Non-Lion egg producers denied bird flu insurance

Free-range egg producers who are not signed up to a recognised farm quality assurance scheme are being denied access to avian influenza insurance by NFU Mutual.

The rural insurer insists that, to meet the criteria required by the underwriter, egg producers should be Lion scheme members, while poultrymeat producers need to be part of Red Tractor.

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NFU Mutual animal disease portfolio manager Adam Williams said: “The quality assurance schemes we recognise in our acceptance criteria confirm the farmer’s compliance with independently audited bio-security and business practices.” 

He explained that coverage is currently open for new business until 1 September, ahead of the “high-risk” period for avian influenza in the autumn and winter.

The policy covers mortality (of any birds that die before compulsory slaughter begins), business interruption for 90 or 180 days, and secondary clean-up and disinfectant.

‘Discrimination’

But, while the Lion Code covers about 90-95% of egg producers – including anyone who sells to a supermarket – those in the independent sector say they are being discriminated against.

Jason Thompson, who runs a flock of 15,000 free-range layers on his farm at Milborne Wick, Dorset, says he has been selling direct to consumers and to the wholesale trade for the 20 years he has been farming.

The refusal of NFU Mutual to provide him with avian influenza cover was at odds with the high biosecurity standards he maintains on farm, he said.

““We don’t need expensive Lion accreditation. We are inspected by Defra every year and we are absolutely meticulous,” he said.

Being unable to access bird flu insurance was a “huge worry”. “Our egg business has been built up from scratch with borrowings,” he said.

“We are profitable, but we would lose the farm overnight if we got avian influenza.”

Tom Wood, who keeps free-range layers in Chew, Somerset, has similar fears.

“We spend a lot of money with NFU Mutual to insure various parts of our farming operation, but this is the only area in which they demand Lion membership,” he said.

“We have 10,500 birds, so it’s not as if we’re a backyard flock with a few hens.”

Avian influenza was the biggest single threat to his business, he said, so not being able to insure against it left him feeling very exposed.

‘Respect’

British Free Range Egg Producers Association strategy director Gary Ford said he understood the producers’ anxiety, particularly given the continuing cases of bird flu over the summer months.

“But the NFU Mutual is the only insurer prepared to offer any cover at this point in time, which we value,” he said.

“We respect that they have criteria – as any insurer does – but we have asked them to look again at it with a view to broadening the cover, so that all our members can benefit.

“What we really need is for more insurers to come into this market.”