2120 final report.pdf - Agra CEAS Consulting

THE SOCIO-ECONOMIC IMPLICATIONS OF THE VARIOUS SYSTEMS TO KEEP LAYING HENS100%90%80%70%Percentage of all laying hens60%50%40%30%20%10%0%1970 1980 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 20021-99 100-999 1,000-9,999 10,000+Figure A1.8: Evolution of proportion of laying hens by flock size 1970 to 2002Source: Danmarks Statistik.Further evidence of consolidation in the egg production sector is provided by data from Danægshowing that in 1990 they packed 41,810 tonnes of eggs sourced from 170 producers (i.e. 246 tonnesper producer) whilst in 2003, 80 producers provided 28,514 tonnes (at an average of 356 tonneseach).A large proportion of egg production in Denmark is currently carried out by specialist eggproducers, although this was not always the case. In 1970, almost half of farms had laying hens (48%),although this had fallen to just 8% in 2002.Most production (around 90%) is carried out on contract to a packer (or a processor where the eggshave certain required quality traits). The terms differ with Hedegaard Foods stipulating thatproducers buy feed from the feed division of the company and Danægg demanding purchase ofpullets from specified rearing units. Contracts do not usually specify price which fluctuatesdepending on the market price in north Germany and the Netherlands. Whilst contracts are oftenfor a period of six months to a year, the relationships between producers and packers are long-termin nature.128