S.P.A.C.E., Rennes, FranceSeptember 13-16IEC Annual Conference, AmsterdamSeptember 18-23Livestock Asia 2005, Kuala Lumpur, MalaysiaSeptember 25-27Fiera Avicola 2005, Forli, ItalySeptember 28-October 1UEP Annual Meeting 2005, Washington, USAOctober 5-7XIX Latin American Poultry Congress & Expo, Panama City, PanamaOctober 4-7American Egg Board MeetingOctober 19-21

Dear Customers, The spring/summer issue of EggsPress covered the history of egg grading

and egg packaging. The conclusion of the history can be found in this issue,with the coverage of egg breaking and further processing. As you can see,great strides were made as we review the past. We anticipate much more innovation in the future. One area that is growing in attention is traceability.Eggfusion and Diamond Systems have formed a partnership to exploretraceability and advertising on eggs.

EggFusion has recently been featured on Fox News with the revolution-ary laser etching for eggs. Brad Parker, the company founder, explained thatEggfusion’s technology enables permanent, tamper-proof etching of a dateand traceability code onto individual shell eggs that can be used to lookupadditional data points regarding the eggs origin and distribution. Inherentwith these new USDA approved services are significant benefits forfamilies and institutions that cook and use eggs. Eggfusion is based inDeerfield, Illinois, with their technology center located in Boulder,Colorado. The possibility of advertising on eggs also exists.

Our next issue will continue to cover changes in the business and thetrends as they relate to the egg industry. As always, we welcome yourfeedback and ideas. Please do not hesitate to contact us.

Sincerely,

Craig England

EGGSPRESSFall

E V E N T S C a l e n d a r

BY CRAIG ENGLAND

3

D i a m o n d S y s t e m s E g g s P r e s s N e w s l e t t e r p u b l i s h e d q u a r t e r l y 2005

1visit our website: www.diamondsystem.com

Vice President, Sales and Marketing

The June issue of U.S. Poultry andEgg Association newsletter “Newsand Views”, announced the winnersof the 5th annual Crystal EggAward. Several different categorieswere awarded. Diamond Systemswon for the press kit.

The award is given to companiesthat exemplify superior quality indesign and production of marketingmaterials for the InternationalPoultry Expo. The entries are evalu-ated on design, communicationscontent, achievement of the goaland overall appearance.

The award will be presented at aspecial ceremony during the 2006International Poultry Exposition inAtlanta, GA.

Farmington Hills, Michigan

DDiiaammoonnddWWiinnss

CCrryyssttaall EEggggAAwwaarrdd

“Laser etching andtraceability, a newarea of growingattention and interest.”

BY JIM NIELD

2 visit our website: www.diamondsystem.com

Commercial egg grading began in the early 1900’s. Food com-panies were purchasing surplus eggs from grading operations forcandy manufacturing and bakery products.

As the need for liquid eggs and separated products increased,companies emerged to purchase eggs and manually separate theyolks and whites for sale to bakery, candy and other industries.This was the beginning of the further processing egg industry.In 1912 H.A. Perry, a founder of Seymour Foods, designed a handseparator that became the industry standard for the next 40years. The mechanism improved efficiency to 2.5 cases perhour and created a more sanitary operation.

World War II brought egg drying into prominence. In the1950’s, companies in the further egg processing business recog-nized the high labor costs and began developing their ownbreaking machines as an improvement over hand breaking.Seymour Foods, Milton G. Waldbaum, and Henningsen Foods inthe USA and Sanovo Foods in Europe all developed early break-ing machines. The first breaking machines operated at 14 casesper hour representing a big improvement over the hand break-ing Perry design.

Early Breaking Machines

While the egg grading operations and egg packaging were gain-ing efficiencies in speeds and labor savings, the egg breakerindustry continued to struggle with slow, less efficient singlefile machines. Part of the limitation was the result of the indus-try being in the salvage business. This segment of the industrywas attempting to break and process eggs that were of secondquality, some that had been in storage for extended periods oftime. Government regulations, primarily in the USA andEurope, had many restrictions on the egg breaking machinedesign and acceptable operating speeds. Charles Willsey fromSeymour Foods did make significant advancements in the devel-opment of breaking machines during the 1950’s and 60’s, but hisspeeds were limited because of government regulations.

Diamond began developing an egg breaker in the mid 1960’swith the help of several Leonard Shelton patents. They intro-duced the first 40 case per hour breaker in 1966. Diamond wasthe first to fire two knives into the side of an egg and open theshell halves over a yolk and white cup traveling under thebreaker head. This became the standard design for all popularbreakers today. Diamond further revolutionized the industry

The History ofFurther

Processingand the

Industry Today

with the George Bliss yolk scanner in 1969. This improvedmachine speeds and the quality of the final product.

Diamond discontinued manufacturing its breaker in the early1970’s and became the Sanovo agent for North America, makingimprovements on their European design and ultimately receivedUSDA approval.

The speed allowed to break an egg in 1982 was only one thirdthe speed to grade and package an egg into a carton. One wouldthink the industry should be breaking eggs at higher speeds thanthat of gently grading and packing them. Ko Coenraadts, fromthe Netherlands, developed the first successful multi-row eggbreaker. Although it was popular in Europe, the stationarycracker heads prevented it from receiving the necessaryapprovals by the USDA.

Industry Advancements

Machine speeds continued to create inefficiencies in thebreaking industry into the 1990’s with the ever increasing needfor further processed eggs. In a 1990 presentation at theInternational Egg Commission in San Francisco, Jim Nield envi-sioned entire inline production facilities being built to producefirst quality eggs to be sent directly to breaking machines ratherthan just being in the salvage business. He also envisioned cer-tain egg sizes being sent directly from graders to breakers at thesame location. In 1992 Diamond introduced crack detection.This created a shortage of poor quality eggs going to breakersbecause over pulling of good eggs was eliminated. Now onlycracks were being sent to further processing. With the increaseddemand for pasteurized eggs combined with the shortage of sal-vaged product the need for breaking companies to produce theirown eggs was evident. Within a few years inline breaking com-plexes emerged and the quality of the eggs improved, increasingmachine efficiency and product yield. The increased consumerdemand for pasteurized product pushed the industry into firstquality eggs being sent to egg breaking plants. At the same timethe breaking machines were still single row units struggling at80 cases per hour while grading operations were at 400 cases perhour on shell eggs.

There were 40 years of mechanical hand breaking operationsfollowed by another 45 years of slow, single row breakingmachines operating at 5 to 8 eggs per second. Diamond revolu-tionized the entire industry with the introduction and USDAapproval of a 12 wide breaker/separator operating at 30 eggs persecond in 1996. The initial machine was developed by GiorgioPellegrinelli in Italy and was improved upon by Diamond.George Bliss redesigned the yolk scanner for 12 rows of eggswith advanced electronics and software. The Diamond multi-row breaking and separating machine actually allowed moretime to inspect the eggs as they passed the operator, improvingthe finished egg quality and dramatically increasing the

Mechanical HandBreaking 1940

3visit our website: www.diamondsystem.com

throughput. Today the further processing industry has grown insome countries to 40% of the total egg consumption. There is awide variety of liquid, frozen and dried products being sold topasta companies, bakeries, candy manufacturers, and other foodprocessors. Some egg products are exported all over the world.There are also hundreds of finished and packaged egg productsbeing sold to hospitals, schools, airlines, the military, seniorhousing facilities, restaurants and supermarkets. Today the eggnow comes to us in many nutritional forms.

Diamond has played a very important part in the furtherprocessing industry with its high capacity multi row systems,pre-weighing of eggs on the breaker, invention of yolk scanningand vision for the needs of the industry and consumer. Todaythey provide turnkey breaking plants to meet specific customerand market needs for any region of the world. Diamond and itsemployees can be very proud of the contribution they havemade in the further egg processing industry.

Hemmelgarn & Sons, Inc.Celebrating 75 Years

Coldwater, Ohio

Just a year and a half after a fire nearly destroyed theentire facility, Hemmelgarn and Sons is proudly cele-brating 75 years of supplying eggs around the world.Sunday, June 26th the open house took place, at thefacility in Coldwater, Ohio. “This celebration was tothank the neighbors, customers, vendors, producers andthe public for their continued support” says President,Ron Gross. They have been totally overwhelmed by allthe support that was received shortly after the fire. Theopen house allowed the 1400 visitors who attended toview behind the scenes of Hemmelgarn and see the newsections of the plant added after the fire.

Ed Hemmelgarn started the egg venture in 1930 withjust $35 and a Model T Ford. They began purchasingeggs from a near-by farm and shipped them out at a rateof 20-30 cases per week. Ed would load up his Model Tand put the crates of eggs on the train bound for NewYork. The business continued to grow to over 150-200cases a week by 1934. Just a few years later he purchasedthe dance hall to add grading and candling to the opera-tion. By 1950, the operation had four grading machinesand weekly shipments of 1000 cases. A fire destroyedthe dance hall in 1950 and the operations were rebuilt inthe present location. The business continued to growand Ed’s sons Floyd and Jerry joined the business. In1959 the company incorporated as Hemmelgarn andSons. Today, using two state of the art DiamondSystems 8400 graders, the plant processes 225,000 eggsper hour or 1.8 million eggs daily.

The employees have helped the business prosperthrough market fluctuation, technology changes andtwo disastrous fires. The fire in 2003 resulted in an out-pouring of support from the employees, area residentsand friends. The fire struck on Wednesday and they wereback in business on Saturday because of everyone’sincredible efforts. Ron Gross says the goal has alwaysbeen to supply our customers with fresh eggs. That willcontinue to be our goal in Coldwater, Ohio.

Diamond Systems congratulates Hemmelgarnand wishes them continued success!

Diamond Systems has updated features on the webstore, which was widely introduced in October 2004.Diamond has added a new product category to the webstore, as well as larger comprehensive product photo-graphs starting first in the Innova category.

The recent survey conducted on the DiamondSystems web store revealed that customers would liketo see larger product photos, as well as” in machine posi-tion” pictures wherever possible. Diamond took thefeedback seriously and began increasing the size of thephotos and showing the surrounding area along withadditional parts in the machine. The Innova is the firstproduct line to utilize the new larger images. We ulti-mately plan to update all product pictures throughoutthe store.

Check out the web store for yourself. Free groundshipping is still offered on domestic orders, placedthrough the store.

Just logon to: www.diamondeggspress.com or www.partseggspress.com

You can also find the store on the website:www.diamondsystem.com

Diamond Web Store offersthe Big Picture and More

Farmington Hills, Michigan

Busy times ahead for Diamond. This August we start-ed installation of a series of egg breaking and pasteuriza-tion plants that will keep us busy through the rest of theyear and early 2006. The first of the systems wasinstalled in Colombia, and we are scheduled to installsystems of different sizes in Brazil, Argentina, Belgium,Italy, Mexico, Saudi Arabia, Thailand, United States andVenezuela. We will also be installing several shell cen-trifuges and we will soon announce the test completionon the new SC-800 shell centrifuge capable of han-dling 800,000 shells per hour.

Breaking news

BY SANTIAGO GOMEZ

4 visit our website: www.diamondsystem.com

Dedicated to Egg Breaking

and Further

Processing.

EggsPress is published quarterly by Diamond Systems in an effortto increase industry awareness and foster greater communication with ourcustomers. We welcome your editorial comments and suggestions.Editor: Kyla Remus, Marketing Managerphone: 248.476.7100 extension 3106 email:kremus@diamondsystem.com

We are also finalizing the design of several big projectsthoughout Western and Eastern Europe and in theUnited States, that will include not only the best EggBreaking Systems in the world, but the latest liquidhandling, pasteurizing and spray drying technology.These systems will include state of the art controlspaired with the best components available and designedaccording to CE, 3A and PMO standards.

Diamond EPS-80 Pasteurization System with a capac-ity of 20,000 liters/hr continues to perform after a yearin service. The system includes the latest technology aswell as the highest sanitary standards. The systemincludes the first weld-through holding tube in the USplus an exclusive automatic hydraulic closer with 4independent rams and automatic modulating back-pressure valve among other things. The system isoperated through a color touch screen operator interface.

We are happy to announce the introduction of thenew “High Purity Egg Whites Production System” onour 200S and 400S Egg Breaking Machines. This newsystem is currently producing Egg Whites with fat con-tent below 0.03%, combined with the lowest waterusage per case broken. This new system, combinedwith the highest yield and lowest maintenance costs inthe industry confirms that Diamond Egg breakers arethe best in the world.

Did you know?DDiidd yyoouu kknnooww tthhaatt 11%%mmoorree yyiieelldd iinn aa 11,,000000,,000000 eeggggss ppeerr ddaayybbrreeaakkiinngg ooppeerraattiioonn rreepprreess eenntt ss tthhee ddaaiillyy pprroodduuccttiioonn ooff aapppprrooxxii--mmaatteellyy 1144,,550000 hheennss?? OOrr 33,,665500,,000000 eeggggss iinn oonnee yyeeaarr??DDiidd yyoouu kknnooww tthhaatt tthhee DDiiaammoonndd eegggg bbrreeaakkeerrss pprroovviiddee bbeettwweeeenn22%% aanndd 66%% hhiigghheerr rreeccoovveerryy tthhaann aannyy ootthheerr bbrreeaakkeerr wwiitthhoouutt tthheenneeeedd ffoorr uunnssaanniittaarryy vvaaccuuuumm rreeccoovveerryy uunniittss oorr sshheellll cceenntt rriiffuuggeess?

email : info@diamondsystem.com

Telephone ....+34.94.432.9252Fax................+34.94.433.6734

Telephone ....+60.3.5631.4991Fax................+60.3.5631.5991

Telephone +248.476.7100Fax........... +248.476.0849

© 2005

USAAsia EuropeTelephone ....+954.384.4828Fax................+954.747.2929

Latin America

Farmington Hills, Michigan

The new category, Bargain Barn was added to offermerchandise at a discount. Currently, several rebuiltegg dryers and pump motors are available. The items inthe Bargain Barn will be offered for a limited time witha limited number available. New items will be offeredperiodically.

Web Store offersDiscounts in the“Bargain Barn”

Service Bulletinson the Web Store

Service Bulletins are nowavailable in the Web store. Login and you can downloadAcrobat pdf file at no charge.New service bulletins will beintroduced on a regular basis.Current store users will beinformed by email. Need a pass-word? Contact us via email:esemposki@diamondsystem.comor call 248.476.7106 ext 3212

““VViiddeeoo TTeecchh TTiippss”” ccoommiinngg ssoooonn

100S Breaker, tested and readyfor shipment to Thailand