2012 Changes in Egg Legislation Set to Impact on the Baking Industry

From January 1st 2012, E.U. Legislation will be introduced that will dramatically change the Egg industry and which will undoubtedly impact on the baking sector.

The E.U. legislation will require egg suppliers to move from the use of battery to enriched cages, in response to continued pressure from animal rights groups, who are concerned with the welfare of producing chickens. Enriched cages are larger than those previously used (750 cm² compared to 550cm² per bird) and provide perches and room for nesting.


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As a result of this change, suppliers will experience a 5% increase in production costs in 2012, which equates to an estimated cost of £6 Billion to implement the changes industry wide. Inevitably, this will be passed on to the customer.

Supply may also be an issue, as an estimated 31% of suppliers, mainly in Eastern European countries like Romania, have found it hard to find initial investment to make the necessary changes to their businesses. Unfortunately, this is due to their domestic market being less discerning regarding the morality of intensively farmed produce.

It is likely that this will lead to an E.U. wide shortage of legally produced eggs, which could lead to black market trade. Rob Evans, Egg Buyer for BAKO, comments "Our BAKO Own Label range comes from a source that has prepared for the changes well in advance, but supply volatility may initially de-stabilise price.

We want to assure our customers that our BAKO Own Label Egg Products are fully compliant with the new legislation and we will continue to keep it at the best possible price."

As well as working hard to ensure our current supply meets legislation, BAKO has also ensured that alternative supplies will be available. The British Egg Industry Council has highlighted that the U.K. market will see a lesser impact from the current changes, as they point out that Free Range (including organic) is a choice many consumers already make, resulting in a rise of 16.4% to 37.9% between 1999 and 2008.

BAKO envisages this will be closer to 50% in 2012. Nicola Wood, P.R. & Marketing Executive, comments "We realise the real need to meet wider market concerns for our customers, which is why we are proud to announce that we will be launching a BAKO Own Label Free Range selection in the New Year."

She goes onto to say, "This will allow our customers to buy a quality product at a low price and allow smaller businesses to promote by utilising the marketing resources made available by the bigger retailers, who will push to bring Free Range to the forefront, to avoid the inevitable back lash from animal rights groups that claim these changes do not go far enough."

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