Moark donates 1 million eggs to US food banks

Land O'Lakes subsidiary Moark LLC has donated more than 1 million eggs to nine food banks across the U.S. to do its part in the fight against hunger.
The company donated the eggs in conjunction with Feeding America's network of food banks and as part of Land O'Lakes' First Run program, which is part of the company's larger Feeding Our Communities initiative. Moark's contribution marks the second egg donation in the third year of the First Run program. As part of the program, Land O'Lakes and its subsidiaries have committed to donating truckloads of fresh product to food banks quarterly to help alleviate hunger nationwide.
In 2012, the donated eggs are being distributed among the following food banks:

• Los Angeles Regional Food Bank; 260,000 eggs
• Second Harvest Food Bank, San Bernardino; 43,200 eggs
• Greater Boston Food Bank; 288,000 eggs
• St. Louis Area Food Bank; 288,000 eggs
• Ozarks Food Harvest, Springfield, Mo.; 54,000 eggs
• Connecticut Food Bank; 96,000 eggs
• Connecticut Foodshare; 96,000 eggs
• Gemma E. Moran United Way/Labor Food Center, New London, Conn.; 96,000 eggs
• Good Shepherd Food Bank, Auburn, Maine; 288,000 eggs 

Research challenges existing data on egg consumption

Dr. Mitch Kanter

Eggs are experiencing a “rebirth” among many health and nutrition experts due to recent research challenging existing dogmas about nutrition and health, stated Dr. Mitch Kanter, executive director of the Egg Nutrition Center, in a presentation during the Simmering Issues Workshop at the 2012 Midwest Poultry Federation Convention in St. Paul, Minn. Previously considered unhealthy, eggs are now being extolled for their nutrient density, high-quality protein, and relatively low cost in comparison to other protein sources.
Much of this rebirth is being driven by data indicating that egg intake does not promote cardiovascular disease in the majority of the population, according to Kanter. Recent studies are indicating the positive impact of a higher protein diet for modulating serum glucose and insulin levels, both of which can ultimately impact obesity rates and cardiovascular disease risk.
Further driving this resurgence are studies suggesting that breakfast might be the most important meal of the day for consuming protein.  Coupled with data demonstrating that higher protein intakes can increase satiety, enhance muscle tissue growth and re-synthesis, and minimize muscle loss in the elderly, the future for egg consumption in the U.S appears bright.

EIC releases US national flock performance study

Part 11(EEU34) of a U.S. national flock performance study titled "Flock Profiling Software and Replacement Program Evaluation–2010" has been released by the Egg Industry Center and the University of California-Riverside.
The report provides a benchmark for the production of white egg strains with tables depicting livability, hen-day egg production, egg weight and feed consumption. The report also shows grade distribution, feed costs and revenue by grade for the period during which the survey was conducted. The live-bird production parameters are of value to all producers, although it will be necessary to adjust financial data to reflect the recent escalation in feed costs and the prevailing value of eggs. Interpretation of the figures presented should take into account the specific structure, housing systems of a farm or complex when comparing production parameters with those depicted in the study.

Poultry study: No general consensus demonstrating the superiority of one housing system over another

Dr. Peter Holt will publish a white paper in an upcoming edition of Poultry Science entitled “The Impact of Different Housing Systems on Egg Safety and Quality.” Co-authors include Dr. R. H. Davies, of the Veterinary Laboratory Agency Weybridge in the UK; Dr. J. Dewulf, of the University of Ghent in Belgium; Dr. Richard Gast, of the USDA-ARS- SEPRL; Dr. D.R. Jones, of the USDA Egg Safety and Quality Research Unit; Dr. Douglas Waltman, of the Georgia Poultry Laboratory; and Dr. K.L. Willian, of Tuskegee University.
The survey data on the prevalence of SE appears contradictory and inconsistent with differences between results obtained in Europe and the U.S. As previously noted in Egg Industry, adherence to effective egg quality assurance programs and the adoption of vaccination can markedly influence the recovery of SE from the environment of flocks and eggs. The authors concluded that there is no general consensus demonstrating the superiority of one housing system over another with respect to either food safety or quality.
Although minor differences in nutrient content of eggs may be recorded, comparisons between conventionally caged and free-range hens are obscured by lack of details concerning compositions of diets fed to hens which were surveyed. It is known that omega-3 fatty acid content, vitamins A, D and E can be enhanced by appropriate dietary supplementation. With respect to safety, contamination with chemicals and pesticides may be a problem with eggs derived from hens allowed free access to the outside of barns.
The authors concluded, “Many factors besides housing type affect the safety and quality of eggs. These effects need to be taken into account before conclusions can be made regarding the efficacy of different housing systems in relation to egg safety and quality.” The Holt et al. article will not resolve any ongoing debate between the opponents of confined housing and the industry.

US egg recall should act as warning to others

The recall of over 500 million eggs in the U.S. due to salmonella outbreaks should act as a warning to producers worldwide not to drop their guard, said Klaus Torborg of Lohmann Animal Health.
He continued that there were countries that had successfully tackled salmonella, noting that the UK had the lowest levels of salmonella in laying hens of any major egg-producing country.
In 2004/05, when an EU baseline study was conducted, the prevalence of Salmonella enteriditis and Salmonella tphimurium in UK laying hens was 7.9%. By 2008, the most recent year for which figures are available, this had dropped to 1%.
Torborg added that it was not surprising that the EU had used the UK model for its control program.

Food safety may fall through audit cracks, system questioned

Questions are being raised in the direction of food safety audits after Congress said Wright County Egg, the company at the head of America's largest egg recall in history, received a "superior" audit rating just two months before 1,600 people were sickened with salmonella-tainted eggs from the company.
Regulations from various organizations, including the U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA), provide oversight, but actual audits are often conducted by third parties who the auditees themselves pay for. "If a company is purchasing an audit, they may be unwilling to pay for a bad result and unwilling to rehire an audit company that produces the negative result," said Caroline Smith DeWaal, food safety director at the Center for Science in the Public Interest.
The industry, said Smith DeWaal, currently relies largely on voluntary standards that have been created by industry groups.

Hispanic market has potential strength

An article by Peter Francese in Advertising Age stresses the potential for sales to the Hispanic market. The article is extracted from a white paper “Hispanic America 2010” detailing the demographics and purchasing power of this important segment of the population.
It is anticipated that the 2010 Census will record 50 million Hispanics in the U.S., representing the second-largest consumer market. The average Hispanic family has four members compared to 2.9 members in the average Caucasian family. More than a third of Hispanics in the U.S. are under 18 years of age and at least 44% of the demographic is conversant in English.
Concentration of Hispanics is a reality which can be applied to developing distribution channels. With 76% of the target population in eight states and 50% in two states (California and Texas), this highlights the opportunity for direct marketing of eggs and derived products. Indirect evidence suggests that Hispanics are significant consumers of eggs justifying directed branding, promotional, product and distribution strategies to enhance consumption.

California bans imported eggs that don’t comply with Prop. 2

California Governor Arnold Arnold Schwarzenegger signed Assembly Bill 1437, backed by the HSUS, on July 6. This legislation bans importation of eggs from out-of-state producers that do not comply with the provisions of Proposition 2, which was passed in 2008.
The bill brings about questions of the potential compliance of enriched cages with the provisions of Proposition 2. J.S. West has taken the initiative of investing in a unit in anticipation of compliance. If this is in fact the case, the future of enriched cages may appear brighter as existing suitable facilities will be converted and new units will be erected.
AB1437 may stimulate recaging of birds in other states with the enriched system to supply the California market. The approval of enriched cages by the American Humane Association would help acceptance of the system and could represent a compromise in any subsequent proposition to repeal or modify Proposition 2.

Ohio Livestock Care Standards Board creates website

The Ohio Livestock Care Standards Board has established a new website. The website contains news relating to the activities of the board, the biographies of board members, ongoing legislation and a schedule of meeting and events.
Stakeholders in the egg industry are advised to monitor the website, which provides guidance for other state organizations.

Egg export statistics for Q1

Combining data released by the Egg Industry Center and the U.S. Poultry and Egg Export Council derived from USDA-ERS and Department of Commerce figures, it is possible to quantify recent egg exports. For Q1 of 2010, 426,000 cases of shell eggs were exported with a value of $8.4 million representing an FOB price of 59¢ per dozen. This volume is an 8% increase over the corresponding Q1 of 2009. For the first quarter of this year, exports represented the equivalent of 2.08 million hens assuming 80% flock production. Effectively 0.7% of the output of the national flock is exported in shell form.
During the first quarter of 2010 export of egg products was equivalent to 1.1 million cases representing a 70% increase over the first quarter of 2009. The value of exports for the first quarter was $30.4 million which equates to an equivalent shell egg value of 84¢ per dozen from which yield loss and the cost of processing and handling must be subtracted.
Adjusting USAPEEC data to the first quarter of 2010, it is calculated that the FOB value of egg products exported was $2,958 per metric ton. The USAPEEC figures for the first 4 months of 2010 show a 6.5% decline in unit revenue compared to the corresponding 4 months of 2009 ($3,174 per metric ton).
For the first 4 months of 2010, Hong Kong and Canada combined represented 57.8% of shell egg exports. For the same period, Japan and Canada combined accounted for 45.8% of egg product shipped.

Moba launches robotics line for egg industry

Moba, a producer of egg grading and handling equipment, has teamed up with Motoman, a Yaskawa subsidiary and global supplier of industrial robots, to develop robots and robot applications for the egg industry.
Moba will introduce the line at VIV-Europe 2010, which takes place April 20-22 in Utrecht, the Netherlands. Moba will also offer robotics demonstrations at its Dutch factory during VIV-Europe.
The Moba Robotics series will include robot cells with case packing, display loading, tray- and case-palletizing and de-palletizing abilities. Moba said in a press release that its new robot applications form “toolbox” that allows the company to create customized solutions for its clients.

Emerging retail trends could affect egg industry

Two significant marketing trends are emerging which may have some impact on the U.S. egg industry.
The first relates to the accelerating pace of adopting house brands. Wal-Mart is a leader in this initiative, recently announcing that national brands Hefty and Glad would be replaced by private label products in both Wal-Mart and Sam’s Club stores. In a subsequent announcement, Wal-Mart indicated that McCormick spices would be dropped in favor of a private label. This is significant, since McCormick is thought to market 11% of its production through the Wal-Mart chain.
The second trend is toward smaller stores, especially in urban areas. Meijer’s, Target and Wal-Mart have all announced smaller stores either as a test or as a commitment. Smaller stores would have reduced cold storage, which could require more frequent deliveries, either from a distribution center or, in the case of some suppliers, increased direct-to-store delivery.

Second annual egg industry issues forum scheduled for March

The Iowa State University Egg Industry Center and Purdue University will hold the Second Annual Egg Industry Issues Forum in Chicago, Ill., on March 26, 2010. This one-day event will consider the state of animal welfare standards, the economic outlook for the egg industry, FDA food safety regulations and environmental issues.
More details are available on the Egg Industry Center Web site.

Integrated pest management for effective fly control

With the development of resistance to many forms of control, alternate methods must be developed. Read the full article.

Cal-Maine Foods posts lower profit for FY 2009

Cal-Maine Foods, the nation's largest egg producer posted net earnings of $79.5 million on sales of $928.8 million for FY 2009. Cal-Maine shares dropped 10% at the market close ($27.10) as analysts had incorrectly predicted sales of $235 million (actual $213 million) for Q4 and EPS of $1 (actual 43 cents).
Net profit represented a 47% decline in income over FY08 ($151.9 million) but the company achieved a 1.5% increase in sales over the previous year. The earning per share value was virtually halved from $6.41 to $3.34. The decline in financial performance was attributed to lower egg prices which compared unfavorably with 2008 together with high feed costs which collectively reduced gross margin by 31% from 32% in FY08 to 22% in FY 2009.
Long term debt increased by $31 million in FY09 but was offset by a $43 million increase in fixed assets represented by acquisitions and expansion of existing facilities.
In a comment on the most recent results, Fred Adams Jr., chairman and CEO, stated that "sales of eggs at the retail level have been very strong with food service and restaurant volume continuing to lag, reflecting the current economic environment." He added, "our management team is performing well."

Compromise on California Proposition 2 evaporates

California House Bill AB 1437, which was introduced by Jared Huffman, Assemblyman for San Rafael, to attempt compromise between opposing parties with respect to Proposition 2 has been dissolved.
Both the Humane Society of the United States, which promoted Proposition 2 and the California Egg Industry which opposed it, rejected the bill. The bill would have allowed the Department of Public Health to develop standards for stocking density in cages in order to clarify the wording of Proposition 2, which passed with a 27% margin in November 2008.
HSUS objected on the grounds that AB 1437 would alter the intent of Proposition 2 to effectively ban cage confinement of hens and the industry was disinclined to allow any government agency to develop standards for housing flocks.

USDA 'organic' label questioned

Jack Cooper of the Food Industry Environmental Network has circulated a commentary based on a July 3, 2009, Washington Post report alleging that products labeled with the "Organic" seal may not comply with the standards of the National Organic Program.
The Inspector General's Office of the USDA has initiated an investigation into the oversight of private certifiers and the level of adherence to the rigid standards imposed by the statutory regulations. At issue is whether consumers paying a premium for the USDA Organic seal are in fact assured that all the requirements relating to non-GMO ingredients and freedom from pesticides and synthetic fertilizers are met.

US egg farmers reduce salmonella

As a result of the egg industry's proactive efforts, consumers have benefited from reduced rates of Salmonella enteritidis and other food safety concerns, reports Business Wire. The Centers for Disease Control and Prevention have documented reductions in salmonellosis in states where producers have put egg production safety practices into effect. The programs currently used by egg farmers are designed around food safety and consumer health much in the same way the FDA's new program has been developed.
FDA started in 1999 on egg production safety regulations to address concerns with Salmonella enteritidis in eggs. In the 10 years leading up to these newly announced regulations, egg producers continued to improve egg safety through preventative measures in housing and storage while they waited for the final Federal rule, reports state.
During the FDA's development process, United Egg Producers made suggestions to improve the original proposal for egg safety regulations and, while many guidelines were adapted, some suggestions that the industry still considers important were not accepted.
Egg producers are confident the program will further reduce illness associated from contaminated eggs. They also note that it is important to understand the estimates of reduced illnesses published by FDA are based on statistical extrapolations used to estimate the total number of illnesses, not on a count of illnesses that have actually occurred in the recent past.