Dr. Aline Veauthier Science and Information Centre for Sustainable Poultry Production – WING 1 Dr. Aline Veauthier (WING, University

Dr. Aline Veauthier Science and Information Centre for Sustainable Poultry Production – WING www.wing-vechta.de

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Dr. Aline Veauthier(WING, University of Vechta)

Science and Information Centre for Sustainable Poultry Production

Cage ban in Europe – impacts on trade, egg supply and food security


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AGENDA

• Background – Directive 1999/74EC

• Impacts on egg supply• Impacts on trade• Impacts on food security

• Future developement

• Results


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BACKGROUND


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On July 19th, 1999 the EU Commission passed:COUNCIL DIRECTIVE 1999/74/EClaying down minimum standards for the protection of laying hens.

• The directive decided that:

- From January 1st, 2012 on all cages will be prohibited.

- From January 1st, 2003 on no such cages must be installed in EU member countries.

- Member countries may decide to ban cages earlier and to tighten regulations of the directive.

BACKGROUND


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Directive 1999/74/EC distinguishes between:

a) Alternative Systems

b) Unenriched cage systems

c) Enriched cages

The Commission also decided that before the final imple-mentation of the directive, additional scientific studiesshould be undertaken to analyze the impacts on the welfareof laying hens and the economy of production.

BACKGROUND


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In 2007 the results of the scientific studies were available(www.laywel.eu).

Based on these results, the Commission decided in 2008:

• no alteration of the original regulations of the directive,

• no alterations in the date of implementation.

Problem:

• It took nine years, before the final decision was passed.

• In this time period, almost no investments were made because nobody was sure about the final regulations of the directive.

BACKGROUND

http://www.laywel.eu/


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Regulations for enriched cages: Laying hens must have:

• At least 116 inches2 (750 cm2) of cage area per hen, of which 93 inches2 (600 cm2) shall be usable.

• The height of the cage has to be at least 7.9 inches (20 cm) at every point, including the perch area.

• No cage shall have a total area that is less than 310 inches2

(2,000 cm2).

• A nest.

• Litter, such that pecking and scratching are possible.

• Appropriate perches: at least 5.9 inches (15 cm) per hen.

BACKGROUND


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Regulations for enriched cages: Laying hens must have:

• A feed trough which may be used without restriction (length: 4.7 inches (12 cm) x number of hens in cage).

• A drinking system appropriate to the size of the group (at least two nipple drinkers in reach of each hen).

• To allow inspection, the aisle has to have a minimum width of 35.4 inches (90 cm).

• A space of at least 13.8 inches (35 cm) must be allowed between the bottom of the first tier and the floor.

• Cages must be fitted with suitable claw-shortening devices.

BACKGROUND


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Results:

• The opposition against cage systems began parallel to the implementation of such systems.

• A major role in organizing the opposition played German NGOs and the Green Party.

• After years of discussion, the EU passed Directive 1999/74/EC in 1999. With the exception of Austria and the UK all member countries voted for it.

• It took eight years before the final regulatory statutes were passed in 2007.

• This long time span kept companies from investing in new housing systems.

BACKGROUND


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EU:

• Conventional cages banned from January 1st, 2012 on.

• Not all member countries met the deadline.

• Estimated cost: about 1.2 billion €.

• In January 2013, about 30 mill. of the 350 mill. layers were still kept in conventional cages, 17 mill. in Italy alone.

• Problems: trade of eggs that are produced in old cages. Rest of Europe:

• No cages in Norway and Switzerland; conventional cages still used in Belarus, Ukraine and Russia; animal welfare discussion not yet important in the latter countries.

BACKGROUND

Laying hens in conventional cages (in June 2012, Mio. animals)

France: 1.5

Spain: 12.7

Greece: 1.8

Belgium: 3.5Portugal: 2.7Poland: 2.3

Netherlands: 1.6

Cyprus: 0.1

Italy: 17.3

EU: 43.4 Mio. hens


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BACKGROUND


USA:• conventional cages will be banned from 2030 on (in California from 2015), if the “Egg Bill” is passed,

• the transformation will cost about 4 billion US-$,

• after 2030 the dominating housing system will be colony nests/enriched cages (95 %),

• there is a strong opposition against the passing of the “Egg Bill” from cattle ranchers, pork producers and the Farm Bureau.

• on June 19th 2012, the Senate did not vote on the “Egg Bill”.

BACKGROUND


Other countries:

• In New Zealand, conventional cages will be banned from 2022 on.

• In Canada, banning is not being discussed, a transformation to other housing systems will be a long process organized by all stakeholders of the industry.

• The discussion to ban cages is under way in Australia, Taiwan, South Korea and just beginning in Japan.

• In China, India, Malaysia, Mexico, Argentina, Brazil, Uruguay, all African countries as well as in non-EU countries in Europe conventional cages are still being used and a banning is not being discussed.

BACKGROUND


Other countries:

• In Morocco, Tunisia and Algeria the transformation of some flocks to enriched cages is considered because of the high egg prices in the EU and the chance to export eggs.

BACKGROUND


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IMPACTS ON EGG SUPPLY - Germany - EU - 27


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Germany

• In Germany, conventional cages were banned from January 1st 2010 on, two years earlier than in the rest of the EU.

• The development of egg production in this country can demonstrate possible impacts of such a decision.

EGG SUPPLY


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874

901 887

868

825 813

795 797 786 790

698 720

750

600

620

640

660

680

700

720

740

760

780

800

820

840

860

880

900

920

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2012 2015

Hen

eg

g p

rod

uct

ion

in 1

,000

t

Development of German egg production (in 1,000 t)

EGG SUPPLY

- 23.5 %


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Development of the number of layers and farms in Germany between 2000 and 2012; data in 1,000 birds

EGG SUPPLY

Cag

e ba

n


birds

EGG SUPPLY

Number of laying hens in Germany


EGG SUPPLY

Degree of capacity utilization in farms with more than 3,000 hen places in Germany


EGG SUPPLY

Laying hens by housing systems in Germany(% share of layer farms with 3,000 and more places)

Destatis


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Number of laying hens in EU-27

birds

EGG SUPPLY

2011

2012 2012


Number of laying hens in the Netherlands

birds

EGG SUPPLY

2011

2012 2012


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Housing systems in egg production in EU member countries(2010)

0

10

20

30

40

50

60

70

80

90

100

CZ EL ES PT PL BE SK IT BG IE CY FR NL SI EE LT RO UK FI HU DK LV SE DE AT

Free range

Barn

Enriched cages

Old cages

Organic

%

Source: MEG

EGG SUPPLY


EU market situation for Eggs and Poultry Man Com 21 March 2013

EGG SUPPLY

Pri

ces

Production



EGG SUPPLY


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IMPACTS ON TRADE


TRADE

Imports of shell eggs into Germany

+ 37 %


Egg imports into selected countriesTRADE


EU Egg Imports

618

146563

3911 575

1 089

191

156253

1 462

2 2352 478

0

500

1 000

1 500

2 000

2 500

3 000

Jan-Jan 11 Jan-Jan 12 Jan-Jan 13

Total EU Import of Eggs -not incl. Hatching eggs

(Tonnes eggs equiv)

USA ArgentinaIndia IsraelAlbania Other destinations

1 041740

1 007

3691 185

1 098

459

271

2 078

2 447

3 028

0

500

1 000

1 500

2 000

2 500

3 000

3 500


Total EU Import of Eggs -not incl. Hatching eggs

(1000 EUR)

USA ArgentinaIndia IsraelAlbania Other destinations


TRADE


3 7565 158

3 659

3 9113 660

4 249

7 128 5 077 4 138

17 18816 078 15 966

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000


Total EU Export of Eggs not incl. hatching eggs (T. eggs equiv.)

Japan Switzerland Russia

Angola Thailand Other destinations

2 479 3 677 3 838

4 9215 058

7 163

1 2176 717

5 725

5 84016 423 16 734

21 774

0

5 000

10 000

15 000

20 000

25 000


Total EU Export of Eggs not incl. hatching eggs (1000 EUR)

Japan Switzerland Russia

Angola Thailand Other destinations

EU Egg Exports


TRADE


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Exports of Eggs by EU-27

TRADE


Imports of Eggs into EU-27

TRADE


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IMPACTS ON FOOD SECURITY


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Egg Surplus and Deficit in Europe

SECURITY


SECURITY

Prices/100 barn eggs (Size L, bulk) from egg packing station in Germany

4,00

5,00

6,00

7,00

8,00

9,00

10,00

11,00

12,00

13,00

14,00

15,00

1 5 9 13 17 21 25 29 33 37 41 45 49 53

2008 2009 2010 2011

Euro/100 Stück

MEG-Preisfeststellung für BodenhaltungseierKlasse L, Güteklasse A, lose ab Station

Kalenderwochen

(Ohne Berücksichtigung von Kontraktpreisen,

Serviceleistungen etc.Bis April 2009 ZMP-Erhebung)

€/100 eggs

2008: moderate Easter price: 8.7 € (~12.4 $)

2008

2009

2010

2010: egg shortage due to transformation period + high demand (Easter) highest price 14.5 € (~ 20.6 $)!

2010: Egg oversupply: transformation

finalised + Dutch egg imports, summer period dramatic

price decrease to 6 € (~8.5 $)

Easter

2008: high feed prices

Easter 09

end of 2009: egg shortage due to transformation period


SECURITY

EU Egg Prices/100 eggs (Size M, bulk)

Germany


85

105

125

145

165

185

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

€uro

/ 100kg

Evolution of the weekly EU average price for Eggs for Consumption

Avg 08 - 12 2010avg 2011 2012 2013


SECURITY


SECURITY


Netherlands


SECURITY


France


SECURITY


Italy


SECURITY


UK


Results : The German case

• Layer flocks in Germany decreased by over 15.6 % between 2005 and 2010.

• Egg production decreased by over 800 mill. pieces between June 2009 and June 2010.

• The self sufficiency rate fell from 74 % to only 55 %.

• Shell egg imports increased from 5.6 billion eggs in 2008 to over 7 billion eggs in 2009. In 2010, the import volume has reached 8 billion.

• About 200 mill. € were invested by the industry to meet the German legal regulations.

• Germany will remain the leading egg importing country also in future. Main suppliers will be the Netherlands, Spain and Poland.


Results :

• The transformation process is still not completed in all EU-27 countries.

• Layer flocks in EU-27 decreased as a result of the cage ban.

• Imports in EU-27 increased because of the cage ban.

• Egg prices increased because of the egg shortage due to the transformation process.

• The transformation process has to be completed in all countries to analyse further impacts.


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FUTURE DEVELOPMENT


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Trends

• In 2050 9 bill. people will live on earth, 86 % in threshold and less developed countries.

• Until 2050 food production has to decrease by 50 % but in 2050 there will be less cultivated land and water supply will be unsure.

• In treshold and less developed countries meat consumption

will increase fast because of an increasing purchase power.

• Poultry meat and eggs will be the most important protein sources.

FUTURE


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Future Challenges

• Climate change.

• Less cultivated land and water resources.

• Declining stocks of phosphate.

• Growing rejection of intensive animal husbandry in developed countries.

• Consumer types: less meat, no meat, no animal products.

• Animal welfare aspects.

FUTURE


Egg Production in 2015 (in 1.000 t)

Continent Production Share (%)

Africa 3,683 5.2

Asia 42,354 60.0

N America* 9,077 12.9

SC America 5,124 7.2

Europe 10,135 14.3

Oceania 256 0.4

World 70.629 100.0* Canada, Mexico, USA

Windhorst 2011

FUTURE


ILLEGAL KILLINGS ON TURKEY FARM

FUTURE


Main arguments against a modern, market-orientedpoultry industry:

• number of birds per flock is too large,

• bird density per m2 in broiler and turkey production is too high,

• use of antibiotics is too high and dangerous,

• regional concentration of large poultry flocks cause environmental problems (air, soil, groundwater),

• vertical integration is threatening the future of poultry farms,

• animal welfare (debeaking of small chicks, selection of male chicks in egg production).

FUTURE


The problems:

• the gap between advertising and the reality on farms,

FUTURE


http://www.roterhahn.it

http://www.fingermuehl.de

http://www.zingerlehof.com

• the widening gap between the perception of the consumers and the necessities of the poultry producers

FUTURE

http://www.zingerlehof.com/


Further Problems:

• the failure of the poultry industry to explain to the public why certain forms of housing systems developed, why large herd sizes are necessary and when and why antibiotics have to be used,

• the failure of the poultry industry to switch from reaction to pro-active action in time.

FUTURE


The challenge:

• to inform the public about the modern systems of egg and poultry meat production,

• to open the poultry houses to the public and to inform them about housing systems, herd sizes, the cost and profit situation, diseases and their cure, vaccination schemes, animal welfare and environmental problems and steps undertaken to reduce them,

• to continuously inform media, NGOs and animal welfare organisations about innovations in poultry production which help to reduce animal welfare and environmental problems,

• to inform the public about the safety and quality of affordable poultry products.

FUTURE


Project „Transparency in the Poultry Industry“

Lower Saxony Poultry Association (NGW)

Science and Information Centre for Sustainable Poultry Production (WING), University of Vechta

FUTURE


RESULTS


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What did we learn in Europe?

1. We learned that very often a challenge is a chance and that serious problems lead to innovations.

2. We learned that animal welfare will be an ongoing challenge.

3. We learned that the improvement of housing systems will be an ongoing task.

RESULTS


Lessons to be learned from the German experience:

• Lacking foresight of and politically (election) motivated decisions to ban cages earlier than in the rest of the EU caused severe economic problems for the egg industry and resulted in high financial losses.

• The time span between the passing of the law and the regulatory statutes has to be short. Otherwise, the transformation process does not begin and at the end does not leave sufficient time for the egg companies to install the new housing systems. Empty and unused facilities were the result in Germany.

• The decision in the USA to have “one” law for all states and to set fixed percentages that have to be reached in the transformation process are the right way.


Problems that still have to be solved in the USA afterthe agreement between UEP and the HSUS in June 2011:

• What is going to happen in California? The egg industry will suffer in the same way as Germany. But for a much longer time: 14 years!

• As production costs in colony nests and alternative housing systems are higher than in conventional cages, producers which still use conventional cages will have an advantage compared to producers which have already switched to colony nests. What impacts will this have on the transformation process and on the egg market?

• What will be the reaction of other NGO´s than the HSUS regarding the agreement? How will food retailers and major egg users react?

RESULTS


• In less developed and threshold countries, the supply of a growing population with animal proteins is the most important goal for the future.

• In developed countries topics like animal welfare, environmental protection and climate protection are becoming more and more important.

• In developed countries poultry production in large farms is more and more criticized.

RESULTS

Further Results:


Thank you very much for your attention!

Dr. Aline Veauthier

Science and Information Centrefor Sustainable Poultry Production (WING),

University of Vechta

www.wing-vechta.de


Questions

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Dr. Aline Veauthier Science and Information Centre for Sustainable Poultry Production – WING 1 Dr. Aline Veauthier (WING, University