2120 final report.pdf - Agra CEAS Consulting

APPENDIX 2: THIRD COUNTRIESA2.4. United StatesA2.4.1. OverviewSince 1989, the production of eggs has steadily risen in the U.S. reaching 74.4 billion eggs in 2003.Between 1990 and 2003, production rose 26% or by an average annual rate of 1.8%.The U.S. egg industry, like those in many other countries around the world, has undergoneenormous structural change over the past four or five decades. Egg production in the U.S. has gonefrom a small-scale, barnyard operation where in 1959 more than 1.1 million farmers (30% of thetotal) produced eggs for sale to the present day where the 260 largest egg producing firms accountfor an estimated 95% of all layers.Around 60% of shell eggs are produced through vertically integrated operations. Some of these arevery substantial. At the end of 2003 there were 62 firms with 1 million or more layers in production.Collectively, these firms accounted for about 84% of national production. The largest single producerCal Maine Food Inc. held 21.1 million layers. Of the leading firms, 13 had more than 5 million layersin production at the end of 2003 and 6 firms had more than 10 million layers in production.The trend in recent years is for a decreasing share of eggs to be marketed directly to the cateringsector and for an increasing share to be marketed through the processing industry which now takessome 30% of eggs produced.While an estimated 99% of output is in from caged systems the U.S. egg industry has taken aproactive approach to promoting the adoption of animal welfare standards. Beginning in 1999, theUnited Egg Producers (UEP), working in concert with McDonald’s Corporation, began working on aset of industry guidelines. The resulting guidelines were adopted by the industry in 2002 and havesince become the basis for the acquisition requirements of many of the largest buyers of eggs and eggproducts in the U.S., including McDonald’s.Adoption of the guidelines is voluntary. Firms that adopt the guidelines are recognised as ‘AnimalCare Certified’ companies and are authorised to display the Animal Care Certified logo on theirpackaging and to market their eggs as Animal Care Certified. The UEP reported in late 2003 thatmore than 200 egg producers representing 84% of U.S. laying hens had adopted the guidelines andwere implementing them. One of the main features of the guidelines is the requirement that:Depending on the size of the bird and the size and style of the cage, floor space of 432cm 2 to555cm 2 per hen are to be provided. This requirement is to be phased in over a 5-year periodending in 2008.363