“The law is an ass” declared Dickens’ Mr. Bumble the Beadle, when confronted with an adverse verdict in a breach of promise lawsuit.  This quotation could relate to the scientifically unjustified depopulation of a flock of approximately 350 ostriches in Edgewood, British Columbia during mid-November.

The saga began in December 2024 with mortality among a number of ostriches in the flock leading to an on-site investigation by the Canadian Food Inspection Agency (CFIA).  Tracheal swabs from a small number of birds yielded H5N1 avian influenza virus.  It is unknown whether the sampled birds were either unaffected, showing clinical signs or were dead. According to Canadian regulations that parallel those in the U.S. “poultry” flocks yielding highly pathogenic avian influenza are subject to depopulation followed by disposal and decontamination with indemnity.

Based on experience in the Republic of South Africa, ostriches are essentially refractory to  clinical HPAI, and it is unknown whether the December 2024 mortality was attributed to this infection or some other cause or an interaction between HPAI and an intercurrent bacterial infection. This is likely given the prevailing weather conditions.  The owners of the flock obviously erred in failing to report mortality to veterinary authorities who followed standard CFIA protocol requiring depopulation.  Generally, ostriches infected with avian influenza cease shedding virus after approximately two weeks at which time circulating antibody can be demonstrated. Depopulating non-shedding ostriches eleven months after an outbreak appears to be an exercise in futility despite the adverse rulings of successive courts interpreting regulations.

Ostrich flock corralled  for depopulation by "marksmen"

The CFIA failed to conduct a serologic survey or to determine the distribution and prevalence of infection among the flock in December 2024.  It is possible that the affected birds were young and devoid of antibody probably present in the older birds, previously subjected to seasonal exposure.  The appropriate action at the time would have been to quarantine the flock, maintain a highly level of biosecurity and conduct weekly sampling for the presence of influenza virus applying PCR assay.  Given that the farm located in Edgewood was remote from any concentrations of commercial poultry the risk of transmission from the farm was negligible.  In any event, since the source of infection was presumably wild birds cohabiting with the ostrich flock their destruction would not have reduced risk to backyard or commercial poultry in the region. Edgewood is located about 70 miles north of the border with Washington State on the Canoe River, located in the Pacific migratory flyway.

The courts cannot be faulted on their rulings that are based on clearly defined regulations that define ostriches as “poultry”.  The unhappy outcome for the healthy birds and their owners is attributed to CFIA intransigence and slavish conformity to regulations relating to the control of avian influenza, seasonally prevalent among poultry flocks.

A public relations campaign mounted by the owners of Universal Ostrich to avert depopulation was ineffective. The intervention of Robert F. Kennedy Jr, U.S. Secretary of Health and Human Services was ill-advised and possibly counterproductive.  The claim that the ostriches had been hyper-immunized against specific antigens was a spurious justification to preserve the flock given the rigidity of the CFIA.

The Universal Ostrich episode is an example of apparachiks implementing regulations that should be interpreted based on established scientific principles.  The owners have been deprived of their flock that did not represent any risk to commercial poultry in November 2025. Depopulation did nothing to eradicate HPAI that is constantly introduced on to farms by wild migratory and possibly resident birds.  The futility of this exercise is exemplified by the ongoing outbreaks of HPAI in flocks in a number of Canadian provinces.

 To end with a Dickensian theme, the lyrics of the Broadway show, Oliver based on the eponymous novel, has Fagin stating, “I think I have to think it out again.”  This would be sage advice for the CFIA. They should have recognized the futility of depopulation in November 2025, an action carried out without determining either the infective or antibody status of the flock.

Zoe Rosenberg an exponent of Direction Action Everywhere (DxE) “welfare theater” was found guilty on a number of charges including trespass, theft and conspiracy. The verdict relates to an incident involving illegal intrusion into a Petaluma, CA. Perdue Farms plant. The jury summarily rejected claims of “rescue” and “welfare” to justify her actions

In past years, DxE activists have broken into numerous California poultry facilities and posed a farm or plant employees and committed various misdemeanors and felonies.

It is possible that illegal entry into California farms may have introduced infection or predisposed flocks to pathogens.  There is no morality in stealing poultry from farms in the guise of “rescue”.  The actions of DxE members are intended to generate publicity for their cause and to satisfy an innate compulsion to damage intensive livestock production. 

Advocacy is permissible.  Extreme zealotry resulting in criminal action cannot be condoned.  Members of DxE are entitled to their beliefs and can express their views but only within the law.  Once they cross the line they are no longer activists but criminals.

Target has introduced a new policy intended to improve customer satisfaction.  Associates are now encouraged to smile and interact with customers.  If incoming CEO Michael Fiddelke considers this to be the solution to declining sales and traffic, Target will continue to languish in financial performance.  At my local Target Superstore in Durham, NC. where this commentator occasionally shops, smiles from associates would be welcomed if there were in fact associates.  Rows of unmanned checkout stations result in congestion at the few that operate.

According to the November 19^th release of Q3 2025 financials, the company earned $689 million on revenue of $23,270 million with a diluted EPS of $1.51 million.  This compares with Q3 2024 net earnings of $854 million on revenue of $25,668 million with a diluted EPS of $1.85. 

Gross margin was 28.2 percent compared to 28.3 percent in the corresponding third quarter of 2024.  Operating margin declined from 4.4 percent to 3.8 percent. Comparable same store sales were 3.8 percent lower consistent with a 1.5 percent decline in total sales.

In commenting on the quarter, incoming Fiddelke noted, “We continue to focus on the important work to deliver on our three key priorities:  solidifying our merchandizing authority, elevating the shopping experience and further harnessing the power of technology to move at greater pace and consistency.”

Target guidance included a low-single digit decline in sales and full year EPS of $7.70 to $8.70 on a GAAP basis. Litigation, severance settlements and asset charges will reduce diluted EPS to a range of $7.00 to $8.00.

The SE outbreak attributed to eggs produced by County Eggs, LLC located in Lucerne Valley, CA. is now officially over.  Laboratory investigations confirmed 105 cases in 14 states with patients ranging in age from infants to 90 years.  It is significant that approximately 20 percent of confirmed cases required hospitalization. Cases extended from January 7^th to August 14^th 2025. Given the known disparity between actual and confirmed cases, CDC estimated that as many as 3,000 consumers may have been affected. 

The outbreak was initially detected using the PulseNet System.  Whole genome sequencing confirmed the commonality of isolates from patients and with trace-back to the implicated farm.  It is significant that the SE isolate involved was resistant to nalidixic acid and ciprofloxacin, widely used as an antibiotic to treat bacterial infections including salmonellosis.

Given that infected flocks were allowed outside access, County Eggs, LLC will have difficulty in decontaminating soil in the vicinity of houses.  Since the implicated eggs were sold from July through September, it will be interesting to learn of the results of routine mandated environmental sampling since this would denote the sensitivity of current surveillance procedures.  Details of the vaccination status of flocks would also be of interest.

EGG-NEWS strongly endorses the appeal to U.S. trade officials to establish a policy to ensure  regular availability of vitamins and synthetic amino acids.  According to a study conducted by the Institute for Feed Education and Research of the American Feed Industry Association (AFIA), the U.S. requires approximately 425,000 metric tons of the major essential amino acids and 50,000 metric tons of vitamin supplements to produce 250 million metric tons of feed annually.

At issue is the reliance of the U.S. on the Peoples Republic of China.  Over decades, major additive manufacturers located in the U.S. and the EU established production facilities in China to synthesize vitamins and amino acids. This approach was based on minimizing cost, favorable government support and relative freedom from environmental restraints that exist in Europe and the U.S. Our reliance on China has created vulnerability paralleling the situation with pharmaceuticals and their precursor compounds.

AFIA President and CEO, Constance Cullman stated, “New data now makes it impossible for policymakers to ignore an alarm that has grown too loud and too threatening to dismiss.” Ms. Cullman added, “The animal feed industry appreciates the Trump Administration and lawmaker recent action to discuss this critical issue and is looking forward to working together with others across the food and agriculture value chain to develop risk-and science-based solutions that promote a more reliable stable future food and feed supply.”

Production efficiency, especially for monogastric species would be seriously impaired with shortages of critical ingredients including amino acids, Vitamins D and E and some B Vitamin compounds that currently are supplied almost entirely by China.

Short term solutions include negotiation and leverage using tariffs. Over the intermediate period sourcing from the E.U. or from reputable manufacturers in Asia should reduce reliance on China. Long-term the U.S. must consider onshoring to establish secure supplies of critical ingredients.

The Board and management of the Kroger Co. have reviewed the considerable capital investment made by the previous CEO Rodney McMullen in Ocado mechanized installations functioning as centers for a hub-and-spoke delivery model. The original plan involving equity in the UK provider of automated warehousing involved numerous fixed installations with hub facilities to deliver groceries directly to homes. Given the considerable investment and possibly technical problems encountered with the initial installations have prompted a re-evaluation of policy following the departure of the previous CEO.  Kroger will close three Ocado fulfillment facilities taking a $2.6 billion charge during the third quarter of FY 2025.

The company has now announced a hybrid approach incorporating store-based fulfillment with third-party delivery services but with retention of viable automated fulfillment centers.  Kroger is now working closely with Instacart and DoorDash with the prospect of an affiliation with Uber Eats to combine grocery and meal deliveries.

In retrospect, the McMullen initiative was over-ambitious and incurred high up-front capital costs.  Since the concept was conceived and implemented during the COVID period, there have been profound changes in the grocery market, with a return by consumers to brick-and-mortar locations, the rise in club stores and the growth of alternative delivery systems through increased efficiency and consolidation. These factors reduced the relative ROI from the Ocado fulfillment centers.  The apparent failure of the hub-and-spoke distribution is exemplified by an early initiative by Kroger to enter the Florida grocery area without supermarkets in an attempt to compete with established grocery retailers including Publix.  On face value this approach was highly speculative with reality becoming apparent over the past two years.

Following the acquisition by JBS of half the equity of Mantiqueira, a major egg producer in Brazil, the parent company indicated that it would establish a presence in the U.S.  To this end, Murilo Scarpa Pinto, son of Leandro Pinto, the founder of Mantiqueira moved to the U.S. to spearhead the company involvement in the domestic egg industry.  The initial strategy was to purchase an existing large egg company and to concurrently plan and erect a complex of up to two million hens.

This past week JBS USA announced the purchase of the family-owned Hickman’s Egg Ranch headquartered in Arizonia but with a partly-owned subsidiary, Central Valley Eggs located in California.  In announcing the acquisition Wesley Batista Filho CEO of JBS USA  noted, “By partnering with the Pinto Family through MTQ USA, we are creating strong synergies that will enhance collaboration, improve efficiency, and accelerate innovation.”  He added, “We see significant opportunity to deliver more value to customers across the country.”

The acquisition follows the loss to HPAI of almost six million hens comprising the Arizona complexes owned and operated by Hickman’s Egg Ranch. Glenn Hickman , CEO recently stated, “The trauma of going from six million chickens down to nothing in a period of three weeks is more than our family wants to take a chance on again.”

In an interview with a local television station Hickman criticized the USDA policy on control of HPAI stating, “The federal government has declined to become involved and try to figure out solutions and protection for our flocks.”

Given the challenges of restoring the Hickman’s flocks, restructuring and adapting the culture to the corporate requirements of JBS will occupy management in the intermediate term. Accordingly erection of a green field complex in either Utah or Colorado may be deferred.  There will be obvious challenges in applying production practices and policies appropriate to Brazil that will be applicable to the U.S. market.  In addition, much of the expertise of JBS in broiler production and marketing will be inappropriate to the U.S. situation.

The Mantiqueira acquisition of Hickman’s Egg ranch is the second investment by Brazil in the U.S. industry in 2025. Hillandale Farms was acquired in May by Global Eggs S.a.r.l. controlled by entrepreneur Ricardo Faria as a going concern. The two operations, functioning under ownership by companies with roots in Brazil will amount to 26 million hens representing eight percent of the U.S. nominal flock of 325 million hens. 

Dr. Clovis Rayzel, president and CEO of Big Dutchman Inc. will retire at the end of 2025 after 28 years with the company.  He has extensive experience in field production of poultry and hogs  in the Americas, Europe and Asia where he has been involved in international marketing and sales.

During the transition to his retirement, EGG-NEWS had the opportunity to review his career and share his views on current events and future trends in the egg industry for the benefit of subscribers.

EGG-NEWS:  Clovis, please describe your background and training.

CR:  I graduated from the University of Santa Catarina, Brazil with a doctoral degree in Veterinary Medicine in 1985.  Thereafter I undertook graduate studies through the International Agricultural Center in Wageningen, the Netherlands in 1993 and completed a Master of Science in Animal Production at South Dakota State University in 1995.  My formal training was supplemented by extensive interaction with the industry through attendance at national and international meetings, tradeshows and frequent travel on four continents

EGG-NEWS:  Your early career involved direct contact with farmers, flocks and herds. Please expand on your activities.

CR:  From 1986 through 1997 I functioned as a Field Service Veterinarian advising members of two major cooperatives in Santa Catarina State. Advancing to the Cooperativa Central Aurora in Chapeco SC, I served as the Department Manager for Animal Nutrition and Feed Production.  This cooperative incorporated sixteen affiliate groups with over 5,000 employees processing six million broilers and 100,000 hogs annually.

EGG-NEWS:  When did you join Big Dutchman?

CR:  In 1997 I was appointed as Sales and Marketing Manager for Latin America based in St. Peterburg, FL.  This position required extensive travel among nations in Central and South America, participating in the expansion of poultry and swine industries in both developing and developed regions.

EGG-NEWS:  When did you move to Michigan?

CR:  With my August 2001 appointment as Vice-president, International Sales and Marketing. Subsequently in 2005 I was appointed as president and CEO of Big Dutchman Inc. with responsibilities for Canada, the U.S., Latin America and Caribbean.  Currently Big Dutchman AG., the parent company, has a presence in over 100 nations designing and manufacturing equipment and systems for poultry and swine with affiliates in plant production and agricultural technology for sustainability and productivity.

EGG-NEWS:  Please describe some of your accomplishments in your position as president and CEO.

CR:  We have built a strong team that has contributed to the success of the egg industry in regions of my responsibility. We have a strong distributor network to support expansion and retrofits, and are fully prepared to interact directly with farmers when that is the preference. I believe we are the leaders in technology required for the transition from conventional cages to alternative systems including both aviaries and barn housing.

EGG-NEWS:  Kindly share your appraisal of the U.S. egg industry including growth prospects and trends in housing and equipment.

CR:  The key consideration will be the rate of expansion in relation to profitability and return on investment.  The trajectory of implementing alternative systems appears to be slowing after the rapid transition over the past decade.  The industry appears to have bifurcated with aviary systems for large in-line complexes and barn housing with or without outside access for both vertical and horizontal integration.  We have witnessed the emergence and expansion of companies supplied by independent contractors specializing in packing and marketing.  In some respects, the barn segment of the U.S. model is paralleling traditional systems in the EU.

EGG-NEWS:  Do you foresee major changes in housing systems over the next five years?

CR:  Big Dutchman has been a leader in innovation among alternative systems with true aviaries that optimize both production and welfare.  Currently production parameters in aviaries are approaching cage housing with respect to egg production, livability, and feed consumption. There is still a positive differential in revenue for cage-free eggs that offsets higher labor and feed costs for non-confined housing. Irrespective of systems, Big Dutchman is allowing producers to optimize genetic potential of brown and white-feathered strains through appropriate design, project implementation and after-sales guidance and service,

EGG-NEWS:  Do you foresee continued use of cages?

CR:  Undoubtedly markets will support confined housing for a significant proportion of the national flock.  We continue to deliver enrichable cages that can be converted at some later time to enriched modules.  It is possible that the industry under coercion and pressure by animal rights groups adopted aviaries and floor systems during the 2010s. to the exclusion of colony modules. For a variety of reasons the Industry rejected enriched modules that were in fact accepted in principle by HSUS under the abandoned “Egg Bill” that would have established a national housing standard.  In an environment characterized by uncertainty as a result of litigation and lobbying, the industry must exercise flexibility.  In response to the needs of the industry Big Dutchman offers a comprehensive range of alternatives to support producers.

EGG-NEWS:  Do you have any messages for the industry?

CR:  Be aware of consumer needs and respond appropriately, be it welfare, technology or other aspects of housing.  Avian influenza has become a major factor in determining price and profitability.  It is evident that the infection is endemic throughout the world’s poultry populations, will persist and that biosecurity alone does not provide absolute protection.  Alternative  modalities including vaccination will be necessary to maintain productivity.  The egg industry should continue to stress nutritional value and should strive to achieve uniformly high quality with freedom from foodborne infection.

EGG-NEWS:  What are your plans for retirement?

CR:  I will remain in contact with the industry and will serve as a consultant to Big Dutchman sharing my experience and contacts on this and other continents.

EGG-NEWS:  Thank you Clovis and wishing you well in the coming years.