The EU Egg Industry –
Welfare of Laying Hens
Presentation to Agriculture and Rural
Development Committee,
European Parliament
on 29th September 2010
EUWEP
The Key Issues
•
Egg Industry is working hard to meet full requirements of Council
Directive 1999/74/EC by 1st January 2012
– Legislation must be implemented, whilst avoiding problems
•
Major producers most able to meet deadline on ban on Conventional
Cages
– Smaller producers unlikely to, or leave industry
•
EUWEP has real concerns that rate of conversion to either
enriched cages or non-cage systems of production is not happening
fast enough to ensure full compliance across the EU
•
If eggs produced by hens, which continue to be housed in a
conventional cage, were precluded from being marketed from 1st
January 2012, the result would be a massive egg shortage resulting
in a significant increase in egg prices
•
Need to ensure orderly move to either enriched systems or noncage systems, to prevent market distortion
2
EUWEP
Updated on 28th May 2010
Data from 26 member states
Total 354.67 million
hens
154.6m ‘other’ hens not included
Source: EUWEP / from DG AGRI data
EUWEP
3
Updated on 28th May 2010
Total 353.53 million
hens
Assumption
- Enriched cage growth to
30m hens
147.6m ‘other’ hens not included
Source: EUWEP / from DG AGRI data
EUWEP
4
Updated on 28th May 2010
Total 353.53 million
hens
29% of Laying hens noncompliant on 1st January
2012
Assumptions
- Enriched Cage hen
numbers increase to 130m
- Barn increases to 70m
hens
- FR increases to 40m hens
Source: EUWEP
EUWEP
5
What is the likely consequence if 29% of EU hens
remain in conventional cages on 1st January 2012?
• Scenario 1 - Member states enforce legislation
•
•
83 million egg a day needing to be disposed of …
Leading to … an egg shortage of 83 million eggs a day!
But
• this cannot be filled by imports from non-EU countries as currently
only Switzerland, Croatia and Norway authorised to export shell
eggs to EU (due to EU’s Salmonella legislation)
•
Prices to consumers would increase sharply
•
In the medium term, EU production is likely to be replaced by
imports of eggs and egg products produced to inferior animal
welfare standards
•
This would not benefit laying hen welfare, consumers, industry
employment, cereal growers, the environment, EU food security, or
the wider economy
6
EUWEP
What is the likely consequence if 29% of EU hens
remain in conventional cages on 1st January 2012?
• Scenario 2 - If more time is given to convert…
•
If member states do not enforce legislation, or more time is
allowed to convert from conventional cages …
•
Then conventional cage production would continue …
•
Causing widespread market disruption, severely affecting the
viability of many (compliant) businesses as prices and therefore
producer returns are depressed
– This would affect producers in all systems of production - Cage, Barn,
Free Range, Organic
•
‘Unfair’ on those producers who have invested
•
… A different approach is needed
7
EUWEP
Suggested Approach (1)
•
Need to avoid a massive egg shortage in the EU and avoid a
significant increase in prices to consumers
•
If there are some producers who need additional time to phase-out
conventional cages, this should be provided
– but, maximum of 1-2 laying flock cycles to encourage early compliance
– stocking density in CCs must also be reduced to 750cm² per hen
•
During this time there must be an intra-EU trade ban on table eggs
(from conventional cages) to prevent those producers who have
made the investment from being commercially disadvantaged
– In other words, eggs from conventional cages continuing to operate
under this time-limited derogation could only be marketed as table eggs
in the member state of production
•
A clearly set out plan to convert conventional cages to either
enriched cages or non-cage systems must be put in place
– Must be approved by the national competent authorities
– Strict penalties for non-compliance introduced
8
EUWEP
Suggested Approach (2)
•
Enforcement …
•
To allow enforcement authorities to differentiate between eggs
from enriched cages and conventional cages, eggs from an enriched
cage would be marked with a No3 from 1st January 2012 and eggs
from a conventional cage would be marked with a No4 or other
mark.
– All egg marking must take place on the production unit
•
Control is vital. Need increase in FVO inspection visits in 2012 to
check for compliance
– If non-compliance noted, immediate action to be taken
9
EUWEP
Conclusion
•
Doing nothing is no longer an option!
•
Council/Parliament/Commission must intervene if all laying hens
currently housed in conventional cages in the EU are not converted
by 1st January 2012
– to ensure that EU consumers can continue to be offered affordable,
high quality, safe, EU produced eggs
•
EU standards are now among the highest in the world
•
Must maintain EU model of production to avoid egg production
being ‘exported’ to non-EU countries (and then import eggs and egg
products from non-EU countries)
•
Commission has been asked to closely monitor the development of
egg production systems in each member state up to 2012
– Member states must be required to report hen numbers housed in both
‘enriched cages’ and ‘conventional cages’ separately
10
EUWEP
Annex
For background Information
11
EUWEP
Annex - EU Egg Industry Background (2009p)
•
Egg Production (source: EC)
– EU – 27
7.427 million tonnes
•
System of Production (source: EUWEP estimate)
•
Number of Laying Hens (source: EC)
•
Egg consumption (EU-27) (source: EC)
– 235 eggs/capita/annum, or 14.68 kg/capita/annum
•
Exports – 140,000 tonnes (1.9% of production) (source: EC)
•
Imports – 40,000 tonnes (0.5% of production) (source: EC)
EUWEP
–
–
Conventional cage 62.5%, Enriched cage 8.5%, Free range 9.2%, Barn 17.1%,
Organic 2.7%
EU–27
354 million (+ 148m ‘other’ hens)
More space per hen, higher cost…….
(Source: Van Horne, LEI)
EUWEP
Production cost eggs 2008, EU and non-EU (Eurocent/kg)
(Source: Van Horne, LEI)
100
90
manure
80
electricity
70
euro cent per kg
general
60
housing
labour
50
53
40
other
50
feed
40
30
38
37
33
pullet
20
10
15
19
10
13
11
11
BR
ARG
IND
0
NL
EUWEP
FR
US
EU Import levies on whole egg powder 2008 (Eurocent/kg)
(Source: Van Horne, LEI)
600
500
3
137
137
cent per kg
400
137
137
17
21
21
21
300
499
200
341
375
353
328
USA
BR
INDIA
100
0
EU
ARG
production cost
EUWEP
transport
levy on imports
EU Import levies whole egg powder 2012 (Eurocent/kg)
(Source: Van Horne, LEI)
600
500
3
30
137
137
cent per kg
400
137
137
17
21
-21
-21
300
499
200
341
375
353
328
100
0
EU
ARG
production cost (excl EU-Directive)
EUWEP
USA
cost of EU-Directive
BR
transport
INDIA
levy on imports
EU Enriched
Colony
(Source: Big Dutchman)
17
EUWEP
Number of EU Laying Hens by System of Production
(‘000) (2004 – 2012F) Updated on 28 May 2010
th
34.2 m Romanian ‘back-yard’
hens included as FR
Enriched cage included
for first time
Non-compliant hens
from 1/1/12
Source: EUWEP / from DG AGRI data
EUWEP