Conventional hen cages - Their days really are numbered

Egg producers attending the Poultry Association of Northern Ireland (PANI) conference were told quite clearly that the chances of a derogation being obtained regarding the complete banning of conventional hen cages on January 1st 2012 are remote.

"The European Commission is taking a very hard line on this issue," explained ADAS poultry specialist Jason Gittins.

"The original EU legislation was introduced back in 1999 and then supplemented by the introduction of the relevant national regulations in subsequent years. Space allowances per hen have already been increased from 450 square centimetres per bird up to 550 square centimetres and suitable claw shortening devices have also been introduced into existing cages."

He added:

"No conventional cages are to be built and the last facet of the 1999 EU directive is on track to be implemented at the beginning of 2012."

"Producers do have a lot of questions concerning the logistics of how the new regulations will be introduced. For example, what about flocks that are housed in 2011 and their subsequent management in 2012? The issue of what happens should suppliers not be able to supply all of the required equipment before the deadline is another issue brought up by many flockowners. The reality is, however, that the European Commission expects producers to take all the necessary steps to ensure their full compliance with the new regulations on January 1st 2012."

This latter point was endorsed by Paddy McGuckian, who was representing the Veterinary Service of Northern Ireland at the conference.

During a question and answer session he made it clear that his officials will be implementing the new regulations from the beginning of 2012 onwards and, in reality, flockowners are deluding themselves if they think that a derogation on the banning of conventional cages will be obtained.

Jason Gittins went on to point out that current the demands from the the UK egg industry for a derogation, on the grounds that the European Commission was three years late in producing its report on the various hen management systems, carries no weight at all in Brussels.

"As far as the Commission is concerned a derogation will only serve to distort competition and disadvantage those producers already committed to the new enriched cages or colony systems."

According to the latest estimates free range market share of the UK egg market could well have reached 50 – 55% by the end of 2011, leaving the requirement for the new colony systems at around 40%.

"This works out at around 10 million enriched cage places" Jason Gittins further explained.

"Taking account of the investment already made, this still leaves around 8 million places to be installed before the end of 2011."

Conference delegates were told that the new colony systems will provide each bird with a floor area of 750 square centimetres. Perches plus specialised litter areas and nesting boxes will be provided. The new cages will also have a greater height requirement with 80% of the available floor area per bird being at least 45 centimetres high.

Implementing the new regulations will, however, come at a cost. Jasons Gittins estimated that to convert a deep litter unit currently housing 30,000 birds into one fully equipped with a colony system, in tandem with conveyor belted manure handing, could cost up to £14 per bird.

"A new build will require expenditure in the region of £15 to £25," he added.

"But this is only the tip of the iceberg. Conversions will take about 6 months to complete, so producers must factor in how they will maintain supply to their existing customers while work is ongoing. New builds, on the other hand, will require planning permission. It may well take up to 18 months to get from the design stages through to the completion of the project. Investment in either option will also bring with it the requirement for a purpose built manure store. Within a replacement scenario, this works out at one in four existing houses being re-designated as a manure storage area that must comply fully with IPPC regulations."

He concluded:

"If one takes account of all the outlay involved, egg production costs will rise from the current figure of 55.4 per dozen up to 59.2 pence for producers investing in a new-build, colony system."

Courtesy of his presentation to the conference Erne Eggs’ managing director Charles Crawford told delegates that the pending ban on conventional cages represented an artificial deadline.

"Over the past thirty years we have always reacted to the market. Our guiding principle was never to stretch ourselves too far at any particular time. Now we find ourselves in a position where we will have to replace thirty years work in three," he explained.

"By virtue of the fact that production of cages has stopped, egg producers would have had no option but to invest in enriched systems as part of their businesses’ natural progression. For some reason the logic of this argument has not been grasped by the European Commission."

Erne Eggs is the 4th largest producer in the UK with 420,000 hens. The company has its own packing and processing units. As Charles Crawford pointed out to delegates the company has now to consider one of three options.

"The first is to move to a new site. This would comprise three new buildings, each housing 140,000 birds, plus a massive manure store," he explained.

"This has, more or less, been ruled out because of the problems associated with planning permission. Option two is to fit out our existing houses with enriched cages on a phased basis over the next three years. This will cost in the region of £7 million. However, the problem associated with this plan of action is the impact of the downturn in output which will kick in while the work is progressing. There is then the consequent requirement to meet existing customers’ needs from other production sources. Option three is to do nothing and close down our egg production business at the beginning of 2012. This leaves our processing arm as a hostage to fortune as it will have to purchase the eggs that are required on the open market."

He concluded:

"The other issue coming into play at the moment is that of securing the additional finance that will be needed need, assuming we give further consideration to the conversion option. And given current circumstances this may well be the influencing factor when the final decision is made."

John Campbell, the founder of Glenrath Farms, told delegates that the banning of conventional cages could well sound the death knell of the UK egg industry.

"It is now clear that the Commission in Brussels will allow the importation of eggs produced outside the EU by hens in conventional cages after January 1st 2012," he stressed.

"WTO regulations provide for this. The reality is that existing egg producers in the UK and other EU member states will not be able to compete with these imports and, as a result, their businesses will go to the wall. This is a totally ridiculous situation."

Glenrath’s poultry operations generated a turnover of £40 million last year. However, the business is committed to an investment programmes of £50 million to ensure that all its egg production units are fully EU complaint by the end of 2011. This includes the development of new colony and free range production facilities.

John Campbell also highlighted the constructive role played by the supermarkets when it comes to working with farmers in the United Kingdom.

"It’s often overlooked that all of the multiples are committed to sourcing a high proportion of the food they sell from local farmers and suppliers. And in our case, we have taken full advantage of this policy," he concluded.