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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 HENSMedication/vet 0.85 2.55 2.77 2.81Miscellaneous 2.48 2.24 2.26 2.52Bird depreciation/live pullets 18.07 24.03 26.01 46.82Total variable costs 61.41 78.15 83.04 141.48Source: Danish Poultry Council and industry estimates.Table A1.16: Capital (fixed) costs (per kg eggs) (prices in € cents at 1DKK = €0.134)Traditional cages Enriched cages Barn Free-range OrganicLabour 4.62 6.16 8.75 12.69 19.25Buildings 4.69 4.69 6.25 6.36 12.55Equipment 6.92 7.82 6.96 7.00 7.89Land 0.88 1.02Manure disposal 2.01 2.01 2.17 2.27 2.27Insurance 1.03 1.03 1.82 1.98 2.01Utilities 0.96 0.96 2.00 2.18 2.21Cleaning 1.71 1.71 5.47 5.95 6.02MiscellaneousTotal fixed costs 21.94 24.38 33.42 39.31 53.20Note:1 The cleaning cost for enriched cages has been assumed equal to that for traditional cages, although it is widely expected tobe higher given the difficulties expected in cleaning cage furniture.Source: Danish Poultry Council and industry estimates.Cost data above and calculated gross margins in the following Section are based on figures from2003. Due to Avian Influenza in the Netherlands and elsewhere, and a hot summer in southernEurope, market conditions for eggs were favourable in 2003 with gross profits about a third higherthan what is considered typical.A1.3.2.6. Gross marginsTable A1.17 builds on the cost data in Section A1.3.2.5 and presents revenue figures and producergross margin. Alternative production systems have higher returns resulting from available premiaand a higher revenue for spent hens. This is mitigated to some extent by higher variable costs, butstill results in a substantially higher gross margin.Table A1.17: Egg producer gross margin (€ cents per kg) 56Traditional cages Barn Free-range OrganicEgg returns 80.20 125.06 135.93 201.13Revenue from spent hens 0.18 0.71 0.71 1.25Output (per year) 80.38 125.78 136.65 202.38Total variable costs 61.41 78.15 83.04 141.48Gross margin 18.97 47.63 53.60 60.90Source: Danish Poultry Council.56 At DKK 0.134 to the Euro.136

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