SEPRA News
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Avian Influenza
Below is the official statement from the Scottish Executive informing everyone of the easing of the AI restrictions.
EASING OF AVIAN INFLUENZA RESTRICTIONS Thursday, 20 April 2006
Subject to no further cases of High Pathogenic Avian Influenza H5N1 being found, the Scottish Executive is working on the following assumption:
The Wild Bird Protection Zone put in place on 5 April following confirmation of highly pathogenic H5 Avian Influenza in a Whooper swan in Cellardyke harbour will be lifted at 00.01 on 22 April. This is 21 full days after samples were taken from the wild swan.
The Wild Bird Protection Zone will then become part of the Wild Bird Surveillance Zone. Restrictions on the movement of poultry and other captive birds remain in force but controls on movement of poultry products within this area will cease.
Following completion of a programme of veterinary
inspections, with negative results, of all premises with poultry in the Wild
Bird Surveillance Zone and taking account of epidemiological advice,
restrictions imposed in this zone, will be lifted at 00.01 on 1 May.
It is intended that the Wild Bird Risk Area (east of the M90/A90 stretching from the Forth Bridge to Stonehaven) will lapse at the same time as the Wild Bird Surveillance Zone on 1 May subject to a veterinary risk assessment.
NOTES TO NEWS EDITORS
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The Wild Bird Protection Zone covers an area of 3 km radius from the site where the dead swan was found. The Wild Bird Surveillance Zone covers an area of 10 km radius from the site where the dead swan was found.
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The Wild Bird Protection and Surveillance Zones were made under the Avian Influenza (H5N1 in Wild Birds) (Scotland) Order 2006.
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The Wild Bird Risk Area was made under the Avian Influenza (Preventative Measures) (Scotland) Regulations.
BOCM PAULS
Those of you who receive the paper copy of this report will have noticed the new Market Report sheet and its ‘blue’ print.
We again have to record our thanks to BOCM PAULS for their generous contribution to your weekly newsletter. It is contributions like this that keep our costs down and allow your Chairperson and Committee members to travel and spend time putting your views to Government.
Thank you. BOCM PAULS and David Beckley.
Free range eggs
I told you last week how Morrison was offering free-range eggs in a nine pack and at a reduced price.
It would appear that most supermarkets had a free-range egg offer in store.
How has this has happened when I am told that free-range eggs are not plentiful in the UK?
Going back a few years, maybe 20 plus, I well remember when the enhanced price for brown eggs over the price of white eggs was whittled away with the change by producers from white to brown layers. Is this happening with free range now ?
I reprint this from the British Free Range Egg Producer Association web site.
Free-range eggs are now being offered in supermarkets for less than the price of cage eggs. This bizarre situation follows a further spate of price-slashing by major retailers. Asda led the way last month when, as part of its ongoing ‘rollback’ campaign, it reduced the cost of a dozen own-label medium free range from £1.48 to £1.
Asda’s price cut on eggs came on the back of similar reductions on milk and bananas, and led to the retailer’s food trading director, Darren Blackhurst, to claim: “Whether it’s milk, bananas or free range eggs, customers are in no doubt which supermarket gives them more for less every day of the week.” The free-range offer was heavily advertised in national papers.
BFREPA chairman Tom Vesey described the move as “absolute madness” and one that seriously threatened future supplies of free-range eggs.
But within days Sainsbury’s had followed Asda and matched the £1 a dozen offer, while Tesco, which sells eggs in a 10-pack, cut the price for ten medium free range to 83 pence. And while Tesco customers choosing the 10-pack were being charged 83p, so strange was the retailer’s pricing policy that shoppers picking up a 6-pack of the same size were still paying 84p. That meant it was cheaper to buy a box of ten and throw four eggs away rather than purchase half a dozen. Tesco has since reduced the price of a 6-pack of medium free range to 82p.
Meanwhile, a 6-pack of mixed weight cage eggs in all three retailers was still selling for 54p, representing an 8 per cent premium over free range on a per-dozen basis.
BFREPA immediately fired off a letter to the retailers warning them that producers were already being squeezed financially and this latest round of price slashing would ultimately lead to supermarket shelves being empty of free-range eggs.
“Free range egg producers have over the past twelve months seen a steady reduction in returns in the face of ever increasing production costs,” wrote Tom Vesey. “The net result is that current margins are verging on little more than break-even for the bigger, more efficient producers and below cost for those running smaller traditional-type operations.”
The letter went on to spell out that with the average free-range unit now costing in excess of £250,000 there was little enthusiasm for expansion by producers in the face of low returns.
We are presently in discussion with the packers regarding producer returns but it is clear that any prospect of an improvement is dependent on the packers achieving an increase in their selling price. This, they inform us, is unlikely against a background of aggressive retail pricing,” wrote Tom, urging retailers to review pricing strategies in order to avoid a future shortage as demand for free range eggs continued to increase.
Robb Farr, buyer for Sainsbury’s, responded by saying he had taken on board BFREPA’s concerns “and indeed shares them”. “We have not actively sought to deflate the market,” wrote Mr Farr, “but we do have a responsibility to our customers to offer products at fair prices. With an increasingly competitive retail environment this means we may decide when and where necessary to review our prices.”
Sainsbury’s says it continues to work very closely with suppliers to ensure there is a fair return for all involved with the production and supply of eggs. ”We are fully committed to growing and supporting the free range egg industry, as we believe this is where the future of the market lies,” said Mr Farr.
When the production of brown eggs became much more profitable because of the price differential between white and brown, marketers and producers reduced their prices in an effort to secure more trade. Consequently production of white eggs was reduced as more went into brown egg production. Again the marketeer ruled the market and the same is happening in the present free range / cage battle.
I believe that as more free range eggs are produced the price gap will reduce until free range eggs sell at a price comparable to cage ?
There’s no use pleading with retailers to give a fair return, as they know that supplies are available. Just look at the milk situation. The low prices today are partly due to the fact farmers went out and produced more milk than was required.
Look at broiler prices today. Surplus broiler meat from within the EU has meant low prices.
I believe one UK broiler seller asked for a price rise this month, and was delisted for that product by the supermarket seller.
Royal Highland Show
I see that there will be no poultry exhibits at this year’s Royal Highland Show.
The British Pig and Poultry Fair takes place on Tuesday 9th and Wednesday 10th May. Entry is free.
...and finally
Some more egg cartoons from my neighbour...
Eggs-press Eggs-hibition
The Falkirk ‘bird-flu’ wheel picture came from my grandson Brian. I am sure many of you will have been to see the Falkirk Wheel which I believe is one of the top tourist attractions in Scotland. The view from the top is spectacular.
Dennis Surgenor
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