Profitability of the Egg Production in Alter Native Housing Systems (Aviary/Barn)

Szőllősi, László – Molnár, Szilvia – Szűcs, István – Erdős, Adél Dorottya

Keywords: table egg, non cage system, efficiency, costs-profit, Hungarian case study, M11, Q12

The concepts of animal welfare, environmental movement and health awareness have spread through developed countries around the world. For this reason, new legislative requirements and new consumer needs have appeared both in livestock and in egg production. Consumers buy eggs at an increasing level, which originates from cage-free production idea that our health, the animals and the planet can be protected by these technologies. However, these consumer opinions are often based on consumer myth rather than on science. For example, eggs which originate from free range system are more delicious, healthier and more environment-friendly than caged eggs is a common myth believed by the public. Therefore, in the European Union, non-cage housing systems represent an increasing market share, although their proportions are different in each Member State. In Hungary, the ratio of hen stock producing eggs in cage systems is 83% currently, but it is estimated that the market share of alternative systems will increase in the future.
The aim of the study is to determine how profitable is egg production in alternative housing systems in the given (2016–2017) economic and market conditions in Hungary. The authors made an economic calculation (deterministic simulation model) based on case study and primary data collection. Data was collected from two Hungarian farms, which produce in alternative (aviary and barn) housing systems. The economic calculation did not proceed analytical records but used technological parameters. Production and technological parameters comprehended farm size, applied hybrid, change in the animal stock, egg production and feed consumption. In addition, input-output prices, unit costs were also used.
One of the analysed farms uses aviary technology, owns 10 thousand Lohmann Brown Lite hybrid. The other farm produces eggs with Tetra SL hybrid in barn technology and has 3 thousand hens. For the two types of farms, the values of the examined parameters (length of egg production period, average egg production intensity and egg production per hen) were different. On the aviary farm the length of egg production period was 73 weeks, the average egg production intensity was 74% and egg production per hen was 360 eggs/hen, while on the barn farm these parameters were 65 weeks, 85% and 382 eggs/hen. The daily feed consumption was also varied. This indicator was 110 g/hen on the aviary farm and 145 g/hen on the barn farm. The results of the calculation show that production value per main product and the direct cost per main product (Class A egg) were 7.80 Eurocent/egg and 7.24 Eurocent/egg on the aviary farm, while on the barn farm were 9.87 Eurocent/egg and 7.85 Eurocent/egg. The gross margin of unit egg was 0.56 Eurocent/egg on the aviary farm and 2.02 Eurocent/egg on the barn farm. The generalization of the obtained results is limited due to the case study nature of the study. However, it can be stated that egg production was profitable on both farms using alternative technology during the period considered. This finding is also foregoing in different sales conditions due to smaller farm size. It should also be noted that due to the different housing systems and livestock of the two examined farms, the production and economic indicators also showed significant differences.

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