Success! - It’s all about the rearing?

Pullet rearers are an essential part of the free range egg industry and one whom producers put a lot of trust in. Starting with a healthy, quality pullet is the first step towards a profitable cycle, so how they are reared is important. This month the ranger spoke to several pullet rearers, large and small, to get their thoughts on the future of the industry. Their varied opinions on topical issues, management practices, growth and investment, makes for interesting reading.

The relationship between rearer and producer

When asked if producers cared enough about how their pullets are reared the responses were mixed. Alan Hayward of M.J.Hayward & Sons, rears 400 thousands pullets a year and stated that, “My customers put their trust in me and care about what I do. They want a decent pullet to make them money, they are relying on us for a bird that is going to perform.” Steve Carlyle of Country Fresh Pullets, rears 6.8 million pullets a year agreed, “My customers care a lot about how their pullets are reared and take a lot of trouble planning their requirements.”

Opinion was however divided on the value for customers visiting their birds in rear. Olivia Potter of Potters Poultry, rears up to two million pullets a year, stated, “I always urge producers to visit the birds but probably only twenty to twenty-five per cent do. Most feel they haven’t got time or don’t know what they are looking for, in which case I suggest that they bring a representative from the breeder or feed company for guidance.” Others cautioned a balance between openness and bio-security. Steve stressed, ”It’s important that our sales managers communicate the nature of our business; what we do and how we do it. Some do visit, but not all, flock reports are available and are issued upon request.”

John Retson rears just over 400 thousand pullets a year. John told the Ranger, “Broadly speaking producers don’t care enough about the rearing of their pullets.”
John Retson rears just over 400 thousand pullets a year. John told the Ranger, “Broadly speaking producers don’t care enough about the rearing of their pullets.”

Charles Macleod rears 1.3 million pullets a year for Humphrey Pullets and said, “We actively encourage producers to come and visit the birds with us to discuss their development,” he said. “We send out weekly performance reports but it isn’t the same as seeing and handling the birds for themselves”. However, biosecurity is a serious consideration – there are no visits before six weeks and they try to arrange them for a Monday, so that producers have more of an opportunity of being away from the birds for 48 hours. He also stressed the importance of settling birds in once they are delivered, as transport can be stressful. “We want to work with our customers on this to make sure they are getting the best out of the birds.”

John Retson, ex-chairman of BFREPA rears just over 400 thousand pullets a year as JSR Services (Blairgowrie) Ltd, felt that broadly speaking producers don’t care enough about the rearing of their pullets. He also encourages producers to visit the rearing site but not all do. Alan Hayward said, “Most of our customers come at least once, after they start buying from us. It’s important for them to know what we do but I don’t think it’s necessary for them to come every time.” As for all rearers the pullets are weighed regularly and that data is available to customers so that they know how the birds are growing. Hayward’s is a small to medium sized business and Alan does a lot of the deliveries himself. “I visit my customers and find out about their systems, so that we can discuss the pullets.”

Jean-Paul Michalski from Noble Foods rears 4.5 million pullets a year and also stressed the importance trust and developing a dialogue between rearer and producer. He said, “I always encourage people to see their birds from about 12 weeks onwards. A meeting on site is a good way to discuss rearing, transport, management after housing and production issues particular to their farm.”

Laying hen genetics

“Across our farms we have a variety of breeds and are therefore well placed to observe changes in performance and behaviour etc. We will see differences in feed consumption and bodyweight between breeds,” described Olivia Potter. Charles Macleod was happy with the performance of the breeds they rear and hasn’t seen consistent differences in robustness, although each flock will be different.

Steve Carlyle said, “We have seen feed intake and body weight go down (far enough), as well as an increase in egg production. However, robustness is particularly important for free range flocks and although less aggression is clearly a focus – there is considerable flock by flock variation in the incidence of vices.”

Although few of the rearers had comments to make on the performance of the breeds they are rearing; several mentioned issues with chick quality. “As hatcheries have got bigger, quality has not improved,” Alan Hayward cautioned. “We rely on the hatcheries for good chicks and in turn the producers rely on us to supply quality pullets. We all have to be doing our best, for everyone in the industry to be making money.”

In terms of behaviour, 70 per cent of rearers interviewed recognised breeders’ efforts to reduce aggression in laying hens, in light of a potential beak-trimming ban. Jean-Paul Michalski was sure that feather cover has been improving, which could be a marker of reduced aggression. However, some blamed docility for an increase in numbers of floor eggs and incidences of smothering.

Jean-Paul also highlighted breeder’s focus on improving laying persistency. “I think it's fair to say that we are seeing this in the field,” he stated. “In order to support the increase, nutrition and management techniques, to aid persistency, we need to start in the pullet rearing phase; we are putting a lot of effort into this.”

Multi-tier systems

With a move towards multi-tier systems in laying houses, consideration needs to be given to how such birds are reared. The use of additional features in houses is required by assurance schemes, including Freedom Food, and many pullet rearers are developing their own systems. “We use ramps, alighting rails and slats; in order to make the adjustment easier for birds when they move to the laying house,” explained Steve Carlyle. “We are happy with the results and our customers are having great results.” He shared the fact that they had had discussions with certain customers about installing the multi-tier type rearing systems. However, in order to pay for such an investment they would have to charge at least a 30 pence premium per bird and have a guarantee of sales for 10 years.

Charles Macleod agrees that the use of multi-tier type rearing systems is not necessarily better. “Farmers can help the birds to adapt to the laying house, for example placing them into the system on delivery and placing them back there for the first three to four nights.” He also made the interesting point that FCR’s may be better in these systems, where the chicks are confined for the first couple of weeks. However, he would be concerned that the cage liners keeping litter too dry for the re-cycling of the attenuated coccidia; may prejudice the efficacy of the coccidial vaccine. He also highlighted use of feed and water to encourage birds to move between levels in the house. “Encouraging the pullets to seek out water and feed on the higher platforms in the rearing house is important to ensure a successful transfer into the laying accommodation.” All our rearing space is three dimensional, with feed and water available on the jump up platforms,” he explained. “The placement of water and feed in the laying house is quite predictable; the pullets need to have had the necessary experience to enable them to find the water and feed quickly on placement.” John Retson also emphasised the importance of pullets getting used to going up onto slates for water.

“The majority of our birds are reared on multi-tier systems, for which no premium is charged,” explained Olivia Potter. “We have also invested in premium aviary rearing systems, for which we are trying to achieve an extra 40 pence per bird.” She believes these birds adapt far quicker to the new multi-tier laying units and as a result of less stress, come into lay sooner.

Jean-Paul Michalski explained that, “Nearly all of our rearing facilities now have step up rearing systems with the rest being converted within the next year or so.” “I think they are essential to help to develop skeletal and muscular growth, making them better adapted to modern multi-tier laying houses.” However, he wasn’t convinced that the additional cost of installing full multi-tier rearing resulted in significant production increases. “It would require huge capital investment which ultimately would need to be recouped by increasing pullet price by a minimum of 40 to 50 pence per pullet.”

In the case of Hayward’s, all their trade is with customers who keep less than ten thousand birds; in traditional flat-deck houses and mobile units. “As such the kind of adaptations required for multi-tier systems aren’t necessary,” Alan explained. “We have lots of customers who keep British Blacktail flocks to supply Waitrose and others who sell to the smaller packers.”

Vaccinations

The increase in number of vaccinations given to pullets was something that all the producers agreed on. Alan Hayward observed, “I found a schedule from the 80’s and compared it to our current standard, which listed twice as many vaccinations!” John Retson agreed, “Vets are recommending programmes, which are putting severe pressure on rearers and don’t involve us in discussions”.

“We have a very full and comprehensive vaccination programme as standard,” explained Olivia. Requests for additional vaccines are commonplace and completely farm specific programmes can result in up to six injections per flock. Jean-Paul Michalski also felt that they had a robust vaccination programme. “We have a vested interest in the production of the birds we supply given that the eggs they produce will be coming through our packing centres. Additional vaccinations are available for specific farm problems; requests for mycoplasma and E. coli protection have recently been on the increase.”

The standard vaccination programme at Country Fresh offers protection for 12 different diseases; Marekks, IB, Coccidiosis, Salmonella ST and SE, Gumboro, IB Variant, Newcastle, ILT, TRT, Epedemic tremors and EDS. Vets are also recommending additional vaccinations for free range flocks including; Bio cholera (Pasteurella), Erysipelas, E. coli and mycoplasma. “We also get requests for autogenous vaccines on specific customer farms,” said Steve Carlyle.

Alan also has more requests for E. coli, Erysipelas and mycoplasma vaccination. “These diseases are rearing their heads again but I don’t think we should just be relying on vaccinations,” he said. “There are issues with ranges becoming ‘fowl-sick’ and I think we need to look at management techniques.”

There were mixed feeling on the topic of autogenous (farm-specific) vaccines. Alan said that he gives a fair amount of this type. “It is the E. coli vaccine that I have a real issue with as it causes a body weight check. There needs to be a balance between theory and practice in terms of vaccinations, I don’t want to stress the birds,” he concluded. John agreed, “The use of autogenous vaccines given at 12 and 16 weeks of age, means that we have to rear those birds separately, which is an extra cost to us. In many cases they do more harm that good, particularly if they are given to control several diseases at once.”

Charles Macleod has seen the number of requests for autogenous vaccines reducing, to around 30 thousand birds a year. “We have found that the availability of a generic E. coli spray is replacing them,” he suggested. “It is important to tailor the vaccination strategy to the health status of the farm but it’s important to remember the significant effect things like ventilation and water quality also have on bird health.”

Extending the laying cycle

The possibility of extending laying cycles beyond 72 weeks is something that is increasingly discussed. Although there is potential for producers to increase profits if they can get more eggs per bird, what would it mean for pullet rearers? If customers kept hens for an extra eight weeks, that could mean losses in annual sales. Jean-Paul Michalski made the point that; “72 week cycle works really well and means that producers remain in one rearing farm, guaranteeing a consistent supply of pullets I would suggest that we are a little way away from running on to 80 weeks and most producers would be happier moving to around 76 weeks, which a small number of our producers are doing.” He stated that ultimately if a large number of producers significantly extended laying cycles, it would impact on pullet price.

However, the rearers didn’t feel that the number of customers employing this approach was making a difference to them at present. Most talked about some customers going to only 74 or 76 weeks, which did have some logistical implications for them in terms of rearing space. “If a lot of our customers started to extend the laying cycle significantly we would have to think about our strategy but I don’t see it happening in the near future,” Steve Carlyle proposed. “It is difficult to producers to predict at 30 weeks (when they need to order pullet for the next cycle) whether the birds will be able to lay effectively past 72 weeks. They can’t have the shed empty so would need to be able to sell to a breaker if quality wasn’t good enough after 72 weeks.”

“There is only so much of a market for seconds and at present egg quality isn’t good enough past 74/76 weeks,” Alan explained. “In the cases of those supplying Waitrose, they won’t allow them to go past 72. Of the others, more than half are going to 74 and a few to 76.” Although there is a push to extend laying cycles, he feels that producers can’t get away with any more than this. Olivia Potter agreed that whilst some of her customers are going to 76 weeks, the uncertainty of stress and disease makes increasing the laying period as standard problematic. John Retson doesn’t have many of his customers going beyond 72 weeks, although they are talking about it. “I think some flocks can go longer but I don’t see large scale extension of laying cycles in the near future.”

Charles Macleod has seen nearly all of his customer start to extend laying cycles, mostly to 74/76 weeks and a few even further. “I believe that if you supply pullets at or above target weights (although some is weight inevitably lost during transport) you give the pullets the best opportunity for a good start and increase the potential for extending the laying cycle.” He continued, “Producers need to decide early on if they want to keep birds for longer; altering management goals and supporting them nutritionally to do so. Although there are things that can happen to scupper this, which are out of the producers control, such as disease outbreaks or predation.”

With an optimistic market, certain rearers stated that even if laying cycles did increase across the board, there wouldn’t be a need for price increases. Instead they would make up for numbers from new customers or expansion of existing ones. “We wouldn’t change our prices,” stated Alan. “We supply our pullets from over small sites, the biggest being 39K – we’d soon fill up with other customers.” Charles agreed that he was happy if customers were maximising their income opportunities from the pullets he supplied and that a reputation for quality would increase sales.

Beak trimming and hen injuries

The potential beak-trimming ban is a contentious issue for all those involved in the egg industry and rearers are no exception. Olivia Potter would not support the ban with current genetics and feels that the industry isn’t ready. “We need to have birds that can cope with stresses and challenges,” she explained. “However, as birds don’t peck during rear there is little we can do to influence the behaviour.” Steve Carlyle is also not in favour of the ban and made the point that this is a UK/Western European issue and would genetics companies breed specific birds for this market? “We don’t have the birds or the management techniques to ensure that pecking doesn’t happen,” he stated. “Some flocks will be fine but when there is a problem, mortality levels are very high.” However, he feels that it is their duty to trial measures to prevent pecking; they use road cones and footballs to keep birds happy, but don’t see pecking in rear.

Despite the fact that Hayward’s have been involved in the Bristol University trials on beak trimming and successfully rear British Blacktail and organic flocks fully beaked – Alan would not support a ban. “If you’ve seen what happens when it all goes wrong, you couldn’t,” he affirmed. “With the right lighting and management techniques we can rear fully feathered pullets that haven’t been beak-trimmed.” However, there are times that producers have to tip them later on because of cannibalism or because loss of feathers result in pale eggs. “Ultimately though if the consumers want un-tipped birds then that’s what we’ll have to give them,” he concluded.

Humphrey Pullets have also been involved in the trials but Charles Macleod believes that a ban on beak trimming would be detrimental for bird welfare. “We need to fully understand what initiates injurious pecking,” he stated. “Then we can be ready to stop it before we see cannibalistic behaviour. But whilst the breeders cannot produce a bird that does not peck, we cannot support beak trimming.” Jean-Paul Michalski concurred, “My feeling at the moment is no, as an industry we are not ready for a beak tipping ban. However, management changes means we are we are seeing fewer issues with feather loss and injurious pecking.” He believes that there are things that rearers can do to prepare birds. “I think that things like exposure to natural daylight would acclimatise the birds to higher light levels, which would help to emulate social interactions that are seen on the laying farm.”

John Retson spoke regarding the beak-trimming ban, saying the industry wasn’t ready yet. “We should be getting ourselves prepared”, he said. “If we have good litter, environment and management; then we reduce the potential effects of stress on the birds during rear.” His theory being that they then move into the laying accommodation as happy hens, which will stay happy. “We need to make sure that we are rearing and managing hens with as little stress as possible.”

In terms of other hen injuries, for example keel-bone fractures, some didn’t have much experience of the problem or felt that more research was needed on the causes. Whilst other stressed the importance of planning how the equipment will be laid out, to ensure bird safety. “We wait until 10 days before introducing the ramps up to slatted areas, then they can access alighting rails,” said Steve. “This gets them used to moving about all the dimensions of the shed safely.” John agreed that if rearers can mimic the layout of the laying house as closely as possible, time for adaptation and hence the likelihood of injuries will be reduced. Jean-Paul added, “I think the step-up systems should help to reduce the incidence of keel damage if birds are better equipped and trained to move around the system earlier in life”.

The price of pullets

All agreed that the market was more stable than it has been and therefore producers are feeling more secure. As a result of which, none said they had any significant issues with producers not paying or going over their terms. Although some may be utilising feed company finance for this purpose. Again the issue of trust and having a good relationship with customers was given importance. “I won’t be mucked about,” confirmed Alan Hayward. “I have a business to run and a reputation to maintain, if someone doesn’t pay I take action.” Steve Carlyle calculated that for a producer with 32 thousand birds there was approximately a £200k investment in pullets and feed before they started being paid for eggs. “For some producers short term borrowing may be required, particularly if they are also building a new house.”

Jean-Paul Michalski explained that those producers in the Noble loyalty scheme, have the option of pullet finance. This allows them to start paying once the birds start to produce and then spread that payment over the term of the flock. “We are happy with the price we charge as we work hard to improve our 16 week old pullet and are constantly adapting the way we rear them. We won’t be pushed down the road of producing birds to least cost, however maintaining a degree of margin is paramount for further investment.”

In truth producers need to pay for their pullets if they are to stay in business. By the time the birds are 30 weeks they need to be ordering for the next flock so if they haven’t paid up, rearers won’t supply them again. And from the rearers point of view with a buoyant market, they won’t have any trouble selling the pullets elsewhere.

Many rearers wouldn’t be drawn on pricing, stating that it varies depending on order size and vaccination programme. Steve pointed to vaccinations as one reason that pullet prices could increase from the current £4. “Although prices have risen over the years, we are happy that we are providing customers with a quality product and focus on keeping them happy and growing sales.” Charles Macleod agreed that he was happy with the price they were getting and their focus was on supplying a premium product. “In general pullets are undervalued, in terms of the effect they have on producers profitability,” he said. “If they aren’t happy with the quality of the birds they are buying, then they should hold the rearer to account!’

Hayward’s set their price to keep the business going - currently around £4 dependent on volume. “Demand is such that we are sold out until August,” Alan enthused. “I’ve enquired asked about buying pullets from other rearers and I can’t find any spare anywhere!” He believes that this is a backlash from the situation last August, resulting in less birds being placed.

There was also agreement that whilst virtually no new pullet accommodation had been built in recent years, heavy investment was needed. Olivia Potter hypothesised that this would be one reason why pullet prices may increase over the next few years. John Retson agreed that there was a need to keep upgrading equipment and housing. The potential of feed cost rises was also on his mind…

Future challenges

Uncertainty of feed prices was raised by a number of rearers, as both a challenge and a potential reason for pullet prices to increase. “I’m disappointed that feed price hasn’t come down further, particularly as there is no shortage of wheat,” Alan Hayward commented. “But with the increasing demand for free range eggs, I’m fairly confident that egg prices won’t drop either.”

Vaccination was another common challenge listed. Olivia Potter said, “Complex vaccination programmes can have an effect on bodyweights in rear but we are working with our customers’ vets in order to minimise the number required”. Charles Macleod agreed that the number of vaccinations given to pullets is likely to increase. “Biosecurity issues and AI outbreaks, also have the potential to affect our business,” he continued. “We have grown in capacity by 100-150K this year but we want to maintain quality; as such we are investing in staff and management systems.” Ultimately though the economics of the egg industry will dictate the level of expansion for all rearers.

Steve Carlyle pointed to investment in adaptations of housing and enriching units but stated that they had no short-term plans for significant expansion. “We’ve increased capacity by 400 thousand this year and that is sufficient. Maintaining chick quality is a big challenge for us,” explained Steve. “We work closely with the hatcheries to ensure we get the right chick considering the breeder flock age as well as minimal mixing of flocks.”

John Retson picked out government legislation as the biggest challenge for his business. “I’m particularly concerned about changes to the regulations on the movement of live birds,” he said. Jean-Paul Michalski said, “The biggest challenge for us going forward is how we manage producers expectations on the availability of rearing space, to allow them to extend their laying periods. It will also be important with extended laying periods; to achieve body weight target before the onset of lay and having a robust vaccination protection becomes even more important. We need to ensure that we supply a quality bird and feel confident to ask for a fair return for that additional investment.”

Location and situation played a part in the other challenges that pullet reared highlighted. Hayward’s are based in the New Forest and as such any expansion for their customers or themselves, is not easy. “Getting planning permission to put up new houses is extremely difficult and you need to be confident in the market - our sheds are mainly converted broiler houses,” Alan said. “Despite politician’s promises, the amount of red-tape for business has not reduced – new legislation is always a risk.”

As reported in March’s Ranger, there is a move towards larger free range farms in the UK. “For us it means that if we loose a customer, it is a lot of business – each one becomes more important,” Steve concluded. “But there are savings to be made in terms of economies of scale on deliveries and support from sales managers.” Whilst some expressed concern over economic stability, most agreed that the expansion of the free range egg market meant that there was potential for more business.