4 BACKGROUNDOn July 19th, 1999 the EU Commission passed:COUNCIL DIRECTIVE 1999/74/EClaying down minimum standards for the protectionof 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 beinstalled in EU member countries.- Member countries may decide to ban cages earlierand to tighten regulations of the directive.
5 BACKGROUNDDirective 1999/74/EC distinguishes between:Alternative SystemsUnenriched cage systemsEnriched cagesThe 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.
6 BACKGROUNDIn 2007 the results of the scientific studies were available(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 madebecause nobody was sure about the final regulationsof the directive.
7 BACKGROUNDRegulations for enriched cages: Laying hens must have:At least 116 inches2 (750 cm2) of cage area per hen, ofwhich 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.
8 BACKGROUNDRegulations 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 minimumwidth of 35.4 inches (90 cm).A space of at least 13.8 inches (35 cm) must be allowedbetween the bottom of the first tier and the floor.Cages must be fitted with suitable claw-shorteningdevices.
9 BACKGROUNDResults:The opposition against cage systems began parallelto the implementation of such systems.A major role in organizing the opposition playedGerman NGOs and the Green Party.After years of discussion, the EU passed Directive1999/74/EC in With the exception of Austriaand the UK all member countries voted for it.It took eight years before the final regulatory statuteswere passed in 2007.This long time span kept companies from investing innew housing systems.
10 Laying hens in conventional cages BACKGROUNDEU: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 werestill 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 cagesstill used in Belarus, Ukraine and Russia; animal welfarediscussion not yet important in the latter countries.Laying hens in conventional cages(in June 2012, Mio. animals)France: 1.5Spain: 12.7Greece: 1.8Belgium: 3.5Portugal: 2.7Poland: 2.3Netherlands: 1.6Cyprus: 0.1Italy: 17.3EU: 43.4 Mio. hens
12 BACKGROUNDUSA: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 colonynests/enriched cages (95 %),there is a strong opposition against the passing of the“Egg Bill” from cattle ranchers, pork producers and theFarm Bureau.on June 19th 2012, the Senate did not vote on the “Egg Bill”.
13 BACKGROUNDOther countries:In New Zealand, conventional cages will be banned from2022 on.In Canada, banning is not being discussed, a trans-formation to other housing systems will be a longprocess 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-EUcountries in Europe conventional cages are still beingused and a banning is not being discussed.
14 BACKGROUNDOther countries:In Morocco, Tunisia and Algeria the transformation ofsome flocks to enriched cages is considered becauseof the high egg prices in the EU and the chance to exporteggs.
17 EGG SUPPLYGermanyIn Germany, conventional cages were banned fromJanuary 1st 2010 on, two years earlier than in therest of the EU.The development of egg production in this countrycan demonstrate possible impacts of such a decision.
18 Development of German egg production (in 1,000 t) EGG SUPPLYDevelopment of German egg production (in 1,000 t)%Decrease by 23.5 %
19 EGG SUPPLYDevelopment of the number of layers and farms in Germany between 2000 and 2012; data in 1,000 birdsCage ban
20 Number of laying hens in Germany EGG SUPPLYNumber of laying hens in Germanybirds
21 EGG SUPPLYDegree of capacity utilization in farms withmore than 3,000 hen places in Germany
22 Laying hens by housing systems in Germany EGG SUPPLYLaying hens by housing systems in Germany(% share of layer farms with 3,000 and more places)Destatis
38 SECURITYPrices/100 barn eggs (Size L, bulk) from egg packing station in Germanyend of 2009: egg shortage due to transformation period€/100 eggs2010: egg shortage due to transformation period + high demand (Easter) highest price 14.5 € (~ 20.6 $)!Easter2010: Egg oversupply: transformation finalised + Dutch egg imports, summer period dramatic price decrease to 6 € (~8.5 $)2009Easter 092008: high feed prices20082008: moderate Easter price: 8.7 € (~12.4 $)2010
39 EU Egg Prices/100 eggs (Size M, bulk) SECURITYEU Egg Prices/100 eggs (Size M, bulk)Germany
40 SECURITYEU market situation for Eggs and Poultry Man Com March 2013
41 EU Egg Prices/100 eggs (Size M, bulk) SECURITYEU Egg Prices/100 eggs (Size M, bulk)Netherlands
42 EU Egg Prices/100 eggs (Size M, bulk) SECURITYEU Egg Prices/100 eggs (Size M, bulk)France
43 EU Egg Prices/100 eggs (Size M, bulk) SECURITYEU Egg Prices/100 eggs (Size M, bulk)Italy
44 EU Egg Prices/100 eggs (Size M, bulk) SECURITYEU Egg Prices/100 eggs (Size M, bulk)UK
45 Results : The German case Layer flocks in Germany decreased by over 15.6 %between 2005 and 2010.Egg production decreased by over 800 mill. piecesbetween June 2009 and June 2010.The self sufficiency rate fell from 74 % to only 55 %.Shell egg imports increased from 5.6 billion eggs in2008 to over 7 billion eggs in In 2010, theimport volume has reached 8 billion.About 200 mill. € were invested by the industry tomeet the German legal regulations.Germany will remain the leading egg importing countryalso in future. Main suppliers will be the Netherlands,Spain and Poland.
46 Results :The transformation process is still not completedin 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 tothe transformation process.The transformation process has to be completed in allcountries to analyse further impacts.
48 FUTURETrendsIn bill. people will live on earth, 86 % in threshold and less developed countries.Until 2050 food production has to decrease by 50 % but in2050 there will be less cultivated land and water supply willbe unsure.In treshold and less developed countries meat consumptionwill increase fast because of an increasing purchase power.Poultry meat and eggs will be the most important proteinsources.
49 FUTUREFuture ChallengesClimate change.Less cultivated land and water resources.Declining stocks of phosphate.Growing rejection of intensive animal husbandry indeveloped countries.Consumer types: less meat, no meat, no animal products.Animal welfare aspects.
50 Egg Production in 2015 (in 1.000 t) FUTUREEgg Production in 2015 (in t)ContinentProductionShare (%)Africa3,6835.2Asia42,35460.0N America*9,07712.9SC America5,1247.2Europe10,13514.3Oceania2560.4World70.629100.0* Canada, Mexico, USAWindhorst 2011
52 FUTUREMain arguments against a modern, market-orientedpoultry industry:number of birds per flock is too large,bird density per m2 in broiler and turkey productionis too high,use of antibiotics is too high and dangerous,regional concentration of large poultry flocks causeenvironmental problems (air, soil, groundwater),vertical integration is threatening the future ofpoultry farms,animal welfare (debeaking of small chicks, selection ofmale chicks in egg production).
53 FUTUREThe problems:the gap between advertising and the reality on farms,
54 the widening gap between the perception of the FUTUREthe widening gap between the perception of theconsumers and the necessities of the poultryproducers
55 FUTUREFurther Problems:the failure of the poultry industry to explain to thepublic why certain forms of housing systems developed,why large herd sizes are necessary and when and whyantibiotics have to be used,the failure of the poultry industry to switch fromreaction to pro-active action in time.
56 FUTUREThe challenge:to inform the public about the modern systems ofegg and poultry meat production,to open the poultry houses to the public and toinform them about housing systems, herd sizes, thecost and profit situation, diseases and their cure,vaccination schemes, animal welfare and environmentalproblems and steps undertaken to reduce them,to continuously inform media, NGOs and animal welfareorganisations about innovations in poultry productionwhich help to reduce animal welfare and environmentalproblems,to inform the public about the safety and quality ofaffordable poultry products.
57 FUTURE Project „Transparency in the Poultry Industry“ Lower Saxony Poultry Association (NGW)Science and Information Centre for Sustainable Poultry Production (WING),University of Vechta
59 RESULTSWhat did we learn in Europe?We learned that very often a challengeis a chance and that serious problemslead to innovations.2. We learned that animal welfare will bean ongoing challenge.3. We learned that the improvement ofhousing systems will be an ongoingtask.
60 Lessons to be learned from the German experience: Lacking foresight of and politically (election) motivateddecisions to ban cages earlier than in the rest of the EUcaused severe economic problems for the egg industryand resulted in high financial losses.The time span between the passing of the law and theregulatory statutes has to be short. Otherwise, thetransformation process does not begin and at the enddoes not leave sufficient time for the egg companies toinstall the new housing systems. Empty and unusedfacilities were the result in Germany.The decision in the USA to have “one” law for allstates and to set fixed percentages that have to bereached in the transformation process are the right way.
61 RESULTSProblems 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 eggindustry will suffer in the same way as Germany. But fora much longer time: 14 years!As production costs in colony nests and alternativehousing systems are higher than in conventional cages,producers which still use conventional cages will havean advantage compared to producers which have alreadyswitched to colony nests. What impacts will this have onthe transformation process and on the egg market?What will be the reaction of other NGO´s than the HSUSregarding the agreement? How will food retailers andmajor egg users react?
62 of a growing population with animal proteins is the RESULTSFurther Results:In less developed and threshold countries, the supplyof a growing population with animal proteins is themost important goal for the future.In developed countries topics like animal welfare,environmental protection and climate protection arebecoming more and more important.In developed countries poultry production in largefarms is more and more criticized.
63 Thank you very much for your attention! Dr. Aline VeauthierScience and Information Centrefor Sustainable Poultry Production (WING),University of Vechta