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The UK Egg Industry – ‘Rising to the Global Challenge’

The UK Egg Industry – ‘Rising to the Global Challenge’. Presentation to Egg and Poultry Industry Conference, 5 th November 2012 Mark Williams. 2011 and 2012 – 2 Years of Momentous Change. Implementing new animal welfare legislation EU ‘wholesale’ egg price spike

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The UK Egg Industry – ‘Rising to the Global Challenge’

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  1. The UK Egg Industry – ‘Rising to the Global Challenge’ Presentation to Egg and Poultry Industry Conference, 5th November 2012 Mark Williams

  2. 2011 and 2012 – 2 Years of Momentous Change • Implementing new animal welfare legislation • EU ‘wholesale’ egg price spike • Trying to cope with high feed prices • Ongoing trade negotiations • But…more good news on egg nutrition & rising sales

  3. The UK’s position in the global market • 6th largest producer in EU • Less than 1% of world production • 34.5 million laying hens • 189 eggs/capita/annum • Below EU average and way behind Mexico at 325 e/c/a • 82% self-sufficient • Successful, highly efficient, innovative … reactive to consumer demand • Responsible - High Standards of Food Safety

  4. World Hen Egg Production (2010 = 65.57 Million T) 10 "Countries" = 79.6% of the total production China = 37.5% of the total 20.000 2008 15.000 2009 2010 1000 T 10.000 5.000 0 EU USA India Other China Brazil Russia Japan Mexico Ukraine Indonesia

  5. UK Egg Market Split, by System of Production (Volume) (Source: Defra, UK Packing Station Throughput) The UK egg market is led by market demand

  6. Number of EU Laying Hens by System of Production (‘000) (2004 – 2012F) 34.2 m Romanian ‘back-yard’ hens included as FR Non-compliant hens from 1/1/12 Enriched cage included for first time

  7. Implementing the Welfare of Laying Hens Legislation • January 2012 - 51m non-compliant hens • January 2012 – ‘Letter of Formal Notice’ sent to 13 non-compliant member states • June 2012 – ‘Letter of Reasoned Opinion’ sent to 10 non compliant member states • Commission currently considering responses • Next step is referral to European Court of Justice • 2013 – Fines? • October 2012 – 5(?) member states non compliant = 23 million hens • Will the EU be fully legal by 2013 – unlikely!

  8. Beak Trimming • Currently only Infra-Red Beak treatment allowed • Day-old in hatchery • Govt announced; a review in 2015 and a ban in 2016 for all laying hens • Beak Trimming Action Group re-established • Industry, NGO’s Scientists, Defra • Industry members believe IRBT should continue to be allowed after 2016 • Otherwise potential for welfare problems

  9. Mid-Lay Feed Ration Prices (£/t) (January 2010 – November 2012)

  10. Trade negotiations • Multilateral - Doha Development Agenda • no progress • Bilateral • Ukraine – agreed, but not ratified • Canada – to be finalised soon • India – to be finalised soon • Japan – just started • USA – to start Spring 2013 • Mercosur - ongoing • Need sensitive product status on vulnerable tariff lines

  11. Commissioned by EUWEP (EU association for egg packers, traders and egg processors) Updates reports published in 2003 and 2005

  12. EU legislation in 2010: production cost of eggs Source: EUWEP

  13. EU legislation in 2012: production costs of eggs Source: EUWEP

  14. Offer price shell eggs in Germany 2012 (Euro/kg) Source: EUWEP

  15. Offer price whole egg powder in Germany 2012 (Euro/kg) Source: EUWEP

  16. Offer price whole egg powder Germany (Euro/kg), (50% reduction in import tariff and 10% lower exchange rate) (‘worst case’) Source: EUWEP

  17. Free trade Fair trade Production cost in EU due to public concern Import levies

  18. The Lion Quality Scheme A British Success Story

  19. Laboratory reports of human Salmonella cases in the UK, 1984-2010 HUMAN SALMONELLA The ‘Edwina Currie’ Crisis Source: UK Zoonoses Report 2010

  20. New egg data

  21. Eggs for Action!

  22. British Egg Week

  23. British Egg Week

  24. Retail Egg MarketConsumer Purchasing 2008 – 2012

  25. Conclusions • So have we risen to the global challenge? • Absolutely… • As good as anyone in the world and should be proud of it • Confidence restored in British eggs • Via Lion Quality Scheme • Industry restored to growth • but … always alert for new emerging issues

  26. Thank you for your attention mark.williams@britisheggindustrycouncil.com

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