I am trying to gauge the impact on the national egg industry. Is there anyone who can talk about it? I am at 310-709-6609.

 

Chris Woodyard

Bureau Chief, Los Angeles

6060 Center Drive, Suite 900, Los Angeles, Calif., 90045

Bureau: 310-882-2403, Cell: 310-709-6609

Twitter: @ChrisWoodyard

 

On Tue, Oct 30, 2018 at 5:52 PM Ken Klippen < This email address is being protected from spambots. You need JavaScript enabled to view it.
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Hi Chris,

It was good talking with you just now.  The National Association of Egg Farmers is opposed to California’s Proposition 12 in that it will force all eggs sold in the state to be cage-free.

 

Why Prop 12 will be less HUMANE?

The “pecking order” is the term applied to chickens establishing dominance.  Where the population sizeis limited to less than a dozen birds reduces the harm from pecking as opposed to the thousands of chickens pecking each other in cage-free systems. It has lead to higher mortality among cage-free chickens.  Forcing chickens into production systems that increases mortality is less humane.

 

Currently, California is struggling with a major poultry disease (Virulent Newcastle Disease) with approximately 170 outbreaks in backyard (cage- flocks).  Once discovered, these chickens have to be destroyed.  This is not occurring in conventional farming methods using cages.

 

FOOD SAFETY-The US Animal Health Association October 17, 2017 Report stated: “Ascarids (round worms) are increasingly being found in cage-free operations with the concern being the possibility of a consumer finding an egg with a roundworm contained inside. Most all cage-free egg producers have had such an occurrence.” Chickens pick up roundworms when they come into contact with infected feces on the ground.

 

In the Journal Food Control published a study June 17, 2014 entitled “Microbiological Contamination of Shell Eggs Produced in Conventional and Free-Range Housing Systems”  The conclusions show why cages became the preferred method of producing safer eggs.

 

COST –After Prop 2 and the subsequent California law went into effect, the average price of eggs sold in California was 90% than the rest of the nation (see attachment).  This is substantiated by the US Department of Agriculture/Agricultural Marketing Service egg price reporting.

 

Proposition 12 will remove consumer choice.  The Animal Ag Alliance partnered with the Foundation for Food and Agriculture Research (FFAR) and the Food Marketing Institute (FMI) Foundation to study consumer beliefs and willingness-to-pay for specific attributes in cage-free eggs and slow-growth boilers. Each survey had more than 2,000 respondents who made choices between products that vary in price, production practices, labeling claims, packaging, product color and appearance.

 

Key Findings:

•           Overall, consumers report price, safety and taste as the most important factors they consider when purchasing eggs.

•           There is some potential for greater market share for cage-free eggs than what currently exists, but not a majority market share.

•           More than half of egg shoppers are price sensitive showing little willingness-to-pay more for cage-free.

•           Removing the option to buy affordable, conventionally-produced eggs significantly increases the share of consumers not buying eggs altogether.

 

I hope this covers everything we talked about.

Sincerely,

— 

Ken Klippen, President

 

On September 28th National Egg Farmers submitted the following reasons for why the nation’s egg farmers are opposed to the new ballot initiative in California, Prop 12, that will force all eggs sold in the state to be cage-free.

Why Prop 12 will be less HUMANE?

The “pecking order” is the term applied to chickens establishing dominance.  Where the population size is limited to less than a dozen birds reduces the harm from pecking as opposed to the thousands of chickens pecking each other in cage-free systems. It has lead to higher mortality among cage-free chickens.  Forcing chickens into production systems that increases mortality is less humane.

Dr. Ivan Alvarado, DVM with Merck Global Business reported at a poultry conference on the external parasites in cage-free farms. 83% of European cage-free egg farms are already infested with poultry red mites. All 27 member nations in the EU are about 40% cage-free compared to 16% in the U.S..The approved medication in Europe for this parasite is not approved in the U.S.  Subjecting poultry to parasites without the benefit of approved medication is inhumane.

Currently, California is struggling with a major poultry disease (Virulent Newcastle Disease) with approximately 140 outbreaks in backyard (cage- flocks).  Once discovered, these chickens have to be destroyed.  This is not occurring in conventional farming methods using cages.

Infectious Coryza Disease. The August 2018 Georgia Poultry Laboratory “The Chick Papers” reported “In more recent history, a new threat has made itself known. Virulent Newcastle Disease (VND), formerly known as Exotic Newcastle Disease (END), has spread through backyard flocks of California posing a threat to commercial production there.

Now there is Infectious Coryza (IC). To prevent exposure to IC, avoid suspected flocks and maintain your biosecurity procedures, especially if small flock operations are in your vicinity.” “Small flock operations are typically cage-free.

Forcing chickens into production systems where they contract poultry diseases is inhumane.

FOOD SAFETY-The US Animal Health Association October 17, 2017 Report stated: “Ascarids (round worms) are increasingly being found in cage-free operations with the concern being the possibility of a consumer finding an egg with a roundworm contained inside. Most all cage-free egg producers have had such an occurrence.” Chickens pick up roundworms when they come into contact with infected feces on the ground.

In the Journal Food Control published a study June 17, 2014 entitled “Microbiological Contamination of Shell Eggs Produced in Conventional and Free-Range Housing Systems”  The conclusions show why cages became the preferred method of producing safer eggs.

Penn State researchers in September 2016 published their research findings that eggs from small flocks of chickens are more likely to be contaminated with Salmonella enteritidis as eggs sold in grocery stores, which typically come from larger flocks of caged layers.

COST –After Prop 2 and the subsequent California law went into effect, the average price of eggs sold in California was 90% higher than the rest of the nation.  This is substantiated by the US Department of Agriculture/Agricultural Marketing Service egg price reporting.

Proposition 12 will remove consumer choice.  The Animal Ag Alliance partnered with the Foundation for Food and Agriculture Research (FFAR) and the Food Marketing Institute (FMI) Foundation to study consumer beliefs and willingness-to-pay for specific attributes in cage-free eggs and slow-growth boilers. Each survey had more than 2,000 respondents who made choices between products that vary in price, production practices, labeling claims, packaging, product color and appearance.

Key Findings:

•           Overall, consumers report price, safety and taste as the most important factors they consider when purchasing eggs.

•           There is some potential for greater market share for cage-free eggs than what currently exists, but not a majority market share.

•           More than half of egg shoppers are price sensitive showing little willingness-to-pay more for cage-free.

•           Removing the option to buy affordable, conventionally-produced eggs significantly increases the share of consumers not buying eggs altogether.

UK’s Guardian Reports NAEF’s Opposition to CA Egg Law

The March 2 issue of The Guardian reported the NAEF’s opposition to the California egg law. http://www.theguardian.com/sustainable-business/food-blog/2015/mar/02/california-egg-law-cage-free-pasture

It’s been over a month since California’s caged hens were given enough room to freely move their legs, but plenty of critics are still ruffled about the new law, which requires that egg-laying hens must be able to lie down, stand up, fully extend their limbs and turn around freely.

Bradley Miller, president of the Humane Farming Association, blasted both the law and its primary sponsor, the Humane Society of the United States, in an editorial published earlier this month in the Sacramento Bee. Calling the law an “obscene reversal of voter intent”, he criticized the Humane Society for allowing language in the law that promotes “the unending use of cages.”

Rather than incentivize egg producers to ditch cages, Proposition 2 has some farmers ordering new, larger cages, while others have simply reduced the size of their flocks.

As an unintended consequence, it’s one of the first times in recent history that conventional egg producers and animal rights activists have both opposed the same law, albeit for different reasons.

“It is bad for the egg farmer,” said Ken Klippen, a spokesperson for the National Association of Egg Farmers, an egg producer trade association. Because of the law, the members of Klippen’s organization have collectively decided to no longer sell eggs in California (NAEF requested this statement be revised as some members of the association are selling eggs in California)

That’s a big decision, given that California is a top consumer of eggs. In 2013, the last full year for which numbers are available, the state imported 9.2m cases of shell eggs – the equivalent of 11.7 million hens – and another 3m cases of eggs in liquid or dry form.

“The cost to implement the requirements in California could cost farmers upwards of $40 per chicken,” Klippen said. “In order to meet the space requirements in the law, some farmers in the midwest are culling (killing) upwards of 40% of their flocks.”

But while conventional egg producers think that the law goes too far and animal rights activists think that it doesn’t go nearly far enough, the net result for California consumers is fairly straightforward: conventional eggs have become more expensive, closing the price gap between traditional, cage-free, and pasture-raised eggs.

In the middle of the pack, from both a cost and a sustainability perspective, cage-free eggs have come under some scrutiny as egg-production practices have gained more attention. Not all cage-free systems are equal, and use of the label “cage-free” is not audited, although some producers do opt to get third-party certification. Hens in a cage-free system are still confined to a barn, and beak cutting and forced molting through starvation are still permitted.

The large size of many cage-free flocks is also problematic, according to University of California at Davis researcher Frank Mitloehner. Manure can build up, causing air pollution and food safety issues. There are also animal welfare issues: “there’s a high incidence of cannibalism in cage-free systems, and also high incidence of bone breakage,” he says.

The best choice, in terms of animal welfare, environmental impact, and human health, is pasture-raised eggs. Unfortunately, these have long been a luxury item, costing around $11 per dozen – more than three times the price of conventionally-produced eggs. But rising demand over the past several years has led to increased supply, and California’s new law has helped to both raise awareness and shrink the price gap, making pasture-raised eggs a viable option for more consumers.

Mike Badger, director of the American Pastured Poultry Producers’ Association (APPPA), says that California’s law makes it easier to compare egg production methods. “At a basic level, when APPPA talks about pasture-raised, we imply that the hens live outside for a significant portion of their life on rotated pastures. That looks a lot of different ways in real-life, but it definitely doesn’t include a confinement barn with cages or free range in confinement with ‘access’ to the outdoors.”

California-based pasture-raised egg producer Jake Townsend sees an even more direct benefit: as the price for conventional eggs goes up, the gap between them and pasture-raised eggs is closing.

“I’ve seen conventional eggs as high as $6 or $7 a dozen this month, and then you’ve got some pasture-raised eggs available at $9.50 a dozen, so all of a sudden people can pay just a couple dollars more for better quality eggs,” Townsend said. “Based on my conversations with both consumers and store owners, that’s a leap a lot of consumers are willing to make.” 

Townsend added that he’s seen a major increase in sales over the past two years and is in the process of building his company up as quickly as he can to meet skyrocketing demand.

Klippen’s organization is concerned about the complaints that animal rights activists have about the California law, as well as the benefit that it is bringing to pasture-raised egg producers. They worry that farmers will invest in transitioning to the new cages mandated by the law, only to be asked to ditch those cages in a year.

“We do not want to make the same mistakes reported by egg farmers in the EU,” Klippen said. “When German farmers made their transition to enhanced colony cages ahead of the EU law in 2012, animal activists then wanted those egg farmers to go to cage-free egg production. Those farmers made the capital investment in the newer cages in the hopes of years of use only to learn the activists wanted to further change how they produce eggs, driving some farmers out of business.”