The Plan has three main purposes:

The Plan should be regarded as a living document that will be updated as circumstances require. The Plan is intended to provide a basic framework through which all sectors of the industry and providers of R&D support will be encouraged to work towards achieving the objectives of the Plan and thus further enhancing the development of the Australian egg industry.
 

VISION AND MISSION STATEMENTS
 
RIRDC – Egg Program is committed to assisting the development of the Australian egg industry in the global market place.

The vision RIRDC shares with the Australian egg industry is therefore:
 

Industry Profile and Outlook

The World Scene

Egg production worldwide has increased in recent years. Production growth was strongest in third world countries consistent with improved living standards. China accounted for a majority of the growth, with production rising to 13.995 million tonnes, or 233 billion eggs based on an average of 60g per egg, in 1996, a 13 per cent increase on the previous year.

Production also expanded in the United States in 1996, increasing 1 per cent, while egg production in most other regions has remained relatively stable, although production fell in Russia by 7 per cent, in Mexico by 2 per cent and in the EU by 1 per cent.

World egg consumption, comprising both table eggs and egg products was forecast to increase in 1996. As was the case with production, the greatest growth in consumption is expected in China, where it is forecast to grow by 7 per cent. Consumption was expected to expand only slightly in the US, driven primarily by increases in the use of egg products in the food service and restaurant industries, and was actually forecast to fall in the EU and in the former Soviet Union.

World trade in eggs and egg products is dominated by the US, a trade which grew by over 21 per cent in 1996 to a record $US150 million. Although the US ships egg and egg products to over 40 different countries world wide, their export focus is strongly concentrated in Japan and Hong Kong.

(Source: Watt Poultry Statistical Yearbook, 1997 Issue, Watt Publishing Co., 122 Wesley Ave., Mt Morris, Illinois 61054-1497 USA)

The Australian Egg Industry

The Australian egg industry is technically advanced with the majority of production from specialist producers.

Between 90 and 95 per cent of Australian eggs are produced in a caged system in purpose built housing designed to optimise output and minimise cost without compromising bird welfare. Other production to suit specific market needs is accomplished in barn, deep litter and free range systems.

The industry continues to adjust after deregulation, which began in NSW in 1989. Deregulation has made industry entry and exit considerably easier and there has been a significant increase in vertical integration and industry concentration. Current estimates indicate that approximately 950 establishments produce eggs in Australia.

Since deregulation, there has been virtually no formal data collected on egg production in Australia. Industry estimates place the layer flock size at 11.5 million birds, of which an estimated 14 per cent are 'backyard' non-commercial flock. An estimated 8 per cent of commercial birds are not kept in cages.

Apparent consumption of eggs in Australia is steady at around 156 eggs per capita per annum. This consumption is low compared with other Western countries. Approximately 15 per cent of Australian egg production goes to further manufacturing and processing, one area considered to have strong growth potential.

The dismantling of some quarantine barriers in recent years has resulted in a significant increase in imports of egg products. The volume and value of shell egg and egg product exports have also increased. However, exports only represent about 1 per cent of domestic production.

RIRDC – Egg Program

Program Management

The development of the Australian egg industry is closely linked to a strong commitment to R&D. The R&D program is managed by a Research Manager who is assisted by an Advisory Committee and is accountable to RIRDC. RIRDC is accountable to the Commonwealth government and AEIA.

At the time of writing this Plan the Advisory Committee for the RIRDC – Egg Program is composed of a Chairperson, an RIRDC Member appointed by the Corporation and seven Members chosen by a selection committee.

The selection committee chooses Members for the Advisory Committee following a public call for applications. Members are chosen on the basis of their skills and experience in the research, production, processing and marketing sectors of the industry. Advisory Committee Members serve a term of three years but may serve more than one concurrent term. The term of current Members of the Advisory Committee expires on 30 June 1999.

The Egg Industry Research and Development Fund

The RIRDC – Egg Program has available two separate sources of funds. The major source of funds available for supporting R&D is the Research and Development Fund which is sourced from compulsory levies paid by the industry on chicks supplied by the hatcheries. These funds are matched dollar-for-dollar by the Commonwealth government. This means the general public is a major stakeholder in the activities of the RIRDC – Egg Program. The investment of these funds is governed by legislation and must be approved by the Commonwealth government.

Objectives

The objectives of the RIRDC – Egg Program, as defined by legislation are:

• To increase the economic, environmental or social benefits to members of the egg industry and to the community in general by improving the production, processing, storage, transport or marketing of eggs and egg products.
• To achieve sustainable use and management of natural resources.
• To make more effective use of the resources and skills of the community in general and the scientific community in particular.
• To improve accountability for expenditure on research and development activities in the egg industry.

The second source of funds available to the RIRDC – Egg Program is the Egg Industry Development Fund. This is a trust fund that contains money sourced from levies through a Commonwealth scheme that was liquidated in 1987. Expenditure from this fund is not matched by Commonwealth funding. This fund is managed by RIRDC – Egg Program on behalf of the industry and is largely used to fund expenditure that is considered to benefit the development of the industry.
 

Links With Other Research and Development Organisations

Some of the issues faced by the egg industry have implications for other sectors of the community, in particular other rural industries. The RIRDC – Egg Program has close links in collaborative research activities with the RIRDC – Chicken Meat Program. Cooperative research projects have also involved the Grains, Dairy and Pig Research and Development Corporations and the Meat Research Corporation. The Advisory Committee encourages the appropriate involvement of other R&D organisations to ensure the most efficient use of R&D funds.

Key Issues for the Australian Egg Industry

A major component of the development of this Plan was consultation with stakeholders. The first major component of this consultation was a workshop involving 24 participants including members of the RIRDC – Egg Program Advisory Committee, AEIA, growers, marketers, product manufacturers, hatcheries, feed industry, veterinarians, technical experts/consultants, research providers and trainers. At this workshop a number of key issues were identified that currently impact or are likely to impact on the Australian egg industry.

These issues must be considered and understood in setting the industry's R&D priorities.

Industry Regulation, Structure and Economic Policy

As mentioned earlier the industry continues to adjust to egg marketing deregulation. There is increased integration into breeding and hatching, grading, packing, marketing and distribution operations. Closer links are also developing between producers and input suppliers (including breeding and hatching companies, feed manufacturers, pharmaceutical companies, vaccine suppliers, private veterinarians, carton manufacturers) as well as customers. New or expanded forms of industry organisation have also emerged including cooperatives, a public company and businesses with interests primarily based on food service and wholesaling.

Further vertical integration and concentration are expected, as well as further dilution of ownership from producers to other investors. The number of controlling players in the industry is likely to decrease and an increase in contract growing arrangements is feasible.

With continued deregulation, the industry can be expected to focus on self-regulation in areas such as animal welfare and food safety.

A benchmarking study to be conducted during 1997-98 should provide useful strategic advice to assist in further industry restructuring. Recommendations arising from this study can be expected to provide strategic guidance to the Committee and the industry and can be expected to facilitate further industry growth, improved competitiveness and increased profitability.

New Markets and Products

There is an opportunity for per capita egg consumption in Australia to grow towards consumption levels in other Western markets. There is a need to support this opportunity with carefully planned market research for further sales growth in areas such as:

Public Health and Food Safety

The dietary cholesterol debate led to a significant loss of confidence by consumers. A strong research effort has done much to repair the reputation of the egg. However, there remains a need for further scientific evaluation of the health benefits of eggs particularly for the young and elderly.

Food safety has emerged as a much greater consumer concern in recent years. Although the Australian egg industry already has a well developed appreciation of its importance, the need to reassure consumers means that food safety should remain an area of strong focus for the industry in the coming years through promotion of best practice for handling, storage, processing and usage of eggs.

Flock Health

The Australian egg industry has a "clean, green" image and an excellent animal health and public health record.

The reduction in some quarantine barriers in recent years, increased global travel, greater industry concentration and the emergence of new industry entrants, especially those catering for niche markets, makes the industry more vulnerable to existing and new disease agents. This requires an ongoing commitment to improved understanding of disease characteristics, including aetiology and epidemiology, as well as the adoption of measures to improve flock management.

In a more open market and as new, more virulent diseases emerge, a high priority must be given to flock health monitoring and management.

Feed Availability and Nutrition

Issues of feed ingredient availability and flock nutrition will continue to play an important role in industry development.

In recent years, a constructive working relationship has been developed with other livestock and grains research and development organisations. These organisations can play an important role in ensuring suppliers have a better appreciation of the significance of the feedgrains market and the requirements of end user industries, such as egg producers.

Further tightening is likely to occur in world grain markets coupled with strong growth in domestic feed demand. It is likely that over time the industry will see increased integration between feed milling and egg production.

Husbandry and Welfare

Animal welfare is an area where both government policy and consumer sentiment can affect the industry significantly. Although animal welfare has yet to become as strong an issue in Australia as it is in the EU the Australian egg industry is keen to obtain objective assessments of the impact of management on flock welfare. Research outcomes can be expected to play an important role in policy development and provide industry and consumers with the opportunity to base decisions on factual rather than emotional arguments.

Integration of best practice standards for animal welfare, and possibly other aspects of industry practice, into a certifiable audit system are now recognised by industry as a high priority. There is a role for R&D providers in working with the industry to ensure that producers and staff fully appreciate the importance of developing, implementing and reviewing industry practices to promote community confidence and support.

Environmental Issues

A strategic review of environmental and sustainability issues has recently been completed and a related study that aims to identify land use conflict issues is under way due to increased land use pressures and increased acceptance of the need to manage resources in an environmentally sustainable manner. These reports will provide the Advisory Committee with guidance on research and development priorities in these areas.

This area of focus will become increasingly important as urban sprawl and people seeking alternate lifestyles in semi-rural areas put pressure on the industry to move from outer urban areas to country areas.

Training and Information and Technology Transfer

The benefits from R&D will not flow unless the information and technology transfer stage is successful. Therefore, ongoing support in this area will be required to ensure the industry is able to adopt the latest information and technology. Some R&D will require technology transfer support to ensure that R&D findings are deliverable and delivered. New and existing communications mediums and their actual and potential usefulness by industry stakeholders should be evaluated.

Industry training will become an increasingly important area of focus. Effective training and information and technology transfer are essential in improving industry efficiency, competitiveness and profitability.

The industry considers that increased participation in international conferences by industry and scientists is a key to improving our position in the worldwide industry. Likewise, a more regular inflow of international experts to industry conferences is considered important for industry development.