2120 final report.pdf - Agra CEAS Consulting

APPENDIX 1: MEMBER STATE REPORTS70,00060,00050,000Number of flocks40,00030,00020,00010,000-1970 1980 1990 1995 20001-49 50-199 200-4999 5000+Figure A1. 76: Evolution of flocks by size categories 1970-2000Source: Statistiska Centralbyrån (SCB).This general trend is supported by concentration in the caged sector, although the growth ofalternative systems has applied some pressure in the other direction as barn systems are typicallysmaller scale.Whilst most large scale producers (typically using enriched cage systems) tend to be specialist eggproducers in that the egg enterprise is the most significant economically, producers using barn andorganic systems are generally more diversified. Another typical difference is in the age of theproducer with younger farmers, often new entrants to the sector and educated to a higher level,tending to use alternative systems.The central packers tend not to own production facilities with around two thirds of their eggssourced on contract. It is becoming increasingly less common for these large packers to ownproduction facilities as well. Whilst the relationships between producers and packers are generallylong-term, contracts are often on a 9 month rolling basis. The main packers are not generallyintegrated with the producers in that laying stock is sourced from independent hatcheries/rearersand producers are free to buy feed from whichever supplier they choose. Packers pay producersmarket price for their eggs with some quality bonus according to grades and cleanliness.The smaller scale producer/packers operate somewhat differently. Many of these also source acertain amount of eggs from other producers and some work co-operatively with their producers tosource feed. These packers tend to supply smaller scale and more local retailers and only a small297