An Economic Perspective on Caged Layer Well-Being Guidelines

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An Economic PerspectiveonCaged Layer Well-Being
Guidelines

• Allan P. Rahn, Ph.D.
• Poultry Economist
• Michigan State University

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Floor and Feeder Space per Bird
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Cage Space Allowances in U.S.(1999 NAHMS survey)
Cage Space (in2) of Farm Sites
lt48 16.6
48 to53.9 45.1
54 to 59.9 16.7
gt60 21.6
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Effective Competition Nature of Commercial Egg
Industry

• Low entry/exit barriers
• No firm is dominant
• Firms don't engage in collusion
• Firms are under constant pressure to reduce
  production costs

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Objective

• Assess the impact that the adoption of the UEP
  Guidelines by an autonomous producer is likely to
  have on white shell egg production, processing
  and marketing costs.
• - review UEP Guidelines
• - assess economic impacts of adoption

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UEP Animal Husbandry Guidelines for U.S Egg
Laying Flocks (2000 Ed)

• Provides recommendations for
• Housing and Cage Space Allowance
• Beak Trimming
• Molting
• Transportation and Handling

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UEP Housing and Space AllowanceRecommendations

1. Cage configuration will not permit manure to drop
   directly on birds in lower level cages
2. Hen should be able to stand upright and the slope
   of the floor should not exceed 8 degrees
3. Space allowance should be in 67 to 86 sq in range
4. Feeder space should permit simultaneous eating
5. All birds continuous access to clean drinking
   water
6. Water pressure must be regulated carefully

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UEP Housing and Space AllowanceRecommendations

1. Birds inspected daily under sufficient light
   intensity
2. No exposure to disturbing noises, visual stimuli,
   strong vibrations, wild birds, pets or other
   animals
3. Environment permitting normal body temp
   maintenance without difficulty
4. Continuous flow of fresh air for every bird
5. Nutritionally adequate and accessible fresh feed
6. Stand-by generators alarm systems a "must"

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UEP Beak TrimmingRecommendations

1. Trimmed at lt10 doa with precision automated
   cam-activated trimmer with a heated blade
2. Crews trained and monitored for quality control
3. Vit. K and sometimes Vit. C added to water 2 days
   before after to facilitate clotting relieve
   stress
4. Increase feed water levels until beaks healed
5. Adjust watering systems to facilitate drinking
6. Feed high-density stress diet for about 1 week
   after

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UEP Beak TrimmingRecommendations

• Blade guide holes should be cleaned regularly
• Second-Trim program -needed in some situations
• Do when pullets are 5 to 8 wks of age

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UEP MoltingRecommendations

• Able to consume nutritionally adequate and
  palatable feed
• Body weight loss should not compromise hen
  welfare during postmolt period
• Mortality during molt should not substantially
  exceed normal flock mortality
• However, until these alternatives are available,
  the shortest feed withdrawal period should be
  used plus an egg quality assurance food safety
  program

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UEP MoltingRecommendations involving feed
withdrawal

1. Remove cull birds before molting
2. Mortality and body weight loss should be
   monitored daily during the molt period and
   mortality minimized
3. Resume feeding before body weights reach 70 of
   their pre-molt weight
4. Mortality should not exceed 1.2 while off feed
5. Water must be available at all times
6. 8 hour light periods until back on normal layer
   diet

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UEP Handling, Transport SlaughterRecommendation
s

• Catching crew knowledgeable and skillful in
  handling hens with care and dropping minimized
• Good handling methods include
• Removing one or two at a time by grasping both
  legs at hock
• Support the birds breast lifting over feed trough
• Maintain birds in an upright posture
• Use lowest light level possible

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UEP Handling, Transport SlaughterRecommendation
s

1. Minimize handling by using carts
2. Cage, crate/cart doors and panels on trucks
   should be large enough to permit easy passage of
   birds
3. Transport containers and vehicles should be clean
   and well maintained
4. Water withdrawal and fasting for more than 24 hrs
   prior to slaughter is not recommended
5. Minimize time to slaughter and excessive exposures

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UEP Cage Stocking Density"Phase-In" Plan
guidelines (initial)
Goal Date Company Ave New Flock Min
1/1/2002 53 in2 (342 cm2)
1/1/2003 48 in2 (310 cm2) 53 in2 (342 cm2)
1/1/2006 53 in2 (342 cm2) 60 in2 (387 cm2)
1/1/2009 64 in2 (413 cm2) 67 in2 (432 cm2)
1/1/2012 67 in2 (432 cm2) 67 in2 (432 cm2)
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UEP Cage Stocking Density"Phase-In" guidelines
for certification
Goal (hatch dates after) Space average minimum
4/1/2002 56 in2 (361 cm2)
10/1/2003 59 in2 (381 cm2)
4/1/2005 61 in2 (394 cm2)
10/1/2006 64 in2 (413 cm2)
4/1/2008 67 in2 (432 cm2)
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Other UEP certified status requirements

• Meet beak trimming guidelines starting July, 1,
  2002
• Meet molting guidelines starting July 1, 2002
• Meet handling transportation guidelines for
  both pullets and spent hens starting July 1, 2002
• Agree to an annual 3rd party audit to confirm
  guideline compliance
• Provide copy of audit to UEP
• Audit passage necessary to maintain certification
  status

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Economic Impacts of Guidelines Adoption

• Analysis focus
• -If the Guidelines recommendations are adopted,
  what additional receipts per dozen eggs i.e.
  price premium will be required to generate the
  same net receipts per 1,000 ft2 of cage space
  over time as prior to their adoption?

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Chg/sq in -0.2275
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Chg/sq in 0.055
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Chg/sq in 1.83
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Production Cost Items

• Feed
• Hen
• Labor
• Maintenance Repair
• Utilities
• Facility Amortization
• Insurance
• Administration Services
• Pullet Interest
• Working Capital Interest
• Other

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Processing and Marketing Cost Items

• Operating (fixed) and Administration
• Operating (variable)
• Carton
• Distribution or Delivery
• Grade, Yield and Size Loss
• Market Allowance
• Certification
• Other

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-2704
-4034
-5272
-6028
-7045
-8000
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5.9
5.0
4.1
3.5
2.6
1.6
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_at_ 90 cent eggs
_at_ 80 cent eggs
_at_ 70 cent eggs
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Conclusions

• As cage space allowances are increased
  progressively from 48 to 53,56,59,61,64 and 67
  in2 per bird, white shell egg production,
  processing and marketing costs are projected to
  increase, respectively, 1.6, 2.6, 3.5, 4.1, 5.0
  and 5.9 cents per dozen.
• Net receipts per 1000 ft2 of cage space over time
  breakeven price premiums increase absolutely with
  cage space allowances and relatively as egg
  prices to retailers increase.
• Net receipts per 1000 ft2 of cage space over time
  breakeven price premiums increase absolutely with
  cage space allowances but decrease relatively as
  feed and pullet prices increase.