Poultry ‘bed and breakfast’ scheme launched by egg packer

A large-scale egg supplier has launched the UK’s first “bed and breakfast” (B&B) scheme for layer flocks to help farmers cope with rising costs.

Lincolnshire-based Fairburn’s Eggs supplies millions of eggs a week to supermarkets across the UK and said it recognised the unprecedented difficulties facing egg producers.

Layer flocks face a triple whammy of rising energy costs, higher feed costs, and the threat of avian influenza, a spokesman for the company said.

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To provide security in the current production climate, the B&B package will ensure producers receive a guaranteed return on their investment.

Fairburn’s says it will do this by paying producers to raise flocks on its behalf, supplying them with pullets and feed – similar to some existing schemes in the pig sector.

Details of the scheme include:

• Producers will receive a pre-agreed amount per bird for each flock, covering birds housed from 16 weeks to 76 weeks plus three weeks’ turnaround.
• A bonus will be paid for every flock according to production.
• Producers must adhere to agreed biosecurity standards including the Lion Code, RSPCA and Animal and Plant Health Agency standards.
• Fairburn’s Eggs will provide all pullets, feed from its Lincolnshire mill, and pay vet fees, in return for the income from eggs and spent hens.
• Producers will be responsible for labour, water, repairs, building insurance, clean downs, bird removal and pest control.
• Manure management will be the responsibility of the producer – any income can be retained by the flock keeper.
• A full flock’s notice will be required to terminate the arrangement.

Chief executive Daniel Fairburn said: “We know as farmers ourselves that our industry is going through a very tough time, so we felt this was the right way to provide reassurance for producers.

“We pledge to pay loyal producers a fair fee for looking after birds to our welfare standards, taking away as many risks as we can of rising costs and insecurities in the market.

“The demand is there for eggs and the aim of this new initiative is to take the jeopardy out of the process.”

However, the company said it was unable to share any financial details of the scheme because of the “highly competitive egg market”.

Instead, Fairburn’s encouraged farmers to get in touch to discuss the trading arrangement, without any obligation.

Scepticism

Despite the offer, some egg producers have responded to the announcement with scepticism.

During a British Free Range Egg Producers Association (Bfrepa) online discussion on the initiative, members voiced concern that the real issue of low farmgate prices was being sidelined.

One egg producer said the issue was that the producer price being paid by packers was crippling farmer suppliers.

At the same time companies beyond the farmgate were able to offset costs from higher returns being paid by consumers, he said.

Another asked: “Why not just pay the farmer a fair price and then everyone can make a living?”

Others, echoed that viewpoint, arguing that fair trade measures should be in place to ensure profit was distributed throughout the chain rather than just from the farmgate upwards.

And another producer raised concerns that the system ceded too much power to the buyer.