WESTERN EUROPE KFC Annual Report On Chicken Welfare

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WESTERN EUROPECopyright FAI Farms 2021KFC AnnualReport onChicken WelfareJuly2021

ContentsForeword5The KFC ContinuousImprovement Programme6KFC Welfare Standards7KPI Performance for 20208Focus Areas for 2021/22and Closing Remarks14

ForewordDavid MoranCHIEF SUPPLY CHAIN OFFICER,KFC WESTERN EUROPEChicken welfare is a serious business. For nearly twodecades, we have been on a journey to drive improvedstandards of welfare and advance the lives of millionsof chickens in our supply. We have invested in systemsto monitor and report on welfare outcomes across ourentire supply chain, which has enabled us to achievegreater transparency as well as accountability.That’s why we are pleased to share thesecond edition of our annual welfarereport for Western Europe, providing anopen and honest update on the progresswe’ve made as well as the areas whereimprovement is still needed.With the additional challenges broughtabout by COVID-19 and a particularlytough 2020 winter for avian flu, we knowthat we must work even harder with ourpartners and suppliers. That’s why we areextremely lucky to have credible partnersin both NSF and FAI Farms to help us aonthis journey. NSF are undertaking ouranimal welfare audits, whilst FAI Farmswork with us on our KPI Programme,supporting our suppliers to help delivercontinuous improvement in the welfareof the animals on the farms in oursupply chain.Following the signing of the EuropeanBetter Chicken Commitment, we continueto make progress around understandingthe roadmap to deliver this with oursuppliers, exploring innovations in areassuch as housing, feed and carcassutilisation, which will allow us to makethe progress that we need together. Ourpartnerships with Moy Park and Compassionin World Farming have allowed us to playan active role in the process for theapproval of the Redbro Chicken as a slowgrowing BBC breed. This will be a significantdevelopment in the journey towards theadoption of slow growing breeds acrossthe industry.But we know there is still a lot more to do.As we continue to serve the most deliciouschicken, we will continue to ever-improveits quality — and we believe that greatquality starts with higher animal welfarestandards on farms. That’s why we aregoing to keep pushing and reporting andcontinue to lead on promoting transparency.5

The KFC ContinuousImprovement ProgrammeKFC Welfare StandardsThe purpose of KFC Western Europe’s welfareprogramme is to identify, report and drive meaningfulimprovement on key welfare issues. All suppliers provideFAI with monthly submissions of key performance indicators(KPI) that cover critical areas of health, production,and welfare of chicken on farm and at slaughter. Throughanalysis and supplier benchmarking, KFC Western Europeidentify where good levels of welfare are achieved, andwhere improvement efforts should be targeted.KFC Western Europe’s animal welfarestandards cover the entire chain frombreeder rearing through to slaughter.These standards require suppliers to adhere to the following requirements: All EU animal welfare legislation must be met as a minimum. The use of cages or multi-tier systems is prohibited. The use of birds from genetically modified or cloned livestock is prohibited. The use of antibiotic or hormonal growth promotors is prohibited. Maximum live animal transport times must not exceed 8 hours. Suppliers must work to a maximum planned stocking density of 38kg/m2. All birds must be stunned prior to slaughter. Mutilations of broilers is prohibited.Alongside the established audit and KPI programme, KFCWestern Europe are now supporting suppliers to developtheir own specific improvement plans. During meetings withsuppliers, held with FAI either onsite or remotely, supplierspecific data is reviewed in detail and advise is providedto help develop targeted Improvement Plans. Supplierimplementation and performance will be tracked againstthese plans. Priority is given to the 30% lowest performingsuppliers weighted by the volume of product they supplyto KFC Western Europe.6All supplies are audited by an independent 3rd party against these standards.In 2020, KFC moved from a 15-month to 12-month auditing frequency.More details on the KFC Western Europe Farm Animal Welfare Programmecan be found here.7

KPI Performance for 2020All data within this report has been independently collated and reportedby FAI from the KPI data provided by KFC suppliers. Results have beenweighed based on volume supplied to KFC Western Europe.2020 Welfare KPI Performance Summary – weighted dataOUTCOMEKFC KPI DATA POINT20192020% SUPPLY REPORTED 2020EnrichmentDaylight Provision %53.6551.2895.8Enrichment Provision %63.1743.8395.6Overall (mg/kg)20.5220.261007 Day (mg/kg)7.634.9796HPCIA (mg/kg)4.293.7899.8BreedHigh Welfare %2.104.1990.5Stocking densityBelow 30 kg/m²0.581.00100WelfareMortality3.983.90100Leg culls0.830.8090.1Foot pad dermatitis35.3838.04100Hock burn12.5611.08100Abx UseCOVID-19 and Avian InfluenzaIn this report, there has been a decline inperformance in hock burn as well as an increasein average actual stocking densities from certainsuppliers. COVID-19 and Avian Influenza may befactors contributing to this. Suppliers and farmersreported challenges due to delays in moving birdsfrom farm because of operational issues at factoriesor biosecurity restrictions, alongside staff having toself-isolate. Delays in bird movements and keepingthem on farm for longer can lead to planned stockingdensities being exceeded. This in turn will make birdhusbandry and housing management more difficult.This can lead to increased pressure on the beddingconditions in the houses, which can have a directimpact on hock burn levels.Daylight and EnvironmentalEnrichment ProvisionKFC Western Europe’s welfare standard encouragessuppliers to provide both daylight and environmentalenrichment, this is a priority area for KFC. These twofactors play an important role in encouraging birdsto exhibit their natural behaviors. This is beneficialfor both the physical and mental wellbeing of thebirds to improve their quality of life.Daylight and enrichment provision have decreasedthis year across KFC Western Europe supply. Thefigure for 2020 is based on supply reported to KFCin December. Due to the nature of the supply baseand production cycles this number will fluctuatethroughout the year. Currently, 35% of KFC WesternEurope supply is sourced from suppliers who have100% daylight provision across all farms. 39% ofsupply for KFC Western Europe is sourced fromsuppliers who have 100% environmental enrichmentprovision across all farms. During 2021 the way thesemeasures are being collected is changing to allowmore accurate reporting moving forward.Use of Higher Welfare BreedsIt is encouraging to see the higher percentage ofhigher welfare breeds up by 0.5% to 1% of supplywithin the KFC Western Europe supply chain, perhapsreflecting the change that is occurring across thewider chicken industry.Antibiotic UsageThere has been a downward trend across all antibioticuse KPIs, highlighting the changes suppliers aremaking to their management practices to helpaddress issues around antibiotic resistance. Theresponsible use of antibiotics within Western Europe’ssupply chains remains a key priority. KFC acknowledgethat to maintain and protect bird welfare standards,there may be times when birds need treating withantibiotics. Ensuring that these are used only whenneeded and under direction of a vet can help mitigateantimicrobial resistance and protect human andanimal health. 2020 reporting shows total antibioticuse similar to 2019, at 20.26 mg/kg. There has beena significant reduction in usage when compared to32.73mg/kg reported in 2015. This coincides witha reduction in the use of Highest Priority CriticallyImportant Antibiotics (HPCIA) for human health. Manyof KFC suppliers have stopped the use of HPCIA withintheir broiler supply chains. The decline in HPCIA usageindicates progress towards KFC’s goal of eliminatinguse of these across their supply chain.Weighted Total Antibiotic Usage (mg/Kg)KFC Database — 2015–202035StunningBreast blister0.280.21100Controlled AtmosphereStun 815The above table summarizes KFC Western Europe’sperformance across the key welfare KPIs. Measures whichhave improved in 2020 have been highlighted in green.Please note that both hock burn and foot pad dermatitisfigures are reported based on an absence/presence noton level of severity. We measure in this way to help ensurestandardize recording across supply.810201520162017201820192020Year9

MortalityMortality levels in the KFC Western Europesupply chain are at their lowest levelssince 2015 at 3.9% and have been on adownward trend since 2017. It is good tosee this alongside the changes being seenin antibiotic use.Foot pad dermatitisWeighted Mortality (%)KFC Database — 2015–2020In general, KFC Western Europe’s footpad dermatitis levels have been trendingdownwards since 2015, however therewas a small an increase in 2020 witha prevalence of 38.04%. Foot paddermatitis is linked to the housingenvironment, type of bedding being usedand bird husbandry. It is one of KFC’sfocus areas for the 2021/2022 continuousimprovement programme with 4.054.003.983.953.90Weighted Foot Pad Dermatitis (%)KFC Database — 2020Foot Pad Dermatitis (%)Weighted Leg Culls (%)KFC Database — 2015–20200.9000.820.750.6750.790.830.80.66Hock burn0.4500.2250.000201520162017201820192020Leg Culls (%)Breast blisterLevels of breast blisters within theWestern Europe supply chain remains low.Incidences of breast blisters are linked tobedding management and bird husbandry.There has been a small decrease in breastblister prevalence in 2020 to 0.21%compared to 0.28% in 2019 accompaniedby an increase in suppliers reporting thismeasure. This indicates an improvementon the already low levels.02020Mortality (%)Leg cullsLeg culls are monitored as an indicatorof leg health and walking ability. 2020levels remain largely unchanged comparedto previous years. This is monitored as anindicator of leg health and walking ability.This is not a metric on which reductiontargets are set to ensure that farmers cullbirds that are lame or that have reducedwalking ability to prevent suffering.As part of KFC’s on-farm audits, birds’walking ability and the farmers approachto culling is assessed2017Weighted Breast Blister (%)KFC Database — 2015–2020Hock burn is another key indicator forchicken welfare. Reported levels havedecreased since last year and KFC wouldlike to see this trend continue. KFC’sindependent auditors assess levelsof hock burn and bedding quality as partof the audit programme. Suppliers arerequired to take corrective actions whenunacceptable levels are identified. Thecontinuous improvement programmeover 2021/2022 will focus on providingtargeted, best practice advice and supportto help address hock burn levels.Weighted Hock Burn (%)KFC Database — 01520162017201820192020Hock Burn 60.0420162017201820192020Breast Blister (%)1011

Maximum Stocking DensityStunning SystemKFC Western Europe’s welfare standards state that themaximum planned stocking density permitted is 38kg/m2. Stocking densities which exceed this limit at audit,are a critical indicator of failure to comply with the keystandards. Suppliers consistently exceeding this levelare excluded from KFC supply.KFC Western Europe require that all birds arestunned prior to slaughter. There has beena slight reduction in the proportion of birds killedusing Controlled Atmosphere Stunning (CAS)from 58.63%% in 2019 to 53.24% in 2020.The remaining 47% of birds were killed usingelectric water bath. This slight change is linkedto changes in purchased volumes.Suppliers are encouraged to reduce planned maximumstocking densities to 30kg/m2. This year the numberof birds within KFC supply grown at actual maximumstocking densities of 30kg/m2 has increased to 1%.21% of supply had actual maximum stocking densitiesof between 30 and 33kg/m2. There has been anincrease in actual maximum stocking densities of over38kg/m2, to 9%. There was no incidence of thisexceeding 40kg/m2. This issue relates to a smallnumber of suppliers. Where this has occurred, it hasbeen investigated. KFC suppliers have confirmed thatthis is associated with the impact of COVID-19 andAvian Influenza resulting in delays in moving birdsfrom the farm.Weighted Broiler Stocking DensityKFC Database — 2020Weighted Broiler Stocking DensityKFC Database — 2020 30 Kg/m28.8%Controlled Atmosphere21.5%30 - 33 Kg/m2Electric Waterbath33 - 38 Kg/m246.76%68.6%53.24%38 - 42 Kg/m21213

Focus Areas for2021/22 andClosing RemarksFor 2021 and 2022 the priority areas for the continuousimprovement programme are: Antibiotic usage, in particular the use of HPCIA Hock marking Foot pad dermatitisAlongside this, FAI is working with suppliers to implementa more detailed level of data collection allowing forgreater insights into performance across the KFC supplybase. This will enable more targeted support and advice.Collecting data from a supply base increasestransparency and understanding of a supplier’sperformance and practices. However, simply collectingdata alone doesn’t necessarily drive change. The waypeople use their data does. Change takes effort andcollaborative working, with every part of the supply chainhaving a role to play.KFC work with suppliers to continue to improve thewelfare of the animals that all their businesses relyon. FAI are pleased to be supporting the implementationof KFC's continuous improvement programme. Bycollecting supply chain data, we can make targetedimprovements while truly quantifying the welfarebenefits to the animals involved.1415

In 2020, KFC moved from a 15-month to 12-month auditing frequency. More details on the KFC Western Europe Farm Animal Welfare Programme can be found here. The purpose of KFC Western Europe’s welfare programme is to identify, report and drive meaningful improvement on key welfare issues. All suppliers provide

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