UK & IRELAND KFC Annual Progress Report On Chicken

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UK & IREL ANDCopyright FAI Farms 2021KFC AnnualProgress Reporton Chicken WelfareJuly2021

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

ForewordPaula MackenzieMANAGING DIRECTOR, KFC UKAND IREL ANDWe’re really pleased to publish our 2nd annual,chicken welfare progress report providing anopen and honest account of our performanceto improve the lives of chickens.COVID-19 made 2020 a year like no other,impacting everyone from our farmers tofranchisees but the welfare of our chickenremains a top priority for the KFC businessin UK & Ireland.Alongside COVID-19 our suppliers andfarmers also had to contend with thechallenge of Avian Influenza over thewinter. In this year’s report you will seethat we have improved in some measuresand not in others. Both COVID-19 andAvian Influenza may have contributedto this. However, we are confident thatanimal husbandry and welfare has been,and continues to be, a high priority forour suppliers and farmers.Despite huge challenges, we’ve beenin ongoing discussions with our supplierson the roadmap to delivering the BetterChicken Commitment, undertaking worklooking at innovation in the supply chain,ranging from housing, to feed and carcassutilisation. We’ve supported a series ofworkshops with suppliers, academics,assurance bodies and farmers lookingat the challenges and opportunities ofsystem change. We have been activelysupporting our partners Moy Park andCompassion In World Farming (CIWF) onapproval of a new breed of chicken thathas the potential to deliver the welfarebenefits associated with slower growingbirds, while mitigating some of theassociated commercial and environmentalchallenges highlighted in last year’s report.If approved this could be a significantmilestone in driving adoption of slowgrowing breeds across the industry.Our animal welfare programme continuesto evolve, and we have credible partners inboth NSF and FAI Farms to help us on ourjourney. NSF are undertaking our animalwelfare audits, whilst FAI Farms work withus on our KPI programme and are supportingwork with our suppliers to help delivercontinuous improvement in animal welfarewithin our chicken supply chain throughdata and tailored advice.5

The KFC ContinuousImprovement ProgrammeKFC Welfare StandardsThe purpose of KFC UK & Ireland’s welfare programmeis to identify, report and drive meaningful improvementon key welfare issues. All suppliers provide FAI withmonthly submissions of key performance indicators (KPI)that cover critical areas of health, production, and welfareof chicken on farm and at slaughter. Through analysisand supplier benchmarking, KFC UK & Ireland identifywhere good levels of welfare are achieved, and whereimprovement efforts should be targeted.KFC Western Europe’s animal welfarestandards cover the entire chain frombreeder rearing through the 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, KFCUK & Ireland are now supporting suppliers to develop theirown 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 supply toKFC UK & Ireland.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 collatedand reported by FAI from the KPI data provided by KFCsuppliers. Results have been weighed based on volumesupplied to KFC UK & Ireland.2020 Welfare KPI Performance Summary – weighted dataOUTCOMEKFC KPI DATA POINT20192020% SUPPLY REPORTED 2020EnrichmentDaylight Provision %52.2866.9598.4Enrichment Provision %52.2564.8898.1Overall (mg/kg)21.3216.471007 Day (mg/kg)4.954.3195.4HPCIA (mg/kg)4.452.8599.7BreedHigh Welfare %2.651,7397.8Stocking densityBelow 30 kg/m²1.01.6100WelfareMortality4.04.37100Leg culls0.860.8490.1Foot pad dermatitis34.9437.07100Hock burn12.1714.42100Breast blister0.250.15100Controlled AtmosphereStun %62.057.1100Abx UseCOVID-19 and Avian InfluenzaIn this report, there has been a decline inperformance on some key measures such as hockburn, foot pad dermatitis and mortality as well as anincrease in average 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 tooself-isolate. Delays in bird movements and keepingthem on farm for longer can lead to planned stockingdensities being exceeded and increased mortalities.This in turn will make bird husbandry and housingmanagement more difficult. There can lead toincreased pressure on the bedding condition inthe houses, which can have a direct impact onhock burn and footpad dermatitis.Daylight and EnvironmentalEnrichment ProvisionThe KFC Welfare standard encourages suppliersto provide both natural daylight and environmentalenrichment. These two factors play an important rolein encouraging birds to exhibit their natural behaviors.This is beneficial for both the physical and mentalwellbeing of the birds to improve their quality of life.Daylight and enrichment provision have bothincreased across the KFC supply. The figure reportedfor 2020 is based on supply reported to KFC inDecember. This amount will vary due to the natureof the supply base and the production cycles duringthe year. Currently, 55% of KFC UK and Ireland supplyis sourced from suppliers who have 100% daylightprovision across all farms. 60% of supply for KFC UK& Ireland is sourced from suppliers who have 100%environmental enrichment provision across all farms.During 2021 the way these measures are beingcollected is changing to allow more accuratereporting moving forward.Use of Higher Welfare BreedsCompared to last year KFC UK and Ireland havea lower percentage of higher welfare breeds withintheir supply chain. This is an unintended consequenceof volume changes.Antibiotic UsageThere has been a downward trend across all KPIsrelating to antibiotic use, highlighting the improvementssuppliers are making to their management practicesto help address issues around antibiotic resistance.The responsible use of antibiotics within KFC UK& Ireland supply chains remains a key priority. KFCacknowledge that to maintain and protect bird welfarestandards, there may be times when birds needtreating with antibiotics. Ensuring that antibiotics areused only when needed and under direction of a vetcan help mitigate antimicrobial resistance and protecthuman and animal health. 2020 reporting showstotal antibiotic use at its lowest levels since 2015at 16.47 mg/kg compared to 33.76mg/kg in 2015.This coincides with a reduction in the use of HighestPriority Critically Important (HPCIA) antibiotics forhuman health. Many of KFC Suppliers have stoppedthe use of HPCIA within their broiler supply chains.The decline in HPCIA usage indicatesWeighted Total Antibiotic Usage (mg/Kg)KFC Database — 6916.4715The above table summarizes KFC UK and Ireland’sperformance across the key welfare KPIs. Measureswhich have improved this year have been highlighted ingreen. Please note that both hock burn and foot paddermatitis are reported based on an absence/presencenot on level of severity. We measure in this way to helpensure standardize recording across supply.810201520162017201820192020Year9

MortalityThis year has seen a slight increase inmortality levels to 4.37% up from 4.00%in 2019. There are many factors that caninfluence mortality rates on farm. Usingthe KPI data collected, mortality levelsare trended and tracked. This allowstrends to be investigated with suppliersto understand the cause, identify bestpractice or target areas for improvement.Foot pad dermatitisWeighted Mortality (%)KFC Database — 04.154.124.054.004.003.95In general, KFC UK and Ireland’s footpad dermatitis levels have been trendingdownwards since 2015, however therewas a slight increase in 2020 with aprevalence of 37.07%. Foot pad dermatitisis linked to the housing environment, typeof bedding being used and bird husbandry.Foot pad dermatitis is one of KFC’s focusareas for the 2021/2022 continuousimprovement programme with suppliers.3.90Weighted Foot Pad Dermatitis (%)KFC Database — 0Foot Pad Dermatitis (%)Weighted Leg Culls (%)KFC Database — 2015–20200.9000.860.780.6750.80.810.840.69Hock burn0.4500.2250.000201520162017201820192020Leg Culls (%)Breast blisterLevels of breast blisters within the KFCUK & Ireland supply chain remains low.Incidences of breast blisters are linked tobedding management and bird husbandry.There has been a decrease in breastblister prevalence in 2020 to 0.15%compared to 0.25% in 2019, accompaniedby an increase in the number of suppliersreporting against this KPI. This indicatesan improvement on the already low levels.2018Mortality (%)Leg cullsLeg culls are monitored as an indicatorof leg health and walking ability. 2020levels remain largely unchanged comparedto previous years. This is not a metric onwhich reduction targets are set to ensurethat farmers cull birds that are lame orthat have reduced walking ability andtherefore prevent suffering. As part ofKFC’s on-farm audits, birds’ walking abilityand the farmers approach to culling isassessed. Leading up to 2026 we expectthis KPI to improve as more slow growingbirds, which demonstrate improved walkingability, enter the KFC supply chain.2017Weighted Breast Blister (%)KFC Database — 2015–2020Hock burn is another key indicator forchicken welfare. Reported levels haveincreased since last year. KFC’s independentauditors assess levels of hock burn andbedding quality as part of the KFC auditprogramme. Suppliers are required totake corrective actions when unacceptablelevels are identified. The continuousimprovement programme over 2021/2022 will focus on providing targeted,best practice advice and support to helpaddress hock burn levels.Weighted Hock Burn (%)KFC Database — 14.42201520162017201820192020Hock Burn 620170.03201820192020Breast Blister (%)1011

Maximum Stocking DensityStunning SystemKFC UK and Ireland’s welfare standards state that themaximum planned stocking density permitted is 38kg/m2. Stocking densities which exceed this limit at auditare a critical indicator of failure to comply with the keystandards. Suppliers consistently exceeding this levelare excluded from KFC supply.KFC UK & Ireland require that all birds arestunned prior to slaughter. There has been a slightreduction in the proportion of birds killed usingControlled Atmosphere Stunning (CAS) from 62%in 2019 to 57% in 2020. The remaining 43% of birdswere killed using electric water bath. This slight changeis linked to 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 slightlyto just over 2%. 27% of KFC supply had an actualmaximum stocking density of between 30 and 33kg/m2. There has been an increase in actual maximumstocking densities of over 38kg/m2, to 8%. There wasno incidence of this exceeding 40kg/m2. This issuerelates to a small number of suppliers. Where this hasoccurred, it has been investigated. KFC suppliers haveconfirmed that this is associated with the impactof COVID-19 and Avian Influenza resulting in delaysin moving birds from the farm.Weighted Broiler Stocking DensityKFC Database — 20208% 30 Kg/m230 - 33 Kg/m2Weighted Broiler Stocking DensityKFC Database — 2020Controlled AtmosphereElectric Waterbath27%43%33 - 38 Kg/m257%38 - 42 Kg/m263%1213

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 for greaterinsights into performance across the KFC supply base.This will enable more targeted support and advice.Collecting data from a supply base increases transparencyand understanding of a supplier’s performance and practices.However, simply collecting data alone doesn’t necessarily drivechange. The way people use their data does. Change takeseffort and collaborative working, with every part of the supplychain having a role to play.KFC work with suppliers to continue to improve the welfareof the animals that all their businesses rely on. FAI are pleasedto be supporting the implementation of KFC's continuousimprovement programme. By collecting supply chain data,we can make targeted improvements while truly quantifyingthe welfare benefits 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 UK & Ireland’s welfare programme is to identify, report and drive meaningful improvement on key

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