The Egg Sector – Meeting Future
Challenges
Presentation to Irish Poultry and Egg
Conference, Monaghan,
5th November 2014
Mark Williams
Industry Challenges
• The Market
– Growth of discounters vis a vis major retailers
• Increasing egg consumption
– At 185 e/c/a, UK still below EU average
• Laying Hen Welfare
– Beak trimming of laying hens – review in 2015 and proposed ban
in 2016
– Disposal of male day-old chicks
– Work started on assessing keel bone damage
• Bilateral trade negotiations
• Need to develop workable standards for organic pullet
rearing
– EC has authorised continuation of derogation on part organic
pullets and feed until end of 2017
Opportunities
• Egg market
• Continuing to promote the Main Meals in Minutes
theme, ‘Lifting the limits’ and satiety messages
• Working on new allergen advice for babies and children
• ‘Love Food Hate Waste‘ Campaign
• Market data - to 52 weeks ending 12th October 2014
– further market volume growth of +1.4%
– but value -2.1%
• Organic sales back in growth
ROI - Volume 2013
Organic
2%
Barn
1%
Free Range
38%
Enriched Cage
58%
Source: DAFM
UK Market Split - Volume 2014 (Jan - June)
Organic
2.4%
Barn
3.2%
Enriched Cage
51.4%
Free Range
43.0%
Source: Defra
Production of Eggs for
Consumption
(Main MS)
(2014)
780.0
12%
1 435.5
22%
645.0
10%
622.0
10%
927.0
15%
562.0
9%
790.0
12%
656.0
10%
Qty in 1000 tonnes
DE
ES
FR
IT
NL
PL
Source: EC
UK
Others
Estimated Size of EU Big-7 Laying Flock
(based on chick placements and 56 weeks in lay)
millions of live birds
300.0
295.0
290.0
285.0
280.0
275.0
270.0
265.0
260.0
255.0
250.0
Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15
EU Imports of Eggs:
Trade Figures (Comext – tonnes egg equiv.)
2010
tonnes
India
USA
3 211
2011
%
9.4%
tonnes
1 554
2012
%
7.5%
tonnes
3 657
not incl. Hatching eggs
2013
%
tonnes
Jan-Aug 14
%
tonnes
%
Compared
to Jan-Aug 13
9.7%
3 856 18.9%
3 566 44.4%
+ 60.8%
14 009 40.9%
5 960 28.6%
15 183 40.2%
6 853 33.5%
2 376 29.6%
- 56%
Argentina
7 937 23.2%
8 115 39.0%
10 162 26.9%
5 734 28.0%
835 10.4%
- 81%
Norway
1 722
5.0%
1 502
7.2%
1 474
3.9%
1 969
9.6%
798
9.9%
- 46%
Switzerland
337
1.0%
342
1.6%
332
0.9%
355
1.7%
329
4.1%
+ 56%
Israel
941
2.7%
547
2.6%
1 393
3.7%
349
1.7%
100
1.2%
- 55%
6 087
0.2%
2 787
0.0%
5 528
0.0%
1 338
0.0%
32
0.4%
Others
EXTRA EU 28
% change
34 244
20 806
37 729
20 454
8 037
- 39%
+ 81%
- 46%
- 47.1%
Source: EC
EU Exports of Eggs:
Trade Figures (Comext – tonnes egg equiv.)
2010
tonnes
2011
%
tonnes
2012
%
tonnes
not incl. Hatching eggs
2013
%
tonnes
Jan-Aug 14
%
tonnes
Compared
%
to Jan-Aug 13
Japan
52 923
29%
66 357
31%
66 938
36%
64 527
30%
51 763
36%
Switzerland
45 072
25%
42 168
19%
41 893
23%
42 086
20%
25 467
17%
- 8%
5 888
3%
8 262
4%
1 674
1%
10 450
5%
4 487
3%
- 20%
20
0%
1 552
1%
1 139
1%
7 741
4%
5 531
4%
+++
Russia
5 293
3%
4 947
2%
5 982
3%
10 539
5%
4 773
3%
- 33%
Angola
10 414
6%
17 524
8%
17 109
9%
12 906
6%
8 074
6%
- 17%
Equat.Guinea
1 487
1%
1 945
1%
1 632
1%
2 215
1%
1 736
1%
+ 3%
Secr.Extra
2 164
1%
1 148
1%
2 638
1%
8 262
4%
2 267
2%
- 52%
Israel
1 308
1%
2 654
1%
1 060
1%
936
0%
2 197
2%
+++
Thailand
6 180
3%
7 254
3%
6 409
3%
5 919
3%
3 392
2%
- 18%
Taiwan
7 145
4%
7 941
4%
4 626
2%
3 412
2%
1 823
1%
- 31%
Others
43 825
24%
55 353
25%
34 694
19%
45 623
21%
34 229
23%
U.A.Emirates
Iraq
EXTRA EU 28
% change
181 719
217 105
185 793
214 617
145 738
+ 19%
- 14%
+ 16%
+ 8.4%
+ 30.5%
Source: EC
Maximum weekly prices for individual egg products
in the EU and the USA in €/10kg
240,0
200,0
€/10 kg
160,0
120,0
80,0
40,0
0,0
1 5
|
9 13 17 21 25 29 33 37 41 45 49 1 5
2012
|
9 13 17 21 25 29 33 37 41 45 49 1 5
2013
|
9 13 17 21 25 29 33 37 41 45 49 1
2014
|
whole plain EU
Yolk EU
Albumen Spray EU
whole plain US
Yolk US
Albumen Spray US
Source: EC
Beak trimming - UK situation
• Only Infra-red beak treatment allowed
• Review in 2015, potential ban in 2016
• Defra funded trials
– Non-cage (Bristol University) – 20 flocks
– Colony cage (SRUC)
• BEIC agreed to financially underwrite three 16k FR flocks in
trial
• Any ban on IRBT should be delayed until the science (and
genetic progress) can clearly demonstrate that flocks can be
housed without the need for beak trimming
– Otherwise potential for welfare problems
With thanks to Joice & Hill Poultry Ltd
Beak trimming – Other EU member
states
The Netherlands
• Proposed ban in 2018, with a review beforehand
• Pilot studies ongoing
Germany
• Ban in 2016?
• Pilot studies ongoing
Other member states
• Sweden and Finland – legislative ban
• Austria - banned under assurance scheme
• Denmark - industry introduced ban (Enriched cages on
1/7/13, Non-cage on 1/7/14)
13
Male day-old chick disposal
• Market demand for culled day-old chicks
zoos, birds of prey, snakes etc
• Germany - concern at North Rhine-Westphalia move to ban
– Hatcheries in Germany have to demonstrate there is a use for culled
male DO chicks
•
Unilever announcement in USA (September 2014)
14
Poultry Red Mite
Country
UK
Belgium
Denmark
France
Germany
Italy
Netherlands
Norway
Poland
Spain
Sweden
No of Laying Hens
(millions)
36.6
9.2
3.4
45.9
47.3
40
33.4
3.6
44.1
38.3
7
% of farms with
Poultry Red Mite
87.5
94
39
67
94
83
94
11
80
90
67
Source: Monique Mul, Hugo Bens. NL
Food waste
•
•
Estimated 1.3 billion tonnes of food lost or wasted per annum
(UN)
Estimated 89 million tones of food wasted in EU per annum
EU initiative to reduce waste by 50% by 2020
•
SCoFCAH discussion on ‘sell-by’ and ‘best-before’ dates in EU
•
Commission asked EFSA to look at possible impact of extending
the shelf-life of eggs in terms of SE
•
ECDC opinion on ‘The public health risks of table eggs due to
deterioration and development of pathogens’ - published end
July 2014
•
Conclusion – Extending the ‘sell-by’ date by one week and bestbefore date by one week
•
= the relative risk of illness would be 1.6 and 1.7 for uncooked
and lightly cooked egg meals respectively, compared to the
current situation
16
Opportunities for the Egg Industry
Egg image improving - natures perfect product!
Good news on Cholesterol
Good news on Satiety
Egg displays improving – innovative packaging
The ‘welfare story’ – growth of non-cage at retail
level
(but more difficult for egg products)
• Growth in certain egg product sectors
• Branding - Further differentiation possible - growth
in speciality and enriched eggs e.g. Omega-3
• Reducing the ‘Carbon footprint’ – local/regional
sourcing
•
•
•
•
•
Egg Marketing in the Member States
• EU consumers assume high standards of:
– Food safety
– Animal Welfare
• They are now becoming increasingly interested in:
– The Environment
– Recycling
– Fair trade
CSR
Main Meals in Minutes
2014 ambassadors
Main Meals in the Summer
Nutrition campaigns
Egg Nutrition
•
•
•
•
•
•
70% more Vitamin D
100% more Selenium
20% less fat
more than 20% less saturated fat
around 13% fewer calories
more than 10% less cholesterol
Nutrition campaigns
Eggrecipes visits
Jan – September 2014:
329,022 visitors +82% Y-O-Y
Organic
visits
+262%
British Egg Week
British Egg Week – TV
British Egg Week – TV & radio
British Egg Week – TV & radio
4 x pieces of TV
1 x piece of radio
Reached 2.4m
viewers & 1.9m
listeners
AVE = £71,320
Reached 2.1m on
Twitter
British Egg Week Bloggers
7 blog posts &
140,000
unique
monthly views
for
British Egg
Week blogs
Trending on Twitter! #BritishEggWeek
had 8M
potential
impressions
1,536 Twitter
mentions by an
estimated 688
users
UK per capita consumption
(egg/capita/annum) 1989-2013
220
200
180
160
140
120
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Retail Egg Market
Consumer Purchasing 2008 – 2014
Volume
% change
(000s boxes)
(year on year)
2008
12,703
+ 0.3
2009
12,765
+ 0.5
2010
12,966
+ 1.6
2011
13,431
+ 3.6
2012
14,067
+ 5.2
2013
14,526
+3.3
11,290 (YTD)
+1.4% (YTD)
2014 to Oct
Conclusions
• UK - Confidence restored in British eggs
– Lion Quality Scheme
– Industry restored to growth
• but … always alert for new emerging issues
35
Thank you for your attention
mark.williams@britisheggindustrycouncil.com
Tel: 0044 20 7608 3760