british egg industry council
Post on 30-Dec-2015
9 Views
Preview:
DESCRIPTION
TRANSCRIPT
BRITISH EGG INDUSTRY COUNCIL1
Developments within the European Egg Industry
Presentation to Irish Poultry and Egg Conference, Monaghan,on 7th November 2012
Mark Williams
BRITISH EGG INDUSTRY COUNCIL
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
BRITISH EGG INDUSTRY COUNCIL3
EU Egg Industry
• Successful
• Unsupported
• Highly efficient
• Innovative
• Reactive to Consumer demand for eggs
• Free range, Barn, Organic, Enriched colony cage, Speciality (eg Omega-3)
BRITISH EGG INDUSTRY COUNCIL
EU Egg Industry Background (2011 F)
• Egg Production (for human consumption, including imports, less exports, less hatching eggs) (source: EC)– EU – 27 6.133 million tonnes
• Egg consumption (EU-27) (source: EC)
– 204 eggs/capita/annum, or 12.23 kg/capita/annum
• Exports – 216,000 tonnes (3.5% of production) (source: EC)
• Imports – 16,000 tonnes (0.3% of production) (source: EC)
• Self-Sufficiency - 102.9%
BRITISH EGG INDUSTRY COUNCIL
Source FAO. Presented by EC at Eggs and
Poultry Advisory Group on 11/10/2012
5
World Hen Egg Production (2010 = 65.57 Million T)
10 "Countries" = 79.6% of the total production
China = 37.5% of the total
0
5.000
10.000
15.000
20.000
1000 T
2008
2009
2010
BRITISH EGG INDUSTRY COUNCIL
Number of EU Laying Hens by System of Production (‘000) (2004 – 2012F)
34.2 m Romanian ‘back-
yard’ hens included as FRNon-compliant hens
from 1/1/12Enriched cage included
for first time
BRITISH EGG INDUSTRY COUNCIL7
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!
BRITISH EGG INDUSTRY COUNCIL8
The Action Plan
• Action Plan requires;
• Eggs from conventional cages can only go for processing in the member state of origin and cannot be exported
• Egg products created can only be used in food products or industrial products manufactured within the member state of origin
• (However, food products made from non-compliant egg products can be traded across the EU)
BRITISH EGG INDUSTRY COUNCIL
Source: EC: EU market situation for Eggs
and Poultry, Advisory Group 11/10/12
9
85
105
125
145
165
185
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
Price
Pac
kers
stat
ion
€uro
/ 100
kgEvolution of the weekly EU
average price for Eggs for Consumption
Avg 07 - 11 2009 2010 2011 2012
BRITISH EGG INDUSTRY COUNCIL
180
200
220
240
260
280
300
Non GM GM
Source: NFU
Mid-Lay Feed Ration Prices (£/t)(January 2010 – November 2012)
BRITISH EGG INDUSTRY COUNCIL
• 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
Trade negotiations
BRITISH EGG INDUSTRY COUNCIL
Source - EC
12
Compared
tonnes % tonnes % tonnes % tonnes % tonnes % to Jan-Jul 11
USA 4 245 18.6% 11 165 36.7% 13 439 42.9% 5 417 28.4% 9 623 42.0% + 153%
Argentina 6 164 27.0% 7 899 26.0% 7 888 25.2% 7 898 41.5% 7 036 30.7% + 86%
Mexico 2 002 8.8% 1 893 6.2% 1 425 4.5% 556 2.9% 1 017 4.4% + 427%
Albania 2 209 9.7% 1 659 5.5% 3 208 10.2% 1 303 6.8% 1 182 5.2% + 310%
India 6 593 28.9% 5 776 19.0% 3 211 10.2% 1 505 7.9% 1 307 5.7% + 26%
Israel 646 2.8% 711 2.3% 941 3.0% 547 2.9% 796 3.5% + 85%
Canada 1 0.0% 33 0.1% 2 0.0% 0 0.0% 67 0.3%
Brazil 64 0.3% 67 0.2% 0 0.0% 0 0.0% 0 0.0%
EXTRA EU 25/27 22 850 30 409 31 356 19 045 22 903
% change + 33% + 3% - 39% + 111.2%
2008 2009 2010 Jan-Jul 122011
EU Imports of Eggs:
Trade Figures (Comext – tonnes egg equiv.)
BRITISH EGG INDUSTRY COUNCIL
Commissioned by EUWEP (EU association for egg packers, traders and egg processors)
Updates reports published in 2003 and 2005
BRITISH EGG INDUSTRY COUNCIL
EU legislation in 2010: production cost of eggs
1.2%
0.2%
1.2%
1.2%
0.6%
1.0%
3.5%
91.2% 8.8%
N directive
ammonia emission
salmonella
Meat and bonemeal
gmo
beaktrimming
density (550 cm2)
production cost basic
Source: EUWEP
BRITISH EGG INDUSTRY COUNCIL
EU legislation in 2012: production costs of eggs
1.1%0.3%1.1%
1.1%0.7%0.9%
3.3%
6.6%
84.9% 15.1%
N directive
ammonia emission
salmonella
Meat and bonemeal
gmo
beaktrimming
density (550 cm2)
enriched cages
production cost basic
Source: EUWEP
BRITISH EGG INDUSTRY COUNCIL
Offer price shell eggs in Germany 2012 (Euro/kg)
84
66 63 60 68
6
-
3
11 19 19
18
30 30 30
30
0
20
40
60
80
100
120
140
EU UKR USA ARG IND
cent per
kg
production cost (excl EU-Directive) cost of EU-Directive transport levy on importsSource: EUWEP
BRITISH EGG INDUSTRY COUNCIL
Offer price whole egg powder in Germany 2012 (Euro/kg)
477
377 380 358 381
26
--
3
9 15 16
15
137 137 137
137
0
100
200
300
400
500
600
EU UKR USA ARG IND
ce
nt p
er
kg
production cost (excl EU-Directive) cost of EU-Directive transport levy on imports
Source: EUWEP
BRITISH EGG INDUSTRY COUNCIL
Offer price whole egg powder Germany (Euro/kg), (50% reduction in import tariff and 10% lower exchange rate)
(‘worst case’)
477
339 342 323 343
26 3
9 15 16
15
69 69 69
69
0
100
200
300
400
500
600
EU UKR USA ARG IND
cent per
kg
production cost (excl EU-Directive) cost of EU-Directive transport levy on imports
Source: EUWEP
BRITISH EGG INDUSTRY COUNCIL
Free trade Fair trade
Import levies Production cost in EU due to public concern
BRITISH EGG INDUSTRY COUNCIL
(1999)
Barn
5.8%
Free
Range
16.4%
Cage
77.8%
UK Egg Market Split, by System of Production (Volume)
(Source: Defra, UK Packing Station Throughput)
The UK egg market is led by market demand
BRITISH EGG INDUSTRY COUNCIL
New egg data
BRITISH EGG INDUSTRY COUNCIL
Eggs for Action!
BRITISH EGG INDUSTRY COUNCIL
British Egg Week
BRITISH EGG INDUSTRY COUNCIL
British Egg Week
BRITISH EGG INDUSTRY COUNCIL
Retail Egg MarketConsumer Purchasing 2008 – 2012
Volume(000s boxes)
% change(year on year)
2008 12,703 +0.3
2009 12,765 +0.5
2010 12,966 +1.6
2011 13,431 +3.6
2012 (year to 30 Sept - annualised)
14,126 +5.2
BRITISH EGG INDUSTRY COUNCIL26
Conclusions
• EU has the most modern industry in the world
• A huge achievement– should be proud of this
• UK - Confidence restored in British eggs– Lion Quality Scheme– Industry restored to growth
• but … always alert for new emerging issues
BRITISH EGG INDUSTRY COUNCIL
Thank you for your attention
mark.williams@britisheggindustrycouncil.com
top related