Wednesday, May 12, 2010

Hens and Cages

From Farm Policy
Rod Smith reported yesterday at Feedstuffs Online that, “American consumers buy eggs from cage housing systems by a margin of more than 40 to one over eggs from cage-free systems, according to data from Information Resources Inc. (IRI), which tracks checkout scanner transactions from 34,000 grocery and other retail stores in the U.S.
“Furthermore, based on other research, Americans pay three times less for eggs than Europeans do. Also, more than half of Americans prefer that egg producers continue to use current cage housing or migrate to alternative systems such as aviary or colony cages, and 44% prefer cage-free housing.
I wonder how it came to be that Americans pay three times less for eggs? Is the European poultry industry less concentrated?  Is it not vertically integrated as ours is? Do we just profit by the bigger market?  Do Europeans prefer more what in wine they call "terroir", which are the mostly imaginary qualities which are supposedly associated with production in a specific area.

[Updated--decided to do a little Googling and found this about the French industry.:]

National egg consumption over the last three to four years is estimated at 248 eggs per person on average, compared with 251 a decade ago.
Of these 248 eggs, 172 (69%) are believed to be table eggs, while the remaining 76 (31%) are thought to be processed eggs. Household purchases represent 40% of total consumption, followed by yolk and albumen (31%) for the food industry, table eggs for the catering sector (20%), and poultry farmers’ personal consumption (9%). Supermarket sales amount to nearly 4 billion eggs, or around one third of total consumption. Organic, Label Rouge and free-range eggs account for 28% of eggs sold and 42% of supermarkets’ turnover from egg sales. [I suspect here's a big difference.] France remains one of the EU’s biggest egg consumers.
The French egg market is at a crossroads in a fast-changing regulatory, economic and sanitary environment. While production and consumption perspectives remain favourable at international level, growth is slower in France and the rest of Europe, with a slight decline in production over the last few years.
The sector’s outlook depends on the development of EU-wide regulations concerning animal welfare, human health and the environment. The forthcoming ban on conventional cages, which is due to come into force on 1st January 2012, is expected to result in the further diversification of rearing systems and the development of alternative rearing methods, the ITAVI forecasts. In addition, growing awareness among consumers of animal welfare, as well as health and environmental issues, is likely to shape the market and benefit the organic sector.
The French poultry industry faces the tough challenge of adapting its production structures and making strategic investment choices over the next 20 years. However, the heavy costs involved may result in the disappearance of a number of small poultry farms, says ITAVI deputy manager Jean Champagne. Future production methods will have to guarantee human health and animal welfare as well as offer competitive prices, all the more so as the EU market is likely to be opened to imports from third countries that are not subject to the same requirements.

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