Egg production in Canada
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1 Egg production in Canada Vincent Guyonnet, DVM, Ph.D, Dipl. ACPV Burnbrae Farms Ltd. VP Quality Assurance Fjerkraekcongress Februar 7, 2013
2 Agenda Brief introduction to the Canadian Poultry production; Canadian egg production eggs, layers and the quota system; Shell eggs and liquid egg products in retail stores;
3 Canada 34.5 million people; Federal government with 10 provinces and 3 territories; Two official languages + some native languages; About 5,000 kms from coast to coast = Copenhagen to Kabul, Afghanistan!
4 Consumption of animal protein Animal Protein Consumption in 2011 Trend ( ) Eggs and egg products 16.8 dz or 13.9 kg + 8% Chicken 31.2 kg - 2.5% Turkey 4.3 kg - 4.5% Beef 27.5 kg - 10% Pork 20.8 kg - 17% Source: Poultry and Egg Industry: 2011 data Farm Products Council of Canada (2012)
5 Canadian Poultry production 2011 Data Broilers Eggs Turkeys Number of producers Production (bird / eggs) 2,664 1, million tonnes million dozen 158,974 tonnes Export 144,600 tonnes 11,100 tonnes 22,200 tonnes Import 219,600 tonnes 18,900 tonnes 7,300 tonnes Source: Poultry and Egg Industry: 2011 data Farm Products Council of Canada (2012)
6 Canadian egg production Characteristics Number of layers 21,655,000 Number of producers 1,010 Self-sufficiency 97% Av. Farm size 20,000 layers Ratio White/Brown 90% - 10% Housing systems Conventional cages 95%, Organic 1%, Others 4% Grading stations 221 Egg processing 14 Source: Egg Farmers of Canada, 2011; FAO/IEC survey 2010;
7 Canadian egg production Characteristics Av. kg feed / kg egg 2.1 Diet Av. laying period Corn-based (East), wheat-based (West) 55 weeks Av. Eggs/ hen / cycle 320 % Mortality 3% (pullets), 4.8% (layers) Molting Non-feed withdrawal molting allowed but seldom practiced Source: Egg Farmers of Canada, 2011; FAO/IEC survey 2010
8 Number of producers Canadian egg production Million dozen eggs Source: Poultry and Egg Industry: 2011 data Farm Products Council of Canada (2012)
9 The Canadian quota system National supply management established in 1972 for eggs, milk, turkey, broilers and broiler hatching eggs; System designed to match supply with demand, resulting in a stable supply and fair prices to producers; Controlled by a national organization (Egg Farmers of Canada - EFC) and 10 provincial boards; Farmers must own a production quota over laying hens;
10 The Canadian quota system 3 pillars to the supply management system: 1. Import control; 2. Producer pricing; 3. Production discipline;
11 The Canadian quota system Pillar 1 - Import control: 21.4 million dozen eggs (WTO agreement); 2.988% of previous year production (NAFTA agreement); Import permits required and granted under a tariff rate quota system;
12 The Canadian quota system Pillar 2 - Producer pricing: Cost of production survey conducted every 5 years by independent firm; EFC formula (national) based on pullet prices, feed costs, return on capital and costs of production; Prices reviewed monthly by each provincial board; In 2011, prices paid to producers was ~ C$ /dz = DKK / dz (Grade A large); Levies (National and provincial) ~ C$0.40 / dz = DKK 2.3; Price set only for regular eggs;
13 Supply management and prices Consumer Price index (2002 base) Source: Poultry and Egg Industry: 2011 data Farm Products Council of Canada (2012)
14 The Canadian quota system Pillar 3 Production discipline: Quota allocation reviewed annually under the control of a governmental agency; Quota allocation granted based on specific criteria in terms of growth of the table eggs and the liquid eggs markets; National quota allocation divided among the provinces as per the current % breakdown corrected for population growth;
15 Consumption (dozen / hab) Production discipline Production (million dozen) Source: Poultry and Egg Industry: 2011 data Farm Products Council of Canada (2012)
16 0.4 % 0.3 % % 13.3 % % 11.0 % % 3.1 % 75 Production discipline 10.5 % 3.6 % % 38.8 % % 23.1 % 106 % Egg production % Canadian population Nbr of producers 2.1 % 2.2 % % 1.5 % % 0.4 % % 2.7 % 23
17 Egg flow in Canada National price formula and provincial producer prices for Grade A eggs Egg flow Payment flow FARMS EFC allocates surplus to egg processors (USbased price) Levy collected on each dz eggs GRADERS Surplus table eggs bought back by EFC Selling price to retail stores set by each grader STORES
18 National/Provincial activities Campaigns to enhance egg consumption; Education campaigns of health professionals; Heart & Stroke foundation health check program; Sponsoring of University chairs and research; Field inspectors to enhance On-farm food safety (Start Clean, Stay Clean) and Animal Care program; Dialogue with government on behalf of egg farmers (e.g. $8 - $30 = DKK compensation for AI); Activities to keep social license of egg industry;
19 Financial profile of eggs farms Average per Farm Total assets C$ 4,979,373 DKK 28,254,537 Total liabilities C$ 1,192,278 DKK 6,765,362 Total revenue C$ 1,001,518 DKK 5,682,930 Total expenses C$ 830,590 DKK 4,713,030 Net cash Farm income C$ 170,928 DKK 969,900 Av. age youngest farmer 43 Av. age oldest farmer 55 C$ 1.0 = DKK 5.7 Source: Poultry and Egg Industry: 2011 data Farm Products Council of Canada (2012)
20 Net cash farm income Type of animal production Average per Farm Eggs C$ 170,928 DKK 969,900 Broilers C$ 154,709 DKK 877,867 Turkeys C$ 137,575 DKK 780,644 Milk / Dairy C$ DKK 746,382 Pork * C$ 77,080 DKK 437,376 Beef * C$ 8,668 DKK 49,184 C$ 1.0 = DKK 5.7 * No supply management Source: Poultry and Egg Industry: 2011 data Farm Products Council of Canada (2012)
21 Marketing of eggs and egg products at retail
22 Egg packaging in Canada Styrofoam 20% Pulp or fiber 67% Clear plastic 6% Bulk 7% Source: FAO/IEC survey 2011
23 Egg counter in retail stores
24 Specialty shell eggs Nutritionallyenhanced shell eggs
25 Specialty shell eggs Shell eggs from alternative production systems
26 Retail price of shell eggs Omega 3 eggs (dz) 10% total market C$ 3.92 or DKK 22.3 Average retail prices Sept C$ 1.0 ~ DKK 5.7 Other Specialty eggs (dz) 4% total market C$ 4.95 or DKK 28.2 Source: EFC, 2012 Regular eggs (dz) 86% total market C$ 3.04 or DKK 17.3
27 Hard boiled eggs Convenient; Healthy snack food; Eat on the run ;
28 Retail Liquid egg products
29 Retail Liquid egg products Egg white based product with vegetables or cheese addressing key consumer needs: Convenience; Taste; Health;
30 Retail Liquid egg products Liquid eggs can be enriched with various functional ingredients: Omega 3; Lutein; Vitamins;
31 Burnbrae Farms Limited Own ~ 1.1 million hens on several farm sites (6); Grade eggs from ~ 8 million hens; About 1,000 employees across Canada; Main products: shell eggs, functional eggs and egg products;
32 Conclusions Since 1972, Canada has adopted the unique supply management system which guarantees a fair return to producers; Through levies, the national and provincial organizations contribute to the growth and sustainability of the egg industry; Canada enjoys one of the highest share for omega 3 shell eggs and continue to develop the specialty egg segment through the marketing efforts of egg graders;
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