Poultry CEO'S:
You May Have a $60 Million Opportunity!
Prepared by:
Roy E. Carawan, Extension Food Specialist
North Carolina State University
and
Bill Merka, Extension Poultry Scientist
University of Georgia
Published by: North Carolina Cooperative Extension
Service
Publication Number: CD-24
Last Electronic Revision: March 1996 (JWM)
As a chief executive officer, you are no doubt aware
that water and sewer costs for some poultry processing
plants have risen almost tenfold during the last two
decades. But did you know that the upward trend is
projected to continue at the same rate or higher?
Poultry processors in the
United States slaughtered
more than 4.6 billion broilers in 1986. Assuming that
the average plant used 7 gallons of
water to process each bird, 1986
water usage by the broiler industry
totalled more than 32 billion gallons.
Some plants have cut water consumption and now use less than 4
gallons per bird. If all broiler plants
reduced water usage to that level,
the industry would save about 14
billion gallons annually, enough for
a city of 100,000 people.
The wastewater from broiler plants
contains many potential pollutants.
In terms of biochemical oxygen demand (BO D5), the waste load of
many plants is 65 pounds or more
per thousand broilers. If the average
plant discharges that much BO D5,
the annual load from the broiler processing industry totals almost 300
million pounds—about as much as
is produced by a city of 51/2 million
people.
Some plants discharge as little as 30
pounds of BOD5 per thousand
broilers. If plants reduced their
discharge to that level, about 160
million pounds of BOD5 per year
could be eliminated.
Opportunities
To Save Money
Poultry processors are finding that
water and sewer charges have increased more rapidly than most
other expenses. Some poultry plants
have seen water and sewer costs increase
by a factor of five or ten during the past 25 years. If the entire
poultry industry could successfully
conserve water and reduce waste
load, more than $58 million could
be saved annually.
At typical water prices, cutting
water use from 7 gallons to 4
gallons per bird would save about
$5.70 per thousand broilers processed. Reducing the waste load from 65
pounds of BOD5 to 30 pounds would
save another $7.00 per thousand
broilers. Considering the 4.6 billion
birds processed each year, here's
how those savings add up for the industry as a whole:
Annual water cost savings at $5.70 per thousand broilers ....... $26,220,000
Annual surcharge savings at $7.00 per thousand broilers ........ $32,200,000
Total annual savings ................... $58.420,000*
* •Based on water charges of 90 cents per
thousand gallons, sewer charges ot $1.00
per thousand gallons, and a BODs surcharge of 20 cents per pound.
Why Is Reducing Water
Use and Waste Load
Especially Important Now?
Regional water shortages, new pollution regulations, and new policies on
water pricing make water conservation more important now than ever
before. Our southern states, where
the majority of the nation's poultry
is processed, struggled under a
severe drought in 1986. Many plants
were faced with conserving water or
curtailing production.
As the U.S. Environmental Protection
Agency (EPA) tightens restrictions
on the quality of water consumed and wastewater released into
the environment, water costs will
probably rise even more rapidly than
in the past.
Water conservation and waste reduction
are becoming much more important because:
- • Water costs and sewer cnarges
are on the rise;
- • Water quality and availability are
threatened by increased consumption and pollution in many areas;
- • Pollution is being aggressively atacked by public agencies and the
public at large;
- • Future regulations will require
water conservation and elimination of pollutant discharges;
- • A corporation's image can be tnished and its sales hurt if its
plants are perceived as harming
the environment.
- • Enforcement actions are becoing more severe and may involve
not only lawsuits and fines but
even prison terms.
Questions for Your Management Team
Here are some things for your management team to consider as you think
about your company's water use and waste discharges:
- • Have your plants experienced a rapid rise in water and sewer charges?
- How much could you save by reducing water use from its present level to
4 gallons per broiler? How much could be saved by cutting BOD5
discharges to 30 pounds per thousand broilers?
- Do you supply your own water at some plants? How much does this
water cost? Is the supply dependable? How is the quality? How will these
factors affect future expansion?
- If you treat your plants' wastewater or pretreat it, have you computed
what this treatment costs, including proper sludge disposal?
What Can You Do?
If you're the chief executive officer of a firm with 10 percent of the U.S.
broiler production, you may have a $6 million opportunity. Reducing water
use and waste load now could save you that much money next year. If water
and sewer costs increase tenfold over the next decade, you may be able to
save $60 million annually by 1998. Here are some suggestions to help you
conserve:
- • Ensure that plant managers measure water use daily or at each shift
change.
- • Emphasize to personnel at all levels that conserving water and reducing
waste load are sound business practices.
- • Appoint someone in each plant to be responsible for water conservation
and waste reduction practices and for monitoring their effectiveness.
- • Provide a training program for your managers and employees.
- • Show by your interest and example that you take water conservation and
waste reduction seriously. Helping your personnel develop the proper
attitude is 90 percent of the battle. It starts at the top.
For further information, see Extension publication CD-20, Liquid Assers for Your
Poultry Plant, and CD-22, Poultry Processors: You Can Cut Waste Load
and Sewer Surcharges.
For copies of these and other publications in this series, call your county Extension agent
or write to Food Science Extension, North Carolina State University, Campus Box 7624,
Raleigh, North Carolina 27695-7624.
This publication was supported in part by the North Carolina Board of Science and
Technology in cooperation with tbe North Carolina Pollution Prevention Pays
Program.
Distributed in furtherance of the Acts of Congress of May 8 and June 30,
1914. Employment and program opportunities are offered to all people
regardless of race, color, national origin, sex, age, or disability. North
Carolina State University, North Carolina A&T State University, U.S.
Department of Agriculture, and local governments cooperating.
CD-24