Compensation Policy.

21. If a production facility is identified as Se. positive and the producer has a SCSC score of
    90 or higher as of the date of the positive S.e. test result, and the producer chooses to
    depopulate the production facility, the SEP will compensate the producer at the rate per


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    dozen that is equal to the difference between the CEMA cost of production per dozen and
    the Saskatchewan provincial producer price per dozen - expressed on a Grade A Large
    basis - for the number of dozens determined by CEMA pursuant to the terms of its
    compensation program to be equivalent to the number of hens depopulated ("the
    equivalent dozens"). For greater clarity, the following example will demonstrate this
    case: if the provincial Grade A Large producer price is $1.50 per dozen, and the CEMA
    formula cost of production for Saskatchewan is $1.49, then the Saskatchewan Egg
    Producers shall remit an additional $0.0 I per dozen to the producer for the equivalent
    dozens as determined by CEMA.

v. Remedies

22. If eggs from a production facility have been classed or graded as uninspected pursuant to
    s. 6 of this Order, due to a denial of access or entry to an inspector to that facility, those
    eggs may be delivered to the table egg market if and only if unimpeded access and entry
    to that production facility is granted to an inspector for the purposes of S.e. sampling in
    accordance with this Order.

23. Subject to s. 24, if a production facility is identified as Se. positive, and the producer chooses
    to divert the eggs from that facility to a breaking facility, that production facility will only
    be identified as Se. negative if:

         (a) the production facility has been assessed by a CEMA inspector according to the
         standards of CEMA' s SCSC program,

         (b) the CEMA inspector has ranked the production facility at a score of 90 or higher
         on the SCSC program scale; and

         (c) negative results are obtained in each of three consecutive Se. samplings and tests
         of the facility, each of which is conducted at least one week later than the prior test.

24. A producer may apply to the SEP for waiver or modification of the conditions set out in
    ss. 23(a) - (c) of this Order and the SEP, in its absolute discretion and on a case by case
    basis, may approve or deny such a request.

25. If a production facility has been identified as Se. positive, and the producer chooses to
    depopulate the facility, that production facility shall be identified as Se. negative if:

         (a) the production facility has been assessed by a CEMA inspector according to the
         standards ofCEMA's SCSC program, and

         (b) the CEMA inspector has ranked the production facility at a score of 90 or higher
         on the SCSC program scale, and

         (c) prior to repopulation, the facility is sampled and tested for the presence of Se. and
         the test yields negative results.




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26. Once a production facility which has been identified as Se. positive has been
    subsequently identified, pursuant to the provisions of this Order, as Se. negative, eggs
    produced from that production facility shall be classed or graded as "low risk" and may
    be marketed to the table egg market.




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Order No. W06         is made pursuant to s. 8 of The Agri-Food Act, 2004 and s. 26 of The
Commercial Egg Marketing Plan Regulations and shall be effective on, from and after the 1st
day of July 2006.

          r of the Saskatchewan Egg Producers.




Bert lThrman, Chairman
Saskatchewan Egg Producers




Pursuant to s. 8 of The Agri-Food Act, 2004 and s. 26 of The Commercial Egg Marketing
Plan Regulations, the above Order No. ~06     of the Saskatchewan Egg Producers is hereby
approved this ~r day of AtAV ,2006.




Garf Stevenson, Chairperson
Saskatchewan Agri-Food Council




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                                  Schedule 1 - S.e. Testio2 Protocols


Sampling Locations

The sites to be sampled shall be divided into two types of locations:

·   Egg contact areas, including but not limited to: plastic trays; egg collection cart(s);
    the egg packer; conveyors and belts; elevator(s); and rollouts including mesh and
    bumpers.
·   The barn environment, including but not limited to: cage bottoms; ceiling, floors and
    walls; ventilation intakes and fan exhausts; tops of water pipes; feeding trough
    elbows; doorway perimeters; and all other areas of the barn environment.

Number of Sites to be Sampled

·   Within each barn a minimum of sixty (60) sites is to be sampled. This will include
    one pooled sample of 30 or more sites from the egg contact areas, and one pooled
    sample of 30 or more sites from the barn environment.
·   A barn is considered to be a distinct enclosed layer housing unit. In other words, if for
    example two such enclosed layer housing units are incorporated into a single building
    structure, that building structure is considered to incorporate two barns, and each of
    those barns shall be sampled with a minimum of sixty (60) sites, for a total of one
    hundred twenty (120) sites for the entire building structure.
·   Samples are to be taken from widely separated areas selected from the detailed list of
    sampling locations for each of the two types of sampling locations.

Nature of Samples

Samples are to be drawn from the following types of sampling material, without
limitation:

.   Dust,fluffor scrapings
.   Feathers
.   Egg spillage
.   Insectcarcasses
.   Feathers
.   Cobwebs
.   Rodentdroppings




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    Procedure of Sample Collection

    ·    Inspectors may make reference to, and may be guided by, the procedure for
         sample collection set out in s. 6.7 of the CEMA National Microbiological Sampling
         Protocol for Shell Egg Production Units (attached). However, inspectors are not
         limited to, or restrained by, that procedure and a failure to strictly follow that
         procedure, or any of the steps therein, does not invalidate the result of any testing
         of samples or invalidate any of the actions of the inspector.
    ·    Similarly, inspectors may make reference to, and may be guided by, the CEMA Field
         Operations Protocol- Sanitary Procedures (attached). However, inspectors are not
         limited to, or restrained by, that protocol and a failure to strictly follow it, or any of
         the steps therein, does not invalidate the result of any testing of samples or invalidate
         any of the actions of the inspector.


    Shipping: Container & Transportation

    ·    Samples are to be placed and sealed in a sterile plastic bag.
    ·    The samples are to separated and pooled according to the source of the sample: one
         bag will contain samples taken from egg contact areas, one bag will contain samples
         taken from the barn environment, and one will contain rodent droppings and insect
         carcasses.
    ·    The pooled samples in the separate bag are to be placed in an envelope with an s.e.
         test submission form documenting the producer number, the flock number, the date
         the test was taken, and the name ofthe inspector. The form is to be obtained from the
         SEP Office.
    ·    The envelope is sent to the SEP Office, where the information on the label is to be
         documented. The SEP Office is to then forward the envelope to the accredited
         laboratory by courier.



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    POLICIES OF THE SEP

    1.       The SEP shall endeavour to arrange for an inspector to sample each production
             facility at least once in each production cycle, in the second half of the production
             cycle.

    2.       The SEP shall endeavour to arrange for an inspector to sample each free range or
             free run production facility at least twice annually, unless the free run operation

-            incorporates slats or wire in the floor of the barn(s).




    Risk Management Order - May 2. 2006 -final                                                     7

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