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Egg Production
The Global Egg Industry | The Australian Egg Industry | The Victorian egg Industry | Housing Systems
Related Information
Animal Health
Animal Welfare
Code of Accepted Farming Practice for the Welfare of Poultry
Prevention of Cruelty to Animals (Domestic Fowl) Regulations 2006 (PDF 284KB)
Related Sites for Victorian Farmers
External Websites
Australian Egg Corporation Limited (Australian)
World Poultry (Global)
Hen Welfare Advisory Group
Eggs have long been consumed in Australia as they an excellent source of protein, easy to prepare and relatively inexpensive when compared to other protein sources such as red meat.
The Global Egg Industry
The number of layer hens in the world is estimated at 5690 million in 2006 producing just over 66 million metric tons of eggs. Asia, the largest egg producing region, produced 42.4 million tons in 2006 with China, the Worlds largest egg producer, produced just under 30 million tons (44.9% of the global egg production). Europe produced around 10.1 million tons while North America produced just over 8.2 million tons (FAO Database, 2006). Australia is ranked 41st in terms of egg production with approximately 13 million layers producing 164,000 tons of egg. The figure 1 pie chart shows the top 10 egg producing countries compared to Australia and the rest of the world.
The Australian Egg Industry
General
Egg Marketing
General
The commercial egg industry in Australia developed in the 1920's and has progressed to the stage where in the 2004/2005 financial year the number of eggs produced in Australia was 203 million dozen eggs year (AECL). The national flock as at the 30th of June 2005 was approximately 13.2 million hens (ABS catalogue 7121.0). Gross value of egg production at the farm gate for the year ended June 30, 2005 was $288 million while the gross value of production at wholesale was $327.9 for the year ended June 30, 2005 (ABS catalogue 7503). The majority of eggs are produced in commercial operations but it was estimated that in the year ended 30 June, 1999, 318 million eggs or 26.5 million dozen eggs were produced in non-commercial backyard operations (ABS catalogue 4306). This number of eggs equates to approximately 1.4 million non commercial hens. It is likely that the number of eggs produced in non commercial operations has decreased significantly with the demise of the backyard poultry house.
Egg Marketing
The main egg market in Australia is the shell egg market which accounts for approximately 80 - 85% of all eggs consumed. The remaining eggs are sold as processed egg products, which encompass a range of value added products such as egg pulp, liquid white, liquid yolk, dried egg yolk, dried white, boiled eggs, peeled eggs, omelette mix and scrambled egg mix. In Australia an increasing proportion of eggs are being processed into egg products due to the growth in the processed food sector and the growing demand for convenient custom prepared product.
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Victorian egg industry
Structure
Farm demographics
Housing systems
Structure
Corporations, partnerships and family run businesses are responsible for egg production and marketing in Victoria. The largest commercial egg organisation in Victoria is Farm Pride Foods, formerly the Victorian Egg Producers Cooperative. Many egg producers enter into supply contracts with Farm Pride and the majority of eggs are packaged and graded at a grading floor in Keysborough. Farm Pride also has agreements with certain farmers to provide graded and packed eggs and directly to retail stores. Farm pride can grade and pack up to 16000 eggs per hour (1,400 dozen per hour). The remainder of the market is split between interstate and independent producers. Some of the other major egg producing companies in Australia are Pace Farms, Sunny Queen Farms, Novo Foods and Golden Egg Farms in Western Australia.
Size and Value of the Victorian egg industry
The gross value of eggs produced in Victoria for the year ending June 30, 2005 has been estimated to be $92 million, which accounted for 28.1% of Australian production (ABS Agriculture Australia 7503.0 1988-2003).
As of June 30, 2005 the number of layer hens for egg production in Victoria is estimated at approximately 3.3 million (includes backyard flocks, pullets and breeding hens) (ABS Agricultural Commodities 7121.0 1999-2000). This accounted for approximately 25% of the national flock. Egg production in Victoria in 2005 was just below 57 million dozen and accounted for approximately 28% of Australia’s production (ABS Agriculture Australia 7121.0 1996-2005).
Farm demographics
Farm size (in the year 2000) in the Victorian egg industry is small relative to international standards with 67% of farms housing less than 20,000 birds and only 8 farms capable of housing more than 100,000 birds. However, with the push to increase production efficiency, farm size in the cage egg industry is increasing while farm number is declining. To illustrate this point, in 1937 there were approximately 100,000 egg producing farmers in Victoria producing 16 million dozen eggs. By 1987 the number of egg producers in Victoria had decreased to 413 while egg production had increased to 49 million dozen. Currently it is estimated that there are about 130 (60 cage and 70 alternative systems) commercial egg farms with capacity of more than 1000 hens, operating in Victoria.
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Housing Systems
Intensive Cage Systems
Free Range Systems
Barn Lay Systems
Intensive cage systems
Cage based production is the most dominant production system in Australia as the majority of consumers purchase eggs based purely on price. Approximately 79% of shell eggs sold in Australian supermarkets are from intensive cage systems, despite clear labelling on egg cartons. It is estimated that 15% of eggs sold at a retail level are from free range and 6% are from barn systems.
Modern systems are controlled environment sheds with computerised microclimate control. Cages are made of welded wire and in Victoria each hen must be provided with a minimum of 450 cm2 of cage floor space for pre January 2001 cages and 550 cm2 for new cages installed post January 2001 cages (Code of Accepted Farming Practice for the Welfare of Poultry, 2003, Agnote AG1143). Feed and water are provided ad lib. Most modern egg operations also have feed provided by automatically.. Many of the modern control environment sheds have manure belts that run directly under the cages and into an area set aside for faecal collection. The majority of belt systems incorporate drying facilities to remove moisture from the faeces and reduce odour emissions. Cages are sloped to allow the eggs to roll clear of the hens following ovipositing. Eggs are collected daily either manually or automatically via a conveyor belt, which runs directly into an egg collection room.
Cage production systems are very efficient –providing lower cost to the consumer. Other benefits of cages, as compared to alternative systems, include minimisation of the risk of disease introduced by wild birds or predators, minimisation of the risk of manure-borne disease and parasites, reduced social competition, ease of egg collection, lower feed requirement per egg produced, decreased labour requirements, increased number of birds per given area, floor eggs are eliminated, culling is expedited, broodiness is eliminated, reduced number of faecal contaminated eggs and easier flock supervision.
The main disadvantage of cage systems is the lack of freedom of movement within cages, a factor which will ensure that the egg industry continues to be a key target of animal welfare groups. Other disadvantages include the laborious nature of bird placement and removal from cages, investment per bird may be higher and the bones are often more fragile resulting in a reduced price at the processor.
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Free Range Systems
Free range production systems provide birds with the ability to range or move around in both in-door and out-door space. Birds can nest, dust bath, perch and move freely. Birds are exposed to natural light in addition to artificial light. Free range systems account for about 15% of Australian supermarket shell egg sales. The average commercial free-range flock consists of 1000-2000 hens but there are now free range farms with as many as 50,000 – 120,000 birds.
Free range eggs are more expensive to produce for several reasons:
- Greater area of land required
- Increase labour input per bird
- Higher feed consumption
- Reduced productivity compared to cage systems
- Increased mortality due to a range of factors including risk of viral and bacterial disease being introduced by wild birds and rodents, exposure to predators such as foxes and eagles, and increased risk of parasitic disease.
- Increased risk of social competition
- Increased number of floor eggs
- Absence of economies of scale in grading, packaging and distribution compared with the cage industry.
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Barn Lay Systems
An alternative system in the Victorian egg industry is the barn system, which is modeled on developments in Europe. It is basically an automated deep litter system whereby birds are free to move within a shed but not permitted outside. This eliminates the risk of predators such as foxes and eagles and also reduces contact with wild birds which may carry disease. Birds can nest, dust bathe, perch.. Like free-range systems, barn systems have some disadvantages including reduced productivity compared to cage systems, increased risk of social competition which can reduce welfare and increase the incidence of mortality, and increased number of floor eggs. Barn produced eggs accounts for approximately 6% of Australian supermarket shell egg sales. The key to the viability of these systems has been the development of automated nesting systems facilitating efficiency in egg collection while minimising floor eggs.
There are about 4 of these systems operating in Victoria (as at November 2003) with varying degrees of investment in automation. Shed sizes are up to 10,000 hens. The RSPCA has recently examined this option as an alternative to cages and has accredited all of these Victorian farms.
The challenge for barn systems will be to identify the major limitations, such as equipment and management, and push the barn lay sector to comparable biological performances as seen in caged hens. If the efficiency of these systems can be improved the prices of eggs from barn systems will decline and, thus, market share is likely to increase.
At this stage consumers have a limited understanding of the relative merits of the Barn system verses Free Range systems and are influenced by the traditional and aesthetic appeal of Free Range.
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