Upcoming ban on rearing laying hens in cages throws egg industry into turmoil

Around half of Finland’s egg producers will leave branch

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The Finnish egg industry is going through a period of transition. Of the country’s 600 egg producers, around half are thinking of giving up the trade in the next few years, while the rest will build - or have already built – permissible so-called “enriched” cages or multi-floor henneries for their egg-laying hens.
      Of the farmers remaining in the business, many will increase their production, which means the overall level of egg production in the country will remain more or less unchanged.
     
The EU directive banning traditional “unenriched” battery cages will come into force in 2012. After that laying hens can only be reared in the so-called “enriched” cages or in various types of multi-floor henneries, where the laying hens can move freely between the different levels.
      Those giving up the trade will not be granted any special support. Especially for the older - but still under retirement age - hen-farmers the situation is problematic. Agricultural economist Pekka Pihamaa of the Ministry of Agriculture and Forestry says the long transition period is used to justify the decision.
     
According to executive manager Lea Lastikka of Finland’s Poultry Association, the large number of those giving up the trade is explained by the field’s poor profitability, which has continued for some time now. Also, staying in the business would require substantial investments.
      For many hen rearers the amendment was just the last straw, so to speak. Many of the closing farms are relatively small or have no representatives of the younger generation to take them over.
      In addition to the rising energy and fodder prices, also overproduction has eaten into the profitability of egg production. Finland has produced eggs beyond the domestic demand and eggs have been exported abroad, mainly to Sweden.
      “The aim is to reduce the number of egg-laying hens by 500,000. Hopefully by the year 2012 the supply and demand will be in balance”, Lastikka says.
     
The effect of the current transition on the price of eggs or products containing eggs is anybody’s guess. The industry may not rid itself from the issue of overproduction immediately, for many farms remaining in the business will expand their operation. On the other hand, the rising energy and fodder rates create pressure to increase producer prices.
      Signs from elsewhere in Europe predict that even in Finland the transition period in egg production may well continue past the year 2012.
      In certain EU countries the emphasis is now on floor henneries. In some cases even the “enriched” cages have either been banned, or their use is under debate. For example in England certain grocery store chains have refused to stock and sell eggs produced by cage henneries.
     
From 2012, the so-called “enriched” cages will be the only hen cages allowed in Finland. In an “enriched” cage there are 8-13 hens per square metre. The cages have to have nests, beams, and litter.
      There are two types of floor henneries: normal and multi-rack. In the multi-rack option hens can move freely between four levels. The floor henneries also have nests, beams, and litter and 7-9 hens per square metre. The size of the floor henneries has not been limited.
      In organic henneries there are no more than five hens per square metre. Only in the organic henneries do the hens have access to an outdoor space. The organic henneries also must have windows.


Links:
  EU: COUNCIL DIRECTIVE 1999/74/EC of 19 July 1999 laying down minimum standards for the protection of laying hens

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