Salmonella insurance policies launched prior to new egg rules

A farmer co-op, the UK’s largest egg packer and Columbian Blacktail producers have all revealed details of new insurance services to help egg producers protect their businesses from the fallout of salmonella being found in their flocks.

Next January sees changes to the salmonella rules which could have financial consequences for egg businesses with the implementation of the National Control Plan. Where routine testing finds the presence of either Salmonella enteritidis or typhimurium, eggs cannot go for human consumption unless they have been heat-treated to guarantee the elimination of the strains of salmonella that pose the greatest threat to humans.

East Yorkshire-based co-op Eggsell has launched a policy underwritten within the Lloyds insurance market which is available to all producers.

Policies are priced from 5.5p/bird for salmonella and 4.5p/bird for avian flu and are underwritten within the Lloyds insurance market. It covers loss of income for up to 52 weeks coupled with a percentage of DEFRA testing costs up to an aggregate limit per farm.

Meanwhile, Noble Foods is currently writing to its producers about its own scheme, which will be available from January.

The Guild of Columbian Blacktail Producers (Stonegate) has taken a different approach by forming a mutual society, CBT Mutual, to provide cover for its members. Effectively, they have their own fund, said Stonegate’s John Sayer.

Powell Insurance launched its own scheme back in late 2007. It provides cover for the voluntary slaughter of poultry following positive tests for salmonella. The cover indemnifies the producer for the value of the birds at the time of the loss and covers free range, barn and caged birds.