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The total value of shell egg exports in 2007 was an all-time record $63.46 million. And it may be a
record that stands a while. For both shell egg and egg products, the total value reached $137.68 million, a 30.8 percent increase over 2006, and second only to 1996.
Don’t look for 2008 to set any records, however. “USDA looks for a 5 percent decrease and I agree,” says Re-nan Zhuang, staff economist with the USA Poultry and Egg Export Council (USAPEEC). For January, exports of table eggs were 1.6 million dozen or 76 percent less than January 2007 on
volume and 61 percent less on value of $1.58 million.
Hong Kong Decreases Imports“The January decrease is mainly due
to a signifi cant decline of nearly 2 mil-lion dozen or 76 percent in exports to Hong Kong, the single most important
market for U.S. table eggs,” Zhuang says. In addition, exports to other im-portant importing countries such as Israel and Mexico declined by 77 per-cent and 90 percent, year over year, respectively. Exports to Canada, mean-while, were up 340 percent, or 254,548 dozen. Zhuang gives two key reasons for a decline in table egg export value this year: the egg hatch is increasing, and U.S. consumption is increasing slightly.
On egg products, “there may be some recovery in volume this year,” Zhuang says. Volume in 2007 was down 1,774 tons or 5.3 percent from 2006. The top three importing countries for U.S. egg products in 2007 were Japan, Canada, and Mexico. Imports from those coun-tries represented 58 percent of all U.S. egg product export volume in 2007. While egg product exports were down 11 percent on volume year-over-year, the value of egg product exports was up by 9 percent, thanks to increased export prices. On value, which Zhuang thinks is a better measure for egg prod-ucts because six products are aggregat-ed together. Exports in 2007 reached
Shell Egg Exports Hit Record Value in 2007
By Dr. Simon M. Shane and Edward Clark
Shell Egg Exports Hit Record Value in 2007 1Industry News 4Just 13 States Increased Layer Numbers in 2007 6Despite High Prices, Egg Sales Strong 8It’s a Retrofi tting, Reconfi guring Kind of Year 10Kreider Farms Wins 12Calendar 16Marketplace 18
www.WATTpoultry.com APRIL 2008 volume 113 number 4
120
TOTAL U.S. EGG EXPORTS, WORLDWIDE (Million dozen)
100
80
6040
20
02002 2003 2004 2005 2006 2007Source: FAS Table Egg Egg Product (equivalent)
Shell egg export volume increased 42 percent in 2007.
0804EIcover.indd 10804EIcover.indd 1 4/4/2008 10:46:34 AM4/4/2008 10:46:34 AM
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0804EIcover.indd 20804EIcover.indd 2 4/4/2008 10:46:39 AM4/4/2008 10:46:39 AM
$74.22 million, an increase of $5.44 million, or 7.9 percent from the previous year.
Reasons for the IncreaseWhat allowed for the surge in 2007? With the record set on
egg product value, it was largely due to an increase in product prices, says Zhuang. On table eggs, “I think the outbreak of bird fl u was the major reason behind the strong import demand by those countries in 2007. Besides, the United States is more competitive in egg production than those countries thanks to advanced facilities and tech-nology,” Zhuang says. The increase in imports by some European countries is due to cage-free measures, some ana-lysts say.
In total, U.S. producers achieved a 42 percent increase in shell egg export volume in 2007, from 55.6 million dozen to 78.7 million dozen during the year, according to USDA. Export value
of table eggs in 2007 was $36.5 million. On a per unit value, table eggs increased from 66 cents per dozen in 2006 to 81 cents per dozen in 2007. During 2006, to-tal shell exports represented 0.86 percent of annual production of 6,494 million dozen. In 2007, volume represented 1.22 percent of the production of 6,409 million dozen. The 0.36 percent increase in ex-port, corresponding to 23 million dozen is equivalent to the output of a constant fl ock of one million hens, assuming 80 percent fl ock production. Exporting 1 percent of U.S. production in a year is equivalent to the output of 2.8 million hens or ap-proximately three one million-hen in-line units.
Major ImportersThe major increases in shell eggs last
year were recorded to the Middle East [UAE, Israel and Iraq] and the EU-27, [with the Netherlands and Germany as
the major destinations] and to East Asia [predominantly China], notes Zhuang. He says “exports of egg products to Japan, tradi-tionally a signifi cant market, decreased by 19 percent in value to $25.3 million.”
USDA notes that shipments of eggs and egg products more than doubled to the EU-27 last year. Exports overall are forecast to decline from 251 million dozen, shell egg equivalent in 2007 to 230 million dozen this year. EI
l Shell Egg Exports Hit Record Value in 2007 l
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PUBLISHER Greg Watt: [email protected] EDITOR Edward Clark: [email protected] EDITORIAL CONSULTANT John Todd: [email protected]
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$100
TOTAL U.S. EGG EXPORTS, WORLDWIDE (Million $)
2002 2003 2004 2005 2006 2007Source: FAS Table Egg Egg Product
$75
$50
$25
$0
3•April 2008 IndustryEEgg•www.WATTpoultry.com •
Total egg exports in 2007 reached $137.68 million, a 30.8 percent increase over2006, and second only to 1996.
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4 • April 2008IndustryEEgg • www.WATTpoultry.com•
No Rebound Yet in Layer NumbersProducers have not yet geared up produc-
tion, despite continued strong egg prices.
On March 1, table egg type layers were 2
percent below year-earlier levels, according
to USDA’s latest Chicken and Eggs report.
Looking at the top-10 egg producing
states in fl ocks 30,000 and above during
February, production was up 4 percent in
Iowa, but down in the other nine. Layers
were down 7 percent in Ohio; 3 percent in
Indiana; 7 percent in Pennsylvania; 2 per-
cent in California; 5 percent in Texas; 4 per-
cent in Florida; 11 percent in Nebraska; 8
percent in Minnesota; and down 5 percent
in Georgia.
Frozen Egg Stock Levels IncreaseTotal frozen stock levels of eggs on Feb.
28 were 1 percent above previous year lev-
els, but were 32 percent above January lev-
els, according to USDA’s March Cold Stor-
age report. Year-over-year changes show
egg whites down 11 percent; egg yolks
down 18 percent; whole and mixed eggs up
4 percent; and unclassifi ed frozen eggs, up
8 percent.
UEP Develops Relationship withAmerican Humane Association
The United Egg Producers (UEP), At-lanta, has developed a new working rela-tionship with the Denver-based AmericanHumane Association. Under terms of theagreement between the two organizations,UEP will recognize American Humane Cer-tifi ed audits as also meeting UEP Certifi edstandards if those egg producers also meetsome additional criteria.
The American Humane Certifi ed pro-gram—which is the nation’s fi rst and origi-nal animal welfare label attesting to the hu-mane treatment of animals involved in foodproduction—establishes guidelines for theproduction of eggs from hens in cage-freeand free-range egg farm systems, while theUEP Certifi ed program provides science-based guidelines for the production of eggsfrom hens either in modern cage production
housing systems or cage-free farm systems.Under terms of the agreement, an egg
farmer who passes the American HumaneCertifi ed audit, pays the fees and is a mem-ber in good standing with the UEP Certifi edProgram and meets the UEP guidelines on100 percent of their egg production, canthen use the UEP Certifi ed logo and marketthose eggs as UEP Certifi ed in addition tomarketing them as American Humane Cer-tifi ed and using the American Humane Cer-tifi ed logo. The advantage to egg farmers isthat they would not have to undergo and payfor a second audit of their farms, as UEPwill accept the American Humane Certifi edanimal welfare audit.
“When UEP began developing science-based guidelines for the production of eggsin modern cage housing systems in the late1990s, the American Humane Associationparticipated in those discussions,” says UEPCEO Gene Gregory. “We’re pleased to re-new a working relationship with them andwe have always regarded them as one of themost credible animal welfare organizationsin the country.” EI
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0804EIindustrynews.indd 40804EIindustrynews.indd 4 4/4/2008 10:48:35 AM4/4/2008 10:48:35 AM
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0804EIindustrynews.indd 50804EIindustrynews.indd 5 4/4/2008 10:48:38 AM4/4/2008 10:48:38 AM
All layers and egg production: State breakout, in order of layer numbers (1)Average number of layers Eggs per layer (3) Total egg production
State20051,000
20061,000
2007(4)1,000
07vs06% 2005 2006 2007(4)
07vs06% 2005 2006 2007(4)
07vs06%
By Edward Clark, Editor
The decline in layer numbers in 2007 was one of the key
reasons for record high egg prices in recent months.
Just one of the top 10 table egg-producing states, No. 1
Iowa, increased layer numbers, but modestly, with a 2 per-
cent growth in layer numbers, in contrast to the state’s rapid
growth in recent years: Iowa layer numbers were up 6 per-
cent in 2006, following a strong 12 percent rise in 2005.
Yet Iowa’s 2007 total egg production was even with 2006levels, due to a decline in eggs per layer of 265 from 268 theprevious year.
For the United States as a whole in 2007, both layernumbers and egg production were down 1 percent from theprevious year, the USDA/NASS annual Chicken and Eggsreport shows.
Looking at other top states in layer numbers in 2007, Ohiowas down 6 percent, Indiana was down 1 percent; Penn-sylvania, down 5 percent; no change in Georgia, Califor-nia, Texas, and Arkansas; Nebraska, down 7 percent; andFlorida, down 2 percent.
Five states reduced layer numbers by 5 percent or more:Hawaii, down 16 percent; Idaho, down 13 percent; Nebras-ka, down 7 percent; Ohio, down 6 percent; and Pennsylva-nia, down 5 percent.
In terms of effi ciency, Montana led all states with 301eggs per layer in 2007, followed by Wyoming, with 300; atie for third place between Oregon and Massachusetts; NewYork next with 289; Michigan, 286; Pennsylvania, 284; Ver-mont, 283; Colorado, 281; and New Jersey, 280. The U.S.average is 263 eggs per layer.
Looking to 2008In contrast to last year’s decline in layers and egg produc-
tion, total U.S. egg production for 2008 is forecast to increaseslightly more than 1 percent. Table egg production declined1.3 percent in 2007, but is expected to increase 1.2 percentthis year, Joel Greene, USDA livestock analyst with theWorld Agricultural Outlook Board said at the department’srecent Outlook Forum. Eggs broken declined 1.3 percent in2007 as egg prices soared, but are expected to increase 1.2percent this year as egg prices moderate, Green says. EI
Just 13 StatesJust 13 States Increased IncreasedLayer Numbers in 2007Layer Numbers in 2007
IA 48,760 51,557 52,401 102% 266 268 265 99% 12,978 13,811 13,868 100%OH 28,026 28,374 26,596 94% 268 265 269 102% 7,506 7,507 7,151 95%IN 23,596 24,555 24,885 99% 265 269 268 100% 6,254 6,593 6,673 99%PA 23,785 23,758 22,514 95% 278 282 284 101% 6,608 6,687 6,392 96%GA 19,737 19,469 19,434 100% 249 247 247 100% 4,906 4,811 4,792 100%CA 19,336 19,313 19,234 100% 263 257 257 100% 5,082 4,962 4,938 100%TX 17,972 18,769 18,814 100% 265 269 265 99% 4,760 5,039 4,994 99%AR 14,748 14,214 14,149 100% 232 230 232 101% 3,416 3,267 3,288 101%NC 10,955 11,028 12,088 110% 235 239 245 103% 2,573 2,636 2,960 112%NE 11,987 11,718 10,945 93% 268 267 273 102% 3,217 3,129 2,984 95%FL 10,963 10,985 10,764 98% 272 268 268 100% 2,980 2,938 2,885 98%MN 11,040 11,079 10,651 96% 270 265 270 102% 2,985 2,940 2,880 98%AL 9,141 8,816 9,211 98% 227 227 228 101% 2,071 2,002 2,098 98%MI 7,867 8,578 8,949 104% 272 279 286 103% 2,142 2,391 2,563 107%MO 7,204 7,207 6,958 97% 265 264 265 100% 1,910 1,903 1,844 97%MS 7,001 6,499 6,438 99% 232 238 237 100% 1,627 1,546 1,523 99%WA 4,931 4,835 5,614 103% 272 269 271 101% 1,343 1,298 1,520 104%IL 4,434 4,817 4,997 104% 273 271 272 100% 1,210 1,307 1,357 104%WI 4,864 4,699 4,936 105% 272 273 278 102% 1,321 1,284 1,370 107%
6 • April 2008IndustryEEgg • www.WATTpoultry.com•
0804EIstatelayerdata.indd 60804EIstatelayerdata.indd 6 4/4/2008 10:49:53 AM4/4/2008 10:49:53 AM
All layers and egg production: State breakout, in order of layer numbers (1) continuedAverage number of layers Eggs per layer (3) Total egg production
State20051,000
20061,000
2007(4)1,000
07vs06% 2005 2006 2007(4)
07vs06% 2005 2006 2007(4)
07vs06%
(1) Annual estimates cover the period Dec 1, previous year thru Nov 30.(2) Totals may not add due to rounding.(3) Total egg production divided by average number of layers on hand.(4) AK, AZ, DE, KS, ND, NM, NV, and RI combined to avoid disclosing individual operations.Source: Chickens and Eggs Annual Summary reports, U.S. Department of Agriculture National Agricultural Statistics Service
7 •April 2008 IndustryEEgg•www.WATTpoultry.com •
SC 5,042 5,010 4,749 95% 256 256 250 98% 1,289 1,280 1,188 93%KY 4,781 4,547 4,585 101% 257 253 255 101% 1,228 1,150 1,170 102%NY 3,951 3,943 3,904 99% 286 286 289 101% 1,129 1,126 1,127 100%ME 4,138 4,026 3,903 97% 248 264 260 98% 1,025 1,064 1,013 95%CO 3,814 3,765 3,766 100% 281 288 281 98% 1,071 1,083 1,059 98%UT 3,285 3,457 3,576 103% 267 271 267 99% 878 937 854 102%OK 3,210 3,170 3,244 102% 228 233 234 100% 731 738 759 103%VA 3,326 3,291 3,239 98% 248 245 245 100% 823 806 794 99%SD 3,092 3,247 3,165 97% 264 266 266 100% 816 865 843 97%CT 3,026 2,818 2,887 102% 280 281 282 100% 846 791 814 103%MD 2,918 2,707 2,646 98% 274 271 265 98% 798 733 702 96%OR 2,916 2,710 2,506 92% 282 285 290 102% 823 772 726 94%LA 1,892 1,844 1,762 96% 248 251 253 101% 469 463 446 96%NJ 1,798 1,559 1,514 97% 273 286 280 98% 491 446 424 95%TN 1,299 1,197 1,200 100% 243 241 238 99% 316 289 286 99%WV 1,165 1,193 1,188 100% 224 230 229 100% 261 274 272 99%ID 862 641 555 87% 280 284 279 98% 241 182 155 85%HI 498 448 378 84% 230 219 216 99% 115 98 82 83%MT 350 341 355 104% 303 305 301 99% 106 104 107 103%VT 198 196 209 107% 253 281 283 101% 50 55 59 107%MA 254 246 179 73% 280 289 290 100% 71 71 52 73%NH 155 145 154 106% 252 249 273 110% 39 36 42 117%WY 12 12 12 100% 300 300 300 100% 4 4 4 100%Oth Sts (4) 5,466 5,433 5,131 97% 278 275 277 100% 1,519 1,493 1,423 98%PR 1,095 1,073 876 82% 231 266 270 102% 261 285 236 83%US (2) 343,792 346,078 344,385 99% 262 263 263 100% 90,027 90,877 90,281 99%
USA + 1.248.476.7100Canada + 1.519.657.5231Latin America + 1.954.384.4828s i n c e 1 9 3 4
w w w . d i a m o n d s y s t e m . c o m
I N N O V A G R A D E R S
E G G B R E A K E R S
F A R M P A C K E R S
0804EIstatelayerdata.indd 70804EIstatelayerdata.indd 7 4/4/2008 10:49:56 AM4/4/2008 10:49:56 AM
8 • April 2008IndustryEEgg • www.WATTpoultry.com•
Despite High Prices,Despite High Prices,Egg Sales StrongEgg Sales Strong
Q:How did egg sales fare in2007 with prices setting all-time record highs? In other
words, are egg sales vulnerable toprice changes?
A: According to Nielsen data, aver-age retail prices for 12-count large eggsin supermarket channels increased over20 percent from 2006 to 2007, yet mostretailers continued to experience heavydemand well after the holidays. In fact,retail demand during the month ofJanuary was unusually high and manyproducers were reporting that theirsales were much higher than originallyforecasted. Clearly, consumers recog-nize that even with these higher retailprices, eggs remain a great value, andthat the demand for eggs is inelastic–that is, the quantity demanded does notchange when the price changes.
Q:Over the past year in par-ticular, eggs have receivedan exceedingly high level of
good press. Will that translate intoadditional sales? Why and when?A: We are pleased with the extremely
positive momentum behind eggs overthe last year, especially in the consumermedia. In 2007, the “incredible edibleegg” received more than 1 billion posi-tive media impressions. Frankly, posi-tive media coverage for eggs has neverbeen better, and we feel that’s due to acouple of reasons. First, the egg indus-try, through the Egg Nutrition Center(ENC), has been successfully fund-ing and publishing nutrition research
studies about the positive benefi ts ofincluding eggs in a healthy diet. AtAEB, we’ve been working hard to getthe results of these studies out to me-dia editors with tactics like desksidebriefi ngs, electronic press kits, mediaevents, blogs, satellite media tours and
more. Our positive nutrition messageincludes the fact that an egg is packedwith 13 essential vitamins and miner-als, high-quality protein, healthy un-saturated fats and antioxidants, and allfor only 70 calories. But perhaps moresignifi cantly, the media have willinglycovered the new egg and cholesterolstory, namely, that more than 30 yearsof research have concluded that healthyadults can enjoy eggs without sig-nifi cantly impacting their risk of heartdisease. All of this has helped eggs togo from a food that was once on the“foods to avoid” list, to one that is nowon the “foods to healthfully enjoy” list.
One excellent example of how eggsare now recognized as an important,healthy food was presented in a newbook written by David Grotto, 101Foods That Could Save Your Life. Thisbook compiles a list of 101 “super”foods that no diet should be without,and he included eggs in the list. It’s aguide of what to eat (rather than foods
to avoid), and in the section on eggs,Grotto touches on many of the AEBplatforms. He points out that eggs con-tain the highest-quality protein of anyfood and references the Journal ofthe American College of Nutrition re-search on the “hunger-fi ghting power”
of eggs. He also covers the benefi ts ofcholine, lutein and zeaxanthin. Grottohas been a practicing RD for over 20years in both conventional and integra-tive medical centers as well as in pri-vate practice. He is currently a nationalmedia spokesperson for the AmericanDietetic Association, a scientifi c advi-sor for Men’s Health magazine and ad-visory chair for Produce for Kids, PBSKids’ national campaign to promotehealthy eating among children.
We strongly believe that all of thispositive media coverage already hascontributed to egg sales, and will con-tinue to do so. Eggs are back in thefood world.
Q:Could you highlight some ofyour key programs to boostegg consumption in 2008?
A: My feeling is that our new, inte-grated marketing communications pro-gram will have the biggest impact onegg consumption, both in the short term
In the following interview with Egg Industry, American Egg Board CEO Joanne Ivy discusses how AEB hopes to translate positive egg press into heightened demand.
Joanne Ivy
Retail demand during the month of January wasunusually high and many producers were reportingthat their sales were much higher than originallyforecasted
➤
0804EIaeb.indd 80804EIaeb.indd 8 4/4/2008 10:47:05 AM4/4/2008 10:47:05 AM
9 •April 2008 IndustryEEgg•www.WATTpoultry.com •
and long term. This includes AEB’s360-degee advertising approach, alongwith our aggressive nutrition public re-
lations efforts. AEB’s new advertisingcampaign re-launched the “incredibleedible egg” brand. The iconic “crackedegg” campaign aimed at moms withkids at home delivers important newsabout the health benefi ts of eggs byemphasizing the all-natural, high-qual-ity protein only found in eggs. Thecampaign launched in September 2007via a variety of media outlets, includ-ing national television, radio, maga-zines, the Internet and outdoor (bill-boards and truck signage), which willcontinue in 2008. Because moms areincreasingly spending more time on-line, AEB will continue to maximize“new media” technology of the inter-net (Web site advertising, blogs, videogames, social networking, e-mail mar-keting, and a lot more) with the moretraditional advertising methods (TV,radio, print) for greater impact and fre-quency of our advertising message toour target audience. The media strat-egy is to reach moms via a variety ofmedia touch points.
AEB has a very aggressive and effec-tive nutrition public relations program.We could not ask for better science toprovide the messages for our consumerpublicity campaigns. It is obvious thatthe media is very receptive to the new
news about eggs as the positive eggcoverage has been overwhelming. AsENC provides the science for strong-
er messages on the health benefi ts ofeggs, AEB’s nutrition PR efforts willcontinue in 2008 to build on the mediamomentum to eggspose the good egg toconsumers, which will translate to evengreater egg demand next year.
Our work with the quick-serve res-taurants would be next in terms ofimpact. Breakfast is one of the onlyday parts that are growing in the food-service channel, and we are workingon menu development projects with
major chains such as Burger King,Wendy’s, Panera, Subway and others toincrease their support for and menuingof eggs. This year alone, AEB expectsour efforts to result in hundreds of mil-lions of incremental eggs used in thefoodservice channel.
Q:Has your relationship withthe Egg Nutrition Centerchanged, and if so, how?
A: Since 1984, the AEB has fullyfunded the Egg Nutrition Center (ENC)in a cooperative management arrange-ment with the United Egg Producers.Beginning Jan. 1, 2008, the ENC is
now funded and managed by the AEB.ENC staff are now AEB employees,which provides for more effi cient in-tegration of the nutrition science withAEB’s marketing program.
Q:If the United States fallsinto a recession, how willegg consumption be affect-
ed vs. other protein sources?A: Some people believe we are al-
ready in a recession. If that’s true, thenI’m encouraged by how well eggs willfare. Despite record-high prices at retailover the last 6 to 12 months, sales andconsumption for eggs remain strong. Webelieve this is due in part to the fact thatpeople are beginning to appreciate thepositive nutritional benefi ts of eggs, andwhen pinching pennies they are choos-ing foods that provide value in both
cost and nutrition. There’s no questionthat food prices are indeed increasing,but eggs still stack up as a great value,especially compared to other proteinslike beef, pork and dairy. For around 15cents, one egg has 13 essential vitaminsand minerals for only 70 calories. Fewother center-of-plate protein foods canfeed a family of four for about one dol-lar.
With that said, now is a good time forthe industry to increase its promotionalsupport for eggs. Research has shownthat egg category sales respond quitefavorably to promotion and merchan-dising efforts. EI
The industry has done a terrifi c job at innovating tomeet changing consumer demand and provide newways to drive people to the egg case
➤
Frankly, positive media coverage for eggs has neverbeen better
➤
0804EIaeb.indd 90804EIaeb.indd 9 4/4/2008 10:47:11 AM4/4/2008 10:47:11 AM
It’s aIt’s a Retrofi tting,Retrofi tting,Reconfi guringReconfi guring Kind of Year Kind of Year
By Edward Clark, Editor
Unlike what occurred following the
high prices of 2004 and previous
periods of high prices, most egg
producers have not raced out and spent
the record egg prices of 2007 to expand
in recent months. That said, however, a
growing number of producers are taking
out equipment that has been used in ex-
isting buildings for as much as 20 or 30
years, and replacing it with new, state-
of-the art equipment.
“There is signifi cant aging of equip-
ment, and a lot of pent-up demand—to
replace old equipment,” says Rick Van-
Puffelen, sales and marketing man-
ager for Chore-Time Egg Production
Systems, Milford, Ind. Specifi cally, he
notes, producers may take out old A-
frame cages, put in manure belt cage
systems, “and go vertically. Where they
used to go four to fi ve cages high, they’re
now going seven or eight high.”
One motivation for using every inchof space within the laying house, he andothers interviewed say, is that as pro-ducers replace old cages with those thatmeet the United Egg Producers (UEP)animal welfare certifi cations, cages arelarger, thus producers lose layer space.
Growing Interest inManure Systems
Manure is another housing issue thatis increasing in importance, VanPuffelensays. In some cases, existing buildingsare being reconfi gured to have areaswithin them for manure storage, while
in other cases, producers decide that thebest way to go is to construct a separatebuilding for manure storage until theproper time to spread it on farm fi elds.
Also growing, VanPuffelen says, isinterest in drying manure, either on thebelt or in a separate dryer. For example,more producers have interest in a mul-tiple level or tier belt system and it’sperforated.
“Is the Building Okay?”One question producers need to ask
themselves before investing in newcages for an old building “is whetherthe building will last for another 20 or30 years,” he says, and if it’s okay toremove the horizontal beams that have
supported the A-frame. “Producers mayneed to reinforce walls,” he adds.
While growing numbers of producersare investing in cage-free facilities, Van-Puffelen says that “we think cage-free is5 percent to 6 percent of the U.S. mar-ket. We don’t see it increasing in largenumbers, but rather a steady increase.”Most of the expansion he sees still con-sists of caged facilities.
He adds that while “we are very busy,a limited amount of that is expansion.”He doesn’t call using existing buildingsexpansion. One reason for using exist-ing buildings, he says, is that producersgenerally don’t have to obtain new per-mits. “They use existing buildings if atall possible, and we can work with themto customize a system that works.”
David Leavell, sales and market-ing manager for Farmer Automatic of
America, Rochester, Ind., says that feware making the decision to put in newcaged complexes right now. “More arelooking at cage-free,” he adds, such ashigh-density aviary cage-free systems,with feeding, watering, and nest boxeson every level.
For the most part, those investing intheir egg operations “are using existingbuildings. We’re seeing a lot of upgrad-ing and modernizing to make producersmore productive, with manure belt sys-tems leading the way.”
Leavell is also seeing more interestin composting manure as a value-addedfertilizer.
UncertaintyOne reason why producers are not
investing in new complexes, he says, isthe uncertainty over the future of cagedproduction, such as the California refer-endum, that would ban caged produc-tion. Producers also are concerned aboutgetting healthy fi nancially after being onthe ropes for three years, and they arefacing environmental and permitting is-sues. Due to the diffi culty in obtainingpermits, some producers have more in-terest in acquisition than building new,he says. “That way they don’t have todeal with land use and water permits.”
Dave Thompson, president of Ven-comatic North America, has heard es-timates that cage-free is now 5 percentof the total market, and growing. Majoregg producing companies are becominginterested in cage-free, Thompson says,now that the UEP “has come up with astandard.”
One of the challenges in convert-ing common pyramid caged systemsto cage-free without reconfi guring howunits are stacked, Thompson says, is that
Few new, large complexes being built, despite record egg prices of 2007, as more producers are replacing old equipment within existing layer houses.
We think that cage-free is 5 percent to 6 percent ofthe U.S. market.
➤
10 • April 2008IndustryEEgg • www.WATTpoultry.com•
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three hens per square feet is reduced toone. But with a stacked system it’s pos-sible to go from three down to two.
“We’re expecting strong growth in2008,” Thompson says. And if the dis-cussions over the last eight months turninto sales, “we’ll have a strong year.”
Management More CriticalHe adds that management is far more
critical with cage-free systems, “whereequipment is half the battle, and man-agement is the other half.” And birdshave to be trained to move up and down,he adds. Vencomatic offers a variety ofcage-free systems, such as a row sys-tem with integrated layer nests, and amultiple level system that increasesavailable living space. The companyalso offers a jump-start system for avi-ary rearing units.
It’s inadvisable to use cage-rearedpullets in a cage-free system becausethey have no concept of going up anddown, he says.
Some, such as Del Farrer, vice presi-dent of Henning Construction Co., La-timer, Iowa, are seeing a blend of newconstruction and retrofi tting of existingbuildings. One thing he’s seeing is this:producers who used to have a 1.2 mil-lion bird operation but are now 900,000due to UEP standards “are putting upone or two new houses to get back upto a 1.2 million bird capacity.”
“And we’re seeing everything beingbuilt—high rise, stacked deck systems,organic, free range. We’re quoting lotsof organic and free range.” This is nota record year, but there is quite a lot ofnew construction, he says. And the ex-pansions are nationwide, he says, fromTexas to California to Wisconsin.
More Activity inAlternative Systems
Big Dutchman Inc., Holland, Mich.,is seeing more activity in alternativeegg production systems than in conven-tional ones, says Craig England, vice
president of sales. “And for the mostpart, what we’re seeing is retrofi tting,reconfi guring existing buildings, not alot of new construction,” he says. Forthose putting in caged systems, whathe’s seeing most is people taking A-frames out and putting belt systems,stacked cages in.
Sales activity is higher than 2007,“but not what you would typically ex-pect,” following a year of such strongegg prices. “And for two reasons. A,producers are not sure the direction themarket is going to take on cage-free andorganic, and B, people are uncertain asto future legislation.”
On cage-free, England is seeing
producers putting in everything from
simple systems all the way to aviary
systems, but mostly in less than 20,000
birds per house.
England also is seeing a lot of inter-
est in manure handling and drying sys-
tems, such as tunnel drying, to address
environmental issues. EI
11 •April 2008 IndustryEEgg•www.WATTpoultry.com •
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12 • April 2008IndustryEEgg • www.WATTpoultry.com•
By Terrence O’Keefe
Cited for its innovative handling of byproducts, Manheim,
Pa.-based Kreider Farms was presented the U.S. Poul-
try & Egg Association’s “Family Farm Environmental
Excellence Award” at the group’s annual national convention
in Atlanta earlier this year.
Kreider Farms was listed as the 26th largest in Egg Indus-try’s 2008 Top Egg Company national rankings. The compa-
ny has several farms with 27 poultry barns which can house
up to 3.5 million layers.
Ron Kreider is the third generation of the Kreider family to
manage the operation.
In addition to the egg business, Kreider Farms operates a
1,400 cow dairy on one of its farms. On this 1,500 acre farm,
crops and houses for 920,000 laying hens coexist with the
dairy. An innovative system has been devised to treat and en-
hance nutrient rich byproducts from both the egg and dairy
operations.
Environmental SynergiesEgg wash water from the egg packing house is routed
through the same treatment system used for processing the
dairy waste. A series of wastewater treatment lagoons treats
this combined waste stream. Dairy farm crop land is used
as the fi nal step in the wastewater treatment process as the
lagoon effl uent is used to irrigate the fi elds on the farm. Corn,
alfalfa, rye grass and grass hay are raised for the dairy herd.
Solids from the dairy farm are run through a press and
combined with the layer manure for composting. A good
compost mix requires the proper blend of carbon, nitrogen
and moisture to support rapid microbial growth and break
down of the base materials. Manure from caged laying hens
has plenty of nitrogen, but generally, a carbon source such
as sawdust or straw must be added to compost it thoroughly.
If the manure is dry when removed from the house, water
needs to be added to the compost. The dairy manure solids
provide the carbon source and moisture that the layer ma-
nure lacks and the combination composts well.
The compost bays have piping in the fl oor to provide forced
aeration of the pile and speed the compost process. Poultry
Kreider Farms WinsKreider Farms WinsEnvironmental AwardEnvironmental AwardPennsylvania egg producer honored for innovative waste management program on its combination egg and dairy farm.
Monty Henderson, USPOULTRY vice chairman; Ron Kreider,president, Kreider Farms; Bill Bradley, USPOULTRY chairman.
Kreider’s Manheim farm houses 920,000 layers and 1,400 headof dairy cattle.
Kreider’s Donegal farm is one of several layer complexes thecompany owns.
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Stepping up preventionStart by taking care of building exteriors. Thoroughly inspecthouses and seal potential entry points, such as:
• Damaged or missing weather stripping on doors• Malfunctioning vent louvers• Gaps at the base of siding materials• Openings around utility wires and pipes
Inspect up high: Roof rats prefer to live in high places, andNorway rats and house mice can also climb very well.
Next, turn your attention to the grounds surrounding the houses.Reduce harborage near the structures. Clear away debris, trash,tall grass, and weeds. A three-foot-wide gravel strip around thehouses makes them unattractive to rodents because it places them in plain sight.
Using rodenticidesAttack outdoor populations with the best rodenticides and baitstations for the job.
Norway rats are best killed in their burrows. Use BootHill® bulkpellets, which are paraffinized for maximum moisture resistance andcontain the active ingredient bromadialone; they are labeled for usein burrows. Rats see these pellets as seeds in their environment andreadily accept them as feed. BootHill pellets are the only paraffinizedbromadiolone pellets available.
In addition to high places, roof rats may occasionally live in burrows.The rodenticide Hombre™ with the anticoagulant difethialone is themost effective active ingredient available to control them. Hombrekills rodents at half the concentration of other anticoagulants as aresult of its superior palatablity. Since this rodent is likely to live inattics and other high places, secure rodenticide mini-blocks withnails or wire to runways on rafters or on pipes between the rodents’nest and their feed or water supply. Bait stations can also be securedon roof rat runways both high and low. Rodenticide mini blockscontaining difethialone are also very effective against mice.
At clean-out, use Gunslinger™ mini blocks, which contain the acuteactive ingredient bromethalin, for quick knockdown of infestations.
When using bait stations outside, keep them out of direct sunlightif possible to prevent melting of wax block type rodenticides.Another best practice is to use white bait stations, such as theAEGIS™ “Cool Box”. Such units can be 10 to 20 degrees F cooler
inside than black bait stations. They also blend in better whenplaced near concrete structures or buildings. Using vertical ratherthan horizontal bait rods in bait stations also helps minimizebait-melting problems. Bait melt issues can also be minimized bychoosing rodenticide formulations that tolerate heat and humidity.
Don’t let your guard downRemember that rodent-control is continuous process. Don’t letyour guard down. Follow good basic practices in summer just as in any other season:
Clean up. Keep building and the entire property clear of feed sources.Remember, rodents are omnivores and will eat almost anything.
Rotate rodenticides. Reliance on a single rodenticide can causebehavioral resistance: rodents may simply stop responding to anyone specific flavor, texture or shape. An effective rotation programmight include a repeated cycle of:
• Six months of treatments with the anticoagulant difethialone (Hombre).
• Treatment for six more months with the anticoagulantbromadiolone (Boothill).
• Cleanout using the acute toxin bromethalin (Gunslinger).
Establish lines of defense. Create a triple perimeter of controlpoints. Start with outdoor harborage sites or natural pathways fromharborages on neighboring properties. The second perimeter is atthe building exterior enter points, focusing on points where rodentsare most likely to encounter them. The final perimeter is indoors.Place traps or bait stations on both sides of potential entry points.
Pay close attention to bait station designs. The AEGIS™-RP can bepositioned on its side, as well as laid flat to suit a variety of placementsituations. It also features a “straight-through” design, whichencourages entry and feeding. Rotating hinges can also reducereplacement costs when compared with stations that have “living-hinged” lid. Remember, Norway rats and roof rats are very afraid ofanything new and tend to avoid it. If you have a station already inplace they are much more likely to enter it than if you add it later.
Finally, do not expect rodents to go too far out of their way to get to a rodenticide. Always use enough bait to assure anuninterrupted supply.
For more information about Liphatech or any of its products, call (888) 331-7900or visit www.rodent-control.com
Norway RatRoof RatHouse Mouse AEGIS™-RP Tamper Resistant Bait Station
Don’t be fooled: Summer rodent control helpsprotect flock from diseaseRodents aren’t typically as visible in summer because they’re usually outdoors doing what they do:reproducing. Act now to avoid an infestation and rodent-borne diseases in fall and winter.
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14 • April 2008IndustryEEgg • www.WATTpoultry.com•
house mortalities are also composted in
these piles. The compost is made of 25
percent chicken manure and 75 percent
dairy manure solids. Most of the poul-
try litter and dairy manure generated on
the farm is composted and sold to land-
scaping and fertilizer companies and
nurseries. Kreider Farms has developed
a composting method that combines
the best characteristics of its layer and
dairy wastes to produce valuable com-
post without having to add anything
from off the farm.
New Waste Treatment SystemInnovation did not stop with win-
ning the USPOULTRY environmental
award. In late February, Bion Environ-
mental Technologies entered into an
agreement with Kreider Farms to retro-
fi t the existing manure and lagoon treat-
ment system on Kreider’s dairy farm.
Bion’s nutrient management system
is expected to reduce ammonia emis-
sions from the treatment system and
reduce the concentration of nutrients
in the treated wastewater. This increase
in wastewater treatment will mean
that less phosphorous and nitrogen are
sprayed on the fi elds during the irriga-
tion process. The upgrades to the treat-
ment system will cost between $3 mil-
lion and $5 million, according to Bion.
The treatment system will gener-
ate credits under Pennsylvania’s 2005
nutrient credit trading program, which
Bion will sell to entities that have ex-
cessive discharge amounts. Bion plans
to recoup its investment from the sale
of the credits. This project would be the
fi rst to generate credits for ammonia re-
duction; the balance would come from
reducing nitrogen and phosphorus. The
system may be used to treat poultry
waste as well.
Bay Friendly FarmKreider Farms operations are locat-
ed in the Chesapeake Bay watershed.
Federal and state agencies have worked
with industry, agriculture and munici-
palities within the watershed to try to
reduce the nutrient loading of the bay.
In addition to poultry and dairy waste
treatment, a stream running through
the Kreider Farm has been fenced off
to prevent dairy cows from soiling the
water as it passes through on its way to
the Chesapeake Bay.
Kreider Farms also operates a milk
plant which processes, bottles and sells
milk and makes farm fresh ice cream.
The farm sells its eggs and dairy prod-
ucts to retail and wholesale outlets from
Virginia through Boston. Online virtual
tours of Kreider Farms operations are
available at www.kreiderfarms.com. EI
l Kreider Farms Wins Environmental Award l
Innovation did notstop with winningthe USPOULTRYenvironmental award.
➤
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16 • April 2008IndustryEEgg • www.WATTpoultry.com•
2008
APRIL
24: Webinar: EcoAgri.Biz:Economics of Energy Effi ciencyVia the internet, from WATT’s EcoAgri.Biz,
presented by EcoAgri.Biz and American En-
ergy. For more information or to register, go to
www.EcoAgri.Biz.
MAY8-9: National Breeders RoundtableAirport Marriott Hotel, St. Louis, Mo. Details
from U.S. Poultry & Egg Association,
1530 Cooledge Road, Tucker, Ga. 30084-7303;
Phone (770) 493-9401; Fax (770) 493-9257;
Website www.poultryegg.org.
12: Poultry Management andHealth SeminarKreider Farms Restaurant, Manheim, Pa. Details
from Patricia Burns, Department of Poultry Sci-
ence, The Pennsylvania State University, 213
Henning Building, University Park, Pa. 16802;
Phone (814) 865-5573; Fax (814) 865-5691; E-
mail [email protected].
JUNE29 – July 4: XXIII World’s PoultryCongress.Convention and Exhibition Centre, Brisbane, Aus-
tralia. Event includes 6th Asian-Pacifi c Poultry
Health Conference, 4th International Ratite Sci-
ence Symposium & 2008 Australian Poultry Infor-
mation Exchange. Contact: WPC 2008 Congress.
Phone +61 7 3858 5594; Fax +61 7 3858 5510.
Email: [email protected]. Website www.
wpc2008.com.
JULY6-10: 8th International Marek’sDisease SymposiumSouthbank Convention Centre, Townville,
Queensland, Australia. In conjunction with the
10th Avian Immunology Research Group Meet-
ing and the XXII World’s Poultry Congress and
the 6th Asia-Pacifi c Poultry Health Conference.
Details from Dr. Graham Burgess, School of Vet-
erinary and Biomedical Sciences, James Cook
University, Townsville, Queensland, Australia;
Phone +61 7 4781 5472; Fax +61 7 4781 6833;
E-mail [email protected]; Website
www.jcu.edu.au/events/mds.
SEPTEMBER10: Delmarva Poultry ConferenceSponsored by the University of Delaware and the
University of Maryland. Clarion Hotel, Ocean
City, Md. Details from Jennifer Timmons; Phone
(410) 742-8788; Email [email protected].
➤INDUSTRYCALENDAR For morepoultry industry eventsvisit:www.wattpoultry.com/Events.aspx
www.omegaproteininc.com . [email protected] . 800.345.8805
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➤M ARKE TPLACE
18 • April 2008IndustryEEgg • www.WATTpoultry.com•
Ad sizes start at one column by one inch and may
be any size up to six column inches. Logos and
photographs are acceptable. Add color for an ad-
ditional $30 per color per insertion. The rate for
EGG INDUSTRY is $100 per inch per insertion (1-
time rate), $90 per inch per insertion (6-time rate),
and $80 per inch per insertion (12-time rate). The
production charge is included except for ads with
excessive make-up demands.
For more information on how to place your ad, contact:Denise SlagerTel: 815-734-5675Fax: 815-968-0941E-mail: [email protected]
Our MissionTo help agribusiness managers increase profitability through effective environmental stewardship.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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copyright WATT 2008 www.EcoAgri.Biz
Alltech has generously sponsored the first 3 issues of EcoAgri.Biz
What is EcoAgri.Biz?
and regulations.
EcoAgri.Biz offers 3 channels of environmental stewardship information:
> a monthly electronic magazine e-mailed directly to you
>
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the problem and subscribe to EcoAgri.Biz at http://watt.netline.com/ecoagribiz
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