10/02/2012 09:30:24
Director of Policy report - 10th February 2012
I concluded my last month’s report by saying that I would update you on a variety of initiatives that your Council is considering to deal with low free range egg prices. Contracts, branding, rewards for information on illegal imports and other proposals were discussed. I have been instructed to continue work on the development of a range of producer contract options, and as part of the process, to create a benchmarking offer and a format of costings that can be agreed across the supply chain.
It may be helpful to provide some background on my remit. The Director of Policy acts on the instructions of the Chairman under the guidance of the Council. As such I can propose policy and action it if agreed by the Chairman and Council. The Council is the sounding board that guides both the Chairman and Director. Any members unhappy with BFREPA’s policies or wanting to share their own policy ideas must make his or her views known through their Council representative, of which there are two for each region (contact details are listed on the front of the Ranger). These proposals can be placed on the agenda of a Council committee for debate and if the Chairman judges that there is sufficient consensus, he will delegate the policy work to the Director of Policy. Critical emails and forum comments directed at myself should therefore be redirected to the relevant Council representative for consideration of Council, where policy is agreed.
Compliance with the EU cage ban rumbles on slowly, albeit in a positive direction. News of the Czech ban of illegal cage imports from Poland must be heartening news for BEIC’s case in its judicial review against Defra. At the same time the European Commission has started infringement proceedings against 13 non-compliant states by writing letters of formal notice, which is the first stage in legal proceedings. The non-compliant EU states have two months to respond with information on their compliance with the Directive. If they fail to provide an adequate response, the Commission will issue a ’Reasoned Opinion’ demanding compliance within 2 months, failing which the case will be referred to the European Court of Justice. Slow, I know, but the law works this way and there is nothing we can do about it when we do not want to give the EU any more powers.
While 14% of the EU production remains non-compliant, the cage ban has had an impact on EU colony and barn egg prices. Figures produced by the Commission show that there has been a drop in the supply of eggs and an increase in prices in recent weeks. EU egg prices are currently 20% higher than the average for January 2007-11. In particular there has been a 75% hike in the price of eggs for breaking between week 1 of 2011 and week 3 of 2012.
However the UK egg price has not followed the EU trend line. In the first half of 2011 UK egg prices were around 5% higher than the EU average price but when EU prices rose sharply in November and December 2011, UK prices moved little to end up nearly 20% below EU prices. While this is disappointing the EU market should influence the UK colony market which, as we know, forms the base for the free range premium egg. Work has started on obtaining up to date data on chick placements for free range and this should enable us to better forecast the supply of pullets and free range eggs entering the market.
BFREPA Roadshows
A new meeting in the North West region has been added to the series of UK roadshows announced last month. This is on 5 March at the Westmorland County Agricultural Society, Lane Farm, Milnthorpe, LA7 7NH.
To help with catering, members and non-members wishing to attend a roadshow must advise the Council member chairing the meeting of at least one week in advance to guarantee some food and a place. Members unable to attend, or anyone attending who would rather not ask a question on the night, can send in a written question to the Chairman. Contact details are below. All meetings start at 7pm with the exception of 5 March, which is 7.30pm.
27 February. Exeter Court Hotel, Kennford, EX6 7UX.
Contact: John Warne - warnefarm@yahoo.co.uk. 01398 341531.07929 835004
1 March - Albright Hussey Hotel Broad Oak, Shrewsbury, Shropshire, SY4 3AF
Contact: Myles Thomas – jmylesthomas@hotmail.com. 01743 821210
5 March – Lane Farm, Crooklands, Milnthorpe, Cumbria, LA7 7NH
Contact: Alan Dickinson – netherscales.dickinson@btinternet.com. 01768 484527. 07977 150141
7 March - Bridge Hotel Walshford Wetherby, North Yorkshire LS22 5HS
Contact: Charlie Stephenson – crsteph@hotmail.co.uk. 0113 263 8465. 07768 585500
13 March - Plumpton College, Ditchling Rd Lewes BN7 3AE
Contact: Mick Holdaway – mick@protechpoulry.co.uk. 07787 161792
15 March - Ravenwood Hall Hotel, Rougham, Bury St Edmunds Suffolk IP30 9JA
Contact: Jeff Vergerson – jveggs@supanet.com. 01263 862936. 07850 278588
22 March - Manor Hotel, Brecon Road Crickhowell, Powys NP8 1SE
Contact: Kevin Miles – Kevin.07@hotmail.co.uk. 01873 812183
27 March - Calcot Hotel, 98 Bath Road, Reading, RG31 7QN
Contact: Roger Gent – farmerroger@beedon.fsnet.co.uk. 07831 698212
4 April - Thainstone Centre, Inverurie, AB51 5XZ
5 April The Lodge, Carfraemill Lauder, Berwickshire TD2 6RA
Contact: John Retson – jsrservices@tiscali.co.uk. 07831 541703