Institute for Corporate Law, Governance and Innovation Policies
Economic and Health Issues in the Dutch Poultry Sector ICGI PREMIUM Report PREMIUM project team In the last decade the poultry sector has received increased Anna Frühbuss attention from the public, legislators, academics and economists. In this report both the economic and the health Didier Lambriex aspects of the sector will be highlighted. It is important to Ella Paulissen look at the professional and public opinion to identify current Jeroen van Vugt problems and discrepancies. This report will focus on operational and medical changes as well as innovations Joanna Harrus-Winden necessary to ensure the sustainability of the poultry sector. Khalid Elfayoumi Maike Gericke Marlieke Bouwmans Rosa Huizinga
ICGI supervisors Prof. Sybren de Hoo Christine van Basten-Boddin Constantijn van Aartsen
2 Maastricht University | Faculty of Law, ICGI | Economic and Health Issues in the Dutch Poultry Sector Acknowledgement The authors would like to express their gratitude to all those who gave us the possibility to complete this report. We are deeply indebted to our supervisor Prof. Sybren de Hoo whose help, stimulating suggestions, knowledge, experience and encouragement helped us in all the times of study and analysis of the project in the pre and post research period.
We are also grateful to Christine van Basten–Boddin and Constantijn van Aartsen at the Institute for Corporate Law, Governance and Innovation Policies (ICGI) of Maastricht University, for their stimulation and supervision. Without them this report was almost impossible.
We would also like to thank Menno de Gruijter and Bart-Jan Krouwel of the Productschap Pluimvee & Eieren for all their suggestions, help and support. It was a good learning experience working under all these inspiring people.
Furthermore, we would like to thank the farmers for their hospitality during the farm visits and the interviewees for their cooperation. The authors consider this a great contribution to the report. After last, a very special thanks to the organisation of Maastricht University’s PREMIUM Honours Programme, within which this project was conducted.
3 Contents
Acknowledgement 2 6.2.2 Task Force against antibiotics 33 6.2.3 Growth Promotion 33 Table of Contents 3 6.2.4 Example of effective measures 34 Abstract 6 6.2.5 Withholding period 34 6.3 Legislation 34 1 Introduction 7 6.3.1 European perspective 34 2 Supply Chain Management 8 6.3.2 Dutch national perspective 35 2.1 Why change from a traditional system? 8 6.4 Remedies and solutions 35 2.2 Supply chain of the Poultry Sector in the Netherlands 9 6.4.1 Alternatives to growth promoting antibiotics 35 2.3 Overview of the poultry broiler supply chain and egg production 9 6.4.2 (Inter)national agreements 36 2.3.1 Animal feed production 9 7 Minor health issues 37 2.3.2 Breeding/selection of laying-hens and broilers 10 7.1 Worms and fungi 37 2.3.3 Hatchery and rearing farm 10 7.2 Ammonia 37 2.3.4 Lay house 11 7.3 Viruses 37 2.3.5 Broiler house 12 7.4 Broiler selection 38 2.3.6 Packaging eggs and slaughterhouses 12 2.3.7 Food processing industry 13 8 Animal Feed: health risks, quality control and legal regulations 39 2.3.8 Retailers 13 8.1 Health risks regarding animal feed 39 2.3.9 Consumers 13 8.1.1 Animal proteins 39 2.4 Developments in the poultry supply chain 14 8.1.2 Genetically modifi ed food 39 2.5 Possible Solutions 15 8.2 Dioxin 39 8.3 Quality control 40 3 International characteristics of the poultry supply chain 16 8.4 Legal and general guidelines 40 3.1 Globalization - A cause of change 16 8.5 Remedies 41 3.2 Poultry industry worldwide 17 3.2.1 The rise of the so called ‘integrated systems’ 17 9 Overall Remedies and Sustainability within the poultry meat sector 42 3.2.2 Spain 17 10 How to make the egg sector more sustainable in the Netherlands 44 3.2.3 Brazil 18 10.1 Relevance of public’s perception of egg sector innovations 44 3.2.4 Thailand 19 10.2 Agriculture production and chicken feed 45 3.2.5 The Netherlands 19 10.2.1 Situation in agriculture sector that is relevant for chicken feed 3.2.6 Belgium 20 production 45 3.3 What does this mean for the Netherlands? 20 10.2.2 Approaches that lead to more sustainability 45 4 Public opinion 22 10.2.3 Consumer perceptions of sustainable alternatives 46 4.1 Bacterial infections 23 10.2.4 Suggestions for chicken feed production 47 4.2 Antibiotic usage 23 10.3 Egg production 47 4.3 Genetically modifi ed food 23 10.3.1 Current situation in lay-hen and broiler farms 47 10.3.2 Consumer perceptions of these sustainable alternatives 49 5 Price Development, Profi t Margins and Market Power 24 10.3.3 Suggestions for a more sustainable egg production 51 5.1 Price Development 24 10.4 Egg waste products 52 5.2 Profi t Margins 25 10.5 General consumer perceptions 52 5.3 Pricing Dynamics 26 10.5.1 General consumer perceptions of in-shell eggs 52 5.4 Market Power Relations 27 10.5.2 General consumer perceptions of out-of-shell eggs 53 6 Major health risks 28 11 Overall conclusion 54 6.1 Bacterial infections 28 11.1 Sustainability is a process 54 6.1.1 Legal and general guidelines 29 11.2 Eggs 54 6.1.2 European legal guidelines: Regulation 2160/2003 29 11.3 Poultry meat 55 6.1.3 Dutch National legal and general guidelines 30 11.4 Public health problems 55 6.1.4 Remedies and solutions 32 6.2 Antibiotics 33 References 57 6.2.1 Antibiotics in the Netherlands 33
4 Maastricht University | Faculty of Law, ICGI | Economic and Health Issues in the Dutch Poultry Sector Table of Figures Figure 1 Overview of production chain for meat 9 Figure 2 Overview of production chain for eggs 9 Figure 3 Broilers and lying hens per farm 14 Figure 4 Number of businesses engaged in poultry farming 14 Figure 5 Price development in the eggs sector (1980 to 2011 in Euro/kg) 24 Figure 6 Relative price development in the egg sector 25 Figure 7 Development of average margin per link (2005- 2008) 25 Figure 8 Cost Price Structure (as % of the consumer price) 26 Figure 9 Supply chain where Antibiotics occur 33 Figure 10 Supply Chain where Worms and fungi occur 37 Figure 11 Supply Chain where Viruses occur 37 Figure 12 Supply Chain where Dioxin occur 39 Figure 13 Egg production (‘000 tonnes) and self-suffi ciency levels (%) in the EU (1998-2009) 44 Figure 14 Raw material composition of unprocessed animal by-products 46 Figure 15 Typical Rondeel egg farm 48 Figure 16 Geographical representation % consumers expressing concern (welfare of farmed animals) 49
5 Economic and Health Issues in the Dutch Poultry Sector
Abstract
This research paper analyses current health and economic challenges in the Dutch poultry sector, and aims to suggest remedies that lead to more sustainability. The structure of this report follows the steps of the supply chain for poultry meat and eggs. To provide a context, we provide a global overview of the poultry sector in various countries. In the following, each step of the supply chain is described and each link is reviewed separately. Subsequently, the profit margins and market power are discussed and existing imbalances are pointed out. After the economic analysis there will be a discussion of the public opinion concerning health risks as well as a scientific examination of the health risks themselves. These risks are analysed in relation to their position in the supply chain. The influences of these various factors on public health, the current legislation and policies surrounding these problems are discussed. Consequently, we make informed suggestions for potential remedies to prevent these risks. Finally, factors that make the production of poultry meat and eggs more sustainable are explained, taking into account public perception.
6
Economic and Health Issues in the Dutch Poultry Sector
1 Introduction
For many years now, the poultry sector as a whole has been in the spotlights of and on, avian influenza, different types of bacteria, and more recently animal well-being. Critique given by the media, NGOs and the public has shown that our society is concerned about the possible risks on public health resulting from the consumption of poultry meat and eggs, but also considers animal well-being of increased importance.
The Netherlands is one of the most progressive and advanced countries when it comes to the production of eggs. An important factor in this success is that the Dutch egg sector anticipated legislative changes for a long time, which has made processes like the transition away from battery eggs much easier compared to other countries. The Dutch egg sector wants to continue to be a frontrunner in sustainable production and to achieve this aim it is important to know where to go from here. This is the goal of this report.
This report sketches a clear picture of the state of affairs within the Dutch poultry sector and tries to identify the challenges that lie ahead for an even more sustainable sector. It is important to understand that sustainability is a process where all relevant factors such as human health, animal well-being and profit are considered and balanced. The characteristics of sustainability do not allow for a clear definition, which has made writing this report more complicated, as one could not work towards a specific goal. These goals should be established by the sector, or perhaps even by society as a whole.
The economic and health aspects of the poultry supply chain and public opinion on the sector will be assessed, as we believe that in this manner the most important obstacles that present themselves can be carefully considered. Although the report focusses on the egg sector, the poultry meat sector will also be considered as both sectors have characteristics in common, such as issues related to the type and origin of chicken feed, diseases, etc. Within the framework of Maastricht University’s PREMIUM Honours Programme we aim to provide an accessible overview of the current state of affairs within the sector. We will conclude the report with recommendations for the future of the Dutch poultry sector in order to answer the following question:
“What changes need to be implemented to ensure the duration and sustainability of the poultry production industry in the Netherlands?”
7
Economic and Health Issues in the Dutch Poultry Sector
2 Supply Chain Management
This chapter will focus on the supply chain of the poultry sector in the Netherlands. First, we will provide an introduction to supply chain management and how the concept has developed over the last decade. This offers the reader a greater understanding of supply chain structures. Secondly, an overview will be given of the entire poultry sector, where each section and link is discussed for both egg and chicken meat production. The function of the specific members within the chain, in regard to the end product, will be mapped along with the organizational changes that have occurred over time. Lastly the impact of these changes to the chain and the economy will be scoped.
On a general scale, the fierce competition of global markets and the mounting expectations of consumers have forced corporations to improve cooperation within and between their enterprises. The relationship firms have with their customers and suppliers has intensified as a result. The increasing need for efficiency within and between operations combined with the ideology of ‘modern management’ has pushed forward the intensity of collaboration between chain partners to create a successful competitive environment.
These newly developed partnerships require significant improvements in Supply Chain Management (SCM). This necessitates that SCM becomes an important and influential part of the management agenda. This is not a new development. It has been introduced into manufacturing and retailing industries of Western countries during the 1990s. Regardless, its introduction into the agrifood sector is still relatively new on a global scale. Members of the agrifood sector are becoming aware of an important shift in the structures underlying competitive power. No longer do entities compete as solely autonomous firms; competition increasingly occurs among entire supply chains.
In light of this, there is a need and an opportunity for a combined approach by business partners towards the establishment of more effective and efficient supply chains. Shelf-life constraints and increasing customer attention for animal welfare and health, safety and environmental issues make an effective SCM approach particularly important for the poultry sector (Vorst et al. 2007).
2.1 Towards a more integrated approach of the poultry supply chain The poultry sector is often taken as an example of extensive networks behind a product. Demands from consumers have to be translated into qualifications of products and various activities ranging from production at the farm level to complex distribution systems to retailers and food industries. To better address these chain characteristics the poultry sector largely moved from a traditionally organized and managed supply chain into a supply chain in which all business processes and activities necessary to produce and deliver products that satisfy market requirements are managed through a more integrated and systematic approach.
The more traditional way of managing the poultry supply chain did use a limited set of standardized functional links, like: production stages, transportation/logistics, ordering, control and administration. The various members did not - have to - deal with problems of their suppliers and did operate as "functional islands" while maximizing their own benefits. Management was all about a constant effort to balance between supply and demand predominantly done by building excessive stocks. Eventually this proved to lead to poor overall performance characteristics of the supply chain as a whole: quantitatively as well as qualitatively and financially.
To address these issues it has been essential to redesign the supply chain and its management. Some major managerial aspects in doing so have been: the improvement of information and goods flow, the improvement of the exchange in information, increasing the vertical integration, the creation of new decision rules, procedures and mutual relations between various links of the supply chain. This process is still going on and will lead to increasing levels of SCM which is the integrated planning, implementation, coordination and control of all business processes and activities necessary to produce and deliver, as efficiently as possible, products that satisfy market requirements.
8
Economic and Health Issues in the Dutch Poultry Sector
2.2 Supply chain of the Poultry Sector in the Netherlands For the purposes of our analysis, the supply chain for egg and meat production has been separated. The difference in health and economic issues in each supply chain necessitates this approach. In figures 1 and 2 the production chain of each individual product chain is depicted. The main links and partners in both chains of the poultry sector supply chain are as follows (Vorst et al. 2001).
Chicken egg supply chain Chicken meat supply chain 1. Animal feed production Animal feed production 2. Breeding and selection of laying-hens Breeding and selection of broilers 3. Hatchery and rearing farm Hatchery 4. Lay houses broiler farms 5. Packaging eggs Slaughterhouses 6. Food processing Food processing 7. Retailers Retailers 8. Consumers Consumers
Each of the following stages will be described and analysed in general terms. The value each chain partner contributes to the chain along with the corresponding decision making power and influence over the chain will be documented.
2.3 Overview of the poultry broiler supply chain and egg production
Figure 1 Overview of production chain for meat Figure 2 Overview of production chain for eggs
2.3.1 Animal feed production
Animal feed and animal breeding are the main building blocks on which the poultry sector is built. The feed provides the necessary nutrients to efficiently promote the growth and health of the chickens. This industry, however, is exposed to a variety of risks, including input-commodity price volatility, high capital requirements, sophisticated logistics, the inherent business and climatic risks of the different subsectors to name a few. The animal feed is the largest component of the farmers’ costs, frequently accounting for more than 70% of the farmers’ production costs (Becker, 2008).
9
Economic and Health Issues in the Dutch Poultry Sector
As such, the animal feed industry is vulnerable to cost squeezes from their customers throughout the supply chain. The animal feed industry is a highly competitive industry with large entry barriers. These high entry barriers include: large capital requirements, experience, sufficient track records, extensive research and development and economies of scale in order to cost efficiently purchase the inputs that are required to enter this market (Louw et al. 2011). This has led to a concentrated market which is price-oriented and controlled by a few players.
The animal feed production industry is vulnerable to multiple risks. Aside from demand side price pressure, it is also heavily exposed to the international commodities market. Heavy volatility in the futures market for grain and other essential industry inputs has increased price uncertainty and damaged the stability of the market. Legal intervention in the futures markets for animal feed may be necessary to limit the effect of future price fluctuations.
2.3.2 Breeding/selection of laying-hens and broilers
For each production type there is a specific strain of chicken which is best suited. In the poultry sector there are three main types of chickens: egg-laying stock, meat production stock and a combination of the two. Each type of bird has certain characteristics which make it ideal for its purpose. The birds are genetically bred to best satisfy those characteristics (Best breeds of chickens, 2013).
Egg laying breeds have ancestral relations to the Mediterranean class of chickens. These birds are smaller in size and therefore waste fewer nutrients on producing body mass. The chicken’s dietary nutrients are concentrated more towards egg production. A further selection is made in white and brown shelled laying hens.
The chickens destined for meat production are not composed of any specific breed. They are a combination of several different types of chickens. By carefully selecting different types of chicken, genetic chicken breeders can breed chickens that have more breast meat, require less feed or are more resistant to disease. These chickens are not named after their origin but rather after the breeding company that developed them.
In the US there are three holding companies that control the majority of the commercial laying hen breeding industry. This shortage of participants in the breeding industry is a result of intense international competition and the high costs of modern breeding and marketing (Arthur, 2003). This market concentration caused concerns with regards to competition in the industry and has reduced the amount of different breeds of chickens available to hatcheries and lay houses. In Europe the chickens for each production sector have the same characteristics but the breeds are developed by multiple breeding companies, with several large players per country.
2.3.3 Hatchery and rearing farm
2.3.3.1 Hatchery
The hatchery receives eggs, specified for either egg or chicken meat production, which are then carefully monitored over a period of three weeks. The humidity and temperature of the incubators is modified to mimic the egg’s natural laying cycle. Eggs are also rotated three times a day to ensure the embryo does not settle against the egg wall and to ensure the natural circulation of oxygen within the egg.
Once the eggs have hatched a delicate process called ‘chick sexing’ begins. This method determines the sex of the new-born chicks. It is not often mentioned because of the delicate nature of the result. The cockerels (male chickens) are generally of little use to the industry as they cannot lay eggs and are incapable of growing sufficient body mass to be supplied for meat production. In the Netherlands 30 million day old cockerels are gassed and ethically disposed of. Research is currently being conducted to find an alternative to this delicate part of the production process of poultry products (Hoving, 2009).
Following sexing, the new-born chicks can be vaccinated and, depending on their destination, beak-trimmed and/or toe-clipped to prevent the birds from harming each other when they live in close proximity. These procedures are executed to the demands of the different broiler farms. Immediately after, the new-born chicks are transported to the broiler houses. This is often considered the first step of the poultry supply chain as the strict bio-security and food safety protocols applicable to chickens start here. The chickens destined for meat production are transported directly to the broiler farms on the day they are born. The chicks for egg production are first transported to a rearing farm.
10
Economic and Health Issues in the Dutch Poultry Sector
There are several health risks arising at this stage of the supply chain. We will take a deeper look at these risks later. One of the biggest health problems arising in this stage of the supply chain is salmonella infection, which is an important cause of human illness. Another crucial issue is contaminated processing water that can cause bacterial problems in the modern hatcheries.
2.3.3.2 Rearing farm
At rearing farms one day old chicks are raised until they are suited for egg production. Additionally, rearing farms are also used to raise inseminating hens destined for laying fertilized eggs. The laying hens are monitored and allocated the right amount of feed to achieve specific growth and body weight targets. These targets are set to optimize the conditions to create the most efficient breeder hen and cock. The cocks are bred separately because their target weight is substantially higher (25-30%). This separation is needed to ensure that neither the hens nor the cocks steal the others’ feed. At 17 weeks of age the hens have attained optimal weight and are transferred to lay houses for laying eggs or breeding farms for mating and laying eggs for broiler chick production.
Good rearing is the starting point for healthy and profitable production. So at this stage it is important to manage all factors which impact the chicken’s health. Relevant factors at the rearing stage include climate conditions, hygiene levels and feed and water supply quality.
2.3.3.3 Breeding farm
At the breeding farms lighting conditions are altered. This process is known as ‘photo stimulation’. Light intensity and duration are increased to simulate the spring season and trigger sexual behaviour. This process of inducing sexual behaviour on a large scale is quite unique in the meat industry, as chickens are one of the few meat groups that are still fully naturally inseminated (The Poultry Site 2009). The reason for this is that although artificial insemination would obtain a higher success rate, and increase the ability to breed the ‘perfect’ chicken, the costs of artificially inseminating each chicken would be too high. The number of chickens that need to be inseminated to supply demand is simply too high to manage artificially. It goes without saying that the hens which lay eggs for egg production are not inseminated. It is essential to communicate with the rearing farm to produce healthy chicks and minimise the risk of public health concerns.
2.3.4 Lay house
In 2011 there were roughly 5 billion laying hens worldwide. China hosts approximately 1 billion of these and is the largest producer of eggs worldwide. Europe houses around 370 million and nearly 49 million of those were housed in the Netherlands in 2011 (International Egg Commission, 2011). Despite these large numbers, laying hens constitute only roughly 1% of the global chicken population. With each of these hens laying roughly 300 eggs a year, selective breeding practices have resulted in an increase of 150% of a chicken’s natural yearly egg production (Arthur, 2003).
There are four different types of lay house farms (Productschappen Vee):
1. Enriched cages: Each lay hen has at least 800 square centimetres of space and the cage should be larger than two square meters. The chickens cannot leave the cages but do have a nest, perches and a litter area. 2. Barn: The chickens live in a coop at a density of nine chickens per square meter, usually without the possibility to go outside. Their beaks may be trimmed to prevent feather picking and preventive medicine is allowed. 3. Free range: Barn chickens have the same nine per square meter density inside the coop as barn chickens. Yet, in addition to this they have an unlimited access to an outer area where each chicken has at least four square meters of space. 4. Organic: Organic chickens also referred to as bio-chickens are usually held in the same chicken coops as free range or barn chickens, the difference being that they have more space. There are usually six chickens per square meter within the coop and each chicken has at least four square meters of green-covered land. Additionally, bio-chickens receive biological feed, the soil is not treated with chemicals and the beaks of the chickens are not trimmed to prevent feather pecking.
A major problem in this section of the supply chain is the fact that farmers are staunchly independent entrepreneurs. They each have a vastly different approach to egg production and are therefore not united as chain link members. The main source of friction is the fact that each different lay house farmer blames another type of farmer for the development and spread of diseases.
11
Economic and Health Issues in the Dutch Poultry Sector
Another issue at this level of the supply chain is that they are the primary group subjected to public scrutiny and policy making. They occasionally have to completely adapt their business in order to meet higher levels of standards and regulations. As of 2012, under European law, battery cages are prohibited but enriched cages are still allowed. In the Netherlands, legislators went one step further and declared enriched cages an insufficient improvement. As of 2017 (with the exception of 30 farmers, who have until 2021) ‘small-volière systems’ will be the minimum norm. This type of system incorporates a further increase in living space for the chickens.
These changes in legislation expose the farmer to a certain degree of ‘stroke-of-a-pen’ risk. Farmers have to adapt farm production systems at their own expense to meet external requirements. Although a calculated transition period is provided to give time to recover costs, this issue still places extra pressure on the farmers.
It should also be noted that cage farmers are not the only ones who have to deal with legislation or regulation changes. A frequent complaint from bio-chicken lay house farmers is that both the Dutch and the German market change the specifications the farms have to meet in order to be branded ‘bio’. These small changes cause a lot of frustration for the farmers and create uncertainty within the industry.
2.3.5 Broiler house
The broiler breeder industry is often seen as a more profitable industry than egg-laying, yet it requires a lot of skill with regards to the production process in order to reduce mortality rates and keep a steady stream of production (Murad, 2003). At broiler farms chickens are fattened over a period of 40 days (6 weeks). When the agreed delivery- date or specified weight is reached they are delivered to the poultry processor. Because the ‘goods flow’ in this supply chain concerns live birds, processes cannot be buffered very easily and short-term coordination is of utmost importance.
The chickens supplied by the farms to the slaughterhouses have to comply with specific quality characteristics. Chickens have to be from certain breeds, of a specific weight, fattened with a specific high quality certified feed and according to several quality systems such as the Hazard Analysis and Critical Control Points (HACCP) and the Dutch Integral Chain Control Policy for Poultry). This means that farmers are subject to the changing requirements of the slaughterhouses, which makes matters more complicated for them.
The farmer bears the risks from the moment the day-old chickens are delivered to the farm until the safe delivery of the finished product to the processor. Additionally, broiler farmers have little input in the work process and are viewed as supervisors rather than an essential link in the supply chain. Their bargaining power is therefore limited. They cannot obtain price advantages with regards to feed or production methods given that both are specified and controlled by holding companies. They must therefore accept prices stipulated by the feed companies, leaving little room for profits and additional investments in their production systems. Compounding the farmers’ lack of bargaining power is the level of price transparency within the industry. Slaughterhouses, retailers and banks all know the margins of the industry. This puts various members at a disadvantage and leaves little room for negotiation. Therefore the later actors in the supply chain (e.g. retailers and slaughterhouses) are best able to negotiate prices in their favour.
Within the industry prices are usually set for a period. This period differs per farmer and per slaughterhouse. A major concern for farmers has been the large fluctuation in prices. This creates much financial uncertainty for farmers who have little influence over their costs and selling price.
Furthermore, broiler houses face several health problems. One of the most serious problems is the cost-effectiveness approach to feed restriction during the rearing phase. This can lead to chronic hunger and furthermore has a negative effect on broiler breeders’ welfare.
2.3.6 Packaging eggs and slaughterhouses
In 2009 there were 16 slaughterhouses in the Netherlands which slaughtered more than 10.000 tons of broilers (The Poultry Site, 2012). Slaughterhouses are usually the largest power factor in the various poultry supply chains operating within the Netherlands. The predominant reason for this is that their market is heavily concentrated; there are less of them than of any other member of the supply chain. These slaughterhouses are owned by larger holding companies which manage the steady flow of products in and out of the slaughterhouse. Tight buffer periods, strong demand and therefore short response times plague this link in the chain as well as inflating prices and careful selection procedures. Slaughterhouses have an extensive choice of suppliers and give priority to higher
12
Economic and Health Issues in the Dutch Poultry Sector
quality and lower prices per chicken. This selective picking is of great concern to the farmers as the longer their chickens are in transportation, the more stressed they become. This negatively affects animal welfare, the flavour and quality of the meat.
Another downside of the selective picking by slaughterhouses is that laying hens are often not accepted because of their low added value. When laying hens are roughly 71 weeks of age their productivity drops and it becomes uneconomical to retain the birds. Due to their old age and the stress they have endured the birds are not fit for regular meat production. They are used in processed foods or sold as ‘soup hens’, which are considered a delicacy in some African countries. Slaughterhouses give these ‘soup hens’ a lower priority, causing the birds to remain in transport longer than what would be considered optimal. The additional stress decreases the flavour of the meat and increases the chances of catching diseases.
2.3.7 Food processing industry
At this stage the lay-hens and the by-products of broiler chickens are processed in soups, salads, animal feed, ready meals and other pre-processed foods. The value of this meat is significantly lower than fresh produce and can therefore be purchased at a substantial discount. Packaging of fresh poultry products at the distribution centre requires an advanced production line in a low temperature environment. Cost effectiveness and economies of scale make this form of production process feasible only if a variety of fresh meat products are packaged at the distribution centre. At this stage of the supply chain, there is much pressure to process the products quickly before they perish.
With regards to the processing of eggs there is less emphasis on time management and more focus on controlling the flow of goods efficiently. This efficiency is important as a control to prevent price fluctuations. Due to the existence of a bulk market, farmers will continue to produce and these products need to be offset. The focus is on finding new products in which to process the produced eggs.
One of the major health risks occurring at the processing stage is foodborne. The high speed at which meat is processed increases the risk of contamination by bacteria which cause food-borne illnesses.
2.3.8 Retailers
It is identified that the poultry sector has a seasonal demand. However, this seasonal demand is often distorted due to promotional activities. Organizational and supply chain efficiency would improve if promotional activities were reduced or stopped altogether. This would stabilize demand levels throughout the sector and reduce inventory stress and high production demands throughout the supply chain. Retailers provide a lot of resistance when it comes to reducing the amount of promotional activities concerning meat. Meat products are the most expensive component of evening meals and reducing sale prices is good for competition as it brings in customers.
Promotional activities will remain a sufficient way to reduce excess capacity. This is especially valuable in the poultry sector as some chicken products are in higher demand than others; the demand for breasts, wings and legs fluctuate and are unbalanced, with the chicken filet being in highest demand.
Retailers also make influential decisions with regards to the eggs and meat they accept. For example since 2005 the only eggs sold in the supermarkets in the Netherlands come from barn, free range or organic laying hens, therefore excluding cage eggs from the direct consumer market via supermarkets. Cage eggs or category 3 eggs are still sold to and used in the catering industry and are the primary use in processed food which contains eggs.
The retailers have a superior market position as they know the exact price points at which its suppliers operate. Therefore they have a superior bargaining position with regards to price negotiations. Additionally, being a large client to the industry retailers can obtain better prices and deals because they buy in bulk.
2.3.9 Consumers
Although the majority of consumers indicate that they care for the wellbeing of animals and eco-friendliness of the products that they purchase, their price-oriented buying behaviour suggests otherwise. There is discrepancy between the expressed opinion and concern and the products they purchase. Subsequent sections of the report will further elaborate on public consumer opinion.
13
Economic and Health Issues in the Dutch Poultry Sector
2.4 Developments in the poultry supply chain One of the major issues in the poultry sector in the Netherlands is the steep downward trend in the number of businesses operating in the poultry sector. In the period 2000 until 2010 the number of businesses engaging in poultry farming has decreased by 40%. The decrease was escalated in 2003 and in 2005 due to the bird flu which damaged the industry. 2004 and 2005 showed a slow recovery but since then the market concentration has continued. To match demand in response to this trend, the number of chickens held at each business has steadily increased. In the same 10-year period the number of broilers held at farms increased by 50% to an average of 70.000 in 2010. Laying hen holdings at farms made a larger leap and increased by 73% in the same period 2000 till 2010. Each egg laying farm now holds roughly 33.000 hens (Meurink, 2010).
Figure 3 Broilers and lying hens per farm Figure 4 Number of businesses engaged in poultry farming
Within the industry’s supply chain there remains a fundamental lack of trust among members at the same links and between links. For the entire sector to grow along a sustainable path trust issues need to be addressed and individual businesses need to adapt and form a unity rather than remaining separate entities (Louw, 2011).
Animal feed companies are currently part of a holding company that owns a larger part of the supply chain. The farmers at broiler farms and lay houses are paid per kilo or unit respectively minus the feed consumed by the chickens. This incentivizes farmers to limit the amount of feed provided to the chickens. This results in increased mortality rates and therefore costs. These single party demand based incentive schemes need to be removed and redesigned in collaboration with all parties to ensure the sustainability of the industry. Additionally farmers are instructed to use the feed of specific feed companies within the holdings. This drastically limits a farmer’s choice and ability to seek competitive prices at other feed companies and allows holdings to maintain non-competitive pricing strategies (Louw, 2011).
On a global scale, the entire meat sector has had to cope with increased fluctuations in feed prices, especially following the start of the financial crisis. Reduced demand during the crisis has led to falling prices. Consequently many farmers in all sectors have struggled and had to drastically change their businesses. The main decision made by farmers was to either produce their products more efficiently or switch to higher margin products such as bio meat. As the economy slowly started to recover, prices started to rise with it. The beef and mutton (red meat) farmers struggled to meet demand, resulting in higher prices for red meat. This has enabled them to cope with the increase in feed prices. Unfortunately the poultry sector is a victim of its own success. The sector was able to quickly respond to the higher demand and as a result prices for chicken meat have not increased at the same pace as the red meat (OECD/FAO 2011).
The government should play a leading role in creating an environment which stimulates fair business practices by all members of a supply chain. The current lack of sufficient policy and policing in the poultry sector in the Netherlands has resulted in a power imbalance between the various parties along the supply chain. Major holdings are able to benefit from this lack of governance by taking oligopoly positions in the market and profiting at the expense of less powerful chain members. This has impacted fair competition within the industry and the accompanying inefficiencies have restricted national adaptability and innovation as well as the competitiveness of the industry at the international level.
14
Economic and Health Issues in the Dutch Poultry Sector
2.5 Possible Solutions It is in the best long-term interest of consumers, individual companies and farmers within the industry to work together to improve its sustainability while simultaneously ensuring that food supplies are affordable. It is absolutely necessary to promote the importance of sustainability in the poultry industry. Companies should not only work at a national governmental level but also at the international level to ensure that there is a collective global interest in this topic. As such, a potential solution could be to shift from a supply chain marked by power imbalances and unfair competition to one marked by collective action and competition on a level playing field. This would result in a streamlined and flexible supply chain which can respond quickly to policy and public concern requirements as well as international demand.
15
Economic and Health Issues in the Dutch Poultry Sector
3 International characteristics of the poultry supply chain
As explained in the previous chapter, the supply chain of the poultry sector is organized in a specific way. The actors enjoy different margins, obligations, risks and power. Chain characteristics constantly adapt to changing circumstances and are therefore subject to continuous changes.
How the Dutch poultry sector is currently embedded in its international context and even could look like in the future will be roughly explored in some directions by sketching some relevant characteristics of the poultry sector industry in different countries. We also take a brief look at milk production, another important sector in Dutch agriculture, to examine whether the developments are sector specific or if they reflect a more general trend. We trust that by identifying the various developments and their drivers, our recommendations will improve in substantive terms and practical value.
3.1 Globalization – A cause of change First of all globalization, the process of international integration, is one of the main causes of change everywhere around the world. Globalization seems of overriding importance and proves to be difficult to influence in direction, speed and magnitude. In general the development also implies that a country opens its borders to free traffic of goods from other countries and provides and receives a constant flow of information from around the world. Hardly any country and its sectors in agriculture or industry are left untouched by this phenomenon. The free trade model is an inherent part of globalization.
The process of globalization is heavily supported through international organizations such as the World Bank and World Trade Organization (WTO) and has become an important element of many policies adopted by the European Union as well. While globalization has many advantages, its disadvantages such as hyper competition, increased inequality and insecurity are also plentiful. For example, in our case of the poultry sector increased inequality manifests in different ways. Cheap chicken products are in increasing quantities imported into the EU and can no longer be legally banned because of various reasons related legislation and quality aspects of production processes and products. As such, chicken products produced under inferior labour standards, inferior animal well-being, less strict regulation introduce an unequal level in the playing field for EU producers and restrain progress towards more sustainable European egg production. Increases in scale, integration and the creation of monopolies are making developing countries increasingly more competitive in the global trade of, amongst others, poultry products. This is a disadvantage for the farmers in e.g. the Netherlands, which have higher costs, more legal requirements to comply with and a critical consumer that wants its products cheap (Van den Bossche, 2008).
Globalization creates increasing interdependencies and makes our society more and more complex. This trend becomes even more important because WTO attempts to make the trade processes more transparent show slow progress. In light of this, the lack of coherence between various regional and international agreements makes the system even more complex. An example of this is the detrimental effect on the Cotonou agreement between Europe and the African, Caribbean and Pacific group (ACP) countries. These countries enjoyed favourable treatment by the EU under the Lomé convention. However the WTO’s non-discrimination requirements and Most Favoured Nation (MFN) treatment principles require the EU to apply the same international free market principles to developing countries (Van den Bossche, 2008).
The development of globalization also hints at a worldwide trend in which farmers are becoming increasingly subservient to strategic organisational “monopolies” and “oligopolies” in key areas of the production chain. These organizations are increasingly dictating supply and demand. For example, concentration in the distribution sector has led to these actors have a disproportionately high bargaining power. In turn this has increased downwards pressure on production prices for primary producers.
The impact of the free trade model not only harms the Western world by restraining a change to a more sustainable agriculture. Dumping practices by Western countries have equally inhibited the economic and agricultural development in developing countries. It is known that the Netherlands and Belgium export cheap and low quality chicken products to developing countries. As these products are cheaper than the ones that are produced locally, the local farmers cannot compete against this and lose their market and consequently their livelihoods.
16
Economic and Health Issues in the Dutch Poultry Sector
3.2 Poultry industry worldwide
3.2.1 The rise of the so called ‘integrated systems’
In countries like Spain and Brazil integration of the chain means that the integrator (often conglomerates of large companies) provides the farmer with chicks, feed, medicines and advice. Farmers are paid per kg or per chicken that complies with the requirements set by the integrator. The farmers’ role changes from entrepreneurship to taking care of broilers who are shipped to slaughterhouses owned by the integrator. The farmer has to raise the birds according to various demands imposed on him: by a set of production practices, animal welfare guidelines, bio- security and animal health procedures. These rules and standards are monitored by the companies to guarantee the traceability of the product from farm to consumer. The farmer no longer owns his work as an entrepreneur, but has rather turned into a labourer who is forced to bear the majority of the risks. This system is beneficial for the integrators: financially rewarding, no trouble with labour unions and externalized environmental risks. It is low cost, as the farmer is only paid a small amount (often a fraction of what is paid to an industrial labourer).
To provide some perspective and depth into the actual consequences of this change towards “integrated systems” we decided to describe some examples of developments in some countries relevant to the EU poultry sector and where possible the effects on the Dutch poultry sector.
3.2.2 Spain
Spain has one of the main food industries within the EU. Its poultry sector is an essential part of the Spanish market as it has provided cheap produce, especially during the 60’s and 70’s. Since then, the sector has been expanding and provides for 11% of agrarian final products (Un sector clave ganadero en España, 2004). The Spanish egg producing sector has increased its production with 12,8% and is now one of the biggest egg-exporting countries within the EU (The ever-changing face of European egg production, 2010). This represents only one side of the developments.
Spain was the first country within the EU to report outbreaks of avian flu. Due to these outbreaks the price of poultry meat dropped by 14,2% and Spanish consumption dropped 10% (Baja un 10% el consume de pollo por la gripe aviar, 2006). The consequences of the avian flu outbreak hit the Spanish poultry industry severely. After overcoming the first crisis caused by avian flu, the Spanish poultry sector suffered again in 2008. Once more it caused decreased prices due to low demand, but at the same time feed costs were increasing – representing roughly 70% of the production cost (European Commission, Enterprise & Industry, 2011).
As a result of new regulation on animal welfare, 18% of Spanish poultry farmers have gone out of business and egg production dropped by 30%. One of the reasons for this result has been the worldwide economic crisis which negatively affected farmers’ access to bank loans. Without access to funding, farmers lacked the opportunity to innovate and adapt to the new poultry housing requirements (Disminuye un 18% el número de avicultores de puesta en España, 2012; España pierde un 30% de su producción de huevos por el bienestar animal, 2012).
These crises in the poultry sector drastically changed the Spanish poultry farming landscape over the last decade. The farming landscape traditionally consisted of family farms which are passed down through generations and run by individuals who are unwilling to give up their customary livelihoods. The crises mentioned and the increasing lack of competitiveness of these farms, are the main reasons for the shakeout of these small farms. Mergers are possible but since farmers prefer to maintain their identity, it is not simply a mathematical calculation.
In the meantime Spain’s poultry sector mainly produces through earlier mentioned integrated systems and its integrated contracts count for 90% of poultry production. These integrated contracts cannot be seen as fair towards a farmer. These farmers have become completely dependent on the integrator but must still bear a great deal of the risks involved. There are even examples of farmers who are left without an income as a result of inferior feed provided by the integrator, or due to the supply of low quality chickens.
More recently policies have been implemented to bring some improvements but thus far the reality is that these policies have failed. The government passed a law to standardize integrated contracts in order to provide basic protection to farmers. But, despite these attempts over the last five years, long term agreements have made place for medium-term contracts which further increased uncertainty for the farmers. This attempt to reform the poultry sector within the old, broken and uncompetitive framework has not improved the farmers’ position.
17
Economic and Health Issues in the Dutch Poultry Sector
Nowadays 88% of the poultry production in Spain is held by ten companies. The negotiation power of these companies has proven Quote Spanish Broiler Farmer: “In significant enough to place them on a relatively equal footing with the the 1960’s my father first began modern retailers sector. The remaining part of the poultry sector however with keeping chickens for meat. It shows a more fragmented picture with many small farms (around 2,000). started small, with several dozens of These small farms operate on the regional or local market and their lack of chickens in the attic. Currently I have negotiation power and collective bargaining provides retailers with a clear around 40.000 chickens at a time. advantage. The increasing knowledge of the retailers about their client Nowadays, first my father and now base and its behaviour gives them even more market power. myself, became dependent on the
integrators. They provide the chicks, An example is SADA, a conglomerate of companies covering companies in the feed, the medicines… In the past almost the entire poultry production chain. In 2008 farmers claimed that we had some cases where many SADA, by means of its abusive contracts and related administration chicks did not make it until pressure, pushed 1.700 poultry farms to bankruptcy. As mentioned above transportation to the arrangements have been made to establish the minimum standards that slaughterhouse due to the bad have to be recognized in contracts between integrators and farmers. quality of the chickens or the food However, it is claimed that companies such as SADA do not comply with provided. The chickens are delivered, these agreements. The farmers feel like they have been abandoned by I take care of them, and then the their own government and by Brussels (Acusan a SADA de poner al borde de integrator picks them up again. The la quiebra a 1.700 granjas avícolas, 2008). majority of the risk is on me: when chickens die my income goes down, 3.2.3 Brazil when the chickens need more feed Brazil is the third biggest poultry meat producing country and the largest than standard, my income goes exporter of poultry meat in the world. One of Brazil’s advantages is its down, when the chickens are not access to a great amount of cheap corn and soy, which form the main fully grown, my income goes down. components of chicken feed. Brazil also benefits from other factors such as So, I get only paid for the chickens cheap labour and low production standards compared to Europe. The that meet the integrators standards. country was also not hit by the avian flu although it has seen a drop in I am fully dependent on them. demand of poultry products. The industry has not had difficulties overcoming these effects. As of 2007 some changes have been made to limit abusive practices of Besides standard approaches within the poultry sector, Brazil is developing integrators. However, these changes a ‘farmer-less farms’ system in which companies are focussed on creating have not been enough. I am still a processed products like ready-made meals, halal meat and other products cheap labourer without any labour with higher added value and a lower risk of being banned in the protection, left to myself, without international market because of sanitary reasons. help from my own government or the EU. To make things change in The poultry industry in Brazil also developed since the 1960’s along the line this country, I think Brussels should of integrated systems (as described above). Currently 90% of poultry take strict measures to make this production takes place through these so called integration systems and behaviour stop.’’ their contracts. Also here the farmer is placed in a “non-negotiable” position in which also the agricultural organisations cannot provide any help. They are forced to expand their farms to be able to deal with the costs. As a result of this integrated approach 37% of Brazil’s poultry production and 72% of its poultry exports are in the hands of four companies: Sadia, Perdigão, Seara (American owned, Cargill) and Doux/Frangosul (French owned, Group Doux). Farmers in Brazil are contracted with one of these big companies, leaving them in a very weak bargaining position.
There are, however, also a small number of poultry farmers that are trying to stay as independent as possible and produce chicken that grow slower (60 days instead of 45). These chickens do not get antibiotics and growth promoters and are sometimes fed with the farmers’ own grain and soy. These farmers’ products are brought to the market by an organization called Fetraf Sul. Without this organization these farmers would most likely not be able to bring their products to the market themselves.
18
Economic and Health Issues in the Dutch Poultry Sector
The prices of these products are 25% higher than the standard chicken products mentioned earlier. Once a farmer is connected in this network it is quite difficult to get out of it as well as in the case of integrated systems because of debts from mandatory investments in their production systems and stables.
3.2.4 Thailand
Thailand is the fourth biggest exporter of poultry meat in the world. Among its competitive advantages Thailand has a relatively modern poultry industry, cheap labour and low production standards. In addition the Thai government actively promotes the consumption of poultry products. Although Thailand has an enormous production capacity it suffered three outbreaks of avian flu over a short period of time (2004, 2005 and 2006). The industry incurred big losses, but the large commercial poultry farmers have been able to survive these. Many of the smaller farmers have not been able to overcome this blow and have gone out of business. After the avian flu outbreaks, the industry restructured itself quickly (Ieder voor Allen).
Thailand, like Brazil, is focussing on processed poultry products. Ready-made products have been adapted successfully to the diverse culinary cultures and circumvented the import ban on deep frozen poultry. This has promoted chicken consumption and export. The Thai poultry product export has even better foresight because as of 1 July 2012 the EU has lifted the import ban on fresh poultry meat. This is expected to raise Thai exports to the level of its import quota, set at 92,610 metric tons (Thailand poultry exporter’s income to increase after EU ban lifted, 2012).
Thailand, like Spain and Brazil, has implemented an integrated system. However, there is also a trend to create massive poultry farms that can hold up to 4 million chickens per location. These farms, besides their advantage in economies of scale, are dominated by automation and need fewer personnel. Furthermore, compared to the EU employees receive very low wages and are not members of labour unions. So the situation provides the major companies in the integrated system with substantial negotiation and market power.
An example is the multinational Charoen Pokphand (CP), which is Thailand’s biggest company with 160.000 employees, located in 20 countries. It is the biggest animal feed company and the third biggest poultry farm in the world. It has integration-contracts with hundreds of poultry farmers and owns several large chicken farms.
In Thailand 70% of the national production is in hands of a handful of big companies. 71% of the remaining 30% are of the poultry production is held by family companies, which mostly breed local races and roosters for fighting. These small farms are not relevant for Thailand’s export power. When looking at these numbers, Thailand is a very clear example of monopolization of poultry production which leads to the disappearance of family farms.
Spain, Brazil and Thailand are expected to have an increasing impact on EU poultry farming production. The organizational characteristics of these countries could be indicative of future developments in the Dutch poultry sector, which may be forced to shift in this direction as a result of international competitive pressure. Milk industry In November 2012 the European dairy farmers protested in Brussels against the low milk prices in Europe. In the last three years many farms had to stop production because of this low price. The farmers want to have a regulated price for their product to become more independent from market fluctuations. Answers from the European Parliament are expected in the spring of 2013, if not, the farmers will go back to Brussels to protest.
3.2.5 The Netherlands
Dutch farmers expand their farms, even though the majority of them prefer smaller sized stables. There are various reasons for expansion such as maintaining or increasing income, but farmers can also be required by banks to up- scale their business. An issue that could interfere with the shift to sustainability is that only big investments are profitable in large-scale operations (Van Gerven & Staarink, 2012).
When it comes to the pricing of their products, farmers in the milk sector are in a difficult position as well. Price negotiation proves to be an almost impossible task, as farmers are dependent on a select group of wholesalers which have disproportionate purchasing and bargaining power. This has limited the farmers’ possibilities in obtaining a fair price. Furthermore competition rules make collective organization by farmers (and other groups) to increase their market power difficult. This prevents them from setting up an organization or forum that could help them to obtain better and fairer prices for their products (Van Gerven & Staarink, 2012).
The division of profit margins within the supply chains is unevenly distributed. Also in the Dutch production chain the primary producers receive a low profit margin for their products and carry most of the risks.
19
Economic and Health Issues in the Dutch Poultry Sector
The division of profit margins is a major barrier to shifting to more sustainable milk production methods. A better price for farmers could turn the situation into a cure (Van Gerven & Staarink, 2012).
In the multitude of complaints coming from the farmers, many are connected with the governments’ lack of action and external pressure to expand their businesses. Other complaints concern the perspectives of the media and consumers, who accentuate the wellbeing of animals and blame the farmers for animal harm without a view on the countervailing power of market forces.
3.2.6 Belgium
Also in Belgium farmers feel that they do not have a grip on the price and that the only way to make a decent living or increase their income is to produce more. Because of expansion farmers have more debt which makes them even more dependent on their wholesalers.
A new issue in the debate about developments in agriculture is the rising demand that WTO gets out of agriculture. The reasoning behind this is that agriculture is a special sector. It differentiates itself from other sectors because it provides for the basic human needs. Society should be able to depend on agriculture for its food security. Because of this responsibility it is stated that even subsidies should be completely acceptable (except export subsidies) as an instrument to provide income and innovation. These subsidies could be seen as compensation to the farmer for fulfilling his social contract because a farmer is required to fulfil many requirements. Governments should be able to support regional initiatives and promote regional markets (Barrez, 2007). Time will teach us whether this line of debate could be successful or is destined to fail within the WTO’s global free trade system (Van Bossuyt, 2007; Barrez, 2007).
3.3 What does this mean for the Netherlands? The developments within the countries discussed above show that the poultry sector is becoming more concentrated through the use of integrated contracts. These contracts create a system of vertical integration within the chain, creating a perfect opportunity for economies of scale along with monopolistic behaviour. The existence of several dominant companies within these countries becomes clear by looking at the information provided. These dominant companies behave in ways that are often hurting those farmers that are part of their system. However, many farmers choose to sign integrated contracts because it gives them the security that their produce has a buyer, etc. This is not the case when farmers have no integration contracts.
What do the above considerations and findings mean for the Netherlands? It appears that currently the Netherlands is in a position where it is able to prevent the risks of free market operation. An example is the increase in production of organic eggs. In the Netherlands this type of egg production has been promoted to such an extent that has led to a higher supply than demand of biological eggs. This has undermined the farmers’ bargaining position for a better price, and has resulted in a more dependent situation. This shift from independency to dependency reveals that the farmers’ position within the chain is very weak; his position is beyond his control and improves or declines according to supply and demand. But this is not only the case for poultry and eggs. As stated above, the milk industry suffers from this as well.
The government has the obligation to prevent anticompetitive practices and protect farmers against possible exploitative practices by wholesalers. One of these actions should entail the prevention of creating the type of integrated contracts as seen in Spain, Brazil and Thailand. One of the ideas could be to unite the farmers under an organization that promotes their interests, however, it seems that this is difficult to obtain, as farmers are known for their individualistic behaviour. Another possibility could be to counteract the incentives for over-production by setting quotas, as it is clear that overproduction is one of the causes limiting farmer’s independence.
20
Economic and Health Issues in the Dutch Poultry Sector
The Netherlands should take a well-informed and clear position on what is How do different egg farmers considered sustainable, and consumers need to be given the freedom to think about each other? understand, protect and support this position. It is clear that if the Dutch sector would move to even stricter rules and regulations for the poultry Dutch organic egg farmer: ‘’Of sector their competitive position will diminish greatly. More course I think organic eggs are the environmental protection and animal well-being will raise the prices for best, but in my opinion every form poultry products. If the consumer is not willing to pay these increased of poultry farming - enriched cage, costs, cheap meat and eggs will be imported and largely replace high free-range, Rondeel© or organic – is quality and sustainable Dutch produce. The price for consumer apathy is fine. It is up to the consumer to high in this regard. A failure to aim for further sustainability will negatively decide which egg they want to buy impact Dutch farmers, animals, communities and the environment and and eat. However, every farmer may leave the Netherlands vulnerable and dependent on foreign markets needs to be honest. I think it is really and foreign companies. Recognising the importance of informed and annoying to read about a so-called thoughtful consumption, and the cost of apathy, we now turn to public ‘organic Rondeel’©, because after all opinion regarding the poultry sector in the Netherlands. a Rondeel© is not organic. A Rondeel© is fine and can be promoted, but this needs to be done in an honest way. And if they call that area a forest, I am living at the coast.’’
Dutch free-range (Rondeel©) farmer: ‘’As farmers we have the task to open our doors and to show what we are doing. That is the direction we need to go to. A cage farm is for economical purposes only and to produce a great amount of eggs. You only need to feed twice a day, check on the computer, collect the eggs and then you are finished. In the Rondeel© you are more a poultry farmer than an entrepreneur. We also have a traditional farm with 125.000 chickens, but I can earn the same amount of money with only 30.000 chickens in the Rondeel©. Nevertheless, we need this for the bulk market. But since other countries are expanding, is their still a need for this in 15 years?
21
Economic and Health Issues in the Dutch Poultry Sector
4 Public opinion
To provide a basis for understanding and anticipating public responses to risks, this chapter provides a summary of current public perceptions of health risks within the poultry supply chain.
Generally speaking, customer risk perceptions are highly dependent on the degree to which a risk is known or observable to the customer. Staempfli et al. (2010) indicate that consumers are not likely to actively engage in information seeking behaviour regarding food production methods, thereby risking consumption of products whose production methods would actually cause them concern in case of confrontation. One example would be the perception of customers regarding animal vaccination against zoonosis, diseases that can be passed from animals to humans. As customers are often unfamiliar with the hazards (e.g. avian flu), the information about animal vaccination increases their insecurity, and consumers might be hesitant to consume meat from vaccinated animals (Zingg, 2012).
However, although levels of food safety have been steadily improving, customers are increasingly anxious about food risks (Bánáti, 2011). This finding may be accounted for by the dependence of consumer attitudes on their risk perceptions (Mazzocchi, Lobb, & Trail, 2007). Due to the continuous coverage of health crises in the media, consumers are aware of occurring risks not only from a local, but also from a global perspective. The finding that public perception of food risks plays a significant role in the formation of consumers’ attitudes (Grunert, 2005) is, for example, shown by their behaviour during health crises. While customers’ attention is mainly focussed on production methods and reliability of information, their behaviour is still rather inconstant during a health crisis, often depending on local developments (Magdelaine, Spiess, & Valceschini, 2008). One remarkable finding by Magdelaine et al. (2008) was that customers associated health risks mainly with whole chicken products during a crisis. This was probably caused by media images of birds that lead to associations with whole animals rather than processed parts. Companies’ advertising strategies have also been found to influence consumer behaviour during a health crisis, as they particularly help to increase the possibility of a fast recovery after an occurring health crisis (Magdelaine, Spiess, & Valceschini, 2008). Other than that, geographical spreading, media reports, and health authorities’ capacity to handle the crisis (Magdelaine, Spiess, & Valceschini, 2008) have a large effect on customers’ perception of risks during a crisis.
Therefore, one remedy to reinforce public trust in the functioning of various institutions would be to involve customers in the process of policy-making decisions (Lezaun & Soneryd, 2007). Other drivers of consumer confidence are identified by De Jonge et al. (2010) as consumer trust in regulatory agencies, the perceived safety of a range of product groups and consumer recollection of food safety incidents.
Using methods of certification could reinforce the perceived safety of specific products. Kher et al. (2011) saw the advantage of certified products in their confirmation of product quality and safety. When certified by a reliable agency or certification body, participants indicated that certification would increase their confidence and preference for a product. One example from the Dutch market would be that IKB certified products, although being a valuable system in itself, would still obtain a reputational benefit if consumers' awareness of food security, traceability and animal well-being in the Netherlands could be increased (Magdelaine, Spiess, & Valceschini, 2008).
Certifying products additionally leads to a relative competitive advantage for local and regional products, as the certification partially excludes them from price competition (Magdelaine, Spiess, & Valceschini, 2008). Farmers’ products are furthermore seen as safer, nutritionally better and of superior quality by consumers. In the Netherlands, consumers perceived these products to involve shorter food chains and less transportation (Kher, et al., 2011). Local products also derive an additional competitive advantage during health crises. They secure the consumer’s confidence, thereby increasing the trustworthiness for sanitary security and offering a substitute for other meats (Magdelaine, Spiess, & Valceschini, 2008).
To summarise, customers’ perception of health risks is influenced by their degree of awareness and the availability of information on specific risks. As customers usually do not actively engage in information seeking behaviour, their risk perception is mainly dependent on media coverage, local developments, general availability of information and their trust in various institutions. Certified and local products help to increase perceived food safety.
22
Economic and Health Issues in the Dutch Poultry Sector
4.1 Bacterial infections Kher et al. (2011) conducted a study including ten consumer focus groups in five countries, investigating consumer perceptions of risks of chemical and microbiological contaminants. Generally, consumers do not worry e.g. about Campylobacter (Bogaardt, et al., 2005). This might be due to unawareness of this specific bacterial infection. In contrast to other types of contaminants, Salmonella was well known and spontaneously mentioned, indicating high levels of familiarity and the relative importance with which customers treat this risk factor.
An additional explanation for the high levels of familiarity with Salmonella would be the frequency in occurrence of this risk, as the study additionally indicates that most consumers are usually aware of those contaminants occurring locally (Kher, et al., 2011). In line with this general awareness of Salmonella, customers evaluated slaughterhouses and food processing facilities including product transport as highly vulnerable parts of the poultry supply chain (Kher, et al., 2011).
4.2 Antibiotic usage Although antibiotics are not allowed for the purpose of growth promotion within the European Union, European customers are afraid of residues within poultry production (Bánáti, 2011). These findings suggest that customers attach special importance to these factors, although they might not be sufficiently informed about current practices and regulations.
4.3 Genetically modified food If consumers do not feel sufficiently informed about innovations, they tend to be worried about new technologies, developments and products, which results in a feeling of rejection (Bánáti, 2011).
A Eurobarometer Survey revealed that many customers within the European Union are worried about genetically modified products in the food chain. 37% of all surveyed customers were fairly worried, 25% even worried about GMOs to a large extent (Eurobarometer, 2006). Therefore, a familiarity of customers with the occurrence of GMO soy in animal feed could have a negative impact on their food safety perception.
23
Economic and Health Issues in the Dutch Poultry Sector
5 Price Development, Profit Margins and Market Power
This section analyses Dutch egg price developments over the last decades and the profit margins earned along the value chain. Based on this, market power relations in the chain are investigated.
5.1 Price Development In the past consumer prices for farm eggs were very constant. Temporary peaks and dips that are probably related to promotional activities are the only exceptions to this (Frank Bunte, 2009). At the farm and wholesaler levels there are greater price dynamics. Wholesale prices and farm prices increase with grain prices, as was noted during the winters of 2007-2008 and 2008-2009 (The Economic Impact of Food Retail on Farmers, Processors and Consumers, 2006). It should also be noted that retailers typically do not transmit changes in wholesale prices to consumers in the short term (OECD, 2006).
For example, consumer prices increased more than the wholesale prices during the winter of 2007-2008. However, the price fall at the wholesale level in 2008 was not passed on to the consumer. Prices were relatively higher in 2003 and 2004, when the country was struck by avian flu. In the 1950s and 60s, the average price of an egg was 8 euro cents (CBS, 2010). Although farmer and wholesaler prices are dynamic, the evidence shows that consumer prices are generally insensitive to price changes at other stages in the supply chain.
Figure 5: Price development in the eggs sector (1980 to 2011 in Euro/kg)
Figure 5 above shows the price development in the eggs sector from 1980 to 2011 in euros. The blue line is the nominal price (euro/ kg), where the red line is the real price (euro/kg) taken in calculation CPI figures. The prices reflect a trend of stability in the prices of chicken eggs over the years until the last decade (BINternet).
Figure 6 shows the relative price development in the eggs sector from 2005 to 2006 in euro between producers, wholesalers and retailers. One can note the contrast between the dynamic producer and wholesaler prices relative to the stable consumer prices (Bunte, 2009).
24
Economic and Health Issues in the Dutch Poultry Sector
Figure 5: Relative price development in the egg sector (2005 to 2006 in euro between producers, wholesalers and retailers)
More recently, the egg price for Dutch consumers has shown greater fluctuations. In February 2010, the average price of eggs was 11% higher than one year ago. This was predominantly caused by increased exports to Germany. In 2010, Dutch exports of consumption eggs to Germany grew by over 2 billion to nearly 7.5 billion. The increased volume of exports has resulted in higher unmet Dutch national demand.
This in turn has led to higher prices and the occasional Dutch consumer facing empty supermarket shelves. The shortage of eggs in Germany was the direct result of a ban on battery cages introduced on 1 January 2010. As battery cages were dismantled, the egg-production process stalled. In the Netherlands and the rest of the European Union, the ban on battery cages started to take effect from 1 January 2012.
5.2 Profit Margins Figure 7 below shows the developing and then average cost price structure between 2005 and 2008 for the egg production. The sections are as follows respectively: Producer purchasing costs, other costs producer, family income producer, wholesaler cost, wholesaler margin, supermarket costs, super market margin.
Figure 6: Development of average margin per link (2005- 2008) Source: "Pricing in the agri-food sector" (NMa, December 2009)
Figure 8 below, shows the costs and margins for the three stages of the value chain: farmers, wholesalers and retailers. Data is averaged over the years 2005-2008 (Bunte, 2009).
25
Economic and Health Issues in the Dutch Poultry Sector
Figure 7: Cost Price Structure (as % of the consumer price)
Figure 7 and 8 show the costs that farmers, wholesalers and retailers incur and the net margins that remain. This was calculated from aggregate data from different suppliers in 2005-2008; although the data is not up to date, it still gives an indication of the relative margins between the chain players. Three observations can be made.
First, the production costs are increasing consistently pressing the farmers more against their already tight profit margin. Secondly, there is a small difference between purchasing prices of supermarkets and the selling prices of packing stations. The reason for this is in part that service providers provide transport between the packing stations and the distribution centres of supermarkets. The third observation is that retailers hold a relatively high profit margin compared to other players in the chain, yet, it is declining due to the tough competition in market.
According to a trend analysis conducted by (Bunta, 2009) using econometric calculation, retail margin was estimated to be 8 euro cents per egg and an absolute wholesaler margin of 2 euro cents per egg. By way of comparison, the average producer price for one egg over the 2005-2008 period came to 30 to 40 % of the consumer price and to 40 to 50 % for the wholesaler. In other words, there is a doubling of the price in the retail trade.
5.3 Pricing Dynamics Eggs are generally supplied at weekly prices. In the past some of the produced eggs were auctioned weekly at the egg auctions of ESB El-service and Evadag. Today the physical trading of eggs occurs only at the Barneveld market. After the egg auctions ended in 1995, the Nederlandse Organisatie van Pluimveehouders (The Netherlands organization of poultry-farmers/NOP) started issuing weekly price quotations for eggs trading. Since 2004 there has also been a weekly quotation for farm eggs (Bunte, 2009).
The weekly quotation is the maximum price that will be paid out to the poultry-farmer. Depending on the scale of the weekly delivery, the quality of the eggs, and the distance relative to the packing station, a discount will be deducted from this price. NOP’s weekly target price is based on the German Weser-EMS quotation for eggs, the Amsterdam wholesaler quotation and market information from packing stations and manufacturers of eggs products. A large proportion of the produced farm eggs are sold based on NOP’s weekly target price. Some poultry- farmers have a fixed-price contract with a packing station. These contracts usually run for the duration of the laying period (14 months) and sometimes there is also a fixed-price contract with a feed price correction.
The wholesale prices are established via tendering. Suppliers can tell the supermarkets the price at which they are willing to deliver. Contracts are concluded for eggs for terms of six months to a full year, under which the price is set for the agreed term. Although the prices are agreed upon in writing for this period, retailers are said to regularly reverse agreements. It is also in the interest of supermarkets to organize the logistical process as cheaply as possible. Logistics is the crucial point in controlling costs in the chain.
26
Economic and Health Issues in the Dutch Poultry Sector
5.4 Market Power Relations Retailers primarily dominate the Dutch Egg value chain. The very fact that retailers sell a large number of products creates an imbalance between them and their suppliers. Retailers have a large number of suppliers, while suppliers usually have a small number of customers. Retail firms have become larger since the recent period of merger and acquisition activity in the 1990s.
Yet, when assessing retail concentration at the selling and the buying side, one should take into account that market delimitation matters. At the buying side, the market is international (or at least European). At the selling side, the market is local (rather than national). Retail price policy in the Netherlands is predominantly national. You pay the same price for a certain product in each Albert Heijn outlet (of a certain type) (OECD, 2006).
According to the data presented earlier, retailers hold the highest profit margin relative to farmers and wholesalers. Moreover, the following practices: payment delays, breach of contract, changes in contract conditions without due notice, the threat to de-list, buyback requirements and fees for various contingencies are other examples that reflect retailers market power over the less concentrated players in the chain. Some farmers try to address this problem by creating their own brand. Branding and marketing strategies can influence farm returns in two ways: through their impact on the creation of value-added and through their impact on farmers’ bargaining power.
Risk bearing is another essential element in market power relations; the FADN (the Farm Accountancy Data Network) records whether livestock producers operate under production contracts or not. Under production contracts farmers do not assume the risk of rearing animals; however, government regulations are still not mature enough in this area leaving large space for retailers to abuse their market power against the less concentrated farmers. Such behaviours hinder innovation within the system and keep the farmers exposed to incidents that may strike the sector; the thing that can have drastic effects on the future of such family business.
This chapter has given an indication of the price dynamics, the division of profit margins and the concentration of power within the poultry sector in the Netherlands. We found that retailers held a strong position within the supply chain; their strong bargaining position allows them to extract rents from other parts of the supply chain. Retailers hold the highest profit margin in the chain, where the family income of the farmers is almost diminishing. Wholesalers and farmers generally shared lower margins, with farmers having the weakest bargaining position.
Risk bearing in contracts between the retailers and the producers is not efficient enough, leaving the farmer experiencing a high risk that does not match with his income level. Horizontal cooperation between producers is essential to ensure balanced profits on the long run.
This situation has led to a concentration of market power at various stages in the supply chain. Even though farmers are required to bear the brunt of the costs of policy changes and animal feed price fluctuations, their inability to cooperate and use collective bargaining has placed them in a risky position where they may find it difficult to innovate and cover costs. The Dutch poultry sector is currently situated in an economic trap where market concentration and the disproportionate bargaining power of other parties along the supply chain are undermining a comprehensive shift to sustainability. The focus on price competition, between and within the different types of farms, has led to a state of affairs where farmers lack incentive to innovate and actively integrate sustainable and animal friendly farming practices. Before these economic issues can be addressed, it is important to consider the public health and animal welfare issues which are also central themes in the poultry sector’s shift to sustainability.
Quote Dutch enriched cage egg farmer: “The egg-shelves in the supermarket are the most profitable. Supermarkets make large margins which, they claim, are necessary to be able to have promotions. Also, the consumer demands more from us farmers as regards to animal well-being, while we do not get anything in return: the prices do not rise, our income does not increase. There is a need for a better division of the margins within the egg sector.”
27
Economic and Health Issues in the Dutch Poultry Sector
6 Major health risks
Having discussed the economic issues, we now turn to the health risks within the poultry sector. After literature research, we decided to make a distinction between major and minor health risks. Bacterial infections and antibiotic resistance are considered the two major risks for public health. This is further justified because these risks can occur in many stages of the supply chain. The minor health risks are discussed in chapter 7.
6.1 Bacterial infections Infections in poultry can be divided into bacterial, viral, protozoan and fungal infections (Janmaat et al, 2010). Bacterial infections form the biggest risk for public health.
Salmonella infection is one of the most important and frequent causes of bacterial food borne illness in humans. The primary channels of transmission are via consumption of chicken meat, direct contact with animals and consumption of insufficiently cooked food (Havelaar et al, 2005). In the Netherlands, around 50.000 people are infected by Salmonella every year. Around 95% of infections are associated with consumption of contaminated food (e.g. meat and eggs) (Foley, et al, 2008). The most common forms of Salmonella in the poultry sector are Salmonella enteritidis and Salmonella typhimurium. An increase of another variant, Salmonella paratyphi B java, has been noted over the last decades. An increase in java from 2% of all isolates before 1996 up to 40% in 2001 is demonstrated (Van Pelt, et al, 2003).
Another important pathogen causing foodborne illness in humans originating from the poultry sector is Campylobacter jejuni. Little information is known about the prevalence and incidence of Campylobacter in the poultry sector. There are no specific measures to prevent Campylobacter infections. It is assumed that the measures against Salmonella are also effective in preventing Campylobacter (Dierenbescherming, 2003). Research by the Dutch consumers association (Consumentenbond) showed that in 2007, 34% of all chicken filets in the supermarket were infected with Campylobacter (Rapport Kipfilet, 2012). Each year, around 80.000 people get infected with Campylobacter and three people die from this infection. Due to its high impact, this subject remains one of the most important but insufficiently researched health risks of the poultry sector. In humans, Salmonella and Campylobacter infections are self-limiting disease, which means that they usually resolve naturally, without medical treatment. However, in case of bacteraemia, antibiotic treatment is needed. Hence, prevention of antibiotic resistance is very important.
Campylobacter can spread through the entire stable in one hour, for Salmonella this takes longer. Dead meat is increasingly colonised with salmonella whereas colonisation with campylobacter decreases. The most important symptom of bacterial infection in humans is diarrhoea. Bacterial transmission can be horizontal or vertical. Horizontal transmission denotes direct contact with other chickens, the air, faeces, animal feed or the environment. Vertical transmission occurs from hens to chicks via the egg or the eggshell.
Changes in food production in recent decades have led to an increase in the incidence of foodborne infections in humans. Different factors contribute to this:
1. Larger farms: higher chicken density leads to a greater risk of infections spreading between farms and people. 2. Food processing: Increased food processing can lead to more infections and extensive spreading of infections from one source to many products. 3. Selective breeding: Intensive farming and broiler selection (see other part) may increase susceptibility to infections. 4. Transportation: Increased transportation of livestock between e.g. farms increases the risk of spreading bacteria.
Besides Salmonella and Campylobacter infections, humans can also be infected by other bacteria originating from poultry. Antibiotic resistance is an increasingly significant problem (see chapter antibiotic resistance). ESBL-strains are found in for example E. coli and Klebsiella Pneumoniae. As a consequence, treatment with regular antibiotics is then impossible. A study of the RIVM shows that one out of five urine or respiratory tract infections in humans is caused by ESBL bacteria which are genetically identical to strains found in chickens (Rapport Kipfilet, 2012).
28
Economic and Health Issues in the Dutch Poultry Sector
6.1.1 Legal and general guidelines
Now that the different types of infections originating from the poultry sector which may affect humans have been discussed, it is of interest to analyse the number of both Dutch national and European legal provisions which provide strict rules with regards to Salmonella in particular. Along with and on the basis of these legal guidelines, there are recommendations to be made in order to possibly improve the protection of public health, animal welfare and more sustainable production.
6.1.2 European legal guidelines: Regulation 2160/2003
From a European legislative perspective, Regulation No. 2160/2003 of the European Parliament and the Council of 17 November 2003 on the control of salmonella and other specified foodborne zoonotic agents is of interest. Its purpose is set out in article 1, which is to ensure that proper and effective measures are taken to detect and control salmonella at all relevant stages of production, processing and distribution, but particularly at the level of primary production (including feed), in order to fully reduce their prevalence. Article 5 goes on to decide that national control programmes must be establishes for each zoonosis separately, having regard to the geographical distribution of zoonoses within each Member State. These national control programmes must cover a period of three consecutive years and must be continuous. In addition, the programme must provide for a detection method and minimum sampling rules, whereby the responsibilities of the competent authorities as well as the food and feed business operators involved must be defined. National control programmes must allow for the progress under their provisions to be evaluated and for the programmes to be amended. Moreover, control measures to be taken pursuant to the detection of zoonoses must be specified, as well as those measure implemented in conformity with Annex II.
Annex II, as well as Annex III, provides the actual substantive minimum content of the national control programmes. After the control programme as mentioned in article 5 has been approved, food business operators must have samples taken and analysed to test for the zoonoses (Annex II part B). In addition, the results of such an analysis must be recorded together with the date and place of the sampling as well as the identification of the flock or herd. Furthermore, immunological testing may not be used if the animals have been vaccinated, unless it has been proven that the vaccine used does not interfere with the testing method applied.
6.1.2.1 Specific Requirements sub-groups
Specific requirements apply concerning flocks of Gallus gallus (Section D of Annex II), where certain additional measures must be taken where the analysis of samples indicates the presence of Salmonella enteritidis or Salmonella typhimurium, or where the competent authority confirms a suspicion of this presence. In such a case, non-incubated eggs from the flock must be destroyed, but they may be used for human consumption if they are treated in a manner that guarantees the elimination of Salmonella in accordance with Community legislation on food hygiene. All birds in the flock must be slaughtered or destroyed so as to reduce the risk of spreading salmonella as much as possible. This slaughtering process must also be carried out in accordance with Community legislation on food hygiene, and the products derived from such birds may be placed on the market for human consumption, and if not for human consumption, the products must be used or disposed of in accordance with Regulation (EC) No. 1774/2002 of 3 October 2002.
Specific rules also exist for flocks of laying hens, after 72 months of entry into force of the Regulation, eggs must not be used for direct human consumption unless they originate from a commercial flock of laying hens subject to a national programme in the sense of article 5 (Annex II section D subsection 1). Where eggs originate from a flock with an unknown health status, with a suspicion of being infected, these may only be used for human consumption if treated in a manner guaranteeing the elimination of all salmonella with public health significance. Also when birds from infected flocks are slaughtered or destroyed, steps must be taken to reduce the risk of spreading zoonoses as far as possible. Once again products derived from such birds may be placed on the market for human consumption; however, this may only occur in accordance with Community law on food hygiene.
Fresh meat must also adhere to specific requirements (onwards from 84 months after entry into force of this Regulation) fresh poultry meat may not be placed on the market for human consumption unless it meets the criterion: “Salmonella: absence in 25 grams”, but this does not apply to fresh poultry meat destined for industrial heat treatment or another treatment to eliminate salmonella in accordance with Community legislation (annex II, section E).
29
Economic and Health Issues in the Dutch Poultry Sector
This Regulation is in fact very important to solving the Salmonella situation since a regulation is by nature legally binding on every Member state which of course includes the Netherlands. It is also important to realize that article 1 paragraph 3 stipulates that the Regulation shall not apply to primary production for private domestic use or the direct supply of small quantities of primary products to the final consumer or to local retail establishments directly supplying the primary products to the final consumer.
6.1.2.2 European legal guidelines: Directive 2003/99 EC
Where the abovementioned Regulation was more concerned with the setting out of a binding minimum standards to be followed within the national control programmes, the Directive 2003/99/EC of the European Parliament and of the Council of 17 November 2003 on the monitoring of zoonoses and zoonotic agents (amending Council Decision 90/424/EEC and repealing Council Directive 92/117/EEC) is by nature is not binding and is rather aimed at setting out a goal which all EU countries must achieve, however the means by which the individual countries achieve this is left up to them. It does, however, also contain measures indicating guidelines with regard to the prevention of salmonella (as designated in Annex I A). Article 4 in particular states that monitoring shall take place at the stages of the food chain most appropriate to the zoonosis concerned (which may be at the level of primary production and/or at other stages of the food chain, including in food and feed. Moreover, the monitoring will take place in accordance with the systems as they exist within the Member States, except where it is found necessary to make the data easier to compile and compare. In this case article 12(2) provides a detailed alternative procedure. This must be read in combination with other Community rules which are laid down in the fields of animal health, food hygiene and communicable human diseases which may provide minimum requirements for monitoring zoonosis.
6.1.3 Dutch National legal and general guidelines
Since the abovementioned European legislation tends to refer to the national control programme and allowing each Member State to establish its own manner of monitoring and combating Salmonella infections (as long as it fulfils certain minimum standards) , it is now of the essence that the Dutch national legal and general guidelines will be discussed.
6.1.3.1 Verordening Hygiënevoorschriften Pluimveeverwerkende industrie (PPE) and Verordening Subsidieverlening terugdringen Salmonella
The “Verordening Hygiënevoorschriften Pluimveeverwerkende industrie”, which contained strict rules, was revoked as recently as 2012. As for the “Regeling preventie, bestrijding en monitoring van besmettelijke dierziekten zoonosen en TSE’s”, this may presently be an applicable legal provision, yet it specifically does not apply to salmonella contaminations in the sector of poultry, merely to Aviaire Influenza and Newcastle Disease (article 3 sub a and b). A Verordening which is applicable today is the “Verordening Subsidie terugdringen Salmonella 2009”. This law, as it dictates in article 2, merely applies to those poultry farmers who are registered in accordance with the “Verordening identificatie en registratie van pluimveebedrijven, broedeieren en levend pluimvee”.
In addition, a subsidy is only provided for covering costs of removing or destroying chickens which have contracted one of several types of Salmonella, and depending on the age of the chicken and the purpose it served in the process (article 3). No subsidies, however, are offered to those cases which concern chickens intended for reproduction which have been imported from a country outside of the European Union. Since this Verordening is specifically designated towards subsidies for the poultry farmers, it goes beyond the scope of this report.
6.1.3.2 Gezondheids- en welzijnswet voor dieren
The “Regeling preventive, bestrijding en montoring van besmettelijke dierziekten” refers to another legal instrument referred to as the “Gezondheids- en welzijnswet voor dieren” which is applicable to the poultry sector (article 15(1) sub b), as well as to all diseases which may be classified as infectious in the sense of article 15(2). This classification only applies if it fits to one of three situations. The first is where the illness can spread at a fast rate, and may cause serious damage to those animal varieties afflicted. In addition, it must be a disease which cannot, or cannot completely be prevented or combated with regular resources. The second is where a treaty or decision of an international organization has designated the condition as an infectious disease. The third situation is where the disease poses a serious threat to public health according to the judgment of the Minister of public health. In accordance with information already provided in this report with regard to salmonella, it may quite readily be designated as an infectious disease. Substantively, article 120a and b of the “Gezondheids- en welzijnswet voor dieren” decide that where a number of articles contained within this law are breached, the Minister concerned may use a “bestuurlijke boete” (administrative fine) in order to punish this behaviour. But this law does not provide
30
Economic and Health Issues in the Dutch Poultry Sector
specific guidelines as to how salmonella in particular should be combated and prevented. An answer to this question might be found in the “Actieplan Salmonella”, to be discussed in the following section.
6.1.3.3 Actieplan Salmonella
The manifestation of these measures is provided in the Dutch “Actieplan Salmonella”, which was the basis for European legislation on the matter. One firm requirement is that corporations, after cleaning and disinfecting, must periodically have hygienograms tasks. Dutch poultry farms are obliged to compile a hygienogram. This obligation is set out in the Regulation on Hygiene Measures and on the Control of Zoonoses in Poultry Farms and Hatcheries (PPE) 2011. Dutch poultry farms must undergo annual checks on their compliance with this regulation.
An additional rule has been added to this since 1 January 2009, which decides that the sample taken will merely be valid for 3 weeks after it is taken from the site, not 3 weeks from the moment at which the result of the test is known. In addition, the frequency at which a hygienogram must be administered depends on the type of poultry farm, whether it is a broiler farm, poultry breeding establishment or poultry breeding farm. In order for this to take place, the corporation itself must contact a recognized HOSOWO-establishment. Depending on the level of the outcome of this hygienogram, different measures need to be taken. For example, if the level is below or equal to 1,5, no action needs to be taken and a new couple may be placed. When the result is between 1,5 and 3, a new hygienogram must be administered at the next point in which the applicable stable has a vacancy period. In the event that the result is higher than 3, the applicable stable must be cleared and disinfected by an IKB PSB company. After the disinfection, a new hygienogram must be administered.
Next to the hygienogram requirements, there are a number of other rules to adhere to such as the mandatory testing of Salmonella at the incoming and outgoing goods inspections by the broiler chicken farmer. Incoming inspections may be performed by using a supplementary sheet, whereas the outgoing may either be administered through a swab test of the manure or through a sample taken using galoshes. In addition, specific requirements exist with regard to cleaning and disinfecting the drink water, as well as the manner of storing the food, and the presence of other animals at the poultry site. Finally when it comes to these rules, the consequences of a Salmonella contamination have changed: since 1 January 2011 the only meat to be distributed must be free of all serotypes of Salmonella.
6.1.3.4 Recommendations concerning guidelines
Despite this elaborate system acting in combination with European and national legislation and guidelines, there are still a number of recommendations which may be made. Considering that the Actieplan Salmonella has been relatively successful due adherence to the strict hygiene rules and other control measures, an area which may be useful to invest more in is consumer awareness. According to figures on the registration of foodborne infections and intoxications by the Dutch Food and Consumer Product Safety Authority and the Centre for Infectious Disease Control 2011, it is still very necessary to make sure the consumer is aware of how to deal with raw produce.
The most important aspect is to pay attention to cross-contamination from raw to cooked food, and on the basis of this study, it has been deduced that consumers are still relatively unaware of these risks (approximately 680,000 people per year in the Netherlands suffer from some type of food poisoning). This could be achieved, for instance, through social media, television broadcasting or national advertising campaigns. Another option would be to include detailed cooking instructions on the final poultry product sold. Thus this method would actually require the augmented awareness of the government (through national advertising campaigns), producers, suppliers and food handlers, but also by consumers, in order to successfully combat the presence of Salmonella.
In addition, links have been found between the presence of poultry dust and the transmission of Salmonella and other airborne diseases. This is because particles often give hitchhiking germs a free ride into broiler lungs and feathers. Advances in agricultural technology have led to the development of a negative electrostatic charge to remove dust from the air, which may drastically hinder the spread of infectious diseases. Before this, chemical sprays were the only effective method of reducing airborne disease transmission, but these have proven to be very costly and damaging to hatching equipment. Moreover, test results of this product have been positive until this point, since the device reduced airborne particles by 99% in 60 seconds in a hatching cabinet with dust levels 40% above normal. Further investment in this area of technology would therefore seem worthwhile and would also aid the combat against Salmonella infections in a dimension which is not tackled through the Dutch Action Plan Salmonella.
31
Economic and Health Issues in the Dutch Poultry Sector
In the following sections more remedies and solutions will be proposed with regards to the prevention of bacterial infections.
6.1.4 Remedies and solutions
In 2000, 144.600 tons of broiler meat was imported to the Netherlands from in and outside of the European Union, this was approximately 56% of the total that was bought by retailers. Furthermore, roughly 10% of the total living broilers sold to Dutch slaughterhouses originate from outside the Netherlands. It is not allowed to (dis)approve the food that comes from EU countries. Hence without more stringent import regulation, it remains challenging to prevent chicken meat infected with bacteria from entering the supply chain (LEI, 2002). We will first discuss some hygiene measures that can be used to prevent/diminish bacterial infections among broilers and laying hens. Secondly we will discuss methods to prevent consumer contact with the bacteria. Finally, we will examine some new research which offers potential future solutions for reducing incidences of bacterial infection among poultry.
6.1.4.1 Hygiene measures
Bacterial infection prevention in the poultry sector starts with hygiene measures which involve all actors in the supply chain, but mainly focus on the farmers and their visitors. According to a report of the LEI (2005), spread of bacterial infections should be mainly controlled by bio security measures for workers/visitors while simultaneously controlling the access of wild birds, rodents and flies to the poultry flock. Hygiene regulation is considered the most important set of measures. However, they are often not used as strictly as they should be (LEI, 2005). Another important problem around these hygiene measures is that it is still unclear if they are really effective in preventing Campylobacter and Salmonella infections (LEI, 2005).
6.1.4.2 Decontamination of meat
To prevent the bacteria that are present in poultry meat from reaching the consumer, a variety of decontamination measures can be used. This includes treating poultry meat with lactic acid, heat or freezing. The treatment with heat is essentially also done by the consumer, while preparing the meat. Therefore it is important that consumers are aware that adequate preparation of chicken meat is necessary to prevent infections (LEI, 2002).
6.1.4.3 Use of Probiotics
Probiotics are living micro-organisms that are said to be beneficial for maintaining a balanced and health intestinal flora in the large intestine. More research is needed in this area, especially since the potential risks of probiotic use are unclear, and could include increased antibiotic resistance (RIVM, 2012). According to Reid and Friendship (2002) certain strains of probiotics are able to inhibit the growth of pathogens and thereby prevent diseases. If probiotics are used directly after hatching, these probiotic organisms could potentially colonize the gut of the chickens and thereby ideally increase the difficulty for harmful organisms to colonize the gut as well. The idea is that this could prevent infections of the gut in chicken by rearranging the energy to the immune system, without changing the average gain in body weight (Reid and Friendship, 2002; Qiu et al., 2012). However, since there are still many aspects unclear about the effectiveness and possible negative effects of probiotics, caution should be advised.
6.1.4.4 Logistically slaughtering
Use of logistical slaughtering is specifically mentioned in the context of campylobacter infections. All chickens that are campylobacter negative are slaughtered before the chickens that are positive for campylobacter. This could prevent the transmission of bacteria during the slaughter process. To perform this logistically slaughtering process, it is necessary to have reliable rapid testing methods to detect campylobacter, for example PCR of testing with the use of a dipstick (LEI, 2005). These tests still take 1-2 days, which is quite time consuming and therefore not ideal (LEI, 2002).
6.1.4.5 Bacterial DNA
Researchers are looking at new possibilities to protect chickens against certain pathogens. He, Lowry, Swaggerty, Ferro and Kogut (2005) researched the possibility to stimulate the blood cells of chicken that protect them against pathogens by introducing bacterial DNA to neonatal chickens. They found a significant reduction of organ invasion by Salmonella enteritidis in chickens treated with this bacterial DNA. They also measured a reduced mortality rate when infections did occur. This illustrates stimulation of innate immunity and possible an improved resistance against pathogens in chickens; however, more research is necessary (He et al., 2005).
32
Economic and Health Issues in the Dutch Poultry Sector
6.2 Antibiotics
Figure 8: Supply chain where Antibiotics occur
6.2.1 Antibiotics in the Netherlands
Traditionally, the prescription of antibiotics for humans in the Netherlands has been very low compared to other European countries. However, this is in stark contrast with the level of antibiotics used for farm animals in the Netherlands (RIVM, 2012). According to Grave, Torren-Edo and Mackay (2010) who compared the use of antibiotics between ten European countries, the mg/kg used was highest in the Netherlands. The Netherlands were the fourth highest when the poultry sector was specifically reviewed. In the period from 1999 to 2007 there was an 83% increase in the total veterinary use of antibiotics (Mevius, 2012). This high level of antibiotic use for farm animals can be problematic as this can lead to resistance of animal bacteria against certain antibiotics. These resistant bacteria can be transferred to humans, which could make antibiotics in humans less effective (RIVM, 2012). Resistance in E. coli and Enterococcus species are used as indicator for resistance patterns among farm animals. In recent years there has been an increase in resistant E. coli, especially among broilers; up to 17.9% of the broilers now carry these resistant bacteria. Especially the bacteria that produce ESBL are a threat to public health (SWAB, 2011).
The best known route to contract these resistant bacteria is through the consumption of infected meat. However, another possible route of infection is through contact with contaminated surface water in the neighbourhood of animal farms. This could possibly also form an environmental threat to human public health (Blaak, Schets, Italiaander, Schmitt, & de Roda Husman, 2010).
6.2.2 Task Force against antibiotics
Both the Dutch ‘Gezondheidsraad’ (Health Council) and the European Food Safety Authority (EFSA) advise a reduction in the use of antibiotics in farm animals (SWAB, 2011). Antibiotics that are the last resort for ESBL-infections in humans should be reserved for that purpose and should not be used in farm animals. New antibiotics and antibiotics that currently are not used in veterinary medicine are also reserved for treatment of infections in humans (SWAB, 2011). In 2008 the broiler sector joined the taskforce ‘Antibioticaresistentie Veehouderij’ to minimise antibiotic use and thereby reduce the incidence levels of antibiotic resistant bacteria. The first step in reducing antibiotic use has been to increase transparency in the broiler sector with regard to the actual use of antibiotics (PPE, 2010).
The Authority of Animal Medicine was established in 2010 to be an independent measurer and supervisor of antibiotic use (SWAB, 2011). This will provide insight into which veterinarians prescribe the most antibiotics and which farms use the most, making it possible to compare farms and veterinarians. The goal is to stimulate the parties involved to make deliberate and sound decisions about the use of antibiotics. Furthermore, the Authority serves as a control mechanism; the farms that use a lot of antibiotics will be subject to measures which aim to reduce their use. The goal is to reduce usage by 20% in 2011 and 50% in 2013 (Convenantspartners Antibioticaresistentie Dierhouderij, 2010). Currently the professional association of veterinarians is developing guidelines regarding antibiotic use, which should help inform farmers and reduce the use of antibiotics (SWAB, 2011).
6.2.3 Growth Promotion
There are several reasons why antibiotics could be used in the poultry sector. As in humans it can be used to treat and prevent infection. However, in the poultry sector there is an additional function for antibiotics, namely to promote chicken growth (Aarestrup, 2012). The first EU bans against these growth promoting antibiotics occurred in 1997 against avoparcin specifically, and it expanded to all antibiotics used for growth promotion in 1999. However, these antibiotics are still used in North-America and Australia (Casewell, Friis, Marco McMullin & Phillips, 2003).
33
Economic and Health Issues in the Dutch Poultry Sector
Proponents of the ban against growth-promoting antibiotics fear that the developing bacterial resistance in animals against these antibiotics will affect human health as well. On the other hand, opponents of the ban state that there is little evidence that banning certain antibiotics diminishes bacterial resistance. Furthermore they claim that the ban on growth-promoting antibiotics results in higher use of other antibiotics (for preventive/therapeutic use that have growth promoting effects as well). These preventive and therapeutic antibiotics are more used against human diseases as well, and thereby resistance against these antibiotics could potentially cause major problems (Hammerum et al., 2007; Phillips, 2007).
In 2002 the Court of First Instance of the European Communities in Luxembourg stated that although controversy remained among scientific specialists about the banning of growth-promoting antibiotics, under the ‘Precautionary Principle’ the ban should be continued (Phillips, 2007). It remains a difficult subject, since there are often conflicts of interest involved, and bans could have adverse consequences for various parties involved (Aarestrup, 2012).
6.2.4 Example of effective measures
Denmark is a country that is often mentioned as a best practice example of reducing the use of antibiotics among farm animals. The reforms that they implemented included: banning antibiotics used for growth promotion, construction of a comprehensive surveillance system to track and target overuse, and cross-sector collaboration between farmers, researchers and authorities. Another important aspect of their reforms was that veterinarians were no longer allowed to profit from the sale of drugs to farmers. Since the 1960s, these measures have resulted in a 60% drop in antibiotic use per kilogram of produced livestock (Aarestrup, 2012).
6.2.5 Withholding period
The literature notes that drugs such as antibiotics have the potential to form residuals in meat and/or eggs. As such, there is a necessary delay after drug administration known as a withholding period during which chickens cannot be killed and eggs cannot be collected. This prevents human consumption of meat and eggs containing antibiotic residuals. The withholding periods vary per drug (Janmaat et al, 2010).
6.3 Legislation Considering the potential effects which antibiotics may have on the consumers, the legislation regulating the use of such drugs may shed some light on the current state of affairs, both a European as well as national perspective.
6.3.1 European perspective
Originally, national regulations of each member state differed with regards to their basic principles, until Council Directive 70/524 published on the 14th of December 1970 procured that only those additives which are named in this Directive were allowed to be contained in the feed of poultry, and only subject to those requirements as set out therein. In 2003, Directive 70/524 was replaced with Regulation 1831/2003, which was intended to simplify the existing legislation concerning feed additives, and sets out rules with regards to the authorization, supervision and labelling of feed additives. On the basis of article 3 of this Regulation, the only additives to be used or processed are those which are covered by and authorization granted in accordance with the Regulation, and the specific requirements as contained in Annex IV are met, in addition to conforming to the conditions on labelling as set out in the Regulation are met. Article 5(4) of the Regulation, however, ensures that no other antibiotic than coccidiostats or histomonostats shall be authorized as feed additives.
With regards to these types of antibiotics, a special report was developed by the Commission for the Council and European Parliament. In this report, it has been mentioned that countries such as Sweden have used monitoring systems to ascertain whether the use of these specific antibiotics leads to greater resistance against antibiotics in general. No such signs have been detected as of yet, however, it may be useful to establish some alternative measures of dealing with coccoidiostatica and histomonostatica, such as appropriate vaccinations. Some of these with regards to coccidiostatica have already been developed as early as 1992, but these are very specific as to kind and species, and only one of these is allowed throughout Europe. Thus, in order to be able to provide alternate treatments which could possibly create products aimed at building less resistance to antibiotics in future.
With regards to the re-authorization and revocation of authorizations there are also a number of provisions contained in article 13 and 14 of the Regulation. Re-authorization occurs every 10 years, and needs to be applied for one year before the end of the 10 year period. Some might consider that, in a market where new technologies are
34
Economic and Health Issues in the Dutch Poultry Sector
developed at all times which may be less harmful or more effective, this period is in fact too long. One option might then be to refer to the revocation article, which may be achieved through article 22(2), in the case that requirements have not been met. However, penalties to be administered shall be laid down by the Member States, and these rules must be notified to the Commission, but must merely take into account that they are proportional, effective and dissuasive.
6.3.2 Dutch national perspective
The Dutch government has asserted that it has plans to reduce the use of antibiotics in the poultry sector by 50%. This tackling of this issue was started in the broiler sector, where several guidelines were absorbed in the IKB Kip, the laying-hen sector started dealing with this approach in 2011 when IKB Ei was changed. According to these plans, the poultry farmer must conform to certain requirements. From January 2011 onwards, the registration of prescribed antibiotics by veterinarians is required, before this time the registration took place on a voluntary basis. Subsequently, the poultry farmer, in cooperation with the veterinarian, must develop a company-health plan as well as a company-treatment plan. Finally, the poultry farmer must allow checks to be performed to assure compliance with these rules.
According to statistics attained in 2012, the use of antibiotics has declined by 36% since 2009. Yet other methods may be used, by taking advantage of the registration requirement with veterinarians. For instance, alternative products to antibiotics may be administered, such as probiotics, prebiotics and bacteriophages, bacteriocins or even phytotherapeutics (as found in plants, plant extracts and essential oils of e.g. ginger, garlic and sage), which have all been proven to attack bacteria. In order to do so, of course, it is necessary to regulate the point at which these alternatives may be used. Bacteriophages, for instance, would not be an effective alternative in poultry grow-out facilities since faecal shedding would in all probability lead to resistance, yet it would be an effective product in poultry processing plants if they are applied to the carcass once.
Another recommendation would be to make certain that poultry farmers and others involved in the process know exactly which clinical signs to look for in their flock, and also take the time at regular intervals to observe their flock in order to ascertain disease before it spreads. Certain indicators are to be evaluated once the flock has settled down, such as abnormal respiratory sounds can be heard, ranging from high-pitched 'squeaks' to cough-like sounds or rattling sounds which may indicate mildly ill animals. Other behavioural aspects may also be recorded, such as the level of egg production, water consumption, as well as mortality and growth rate. Making sure poultry farmers are adequately educated on these signs may be of the essence since early detection of a problem is key to the reduction of the economic impact as well as the overall use of antibiotics which may then be minimized. Compliance to such an education could in fact also be regulated, where specific guidelines could be made concerning signs of illness, whereby neglect of reacting to such signs could result in claims of negligence on the side of the poultry farmer.
6.4 Remedies and solutions In the previous section a variety of measures were mentioned that have the potential to prevent bacterial infections, and thereby also decrease the use of therapeutic antibiotics in the poultry sector. This section will start by providing some alternatives to growth promoting antibiotics. According to Hughes and Heritage (2004) the need for growth promoters decreases when the living environment of the animal is better. Growth promoters add the most value when animals live in the worst conditions. This is because poor living conditions are associated with poor animal health. Later in this report we will provide options that improve the overall living conditions of the broilers and laying hens. These recommendations improve chicken health and consequently reduce the need for antibiotics. Effective measures to diminish the use of antibiotics constitute a combination of improved living conditions and agreements made on an (inter)national level, with an appropriate control mechanism in place. Therefore we will end this section by stating the elements that are essential to an (inter)national agreement.
6.4.1 Alternatives to growth promoting antibiotics
Since 1999 use of all growth promoting antibiotics has been prohibited in the EU, and researchers have been looking for alternatives that promote growth in chickens. Hashemi and Davoodi (2011) have been looking at herbal plants and their derivatives as a possible option to promote growth in animals. This includes a wide scope of herbs and spices and their derivatives. Their effect as antioxidant, antimicrobial agent and as a stimulator of the immune system has been shown in vitro; however, in vivo evidence is limited. A positive effect on the micro flora of the gut in chickens could improve health and growth performance. However, future research is needed (Hashemi & Davoodi, 2011).
35
Economic and Health Issues in the Dutch Poultry Sector
Hughes and Heritage (2004) mention probiotics and adding enzymes (that improve feed conversion efficiency) to the animal feed as a possible option to promote growth. However, as mentioned previously, caution is necessary in applying probiotics, since they could have unwanted side-effects.
6.4.2 (Inter)national agreements
We have noted that Denmark has been successful in reducing the use of antibiotics in farm animals. There are also success stories that come from the Netherlands itself; the pig industry has been successful in reducing the usage of antibiotics (SWAB, 2011). The poultry sector is still struggling to incorporate the necessary changes, partly because the poultry chain is much more complex and the economic gain that occurs due to antibiotic use is much larger.
The main challenge is to agree upon who in the supply chain is going to pay for the necessary changes (SWAB, 2011); the economic analysis in Chapter 5 and the division of margins will need to be evaluated fairly when deciding how the additional expense should be shared among the relevant parties in the supply chain. We recommend the creation of an agreement concerning this at a national level. Furthermore, given the interconnectedness of the Dutch poultry sector and the European Union, we also stress the importance of an international (EU) level agreement.
On top of that a cultural change is necessary; from treatment to prevention. Denmark’s transition shows that to make this cultural change, an adequate control mechanism should be in place and measures should be taken against those who overuse antibiotics (Aarestrup, 2012).
Lastly there should be consensus about the living conditions of broilers and laying hens that are most favourable. According to SWAB an analysis of the antibiotic use is helpful: why are they necessary, can the disease be prevented (e.g. changing climate in the stables)? New developments in stable designs can be helpful in improving the living conditions and overall hygiene. This in turn will decrease the incidence of bacterial infections (SWAB, 2011).
36
Economic and Health Issues in the Dutch Poultry Sector
7 Minor health issues
Besides the major health risks of bacterial infections and antibiotic use, there are also health risks occurring in the poultry sector that can be considered minor risks. These risks often only affect a smaller population and their effects to human health are often still unclear. Minor health risks include fungi and ammonia, both present in poultry litter, viruses and the (over) selection of broilers. Further research in these areas remains important.
7.1 Worms and fungi
Figure 9 Supply Chain where Worms and fungi occur
Chickens, especially those which are allowed outdoors, are also at risk of infection by worms. There are good agents against these worms without disadvantages or dangers for human health (Dierenbescherming, 2003). One of the less known health risks of poultry farms is exposure to fungi. Fungi can have a negative effect on human health through three mechanisms:
1. Immune response to fungi, which can cause allergy or hypersensitivity pneumonitis. 2. Infection by fungal organisms. 3. By-products of mould (e.g. mycotoxins) can have toxic/irritant effects.
The primary source of fungal contamination is poultry litter, but little research has been done on this topic. A more detailed evaluation of the risks posed by this contamination is necessary to accurately assess the health risks for exposed workers, and also to assess the public health risks since the spreading of poultry litter in agricultural fields is a potential threat to public health. Since litter is dry, it can generate particles that can spread through the air and subsequently can be inhaled by humans. Besides the uncertainty to what extent this contaminated litter can affect human health, there is also uncertainty regarding the scope of the problem (Viegas, et al., 2012).
7.2 Ammonia Besides fungi, ammonia can also be found in the poultry litter. Ammonia develops through a chemical reaction of poultry faeces and urea (present in urine). High ammonia levels in the stables can be harmful to chickens and farm workers. It is mainly present in poultry houses where the same litter is used for successive flocks. Good ventilation and litter management are recommended to prevent damage to the chickens’ eyes and respiratory systems. In addition to these harmful effects, high ammonia levels also reduce chicken growth.
7.3 Viruses
Figure 10: Supply Chain where Viruses occur
37
Economic and Health Issues in the Dutch Poultry Sector
Diseases like bird flu can be transported by people travelling between different animal colonies and by animal transport. Airborne transmission of bird flu plays a very small role in this. Since 2003 there has been an increase of avian influenza (bird flu). This is probably due to stricter monitoring and not necessarily because of increasing incidence levels. Viruses can mutate quickly and as such present a potentially severe danger to human health. Different measures can be used to prevent bird flu (PPE, Aviaire Influenza – Risico’s en maatregelen, 2012).
7.4 Broiler selection On a global scale there is a strong competition in the market for broilers; there are four companies that supply the whole world of chicks for the production of meat. Due to the strong competition, breeding companies have been selecting chicks for years to produce animals that grow very fast and have especially a lot of breast meat. Currently the appropriate weight (about 2.2 kg) is reached within six weeks, and this process is still shortening by about one day per year. This breeding and selection process has caused severe health and welfare problems for the chicks (Dierenbescherming, 2003). These diseases include chronic pain, tibial dyschondroplasia and often many wounds and diseases affecting the chickens’ feet. The latter is caused by a combination of too heavy chickens and damp bedding. It can lead to an increase in the use of antibiotics and would therefore be less healthy for humans. The indirect effect of broiler selection on human health has been described here, however a direct correlation between breeding and human/public health was not found.
Currently the major breeds of breeding hens have reached their biological maximum, where they produce around one egg a day. Because there is little room for improvement in this area, breeding companies are now focusing on producing chickens that are better adapted to certain environmental circumstances (selection for specific temperatures and against feather pecking and cannibalism, etc.). The breeding practices that are currently performed by the four major companies have led to a lower biodiversity, which could increase susceptibility to diseases. It is important that genetic diversity remains conserved, since diverse characteristics may be necessary in the future to adapt chickens to a range of circumstances and possible future diseases (Sasidhar, 2006).
38
Economic and Health Issues in the Dutch Poultry Sector
8 Animal Feed: health risks, quality control and legal regulations
In addition to the major and minor health risks that were previously mentioned, animal feed is another potential source for health risks for humans. The use of animal proteins in animal feed is currently banned, but has caused serious health problems for humans in the past. Currently, genetically modified crops are used frequently in the Dutch poultry sector; however, there is still discussion about the safety of these crops. Animal feed could also be a source of dioxin, and therefore strict control mechanisms are important. These topics will be discussed in more detail below.
8.1 Health risks regarding animal feed
8.1.1 Animal proteins
In the past, animal proteins were often used as a raw material for animal food. The first of two reasons to use animal proteins in animal food is that it is high in proteins and therefore contains essential amino acids. Besides that, it also reduced the residuals of the meat producing industry. Therefore it is a cheap option to provide these micronutrients to chickens. However, in 2000 the BSE (Bovine Spongiform Encephalopathy) crisis hit the beef industry. This crisis led to the European Union prohibiting the use of animal proteins in animal food to prevent further spread of BSE.
Recently, the European Commission has notified that they may want to make the rules more flexible. They are considering allowing animal proteins in animal food, provided that they are derived from non-ruminants and will not harm food safety and public health (MVO-verslag, 2010).
8.1.2 Genetically modified food
Currently, the Dutch poultry sector is heavily dependent on imported materials for animal food. This is partly soya, which is more and more derived from genetically modified crops. Once genetically modified crops are consumed somewhere in the food chain, it will eventually reach the consumer (humans), so humans are indirectly exposed to genetically modified food by means of feed for the meat production. Studies that have been conducted so far indicate that many genetically modified foods have some toxic effects. Therefore it is necessary to perform further studies in this field, to really ensure safety. If there are no adequate safety studies performed, it cannot be concluded that genetically modified food is safe (Dona & Arvanitoyannis, 2009). There are currently strict requirements concerning these modified crops, to ensure safety for humans, animals and the environment (MVO-verslag, 2010).
8.2 Dioxin
Figure 11: Supply Chain where Dioxin occur
In the past, dioxin has been found in poultry meat and eggs. Dioxins are highly toxic and they can harm human health by causing reproductive and developmental problems, damage the immune system, interfere with hormones and they can also be carcinogenic. All humans have background exposure to dioxin, which probably does not affect human health (WHO, 2010). However, in larger quantities, it is highly toxic. Dioxin in poultry products are most often due to contaminated animal feed, with illegally disposed PCB-based waste industrial oil (WHO, 2010). The individual packaging stations are united in the Algemene Nederlandse Vereniging van Eierhandelaren (ANEVEI). Precise administration and labelling with central registration of eggs is performed in order to have a good view on the supply and dispatch. In case of an infection for example, infected eggs can easily be identified and withdrawn. The IKB intensively regulates eggs for dioxin levels and takes random egg samples for this purpose.
39
Economic and Health Issues in the Dutch Poultry Sector
8.3 Quality control In the Dutch poultry sector there are systems in place to ensure quality within the entire poultry chain. Starting mid- 2011, these Dutch quality systems will work together with German quality systems to impose additional animal feed safety requirements. These requirements will include production process transparency and an end product quality guarantee, evaluating numerous forms of pollution (biological, chemical) (MVO-verslag, 2010).
8.4 Legal and general guidelines In addition to banning the use of animal proteins in animal feed following the BSE crisis, the European Commission adopted other precautionary measures. One of these was a complete and immediately effective ban of meat and bone meal (MBM) within the entire EU starting January 1st 2001. Prior to this, in July 1994, the EU banned MBM from mammals for use in ruminant animal feed (Commission Regulation (EC) No 99/2001). This original ban was extended to include prohibition on the use of processed animal proteins (PAP) in feed for nearly all farmed animals, including chickens (European Commission, 2010, p. 6; Commission Regulation (EC) NO 1234/2003). Overall, this Regulation prohibits the following nutrients from being used in animal feed for nearly all farmed animals:
- processed animal protein - gelatine of ruminant origin - blood products - hydrolysed protein - dicalcium phosphate and tricalcium phosphate of animal origin - foodstuffs containing the proteins listed in points (a) to (e)
The only exception being animals kept for fur production (Annex IV to Article 7(1) of Regulation 1234/2003 amending Regulation 99/2001). The prohibition was initially planned to last only until the BSE outbreak was contained. However, the Commission has extended its applicability until further notice (European Commission, 2010). Currently allowed for poultry feed are fishmeal, blood products from non-ruminants, di- and tricalcium phosphates of animal origin, hydrolysed proteins from non-ruminant hides and skins, non-ruminant gelatine, egg, egg products, milk, milk products and colostrums. Any proteins not mentioned on the prohibited list above are also allowed (European Commission, 2010, p.6).
However, there are considerations to reintroduce PAP into animal feed. In its ‘TSE Road map 2’, its strategy paper for TSEs for 2010-2015, the European Commission outlines that, since the transmission risk of BSE from ruminants to non-ruminants is very low, “a lifting on the ban on the use of PAP from non-ruminants in non-ruminant feed could be considered, but without lifting the existing prohibition on intra-species recycling” (European Commission, 2010, p.7). Thus, there is a possibility of pig MBM being fed to poultry and vice versa. The Commission also notes that this might relieve the price pressure within the EU which is currently dependent on other sources of protein. However, the report is carefully formulated and makes no promises. It underlines that this would depend on the availability of “validated analytical techniques to determine the species origin of PAP” (European Commission, p.7). Only with the relevant analytical techniques and, more critically, control mechanisms for the channelling of PAP from different species would such a change be possible. Lastly, it also remains to be seen whether a re-introduction is worth it at all since from an economic perspective the costs to fulfil these conditions might be critically high (European Commission, p.8).
One of the exceptions is worth looking into. Fishmeal provides some essential amino acids which improve the growth rate of poultry when added to their nutrition (Miles & Jacob). It also contains important minerals such as calcium and phosphorus and linoleic acid, an essential fatty acid which is a source of linolenic, another essential fatty acid (ibid.). Using fishmeal to supplement laying hen and broiler diets can increase the amount of omega-3- fatty acid in eggs and meat respectively (ibid.). However, aside sustainability considerations such as declining fish populations and over-fishing, there are other risks to fishmeal supplements in animal feed.
The Scientific Committee on Animal Nutrition (SCAN) of the European Commission finds alarming levels of dioxins in fishmeal and oil. Thus, while fish meal seems to present a valuable alternative to MBM from mammals, it bears other risks to the consumers. In its report, the SCAN researches how harmful dioxins enter the food chain through animal feed and end up on consumer plates. The report makes two relevant findings for this discussion. First, while it might appear to be more sustainable to buy fish meal from European waters, the latter bears a much higher concentration in contamination levels than fish meal originating from the (South) Pacific (SCAN, p.44). Over a long time-period and found equally in all measurements, concentration levels of dioxins in fish meal and oil from
40
Economic and Health Issues in the Dutch Poultry Sector
European waters are 8 times higher than those from the (South) Pacific (ibid.). Second, the report finds that “Considering the rate of inclusion of “When I wanted to expand my feed materials combined with their impact (in percentage) on the total farm with barn eggs I was not contamination of the diets, feed materials of fish origin (of European able to get funding for origin) and animal fat represent the major contributors to diet’s traditional stables because my contamination” (p.62). Even low quantities of the supplements (for farm was close to an ecological example 5-8%), are responsible to around a third of the diet main structure. However, contamination. And “when these feed materials are used together, their switching to an organic farm contribution can represent more than 50% of the contamination” (ibid.). was possible and getting the permit was very easy. In the
8.5 Remedies beginning, I didn’t like becoming Since 2002 the use of animal proteins in animal food is prohibited. Since an organic farmer, but I wanted then the farmers have relied heavily on (genetically modified) soya to feed to continue farming and had no their animals (MVO-verslag, 2010). According to a study performed by the choice. I stopped with holding Wageningen University (2012), it would be feasible to use insects as a pigs and cows and continued protein source in pig and poultry feed. However, there are still many with organic chickens only. So, I hurdles to traverse. Insects have to be available on a large scale with a low did not plan to become a cost price and EU legislation needs to be altered, since it currently prohibits biological poultry farmer, but the use of insects in animal feed. Furthermore, more research is needed to kind of started with it by gain insight in the nutritional value of insects and to protect public health accident. I made this decision for (WUR, 2012). economical purpose only, but nowadays it has become a lifestyle. Many fellow farmers think organic farms are more vulnerable to diseases compared with other farms. Some farmers even think all diseases come from organic poultry farms. However, my chickens do not have more diseases compared to chickens on free-range farms. Since the price for free-range eggs increased my fellow free- range egg farmers do not complain about the so-called potential dangers of organic farms anymore. Antibiotics are not used on my farm and the vaccination programme is the same as for other chickens. A control on Salmonella is performed every three months, blood is taken to test on bird flu and a test for worms is performed every now and then. Last year, I had a loss of 6% due to diseases.’’ (Dutch organic egg farmer)
41
Economic and Health Issues in the Dutch Poultry Sector
9 Overall Remedies and Sustainability within the poultry meat sector
As the consumption of poultry meat has heavily increased in previous years, public and private stakeholders, especially poultry farmers, are increasingly concerned about the future of poultry production (Jez, Beaumont, & Magdelaine, 2010).
Especially the demand for processed products has increased during previous years, a demand which is often covered by imports from non-EU countries like Brazil or Thailand (Jez, Beaumont, & Magdelaine, 2010). This development has had different effects on the poultry meat production in various EU countries. One major implication of this development is the need for either the introduction of new legislation securing the survival of the European poultry industry, or for an emphasis and increased consumer awareness of non-price related criteria of poultry meat, such as the quality and freshness of locally produced products (Jez, Beaumont, & Magdelaine, 2010).
In line with the increased interest of consumers in certified and local production methods pointed out in “Public Opinion” section of this report, a transition towards more sustainable methods of farming is necessary. This is important not only in order to satisfy customer demands and decrease risks for public health, but also in order to remain profitable. However, current poultry farming methods are heavily dependent on industrial agriculture. Many current agricultural practices harm ecosystems and induce health and water purification costs (Tilman, Cassman, Matson, Naylor, & Polasky, 2002). Still, the costs of these environmental damages are not considered in the price of meat.
The high density of animals in industrial poultry farms further intensifies the health risks pointed out in the previous sections of this report. Pesticides in food production create health risks for workers and consumers (Horrigan, Lawrence, & Walker, 2002). Therefore, current methods in poultry farming need to be reconsidered in order to promote long-term sustainability.
To choose the right focus for future developments and to identify future needs and obstacles in poultry farming, scenario building can be a helpful tool to sort out future directions and options. As an example from France, the technical institute (ITAVI) and research institute (INRA) conducted stakeholder interviews and panel discussions with poultry experts (Jez, Beaumont, & Magdelaine, 2010). The outcome of this process was the development of four future scenarios for the poultry industry in 2025. In the process, the evolution of possible driving forces (consumption, public policies, industrial strategies and purchase criteria) was forecasted in different directions. Strikingly, three of the four outcome scenarios implied sustainable farming developments, protection of national production or increased food security, reinforcing the importance of these aspects.
Only one scenario (“Scenario 1: The poultry industry caught up in globalization”) pointed at an open market solution for future agricultural development. Another striking aspect was that all scenarios did not imply an increase in future production levels in France, although other sources point towards a doubling of global food demand within the next 50 years (Tilman, Cassman, Matson, Naylor, & Polasky, 2002). This fact is mainly reasoned with a predicted change in people’s diet over the next years.
While scenario 2 (“The poultry industry acquires a European dimension”) predicts a standardised and price-focused European market led by legislation and companies at the European level, scenario 3 (“The poultry sector boosted by sustainable development”) predicts a competitive advantage for poultry products within the European Union due to increased product quality meeting the high expectations of customers, which developed mainly through mass marketing.
The fourth scenario (“The poultry sector joins the global food regulation”) gives a more negative prediction, as climate changes and health epidemics are said to have threatened food supply and distribution mechanisms, and global organisations are then necessary in order to secure food supply and quality. In this scenario sustainable production methods are obligatory in order to protect resources and sustain production levels.
Scenario building and further multidisciplinary research on future aspects of poultry farming is seen as a common challenge throughout the literature.
42
Economic and Health Issues in the Dutch Poultry Sector
Necessities are defined as characterizing the quality of sustainable poultry production in order to increase competitiveness (Jez, Beaumont & Magdelaine, 2010), involving stakeholders in discussions with consumers and regional inhabitants (Stobbelaar & Hendriks, 2011), defining new incentives and policies to make sure that demands can be met without negatively affecting environmental probity and public health (Tilman, Cassman, Matson, Naylor, & Polasky, 2002) and the long-term integration of sustainable agriculture, also in the connection between producers and consumers, leading to additional food safety and credibility (Horrigan, Lawrence & Walker, 2002).
In that sense, a very important aspect of future sustainable development is to take public perceptions into account. The situation of the poultry meat production proves to be rather different to that of the egg production. Also here the increasing wealth levels of consumers lead to the need of more sustainability in the egg production sector. For this reason the following section identifies relevant consumer opinions and elaborates on methods that can make the egg production sector more sustainable.
43
Economic and Health Issues in the Dutch Poultry Sector
10 A more sustainable egg sector in the Netherlands
This chapter analyses the sustainability of the egg production situation following the supply chain approach and paying special attention to consumer opinions. In order to systematically evaluate the different future options for egg production, we first give a short overview over the current situation of the different steps in the poultry production chain regarding sustainability issues. Following this overview we present a selection of practical innovations which can provide a higher sustainable profile for poultry farming; some of these improvements are already in place. Subsequently, we describe consumer awareness and public opinion in more detail. This analysis focuses on table eggs, as these products allow consumers to draw the most direct relation to chickens and their treatment. The public’s awareness of the treatment of those chicken that produce eggs for alternate consumption is described in a separate section. Related problems and solutions are also discussed in this context.
10.1 Relevance of public’s perception of egg sector innovations The egg sector is facing a number of changes that lead to contradictory challenges for producers. On the one hand within the last 10 years there has been a significant increase in consumption and demand for eggs and egg products (Caspari et al., 2010). The graph below shows that especially between 2003 and 2004 a great increase in egg production levels could be seen. In the following years the egg production stayed constant at the high rate of 7,000,000 tons. The self-sufficiency levels of the EU member states on the other hand showed a sharp decrease between 2000 and 2002. Even though they increased again afterwards, they never again reached the levels they were at in 2000 and even decreased further after 2008. All in all the demand for eggs that has grown faster than its production since 2001, leading to decreased self-sufficiency among EU member states (Caspari et al., 2010).
Figure 12: Egg production ('000 tonnes) and self-sufficiency levels (%) in the EU, 1998-2009. Source: European Commission, retrieved from Caspari et al. (2010)
The rising demand can, amongst other factors, be explained with more meals eaten out of home (International Egg Commission, 2012). In order to provide a sufficient amount of eggs, egg producers are forced to find efficiency- enhancing production methods. Contemporaneously, there is a visible trend towards higher health and animal welfare expectations, which relates to rising income, education and health levels in developed countries (World Bank, 2012). This leads to a surge in demand for high-quality eggs and egg products and has also raised public support for more ethical treatment of chickens. Consequently, the Netherlands, being Europe’s largest egg exporting country (International Egg Commission, 2012), faces a row of challenges.
44
Economic and Health Issues in the Dutch Poultry Sector
Consumer interest in higher animal welfare and food quality is one factor that facilitates changes towards alternative egg production methods. One core requirement for this to happen is the development of more transparency within the sector that allows consumers to make informed purchasing decisions.
This chapters’ focus on the public and its standpoint is very important as consumers hold the power to accept or to reject poultry products. Therefore the public’s opinion should be given careful consideration. Following the different steps of the egg production chain leads to a well-structured approach and allows clear assignment of consumer views to the different production areas to which they belong. The findings will not only reveal the public’s perception of current and potential future production methods and solutions, but will also show in which points more consumer awareness is required. Consequently a number of viable solutions for some of the problems faced by the egg production sector will be provided.
10.2 Agriculture production and chicken feed
10.2.1 Situation in agriculture sector that is relevant for chicken feed production
Global warming in general and related catastrophes like droughts, hurricanes and earthquakes have increased over the recent years, causing problems for farmers (Agbroko & Ruona, 2012). For example, current developments to decrease emissions related to global warming have led to increased research into and use of bio fuels, which are, amongst others made of corn and other agriculture-based commodities. As a consequence, substantial price increases for agricultural products, which affect the price of chicken feed in an upwards direction (Tuff, 2012) can be seen. Furthermore, during drought years cereals grow poorly and are therefore lower in quality (Poultryhub, 2012). The US corn and soya bean crop market has for example suffered considerably from droughts in 2012, which led to increased prices of animal feed on the EU market (Agbroko & Ruona, 2012).
Commercial chicken feed is largely composed of these agricultural products. It consists of ingredients that provide energy, protein, vitamins and minerals. The main components to cover the need of energy are: wheat, barley, sorghum and maize, while soybeans, lupines, canola and peanuts provide protein (Poultryhub, 2012). The proper combination of these ingredients should lead adequately meet the vitamin and mineral requirements for poultry (Poultryhub, 2012). Providing this right combination is crucial, as the health and welfare of poultry (ThePoultrySite, 2012) is affected. According to ThePoultrySite, especially genetic improvement of the breeds and an increasingly intensive poultry production make chickens more vulnerable to diseases. In consequence, the chicken’s need for vitamins is increased. Therefore it needs to be kept in mind that on the one hand high-quality chicken feed has become very important, while on the other hand chicken feed production has become more and more difficult.
10.2.2 Approaches that lead to more sustainability
Building on the above-mentioned problems that are involved with the production of chicken feed, there are two main solutions that can make sure that enough high-quality chicken feed is available. On the one hand agricultural areas could be treated in a different manner and on the other hand alternative sources of chicken feed could be taken into account.
10.2.2.1 Genetically engineered crops
Options that allow crops to grow better include the enhancement of nutrients in the soil or a change in crops grown. Improved manure, water, compost and mineral management provide part of the solution and make the production of chicken feed more sustainable. Besides this, crops can be changed (lupine) or genetically modified to become more resistant to various threats like diseases, water shortages, etc. or to grow in greater quantity. Genetic modification has however raised quality concerns amongst consumers. It is assumed to be closely related to an increase in cancer rates and other negative health effects. The debate about genetically modified food and chicken fed with genetically modified crops has been going on for many years, particularly in Germany. Prominent consumer opinions about this possibly viable solution will be discussed in the next section. Beforehand though, another approach to making the chicken feed production sector more sustainable will be examined.
10.2.2.2 Rendered animal feed
Instead of looking at improving the already existing animal feed systems, it is also possible to change the animal feed itself and find new sources that could also provide chickens with the nutrients they need. One method is the process of rendering. One definition of rendering is to ‘clarify or purify by melting’ (heat processing). Unprocessed animal by-products may contain 60% or more water (Figure 14, Hamilton, 2004). Here processed raw materials of
45
Economic and Health Issues in the Dutch Poultry Sector
animal origin are turned into animal feed. As they include a host of valuable ingredients, like fats, proteins and minerals, chickens are provided with the ingredients they need to live healthily and produce many eggs (Sonac, 2012).
Figure 13: raw material composition of unprocessed animal by-products (60% water and 40% valuable ingredients like fat, protein en minerals).
A closer look at the opinion of consumers and governmental regulations with regards to genetically modified crops and rendered animal feed will help to determine whether these options provide viable solutions for more sustainability.
10.2.3 Consumer perceptions of sustainable alternatives
10.2.3.1 Consumer perceptions of genetically engineered crops
Genetically modified or GM chicken feed is used to keep chicken feed nutritious, despite negative environmental influences. A recent ban on GMO in animal feed is seen by the sector as a real cost increasing issue by Dutch poultry farmers. The Dutch public is generally not too concerned with GM components in their food, as it trusts its government to make the right decisions. In various other countries however, there are two opposing attitudes towards products that have been genetically modified.
In most parts of Europe GM feed has a very negative reputation, as its health and environmental risks are regarded as a threat (Sheldon et al., 2009). Despite these worries its use is on the increase. Only recently has the British grocery supermarket chain Morrison’s allowed farmers to supply it with meat and eggs coming from chicken fed with GM feed (Ford, 2012). This has caused a huge uproar in the British consumer market, with consumers changing to different meat and egg suppliers. A consumer interviewed by “The Grocer” (Ford, 2012) stated for example “Price is not the only consideration – health is in the long term much more important and anyone who reads about the problems with GM crops will think twice – no Morrison’s […] for me.” The GM feed debate is particularly relevant in Germany.
Some consumers however believe that the positive effects of GM feed (e.g. its more efficient production) could outweigh the potential risks (Sheldon et al., 2009). Especially in countries other than Europe attitudes towards genetically modified food are rather positive. A study conducted among college students in the US in 2006 proved for example that 76% of all participants held a positive opinion about GM food (Tomkins, 2006). In South America consumers even preferred GM food to other food, as a study conducted amongst the Chilean population showed (Schnettler, 2012). There is a strong need for impartial research to bring more clarity into the discussion about the effects of the genetic modification of animal feed.
10.2.3.2 Government regulations regarding rendered animal feed
Rendering can also be considered as an alternative to agriculture-based chicken feed. In this process heat is used to separate the animal waste products into its different elements to then be able to use its components. The components are protein, fat and water. As previously noted, BSE outbreaks have led to strict EU rules to prevent components of animal waste products from being used in animal feed.
46
Economic and Health Issues in the Dutch Poultry Sector
10.2.4 Suggestions for chicken feed production
In accordance with the research above, the production of genetically “One could call enriched cage modified crops and rendered animal feed seem to be options to bring farmers more sustainable cheaper feed to the egg production sector. Both are currently negatively farmers compared to different perceived by Europe’s population. The GM debate also shows that the kinds of poultry farmers, public’s opinion regarding this topic is very different in various regions of because my chickens need less the world. The proper and independent evaluation of studies that have feed per kilogram of egg they researched environmental and health effects of GM food and the bacterial produce. Besides, chickens which risks of rendered animal feed could help to determine whether both are allowed to walk outside options are as dangerous as consumers believe. Should this not be the have a bigger chance on case, efforts could be made to better inform the European public. Based on attracting diseases. Is that what these evaluations information campaigns are needed to provide the you call animal welfare?” relevant insights and to separate fact and myth as far as possible. As long (Dutch enriched cage egg as these types of initiatives are not taken and broadly spread in society, farmer) controversy will continue to prevent the potential cost-reducing effect of using these alternatives. Especially transparency is important to allow consumers to make informed decisions.
10.3 Egg production
10.3.1 Current situation in lay-hen and broiler farms
A regulation from January 2012 has prohibited farmers from keeping chickens in cages and has substantially increased standards regarding the size of new, enriched cages that are permitted in certain situations. Many consumers are against the use of any cages for the egg production. 61% of British consumers for example state that ‘enriched-cages’ should be banned as well (RSPCA, 2011). A huge trend towards alternatives to battery- cage eggs is therefore arriving in Europe. Currently there are several egg types from which European consumers can choose. They differ in the level of animal welfare, the environment and food safety (International Egg Commission, 2012). Examples for housing options that are already in place reach from free-range to certified organic chicken farms. There are also housing options which completely integrate consumer and farmer perspectives and demands into their design.
10.3.1.1 Current situation in barn egg (scharrelei) production
Chickens that produce “scharreleieren” are kept in barns and are given more space and thereby also higher levels of animal welfare than caged chickens. They are however not kept outside and have very limited space. “According to the official Dutch definition, barn eggs are produced by chickens which share a square meter of barn with eight others and never go outside.” (DutchNews.nl, 2010) Barn eggs which are exported to Germany also need to fulfil the German KAT quality standards. These quality standards are called IKB in the Netherlands.
10.3.1.2 Current situation in free range egg (vrije uitloop ei) production
Unlike barn chickens, free range chickens must be given “access to open air runs” that are “mainly covered with vegetation” (Soil Association, 2006), according to the EU law. Critics claim that outdoor access increases the risk of diseases such as avian flu (Centers for Disease Control and Prevention, 2012) and predation by wild animals such as foxes. Proponents of the free range systems counter that more natural living conditions lead to higher animal welfare levels. The label “free range” allows chicken farmers to keep very large flocks of chickens, which can impede the outdoor access for these birds (Soil Association, 2006). This can have negative effects on their welfare and health standards (Soil Association, 2006).
47
Economic and Health Issues in the Dutch Poultry Sector
As such a large proportion of the Dutch eggs are exported to Germany, the German KAT quality standards will be regarded in the following. They are equivalent to the Dutch IKB standards, as both organizations collaborate. According to German KAT standards no more than 6,000 hens are allowed to be kept per unit (British Free Range Egg Producer Association, 2008). More specific regulations apply for organic chicken, which in this respect are one specific type of free range chicken. The Rondeel© system is an innovative housing system which takes various animal welfare considerations into account. It does so by granting chickens outdoor space within a protected enclosure. The production standards of organic and Rondeel© eggs provide chickens with more natural living conditions, sleeping/perching facilities, better food and less chemicals.
10.3.1.2.1 Organic eggs Organic chickens are not only provided with outdoor access, but are also, according to the German KAT standards, limited to 3,000 birds per flock (KAT handleiding voor legbedrijven, 2011). They receive fresh grass to rest on during at least two months between each batch and are entitled to 4 m of outside space per bird (KAT handleiding voor legbedrijven, 2011). For inside areas, the stocking density generally cannot surpass the maximum limit of 6 birds per m if German KAT standards are followed (KAT handleiding voor legbedrijven, 2011). The stocking density of organic chickens is therefore lower than that of unspecified free range chickens Soil Association, 2006). There are two different types of systems in which organic chickens can be kept (Magdelaine et al., 2010). One includes single-level and on the floor rearing, while the other consists of a multi-layer rearing area. General rules for organic farming include good environmental practice, high animal welfare standards, local organization of agricultural production and a sustainable development model (Laszczyk Legendre, 2010). Furthermore, organic chickens are given only restricted types of chemicals and receive no GM feed.
10.3.1.2.2 Innovative system: Rondeel© As mentioned previously, animal welfare and product quality considerations should be incorporated into the design phase for adequate housing systems. One of the innovative housing systems which has entered the market is known as the Rondeel© system. The Rondeel© system is, as the name suggests, a housing system of circular shape. It comprises several sections that provide space for chickens to express their natural behaviour. There are, amongst others, areas where chickens can perch, places where they can dust bathe and wooded areas where they can forage (Rondeel©, 2012). The Rondeel© can house a total of 30,000 hens in its 6 different areas (Niekerk, 2011).
Figure 14: Typical Rondeel egg farm Source: www.rondeel.org, 2012
When measured with the Welfare Quality protocol, the animal welfare in Rondeel© systems was comparable to and for some areas even slightly better than organic chickens (Niekerk, 2011).
48
Economic and Health Issues in the Dutch Poultry Sector
10.3.2 Consumer perceptions of these sustainable alternatives
With people’s rising income levels, their concerns about animal welfare have also increased. An EU wide survey found for example that 57% of citizens were willing to pay more for eggs from higher animal welfare systems (European Commission, Eurobarometer 229, 2005).
Consequently, conventional methods like laying hen battery cages are increasingly considered cruel and undesirable. Additionally, consumers are concerned with the quality of eggs that come from conventional production methods. They consider an ideal production system to be one based on relatively few hens per square meter, offering natural feed and freedom of movement (Blair, 2008).
A recent study on the geographic representation of farmed animal welfare concerns shows that the Netherlands is among the countries where less than 60% of the consumers expressed worry over the welfare of farm animals (Eurobarometer 354, 2010). But there is a broader picture to keep in mind. Future developments relating to new innovative housing systems must consider the impact of Dutch export markets. Consumers in Germany show a different attitude to the one held in the Netherlands. 61 to 67% of Germany’s inhabitants care about the welfare of farm animals (Eurobarometer 354, 2010).
As approximately three quarters of all produced Dutch eggs were exported there in 2009 (The PoultrySite, 2012), Germany is the main consumer of Dutch eggs. Therefore, keeping up high levels of animal welfare is very important. This makes the egg production business more sustainable and enables it to retain a high customer base. The overview in figure 12 shows that Scandinavian countries have a very high concern for animal welfare. For this reason a development towards better chicken-keeping standards could also lead to an increase in exports to countries that have previously not been in the scope of the Netherlands poultry sector.
Figure 15: Geographical representation of percentage of consumers expressing some level of worry over the welfare of farmed animals
More detailed research on consumer attitudes towards the different egg production types explains the choices consumers make, when purchasing eggs. Learning more about these concerns indicates which factors should be changed to maximize profits and simultaneously increase animal welfare levels.
10.3.2.1 Consumer perceptions of barn eggs (scharrelei)
Barn eggs have caused confusion amongst international egg consumers. Translated into English the term “scharrelei” can mean barn egg and free range egg. The technical term, however, only refers to barn eggs. In addition to that the term “scharrel”, which means scratch, implies that chickens have space to move around and scratch as they please. This does not reflect the real living conditions of these chickens. It is therefore assumed that most consumers are not aware of the fact that chickens producing these types of eggs never leave the small barns they live in. Barn eggs have caused confusion amongst international egg consumers. Translated into English the term
49
Economic and Health Issues in the Dutch Poultry Sector
“scharrelei” can mean barn egg and free range egg. The technical term, however, only refers to barn eggs. In addition to that the term “scharrel”, which means scratch, implies that chickens have space to move around and scratch as they please. This does not reflect the real living conditions of these chickens. It is therefore assumed that most consumers are not aware of the fact that chickens producing these types of eggs never leave the small barns they live in. It needs to be stated in this context however that this information has been provided by Dutch action groups, whose statements might be biased and aimed at causing confusion as consumers are not sufficiently interested in eggs. More consumer-directed research should follow to find out what consumers really think.
10.3.2.2 Consumer perceptions of free range eggs (vrije uitloop ei)
Barn eggs are still preferred over free-range eggs by the majority of Dutch inhabitants. In 2011 the Dutch market share of free range eggs was 8% (PPE). Besides the potential lack of information about the barn egg production system, there are alternative explanations for the Dutch consumer’s barn egg preference. These explanations are based on the critical view that many Dutch people hold of free range eggs. It is believed that Dutch consumers are satisfied with the animal welfare standards of barn chickens. In addition to that, free range eggs carry the risk of containing higher levels of dioxins and are also considered to be more likely than other egg types to lead to a Salmonella or Al infection.
10.3.2.2.1 Organic eggs Organic eggs only had a market share of 1% in the Netherlands in 2005 (British Free Range Egg Producer Association, 2008). Despite the generally rather negative opinion of Dutch consumers towards free-range eggs, the Dutch organic egg production has risen slightly and reached a market share of 2,3% in 2010 (Meeusen, 2011). A rise in consumer interest in organic eggs between 2008 and 2009 (Bestman, 2011) led to a demand that was higher than the supply for these types of eggs (Meeusen, 2011). As the interest of Dutch consumers has however declined again, the situation is difficult for the producers of organic eggs.
The perception that many international consumers of Dutch eggs hold with regards to free range eggs can also be applied to their view of organic eggs. It is believed that these eggs are healthier than other egg types and that they contain no genetically modified materials. Many people find that organic eggs taste better and that chicken welfare is better guaranteed (Stopes, 2001). While the general opinion of this type of eggs is rather positive outside of the Netherlands, there is still a lack in objective information concerning their advantages. Within the Netherlands research has also been unable to conclusively determine whether organic eggs are of superior quality. For example according to Blair (2011) the higher health level of organic eggs could not be proven. This finding correlates with consumer concerns and uncertainties; they are not sure what to believe in. While organic still generally stands for something positive, many consumers find it hard to determine its actual value.
Quote Dutch organic egg farmer: “As a result of the good margins earned by farmers of organic eggs banks have motivated, or better said, obliged, farmers to become organic egg farms, and also a reasonable amount of ‘non poultry farmers’ have started an organic egg farm. Due to the increase in production of organic eggs there is currently an oversupply. This means that our margins have decreased, and have made us more dependent on the wholesaler. The feed prices have increased and our selling price has decreased. I understand that the agrarians need this money to survive, but this makes our margin smaller. The selling price in the shops and supermarkets stays the same. This means that a part of the margins stays somewhere and I do not know where. I have no insight in the parts of the supply chain before or after me. We do not have any influence on the price, like in the whole agricultural sector. The packaging stations tell me that they are under pressure of the supermarkets themselves. Everyone takes its part of the profit and we have to wait and see what is left for us. In my opinion, one solution could be that all organic egg farmers reduce their amount of chickens by, for example, 10%. I do not mind to hold fewer chickens for the same income. However, this will be hard to realize, because new organic egg farmers will be born or others will expand their farms. Besides, I think that consumers should become more willing to pay some more for their food. Since the first of January 2013, 20% of the organic feed needs to become from the farmers’ own land. The European Union decided that Europe is the farmers’ own land. However, Germany decided to make their own rules and decided that only the neighbouring federal states are the farmers’ own land. Since Germany is our biggest export market, this could become a big problem for Dutch organic egg farmers. In my opinion Germany is trying to get a hold on the import of Dutch organic eggs. Also, what really annoys me is the constant flow of new rules and (small) adaptations of existing rules. The Netherlands always seems to be more Catholic than the Pope when it comes to implementing these rules. Other countries are easier in their rules, but we have to handle with their rules and even more important their competition on the world market. Nevertheless, the Netherlands are very good in producing good and nice eggs.’’
50
Economic and Health Issues in the Dutch Poultry Sector
10.3.2.2.2 Innovative systems: Rondeel© eggs The Rondeel© system offers a natural environment for chickens and a sustainable alternative to other egg production systems. Besides providing chickens with optimized living conditions, negative factors linked to other free-range production methods have been addressed in this design. The higher risk of infecting birds with the Avain Flu is for example prevented by allowing birds to be easily shielded from the environment (World Society for the Protection of Animals, 2012). Therefore eggs that are produced within the Rondeel© system are likely to be healthier than those derived through free-range production methods, like organic farming. Another advantage of the Rondeel© egg production is that its design accommodates visitors (World Society for the Protection of Animals, 2012).
Those consumers that would like to learn more about the ethical treatment of chickens can see what the general living conditions are in the Rondeel© system. This production method increases the level of consumer awareness concerning egg quality and helps consumers choose sustainable eggs.
Dutch free-rage Rondeel® egg farmer: “After the bird flu outbreak we started thinking about the way we were keeping our chickens. Did we need to continue or use a different strategy? The idea of the Rondeel® was born in cooperation with different parties. With the Rondeel® we try to work demand driven instead of support driven. A new Rondeel® will only be built if the sales volume will allow this. But for a healthy market with good margins, we first all need to be on the same line. When ten farmers decide to undersize, ten others will decide to oversize. Solidarity is very low in the Dutch poultry sector. We are all individuals. In the past we had a decent cooperation and egg wholesale business, however, we destroyed this ourselves. A wholesale business is perfect in my opinion: one place to sell your products to the highest bidder. And in case of an overload, we could sell this overload to other countries ourselves in order to keep the margins. Dutch pepper farmers already tried this, but got problems with the Dutch Competition Authority. We poultry farmers all blame the retailers, but we first need to straighten out our own problems and issues.
Organic and free-range chickens are more vulnerable to diseases. The Rondeel® could be the perfect solution for both animal welfare and animal health. Animal welfare is increased and the chickens are better protected against diseases due to the design of the Rondeel® with its roof-net. Today (January 2013) there are three Rondeel®-type farms for eggs. One Rondeel® is being designed for meat chickens. I do not want to give my opinion about the ‘plofkip’, but I think this is the biggest problem for the sector at the moment. Changing all farms to Rondeels© will not be a solution. The egg processing industry wants cheap eggs and the world market only looks to the price.
In my opinion sustainability is a concept that is good for the longer term, does not overburden the environment, reduces energy needs and allows productions of a good, healthy an honest product. In enriched cage farms many things are done to improve sustainability, for example drying the dung. Besides less feed is needed. However, the main difference in sustainability is the living space of the chickens and animal welfare”.
10.3.3 Suggestions for a more sustainable egg production
As income levels increase, higher consumer spending on free range egg products can be expected. Previous research has proven that consumers are willing to pay for legislative improvements in animal welfare, especially in the egg sector (Bennett, 1996). With this information in mind, egg production can be made more sustainable and profitable in two ways. Firstly, consumers should be informed about the chicken welfare standards in the different production systems. Secondly, country specific consumer preferences should be taken into account by Dutch egg producers.
In the Netherlands and the rest of Europe consumer attitudes towards the different egg production types are characterized by great insecurities. People are unsure which information can be trusted and which egg production methods are true to their claims. One main factor for improvement would therefore be to improve consumer awareness of the living standards of chickens in different egg production systems. The Rondeel© farming approach for example accommodates visitors, which helps interested people to learn directly about the production standards of different egg types. This option should also be available for other egg production systems. More objective media coverage on these different standards can also help clarify consumer understanding of the different types of egg production. Another factor for improvement would be the creation of internationally comparable terms for the different egg production types. Confusion over words, like “scharrelei”, which is often translated to “free-range”, but actually refers to Dutch barn eggs, should be avoided. Related to this, clear, internationally agreed upon rules for the different production standards would make the quality of eggs and the welfare of chickens from different countries more comparable. Furthermore, labelling practices should be clearly understandable for consumers.
51
Economic and Health Issues in the Dutch Poultry Sector
In the current labelling practice barn eggs carry the code number 2, free range eggs carry the code number 1, cage eggs are marked with number 3 and organic eggs are labelled with a 0 (British Free Range Egg Producer Association, 2011). Consumers need to get informed about the meanings of the different codes. A clearly stated overview of the different categories on the egg carton would be a possible solution.
As the previous analysis showed, Dutch consumers are amongst those that are less interested in the welfare of farm animals. To make the life of chickens more sustainable, comparable and bias-free information should be provided concerning the welfare of chickens in barn egg production systems, which produce those eggs that are preferred by Dutch consumers. If the welfare of chickens in these production systems proves to be insufficient, the Dutch nation should be educated about this. Countries, where high animal welfare standards are of particular interest to consumers could turn out to provide very relevant new export opportunities for the Dutch egg production sector. The Dutch chicken sector is currently among the most progressive ones in the EU as it has high quality standards and is very innovative. For example Scandinavian countries show a high interest in the welfare of farm animals. They are currently not one of the main consumers of Dutch eggs but could be a potential future customer base for Dutch organic, or Rondeel© eggs.
10.4 Egg waste products According to The Poultry Site (2012) the main difference between second- and first-quality eggs is that the second- quality egg shells may be cracked and misshapen, but the shell membrane must be intact. There it is furthermore stated that these eggs may be less fresh, which is indicated by an enlarged air cell and watery egg white, but must be free from rot. The Poultry Site (2012) states furthermore that second quality eggs can be sold, but not re-sold for human consumption and can alternatively be used for the production of egg pulp. Any eggs that do not conform to the requirements for first or second quality eggs are according to the Poultry Site (2012) not fit for human consumption. This consequently brings up the question about what gets done with the egg waste products and whether they are used in an acceptable way which also provides an adequate price for the poultry farmers.
Currently the egg products that are not seen as good enough for human consumption are used for the manufacture of pet food, as dogs and cats require high levels of proteins in their food. As seen above, rising living standards increase the population’s concern about animal welfare. Consequently they are also particularly concerned about the wellbeing of their pets. The use of lower quality eggs for pet food is therefore seen in an unfavourable light by many consumers (Becker, 2012)
Egg shells and egg trays can be used to create burnt limestone or quicklime, which is a commodity chemical that is used, for example, in the building industry (WorldPoultry, 2007). To find alternatives for the use of lower quality egg products had always been considered as very difficult and expensive beforehand (WorldPoultry, 2007). This new idea however, in which egg trays work as fuels to burn the egg shells in a boiler system was introduced by the Danish producer Dankalk and could mean a great innovation for the egg industry.
10.5 General consumer perceptions The production chain approach has allowed a very structured analysis of the different areas of egg production for in- shell eggs. Some general opinions about eggs, that are not part of any particular step of the egg production chain, have not been included in the previous analysis. In addition to that, eggs that are consumed as parts of other products are perceived in a completely different manner by consumers. These eggs are usually sold in liquid or in powder form.
10.5.1 General consumer perceptions of in-shell eggs
There are increasingly positive consumer perceptions on eggs as a source of health. People are more and more aware of the fact that eggs have a high level of protein, which is important in the development of the brain and muscles and plays a key role in disease prevention. It can therefore contribute to well-being in later life, particularly in relation to eyesight (International Egg Commission, 2012). Several academic studies have proven that cholesterol levels are not negatively affected by the consumption of egg yolks, (e.g. Spence et al. 2012). This fact is reaching more and more consumers through more news coverage on this topic. Consequently eggs that are bought in their original form are considered as healthy and valued highly for their nutritional value. Egg producers could build on these developments by marketing eggs more strongly as healthy products. After all, eggs have proven to help against several chronic diseases (Nelisson, 2012) – a fact that many consumers are not aware of.
52
Economic and Health Issues in the Dutch Poultry Sector
10.5.2 General consumer perceptions of out-of-shell eggs
Even though consumer awareness about the positive effect that eggs provide is increasing, large portions of the public are not aware of the large number of products which contain eggs. Therefore a double-standard is applied to the egg production for processed foods. While on the one hand consumers have proven to be willing to pay more for high-quality eggs, this is not the case for processed products that contain eggs, as customers are simply not aware of the fact that they are purchasing eggs in these cases. Prices for a large proportion of produced eggs are therefore still low and will not rise unless consumers are made aware of the fact that many more products contain eggs. They should learn that in order to improve the welfare of all chickens, the prices paid for products that contain eggs also need to reflect sustainability and animal welfare considerations.
Raising consumer awareness of this fact could help to show them how important eggs are in all parts of their lives. Consequently the value of eggs will rise, making them willing to spend more money on eggs and egg products. Therefore it is also important to promote the high overall quality of produced eggs. Not doing so could at an uncertain point in time surprise the sector and lead to a boycott of all egg products. This would have a detrimental effect for the sector and as a whole. A last point that needs to be considered in this context is the fact that the current sustainable alternative’s production standards cannot reach the same output levels as less sustainable production methods. Therefore it is with current methods impossible to produce as many eggs as are required for the mass market. One conclusion which can be drawn from this is that there may be a need to stabilise consumer demand while the poultry sector shifts to sustainability.
53
Economic and Health Issues in the Dutch Poultry Sector
11 Overall conclusion
11.1 Sustainability is a process o The conclusions and recommendations in this report are to be develop further and refined through a structured brainstorm session including the project team, project supervisors and representatives of the client. o With regards to sustainability it is important to determine which factors are important and should be emphasized. o Before making policies for the future, one should carefully consider the possible consequences of these policies and directions. When creating new policies we recommend making scenario studies to be able to anticipate future problems. An example would be the major increase in biological egg producers, which has led to high supply while it did not match demand. o It is essential to secure the level playing field. On the European level the Non Trade Concerns in the context of the World Trade Organization. must be guarded. o Companies should continuously anticipate legislation to maintain their competitive advantage.
A main point for improvement is the achievement of more overall transparency in the sector o It is important that consumers are informed about the dilemmas within sustainability and in particular animal products. A balanced approach is needed. We believe that this increased knowledge would lead to a (competitive) advantage for the sector in an ever more crowded world with ever more individual and critical consumers.
11.2 Eggs
The Dutch egg sector is amongst the most innovative in the EU o The project ‘Houden van Hennen’ is the prime example of designing future poultry keeping systems where companies, NGOs and science work together. o The initiatives within the poultry sector are a good example of cooperation between NGOs, government and corporations. This knowledge should be used in all scenarios.
A main point for improvement is the achievement of more specific transparency in the sector o It is important that consumers are informed about the high quality products that Dutch eggs are, and that they should know that the egg production process is controlled very strictly. We believe that this increased knowledge would lead to a (competitive) advantage for the sector, as it would benefit from a public image as a high quality egg producing country.
Improve sustainability – Consumers o Clearly label and certify different egg types in a uniform, coherent way that is easy to understand and is communicated to consumers. o When eggs are used as by-products, it should be stated which type of egg has been used. o As the Dutch egg sector is so innovative it would be interesting for consumers to have a more accessible industry (e.g. open access to egg production systems for the interested public, as provided by Rondeel© farms). This could also help bring consumers closer to the production process again.
Improve sustainability – Producers o The sector has already successful examples of cooperation between the industry and NGOs which should highlight that the poultry industry has more to win when cooperating with NGOs, instead of feeling threatened by them. o We urge for horizontal cooperation and coordination between the different members within the supply chain. Although it is often seen as impossible, we consider that cooperation between farmers, between packing stations, etc. is possible and could improve the position of all. At the basis of this lies the need for more trust between the
54
Economic and Health Issues in the Dutch Poultry Sector
different actors in the sector, we believe that this could be achieved by transparency, openness and the presence of an independent supervisory body. o We would like to warn the sector to be careful with vertical integration. This type of integration as seen in other countries limits independence of the actors of the supply chain, which could be detrimental to their development. o More transparency between the players in the chain can have a positive effect in increasing vertical Price transmission efficiency. This means that potential increase in gains that could be expected due to better market prices are distributed evenly across the different players in the chain. o Price-fixing is illegal due to article 108 of the Treaty on the Functioning of the European Union. The EU Commission itself has the power to apply these prohibitive rules and has investigative powers, and may impose fines on undertakings which violate these rules, as set out in Council Regulation 1/2003. o There should be more supply and demand regulation: key stakeholders should moderate the developments with regards to needs and demands and consider the consequences of their actions (e.g. make sure that an overproduction of bio eggs does not happen anymore).
11.3 Poultry meat
Improve sustainability – Consumers o The project ‘pluimvee met smaak’ is the example of developing future poultry keeping systems where corporations, NGOs and science work together. It is needed to make more use of the results of these developments. o More transparency and clear labelling (see above).
Improve sustainability – Producers o More cooperation (see above). o Pay attention to reoccurring health problems (these have the biggest impact): bacterial infections and the use of antibiotics. o Make sure that poultry farmers are aware of the signals indicating health issues within their flock, which may reduce the need to use antibiotics and may prevent an outbreak. o Promote awareness as to the natural and less harmful produce which may be used as a pre-biotic feed source. Further investment in removing poultry dust to prevent infections is worthwhile and would also aid the combat against Salmonella infections in a dimension which is not tackled through the Dutch Action Plan Salmonella. o Hygiene measurements form the core of preventing infection. Besides these measurements, probiotics could be used and logistically slaughtering and bacterial DNA could be applied. o Effective measures to diminish the use of antibiotics constitute a combination of improved living conditions and agreements made on an (inter)national level, with an appropriate control mechanism in place.
11.4 Public health problems The health problems occurring in the poultry sector can be divided into major and minor health risks. Major health risks are bacterial infections and the use of antibiotics.
Major health risks: o Infections by Salmonella and Campylobacter are the most important causes of foodborne illness. o Hygiene measurements form the core of preventing infection. o Considering an elaborate system and consisting of European and national legislation and guidelines, it is still very necessary to make sure the consumer is aware of how to deal with raw produce. o Further investment in removing poultry dust to prevent infections would therefore seem worthwhile and would also aid the combat against Salmonella infections in a dimension which is not tackled through the Dutch Action Plan Salmonella. o Besides these measurements, probiotics could be used and logistically slaughtering and bacterial DNA could be applied. o The use of antibiotics mainly occurs in the meat sector. The egg sector generally does not use antibiotics. o Effective measures to diminish the use of antibiotics constitute a combination of improved living conditions and agreements made on an (inter)national level, with an appropriate control mechanism in place.
55
Economic and Health Issues in the Dutch Poultry Sector
Minor health risks: o Minor health risks include fungi and ammonia, both present in poultry litter, viruses and the (over) selection of a limited number of broiler breeds o Animal feed is a potential source for health risks. The use of animal proteins in animal feed is currently banned, but caused serious health problems for humans in the past. Currently, genetically modified crops are used in the Dutch poultry sector; however, there is still discussion about the safety of these crops. Animal feed could also be a source of dioxin, and therefore strict control mechanisms are important.
56
Economic and Health Issues in the Dutch Poultry Sector
References
11.5 Books • Arthur, J.A. & Albers, G.A.A. (2003). Industrial perspective on problems and issues associated with poultry breeding. In: Muir WM and Aggrey SE (eds.), Poultry Genetics, Breeding and Biotechnology (Wallingford, U.K.: CABI Publishing, pp. 1-12). • Barrez, D. (2007). Koe 80 heeft een probleem. EPO, Berchem, 251 p. • Blair, R. (2008). Nutrition and Feeding of Organic Poultry. CABI, Wallingford, Oxford, UK, 314 pages. • Howells, J., & Wood, M. (1993). The Globalisation of Production and Technology. London: Belhaven Press/Printer. • Van den Bossche, P. (2008), The Law and Policy of the World Trade Organisation, text cases and materials, Cambridge: Cambridge University Press.
11.6 Articles and reports • Aarestrup, F. (2012). Get pigs off antibiotics. Nature. 486; 465-466. • Baltussen, W.H.M., Van Horne, P.L.M, Hennen, W.H.G.J., Wisman, J.H., Van Asseldonk (September 2007). (IRMA), M.A.P.M., Risicobarometer voor de pluimveehouderij, LEI, Den Haag. • Barratt, M. & Oliveira, A. (2001). Exploring the experiences of collaborative planning initiatives, International Journal of Physical Distribution & Logistics Management, Vol. 31 No. 4, 2, pp. 266-289. • Becker, G. S., (2008). Livestock feed costs: Concerns and Options. • Bedford, M. (2000). Removal of antibiotic growth promoters from poultry diets; implications and strategies to minimise subsequent problems. World's Poultry Science Journal. 56(4); 347-365. • Bennett, R.M. (1996) Willingness-to-pay measures of public support for farm animal welfare legislation. Veterinary Record 139: 320-321. • Bestman, M. (2011). Organic poultry and egg production in the Netherlands. Organic Knowledge Update. Available at: http://orgprints.org/18911/1/Organic_poultry_and_egg_production_in_the_Netherlands.pdf. • Blaak, H., Schets, F.M., Italiaander, R., Schmitt, H. & de Roda Husman, A.M. (2010). Antibioticaresistente bacteriën in Nederlands oppervlaktewater in veeteeldrijk gebied. Bilthoven, the Netherlands: RIVM. • Boeren zijn succesvolste andersglobalisten, Boer & Tuinder, 19 October 2007, pp. 35-36. • Bogaardt, M.-J., Folbert, H.-P., Kroon, S. van der, Poppe, K. & Smit, M. (2002). Stakeholder-analyse CARMA-project. Verslag van interviews en workshop met stakeholders. The Hague, the Netherlands: Agricultural Economics Research Institute (LEI). • Bunte, F., Kupier, W., & van Galen, M. (2003). Macht en prijsvorming in agrofoodketens. Den Haag, the Netherlands: LEI. • Casewell, M., Friis C., Marco, E., McMullin, P. & Phillip, I. (2003). The European ban on growth-promoting antibiotics and emerging consequences for human and animal health. Journal of Antimicrobial Chemotherapy, 52; 159-161. • Caspari et al. (2010). The poultry and egg sectors: Evaluation of the current market situation and future prospects. Requested by the European Parliament's Committee on Agriculture and Rural Development. Available at: http://www.europarl.europa.eu/RegData/etudes/etudes/agri/2010/438590/IPOL- AGRI_ET(2010)438590_EN.pdf. • Cepero Briz, Ricardo, Producción de huevos y pollos alternativos en España y en la E.U.: Situación actual y perspectivas de futuro. Universidad de Zaragoza, Facultad de Veterinaria. Available at: http://www.wpsa- aeca.es/aeca_imgs_docs/02_04_46_Produccion_en_la_UE.pdf (last visited 10-02-2013). • Clonan, A., Holdsworth, M. Swift, J. and Wilson, P. (2010) UK Consumers Priorities for Sustainable Food Purchases, paper presented to The 84th Annual Conference of the Agricultural Economics Society, Edinburgh, March, 2011. • Commissie van Doorn, Al het vlees duurzaam. • Commission of the European Communities, Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions, Global Europe: Competing in the world, SEC(2006) 1228, SEC(2006) 1229, SEC(2006), 1230. • Convenantpartners Antibioticaresistentie Dierhouderij. (2010) Nota Antibioticaresistentie Dierhouderij. Den Haag, the Netherlands. • Cooper, M., Lambert, D., & Pagh, J. (1997). Supply Chain Management: More Than a New Name for Logistics. International Journal of Logistics Management, 1-14. • De Hoo, Sybren, Met beleid naar een duurzame pluimveehouderij, 21 May 2012.
57
Economic and Health Issues in the Dutch Poultry Sector
• DEFRA (2011) Attitudes and Behaviours around Sustainable Food Purchasing, Report SERP 1011/10, Available at: http://www.defra.gov.uk/statistics/foodfarm/food/. • Dibner, J.J. & Richards, J.D. (2005) Antibiotic Growth Promotors in Agriculture; History and Mode of Action. Poultry Science. 84(4):634-43. • Dona, A. & Arvanitoyannis, O.S. (2009). Health Risks of Genetically Modified Foods. Food Science and Nutrition, 49:164-175. • Douglas, T., & Griffin, P. (1996). Coordinated supply chain management. European Journal of Operational Research, 1-15. • Dutch Food and Consumer Product Safety Authority and the Centre for Infectious Disease Control 2011, Available at: http://www.rivm.nl/Bibliotheek/Wetenschappelijk/Rapporten/2012/augustus/Registratie_voedselinfecties_en_ vergiftigingen_bij_de_NVWA_en_het_CIb_2011, last visited: 23-01-2012. • Egg prices continually rising. (2010). From CBS - Web Magazine: http://www.cbs.nl/en- GB/menu/themas/prijzen/publicaties/artikelen/archief/2010/2010-3073-wm.htm • Eierproductie duurder dan ooit. Pluimveehouderij, 42e jaargang, 22 juni 2012. • Estevez. Ammonia and animal welfare. Poultry perspectives. Volume 4, number 1. • European Commission (2005) Attitudes of Consumers towards the Welfare of Farmed Animals, Special Eurobarometer 229, Available at: http://ec.europa.eu/food/animal/welfare/euro_barometer25_en.pdf. • European Commission (2010): Eurobarometer 354. Food-related risks, Available at: http://www.efsa.europa.eu/en/factsheet/docs/sreporten.pdf . • European Commission, Enterprise and Industry, Study on the Competitiveness of the European Meat Processing Industry, European Union, 2011, pp. 45-49, 82-130. • Frank Bunte, J. B. (November, 2009). Pricing of Food Products. LEI Wageningen UR, The Hague. The Netherlands Competition Authority. • Global Agricultural Information Network, Thai Chicken Exports to the EU Looking Good, 20 April 2012, GAIN, Report Number: TH2043. • Golcalves, P. (2003). Demand bubbles and phantom orders in supply chain. Massachusetts, USA: MIT. • Grave K, Torren-Edo J, Mackay D. (2010). Comparison of the sales of veterinary antibacterial agents between 10 European countries. Journal of Antimicrobial Chemotherapy, 65: 2037–2040. • Hamilton, C.R. (2002) Real and perceived issues involving animal proteins. Food and Agriculture Organization. Available at: http://www.fao.org/docrep/007/y5019e/y5019e0g.htm. • Hammerum, A.M., Heuer, O.E., Lester, C.H., Agersø, Y., Seyfarth, A.M., Emborg, H.d. Frimodt-Møller, N. and Monnet, D.L. (2007). Comment on: withdrawal of growth-promoting antibiotics in Europe and its effects in relation to human health. International Journal of Antimicrobial Agents, 30; 466-468. • Hau L. Lee, V. Padmanabhan and Seungjin Whang (1997) The Bullwhip Effect In Supply Chains. Sloan Management Review Spring 1997, Volume 38, Issue 3, pp. 93-102. • He, H., Lowry, V.K., Swaggerty, C.L., Ferro, P.J. & Kogut, M.H. (2005). In vitro activation of chicken leukocytes and in vivo protection against Salmonella enteritidis organ invasion and peritoneal S. enteritidis infection-induced mortality in neonatal chickens by immunostimulatory CpG oligodeoxynucleotide. FEMS Immunology and Medical Microbiology, 43; 81-89. • Highly pathogenic avian influenza in chickens in Spain, Veterinary Science Team, Global animal health – International Disease Monitoring, 13 October 2009. • Horrigan, L., Lawrence, R. S., & Walker, P. (2002). How Sustainable Agriculture Can Address the Environmental and Human Health Harms of Industrial Agriculture. Environmental Health Perspectives, 110 (5), 445-456. • Hossain, Kamrul, the EU ban on the import of seal products and the WTO regulations: neglected human rights of the Arctic indigenous peoples?, Polar Record, Available on CJO 2012 doi: 10.1017/S0032247412000174. • Hoving, 2009. http://www.wageningenur.nl/nl/show/Alternatieven-voor-het-doden-van-eendagskuikens.htm • Hughes, P. & Heritage, J. (2004). Antibiotic Growth Promoters in Food Animals. In Assessing Quality and Safety of Animal Feeds. Pp. 129-152. Rome: Food and Agriculture organization of the United Nations. http://www.thepoultrysite.com/articles/1330/natural-mating-and-breeding. • Ieder voor Allen (iva), Help! Onze spaarpot wordt gepluimd. • International Egg Commission 2011, The World Egg Industry - a few facts and figures. https://www.internationalegg.com/corporate/eggindustry/details.asp?id=18. • International Egg Commission. (2012). Eggs – the key to life. Retrieved from: https://www.internationalegg.com/corporate/eggindustry/details.asp?id=18&cid=24. • Jez, C., Beaumont, C., & Magdelaine, P. (2010). Poultry Production in 2025: Learning from Future Scenarios. XIIIth European Poultry Conference, (S. 1-9). Tours (France).
58
Economic and Health Issues in the Dutch Poultry Sector
• Koninklijke Nederlandse Akademie van Wetenschappen, Kostprijs biologische eieren: van pluimveehouder tot winkel, available at: www.narcis.nl/research/RecordID/OND1331028/Language/nl . • Laszczyk Legendre (2010). Promoting the development of European organic egg production. Available at: http://www.erpa-ruralpoultry.eu/en/pdf/Organic-laying-hen-density-en.pdf. • Livestock, meat and eggs in the Netherlands, Available at: www.pve.nl. • López, Javier, El Sector avícola español, ante los nuevos cambios normativos. Agricultura Familiar en España, 2007, pp. 258. • Louw, Andre; Schoeman, Jacques; Geyser, Mariëtte (2011). Broiler Industry Supply Chain Study with Emphasis on Feed and Feed-Related Issues, Dept. of Agricultural Economics, Extension and Rural Development, University of Pretoria. • Lowe, P., Feindt, P.H. & Vihinen H., Introduction: Greening the Countryside? Changing frameworks of EU agricultural policy. Public Administration, Vol. 88, No. 2, 2010, pp. 287-295. • Magdelaine et al., 2010. Analyse comparée des dynamiques des filières avicoles biologiques au sein de l’Union Européenne (ITAVI, Rapport de synthèse France Agrimer et Article TeMA). • Mangen, M-J.J., Havelaar, A.H. & Poppe, K.J. (2005). Controlling Campylobacter in the chicken meat chain. Estimation of intervention costs. The Hague, the Netherlands: Agricultural Economics Research Institute (LEI). • Manning, L., & Baines, R. (2004). Globalisation: a study of the poultry-meat supply chain. British Food Journal, 104 (10), 819-836. • McLeod, A., Morgan, N., Prakash, A. & Hinrichs, J. (2011), Economic and social impacts of avian influenza, FAO Emergency Centre for Transboundary Animal Diseases Operations. • Meeusen, Marieke. Organic Knowledge Update. February 2011. Available at: http://orgprints.org/18910/1/The_organic_market_in_the_Netherlands.pdf. • Mentzer, J., DeWitt, W., Keebler, J., Min, S., Nix, N., Smith, C., et al. (2001). Defining Supply Chain Management. Journal of Business Logistics. • Mevius, D. (2012). Antibioticagebruik en veehouderij: ESBL en MRSA in dieren en de genomen controlemaatregelen. Infectieziekten Bulletin, 3, 23, 81-82. • Mulders, M.N., Haenen, A.P., Geenen, P.L., Vesseur, P.C., Poldervaart, E.S., Bosch, T., Huijsdens, X.W., Hengeveld, P.D., Dam-Deisz, W.D., Graat, E.A., Mevius, D., Voss, A. & Van De Giessen, A.W. (2010). Prevalence of livestock- associated MRSA in broiler flocks and risk factors for slaughterhouse personnel in The Netherlands. Epidemiology and infection, 138, 743–755. • Murad Ali, M. Farooq, F. R. Durrani, N. Chand, K. Sarbiland and A. Riaz 2003. Egg Production Performance and Prediction of Standard Limits for Traits of Economic Importance in Broiler Breeders. International Journal of Poultry Science 2 (4): 275-279. • Nederlandse Vereniging tot Bescherming van Dieren (2003). Pluimveehouderij in 2030. Visie van de Dierenbescherming op de toekomst van de pluimveehouderij in Nederland. Den Haag, the Netherlands. • NEPLUVI Jaarverslag 2011, Available at: http://www.nepluvi.nl/dynamic/media/1/documents/Jaarverslagen_NEPLUVI/JV_NEPLUVI2011_dl.pdf, last visited: 18-01-2013. • Niekerk, Thea & Reuvekamp, B. (2011). Rondeel, a new housing design for laying. WUR Livestock Research. Vol. 46 (2)m Page 25. Available at: http://www.lohmann-information.com/content/l_i_46_artikel12.pdf • OECD. (2006). Supermarkets and the Meat Supply Chain: The Economic Impact of Food Retail on Farmers, Processors and Consumers. OECD Publishing. • OECD/FAO (2011), “Meat” OECD-FAO Agriculturall Outlook 2011, OECD Publishing, http://dx.doi.org/10.1787/agr_outlook-2011-16-en. • Padel, S., Lampkin, N. & Foster, C. (1999), Influence of policy support on the development of organic farming in the European Union. International Planning Studies, Vol. 4, No. 3. • Phillips, I. (2007). Withdrawal of growth-promoting antibiotics in Europe and its effects in relation to human health. International Journal of Antimicrobial Agents, 30; 101-107. • Project team Houden van Hennen (2004), Houden van Hennen, op naar gelukkige kippen, trotse boeren en tevreden burgers, Wageningen UR, Wageningen. • Project team Houden van hennen, Programme of demands – Based on the needs of poultry farmer, laying-hen and citizen, Wageningen UR, Wageningen, Rapport nr: ASG/05/i00677. • Koerkamp, P. G. (2004). Wageningen UR project team Houden van Hennen, Laying Hen Husbandry – towards a happy hen life, proud farmers and a satisfied society. Retrieved 12. January 2013 from Houden van Hennen - Wageningen UR: www.houdenvanhennen.nl. • Qiu, R., Croom, J., Ali, R.A., Ballou, A.L., Smith, C.D., Ashwell, C.M., Hassan, H.M., Chiang, C.C., Koci, M.D. (2012). Direct fed microbial supplementation repartitions host energy to the immune system. Journal of Animal Science, 90(8); 2639-2651.
59
Economic and Health Issues in the Dutch Poultry Sector
• Reid, G. & Friendship, R. (2002): Alternatives to antibiotic use: probiotics for the gut. Animal Biotechnology, 13:1, 97-112. • Resultaten Actieplan Salmonella in eiersector veelbelovend, Available at: http://www.pve.nl/pve?waxtrapp=prttBsHsuOpbPREcBlBMJG&context=nfMsHsuOpbPREC, last visited: 23-01- 2012. • Rijksinstituut voor Volksgezondheid en Milieu (RIVM) (2012). Available at: http://www.rivm.nl/voeding/voedselveiligheid/Probiotica.jsp. • Roede BM (RIVM), Post N (RIVM). (2010). Antibioticaresistentie: Zijn er verschillen tussen Nederland en andere landen? In: Volksgezondheid Toekomst Verkenning, Nationaal Kompas Volksgezondheid. Bilthoven: RIVM. • Roelofs, P.F.M.M. & Smits, A.C., Korte Ketens Pluimveehouderij, Openbare samenvatting fase 2 van project ACD- 01.003, AKK co-innovatieprogramma Duurzame Agro Foodketens, Wageningen UR, January 2006. • Salles Alemeida, J., Gripe aviar: los impactos comerciales de las barreras sanitarias y los desafíos para América Latina y el Caribe. Serie Comercio internacional, División de Comercio Internacional e integración, Santiago de Chile, July 2006, pp. 76 et seq. • Sasidhar, P.V.K. (2006). Poultry Research Priorities to 2020. Proceedings of National Seminar (November 2-3). Izatnagar, India: Central Avian Research Institute. • Schnepf, R.D., Dohlman, E. & Bolling, C., Agriculture in Brazil and Argentina: Developments and prospects for major field crops. Agriculture and Trade, Report No. (WRS013), December 2001. • Schnettler, B., Miranda, H., Sepúlveda, J., Denegri, M. (2012). Consumer preferences of genetically modified foods of vegetal and animal origin in Chile. Ciênc. Tecnol. Aliment, vol.32 no.1. Available at: http://www.scielo.br/scielo.php?pid=S0101-20612012000100003&script=sci_arttext. • Sheldon, R., Cleghorn, N., Penfold, C., Brown, A., Newmark, T. (2009). Exploring attitudes to GM food. Final Report. National Centre of Social Research. Available at: http://www.natcen.ac.uk/media/665117/exploring%20attitudes%20to%20gm%20foods.pdf. • Soil Association (2006). Welfare for organic and “free-range” chickens and eggs. Information Sheet. Available at: http://www.organicagcentre.ca/Docs/AnimalWelfare/Soil%20Association/Welfare%20standards%20organic% 20v%20free%20range.pdf . • Spence, David; Jenkins, David; Davigno, Jean. (2012). Egg yolk consumption and carotid plaque. Atherosclerosis, Volume 224. Issue 2. 469-473. • Stichting Fonds voor Pluimveebelangen, Innovatieagenda pluimveehouderij 2008-2015, PPE, April 2008. • Stichting Fonds voor Pluimveebelangen, Innovatieagenda pluimveehouderij 2015-2020, PPE, April 2008. • Stichting Werkgroep Antibioticabeleid (SWAB) (2011). Antibiotica op het humaan-veterinaire grensvlak. Europese Antibioticadag. • Stobbelaar, D. J., & Hendriks, K. (2011). Designing Socially Sound Poultry Farming—Matching Hen Ethology, Farm Management and Landscape Quality. Journal of Agricultural Science and Technology (A1), 663-671. • Stopes, C.; Duxbury, R.; Graham, R. (2001). Organic egg production: consumer perceptions. Organic livestock farming. Papers presented at a conference held at the Heriot-Watt University, Edinburgh and at the University of Reading, UK, 9 and 10 February 2001 2001 pp. 177-179. • Suzzoni de, P., Are regulated prices against the market? European Review of Energy Markets-Volume 3 issue 3 October 2009, 3-4, available at: http://www.eeinstitute.org/european-review-of-energy-market/EREM_9- _Article_Patricia_de_Suzzoni.pdf, Last visited: 20-02-2013. • Taken, G.M.L. & Van Horne, P.L.M., Handelsstromen van pluimveevlees, LEI, Den Haag, 2006. • Tilman, D., Cassman, K. G., Matson, P. A., Naylor, R., & Polasky, S. (2002). Agricultural sustainability and intensive production practices. Nature, 418, 671-677. • Tomkins, A., Christensen, I., Fulwider, J., Loontjer, K., Abdel-Monem, T. Cohn, D. (2006). Genetically Modified Foods: Attitudes and Knowledge in the Heart of the Farm Belt, USA. University of Nebraska – Lincoln. • Trabajar para una integradora reduce riesgos, pero exige grandes inversiones de dificil rentabilidad. La Tierra, No. 212, Enero-Febrero 2009, pp. 70-71. • Tyndall, G., Gopal, C., Partsch, W., & Kamauff, J. (1998). Super-charging Supply Chains: New Ways to Increase Value Through Global Operational Excellence. New York: John Wiley & Sons. • Uniones Territoriales, La candidatura de UPA representa a los verdaderos profesionales del campo en las elecciones a la Cámara Agraria de la Comunidad de Madrid, La Tierra, No. 211, Noviembre-Diciembre 2008, pp. 32-41. • Van de Vorst, J. G. A. J., da Silva, C. A. & Trienekens, J. H., (2007) Agro-Industrial Supply Chain Management: Concepts and Applications, Food and Agriculture Organization of the United Nations, Rome 2007. • Van den Boom, H., Van Hout, B. (April 2008), Mulder, N.D., Kiezen voor kip, Rabobank. • Van Gerven, H. & Staarink, I.(September 2012) De boer aan het woord. Verkorte voorpublicatie, SP.
60
Economic and Health Issues in the Dutch Poultry Sector
• Van Straaten, A. (15 September 2010), Toekomst van de pluimveehouderij in Nederland, ambities en uitdagingen, Dutch Poultry Center, Available at: www.dutchpoultrycenter.nl/nl/nieuws/dpc-berichten/300- mk150910.html. • Vanhonacker, F. and Verbeke, V. (2009) Buying higher welfare poultry products? Profiling Flemish consumers who do and do not. Poultry Science 88: 2702-2711. • Veldkamp, T., van Duinkerken, G., van Huis, A., Lakemond, C.M.M., Ottevanger, E., Bosch, G. & van Boekel, M.A.J.S. (2012). Insects as a sustainable feed ingredient in pig and poultry diets – a feasibility study. Wageningen, the Netherlands: Wageningen UR Livestock Research. • Viegas, C., Carolino, E., Malta-Vacas, J., Sabino, R., Viegas, S. & Veríssimo, C. (2012): Fungal Contamination of Poultry Litter: A Public Health Problem. Journal of Toxicology and Environmental Health. 75:22-23, 1341-1350 • Vo, T., & Thiel, D. A System Dynamics Model of the Chicken Meat Supply Chain faced with Bird Flu. • Vorst, van der, J.G.A.J., Dijk, S.J. & van, Beulens, A.J.M. 2001. Leagile supply chain design in food industry; an inflexible poultry supply chain with high demand uncertainty. The International Journal on Logistics Management, Vol. 12, No. 2., pp. 73-85. • World Health Organization (WHO) (2010). Dioxins and their effects on human health. Fact sheet N°225. • Yakovleva, N., & Flynn, A. (2004). Innovation and the Food Supply Chain: a Case Study of Chicken. The Centre for Business Relationships, Accountability, Sustainability & Society.
11.7 Legislation • Council Regulation 1/2003, available at: http://ec.europa.eu/competition/antitrust/overview_en.html, last visited: 20-02-2013. • Nederlandse Veewet [Dutch Law on Livestock], available at: http://wetten.overheid.nl/BWBR0001900/geldigheidsdatum_31-12-2005#TitelIII_1_Artikel7, last visited: 18-01- 2013. • Gezondheids en welzijnswet voor dieren [Dutch Law on Animal Health and Well-being], available at: http://wetten.overheid.nl/BWBR0005662/geldigheidsdatum_18-01-2013#HoofdstukXa, last visited: 18-01-2013. • Regulation (EC) No 2160/2003 of the European Parliament and of the Council of 17 November 2003 on the control of salmonella and other specified food-borne zoonotic agents, available at: http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003R2160:EN:HTML, Last visited: 18-01-2013. • Regulation (EC) No. 1774/2002 of the European Parliament and of the Council of 3 October 2002 laying down health rules concerning animal by-products not intended for human consumption, available at: http://eur- lex.europa.eu/LexUriServ/site/en/consleg/2002/R/02002R1774-20060401-en.pdf. Last visited:18-01-2013. • Regulations, Directives and other acts, available at: http://europa.eu/about-eu/basic-information/decision- making/legal-acts/index_en.htm, last visited: 18-01-2013. • Verordening hygiënevoorschriften pluimveeverwerkende [Productboard for Poultry and Eggs Regulation on Hygiene] industrie (PPE) 2007, available at: http://wetten.overheid.nl/BWBR0023512/geldigheidsdatum_17-01- 2013, last visited: 18-01-2013.
11.8 News(paper) articles • Agbroko, Ruona. (July, 25 2012). Poultry farmers seek 20% price rise. Financial Times. Available at: http://www.ft.com/cms/s/0/2f582d56-d66d-11e1-bd9c-00144feabdc0.html#axzz2CWCtnsEX. • Avicultura, Productores de pollos e integradoras firmal el Contrato de Integración, 5 October 2007, available at: http://www.avicultura.com/2007/10/05/productores-de-pollos-e-integradoras-firman-el-contrato-de- integracion/. • Baja un 10% el consume de pollo por la gripe aviar, 3 March 2006, available at: http://www.adnmundo.com/contenidos/turismoyambiente/gripe_aviar_0305061716.html. • BBC (October, 16 2012). Salmonella cases linked to liquid egg whites. News. Health. Available at: http://www.bbc.co.uk/news/health-19962583. • British Free Range Egg Producers Association (2008): Export dominated Netherlands free range market. Available at: http://www.theranger.co.uk/News/Export-dominates-Netherlands-free-range-market- Netherlands-special-part-1-of-4-_21274.html . • British Free Range Egg Producers Association (2011): Egg labelling confusion with Dutch barn eggs. Available at: http://www.theranger.co.uk/news/Egg-labelling-confusion-with-Dutch-barn-eggs_21661.html . • Disminuye un 18% el número de avicultores de puesta en España, 15 October 2012, available at: http://www.avicultura.com/2012/10/15/disminuye-un-18-el-numero-de-avicultores-de-puesta-en-espana/ • DutchNews.nl (October, 21 2010). Free range eggs voted the most misleading food term. Dutchnews.nl. Available at: http://www.dutchnews.nl/news/archives/2010/10/free_range_egg_voted_most_misl.php
61
Economic and Health Issues in the Dutch Poultry Sector
• El Mundo, España pierde un 30% de su producción de huevos por el bienestar animal, 22 March 2012, available at: www.elmundo.es/elmundo/2012/03/22/natural/13332407357.html. • El País, Los Negocios de la gripe aviar, 1 February 2004, available at: http://elpais.com/diario/2004/02/01/negocio/1075644210_850215.html#despiece1. • Ford, Richard. (2012). Morrisons gambles on GM chicken feed shift. The Grocer. Available at: http://www.thegrocer.co.uk/companies/supermarkets/morrisons/morrisons-gambles-on-gm-chicken-feed- shift/227510.article. • Infocarne, Acusan a SADA de poner al borde de laquiebra a 1.700 granjas avícuolas, Infocarne, 16/09/2008, available at: www.infocarne.com/noticias/2008/9/305_acusan_sada_poner_al_borde_quiebra_1700_granjas_av.asp. • Meurink, André. (2010). CBS- http://www.cbs.nl/nl- NL/menu/themas/landbouw/publicaties/artikelen/archief/2010/2010-kippen-2010.htm. • RSPCA (2011) Public do not understand battery cage law, 27th December 2011 Available at: http://www.rspca.org.uk/media/news/story/-/article/PublicDoNotUnderstandBatteryCageLaw_dec11. • Rural Naturaleza, El sector del huevo en España, 7 October 2010, available at: http://www.ruralnaturaleza.com/actualidad/noticias/el-sector-del-huevo-en-espa%C3%B1. • Spanish Chicken, Egg prices surge, 2 March 2012, available at: http://www.thepoultrysite.com/poultrynews/25044/spanish-chicken-egg-prices-surge. • The ever-changing face of European egg production, 27 June 2010, available at: http://www.wattagnet.com/The_ever-changing_face_of_European_egg_production.aspx. • Tuff, Deborah (2012). High egg prices. WTVY.com. Available at: http://www.wtvy.com/news/headlines/5600321.html. • Vilt, Europese melkboeren voeren sereen protest op dat twee, 16 december 2012, available at: www.vilt.be/Europese_melkboeren_voeren_sereen_protest_op_dag_twee?print=1. • WorldPoultry, Brazil from dormant giant to agribusiness powerhouse, 24 April 2012, available at: www.worldpoultry.net. • Zapping airborne Salmonella and Dust, Available at: http://www.ars.usda.gov/is/ar/archive/mar00/salm0300.htm, last visited 23-01-2012. • Ministerio de Medio Ambiente y Medio Rural Y Marino, Information from Spain on Highly Pathogenic Avian Influenza (H7N7). Update, 3-4 November 2009.
11.9 Websites • Actieplan Salmonella, Available at: http://www.pve.nl/wdocs/dbedrijfsnet/up1/ZuogivmIsD_Actieplan_SaCa_in_de_Pluimveesector.pdf, last visited: 18-01-2013. • Becker, Karen (2012). “Whole Egg Waste” – Unfit for humans, but fine for dogs and cats. Healthy Pets. Available at: http://healthypets.mercola.com/sites/healthypets/archive/2012/04/06/egg-product-as-pet-food.aspx, last visited 18.01.2013. • Blair, R. (2011). Are organic eggs healthier, safer? FoodLink. Available at: http://www.feedstuffsfoodlink.com/ME2/dirmod.asp?sid=&nm=&type=news&mod=News&mid=9A02E3B96F 2A415ABC72CB5F516B4C10&tier=3&nid=0F7A352F82B044439B94E710AE421462. • Centers for Disease Control and Prevention (2012). Avian Influenza (Bird Flu). Available at: http://www.cdc.gov/flu/avian/ . • EPA (2012): Sustainability. Basic information. Available at: http://www.epa.gov/sustainability/basicinfo.htm. • General information concerning NEPLUVI, Available at: http://www.nepluvi.nl/, last visited, 18-01-2012 • International Egg Commission. (2012). The World Egg Industry – a few facts and figures. Available at: https://www.internationalegg.com/corporate/eggindustry/details.asp?id=18&cid=24. • KAT handleiding voor legbedrijven, 2011, available at: http://www.verbeek.nl/uploads/KAT%20voorschriften%20bio%20bedrijven.pdf. • Nelisson, J. (2012). Newtricious. Vision, Mission and Strategy. Available at: http://www.newtricious.nl/index.php/en/newtricious/vision-mission-and-strategy.html. • Poultryhub. (2012). Feed Evaluation. Available at: http://www.poultryhub.org/nutrition/feed-evaluation/. • Rondeel (2012). Available at: http://www.rondeel.org/. • Sonac (2012). Available at: http://www.sonac.biz/. • The Poultry Site (2012). Available at: http://www.thepoultrysite.com/.
62
Economic and Health Issues in the Dutch Poultry Sector
• The Poultry Site (2012). Introduction. Available at: http://www.thepoultrysite.com/publications/1/egg-quality- handbook/3/optimum-vitamin-nutrition-of-laying-hens. • The Poultry Site 2009 February 27 – Natural mating and breeding (Breeder Management). • The World Bank. (2012). Data. Available at: http://data.worldbank.org/income-level/OEC. • Wakker Dier (2012). Available at: http://www.wakkerdier.nl/. • World Bank (2012). Health. Available at: http://www.worldbank.org/en/topic/health/overview. • World Poultry (2007). From costly egg waste to profitable product. World Poultry. News. Available at: http://www.worldpoultry.net/Home/General/2007/7/From-costly-egg-waste-to-profitable-product- WP001502W/. • World Society for the Protection of Animals (2012). Available at: http://www.wspa-international.org/. • Eurobarometer, http://ec.europa.eu/food/animal/welfare/euro_barometer25_en.pdf.
63
Photography: Christine van Basten-Boddin van Christine Photography: Sector. Poultry Dutch the in Issues Health and | Economic 2013 © February
Maastricht University Faculty of Law Institute for Corporate Law, Governance and Innovation Policies Bouillonstraat 1-3, 6211 LH Maastricht P.O. Box 616, 6200 MD Maastricht The Netherlands T: +31 (0)43 388 3040 F: +31 (0)43 388 4868 E: [email protected]
www.maastrichtuniversity.nl/icgi