Starting a Pastured, free range Egg Farm Introduction The free range egg industry has expanded rapidly and attracted both commercial and small scale farming interest. This developed into a long running battle over just what a free range egg was and, unfortunately, corporate interests have muscled in on demand and changed this farming system to something that does not meet with most expectations of what free range should be. It is time to move on and leave them to a descriptor that they themselves have devalued and relegated to supermarket shelves and price cutting wars. Pastured Eggs The pastured free range system of farming can be far more complex than initially expected and catches new entrants to this industry by surprise. As with any new industry going through the growth phase, pastured egg farming can look like an attractive prospect as it is perceived as an inexpensive way to get into agriculture, is quite often sold as a ‘business package’, and as something easy to do yet offers a high returns. The purpose of this booklet is to outline the issues that should be addressed in a proposal for a small scale pastured egg business and to identify potential risks and problems for those new to the industry. The Australian Egg Industry There are three recognized systems of egg production in Australia and the guidelines for these are set out in the ‘Model Code of Practice for the Welfare of Animals – Domestic Poultry 4thEdition’ (Model Code) and they are defined as: ‘Free-range: hens are housed in sheds and have access to an outdoor range Barn laid: hens are free to roam within a shed which may have more than one level Cage hens: are continuously housed in cages within a shed’ (Primary Industries Report Series 83, 2014) Barn Laid and Caged are terms that are better defined but are becoming less popular in the Australian market. There has been a growth of free range sales and the decline of other systems (Australian Egg Corporation, 2013). Campaigns by animal welfare advocates(RSPCA, 2014; Animals Australia, 2014) and feedback from consumers has seen one major supermarket commit to phasing out caged eggs from their branded lines of eggs (Woolworths Ltd, 2014). Welfare, Production, and Management Production Egg production is influenced by several factors such as the breed and strain of the bird, nutrition, mortality, health and management practices, age at point- of-lay, and age at peak of lay. Many small scale egg businesses choose to purchase new or replacement hens as point of lay pullets at about 18 weeks of age. If the decision is made to purchase day old chicks and raise them on farm, this practice will also increase the factors that will impact on overall productivity. The management of chicks is a lot more detailed than most think and their future life time egg production depends on how well they were raised. Disease must be managed, nutrition must be precise and the environment stress free. Other production factors to consider are location and access to markets, transport, available labour, feed availability and water supply. Large, commercial operations survive because of economy of scale, automated systems and they are often vertically integrated with their own breeder farms, hatcheries, transport, layer farms and grading facilities. The small scale producer must work to maximize their productivity to increase returns through maximising the number of eggs laid per hen, maintain egg quality, reducing feed cost through careful management and phase feeding, efficient management and access to niche markets. The number of eggs laid per day per hen will vary due to seasonality, day length, nutrition and the age of the hen. There a lot of things that could make your hens ‘go off the lay’ and send you broke if you do not understand how they might happen. Lay rates are usually calculated as a percentage of eggs laid relative to the size of the flock. It is important to record daily egg numbers to be able to accurately assess the hens’ performance. A guide is to keep the overall lay rate above 75%. Most birds are culled when their lay rate decreases to 60 – 70%. Sometimes birds are kept to 50% depending on ability to fill orders and when replacement stock are available. Small farms will be able to clean and package their own eggs on site but must be aware of the regulations and food safety standards that are in place both nationally and on a state level in regard to washing, grading and storage of eggs. Cold storage will be required and if the operator is to deliver their eggs, refrigerated transport will also be a necessity. Licenses are also usually required. There are several free range accreditation systems available to producers that all have similar standards for the production of free range eggs and hen management and have a focus on animal welfare and consumer concerns. Only PROOF focuses on pastured production. Having farm accreditation does assist with the marketing of eggs by offering the reassurance that someone else is looking over your shoulder and validating your claims. When you are selling direct or have personal contact with your clients this may not seem necessary, but, this industry is expanding rapidly and you need an advantage over your competitors. Many retailers are now insisting on accreditation so that they can demonstrate to their customers that you do meet their expectations. Poultry housing should be as mobile as possible to assist with management of the environment and the pasture. Flock sizes are generally 2,500 or less for layer hens in a true pastured system. Sheds should be designed for ease of relocation, appropriate interior environment for the hens and with adequate nesting and perching available. Small hen houses can still be fitted with rollaway nest boxes or automated egg collection systems. Labelling your eggs as Pastured Pastured is a term that is rapidly gaining popularity with consumers because it more accurately defines the conditions under which they expect their eggs to be produced. It also enables the producer to set themselves apart from what has now become a supermarket label, ‘free range’. When it comes to eggs, many producers have been led to believe that there is a legal requirement to label their eggs as either caged, barn or free range in line with the model code and this has caused a great deal of despair for those farmers that produce their eggs under such different conditions to the corporate giants that have taken over the term free range. Levelling the playing field will only serve to put small farms out of business and lead consumers down the same old path of deception. PROOF (Pastured Raised On Open Fields) has been a leader in steering a new direction for both egg and pork producers and is working to ensure that our farmers hold on to their rightful place in the market and in doing so act, on sound advice. PROOF has sought legal advice on the requirements for labelling on egg cartons and our producers are free to label their eggs as ‘pastured’ because there is no legal requirement to call them cage, barn or free range only*. The term pastured eggs would convey the impression that laying hens have reasonable access to and graze on pasture outside. The expression also conveys the impression that the diet of the laying hen substantially or meaningfully comprises of grass pasture (as opposed to exclusively relying on supplied feed stock), particularly if the term free range is used in conjunction with the term pastured. (If the term free range is included on your label you must comply with the new information standard when it comes into force. It will not be necessary for eggs simply labelled as pastured) On this basis, egg producers who use the term pastured eggs, must allow their laying hens access to grassy pasture to permit the hens to feed on grass in order to avoid contravention of the consumer protection laws. Our advice also recommends that to further mitigate the risk of contravening consumer law provisions, that more information about the meaning of ‘pastured eggs’ be provided on the carton by using the PROOF definition for pastured production or using the PROOF logo and website link available to PROOF licensees. It is very important farmers are able to offer proof that their production system is genuinely pasture based so as not to mislead consumers, but to also ensure that our farmers have secure and viable future. Learn more about PROOF Licensing on the website www.pastured.com.au While the Australian Egg Corporation has provided guidelines for producers that stipulated that the terms caged, barn or free range be used on egg cartons, this is a voluntary guideline. However, the Egg Corp Assured program does dictate that producers comply with the Egg Corporation guideline. So, the only restrictions on how production systems are described on egg cartons are if the producers are Egg Corp Assured or in the ACT. *except in the ACT Management Poultry are descendants of the red jungle fowl but through breeding and selection for traits that are more useful to human needs such as egg production, it has become necessary to make adjustments to the environment in which they are now kept and to supplement them with feed to cater for the increase in productivity. Housing can be expensive but the largest cost in producing an egg is supplying feed. For the pastured egg producer there will be an additional cost in supplying feed if the flock size is small and large quantities cannot be purchased, however, the premium paid for eggs sold into niche markets can absorb this cost.