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:

CONCLUSIONS
  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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

  1. 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.

  2. 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!

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. Policy-makers/legislators should be encouraged to concentrate on animal welfare "outputs" (achieving the aim), rather than on welfare "inputs" (defined as prescriptive standards).

  9. 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.

  10. 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.

  11. 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.

  12. As a greater number of politicians will be urban-based in future, ensure that they too are lobbied.

  13. 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.

  14. 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.

  15. 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.

  16. Where possible, and recognising the necessity for compromise, the intensive livestock industries should work together on specific issues. This adds clout.

  17. The recommendations above equally apply to trade associations operating at UK and EU level.

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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

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. Be a good communicator not just to people in the company but also to all stakeholders.

  7. To run a successful business you need a have a good organisational structure, vision and an excellent understanding of money.

  8. 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.

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. Different agricultural sectors face many of the same challenges; by working together on commonissues we can have a stronger more united voice.

  6. 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

  1. A myth and reality situation exists regards organic systems but does the consumer really care?

  2. 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.

  3. 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.

  4. Too many logos exist. This creates confusion, but harmonisation is unlikely as sector bodies compete for business in a maturing market.

  5. 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.

  6. 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.

  7. Certification bodies have become centres of bureaucracy and paper-pushing machines.

  8. 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.

  9. 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.

  10. 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.

 

KEY RECOMMENDATIONS

  1. 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.

  2. 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.

  3. Initiate a Producer Working Group at EU level. This could help to share practical knowledge and perhaps break down communication barriers.

  4. 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.

  5. 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.

  6. 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.

 

RECOMMENDATIONS

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.

 

A full copy of Steven Pritchard's Report may be obtained from the Nuffield Director