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Australian Egg Industry
Industry Overview
Based on ABARE and Australian Bureau of Statistics (ABS) figures, Australian chicken egg production in 2005-06 was around 195 million dozen eggs from an estimated 13 million egg laying hens. The Gross Value of Production for the egg industry in 2005-06 is estimated to be $340 million, up from $335 million in 2004-05.
There is an estimated 423 specialist egg farms in Australia. According to the ABS, New South Wales was the largest egg producing state with 29 per cent of production, followed by Victoria (28 per cent), Queensland (21 per cent), South Australia (9 per cent), Western Australia (8 per cent), Australian Capital Territory (2 per cent), Tasmania (2 per cent) and Northern Territory (1 per cent).
- Each state and territory government has statistics and production information available on their agriculture websites.
Results from Australian Egg Corporation Limited’s (AECL) 2006 employment survey reveal the Australian egg industry directly employs around 2890 people in full and part time positions.
In recent years the Australian egg industry has benefited from the establishment of the AECL, working in conjunction with the Australian Government, to ensure the Australian egg industry meets increasing consumer expectations in the areas of quality assurance, food safety, labelling and animal health and welfare.
In particular, AECL has done much to promote the health benefits of eggs through gaining approval to use the Heart Foundation’s healthy eating ‘Tick’ on fresh hen shell eggs produced in Australia.
Market Segments
Approximately 85 per cent of eggs are sold in shell form through grocery/retail chains and wholesale to the food service sector, with the balance processed into liquid, frozen and dried egg products for use in the food service and processed food sectors.
As at December 2006 the average retail price for 1 dozen eggs (700g carton) in Sydney was $4.13 (ABS).
The value of exports in 2005-06 was $4.27 million, mostly as processed egg products. Egg product export destinations are Singapore, the United States of America and the Philippines.
Due to quarantine protocols Australia only imports processed egg products. Imports in 2005-06 were valued at $7.5 million. The main import sources (by value) are the United Kingdom, Canada and New Zealand.
Australian Egg Corporation Limited (AECL)
Under the Egg Industry Service Provision Act 2002 the Australian Government has declared AECL as the egg industry services body for the Australian egg industry. A funding agreement between the Commonwealth and AECL became effective on 1 February 2003.
AECL is a public non–listed company established under corporation law and is mainly funded through statutory levies and Australian Government matching research and development funding.
AECL aims to create an industry operating environment that assists to minimise barriers and costs for Australian egg producers and to maximise benefits and revenue for the industry and the community through integrated marketing, research and development and policy services.
AECL has progressed well through its establishment phase and first few years of operation in accordance with its obligations under the funding agreement and its constitution.
Every levy-paying egg producer is entitled to be a member of AECL at no cost and exercise voting rights as defined under the company constitution.
Statutory Levies
Research and Developement, National Residue Survey and Animal Health Levies
Levies totalling 7.87 cents per laying chicken placement are imposed and collected under the Primary Industries (Excise) Levies Act 1999, the National Residue Survey (Excise) Levy Act 1998 and the Primary Industries Levies and Charges Collection Act 1991 where 1000 or more laying chickens are hatched at a hatchery in one year.
The overall levy is split to accommodate research and development (R&D), residue testing and animal health issues, as follows:
- 7.2 cents per laying chicken is directed to the AECL for R&D;
- 0.4 cents per laying chicken is directed to the National Residue Survey, and
- 0.27 cents per laying chicken is directed to the Australian Animal Health Council.
AECL spent $1.583 million on egg industry R&D projects in 2005-06, compared with $1.555 million in 2004-2005.
Since 1 February 2003 a levy has been payable on the commercial production of eggs in Australia to provide funding for egg promotion purposes for the industry.
The levy is collected on laying chickens at 32.5 cents each, bred or purchased for use in the commercial production of eggs.
Levy is payable by the producer of the eggs and is collected by the seller of the laying chickens, i.e. the hatchery or in an integrated operation (where there is no purchase), when the chickens are placed in the egg production facility. The Levies Revenue Service receives the levy payments and forwards them to the AECL.
The promotion levy is imposed and collected under the Primary Industries (Excise) Levies Act 1999 and the Primary Industries Levies and Charges Collection Act 1991 and is additional to the R&D, NRS and Animal Health levies described above.
AECL spent $2.585 million on egg industry promotion projects in 2005-06, compared with $2.667 million in 2004-2005.
Emergency Animal Disease Levy
In accordance with the Emergency Animal Disease Response Agreement (EADR), EADR levies for the egg and poultry industries were introduced on 1 April 2003 at a zero levy rate. Levy rates can be activated as required to fund the costs of disease outbreaks.
Following Newcastle disease outbreaks at Meredith, Victoria and Horsley Park, New South Wales in 2002, a levy rate of 1.5 cents per day old laying chicken was activated for a two-year period between 1 July 2004 and 1 July 2006. The levy enabled the egg industry to repay its liability to the Commonwealth for underwriting the costs of the outbreak.
Product Integrity, Animal and Plant Health Division is responsible for managing the EADR levies to fund the containment costs of disease outbreaks.
Egg Product Labelling
In addition to compulsory product description and nutritional information labelling requirements, the egg industry has agreed to voluntarily identify the production system under which eggs are produced.
The national egg labelling Standards were endorsed by the Agriculture and Resource Management Council of Australia and New Zealand (ARMCANZ now Primary Industries Ministerial Council) in March 2001. The Standards were developed jointly by the egg industry and state/territory and federal governments.
The Standards require a full definition of the egg production system as stated in the Model Code of Practice (see below) to be printed in a legible manner on the front of the carton (ie. side which faces the consumer when cartons stacked for retail sale).
The AECL has compiled the Egg Labelling Guide – Guide to Australian laws and regulations for egg producers, August 2006, which includes all relevant egg labelling requirements.
Quality Assurance
AECL has established Egg Corp Assured (ECA), a national egg quality assurance program designed to help commercial egg producers develop an approved quality assurance program for their business.
Egg Corp Assured addresses issues including food safety, biosecurity, animal welfare, egg labelling and environmental sustainability. These programs must be audited by a registered third party auditor.
As at January 2007, 79 egg businesses have been accredited to the ECA program, with a further 20 currently seeking accreditation. In total this represents 76 per cent of the national layer flock. AECL is aiming for over 80 per cent of egg businesses being compliant within the next three years, which would represent over 90 per cent of the national flock.
New Welfare Code of Practice
In Australia, guidance governing the use of layer hen cages up to year 2000 was provided in the Code of Practice for the Welfare of Animals –Domestic Poultry 3rd edition (CSIRO 1995). In August 2000, ARMCANZ agreed on a number of resolutions considered to improve the welfare of caged hens, including:
- All new cage systems commissioned from 1 January 2001 must provide a floor space of 550 sq cm per bird including the baffle.
- All cage systems that do not meet the 1995 standards are to be scrapped on or before 1 January 2008, unless they are modified by then to meet the contemporary standards at that time.
- All cage systems that comply with 1995 standards, or if constructed after 1995 the standards current at the time of construction, are to have an economic operative life of 20 calendar years from established date of purchase but must comply with the contemporary standards after that time. Cages which cannot be adapted to these new standards must be scrapped.
ARMCANZ agreed that these resolutions should be reflected in an updated Model Code of Practice.
The fourth edition of the Model Code of Practice for the Welfare of Animals - Domestic Poultry was endorsed by Primary Industries Ministerial Council, the successor to ARMCANZ, at its meeting in May 2002.
The State Governments have resolved to implement the new layer hen cage standards through legislation.
Avian Influenza
For comprehensive information on Avian Influenza as it relates to the poultry industry and more generally to Australia, please refer to the ‘Avian Influenza’ webpage created by Product Integrity/Animal and Plant Health area of the department.