Investing in barn production could be the answer to keeping the egg business viable, according to Newquip
This article was first published in the September Poultry Trade Buildings Supplement
Like many other industries, the egg industry has been hit very hard by rising raw material prices, with feed, labor and energy costs rising. As a result of the rapid expansion of free range in recent years, the glut of eggs on the UK market has slowed the rate at which this increase can be passed on to consumers, which eventually has to happen as primary production and packers struggle. for profit margins and viability.
A recent Andersons report states that barn production is expected to increase from the current 3% to 10% of the market by 2025. This is due to the decision to remove enriched colony eggs from supermarket shelves, a commitment made before all the recent world events that affect the current situation. Hopefully this decision will now allow the industry to return to a sustainable position where supply and demand are more in balance.
The number of colony-enriching producers has declined in recent years, and some have decided to switch to free range eggs. Conversions primarily result in lower bird numbers, both due to lower stocking densities and in compliance with Integrated Pollution Prevention and Control (IPPC) emission allowances, as caged birds have higher emission factors than colony birds. Often the result is around 50%.
the original numbers of birds allowed in place, so a 7% increase in production in barns could lead to a similar decline in the size of the national flock.
As we head into the predicted recession, this is an important change, says Adam Dye, chief executive of Newquip. Colony eggs will still have a place in the UK, especially given the economic outlook. This means that the increase in recognition of barn production provides another level in the market for consumers to choose from.
“It’s all about giving the consumer choice,” says Dye. “The UK industry has constantly evolved to ensure welfare standards are some of the highest in the world and is constantly reinvesting to ensure we remain at the forefront of this.”
The demand for economy eggs on supermarket shelves will certainly mean that the production ratio of beehive, barn, free range and organic farming will have to change, says Dye. Barn investment is most likely to come from existing sites, whether it is converting colony units or allowing paddocks to rest within the free range sector.
“None of these solutions increase the national flock, and while we are trying to extend the life of the birds, hopefully the overall reduction in bird numbers will allow for a natural correction of supply and demand without causing further suffering to the industry.”
Among the main advantages of a stable over a free range is the ability to control the environment through automation without as many external influences. Temperature, lighting and ventilation can be monitored and created
optimal environment for birds so they are less likely to feel stressed or overfed. Reducing stress also means managing pecking, leading to better feather cover and less shedding. Today’s systems can automate everything from when the hatch is fed to making sure the eggs arrive directly at the packhouse. While much of the same technology is being developed and used in the free range, the rise in raw material costs that we have seen recently will increase the difference in production costs.
Big Dutchman’s Newquip Natura systems have been designed with both animal welfare and the environment in mind, Dye explains. Multiple tiers allow all floor space to be used for bedding with separate zones for feeding and drinking, laying, resting and scratching, allowing birds to move freely around the house. The influence of external factors such as adverse weather, disease and predators can be controlled as well as compliance with applicable regulations.
Says Dye: “Reducing the number of birds in the housing area means less supply, but demand is not affected. With a surplus of eggs in the industry, reducing the number of birds helps reduce that surplus.
“Direct online also removes the need to pack and transport the eggs to the packhouse as everything can be done on site and the process is overseen by multiple operators. Farming is not as labor intensive if you can incorporate technology in this way.”
