Keep pressure on the Egg Corp

The Australian Egg Corporation's decision to withdraw its application for a certification trade mark for its proposed Egg Standards Australia quality assurance program demonstrates that it knew the new standard would not be accepted by the Australian Competition and Consumer Commission. It represents total victory for free range egg farmers across the country – as well as for consumers.

This is a huge win. If the new standard had been implemented it would have seen a growth in massive highly intensive egg farms with 20,000 hens per hectare becoming industry practice. The current maximum density accepted by the most in the industry and endorsed in the preliminary decision of the ACCC, is 1500 hens per hectare.

But AECL hasn't given up totally. It has started the process of registering a standard trademark for its Egg Standards Australia proposal which would allow it to side-step the ACCC as this type of trademark does not need ACCC approval.

Having conducted a major investigation into the egg industry, the ACCC is well placed to launch prosecutions of egg farms which practice misleading and deceptive conduct. Last week's announcement that Pepe's Ducks was fined $400,000 for claims of 'open range' sent shockwaves through major producers in the egg industry.

The AECL may now wait to see how the new Coles supermarket 'free range' standard of 10,000 hens per hectare (due to be launched in January) is accepted. That may become the industry benchmark unless there is a consumer backlash.

Queensland has been the only state to enforce standards for free range hens with a maximum stocking rate of 1,500 hens per hectare, but it is believed that the Queensland Government has bowed to pressure from the egg industry lobby and is about to change the regulation to allow a stocking density of 10,000 per hectare – in line with the Coles standard.

More publicity against intensive egg plans

Here's part of an article about the ACCC decision published  in the South Gippsland Sentinel Times - our local newspaper:

A PRELIMINARY decision by the Australian Competition and Consumer Commission has been welcomed by the free range sector of the Australian Egg Industry led by Phil Westwood of Freeranger Eggs at Grantville.

The ACCC says it plans to reject AECL’s application for a trade mark for new standards for egg production as it did not believe they would meet Consumer expectations.

Standards proposed by the Australian Egg Corporation were designed to decieve consumers and boost the profits of corporate egg businesses, while decimating family farms throughout the country Mr Westwood said.

He said this decision (by the ACCC) demonstrates the strength of opposition to the Egg Corporation's plans from within the industry and is likely to spark strong debate at the Egg Corp’s annual meeting in Sydney on November 29.

Of 1700 direct submissions only 7 supported the AECL plan.

Most of the proposed standards were acceptable to the industry and simply retlected existing production methods.

But the purpose of several of the standards which related specifically to the free range sector of the industry, was to allow intensive production facilities to lable the eggs they produce as free range in order to obtain a price premium from unsuspecting consumers.

Mr Westwood said the fundamental elements of the proposal allowed a maximum stocking density of up to two hens per square metre (20.000 hens per hectare), to keep young hens locked in sheds until they are about 25 weeks old (even though they usually start laying at 16 to 20 weeks of age). to have no restrictions on the beak trimming of hens and to keep the hens locked up if the weather its too hot, too windy, too wet or in any other way adverse’.

ACCC rejects Egg Corp's high density proposal.

The ACCC's initial findings on the Australian Egg Corporation plans to increase free range stocking rates to 20,000 birds per hectare have rejected the trade mark application.

The ACCC is concerned that the AECL Standards are inconsistent with consumer expectations and understanding of free range egg production. The ACCC is concerned that the use of the trade mark in the circumstances of such inconsistency has the potential to mislead or deceive consumers.

The ACCC does not believe that the Egg Corp Standard would meet consumer expections for free range.

Of 1700 submission, only 7 supported the AECL proposal (and most of those were probably AECL Board members and staff)

A great win for the free range sector of the industry and a kick in the teeth for the Egg Corporation.
More details here:
http://www.accc.gov.au/content/index.phtml/itemId/1087836/fromItemId/142

Egg Corp still trying to battle its way out of trouble

The Australian Egg Corporation has published another attempt to justify its Egg Standards Australia proposal.
It contains the mix of half truths and distortions which we have come to expect. Unfortunately some people believe them - thankfully not many in the industry and we hope that the ACCC won't be swayed like the Federal Minister for Agriculture and Government Ministers in NSW, Victoria and WA. Have a look at the document here   The AECL Statement has a number of inaccuracies.

•  AECL did carry out some consultation with the industry, but it ignored recommendations and proposals which did not fit its agenda.
•  The development process has not led to a well researched Quality Assurance program - there is little actual research which backs some of the proposed standards.
• It is more than lobby groups which are opposed to the implementation of Egg Standards Australia, it is also individual farmers working in the free range sector of the egg industry across Australia. The proposed stocking density is not the only aspect of the standard which is unacceptable to farmers. Other issues which are enshrined in the current Model Code are also ignored in the new standards – such as allowing free range chicks to range in the open once they are fully feathered and not permitting hens to be beak trimmed as a first option.
• There is no science behind the development of these standards for free range egg production. AECL has been unable to produce any evidence to show that its proposed stocking density is sustainable, that chicks should be locked in sheds until they are 25 weeks old (when currently they must have outdoor access from six weeks old) or the  beak-trimming at day old is an essential stock management tool.
• The proposed standards have been designed simply to meet the requirements of the supermarket chains and  maximise the profits of major corporations. If allowed to be implemented, they will mislead consumers and bring the industry into disrepute.

The Free range debate on ABC TV Breakfast

The Free Range Farmers Association had a great session with ABC Breakfast, and the story was run later in the day on TV and radio throughout Australia.
http://www.abc.net.au/news/2012-04-16/free-range-definition-to-rise/3952190

James Kellaway will be on the show on Tuesday morning trying to undo the damage with his usual spin. You have to feel a bit sorry for him, because he knows that what the Egg Corp is doing is unethical and just plain wrong - but he has to do what he is told by his Board which is controlled by the big corporations.

Liberals in SA help to stop egg consumer con

Liberal MP Michael Pengilly introduced a Bill to the South Australian Parliament this week to limit the stocking density of hens on free range egg farms to 1500 hens per hectare.

If the Bill gets up, and it should unless the Australian Egg Corporation's bullying tactics work, it will be the final nail in the coffin of the AECL plans to launch a new intensive standard for 'free range' production.

Read the Bill at:
http://www.legislation.sa.gov.au/LZ/B/CURRENT/FOOD%20(LABELLING%20OF%20FREE-RANGE%20EGGS)%20AMENDMENT%20BILL%202012_MICHAEL%20PENGILLY%20MP/B_AS%20INTRODUCED%20IN%20HA/FOOD%20EGGS%20AMENDMENT%20BILL%202012.UN.PDF

Egg Corp's plans are unravelling

There's a good piece about the problems in the egg industry on the Sustainable Table website at:
http://www.sustainabletable.org.au/TableTalk/tabid/53/EntryId/36/The-Free-Range-Controversy.aspx
This is on top of  AECL calling an emergency meeting of the 25 biggest egg producers to discuss a looming over supply of eggs which is expected to hit more than one million eggs a day by July unless the size of the national flock is reduced.

The Egg corp still hasn't been able to push through its new standard for intensive 'free range' production.

Supermarket wars to get tougher

THE new chief executive of Woolworths, Grant O’Brien is planning to double Woolies sale of home brand products, bringing it closer to supermarkets in Britain and the US, where the category dominates shelves and generates massive earnings.
The battle with Coles for market dominance will see many manufacturers and producers (including egg farmers who choose to supply the supermarkets) facing tighter margins as the two retail giants screw down prices.
And the Australian Egg Corporation is playing their game by trying to introduce standards which will help the supermarkets cut the margins of all their egg suppliers - which is likely to have a flow-on effect throughout the industry.
It is thought that Mr O’Brien, who has only been in the top job at Woolworths for a month, has targeted an increase in space allocated to home brand goods to eventually capture about 35 per cent of total sales - and more than 50% for staples such as eggs, milk and bread.
And the Egg Corp claims to represent the interests of all egg producers!!!!

Fight over the name Egg Standards Australia

This could be the new logo and trade mark for the updated version of the Australian Egg Corporation's quality assurance program.
AECL claimed that all the paperwork was with the ACCC, but that was denied by the ACCC. There have been a number of objections to the proposed name and trade mark application and all the paperwork is still with IP Australia which says it is unlikely to make any decision before 2012.
It seems that Standards Australia will not be happy with the proposed name as it clearly implies that the standard has been developed by Standards Australia when it really is just an industry proposal cobbled together by a private company - the Australian Egg Corporation Ltd.
In its latest newsletter, AECL says that the new standards, logo and trade mark should be ready for approval by the Board in April (next month) and will be revealed to AECL members in May.
We somehow doubt that timeframe will be met. All previous deadlines have been missed and if this application isn't processed until next year, it will be back to the drawing board for the AECL!