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CONCLUSIONS and RECOMMENDATIONS
from the REPORTS
of
Recent NUFFIELD/BEMB SCHOLARS
MIKE TYERS' REPORT
Mike Tyers was awarded a Nuffield Scholarship
in 2007 to study:
"Ways in which poultry farmers
and other organisations can reuce their
eco-footprint".
A seven-page synopsis of Mike's study tour
findings can be seen by clicking
here.
MARK WILLIAMS REPORT
Mark was awarded a BEMB-sponsored Nuffield
Scholarship in 2005 to study "The
Effectiveness of Trade Associations in Influencing
Government Policy, with Particular Emphasis
on Animal Welfare"
Mark is the Chief Executive at the British
Egg Industry Council, an inter-profesional
trade association and the representative
voice of the UK egg industry. He grew up
on a poultry farm and completed the poultry
course at Harper Adams Agricultural College.
After experience working in the industry
he became a regional poultry advisor for
the NFU and later its egg specialist at
national level. In 1999 he joined BEIC.
He undertook his study tour believing that
the UK egg industry could learn from the
experiences of trade associations in other
countries with regard to how they have been
successful in countering proposed legislation
that could have been damaging to their industry,
be it on agricultural or other issues.
The CONCLUSIONS and RECOMMENDATIONS
from his Report are as follows:
-
My subject is both fascinating
and frustrating. Fascinating in that awareness
of animal welfare issues is a growing
phenomenon, albeit primarily confined
to the developed world at the present
time. Frustrating in that being employed
in the thick of it, emotion is often seen
to be clouding the issue, where science
should dictate policy development.
-
In the UK/EU a great deal
of time and effort was spent lobbying
between the publication of the Commission's
proposals for a new Directive in 1997
and its adoption by the Council in 1999.
Despite the industry's concerns, backed
up by the presentation of scientific evidence,
these were effectively ignored and the
result was Council Directive 99/74/EC.
-
My study has confirmed
that other countries have learned from
the EU's mistakes on animal welfare issues
as they pertain to laying hens. While
there are parallels that can be drawn
between the UK/EU and those countries
I visited, there are important differences
too. In particular, the attitude of government
to agriculture tends to be more supportive,
with policies formulated to suit. It also
helps when those not directly employed
in agriculture have a family member or
friend who is, thereby allowing for an
appreciation of production methods.
-
I thought that NAWAC's
attitude in NZ to concentrate on welfare
"outputs" (achieving the aim),
rather than welfare "input"
(defined as prescriptive standards), was
to be applauded. The fact that industry
was invited to draft the laying hen welfare
code helped to provide producer "buy-in".
Taken into account were: science, good
practice, the use of available technology,
consumer perspectives, the environment,
conservation, and the economic implications
of making changes. Probably one of the
most refreshing aspects of my study visits
was that both industry and regulators
support scientific research to justify
amendments to legislation. If the science
is inconclusive, this is acknowledged
and industry is not led down the wrong
path. Notwithstanding the "EU
Action Plan on Animal Welfare",
I sincerely hope that UK/EU policy-makers
will, in future, consider this option
as a realistic way forward.
-
It is naive of politicians
and policy-makers to suggest that the
additional costs the EU egg industry is
faced with, as it implements the new laying
hens Directive, can be absorbed or passed
on to consumers. What I find unacceptable
is that legislators have been prepared
to prohibit a system of production in
the EU, yet are not prepared to prohibit
products from being imported from that
system elsewhere, which is, incidentally,
increasingly becoming the norm in many
non-EU countries.
-
The European Commission
currently has the platform to defend the
EU animal welfare model, by negotiating
the inclusion of animal welfare standards
into a new World Trade Organisation agreement,
the negotiations on which are currently
taking place within the Doha Development
Round Agenda. However, in the face of
opposition from the majority of non-EU
countries, the subject does not even get
raised at negotiating meetings.
-
The concern of the EU
industry is that the increasing costs
of production, combined with further reductions
in import tariffs, are likely to seriously
undermine the efforts of the industry
in further raising standards of animal
welfare. While I believe that companies
marketing shell eggs can utilise to their
advantage their proximity to the marketplace,
this will not be the case in the fast-growing
egg product market (dried egg in particular),
which is where the EU industry is under
greatest threat. Here, price remains the
most important purchasing factor and unless
food manufacturers are able to achieve
a price premium in the finished product
for utilising non-cage eggs, inevitably
they will seek to source low-cost eggs
produced in conventional cages outside
the EU.
-
These double-standards
are likely to result in the export of
a significant
proportion of the egg industry to non-EU
countries, where there is generally no
animal welfare legislation in place. This
is confirmed by various economic studies
carried out by the egg industry, animal
welfare groups, and the European Commission.
Surely this cannot be allowed to happen
by default? I urge politicians and policy-makers
to act now and find an acceptable compromise.
-
This leads me on to my
final point. While it is commonsense,
yet often overlooked, it is important
to try and achieve agreement between interested
parties prior to legislation being proposed
(or during the consultative process).
It is often the lack of trust between
those with apparent opposing views that
can prevent compromise being achieved,
which could be taken to government thereby
mitigating what may be considered to be
extreme proposals.
RECOMMENDATIONS
- A trade association must be non-party political.
It must be proactive and positive. It must always
seek to anticipate future issues and act accordingly.
It must handle crisis management issues professionally
and forcefully. This will generate respect from
those it is seeking to influence.
- Whilst a trade association's principal purpose
is to represent the interests of its members
in discussions with policy-makers and regulators
(looking forward), it is important to keep its
members up to date with issues as they progress
(reporting back). There is nothing more frustrating
than looking behind and seeing no one there!
- Ensure there are effective lines of communication,
in particular an efficient up-to-date electronic
database of members which can be used to pass
on information and solicit a response almost
immediately. Utilise the available technology
- email and the internet.
- A trade association's membership is absolutely
vital when there is a need to respond on specific
issues, e.g. letter writing to government in
support of a key lobbying issue. Members must
therefore be "sensitised", but care
must be taken not to ask for their help too
often, otherwise it risks a limited response
on the vital issues.
- Ensure that the trade organisation has an
attractive website which is kept up-to-date,
thereby allowing opinion-formers easy access
to research industry concerns. Similarly, the
availability of promotional material, either
on the internet or in print, adds to the professional
image of an association.
- Consider the production of and circulation
to opinion-formers of standard briefing papers,
e.g. "This is what the industry does for
animal welfare, etc". This enables the
industry's case to be promoted, and acts to
balance opposing views.
- Invariably trade associations will not be
as well resourced as some pressure groups. This
means that they must closely watch legislative
developments and seek to influence policy-makers
at the earliest opportunity. One very effective
means of achieving this is to encourage legislators/policy-makers
and opinion-formers to visit facilities to see
first-hand how the industry operates.
- Policy-makers/legislators should be encouraged
to concentrate on animal welfare "outputs"
(achieving the aim), rather than on welfare
"inputs" (defined as prescriptive
standards).
- Industry should conduct research to provide
credible scientific data in support of its aims,
especially if it is unhappy with the direction
it is being given. Ideally this should be independent.
- Consider establishing Scientific Advisory
Committees (SAC). These can provide the necessary
degree of independence from industry, thereby
adding credibility. The SACs should encompass
a diversity of stakeholders.
- Effective lobbying is a skill requiring a
large amount of time input and great patience.
The trade association should prepare its case,
be clear and concise in what its objectives
are. It should consider the position of others.
It should get to know th right people and build
up long-term relationships with legislators/policy-makers.
It should be a (constructive) nuisance.
- As a greater number of politicians will be
urban-based in future, ensure that they too
are lobbied.
- Consider organising special events for politicians
and opinion-formers, either as one-offs, or
ideally annual, that can focus the trade association's
lobbying activities, e.g. an omelette lunch.
- Besides lobbying government, a trade association
should also seek to influence other interested
parties to explain and promote a particular
position. This would enable better understanding
of the industry position and, where possible,
enable a compromise to be reached. Government
would then be offered a compromise position
rather than two opposing positions, which should
remove the need for swingeing legislation.
- Ensure that the lobbying arm of a trade association
is adequately resourced. As previous Scholars
have reported, "lobbying is an investment,
not a cost". This is truer today than it
has ever been.
- Where possible, and recognising the necessity
for compromise, the intensive livestock industries
should work together on specific issues. This
adds clout.
- The recommendations above equally apply to
trade associations operating at UK and EU level.
***************
A full copy of Mark's Report may be obtained
from the Nuffield
Director.
NICHOLA MADELEY REPORT
Nichola was awarded a BEMB-sponsored
Nuffield Scholarship in 2003 to study Change
Management and Employment in the Egg Industry.
She left school at 18 and came
to help on the family farm setting up the
marketing and distribution of the eggs it
produced but records that "this stopgap
until I decided what I wanted to do has lasted
over 15 years!" . She is now responsible
for the day-to-day management of the total
farm business including poultry, marketing,
arable and holiday cottages. She feels that
managing development and the people employed
are two of the biggest challenges of running
a business, successful solutions to which
would benefit not only the owner but also
the staff.
The objectives of her study
were to find out
-
what are the the main challenges
facing the world egg industry
-
to look at some examples of
how different countries addressed these challenges
-
and to visit some of the main
players in the world egg industry and learn
their philosophies on managing change and
people.
The CONCLUSIONS and RECOMMENDATIONS
contained in Nichola's Report are given below:
CONCLUSIONS
- The benefits of cooperation are greater than
the sum of the parts. A company that has a team
of people working on a problem will create a
far more imaginative solution than an individual.
As an industry, having a united voice nationally
and internationally will help us influence many
of the changes we are faced with as we increasingly
live in a global village. The IEC encourages
international co-operation and a pooling of
ideas on research and PR. e.g. The Egg Nutrition
Centre's research is used around the world.
- Lobbying does get results. The American egg
industry is having to change, but is self-regulatory
in many instances and therefore are more in
control of its destiny. It does have a very
strong core in the UEP to lead them and continually
invest in lobbying.
- People have a fundamental need to belong to
something they can be proud of with guiding
values and a sense of purpose; so to attract
the best people make sure everyone understands
and believes in the core values. A manager's
role is to make sure employees are one of the
company's biggest assets and not a liability.
- To foster a culture of change and development
people need to feel secure so that change is
not a threat. This can be achieved through good
communication, organisational structure and
core values that are fixed in stone.
- The only constant in life is change, "resisting
change is like holding your breath as the result
with both is you die!": D.Peter Morris,
Royal College Cirencester. Employ good staff,
and pay them well. By making staff accountable
and watching the figures very closely managers
can let people get on with their jobs and still
be in control.
- Be a good communicator not just to people
in the company but also to all stakeholders.
- To run a successful business you need a have
a good organisational structure, vision and
an excellent understanding of money.
- It is not easy to be a leader and it requires
a great deal of personal emotional input.
"To get 24 carat gold you have to go through
the fire" : Bob Sparboe.
RECOMMENDATIONS
Although these recommendations are based on my
knowledge of the egg industry, they really apply
to all of agriculture.
- Many of the issues faced by the egg industry
are later faced by other sectors of agriculture.
Other sectors would benefit from an international
organisation to represent them on the world
stage.
- If agriculture wants to be more in control
of its future it needs to invest more in professional
lobbyists to influence the decision makers.
The welfare groups do this already to great
effect at all levels. UK agriculture needs to
increase its investment in lobbying for the
long-term future of agriculture.
- Company investment in training, not just on
the job training but personal development, will
help to attract and retain good staff as well
as increase productivity.
- Invest in pro-active and imaginative PR so
we can win the hearts and minds of the general
public. This is essential now that governments
are followers not leaders, and pressure groups
have an increasing influence.
- Different agricultural sectors face many of
the same challenges; by working together on
commonissues we can have a stronger more united
voice.
- Be passionate about what you do and enjoy
it.
A full copy of Nichola Madley's Report may be
obtained from the Nuffield
Director.
Nichola's email
address
LORNA AUCOTT'S REPORT
Lorna was awarded a BEMB-sponsored
Nuffield Scholarship in 2002 to study the
feasibility and future for organic egg production.
She has worked for Deans
Foods Ltd for the past 16 years and, during
that time, the company has developed into
the leading egg business in the UK. Her current
role within the company is to provide a technical
services function for the agricultural division
and also to support the sales and marketing
team in liaising with the major supermarkets
on agricultural issues and new product development.
The objectives of her study
tour were:
-
To compare and contrast the
organic egg markets in key EU countries versus
a non-EU country
-
Investigate what are the main
technical barriers, how these have been approached
and overcome.
-
Identify what research is
being carried out and whether it can be used
by the UK producer
-
Identify differences in certification
and legislation
-
Assess the influence of the
Supermarket and the Consumer on growth and
development of this sector.
She therefore visited the key
countries within Europe involved in organic
egg production (Germany, Austria and Denmark)
then, for contrast, visited a developing organic
egg market outside of the EU - which was New
Zealand.
The CONCLUSIONS and
RECOMMENDATIONS contained in her Report
are given below:-
CONCLUSIONS
-
A myth and reality situation
exists regards organic systems but does the
consumer really care?
-
A committed core of consumers
purchase organics on a regular basis. The
goal for retailers is to convert the occasional
purchasers and to overcome the barriers to
regular purchase.
-
A conflict often exists in
standards between the animal health and welfare
needs versus the environment, consumer expectations/perceptions.
It is often the animal that potentially loses.
Utopia is a dream - compromise is reality.
-
Too many logos exist. This
creates confusion, but harmonisation is unlikely
as sector bodies compete for business in a
maturing market.
-
Commercial organics under
EU and/or IFOAM are not viable long term if
there is pressure by the supermarkets to cut
the price of organics while the standards
imposed create an increasing production cost
base.
-
A two-tier organic system
is developing those supplying to supermarkets
with commercial constraints while the purist,
supplying direct or to niche outlets, would
suggest there is room for both to co-exist.
-
Certification bodies have
become centres of bureaucracy and paper-pushing
machines.
-
Interpretation conflicts of
the rules exist both at EU and individual
standard levels. This results in production
cost differences and could stifle development
as producers question economic viability.
-
Shortage of home-grown organic
cereals in the UK means that we rely on imports
with possible organic integrity issues. This
contrasts greatly to conventional production
often using locally sourced grain.
- The use of negative PR to knock conventional
versus organically produced products potentially
can damage the whole product area and can be
destructive in building relationships with producers
and industry.
-
Development of an alternative
to organics that can meet consumer reasons
for purchase : i.e. food safety, no residues,
non-GM, health and animal welfare, at a price
that is economically viable for all in the
chain.
-
Further develop the organic
working group of UK organic egg producers
to pull together practical experience and
use as a basis for challenging and lobby standards,
both at Sector Body and EU level.
-
Initiate a Producer Working
Group at EU level. This could help to share
practical knowledge and perhaps break down
communication barriers.
-
A clear need for research,
farmers and sector bodies to work closer together
to understand and overcome problems related
to bird health, welfare and nutrition in organic
systems.
-
Retailers have been the driving
force in the growth of organics but, for growth
to be maintained, rising costs of production
and limitations on egg size profile imposed
by standards must be recognised and supported.
-
The role of government in
supporting organic sector development and
ensuring a level playing field in Europe is
key. The replacement of UKROFS with the new
Advisory Committee for Organics presents a
new focus. The egg industry must continue
to work with this new committee to ensure
that UK interests and concerns on legislation
are taken back to Brussels.
A full copy of Lorna Aucott's Report may be obtained
from the
Nuffield Director.
STEVEN
PRITCHARD'S REPORT
Steven
was awarded a BEMB-sponsored Nuffield Scholarship
in 2001 to study ways of adding value to shell
eggs.
He originally
studied Animal Science at Nottingham University
and graduated with a BSc (Honours). This was
followed by 6 years with ADAS as a poultry
adviser. Steven then moved to work as a commercial
poultry nutritionist for Premier
Nutrition, an animal feed supplement business.
He is still there and, since 1996 when he
took part in a management buy out, has been
one of the 4 directors and shareholders of
the company. It manufactures vitamin/mineral
supplements through a unique contamination-free
system for the livestock and pet food industries.
Steven
is head of Premer's poultry team and works
closely with egg and poultry meat producers
on aspects of nutrition, food safety, product
quality, development and differentiation.The
CONCLUSIONS and RECOMMENDATIONS
contained in his Report are given below:
CONCLUSIONS
Consumption
My first
objective was to understand how other markets
had maintained high levels of egg consumption.
In the case of Japan, the industry has been
actively creating interest in egg with different
brands, in collaboration with the retailers,
for the mutual benefit of both parties.
At the
same time they have defended the traditional
values and reinforced the consumer expectation
of freshness and safety.
In North America, speciality
eggs are also seen as a way of promoting eggs
in general, whilst helping overall profitability
Added
Value
How have other markets added value? The
key here is not what you do, so much as how
you sell it. In Australia I saw a technically
brilliant omega 3 brand with disappointing sales
due to poor marketing. Conversely in Japan
and America, less technically perfect packages
were commanding shelf space and sales because
of professional marketing and promotion.
During
my travels I developed the “Egg Cup Test”.
As a gift for my various hosts I had selected
some locally produced Staffordshire Blue Spode
egg cups. In Australia these were received
with great appreciation, however in Japan they
were viewed suspiciously. What are they for
– drinking sake?
The Japanese mindset
does not pigeonhole eggs, they
think outside the box in terms of how
eggs can be eaten and what can be done to
add value.
Research
There is a wealth of research on human nutrition,
functional foods and specific egg related
studies.
Dieticians
prefer important nutrients to be provided as
a food rather than a supplement and eggs provide
the ideal biological filter system and portion
control to achieve this.
Access to this information
needs to be organised on a more formal basis.
Sales
All the
evidence points to speciality eggs helping to
create interest in and sales of all eggs. The
industry should not be afraid to promote healthier
eggs in the fear that this will adversely impact
on standard eggs.
Standard
eggs must however not be ignored. In his latest
book “Good to Great”, business guru Jim Collins
describes successful companies as having to
establish a hedgehog principle. The idea is
that a fox is always trying different ways to
eat the hedgehog. The hedgehog however has
one simple strategy to evade the fox, it rolls
up into an impenetrable spiky ball. Companies
need to have a similar simple strategy to survive
adverse market conditions. In Japan the fox
currently is low cost Chinese eggs, the Japanese
hedgehog principle is to emphasise freshness
and safety.
The UK
industry could easily adopt the same tactics
and also promote its welfare and non-GM credentials.
Opportunities
Functional foods are one of the hottest topics
in the food and health industries today. This
interest is based on the following factors:
A more
health conscious consumer
Consumers
taking control of their own healthy lifestyle
Large increases
in the costs of healthcare
Similarly
large increases in the elderly population
Innovative
technology
Changes
in food regulations
New scientific
findings relating foods and nutrients to optimal
health
This opportunity
for growth applies as much to eggs as to any
other food product.
The industry needs to be persistent in its development
of novel products to meet the demand for the
health conscious consumer.
Functional
foods are growing and gaining acceptance as
a route for improving the health of consumers.
Many of the factors could be portrayed as going
back to a traditional or natural egg. For example
historically eggs would have contained more
omega 3 fatty acids. Eggs are also a tasty
way of improving your intake of health nutrients.
Eggs are
the ideal functional food.
The egg
industry should formalise links with the research
funding bodies in other countries in order to
fully utilise the wealth of scientific data
generated by these organisations.
The industry
should build on the Lion brand to develop a
range of functional eggs.
The industry
should explore and exploit possibilities for
co-branding of functional ingredients.
Whilst
the establishment of branded products on supermarket
shelves may be difficult, producers should be
persistent in trying to develop opportunities
in the premium own label brand sector, in collaboration
with retailers.
The industry
should continue to use the new minimum net weight
packs to both maximise the potential shelf space
and minimise product wastage.
Part of
any brand development should include refrigeration
as a key element.
Further
work to promote refrigeration of eggs in the
home should be a priority for the industry
The industry
also needs to establish a simple defence message
(hedgehog principle) incorporating safety, welfare
and freshness as the core values of home produced
eggs.
Our promotional
message needs to raise consumer perception of
eggs as a good quality protein source with less
than 5% of mostly unsaturated fat.
In order
to meet the requirements for growth in functional
foods the industry needs to continue to develop
and promote the convenience and safety of eggs.
Freshness
is our strongest defence against imports
Producers
and retailers need to become fresh obsessed
e.g.
Dutch eggs can never be local and French eggs
should never be perceived as being as fresh
as locally produced.
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