Lessons to be learned from European Union’s cage ban

The European Union’s move away from conventional cages for egg production may now be complete, but achieving this change was not easy, and the process may provide an interesting example for others considering following suit.While the European Union’s decision to allow a long changeover period to phase out battery cages may have been welcomed, the lack of information on which housing systems would be acceptable and which would not resulted in under-investment in the egg sector and producers delaying making the change.

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Of the major European egg producers in 2012, two were located in the south of Europe, where greatest difficulties were experienced in transitioning out of conventional cages.
Of the major European egg producers in 2012, two were located in the south of Europe, where greatest difficulties were experienced in transitioning out of conventional cages.

The European Union’s move away from conventional cages for egg production may now be complete, but achieving this change was not easy, and the process may provide an interesting example for others considering following suit.

While the European Union’s decision to allow a long changeover period to phase out battery cages may have been welcomed, the lack of information on which housing systems would be acceptable and which would not resulted in under-investment in the egg sector and producers delaying making the change.

Total egg production may now have largely recovered after declines at the turn of the decade, but the European egg market did not escape price swings in response to a contraction in output followed by an unexpected upturn in egg production.

Long and unclear process

In 1999, the European Commission passed Directive 1999/74/EC, laying down minimum standards for the protection of laying hens. It stated that from January 1, 2003, it no longer would be possible to install conventional cages within the EU and that, from January 1, 2012, they would be completely prohibited. Prior to the final implementation of the directive, additional studies were conducted to examine the impact on hen welfare and the economics of production. These were not published until 2007.

The long lead to final implementation and to decisions regarding permitted housing systems resulted in very little investment in European egg production, as producers could not  be sure of what would be permitted under the final regulations. This delayed publication of this detail left producers with less time for implementation, writes Professor Hans-Wilhelm Windhorst, International Egg Commission (IEC) statistical analyst, in his report, "Patterns of European egg production and egg trade after the banning of conventional cages in the EU."  

With only six months left to complete the transition, 43.4 million layers -- or approximately 8 percent of the EU flock -- were still kept in conventional cages. Of this total, about 30 million were in Spain and Italy. To make matters worse, it was the southern European states that were the hardest hit by the economic downturn. They argued that they did not have the capital to invest and meet the required deadline. No extension was given.

Variety of hen housing

The switch away from conventional cages is now said to be complete. Enriched cages have been the most popular choice, but the change has been far from uniform across the various EU member states with governments and producers favoring different permitted housing systems.

In most member states, enriched cages now predominate and, by the end of 2012, in 13 of the EU 27 member states, 70 percent or more of the laying flock was kept in this way. However, in Austria, Germany, the Netherlands and Sweden, barn production is preferred, while free range, as a percentage of total production, is highest in the U.K. and Ireland. Organic egg farms are particularly popular in Denmark, Sweden, Austria and Germany.

Laying flock adjustment continues

The change had a considerable impact on the number of laying hens in the European Union and on egg production. Between January 2011, when over 364 million layers were kept, and January 2012, when the transformation process reached a critical phase, the number of layers decreased by almost 33 million birds. A recovery then took place, and between July and September 2013, a peak of 297 million birds was reached. Thirteen member states are thought not to have met the deadline.

However, from September 2013 a sharp decline in layers started to be witnessed, and by February 2014 the European flock stood at 376 million laying hens. 

The correlation between hen numbers and egg prices is not surprising. As the number of laying hens fell over the last months of 2011, egg prices continuously rose. However, when the flocks expanded again, prices fell. To help stabilize the market, fewer eggs were hatched and fewer pullets placed. The downward trend in the European laying flock has continued into 2014.

Absolute figures are yet to be published, and opinions vary as to total impact on European egg production, however, some estimates suggest that between 2010 and 2012, European egg production fell from 6,716 million tons to 6,590 million tons.

But this decline has not been evenly spread across the European Union, or continual in every member state. In Germany, for example, egg production decreased from 782,000 tons in 2008 to 656,000 tons in 2010, as the country implemented a ban on conventional cages two years ahead of the rest of the EU. In Spain, egg production fell from 937,000 tons in 2011 to 862,000 tons in 2012, while in France production contracted from 954,000 tons in 2010 to 856,000 tons in 2012.

However, a different situation arose in the Netherlands, where production grew from 644,000 tons in 2008 to 710,000 in 2011, before contracting to 691,000 tons the following year.

This volatility in the Netherlands was the result of Germany’s early ban on conventional cages and the resulting shortage of eggs in that country. Dutch producers increased output to supply the German market, but were forced to cut back as German producers recovered, and were also faced with their own implementation of Directive 1999/74/EC.

More sector challenges ahead

While the egg industry may have gone through the major adjustments necessary to address welfare issues relating to cages, there are other welfare challenges that it will have to face, and Windhost sounds a note of caution.

He notes that, particularly in northern and western Europe, there is a growing opposition to large production facilities and the environmental issues arising from the regional concentration of intensive poultry production in the regions of central and western Europe.

If the European egg industry does not find solutions to these problems, policy will be developed which may result in the loss of licenses to produce in current systems. 

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