11.07.2015 Views

2120 final report.pdf - Agra CEAS Consulting

2120 final report.pdf - Agra CEAS Consulting

2120 final report.pdf - Agra CEAS Consulting

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

APPENDIX 1: MEMBER STATE REPORTSTable A1.56: Capital (fixed) costs (per kg eggs) in Euro cents 2003Traditional cages Barn Free rangeLabour 10.54 15.00 16.12Buildings 3.76 8.66 9.30Equipment 5.21 5.77 6.20Land 0.91Manure disposal 1.53 1.52 1.54Insurance 0.58 0.82 0.89Utilities 2.55 2.67 2.70Cleaning 1.02 1.52 1.54Miscellaneous 0.58 0.82 0.82Total fixed costs 25.76 36.79 40.02Note: Although not shown, there will be a cost for land rental for the free range system.However, in many cases this is an opportunity cost and is therefore difficult to establish.Source: industry estimates.A1.8.2.6. Gross marginsUsing the cost data presented above, and adding revenue allows the presentation of producer grossmargin Table A1.57. The higher returns from alternative systems compared to caged systemsoutweighs the greater costs of production to yield higher gross margins.Table A1.57: Egg producer gross margin per kg (2003) in Euro centsTraditional cages Barn Free rangeEgg returns 86.65 106.64 139.97Revenue from spent hens -1.42 -1.73 -1.63Output (per year) 85.23 104.91 138.33Total variable costs 70.54 76.44 86.03Gross margin 14.69 28.47 52.30Source: industry estimates.A1.8.3. Egg processingIreland has only one egg processor, Irish Egg Products Ltd, and this company only produces liquid eggproducts with dried egg demand met through imports. The industry considers that it is essential tohave a domestic outlet for second quality eggs as this helps to buttress revenue. All domestic eggproducts are absorbed by the domestic market.Most second quality eggs are utilised by Irish Egg Products, although some small eggs are exported toprocessing plants in the UK via packers in Northern Ireland 101 . First quality eggs are used for boilingand these account for between 27% and 30% of total eggs processed in a typical year. Irish EggProducts do not produce differentiated alternative products, although they do break second qualityeggs from alternative systems which are procured without a premium.101 In the case of Greenfield Foods this amounts to about 4% of eggs packed.214

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!