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2120 final report.pdf - Agra CEAS Consulting

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THE SOCIO-ECONOMIC IMPLICATIONS OF THE VARIOUS SYSTEMS TO KEEP LAYING HENSBox A1.8: Profile of Hedegaard FoodsHedegaard Foods accounts for 40% of all eggs packed in DenmarkOwnership: Hedegaard A/SSubsidiary: NoneTurnover: DKK 380 million, €50.9 million (2003)Profit: DKK 29 million, €3.9 million (2003)Employment: 112 (2003)Main markets: DomesticA1.3.2.2. Production (packer) concentrationThe Danish industry is concentrated with only around 300 commercial egg producers, of which 200account for three quarters of total production. The packing level is also very concentrated with just38 registered packers, of which two, Danæg and Hedegaard Foods dominate with more than 90%market share between them. These are followed by four packers who between them account for afurther 7.5% of market share. The remaining packers are very small scale in comparison.Table A1.12: Main egg packers in DenmarkRank Company Output 20031 Danæg A/S 408.0 million eggs (estimate)2 Hedegaard Foods 345.0 million eggs (estimate)3 Hønseriet Henriettelund 22.5 million eggs (estimate)4 Møllebjerggård Ægpakkeri 22.5 million eggs (estimate)5 Dueholm 11.0 million eggs (estimate)6 Flinterup 5.5 million eggs (estimate)Total productionNote: estimates are calculated from the mid-point of an estimated percentage range of market share.818.0 million eggsThe 4-firm concentration ratio for Danish egg packers is therefore high at 97.6%. It is not possibleto calculate the 8-firm concentration ratio accurately, but assuming the remaining packers are all thesame size it will be around 99.6%. At least three mid-sized egg packing companies have ceased toexist since 1995 (what was at the time the third largest company was taken over by HedegaardFoods in 2002, the other two were acquired by Danæg). The egg packing sector has thereforebecome more concentrated over time.A1.3.2.3. Main production systemsJust over half (56.5%) of Danish commercial egg production takes place in traditional cages. Theremaining production is dominated by deep litter and organic systems accounting for 20.4% and14.1% of egg production respectively in 2003. Just over half (56.9%) of eggs sold in the retail sectorare from caged hens with 19.9% from barn systems, 14.8% from organic and 8.5% from free rangesystems see Figure A1.12in Section A1.3.5.1. Despite the dominance of the caged system, the Co-op,accounting for one third of the Danish retail market, <strong>report</strong>s that 31% of the value of egg sales is130

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