Agriculture: Egg Industry

Earl of Shrewsbury Excerpts

Monday 14th November 2011 Lords Chamber

Asked By

[The Earl of Shrewsbury]

To ask Her Majesty’s Government what is their assessment of the impact Council Directive 1999/74/EC will have on the competitiveness of the United Kingdom egg industry from 1 January 2012.

[The Earl of Shrewsbury]

My Lords, I am most grateful to the House for providing me with the opportunity to raise this matter, which is of very considerable importance to the future well-being of the British egg industry. I declare an interest, as my younger son is a producer of free-range eggs in Lincolnshire and contracted to Britain's largest producer of eggs, Noble Foods. As my noble friend the Minister will be fully aware, the welfare of laying hens directive, which is the subject of this Question, comes into full force on 1 January 2012. The directive prohibits the use of conventional battery cages and the marketing of eggs from hens housed in such cages. The new cages, known as enriched colony cages, will provide a more animal welfare-acceptable environment. Yet again, Great Britain is leading the field in agricultural animal welfare but such action comes at considerable cost to this sector of agriculture.

The British Egg Industry Council estimates that the industry has, to date, invested some £400 million in the new cage systems and that this country will be fully compliant by 1 January. This has been a truly massive change to the industry. Those producers who have not been in a position to upgrade their systems to the enriched colony systems have gone out of business. Others who have been in a position to make the change have invested heavily in the new systems; such investment has to be serviced and the capital repaid. However, while Britain will be fully compliant there is a very real concern within the industry that producers in some other EU member states will not be—indeed, some might never be.

In recent research conducted on behalf of the British Egg Industry Council, it was found that UK retailers, caterers, manufacturers, processors and producers have for some time been working together to secure the supply of eggs and implement traceability systems to ensure full compliance with legislation. As a result, it is anticipated that the vast majority of shell eggs and all Lion Mark eggs produced in the UK will comply, and that all major retailers will sell own brand shell eggs with the Lion mark. However, further evidence suggests that the main difficulty will be in ensuring that imported shell or processed egg used in manufacturing or catering products will be compliant. This will be particularly so where eggs or egg products are imported directly from those member states where doubts have been raised about the producer's ability to implement the legislation, but also from member states which have taken in eggs to process from non-compliant producers in other member states.

The matter is further complicated by the fact that in member states where there will be non-compliance there are farms with both conventional cages and enriched colony cage systems, often on the same site, thus making policing and traceability extremely difficult. The fact is that we in the UK are not self-sufficient in our supply of eggs. I believe that we produce 85 per cent of the eggs that we need. Egg products are also included in this, and therefore we need to import.

When this directive was first discussed, the egg industry thought that it was not good news but following comments made recently by Commissioner Dalli, the industry is far more worried for the future. The industry is not afraid of competition from legal imported eggs but is extremely concerned that if the directive is not uniformly implemented across the EU from 1 January 2012—and it is as clear as crystal that it will not be—it will be at a serious and unfair disadvantage because of the risk of non-compliant eggs and egg products with considerably lower associated costs being imported. All the industry wants is to be treated fairly and to be able to compete on a level playing field. Can my noble friend the Minister say whether, following 1 January 2012, first, anyone in the UK using eggs or egg products from illegal cage systems will be breaking the law and, secondly, what action Her Majesty’s Government envisage taking to ensure that only eggs and egg products from compliant cage systems will be imported into the UK following that date?

The British egg industry is highly successful and very efficient. It has improved in leaps and bounds since the introduction of the Lion brand as a measure of quality. Consumers have confidence in the product and the poultry sector is one of the great successes of British agriculture. Should Her Majesty's Government fail to act in the interests of the UK egg industry to stop the import of cheap non-compliant eggs and egg products, the British egg industry will be in very real danger of following down the path of the pig sector in the UK. Since 1999, the national pig herd has declined by 40 per cent through the import of cheap pig meat, produced in inferior systems and with far lower animal welfare standards.