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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 HENSTable A1.24: Fixed (capital) costs of production per kg eggs (2003) (prices in Euro cents)Traditional cagesLabour 15.26 28.37Buildings 1 0.65 1.04Equipment 1 1.32 1.08Manure disposal 2.01 2.17Insurance 1.03 1.82Utilities 3.37 5.20Cleaning 0.96 1.17Miscellaneous 2 0.19Total fixed costs 24.60 41.05Notes:1 Building and equipment costs include repairs and maintenance.2 Miscellaneous includes litter in the barn system and the annual veterinary inspection of €200, although at the per dozeneggs level this cost does not feature.Source: Suomen Siipikarja 4/03 and <strong>Agra</strong> <strong>CEAS</strong> <strong>Consulting</strong> calculations.BarnA1.4.2.6. Gross marginsBased on the costs in the preceding Section, Table A1.25 presents revenue and gross margin for boththe caged and barn system. The premium for barn eggs is sufficient to outweigh the higher variablecosts and provide a gross margin almost three times that for caged production. However, thereader should bear in mind the higher fixed costs associated with the barn system.Table A1.25: Egg producer gross margin per kg (2003) (prices in Euro cents)Traditional cagesEgg returns 80.00 112.00Revenue from spent hens -1.04 -1.12Output (per year) 78.96 110.88Total variable costs 68.20 76.36Gross margin 10.76 34.52Source: Suomen Siipikarja 4/03 and <strong>Agra</strong> <strong>CEAS</strong> <strong>Consulting</strong> calculations.Notes:Spent hens incur a cost, hence this potential revenue is negative.BarnA1.4.3. Egg processingThe egg processing sector in Finland is extremely concentrated with just two main producers, one ofwhich, Scanegg, dominates. The main processed egg product in the market is liquid plain eggaccounting for approximately 70% of the Finnish market. The other main products are salted eggyolk, mixtures (including with added salt, milk powder or cream) and products with longer shelf lives.These, with frozen plain liquid egg, egg white, cooked whole egg and cooked white account for theremaining 30% of the market. The vast majority of Finnish processed egg products are for domesticconsumption with small quantities of exports produced to order.153

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