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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 HENSnot invest in enriched cages or alternative systems, but will choose to retire or leave the sectorinstead.A1.4.2.1. Main packersMunakunta is the dominant packer in Finland and is a producer co-operative. This position in themarket was consolidated in 2001 with the purchase of A-Muna Oy, a large private packer previouslyowned by a multiple retailer. Munakunta accounts for just over half (55% in 2003) of all eggs packed.Box A1.11: Profile of MunakuntaMunakunta is the largest egg packer in Finland accounting for more than half of all eggs packedOwnership: Munakunta is a producer co-operativeSubsidiary: Munakunta owns 65% of ScaneggTurnover: €46.9 million in 2003 (this figure is for the Group as a whole and includes Munakunta’sshare of Scanegg). Turnover for the shell egg business was €41.2 million in 2003Profit: €1 millionEmployment: 79 staff (Munakunta Grouop, but not including Scanegg)Main markets: in volume terms, domestic 71%, shell egg exports 14%, 15% for processing,mainly domesticA1.4.2.2. Production (packer) concentrationThe nature of egg production in Finland is fragmented with, according to the key players spoken to,too many producers and too many packers leading to excessive competition. The contract system isnot as developed as it could be resulting in some marketing problems. Prior to joining the EU theFinnish government took responsibility for exporting the often significant surplus (with exportsubsidy). On accession this assistance was phased out and the resulting domestic surplus caused asevere downward price adjustment. A lot of egg producers were forced out of business at this time,although the government was able to provide support for restructuring under temporary accessionagreements.The packing sector of the industry is dominated by Munakunta and there is a big difference in scaleseparating this company from the rest of the industry. Table A1.21 presents the main egg packers inFinland.Table A1.21: Main egg packers in FinlandRank Company Output 20031 Munakunta 32.7 million kg, 523.0 million eggs2-6 Munakuutoset (5 packers who compete domestically,11.7 million kg, 187.2 million eggsbut co-operate in export markets)7 Narpes egg packery 2.0 million kg, 32.0 million eggs (estimates)8 Ōsterbotten egg centrallag 1.8 million kg, 28.8 million eggsTotal production59 million kg, 944 million eggs148

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