Massive Government subsidy for egg farm

Governments in all States, as well as the Federal lot are always squealing about the need to balance their budgets and producing excuses for cutting services to taxpayers.

But it doesn't stop them from finding money to support pet projects.

The latest example is the South Australian Government's decision to provide a $500,000 grant to expand an existing commercial egg farm.

How is it that politicians believe it's OK to pour money into a private business while cutting services to just about everyone else? This grant is a massive subsidy for one farm which will provide unfair competition for those free range egg producers who've used their own money, or had to borrow at commercial rates to establish and expand their businesses.

Here's a link to the announcement from the SA Government.
 

http://www.pir.sa.gov.au/pirsa/media_list/regional_development/$500,000_regional_grant_for_egg_producer_expansion_and_new_jobs

Egg stamping now compulsory

From this week, all eggs sold in Victoria must be stamped with a farm identification code.  The numbers have been issued by the Department of Environment and Primary Industries to improve food safety. It should also help to reduce egg substitution.
Producers or shops selling eggs which are not stamped should be reported to the local Council Health Department. Council Environmental Halth Officers are responsible for the enforcement of this national standard.

Bird flu in UK is impacting on producers

Outbeaks of avian influenza are devastating for the egg industry - as was seen in NSW last year and is now being experienced in Europe. Here's a report about the latest outbreak in UK.
http://www.theranger.co.uk/News/Producers-face-stockpiles-waiting-for-movement-licences_25114.html
Egg farmers in Australia, and everywhere else need to heed biosecurity principles to protect their own businesses and their fellows in the industry.
All egg farmers here are currently paying for the greed of one or two farmers in NSW who risked everything to make a quick buck.

Free Trade Deal with China

Well the so-called 'free trade' deal with China has been negotiated. The deal has been widely welcomed even though the full implications for Australian agricultural businesses have yet to be realised -  Here are a few statistics which suggest there may be some problems for major egg producers in this country who could face stiff competition.

In 1998, the output volume of poultry eggs in China first reached 20 million tons,  over four times that of the U.S., accounting for almost 40% of the global poultry egg output volume. In 2012, the output volume of poultry eggs in China totalled 28.612 million tons.

In terms of international trade, the export value of eggs and egg products from China in 2012 was USD 177.13 million, showing an annual growth of over 2%. The export value of eggs to other countries in the asian region was USD 166.688 million.

Food for thought for the big boys! But they don't care about anyone else so why should we care about them.

Government pyromaniacs planning to disrupt our farming operations by burning native vegetation

Victoria's Department of Environment and Primary Industries has developed a 'planned burning' strategy in  a misguided and idiotic attempt to improve fire safety. As an example, we have recieved a notice that swamp scrub alongside our farm will be burned.

The area alongside our farm which is earmarked for burning
is hatched.

A burn right alongside us will have serious environmental implications as well as threaten our farm. Here's a letter I have sent to our State Minster for the Environment, Ryan Smith:

I am concerned that your Department plans to burn swamp scrub at the edge of the Grantvillle Nature Conservation Reserve in the next round of burning. It's too late this year, by far. Hasn't been safe for the whole winter. But the question is why would anyone burn swamp scrub? It is wet for most of the year - it provides habitat for bandicoots and skinks and Swamp Harriers nest there every year. It is considered an endangered vegetation community. VicRoads had to pay approx. $1.3m to offset some weed infested swamp scrub and sedgeland for the duplication of the Bass Highway near the Corinella turnoff. The area of the planned burn is also the headwaters of one of the few remaining permanent creeks running into the Bass River and feeds the one connected perched swamp. Contrary to the advice in DEPI's letter once this is burned it won't come back. The transevaporative effects will kill off the scrub, ferns, fungi, bladderworts etc. There is so little swamp scrub left that it makes no sense to burn it – far from any claims of making the bush safer from wildfire, it will make the area more fire-prone by changing the vegetation type.

If this 'planed burn' alongside our farm, gets away it will be responsible for the destruction of 100% of the remaining swamp scrub in this region and probably most of the remnant riparian vegetation on the Bass River.

On top of the environmental threat, there are serious health issues involved here, My wife Anne, is asthmatic and will not be able to remain on the farm while the burn takes place. Smoke from the Morwell coal pit fire drifted right down here, caused breathing difficulties for me which resulted in atrial fibrilation, heart failure and culminated in a stroke. Thankfully I have recovered well, but I can't go through that again.

If this burn goes ahead, we will have to leave the property which means that DEPI will need to provide accommodation for us as well as fund staff required to run the farm for the duration of the burn (we operate a free range egg farm).If the burn and resultant poor air quality covers  an extended period of time we may be forced to cease operations permanently.

Here's one patch of swamp scrub under threat

And more which will disappear under the 'planned burn' protocol 

 

ACCC wrong to claim "no need' for a definitive free range standard

The consumer watchdog has declared there is ‘‘no need’’ for a free range egg standard in Australia,

But egg producers and consumer groups are helping to develop a standard with consumer Affairs Ministers in every

state.

Rod Sims, chairman of the Australian Competition and Consumer Commission, said producers should instead use commonsense and rely on court rulings to avoid misleading labelling.

‘‘Some have expressed concern there is no government standard that producers need to meet to be a free-range producer. We see no

need for any standard,’’ he said at an agricultural forum in Melbourne this week.

 

While I understand his position, I believe he is wrong.  There is far more to the definition of free range egg production than animal welfare issues.  On our farm we have a three pillars approach, with food safety, land sustainability and asnimasl welfasre taking equal positions. There is considerabl;e pressure from the corporate sector of the industry - as well as the Federal, Queensland and Victorian agriculture ministers not to define stocking densitiers. There is a push thatif that an outdoor density is defined, it should be the major supermarkets version of 10,000 hens per hectare instead of the 1500 per hectare allowed in the current Model Code. 

Unless a maximum outdoor density of 1500 per hectare is adopted by Ministers, then Rod Sims is right - don't bother with a national standard because the big players will simply maintain their intensive production systems.

 

Trade threat to Aussie egg industry

The egg industry here in Australia appears to be oblivious to the threat of  the Trans Pacific Partnership which is still being negotiated. Trade Minister Andrew Robb has been holding talks in Sydney this weekend which could see the importation of cheap eggs - but our farmers don't seem to care.
The Canadian Egg Industry is more aware of the potential threat to their businesses, but here, the big players prefer to look the other way.
http://www.eggfarmers.ca/international-trade/international-trade-agreements/

Egg stamping should help to boost consumer confidence

Stamping eggs with a farm identification code is part of a national food safety scheme which is being implemented differently in each State. In Victoria, the State Government delayed the compulsory introduction of egg stamping until November 25 this year.

The Government says it will exempt producers with less than 50 hens from the new requirements. Some producers claim that the whole concept is a farce and will do nothing to improve food safety or traceability.

Egg stamping will help to solve the egg substitution rort which has been rife for years but probably first came to general notice in Victoria during 2007 with a high profile case when a company was fined for labelling eggs as organic when they were from conventional farms.

In 2012, a NSW barn egg farm was fined for packaging its eggs as free range and a South Australian egg seller was fined for putting cage eggs in free range cartons.

Also in 2012 an inspection processes in Victoria revealed that a farm was packing and selling eggs from dubious sources interstate and labelling them as free range eggs produced on that Victorian farm.

If all eggs are stamped with a unique number which shows the farm on which they were laid, egg substitution will hopefully become a thing of the past.

Consumers may still have to contend with labels which can be misleading, with pictures of hens frolicking on green pasture when the reality is far different. But a recent Federal Court decision which resulted in a $300,000 fine for a NSW egg farm which falsely labelled its eggs as free range, should give consumers a little more certainty when they buy eggs.

Accreditation means different things to different people. Consumers rightly expect it to convey a message of credibility about a particular product, but to many businesses it's simply a marketing tool designed to allow them to make claims which increase their profits.

A logo can be a valuable asset if it is trusted by consumers. But it's value is destroyed if it is shown to be meaningless. Any accreditation program is only as good as the willingness of the accreditation body to maintain its standards and defend its logo.

Unfortunately there is no free range certification standard in Australia which is worth the paper it's written on.

Irrational arguments against ACCC action over 'free range'

Writing in Stock and Land, and various other publicatioins, SamTrethewey has tried to justify the consumer deception practised by many egg farmers who label eggs as 'free range' even though they are from intensive production systems. He argues that those producers have simply followed the Model Code. But all that shows is that he hasn't read the Model Code, because, if he had, he would see that the maximum outdoor stocking for free range egg laying hens is 1500 per hectare. There is a reference in the Appendix to 'any higher density' being allowed for meat birds as long as a rotational system is in place.

In his rant, Mr Tretherwey claims that  'the Australian Competition andConsumer Commission (ACCC)"starts throwing their weight around and penalising some farmers to satisfy some consumer complaints.

But against which standard? These farmers have been following the agreed voluntary code.

Admittedly, industry hasn’t been able to unite to form mandatory standards for production.

So the ACCC penalises against perception, but whose perception?

A recent case saw the ACCC smacking free-range egg farmers in the face because not all hens were outside.

That’s right'.

Yes indeed, that's right Mr Trethewey, the ACCC was right to take action as  demonstrated by the farm's decision to accept an agreed penalty of $300,000. The Federal Court judgement is a great result for the industry.

Big problems for egg farmers if they follow Bede Burke's advice

From the Northern Daily Leader, Tamworth

A LOCAL egg industry expert says many producers are worried about their ability to deal with two major changes facing

their industry nationally – a legal definition of free-range eggs, and egg stamping.

while egg stamping has already started to be rolled out nationally and is set to come into force in NSW on November 26, a legal definition of freerange eggs will not be decided upon for several years.

A spokesman for federal Agriculture Minister Barnaby Joyce said a national framework was “still quite a while away

... preparing these standards is expected to take a number of years to complete”.

The consumer affairs ministers’ forum, set to meet early next year, would “not consider a draft standard next year – it would be a progress update to consider how to proceed”, the spokesman said.

The chairman of the NSW Farmers’ egg committee, Bede Burke, who lives at Winton, said any definition of free range had to ultimately help producers.

“It’s absolutely necessary, but it needs to be paralleled with how those four million (free-range) birds are currently housed,” Mr Burke said.

He said many producers had spent the past three to five years spending a lot of money changing infrastructure to comply with the existing code of practice.

If the code was changed “dramatically”, it would mean producers would have to “rethink whether to put (more)

capital in ... farmers need to re-evaluate whether they’re going to stay in the industry”, he said.

“The definition by the code of practice was very loose and that’s where we’ve got these problems,” he said.

Mr Burke said outdoor stocking density was one of the biggest issues regarding what qualified as free range.

“It’s a very emotive issue and it is an issue people don’t understand well,” he said.
 

comment by Freeranger Eggs:

What Bede Burke doesn't understand (or pretends he doesn't understand is that the Model Code currently imposes a maximum outdoor stocking density of 1500 per hectare for free range laying hens. It's only in the last five of six years that 'smart' operators in the industry have tried to claim that the Model Code sets no maximum limit.

 

The problem for the rest of us is that the corporate industry is able to exert great political pressure. Bede Burke has the ear of Federal Agriculture Minister Barnaby Joyce (they were at school together).

Those of us who care about the future of the egg industry need to let the Ministers for Fair Trading know that industry heavyweights are talking nonsense

Contrary to Bede Burke's ravings, this is what AECL Managing director James Kellawsay has been telling egg farmers:
'This decision is directed to the industry practice of labelling of "free range" eggs and provides guidelines for the lawful usage of such term.

The judgement has some very important ramifications for free range egg farming, as it is now law. The judgement defines, to a degree, what free range egg farming is.

As a result, I urge you all to read the judgement carefully and take any necessary steps to ensure you comply.'

Australia's egg industry tries a cover-up

Australia's egg industry is desperately trying to cover its tracks after major producers have been sprung conning consumers.

Bede Burke, Egg Committee Chairman of NSW Farmers claimed in an interview on ABC radio that there is confusion surrounding free-range and caged eggs, which is making future investment for the industry difficult.

He said it was a shock to see avian influenza outbreaks in the new style of free-range farms built in Australia. He said the magnitude of the outbreak was foreign to DPI staff, although the virus was eventually contained to two farms and eradicated. He acknowledged that the recent ACCC court case against Pirovic over free-range eggs was a defining case. But he tried to argue that farmers have invested in free-range production according to the existing code, which is now having a different interpretation laid over top of it. What a load of cobblers – it's purely greed. The existing code precludes intensive free range egg production but the shonky operators thought they had found a loophole! Bede Burke's attempts to defend shonky practices have not been supported by the Egg Corporation. Managing Director James Kellaway has told egg farmers " The judgement has some very important ramifications for free range egg farming, as it is now law. The judgement defines, to a degree, what free range egg farming is. As a result, I urge you all to read the judgement carefully and take any necessary steps to ensure you comply.

World Egg Day - a 'free range' definition

The definition of 'free range' will be a key feature of World Egg Day in Australia. At last, thanks to the Federal Court, there is now a specific definition which will be explained at an Open Day being held at Freeranger Eggs in Grantville this Friday and again on Saturday at the Farmers' Market at the Old Cheese Factory in Berwick.
One of the details in the judgement by Justice Geoffrey Flick  when he approved a fine of $300,000 for the mislabelling of eggs by Pirovic  Enterprises is "any free-range claim must be backed by farming conditions and practices ...under which hens actually move about on an open range each day.  Here's a piece run by ABC radio in Gippsland.
http://www.abc.net.au/local/stories/2013/10/05/3863085.htm

Free Range - the legal definition

At last in Australia we now have a legal definition what the term 'free range' means, thank to the ACCC and the Federal Court.
Here are details which we will publishing as a poster available at the Farmers' Markets we attend.

The Federal Court found that by labelling and promoting eggs as ‘free range’, a NSW egg company Pirovic Enterprises represented to consumers that the eggs were produced by hens which were able to move about freely on an open range each day, and that most of the hens did so on most days. Pirovic admitted, most of its hens did not move about freely on an open range on most days.

The Court found that the eggs supplied by Pirovic were produced by hens, most of which did not move about on an open range because of a combination of factors:

• the stocking densities inside the barns where the hens were housed;
• the flock sizes inside those barns; and
• the number, size and placement and operation of the physical openings to the open range.

This decision provides clear guidance that any free range egg claim must be backed by farming conditions and practices implemented by suppliers under which hens actually move about on an open range each day.

The ACCC and Pirovic agreed on joint submissions and proposed orders put to the Court. That resulted in fines of $300,000 plus costs to be paid by Pirovic for misleading consumers.

The court found that there are a number of farming conditions that impact on whether hens move freely on an open range each day. The conditions vary between producers and no single conditionis conclusive. The relevant conditions include:

• the internal stocking density of sheds;
• the conditions of the internal areas the hens are housed in;
• the number, size and location of any openings to an outdoor area;
• the time of the day and how regularly the openings are opened;
• the size and condition of the outdoor area, including any shaded areas, the presence of food, water and different vegetation and ground conditions;
• the stocking density of any outdoor area; and
• whether the hens have been trained or conditioned to remain indoors.

Egg Farmer of the Year could have been embarrasing

The Kondinin Group's Egg Farmer of the Year Award could have been embarrasing with the Federal Court finding on the definition of free range and the hefty fine handed out to a NSW egg producer. The ACCC could have just as easily launched action against any of the major egg producers in this countrry who claim that their products are 'free range' - including the Tasmanian business to which ther award was given.

At last a legal definition for 'free range'

The timing of the Federal Court decision against Pirovic Enterprises couldn't have been better. It provides a clear 'free range' definition for the industry to adopt and it will strengthen the resolve of State Ministers for Fair Trading when they next meet in April to approve a production code.
The Australian Egg Corportion's annual meting is in Canberra on November 19 and 20 and  staff from  the NSW Department of Fair Trading have been invited to a consulatative forum
The NSW Department of Fair Trading was tasked by the Ministerial Council of Fair Trading/Consumer Affairs to draft a national information standard on free range eggs and minimum labelling requirements for egg labelling.
The egg industry is also meeting in October to consider ideas for changes to the Model Code of Practice for the welfare of Poultry.  The big boys will have to modify their ideas in the light of the Federal Court decision. A specific legal decision is something we have been fighting for. Without it consumers would continue to be conned - and it's not just the ultra-large corporations. None of the so-called free range accreditation standards is worth the paper it is written on. Consumers need to be aware that they will never find free range eggs in a major supermarket. There are plenty labelled as free range but they are sourced from intensive farms and at best should be called cage-free.

$300,000 fine for 'free range' deception

One of NSW's biggest egg proucers has been fined $300,000 by the Federal court to settle an action brought by the ACCC. The fine to be paid by Pirovic Enterprises is big enough to get big producers in the industry to take egg labelling seriously. Details: https://www.facebook.com/l.php?u=https%3A%2F%2Fwww.accc.gov.au%2Fmedia-release%2Ffederal-court-orders-300000-penalty-after-finding-free-range-egg-claims-to-be-misleading&h=JAQE9LbqwAQF-azXgTSo45zT3Q7CG89uErEHEuHJWoXXwow&enc=AZN-L4J76OOccvlaGHHWDLY8z1HeH5-U23jK3a0r1Ks7G7k-BzWkexYovvfAg6F8KTeAFR4LLMsStMfWzgQ46ywtZzzXngqyEFgZHEim43cFoLvEQ4wDBByuDS00MNaAGU3v4uPq38evaf1pPZYEiNni3_YQDAs-Nh5XEvJLBfv1zg&s=1
One of the interesting side issues in this decision will be to see if the company takes action against the Australian Egg Corporation - because the business complied with all AECL requirements for its Egg Corp Assured programme - and was accredited as a  free range egg producer. Now the scheme has been revealed as a sham - just as all 'free range' accreditation programmes are a con. Pirovic has not been doing anything differently from other major egg producers.

Commercial release of eColi vaccine for poultry

Comment is being sought on the release of a genetically modified poultry vaccine that provides immunity to E.coli infection and disease. Australia's Gene Technology Regulator is currently assessing a license application from the Australian arm of global animal research company Zoetis for a commercial release .
Here are details:

http://ausfoodnews.com.au/2014/09/15/australian-government-invites-comment-on-proposal-to-release-commercial-gm-e-coli-chicken-vaccine.html

Aussie egg farms to pay for bird flu clean up costs

All egg farmers in Australia will be forced to pay for the costs of the avian influenza outbreak in New South Wales even though it was caused by poor on-farm practices and inadequate biosecurity procedures on the individual farms involved.

A new levy of 1.4 cents on every chick purchased by farmers will be charged, on top of existing levies. A business case has been submitted to the Department of Agriculture for an increase in the Emergency Animal Disease Response Levy.  Egg farmers have six weeks to object to the new levy so If think it's unfair on farmers who do the right thing,  object to this proposal. Send an email to AECL at contacts@aecl.org and also to the Department of Agriculture in Canberra at levies.management@agriculture.gov.au. It seems odd that a coalition Government which publicly supports small business and believes in individual responsibilty would choose a collective approach to bail out businesses which made poor decisions.

The levy increase proposal is to repay an amount of $395,000 to the Australian Government for the egg industry’s share of costs incurred for the responses associated with an outbreak of LPAI among ducks during January 2012; an outbreak of HPAI among laying hens in November 2012; and another outbreak of HPAI among laying hens in October 2013. Many farmers are asking "why should we be penalised for the greed of a couple of operators and their decisions to ignore normal business practices and biosecurity procedures." To compare the way farmers are treated, in the European Union, 50% of costs associated with the eradication or control of Avian Influenza are covered by the Government.  I'm not suggesting that should be the case here but I don't understand why Aussie farmers who have met all biosecurity and food safety processes should be penalised to the same extent as the clowns in the industry who have been chasing quick dollars.  Where is the equity?

Workshop on Starting a Free Range Egg Farm

Our next workshop on setting up free range egg farm will be held on Wednesday October 15 as part of Fair Food Week.  Details are on our website.
Attendees will get most out of the day if they have read our eBook.

Forum on 'free range' at egg industry meeting in Canberra

A new free range standard and possible new egg labelling requirements in Australia will be discussed at the next egg industry Forum in Canberra in November.

  After a presentation by the NSW Department of Fair Trading to the Forum egg farmers will be able to participate in a consultation session with Department officials about the issues.

The NSW Department of Fair Trading was tasked by the Ministerial Council of Fair Trading/Consumer Affairs to draft a national information standard on free range eggs and  minimum labelling requirements for egg labelling. The draft will be considered by the Ministerial Council next April.
 
The Forum will take place on November19 aand 20  in Canberra and it will be followed by the annual meeting of the Australian Egg Corporation.