Poultry International - August 2019 - 18

18 ❙ PoultryInternational

Ibarburu said this transition is
complicated from a financial standpoint because producers are investing
in the new housing system, and they
will have higher operating costs.
Producers are running into the
problem where retailers will buy some
of the cage-free eggs at a premium
cost, but not all of them. So, the
leftovers end up in the conventional
market, leaving the producer with a
smaller margin to generate revenue.
"The big problem we are facing
is that most of the pledges come
from the retailers. The retailers
give the consumers options and
[consumers] tend to buy what is less
expensive," he said.

PRODUCERS
WILL BE FACED
with huge
investment
costs to supply
retailers with
cage-free eggs
should they
move forward
with their
pledges.
If the retailers can't sell the eggs,
they're not going to continue to pay
a premium price. He noted that the
transition is easier for restaurants
and food manufacturers to make
because they're not presenting the
consumer with options.

Cage-free egg pledges and
predictions: www.WATTAgNet.com/
articles/37368

However, on the other side of
things, people looking for cage-free
eggs may only shop with retailers
who make the pledges.
"There might be less of a
problem once the retailers are
100% cage free because then the
consumers are not presented with
options," he said.
Transition can't happen overnight; it can take more than two
years before eggs can be produced
in a new house, Ibarburu said.
"That is why we need these
premiums in advance."

Is there more risk to come?
Ibarburu said there could be more
risk for egg producers in the future.
"Retailers may feel that the
pledges worked well for them and
then pledge to go free range," he said,
potentially pushing the industry into
the second round of investments.
"We don't know which direction
they're (retailers) going to take,"
he said. He added that those who
make egg production pledges are not
the ones at risk of a failed investment.

What about the
smaller producers?
"Smaller producers will need to find
a niche market," he said. Cage free

will create more competition for the
smaller producers from the bigger
producers because they are more efficient in some cases, Ibarburu said.
"If I was a smaller producer
producing cage-free eggs, now I
need to find something different
- it may be organic or pasture
raised," he said. This could allow
the smaller producer to create
a stream of revenue without
competing with the larger producers.

How will Proposition 12
impact production?
In 2018, 40 million people
consumed 11.4 billion eggs -
equivalent to the production of 39
million layers. California only has
14 million layers; under Proposition
12, the state will need to import at
least 67% of what it consumes.
"To supply the California
market, we will need a $2.3
billion investment," he said.
To supply California with just
enough product to supply its shell
egg demand, 27.2 million layers
would be needed, which is a $1.6
billion investment, he said.
"The problem is we don't know
how much of what is currently going
to California is already cage free. We
know there are 62 million cage-free
www.WATTAgNet.com ❙ August 2019

Ivaylo Georgiev | Freeimages.com

CAGE-FREE PLEDGES


http://www.Freeimages.com http://www.WATTAgNet.com/articles/37368 http://www.WATTAgNet.com/articles/37368 http://www.WATTAgNet.com

Poultry International - August 2019

Table of Contents for the Digital Edition of Poultry International - August 2019

Poultry International - August 2019
Contents
Editor’s Comment
Japan’s poultry production continues to grow
Italian consumers purchasing higher-value eggs
SPACE to focus on many issues facing agriculture
Big data: connecting the chicken and the egg
To meet cage-free pledges, US industry will need to grow 3 times faster
Mexico’s poultry industry growing despite uncertainty
UK poultry research facility opens with unique advantages
Working toward a better understanding of poultry dysbiosis
4 major additives that replace antibiotics with success
How to avoid bottlenecks when packing processed poultry
Advertisers’ Index
Marketplace
Poultry International - August 2019 - Poultry International - August 2019
Poultry International - August 2019 - Cover2
Poultry International - August 2019 - CT1
Poultry International - August 2019 - CT2
Poultry International - August 2019 - Contents
Poultry International - August 2019 - Editor’s Comment
Poultry International - August 2019 - 3
Poultry International - August 2019 - Japan’s poultry production continues to grow
Poultry International - August 2019 - 5
Poultry International - August 2019 - 6
Poultry International - August 2019 - 7
Poultry International - August 2019 - Italian consumers purchasing higher-value eggs
Poultry International - August 2019 - 9
Poultry International - August 2019 - SPACE to focus on many issues facing agriculture
Poultry International - August 2019 - 11
Poultry International - August 2019 - Big data: connecting the chicken and the egg
Poultry International - August 2019 - 13
Poultry International - August 2019 - 14
Poultry International - August 2019 - 15
Poultry International - August 2019 - To meet cage-free pledges, US industry will need to grow 3 times faster
Poultry International - August 2019 - 17
Poultry International - August 2019 - 18
Poultry International - August 2019 - 19
Poultry International - August 2019 - Mexico’s poultry industry growing despite uncertainty
Poultry International - August 2019 - 21
Poultry International - August 2019 - 22
Poultry International - August 2019 - 23
Poultry International - August 2019 - UK poultry research facility opens with unique advantages
Poultry International - August 2019 - 25
Poultry International - August 2019 - 26
Poultry International - August 2019 - 27
Poultry International - August 2019 - Working toward a better understanding of poultry dysbiosis
Poultry International - August 2019 - 29
Poultry International - August 2019 - 4 major additives that replace antibiotics with success
Poultry International - August 2019 - 31
Poultry International - August 2019 - 32
Poultry International - August 2019 - 33
Poultry International - August 2019 - How to avoid bottlenecks when packing processed poultry
Poultry International - August 2019 - 35
Poultry International - August 2019 - Marketplace
Poultry International - August 2019 - Cover3
Poultry International - August 2019 - Cover4
http://www.poultryinternational-digital.com/201908
http://www.poultryinternational-digital.com/201907
http://www.poultryinternational-digital.com/201906
http://www.poultryinternational-digital.com/201905
http://www.poultryinternational-digital.com/201904
http://www.poultryinternational-digital.com/201903
http://www.poultryinternational-digital.com/201902
http://www.poultryinternational-digital.com/201901
http://www.poultryinternational-digital.com/201812
http://www.poultryinternational-digital.com/201811
http://www.poultryinternational-digital.com/201810/
http://www.poultryinternational-digital.com/201809/
http://www.poultryinternational-digital.com/201808/
http://www.poultryinternational-digital.com/201807/
http://www.poultryinternational-digital.com/201806/
http://www.poultryinternational-digital.com/201805/
http://www.poultryinternational-digital.com/201804/
http://www.poultryinternational-digital.com/201803/
http://www.poultryinternational-digital.com/201802/
http://www.poultryinternational-digital.com/201801/
http://www.poultryinternational-digital.com/201712/
http://www.poultryinternational-digital.com/201711/
http://www.poultryinternational-digital.com/201710/
http://www.poultryinternational-digital.com/201709/
http://www.poultryinternational-digital.com/201708/
http://www.poultryinternational-digital.com/201707/
http://www.poultryinternational-digital.com/201706/
http://www.poultryinternational-digital.com/201705/
http://www.poultryinternational-digital.com/201704/
http://www.poultryinternational-digital.com/201703/
http://www.poultryinternational-digital.com/201702/
http://www.poultryinternational-digital.com/201701/
http://www.poultryinternational-digital.com/201612/
http://www.poultryinternational-digital.com/201611/
http://www.poultryinternational-digital.com/201610/
http://www.poultryinternational-digital.com/201609
http://www.poultryinternational-digital.com/201608
http://www.poultryinternational-digital.com/201607
http://www.poultryinternational-digital.com/201606
http://www.poultryinternational-digital.com/201605
http://www.poultryinternational-digital.com/201604
http://www.poultryinternational-digital.com/201603
http://www.poultryinternational-digital.com/201602
http://www.poultryinternational-digital.com/201601
http://www.poultryinternational-digital.com/201512
http://www.poultryinternational-digital.com/201511
http://www.poultryinternational-digital.com/201510
http://www.poultryinternational-digital.com/201509
http://www.poultryinternational-digital.com/201508
http://www.poultryinternational-digital.com/201507
http://www.poultryinternational-digital.com/201506
http://www.poultryinternational-digital.com/201505
http://www.poultryinternational-digital.com/201504
http://www.poultryinternational-digital.com/201503
http://www.poultryinternational-digital.com/201502
http://www.poultryinternational-digital.com/201501
http://www.poultryinternational-digital.com/201412
http://www.poultryinternational-digital.com/201411
http://www.poultryinternational-digital.com/201410
http://www.poultryinternational-digital.com/201409
http://www.poultryinternational-digital.com/201408
http://www.poultryinternational-digital.com/201407
http://www.poultryinternational-digital.com/201406
http://www.poultryinternational-digital.com/201405
http://www.poultryinternational-digital.com/201404
http://www.poultryinternational-digital.com/201403
http://www.poultryinternational-digital.com/201402
http://www.poultryinternational-digital.com/201401
http://www.poultryinternational-digital.com/201312
http://www.poultryinternational-digital.com/201311
http://www.poultryinternational-digital.com/201310
http://www.poultryinternational-digital.com/201309
http://www.poultryinternational-digital.com/201308
http://www.poultryinternational-digital.com/201307
http://www.poultryinternational-digital.com/201306
http://www.poultryinternational-digital.com/201305
http://www.poultryinternational-digital.com/201304
http://www.poultryinternational-digital.com/201303
http://www.poultryinternational-digital.com/201302
http://www.poultryinternational-digital.com/201301
http://www.poultryinternational-digital.com/201212
http://www.poultryinternational-digital.com/201211
http://www.poultryinternational-digital.com/201210
http://www.poultryinternational-digital.com/201209
http://www.poultryinternational-digital.com/201208
http://www.poultryinternational-digital.com/201207
http://www.poultryinternational-digital.com/201206
http://www.poultryinternational-digital.com/201205
http://www.poultryinternational-digital.com/201204
http://www.poultryinternational-digital.com/201203
http://www.poultryinternational-digital.com/201202
http://www.poultryinternational-digital.com/201201
http://www.nxtbookMEDIA.com