Future of organic eggs
Organic sales have taken a battering in the last two years, as consumers have reacted to the credit crunch. The organic egg sector is now worth less than half of what it was in 2007.
But it’s not just the drop in demand that is causing producers headaches. From 2012, organic egg producers will have to use a diet that is 100% organic, up from the current 95%, which will push up costs.
The other big change concerns organic pullets. Currently these can be reared in the same way as free-range pullets, so long as they are fed organic diets. But from January 2012 they must be reared fully organically, meaning they must be out on the range from 11 to 12 weeks of age.
Both new measures could compromise the viability of some organic egg businesses.
CASE STUDY: Richard Barton, Grassington Rangers, North Chailey, Sussex
Richard Barton runs Grassington Rangers with his brother, sister and 15 part-time employees.
A family business, started by his father, Peter, in 1985 with just one shed of 8000 birds, today the business comprises four organic laying farms, totalling 73,000 birds.
“We were one of the first adopters of free range and then converted to organic in 1997,” Mr Barton explains. “Animal welfare is at the top of our agenda and visitors are always very impressed with our farms, the abundance of trees and woodland and how healthy and happy the birds look.”
Flock performance can be variable, he adds. “Being organic, we are limited in our approach to combating disease. We vaccinate thoroughly in rear and operate three rearing farms with a capacity for 36,000 birds.”
Hyline is the preferred choice of bird, and eggs are sold through Noble Foods to Sainsbury’s for the Woodland Range brand.
Mr Barton says that, as ambassadors for organic poultry farming, he is concerned about the legislative challenges.
“We are anxious that the change to 100% organic diets will not be able to deliver the nutrition required, possibly affecting bird health and welfare, and issues such as controlling egg size.”
The proposed new rearing standards are also seen as ludicrous.
“If birds are let out from 12 weeks, the stockman loses control,” says Mr Barton. “Pullets up to 16 weeks should be inside, protected from disease and predators. Feed and light can then be properly controlled, vaccinations carried out and the birds can develop in a safe environment prior to laying.”
The rearing operation at Grassington gives the Bartons complete control and knowledge of the flock from day one, and the birds are not put under any unnecessary stress through transit. “Meeting the EU’s proposed new standards for 100% organic pullets is not going to be easy and will require yet more investment.”
But Mr Barton anticipates that the new legislation will happen and could have a significant effect on the cost of organic eggs. “Realistically, only those who are fully committed will remain.”
Despite this, he remains upbeat. “I am a positive person and witnessed free range grow from a 3% niche market in the mid-1980s to what is now over 50% of egg sales. We must encourage more consumers to buy organic and fight hard to ensure farmers are rewarded fairly as part of a well-structured supply chain.
“Organic currently makes up 5% of the market. But as the economy picks up and animal welfare becomes a growing influence on consumer choice, organic eggs will be sold in greater numbers.”
CASE STUDY: Tim Swinburn, Sunnyside Organics, Martson, Wilts
Tim Swinburn is a former police officer who, during an investigation into the theft of solar panels from a farm in Wiltshire, first came into contact with organic poultry farming.
“I was really enthused by the organic approach,” he says. “I went back to the farm on weekends and days off to learn the ropes.” Mr Swinburn then resigned from the police to start his own poultry business and took delivery of his first organic flock in July 2006.
The farm is a multi-age site of 8000 birds, split into four flocks to meet Soil Association organic standards. Two sheds contain Lohmann Browns, the other two Columbian Black Tails.
“We have a dual approach to selling the eggs. The Columbian Black Tail eggs are sold in to Waitrose via Stonegate Farmers. However, for the Lohmann eggs, we have initiated a local marketing strategy. Some are sold to Willowbrook Farms, who supply to schools and universities in the Oxford area. The remainder I sell at the farm gate, farmers’ markets, farm shops and to local restaurants and hotels.”
All of the sheds at Sunnyside are powered by wind and solar energy. “My main motivation is that renewable energy fits well alongside organic farming,” says Mr Swinburn. “I prefer not having to use fossil fuels. Reducing the carbon impact of food production is becoming increasingly important to the consumer and I work hard to promote the environmental benefits of sustainable energy.”
As a newcomer to the egg sector, Mr Swinburn says he was not constrained by a traditional way of operating. “I approach my work with a fresh outlook and am not afraid of trying new ideas. For example, I have successfully used pop holes in the back of the sheds, as well as the sides, to encourage the birds out, as well as increasing ventilation during the summer.
“Colin Gravatt from Humphrey Feeds regularly comes to the farm to weigh the birds and check their performance. Colin’s recommendations on diets and lighting have been excellent, as has his advice on flock and range management.”
The farm is near Salisbury Plain. During Army training times, the ground can literally vibrate. “Helping new birds adapt to this environment is vital. Within a few weeks they do stop diving for cover whenever a helicopter goes over head. Like me, the birds have had to adapt and learn quickly.”
Mr Swinburn enjoys the independence that grading, packing and marketing some of his own eggs affords.
“By-passing the middleman can make for a more streamlined supply chain. I want to ensure that high-quality organic eggs are affordable and available to as many people as possible.
“I am meticulous in everything I do. Range management is of course vital. I use a clover ryegrass lay which captures nitrogen in the soil, plus the birds eat the clover.
“I also work with a local tree surgeon, who stores a large quantity of woodchip at the farm. I spread the woodchip in certain wet areas of the range which helps reduce flock mobility, reduces standing water and delivers cleaner eggs. I keep the range clean, work closely with Colin to provide the right diets and have a proactive approach to disease control.”
And what about future prospects?
“Feed costs remain volatile. It is tough going at the moment and with organic production you can lose money very quickly; the margin for error is less than with conventional free range and therefore attention to detail is vital.
“I do think organic eggs, which are a versatile and inexpensive source of protein, will become more sought after and affordable. Running a sustainable farm with a high-welfare system is the most important factor for me. We must believe in what organic stands for in order to be successful.”
COMPOUNDER COMMENT: Martin Humphrey, director of Humphrey Feeds
“Farmers who invest in organic poultry production do so because they are committed to the organic approach, but they do need their organic enterprise to be profitable and sustainable.
“The requirements for organic feed are tightening and there is a fear that a 100% organic diet unnecessarily challenges that sustainability.
“Rearers are also concerned that they will lose the stimulating control of light as a result of impending rule changes. If birds are to be even, on target weight and fit for purpose at the point of lay, then control of light is vitally important.
“Organic is a high-welfare system and must stay this way. Pullet quality and providing optimised nutrition are vital components and must not be compromised.”
In response to the challenges, Humphrey Feeds is supporting Organic UK‘s programme, commencing in 2011, which aims to give the organic sector a boost through a £1m advertising and marketing campaign.
* For more information, log on to www.humphreyfeeds.com or www.organicuk.org