The European Egg Industry in Transition - a status report - Prof. Dr. Hans-Wilhelm Windhorst WING University of Vechta, Germany Paper present at the IEC Berlin Conference September 23rd, 2015

Agenda: The changing political and economic situation in Europe The changing role of European and EU countries in global egg production The dynamics of egg production in the European sub-regions The present situation of housing systems for laying hens in Europe Case studies: the impacts of directive 1999/74/EU on the egg industry in Germany, the Netherlands and Spain

The changing political and economic situation in Europe 1. The changing political and economic situation in Europe

Indicators of the ongoing transformation: The political and economic transformation in the former USSR and Eastern Europe The political crisis in Southern Europe The instability at the eastern rim of Europe Directive 1999/74/EU The animal welfare challenge

The changing role of European 2. The changing role of European and EU countries in global egg production

The development of the global laying hen population between 2000 and 2013; data in mill. birds Continent 2000 2010 2013 Increase (%) Africa Asia Europe N America* CS America Oceania 378 3,091 687 496 361 18 505 4,146 788 567 477 515 4,494 913 571 520 21 36.2 45.4 32.9 15.1 44.0 16.7 World 5,030 6,501 7,034 39.8 * Canada, Mexico, USA

The changing contribution of the continents to the global laying hen population between 2000 and 2013 * Canada, Mexico, USA

The development of global egg production between 2000 and 2013; data in 1,000 mt Continent 2000 2010 2013 Increase (%) Africa Asia Europe N America* CS America Oceania 1,916 29,211 9,480 7,159 3,249 199 2,668 37,485 10,472 8,222 4,471 254 3,082 39,982 10,993 8,595 5,355 315 60.9 36.9 15.3 20.1 64.8 58.3 World 51,214 63,572 **68,262 33.3 * Canada, Mexico, USA ** 69,2 mill. t estimated for 2014

The changing contribution of the continents to global egg production between 2000 and 2013 * Canada, Mexico, USA

The development of egg production in Europe and the EU (28) between 2000 and 2013 compared to the development of global egg production Region 2000 2013 Production (1,000 t) Share (%) World 51,214 100.0 68,2621 Europe 9,480 18.5 10.933 16.1 EU (28) 6,662 13.0 7,010 10.3 FAO

Note: The European laying hen inventory increased by 226 mill. birds or 32.9 % between 2000 and 2013 The contribution of Europe to the global laying hen inventory decreased from 13,7 % to 13.0 % in the analysed time period. European egg production grew by 1.45 mill. t or 15.3 % between 2000 and 2013. Europe´s contribution to global egg production fell from 18.5 % to 16.0 % in the analysed time period.

The dynamics of egg production in the European sub-regions 3. The dynamics of egg production in the European sub-regions

The development of the laying hen inventory in the European sub-regions between 1990 and 2013 FAO

The development of egg production in the European sub-regions between 2000 and 2013 Region 2000 2013 Production (1,000 t) Share (%) Eastern E. 3,799 40.1 4.938 45.2 Western E. 2,924 30.8 2,871 26.2 Southern E. 1,789 18.9 1,065 18.0 Northern E. 967 10.2 1,159 10.6 Europe 9,479 100.0 10,933 FAO

The seven leading EU member countries in egg production (2013) MEG

The ten leading European countries in egg production in 2000 and 2013 Country Production (1,000 t) Share (%) Russian F. 1,895 20.0 Russian F. 2,284 20.9 France 1,038 10.9 Ukraine 1,121 10.3 Germany 901 9.5 944 8.6 Italy 686 7.2 893 8.2 Netherlands 668 7.0 775 7.1 Spain 658 6.9 743 6.8 UK 569 6.0 703 6.4 497 5.2 672 6.1 Poland 424 4.5 558 5.1 Romania 263 2.8 308 10 countries 7,296 80,2 9,001 82.3 Europe 9,480 100.0 Europa 10,993 FAO

The ten leading EU member countries in shell egg production in 2014 Country Production (1,000 t) Share (%) France 1,012 13.7 Spain 870 11.9 Germany 854 11.5 Italy 820 11.1 UK 731 9.9 Netherlands 729 9.8 Poland 575 7.8 Romania 360 4.9 Belgium 178 2.4 Czech Rep. 130 1.8 10 countries 6,259 84.5 EU (28) 7,410 100.0 FAO

The Russian Federation and Ukraine were the leading Note: The Russian Federation and Ukraine were the leading two countries in European egg production in 2013 with a share of 31.2 % in the overall European production volume.* Western European countries (France, Germany and Netherlands) could not maintain their share of 2000 (27.4 %), it decreased to 23.4 % in 2013. The four leading EU member countries contributed 48.2 % to the overall production volume in 2014. _________________________________________________ The political instability in Ukraine may have reduced the production volume considerably since 2013.

The present situation of housing systems for laying hens in Europe 4. The present situation of housing systems for laying hens in Europe

Remember: Directive 1999/74/EU demanded: No installation of conventional cages from 2003 on. Conventional cages prohibited from December 2012 on.

Share of housing systems in EU laying hen husbandry in 2009 MEG 2010, p. 97

Laying hens in conventional cages in EU member Countries (June 2012); data in mill. birds Total: 43.5 mill. EU Commission

Share of housing systems in EU laying hen husbandry (2013) MEG 2014

Total laying hen inventory: 378.49 million birds Share of housing systems in EU laying hen husbandry (2014) Housing system Share (%) Enriched cages 55.7 Barn 26.6 Free range 13.9 Organic 3.8 Total laying hen inventory: 378.49 million birds MEG Newsletter September 3rd, 2015)

Share of housing systems in laying hen husbandry in EU member countries (2013) Total: 380.5 mill. hens MEG 2014

Housing system in European laying hen husbandry (2013) EUROSTAT, IEC, national data, FAO

The development of egg production in selected EU member countries between 2010 and 2014; data in 1,000 t Country 2010 2011 2012 2014 France 954 873 856 1,012 Spain 918 937 862 870 Germany 656 774 825 854 Italy 852 830 805 820 UK 718 709 694 731 Netherlands 711 729 Poland 637 587 538 575 MEG 2015

Note: In December 2012 the EU Commission declared that Directive 1999/74/EC had been implemented successfully. In 2013, 57.6 % of the laying hens was kept in enriched cages, 26.4 % in barn systems and 16.0 % in free range systems. The situation differed, however, considerably between member countries. The transformation to alternative housing systems resulted in a considerable dynamics of the laying hen inventory, egg production and price development for shell eggs.

The impacts of directive 1999/74/EU in Germany, the Netherlands 5. Case studies The impacts of directive 1999/74/EU on the egg industry in Germany, the Netherlands and Spain

Germany

The development of the number of layer farms (> 3,000 places) and the laying hen inventory in Germany between 2000 and 2013 MEG 2003, 2008, 2011, 2014

The development of the German self-sufficiency rate for shell eggs and egg imports between 2000 and 2013 MEG 2003, 2008, 2011, 2014

The development of Germany´s shell egg imports between 2008 and 2014; data in mill. pieces Country of origin 2008 2010 2012 2014 Change (%) Netherlands 4,586 5,814 4,528 4,637 + 1.1 Poland 436 679 1,005 772 + 77.1 France 154 221 35 371 + 140.9 Belgium 235 431 305 + 29.8 Spain 243 463 101 153 - 37.0 Czech Rep. 71 59 26 49 - 31.0 Others 312 595 249 442 + 41.7 Total 6,093 8,271 6,319 6,459 + 6.0 ZMP 2008, MEG 2011, 2015

Netherlands

The development of shell egg production in the Netherlands between 2000 and 2014 Year Production (1,000 t) Index (2000 = 100) Self-sufficiency (%) 2000 614 100.0 228 2003 463 75.4 180 2006 615 100.2 221 2009 665 108.3 313 2012 690 112.4 307 2013 704 114.7 308 2014 729 118.7 n. d. ZMP 2003, 2008; MEG 2015

The leading countries of destination for Dutch shell egg exports in 2000, 2005, 2010 and 2012; data in mill. pieces Country of destination 2000 2005 2010 2012 Germany 4,067 4,275 5,553 4,661 Belgium 215 217 337 302 France 373 148 119 230 Switzerland 120 177 197 Un. Kingd. 386 211 92 164 Others 1,164 672 722 1,011 Total 6,325 5,700 7,020 6,565 PVE 2013

Spain

The development of the Spanish egg production between 2008 and 2014; data in mill. pieces Year Production Index (2008 = 100) 2008 12,896 100.0 2009 13,166 102.1 2010 13,339 103.4 2011 12,995 100.8 2012 11,409 88.5 2013 10,845 84.1 2014* 11,788 91.4 * estimated MAPA 2014, MEG 2015

The development of the Spanish laying hen inventory between 2008 and 2013; data in 1,000 birds Year Laying hens Index (2008 = 100) 2008 49,995 100.0 2009 50,593 101.2 2010 51,109 102.2 2011 49,494 99.0 2012 43,643 87.3 2013 38,409 76.8 MAPA 2014

The development of Spanish shell egg exports to Germany between 2008 and 2013; data in mill. pieces Year Exports Index (2008 = 100) 2008 244.3 100.0 2009 356.9 146.7 2010 452.9 197.6 2011 182.8 78.0 2012 101.6 43.4 2013 145.7 62.2 MAPA 2014

Share (%) of total exports Spanish shell egg exports to non-EU countries in 2013; data in t Country of destination Exports Share (%) of total exports Angola 2,379 2.0 Mauretania 2,316 2,0 Libya 1,971 1.7 Israel 1,152 1,0 Andorra 708 0.6 Others 3,893 3.3 Total 12,419 10.6 MAPA 2014

Note: The earlier banning of conventional cages in Germany not only had far reaching impacts on the laying hen inventory, on egg production and egg imports in this country but also in the Netherlands and Spain. When the German egg industry recovered from the transformation to alternative housing systems faster than expected, the egg industry in the Netherlands and Spain suffered from an egg surplus and lasting low prices. In addition, the Spanish egg industry had to cope with the economic crisis.

6. New challenges

The EU egg industry has to find solutions for the following challenges: banning of beak treatment for laying hens banning of the killing male layer chicks Growing risk of the introduction and dissemination of highly pathogenic AI virus strains

Thank you for your attention!