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Poultry Meat & Eggs
This handbook is part of a series of agribusiness manuals prepared by the FAO Investment Centre Division, in collaboration with FAO’s Rural Infrastructure and Agro-Industries Division. It was prepared for the EBRD Agribusiness team, under the FAO/EBRD programme of cooperation. The production of the manuals was financed by FAO and by the EBRD multidonor Early Transition Countries Fund and the Western Balkans Fund. The purpose of this handbook is to help agribusiness bankers and potential investors in the Early Transition countries (ETCs) and the Western Balkan countries (WBCs) to acquire basic knowledge about the technical features of poultry meat processing and to become acquainted with recent economic trends in the sector around the world, with a special focus on the ETCs and the WBCs. This volume was prepared by Inna Punda, FAO Agribusiness Expert, and reviewed by Dmitry Prikhodko, Economist, FAO Investment Centre Division, as well as by members of the EBRD Agribusiness team. Electronic copies can be downloaded from www.eastagri.org, where a database of agribusiness companies, including poultry meat processing companies that operate in the ETCs and the WBCs, is also available. Please send comments and suggestions for a future edition of the manual to TCI-Eastagri@fao.org.
The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views of FAO. All rights reserved. Reproduction and dissemination of material in this information product for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material in this information product for resale or other commercial purposes is prohibited without written permission of the copyright holders. Applications for such permission should be addressed to: Director Investment Centre Division FAO Viale delle Terme di Caracalla, 00153 Rome, Italy or by e-mail to: TCI-Eastagri@fao.org © FAO 2010
Design and page layout Alberto Pedro Di Santo
INTRODUCTION 1.3 Egg products 5.5 Average margins of producers 2.1 Global poultry market 4.8 Trade in eggs 5 7 8 11 11 11 11 13 14 15 16 17 19 19 19 21 23 24 25 25 26 28 32 33 33 35 38 39 39 41 41 43 44 46 48 51 .3 Breeding and feeding 2.THE BROILER INDUSTRY 4.2 Different varieties of poultry meat 2.3 Global poultry meat production 4.1 Chickens and chicken parts 3.5 Average margins of breeders 5.6 Problems with diseases 2.2 The composition and nutritional value of eggs 5.1 Characteristics of poultry meat 1.7 Global trade in poultry meat 4.1 Raising egg-laying hens 5.6 Major industry players 4.2 Production process in the broiler industry 2.4 The contribution of various meats to the global increase in meat production 4.5 The impact of sanitary and phytosanitary measures 4.2 Consumption patterns 4.5 Broiler wholesale prices 4. BROILERS FOR MEAT PRODUCTION 2. CHICKEN SLAUGHTERING AND PROCESSING 3.6 Egg production 5.4 Sale prices of hen eggs 5. LAYING HENS FOR EGG PRODUCTION 5.4 Conversion factors for live animals 3.7 Egg consumption 5.2 Description of poultry processing 3.7 Environmental considerations and sustainability of poultry farming 3.TABLE OF CONTENTS ACRONYMS 1.3 Poultry by-products 3.4 Sale prices of live broilers 2.1 Classification of birds 2.8 Prices of broiler meat 5.
2 Production of poultry meat and hen eggs in WBCs and the ETCs 6.4 Investment projects 7.THE POULTRY AND EGG INDUSTRIES IN THE EARLY TRANSITION COUNTRIES (ETCs) AND THE WESTERN BALKAN COUNTRIES (WBCs) 6.3 Trade in poultry meat and eggs 6.1 Poultry meat consumption 6.6. FURTHER READING ANNEX 1 ANNEX 2 55 55 58 63 69 71 73 75 .
ACRONYMS AND ABBEREVIATIONS Abbreviation ABEF CAGR CIS DOC EBRD ETC EU FAO FCE FCR FYR Macedonia HPAI HS MOA OECD WBC WTO Meaning Brazilian Association of Poultry Exporters Compound Annual Growth Rate Commonwealth of Independent States Day-old Chick European Bank for Reconstruction and Development Early Transition countries European Union Food and agriculture erganization Feed conversion efficiency Feed conversion ratio Former Yugoslav Republic of Macedonia Highly pathogenic avian influenza Harmonized (Commodity Description and Coding) System Ministry of Agriculture Organisation for Economic Co-operation and Development Western Balkan countries World Trade Organization 5 .
are raised for their meat and eggs and are an important source of edible animal protein. Chickens. The modern poultry industry emerged in the late nineteenth century in Europe and America as breeders focused on improving meat and egg production. The worldwide average per capita consumption of poultry meat has nearly quadrupled since the 1960s (11 kg in 2003 compared with 3 kg in 19631). feeding. were domesticated probably about the same time. The current integrated poultry production system evolved from the many small. and of B-complex vitamins. Poultry meat contains less fat than most cuts of beef and pork.1. It has a higher proportion of unsaturated fatty acids than saturated fatty acids. This fatty acid ratio suggests that poultry may be a more healthful alternative to red meat. and breeding have led to the rapid development of the industry since the 1930s. Research and technical innovations in poultry housing.2 1 2 FAOSTAT. Poultry meat accounts for 30% of global meat consumption. INTRODUCTION Pigeons. independent farms and companies that existed around the 1940s as hatcheries. Although poultry eggs were artificially incubated in ancient China and Egypt. chickens were introduced into America from Europe and turkeys were introduced into Europe from America. In North America. Specialization in raising broilers has been important to the expansion of the poultry industry. Production and consumption of poultry products increased significantly during World War II when beef and pork were in limited supply. 7 . Since 1945. feed mills and processing plants and then over the ensuing years integrated under a single ownership. and geese were bred in China more than 3.000 years ago. this method of hatching poultry was not used on a commercial scale until the 1870s. developed from Asian jungle fowl. the integration process was nearly completed by 1970. The meat is rich in proteins and is a good source of phosphorus and other minerals. Encyclopedia Britannica. © FAO Statistics Division 2009. or domestic birds. Poultry liver is especially rich in vitamin A. 1. ducks. In the sixteenth century. improved methods of storing and distributing poultry meat and eggs have helped stimulate consumption of these foods.1 Characteristics of poultry meat Poultry. Poultry meat and eggs are highly nutritious.
In the United States and Canada.225 2.617 8.042 9.585 2.2 Different varieties of poultry meat Poultry meat represents about 33% of global meat production: in 2007. however.329 7 21 73 Goose and guinea fowl meat n/a 2. 2007 (thousand tons) Country Chicken meat 16.898 5.020 70. and well suited for quick-service and casual dining menus. chicken meat accounted for only 79% of all poultry meat produced in 2007. In the European Union (EU).7% of total poultry production. pigeon. other commercially available poultry meats include meat from ducks (4% of total poultry production) and from geese. good nutritional profile/low in fat.211 10. quails. of which 88 million tons were poultry meat.7% of total poultry production). © FAO Statistics Division 2009 8 . Chickens and turkeys are the most common sources of poultry meat (87% and 6.988 2. turkey meat is the second most important poultry meat consumed after chicken meat. versatility. convenience/ease of preparation. while turkey.240 Turkey meat 3. Table 1: Types of poultry raised in the main producing countries.397 4 230 22 n/a Duck meat 83 2.542 2.The following five factors are believed to have contributed to the increasing popularity of chicken meat: ■ ■ ■ ■ ■ value/price compared with other foods.092 n/a n/a n/a % of Total poultry in poultry total meat meat product 19. pigeons. geese and quail meat accounted for 15%.313 47 21 49 47 36 Total meat 42. Hen eggs represent 92% of the global primary production of eggs. in other countries turkey meat is less important. Chicken accounts for about 86% of all poultry raised worldwide. ostriches and emus (combined about 2.508 ■ 1 United States ■ 2 China ■ 3 Brazil ■ 4 Mexico ■ 5 India Source: FAOSTAT. 1. some 269 million tons of meat were produced globally. respectively). duck.548 6. However.691 15.464 18. pheasants.
therefore. 9 . focus on broilers for meat production and laying hens for egg production. The genetic line of broilers is Cornish cross (Cornish x White Rock) and the genetic lines of layers are Leghorn (white eggs) and Rhode Island Red and New Hampshire (brown eggs). The colour of the eggshell is directly influenced by the breed of the hen.Broilers are the main type of chicken produced by modern integrated poultry raising facilities due to their high feed-meat conversion ratio. Approximately 50% of the eggs produced in the world are brown and 50% are white. This handbook will.
polony and viennas. Figure 1 depicts the following major elements of a modern broiler production chain: ■ the hatching – the egg farm provides fertile eggs to the hatchery.1 Classification of birds Broilers are generally grown for a specific number of days and until they reach a specific weight. In North America. producers usually do not own the primary breeding stock (i. Specialized firms and institutes obtain chicks from hybrid lines selected for specific characteristics such as resistance to diseases. and ■ the processing plant where birds are slaughtered and either prepared as ready-to-cook whole chicken or cut-up chicken parts. veterinary/sanitary control and animal density within breeding houses (on average 10 animals/m²) are the most important factors affecting growth. Feed quality. growth curve and adaptation to certain types of feed. The average growth cycle is about six weeks for a broiler. or further processed into deboned chicken.2. the parent lines supplying their operation). heat regulation. the feed-to-meat conversion ratio and the sale price of boiler meat. After six weeks. 11 . They are then gathered into cages and sold to processors for slaughtering. All healthy DOCs are sent to broiler grow-out facilities. The DOCs are raised for about 42 days. cages are used only for transportation purposes and not for containing broilers during their growth.e. The length of the cycle is influenced by the degree to which the feeding diet is balanced and considers the cost of feed per 1 kg of meat produced. broilers reach an average weight of 2. and after that time they are ready for slaughter or to be sold live. seven-week-old chickens are classified as broilers or fryers and fourteen-week-old chickens are classified as roasters3. In broiler meat production. 2. 2. 3 Encyclopedia Britannica. They purchase birds from primary breeders.5 kg. ■ the hatchery where fertile eggs incubate and day-old chicks (DOCs) hatch from the eggs.2 Production process in the broiler industry In the modern poultry industry. BROILERS FOR MEAT PRODUCTION A broiler is a type of chicken specially bred for meat production because it grows much faster than an egg breed of chicken.
depending on the level of integration of the companies in the broiler industry. Source: College of Agriculture and Life Sciences of North Carolina State University 12 . where contract farming is not developed. In some countries (the United States. integrated companies own and control the hatcheries. Figure 1: A typical integrated broiler operation Raw ingredient Breeder chicks or poults Primary breeder Feed manufacturing Breeder grow-outa Equipment supplies Parent breedersa Hatching eggs Hatchery Chick or poults Grow-outa Live haul Equipment supplies Processing Distribution Further processing Storage Note: (a) Normally produced under contract arrangement with grower. processing plants and distribution facilities but contract up to 90% of the broiler grow-out with private farms. Canada. the United Kingdom). feed mills.There are various arrangements for the raising of broilers. In the Russian Federation and Ukraine. all major broiler meat producers also own and control the broiler grow-out facilities.
Animals that have a low FCR are considered efficient users of feed. the grower owns the chicken house and provides litter. Different growth cycles have a direct impact on net cash flow. Cattle need more than 8 kg of feed per head to put on 1 kg of live weight per head. In the 1950s. labour and utilities. feed quality. producers turned to indoor confinement of poultry for the protection of chicks from predators. eight generations of birds can be raised per year compared with from two to two-and-one-half generations of pigs and less than one generation (0. Inc. ■ more broilers than layers can be placed in a shed. greater labour efficiency and disease control.5 and of ducks is 2. For example. 4 Feed conversion ratio (FCR).e. ■ return from the investment in broilers is fast. medication and other supplies. Today’s poultry industry is characterized by vertical integration whereby a single company owns the facilities and controls the breeding. i.The advantages of farming broilers over other animals are: ■ broilers have a growth cycle of six to seven weeks.5 kg of feed to 1 kg of meat. tighter control of operations.8) of cattle. least amount of feed that is required for unit body weight gain. 13 . FCE depends on many factors.). all poultry was raised outdoors and sunlight provided a natural source of vitamin D. 2.g.5–3. including the age of birds. a ruminant will convert about 7 kg of feed to 1 kg of meat and a pig will convert about 3. of turkeys is 2. duration of lighting. owns the birds and provides feed. ■ broilers have high feed conversion efficiency (FCE)4 in comparison with other birds or livestock. Piligrim’s Pride Corp. hatching and/ or processing of broilers but contracts with private poultry farmers for the raising of the chicks (up to 90% of grow-out may take place on private farms). or Tyson Foods. etc. referred to as an integrator. The advent of synthetic vitamin D permitted total indoor production. feed conversion rate or feed conversion efficiency (FCE) is a measure of an animal’s efficiency in converting feed mass into increased body mass. There are two systems of poultry raising: extensive and intensive production.3 Breeding and feeding Until the 1950s. FCE of broilers is 2. which allows for repeated production throughout the year. and ■ high consumer demand and preference for broilers. Although an integrated company (e.
In addition to foraging for plants. ■ Extensive range poultry production requires much more land and is usually part of a diversified operation with ruminants.2. the price premium for “free-range” chickens in the EU. birds are pastured to obtain nutrients from the pasture. some farmers manage this type of production successfully and obtain premium prices for their poultry (for instance. However. Mixed husbandry can be very important in range poultry production.4 Sale prices of live broilers Poultry prices may vary significantly. There is a niche market for “free-range” poultry.3. input costs and relative costs of competing meats. they do not make use of the vast energy stored in the plant fibre.1 The extensive (or pasture-based) production system From a production standpoint. which is rare in the modern industry. Most producers would rather not expose birds to predators and wildlife to avoid diseases. in France. all the nutrients required by the birds must be provided in the feed. Production costs are very volatile. Small farmers raise poultry in “free-range” or pasture-based systems that are part of a diversified farm. 2. Therefore.2 The intensive (or cereal-oilseed protein-based) production system Under the intensive system. up to 30% of poultry is produced on range under the Label Rouge certification programme). However. they vary considerably from one region to another region. influenced by seasonal patterns. improve land fertility and improve bird health. 14 . North America and other developed markets should be viewed against consumer disposable income and willingness to pay for this type of product. They greatly depend on the desired characteristics of the final product (whether chicken of a brand name or of low quality) and also on feed prices (mainly grain prices). vegetative forage plants but because they cannot digest cellulose as ruminants do. However. Extensive breeding is largely practiced in developing countries where natural native genetic lines are used. Poultry obtain nutrients from young. poultry in pasture also forage for seeds and live protein such as worms and insects. careful manure management is needed to prevent environmental damage. 2. climatic conditions and the genetic lines used. The following main features distinguish an intensive poultry production system from an extensive poultry production system: ■ Intensive range poultry production can be a stand-alone enterprise and requires only a small amount of land.3. usually in the form of a balanced and mixed feed.
15 . thousand tons 14.000 United States China Brazil Mexico India Russian Federation Ukraina 1. Source: FAOSTAT.000 10. The choice of final product characteristics is largely determined by how much consumers are prepared to pay for high quality broilers.Figure 2: Producer prices of chicken meat in selected countries (USD/ton of live weight) 18.600 1.000 2. as well as slightly increased costs of other miscellaneous variables. An approximate average gross margin calculation for broilers is provided in Table 2. high quality meat usually requires a longer growing period. which means higher production costs because more feed is used. © FAO Statistics Division 2009 2.000 12.200 1.400 1.000 8.000 Production.000 6.5 Average margins of producers Margins for producers of broilers largely depend on final product characteristics (quality.000 4. brand. Indeed.000 16. brand name).800 1.000 800 600 400 200 Note: 2007 data.
365 1. which has a significant economic value.Table 2: Broiler contribution margin for 100.602 Expense USD 1. Canada (target weight 1.000 birds in British Columbia.6 Problems with diseases Biosecurity and sanitation are necessary to prevent disease outbreaks.456 1. keeping the buildings clean and properly disposing of dead birds. Biosecurity involves isolating birds by age group.92 kg/bird) Income Broiler sales Condemnations Total income Direct expenses Feed Chicks (vaccinated) Levies Medications Catching Litter Waste removal (litter & dead birds) Energy and water Maintenance and repairs Total direct expenses Contribution margin Contribution margin/broiler Contribution margin/kg Source: British Columbia Ministry of Agriculture. 2. 16 .5) Price USD 1.43) 2.053 1.621 (18.398 0.365 Unit kg kg Income USD 2.920 Price USD 0.010 Unit kg kg kg Yield 1.206 397 0.40 0.21 One of the important by-products of poultry production is the manure. restricting human access to buildings.920 (13.375 593 19 30 40 24 30 77 17 2.560 0. be it sold by producers or directly applied by producers to the crops grown. Fisheries and Food Quantity 3.
Compared with cattle. Organic poultry has a higher FCR and a longer growing period for the heavier chickens that are produced.2. that intensive (housed) poultry production may have a lesser impact on the environment and global warming than organic or free-range production. 5 Life Cycle Assessment by Cranfield University in Silsoe. poultry litter (manure) can also be processed for commercial fertilizer. resulting in a net increase in energy requirement for organic poultry meat production. The modern broiler industry raises more food on less land with less input than any other terrestrial food animal industry. If carefully managed. United Kingdom.7 Environmental considerations and sustainability of poultry farming It takes less than 2 kg of cereals to produce 1 kg of chicken meat as compared with 4 kg of cereals to produce 1 kg of pork. Organic egg production also needs more energy than nonorganic egg production and increases most environmental burdens (except pesticides). This feed conversion ratio (FCR) (2:1 or less) is better than that of livestock or other poultry. Recent research5 suggests. contrary to widespread belief. chickens emit no methane and emit less phosphate and carbon dioxide than other meat-producing animals. 17 .
3. the conception/organization of the slaughterhouse must be closely adapted to feed cost and availability. IFC 04/2007.1 Chickens and chicken parts Whole chickens are available fresh. Upon arrival. poultry meat can be further processed into various products based on the type of poultry meat desired (e. 3. In fact. wings and breasts (see Annex 1 for further details). 19 . Annex 2 provides a simplified diagram of the various operations performed in poultry processing. thighs.1 Poultry processing operations Because poultry meat is a perishable product (chilled poultry meat must be sold to consumers within 72 hours after processing). Wingettes and drummettes made from the wing are available. breast halves and poultry halves. meat supply conditions and consumer markets (average weight and age of animals. fully cooked and seasoned. Chicken products taken from the breast and wing are considered white meat and the products taken from the drumstick and thigh are considered dark meat. from simple cuts to readyto-eat meals). 6. CHICKEN SLAUGHTERING AND PROCESSING The most common product produced in poultry slaughterhouses is the whole bird. frozen. during recent years there has been a shift from fresh. Health. whole-bird sales to sales of cut-up bird parts and convenience products because these products have higher value. bone-in. 3. and Safety Guidelines. ■ Preprocessing6 The birds are usually transported by truck to the poultry slaughterhouse. uncooked.2 Description of poultry processing 3. boneless. the birds are held in the reception area in the transport crates.Based on Environmental. However. Cutting up and further processing chickens add value to the product and increase convenience to consumers. They are also available as legs (drumstick and thigh attached).g. Chicken parts are available as drumsticks. Poultry Processing. available quantity of animals per week and seasonality of supplies). breast quarters. leg quarters.2.
(ii) gas inhalation or (iii) a blow to the head using a blunt object. the birds are inspected visually and categorized. The birds are showered with water during the automated plucking operation and the feathers are collected in a trough under the plucking machine. spray chilling whereby water aerosols are added to the air. In most countries. Once the birds are shackled. the official veterinarian then inspects each transport crate of live birds to approve them for human consumption. Birds 20 . The eviscerated carcass should be rinsed internally and externally with potable water before further processing. ■ Further processing and evisceration Feathers are removed in a specially designed plucking machine or by hand. ■ Storing and packaging After rinsing. Feathers are collected and treated as an animal by-product. which takes place in either a chill room or by continuous air blast. and immersion chilling. Following scalding and plucking activities. stunning is carried out using one of three possible methods that include (i) an electrically-charged water bath. including: air chilling. The birds are hung upside down by their feet by shackles on a conveyor. Inedible organs. The birds should bleed for at least two minutes to ensure a total bleed-out. which involves moving carcasses through a counter-flow current in a water bath. Depending on country-specific regulations. After bleeding. After weighing. Whole birds are typically packed in plastic bags or in containers wrapped in film. Birds are weighed individually and sorted according to their weight. including the intestinal tract and lungs. the birds are exposed to either steam or hot water as part of the scalding procedure. companies may use disinfectants (chlorine or tri-sodium phosphate solutions) to reduce the bacteriological contamination on meat surfaces. ■ Slaughtering. After inspection. the head and feet are removed.pending veterinarian inspection. the carcass should be cooled as quickly as possible to or below 4 °C. The blood is collected in a tank and handled as an animal by-product for further processing. are removed and treated as animal by-products. Sick birds are killed and disposed of. the birds are removed from the crates in the reception area and put on the killing line. Scalding loosens the feathers and facilitates plucking. which moves them to the stunning area. bleeding and scalding Slaughtering can be performed manually or by using an automatic circularknife system. Several methods are used for chilling.
water from the scalding process has to be pressed out of the feathers. they should be approved during the inspection process. Heads are normally not used for human consumption. Feathers are collected in a separate container.1 Low-risk material Low-risk by-products are by-products obtained from poultry that have been approved as fit for human consumption (e. and application of lubricants. Before transfer to the container. After working hours. Blood is filtered and spray-dried to produce blood meal. physical removal of solid material. drying. heads and feet). Feathers can be burned to produce heat or processed with heat to hydrolyze the proteins.are stored before sale at or below 4 °C. the need for cooling and chemicals that can prevent coagulation should be considered. blood. Heads and feet that are not destined for human consumption are collected in a separate container. as necessary. Rendering involves evaporative processes that may generate a foul odour. including disassembling of machinery and equipment. a total cleaning and disinfection of the plant is carried out. 21 . Blood meal can be used for feeding fish.3 Poultry by-products 3. some head bits may be present among the feathers. Birds intended to be sold as quickfrozen poultry are frozen in a blast freezer or similar equipment that enables rapid freezing. Some rinsing and cleaning should occur during working hours. When these by-products are to be used for human consumption.3. normally on a daily basis. cycles of rinsing and washing. disinfection. ■ Cleaning of the processing plant Cleaning of the plant is one of the most important tasks in a poultry processing plant. Blood is collected in a separate tank.g. The low-value proteins from feathers can be used in pet food or animal feed. 3. ■ Rendering Rendering is the heat treatment of animal by-products to eliminate the risk of spreading disease to animals and humans and to produce usable products such as proteins and fat. Typically. Cleaning involves the following major steps. Depending on the storage time before further processing. Because the plucking process can remove portions of the heads as well. pets and other animals. although duck tongues are consumed in some countries. feet used for human consumption are heat treated in order to remove skin and nails before packing.
3. which are isolated in such a way that food safety is not jeopardized. The solid product can then be ground into various animal protein powders for animal feed or pet food. Solid organic material that is captured in the wastewater treatment system screens and has a particle size of 6 mm or greater should also be treated as a high-risk by-product and sent for rendering. including the holding time. heads. blood and wastewater that remain from the processing are rendered down to their essence before being hauled as sludge to fertilize farmlands in the area. as well as all other by-products not intended for human consumption. The liquefied fat and solid protein are separated by centrifugation or pressing.4 Environmental aspects ■ Waste and wastewater Water contamination has become a major issue confronting industrial poultry operators.3. feathers. the materials are chopped up and then heated under pressure (e. ■ Chicken manure Almost 18 billion birds are raised each year in the world and produce more than 22 million tons of manure.g. an additive to chicken feed.3. and condemned parts of birds. contaminates litter or waste generated each year by the broiler chicken industry and also contaminates the communities in which it is generated or disposed.3. The rendering process should produce final products that are free from salmonella and clostridium and contain only a limited number of enterobacteriaceae. Grids used in the slaughterhouse and prefiltering of waste streams should be designed so that these kinds of animal by-products can be recovered and sent for rendering. in the conventional batch dry rendering method) to kill micro-organisms and remove moisture. At the rendering plant. the core temperature and the particle size of the products treated.3. ■ Chicken processing Chicken guts. condemned birds. The effectiveness of the heat process used for rendering depends on various factors. Ammonia gas must be ventilated from the chicken houses and can contaminate soil and water. Arsenic.2 High-risk material High-risk by-products include birds that have died for reasons other than slaughtering. Poultry manure is rich in nitrogen and phosphorous and contaminates groundwater and surface waterways such as rivers and bays. Treated wastewater 22 . 3. The containers should be covered to prevent wild birds and animals from coming into contact with the material they contain.3 Processing of by-products By-products should be collected in separate containers.
Some estimates are provided in Figure 3.4 Conversion factors for live animals The figure commonly used as the conversion factor is the carcass yield (also referred to as a killing out percentage). depending on production conditions. 3.is released into nearby streams or sprayed on farmlands in the area. which is the proportion of an animal’s weight salvaged at carcass point. Arbor Acres. typically 500 ft long) require almost 38 litres of water per minute. Figure 3: Average broiler carcass yield in selected countries. indicates the following standards in its Broiler Manual: 23 . Three thousand five-hundred litres of water are used in the production of 1 kg of meat. One of the oldest and most respected brands in chicken breeding. 2007 (kg/year) Un ted States Kg/animal World average Russ an Federat on Source: FAOSTAT. ■ Water use.g. © FAO Statistics Division 2009 The genetic potential for broiler production under ideal conditions can be estimated from the claims of the breeding companies. Modern broiler houses (e. This figure varies considerably.
512 Cumulative (g) 149 471 986 1.313 1. 24 . wholesale broiler prices tend to increase due to a sustained demand coupled with a tight supply that is constrained by expensive feed costs.761 4.56 1. A farm chicken may be twice as expensive as an industrial chicken.24 1. intensive/extensive production).770 2.940 Weekly grain (g) 135 265 355 455 520 585 585 Feed consumption Weekly (g) 149 322 515 764 1.68 1.22 1.355 2.074 5.250 1.Table 3: Arbor Acres Classic Broiler standards for straight-run (straight-run is a 1:1 ratio of males and females) Age (weeks) 1 2 3 4 5 6 7 Body weight (g) 175 440 795 1. Presently.07 1.10 2.5 Broiler wholesale prices Wholesale prices depend to a large degree on the product quality standard (label policy based on feed quality.90 Source: Arbor Acres Broiler Manual 3.24 2.94 2.750 2.73 1.58 Cumulative 0.45 1.586 Feed conversion Weekly 1.85 1.40 1.011 1.
THE BROILER INDUSTRY 4. The dynamism of the global poultry sector has been supported by a strong growth in demand. the lack of supply in pork meat already observed in 2007 and food scares resulted in a gradual shift in consumption from pork to poultry. income growth significantly promoted the consumption of meat in general and poultry meat in particular.4. the meat sector as a whole will continue the upward production trend driven by world population growth. which corresponds to an increase of 35%.1 Global poultry market The poultry sector was the most dynamic meat sector during the last decade. Figure 4: Growth trend in poultry meat global production (in millions tons) Million tons 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: FAO Food Outlook. such as the outbreaks of the avian influenza and the Newcastle disease. In Eastern Asia. showing the greatest growth of all meat sectors as reflected in world consumption. At the global level. which represented major threats for the poultry sector worldwide. 25 . particularly in developing countries. June 2009 It is expected that in the next ten years. The demand for poultry meat was even more important in the Middle East. This growth was attained despite recurrent consumer scares and regional trade restrictions linked to the spread of various diseases. where competition with pork is almost non-existent. In the Russian Federation and Latin America. total poultry meat production increased from 69 million tons in 2000 to 94 million tons in 2008 (see Figure 4).
723 33.658 5. have been observed in the past and will likely continue in the future. Demand for low-calorie food products and changes in lifestyle.2 Consumption patterns With continued economic growth. protein demand in developing countries also is increasing especially for low-priced foods such as poultry and eggs.313 31.130 11.850 2006 85. In 2008.444 15. June 2008. Also consumer preferences are changing in many developed countries. China has become the world’s leading poultry meat consuming country. which reduce the time consumers wish to spend on food preparation. Per capita poultry meat consumption in China was estimated at 13.938 2.913 35.253 10.642 16.923 16.218 11. 7.064 10.5 kg/year 7 – slightly below the world average (14 kg/year).355 6.434 37.741 10.211 2007 90.796 2.451 6.965 2005 83.4.323 2008 93.333 3.733 14. Again.918 15. FAO Food Outlook.474 17. and China and Mexico each with 6% growth (see Table 4 and Figure 8).165 36. global poultry meat consumption increased by a healthy 4%. 26 .198 2. surpassing the United States.601 3.896 16.340 5. Table 4: Evolution of poultry meat domestic utilization in the heaviest consuming countries (in thousand tons) 2004 World 80. The highest annual growth rates of poultry meat consumption in 2007–2008 were registered in the Russian Federation with 8% growth. Source: FAO Food Outlook. June 2009 With nearly 18 million tons of poultry meat consumed in 2008.198 6.046 16. it is mainly poultry meat that complies with increased consumer demands for lean and easy-to-cook meat.262 16.016 13.848 Trend Y-1 % 4 6 1 2 4 8 4 ■ 1 China ■ 2 United States ■ 3 EU* ■ 4 Brazil ■ 5 Russian Federation Rest of the world * EU-25 from 2004 to 2006 and EU-27 from 2007.
June 2009 In the EU.4 53.7 27.2 kg in 2004.6 92. In the Russian Federation.3 2008/2007 3% 7% 5% 0% 2% 0% 2% 3% 2% 12% ■ 1 Qatar ■ 2 United Arab Emirates ■ 3 Israel ■ 4 Hong Kong ■ 5 United States Developed countries Developing countries EU including Baltic states CIS Source: FAO Food Outlook.1 16.3 71.6) as compared with 16.8 52.4 89.7 kg (close to the EU-average of 23.8 23.Figure 5: Shares of leading countries in global consumption of poultry meat. Table 5: Consumption of poultry meat in selected countries (kg/capita/year) 2007 World average 13.4 2008 14.6 18.5 million tons of poultry meat in 2008 or 2% more than in the previous period.4 10.0 99. 2008 1 China 19% 2 United States 17% 3 EU 12% Rest of the world 41% 4 Brazil 7% 5 Russian Federation 4% Source: FAO Food Outlook.2 93.5 28. Population growth induced a slight increase in consumption. 23 kg/year in 2004).9 52.1 71.6 54. per capita poultry meat consumption has been stable at the level of 24 kg/year (2008 data. Russia’s per capita consumption reached 24.7 9. In 2008. poultry meat consumption has grown rapidly in recent years. which reached 11.1 23. June 2009 27 .
June 2009 4. Figure 6: Poultry meat domestic utilization five-year CAGR* (growth 2008/2003. %) * Compound Annual Growth Rate (CAGR). This phenomenon (production growth despite high cereal prices that imply higher production costs) can be explained by the fact that poultry meat is a very efficient way to transform vegetable mass into meat protein. cereal price growth impacts on poultry production costs to a lesser extend than on other meat production. Source: FAO Food Outlook. Consequently. poultry meat consumption growth is much more pronounced than in developed countries. poultry meat production continued to grow and reached 93.In developing countries. 28 .7 million tons in 2008 (see Table 6).3 Global poultry meat production Despite high feed costs (due to high prices of cereals and oilseeds in 2007– 2008).
In China. especially among the urban population. poultry output growth was still possible because of the favourable conjuncture on the international market.117 19.514 10. pig meat supply started to grow again but failed to reach the precrisis level.643 10. In the past.735 8.986 17. In 2008.481 16.648 8. Source: FAO Food Outlook.393 11. amidst sluggish domestic demand. China’s growth in poultry production is expected to slow to 3% (currently +5%). poultry production was fuelled by a sharp drop in pig meat production and an increase in pork prices in 2007. despite the fact that internal demand had reached its ceiling.895 2.470 1.300 2.624 589 50 933 2007 90. leaving an important opportunity for the development of poultry farming in response to constantly growing internal demand for meat products.167 9. but this engine of growth is now under pressure from the current international financial crisis.850 670 52 983 2008 93.491 10.966 9. the world’s biggest poultry meat producer.262 11.710 2.060 CAGR 2008/2004 % 16 8 28 7 16 17 86 114 32 19 ■ 1 United States ■ 2 China (Mainland) Top 5 ■ 3 EU ■ 4 Brazil ■ 5 Mexico Russian Federation EBRD region Ukraine Kazakhstan Turkey * EU-25 from 2004 to 2006 and EU-27 from 2007.493 13. Fast growth in Brazilian production in 2008 (+5%) is linked to the expansion of the domestic market as well as to an increase in international demand.058 19. Brazil’s 29 .593 1.313 1.105 14.040 10. Early indications of a contraction of poultry production in the first half of 2009 suggest that output may fall by 3% to 19.3 million tons compared with production in 2008.901 2.215 15. Little change in poultry meat production in the EU is currently anticipated.Table 6: Evolution of poultry meat production by the main producing countries (thousand tons) 2004 World 80.182 375 41 894 2005 84. poultry consumption in China was fuelled by rising purchasing power.505 1.381 497 43 953 2006 86. June 2009 In the United States.200 804 54 1.481 18.544 19.729 19.791 2.057 2.
production benefited from the dynamism of internal demand as well as from the different measures regularly undertaken by the local authorities that aim to reduce the country’s dependence on imports (import quotas. followed by the Russian Federation with 19% growth and Colombia far behind with 10% growth (see Figure 8). sanitary barriers). Brazil and Mexico (see Figure 7). Ukraine and the Russian Federation have adopted various measures to stimulate domestic production and reduce imports. and with a devalued currency. consider dependence on imports far from ideal for the governments. Global poultry meat production grew by a fair 4%. They give their poultry producers a big helping hand by 30 . as farmers were requested by the Brazilian Association of Poultry Exporters (ABEF) to reduce production for export to counter the difficult world market situation. the Russian Federation even more at 40%). Ukraine registered the highest growth rate of 20% in 2008 compared with 2007. but concerned by the balance of payments. In the Russian Federation. represent more than two-thirds of global poultry meat output. While the consumer taste for poultry meat continues to grow in Ukraine and the Russian Federation. Faced with these difficulties. The production of the five major producers of poultry meat. Production growth in the Russian Federation may slow to 9%. Figure 7: Main poultry meat producers and their share in global output. China. local suppliers have been unable to keep pace with demand. June 2009 In terms of growth. 2008 1 United States 21% 2 China 18% 3 EU-27 12% Rest of the world 35% 4 Brazil 11% 5 Mexico 3% Source: FAO Food Outlook.output was forecasted to grow by only 2% in 2009. the EU-27. namely the United States. Both countries source a significant proportion of their poultry meat from overseas (Ukraine about 30%. weaker than the growth of 16% on average witnessed during the last two years.
turkey meat production occupies quite an important share of poultry output at 17% of total output. establishing price controls and making soft loans available. notably chicken. 2008 1 Ukraine 2 Russian Federation 3 Colombia 4 Chile 5 Turkey Source: FAO Food Outlook. A new class of efficient farmers has emerged to respond to the constantly increasing demand for cheaper (cuts of) meats. geese).8 In Brazil. Livestock and Poultry Farming (OFIVAL). Figure 8: Poultry meat producing countries with the strongest growth. In the EU. In other terms. In China. The most remarkable growth rate in poultry production among the main poultry producing countries during the recent past was attained by Brazil (+7.ensuring protection from competition.1% per year). In the United States. about 30% of poultry output due to the importance of these species in traditional cuisines of the country. chicken meat represents a major share of poultry production (68%). against 15% of the increase attributed to the United States and 13% of the increase attributed to China. China and the EU) the pace of growth was more modest. chicken meat is even more popular: chicken meat represents 97% of total poultry meat output. June 2009 Chicken meat represents 86% of global poultry meat output. chicken meat represents roughly 72% of poultry meat output. These data show that Brazilian poultry production has considerably increased its export vocation during the recent past. 20% of the increase in world poultry production between 1999 and 2006 can be attributed to Brazil. and most of the rest of output is distributed between turkey meat (16%) and duck meat (4%). 31 . leaving considerable room for the production of palmipeds (duck. 8 National Interprofessional Office for Meat. while for the other three global leaders (United States.
1 million tons). poultry and pork exhibit the strongest growth (see Figure 9). June 2008 32 . Of the various types of meat.4 The contribution of various meats to the global increase in meat production The positive development in meat production is unequally distributed across regions as well as across commodities.4. Figure 10: World meat production and poultry’s contribution Source: FAO Food Outlook. 2005–2007 Source: OECD and FAO Secretariats Poultry meat represents 33% of global meat output (282. Figure 9: Contribution of various meats to production increases.
higher grain prices. The integrators coordinate the supply of chickens through a system of contracts with growers. multinational companies – mainly based in the United States – which are commonly referred to as “integrators” because they run a vertically integrated production process whereby each firm controls every stage of its operation from the embryo to the market shelf (production. feed and medication and buy back the mature birds. 4. 4. In 1950.7 million tons.5 The impact of sanitary and phytosanitary measures The outlook for global poultry meat production has been revised downwards since November 2008 to 94.6 Major industry players The global chicken trade is dominated by large. poultry meat prices remained stable. while the companies supply the chickens. largely because of the avian influenza epidemic in Asia. see Figure 10). but in early 2009. Slower growth is a reaction to generally low returns on chicken production caused by the economic troubles during 2001–2003.. 33 . there were over 250 firms operating in the United States broiler industry and today there are fewer than 50 firms. equipment. Perdue and Sanderson Farms. fell in the last quarter of 2008. Although the price of feeds. utilities and labour in the raising of birds to a marketable age. reflecting the slower pace of growth during the past decade. The top five poultry producers worldwide are as follows. the price of poultry meat fell when consumer demand started to falter. Growers (poultry farmers) provide the land.Nevertheless. based on publicly available information for 2008/2009: 9 Feedstuffs 15 January 2007. grew from 35% in 1986 to 50% in 20019. buildings. The share of the United States market of poultry industry leaders. processing and distribution controlled by a single entity). At the forecast level. avian influenza and. Pilgrim’s Pride Corp. a key component of costs. such as Tyson Foods. global poultry meat production will increase by a mere 1% compared with 2008. the growth in chicken meat production has slightly slowed in 2008 (4% compared with 2007. where numerous outbreaks have been reported since the end of last year. portending another year of low profits or even losses. most recently. for example. trade disruptions.
United States www. Tyson Foods.com Founded: 1931 Employees: 107. as well as McDonald’s.2 billion chickens. also operates as a poultry breeding stock supplier..000 tons of pork and beef). In 2008. is vertically integrated.000 people 38 distribution centres 26 food processing plants ■ 2 Tyson Foods.com.com Founded: 1920 Employees: 21.perdue. Annual slaughter capacity of the new giant is 1. The new company is called BRF Brazil Foods SA.com www. based on the market value of Perdigão SA and Sadia SA on the day of takeover. The company operates live production and processing facilities in about 15 states through 2. and supermarkets across the United States. Pilgrim’s Pride Corp. (Cobb).. 31.7 billion14 (2008) ■ 5 Sanderson Farms . Sanderson Farms is the fifth largest fully integrated poultry producer and processor. Since then. beef. This transaction resulted in BRF Brazil Foods SA becoming the world’s largest poultry processor by market value: it will export about 42%10 of its production. Kroger. The company filed for Chapter 11 bankruptcy in 2008.000 tons of poultry meat (and 697.br Employees: 81. produces.sandersonfarms.000 people Revenue: USD 26. and to brokers who resell frozen chicken to export markets. headquartered in Pittsburg. It is a supplier of Kentucky Fried Chicken. distributes and markets chicken. Wal-Mart.3 billion.. Costco. pork and prepared foods.342. 34 ■ 1 BRF Brasil Foods SA Brasil www.4 million pigs. The company processes about 44 million birds per week. meaning the company has its own divisions for each production process from “egg-to-table”. Brazil’s largest food company Perdigão SA took over its rival Sadia SA. Tyson Foods. Inc.8 billion11 (2008) 123 food processing plants 6. Wendy’s. operates more than 300 facilities in the United States and throughout the world. supplying itself. United States www. an American multinational corporation based in Springdale. Perdue Farms is a major chicken processing company based in Salisbury.000 people Revenue: USD 4. IGA. Perdigão SA produced 1. Publix and Wendy’s.750 people Revenue: USD 8. The Perdue Farms division processes and packs 1. as well as a number of other poultry production companies with poultry breeding stock.Table 7:The world’s top five poultry industry leaders Company Description In May 2009. Inc.5 billion12 (2008) ■ 4 Perdue Farms United States www. BRF Brazil Foods SA is valued at about USD 5. grocery stores. The company filed for Chapter 11 bankruptcy in December 2008. Maryland.3 billion13 (2007) 2..pilgrimspride. Beef O’Brady’s and small restaurant businesses.tyson. is the secondlargest chicken producer in the United States and Puerto Rico. Texas. Arkansas.com Founded: 1946 Employees: 49. Inc. it has closed three of its processing facilities.080 people Revenue: USD 1. It provides both fresh and frozen chicken products to foodservice companies.729 contracted poultry farmers ■ 3 Pilgrim’s Pride Corp.250 contracted poultry farmers United States www. Tyson Foods.com Founded: 1947 Employees: 1. Pilgrim’s Pride Corp. Inc. restaurants. Wal-Mart.perdigao. It supplies the Yum! Brands (including Kentucky Fried Chicken and Taco Bell). Burger King.250 contracted poultry farmers.4 billion kg of chicken and 122 million kg of turkey per year. resulting in almost 4 billion kg of product per year. Inc.9 million turkeys and 7. as well as 528 million table eggs.poultry. Through its wholly owned subsidiary Cobb-Vantress.
play a crucial role in shaping the world’s meat trade.7 Global trade in poultry meat Animal diseases such as avian influenza or Newcastle disease have affected poultry meat trade during recent years.Other major producers include: Cargill (the United States). The United States is the top exporter with Brazil close behind (see Figure 11 and Table 8). 15 Based on the United States Poultry & Egg Export Council (USAPEEC) rating. however. Sanitary requirements. Wayne Farms (the United States). Thailand and China round out the list of the major exporters. 14 Yahoo! Finance. Encouraged by the strong demand from several importing countries. The evolution of reciprocal sanitary agreements. 2008 4 Thailand 5% 3 EU-27 8% 5 China (Mainland) 4% Rest of the world 12% 2 Brazil 35% 1 United states 36% Source: FAO Food Outlook. 12 Yahoo! Finance. Together they control 71% of the global chicken trade. along with tariff reduction. Montaire Farms (the United States). ultimately determine whether an increase in market access can de facto be used or not. BusinessWeek. 4. therefore. June 2009 10 11 Financial Times. poultry meat exports increased at a steady pace and reached almost 11% of total world production. 13 Yahoo! Finance. The EU-27. Dachan (China) and CP Foods (Thailand)15. 35 . Figure 11: Main poultry meat exporters and their share in global trade. Support policies for biofuels in many developed countries determine the availability of grain for feed production.
such as Saudi Arabia and the United Arab Emirates. face stiff competition from exports of the two main exporters. Brazilian exporters.733 2. and Asia. particularly Hong Kong and Japan.531 3. trade in poultry meat increased by 7% to 10.102 2.964 964 447 479 3 8 n/a 41 2007 9.922 3.092 3.Table 8: Global poultry meat export trend and main exporting countries (thousand tons) 2004 World 7. 16 FAO Food Outlook.698 948 319 331 2 12 n/a 29 2005 9. confirmed their leading position in global poultry trade. the United States and Brazil.777 2. June 2008. On the import side.458 789 502 513 3 6 3 53 2008 10. They also face difficulties in gaining access to the Russian Federation’s poultry market due to the historical principle of import quota distribution and poultry plant inspection demands established by the Russian food safety authorities. Exports from the EU. the United States entered the markets of the Commonwealth of Independent States (CIS) ahead of the other main exporters Brazil and the EU. by diversifying their markets. the United States has remained the main supplier of poultry meat to the CIS. due to increased import demand16. 36 . Source: FAO Food Outlook. A 7% growth was registered in 2008 in response to strong import demand from countries in the EU. Since then.700 875 520 395 2 8 n/a 80 CAGR 2008/2004 % 36 37 37 –8 63 19 0 –33 n/a 176 ■ 1 United States ■ 2 Brazil Top 5 ■ 3 EU ■ 4 Thailand ■ 5 China (Mainland) Russian Federation EBRD region Ukraine Kazakhstan Turkey * EU-25 from 2004 to 2006 and EU-27 from 2007.3 million tons.036 3.800 3.414 3.790 3. the third largest poultry exporter.261 950 411 471 20 12 n/a 47 2006 8. June 2009 After the break up of the Soviet Union. the Near East.
307 1.056 910 835 651 236 21 70 CAGR 2008/2004 % 41 10 305 31 47 42 –17 50 –40 ■ 1 Russian Federation ■ 2 China (Mainland) Top 5 ■ 3 Japan ■ 4 EU ■ 5 Mexico Ukraine EBRD region Kazakhstan Turkey * EU-25 from 2004 to 2006 and EU-27 from 2007. China. the EU-27 and Mexico are the main poultry meat importers. is the largest importer of broiler meat in the world.330 1. the country has established rigid food safety regulations and imposed mandatory inspections of the facilities of foreign suppliers.290 1. June 2009 The Russian Federation. Since then.Table 9: Global poultry meat imports trend and main importing countries (thousand tons) 2004 World 7.235 1.122 261 696 568 459 285 14 117 2005 8. Figure 12: Main poultry meat importers and their share in global trade. Source: FAO Food Outlook.677 1.304 1. 37 .286 701 887 656 607 136 33 94 2007 9.342 470 913 642 549 126 11 114 2006 8. The government of the Russian Federation established import quotas in the early 2000s to encourage domestic poultry meat production. June 2009 The Russian Federation.016 867 820 584 129 21 75 2008 10. 2008 Russian Federation 12% China (mainland) 10% Japan 9% Rest of the world 55% EU-27 8% Mexico 6% Source: FAO Food Outlook. Japan.630 1.
especially China. Figure 13: Poultry prices.Half of the growth in poultry imports originated in Asia. with Brazil being the major supplier. which had been deteriorating over the last few years.8 Prices of broiler meat The increase in meat prices during 2008 likely increased poultry meat producers’ margins. In 2008. The EU became a net importer in 2008. . where consumers are substituting broiler meat for pig meat. USD/ton) . The fall of meat prices largely reflects the weakening of demand. 38 . June 2009. EUV. especially in the developed countries17. Source: FAO internal data 17 USD/ton FAO Food Outlook. The importers exceeded the import quotas because high domestic prices made importing profitable despite full import duties. 1990–2009 (US broiler cuts. However. following the price decrease since October 2008. as a worsening of the global economic environment negatively affects consumption growth. profit outlooks for poultry producers seem uncertain. 4. imports increased by 2%.
5. 39 . usualy one that is less than one year old.1 Raising egg-laying hens It is almost impossible that any companies rears layers in exactly the same way. producer preference (breed and strain selection) and/or geography (breed selection and vaccination package). Management differences in rearing layers may be accounted for by economics (breed selection. All companies use a slight variation of the typical rearing programme described in this section. vaccination package and the decision as to when to allow moulting). LAYING HENS FOR EGG PRODUCTION 5. Figure 14: Egg production process Processing plant Packing facility EGGS Egg laying facility Point of lay Pullets* Rearing facilities CHICKS Hatching facility hatchery Culls Eggs Chickens Fertile egg production facilities * A young domestic hen.
Hatching and placement. Egg producers purchase their layer stock (i.e. dayold Leghorn or other genetic lines of chicks) from a hatchery. At the hatchery, chicks are vaccinated according to the producer’s specifications. Hatcheries deliver chicks to the producer within one to two days of hatching. Upon arrival, chicks are placed in typical layer pens or are reared in a pullet house. Lighting and temperature. From chick placement through to approximately 16 weeks of life, the pullets are fed according to body-weight gain and/or age. The goal is to raise a strong and healthy bird that can support egg production. An increase in daily light exposure triggers hens to begin laying eggs. If the laying hen has not reached proper body weight (usually 1 kg) by week 18, egg production will cease very quickly. Feeding. Feed is usually offered to birds via the chain system. The chain system transports feed into the metal feeder at precise times during the day. In addition to monitoring dietary protein, producers must closely examine other feed ingredients: lysine, methionine, calcium and phosphorus. Before being slaughtered, laying hens are given appropriate feed to reconstitute muscle volume. Egg production. Hens start laying regularly at around 18–20 weeks of age and in commercial systems, they typically lay for about a year before being sent for slaughter18. Producers begin to photostimulate (regulate the light and its intensity) and adjust the diet around 18 weeks of age in order to support egg production. The calcium levels in the diet are approximately 5–7 times greater than phosphorus levels. When a flock first enters egg production, the rate of egg lay will be around 10 to 20%. This means that 10 to 20% of the hens are laying eggs at 18 to 22 weeks of age. The flock quickly reaches peak egg production (>90%) at 30 to 32 weeks of age. After about 50 weeks, when the laying curve decreases greatly, hens are gathered a few weeks out of the regulated light cycle in order to perform the so-called moulting (change of feathers). A second laying cycle can then begin. Post-peak egg production (after 30 to 32 weeks of age) continually decreases to approximately 50% of the hens around 60 to 70 weeks of age. At this point an economic decision must be made by the producer; production by 50% of the hens is near the “break-even” point for egg producers (e.g. feed cost = market price of eggs). The time from ovulation to laying is about 25 hours. About 30 minutes after laying, the hen will begin to make another egg. Commercial hens have been bred to produce a very high yield of around 300 eggs per year. Feed quality, heat regulation, sanitary control and animal density within hen-houses are the key factors that affect chick mortality rates.
Layers raised organically and used for producing organic eggs are much more valuable at the end of their production cycle; they can be sold as roasters. Non-organically raised layers are sold for use as protein supplements for dog and cat food. 40
Egg collection. Hens lay eggs onto an angled wire floor and the eggs roll towards the front of the cage and onto a belt. The belt transports eggs out of the house either to the egg packaging facility or to a storage cooler. Once the eggs enter the egg packaging centre, they are washed (detergent solution near 40 °C and pH 11 that removes soil) within minutes or no later than 12 to 14 hours post-lay. Bacteria can be on the outside of an eggshell because the egg exits the hen’s body through the same passageway as faeces; thus, the reason for washing and sanitizing eggs at the processing plant. Bacteria can be inside an uncracked, whole egg. Contamination of eggs may be due to bacteria such as Salmonella Enteritidis in the hen’s ovary or oviduct before the shell forms around the yolk and white. Salmonella Enteritidis does not make the hen sick. It is also possible for eggs to become Sizing of eggs infected by Salmonella Enteritidis faecal contamination via the pores of the shells Chicken eggs are graded by size for the after they have been laid. purpose of sales. In Europe, current egg After washing, eggs are visually inspected (checked for eggshell problems, cracks and blood spots), and then graded for packaging. The weight of a hen’s egg may vary from 50 to 70 g, but the average weight is 55 g. Following packaging, eggs are moved to a cool room (4–7 °C), where they await shipment to retail outlets.
sizes are defined as follows: Modern sizes (Europe) Very large Large Medium Small Mass per egg 73 g and over 63–73 g 53–63 g 53 g and under
5.2 The composition and nutritional value of eggs Eggs are one of nature’s highest quality sources of protein and indeed contain many important nutrients. They are a good source of high biological-value protein and they are easily digested. Therefore, they are valuable food for people who are recovering from illness. Eggs are composed of three main parts: 1. Shell 2. Egg white 3. Egg yolk 88.5% of an egg is edible. Shell. The shell of an egg is porous to allow the developing chick to obtain oxygen. Other than oxygen, bacteria and odours can enter the egg. The pores also allow water and carbon dioxide to escape. The membrane that lines
the inside of a shell acts as a filter to protect against bacteria. At one end of the egg, the membrane separates into an air space to supply the chick with oxygen. The shell is generally strong but the older birds tend to produce weaker shells. The shell’s colour varies according to the breed of the bird. Egg white. There are two layers of egg white: 1. The thick white layer (nearest to the yolk) 2. The thin white layer (nearest to the shell) Yolk. The colour of the egg yolk is related to the diet of the hen and is due to the presence of carotenes and colourings added to a hen’s feed. The nutritional value of the egg is not affected by the colour of the yolk. The nutritional content of egg white is: ■ ■ ■ ■ 10.5% protein 88.5% water riboflavin and other B vitamins a trace of fat
The nutritional content of egg yolk is: ■ ■ ■ ■ ■ ■ 16.5% protein 33% fat 50% water fat-soluble vitamins A, D, E and K mineral elements, including iron lecithin (an emulsifier)
5.3 Egg products The term “egg products” refers to eggs that are removed from their shells for processing. The processing of egg products includes breaking eggs, filtering, mixing, stabilizing, blending, pasteurizing, cooling, freezing or drying, and packaging. Liquid, frozen, and dried egg products are used widely by the food-service industry and the commercial-food industry. They are scrambled or made into omelettes, or used as ingredients in egg dishes or other foods such as mayonnaise or ice cream. Pasteurized egg products are products that were rapidly heated and held at a minimum required temperature for a specified time. This destroys Salmonella, but it does not cook the eggs or affect their colour, flavour, nutritional value or use. Dried whites are pasteurized by heating them in the dried form again for a specified time and at a minimum required temperature.
Eggs are commonly used in food preparation for: ■ Thickening. can be used safely without cooking or baking it. ■ Emulsifying. Egg yolk contains lecithin.Egg white powder is dried egg white (pure albumen). Egg yolk. It is used in making mayonnaise and cakes. It can be reconstituted by mixing the powder with water. because it is pasteurized.000 10. soups.000 200 United States Price Russian Federation Source: FAOSTAT. because of the coagulation of the egg proteins.000 1. which is an emulsifier and enables oil and water to be mixed without separating..200 1.000 800 15. Ingredients for rissoles. 5. The reconstituted powder whips like fresh egg white and.000 1. © FAO Statistics Division 2009 43 .000 600 400 5. Eggs are used to thicken custards. thousand tons 20. and meat or fish cakes can be bound together with egg. The product is usually sold along with supplies for cake baking and decorating. egg white or whole egg is brushed over pastries and bread to produce a golden brown shiny glaze during baking. etc. ■ Coating. sauces. croquettes. ■ Glazing. which when heated will coagulate and hold the ingredients together. Eggs are used as a coating for fried foods because they form a protective layer on the outside of the food that sets and holds the food together and prevents it from being overcooked. ■ Binding. 2007 (thousand tons and USD/ton) 25.600 1.400 Production.4 Sale prices of hen eggs Figure 15: Average producer prices of hen eggs in selected countries.
Figure 16: Dynamics of egg prices in selected countries. 1991–2005 China (world’s biggest egg producer) (USD/ton) 1. There are numerous feeding and management programmes that have an effect on producers’ investments. A sample of a gross margin in egg production is provided in Table 10 (a contract-growing facility).000 900 800 USD/ton USD/ton 1991 1993 1995 1997 1999 2001 2003 2005 700 600 500 400 United States (second-biggest egg producer) (USD/ton) 1. Egg producers will normally attempt to get the largest number of high-quality eggs of the correct size from each hen housed in the shortest period of time at the lowest cost. Any savings from reduced feed consumption will usually increase the profit margin.5 Average margins of breeders Feed costs often represent more than 70% of the production cost of a dozen eggs.000 900 800 700 600 500 400 1991 1993 1995 1997 1999 2001 2003 2005 Source: FAOSTAT. © FAO Statistics Division 2009 5. 44 . Feed costs per dozen eggs must always be the least cost against expected egg revenue in order to maximize profits.
26 n/a 0.08 0.80 4.11 0.28 Pence/dozen (own produced eggs) Output 80.06 9.81 0. School of Social Sciences.33 Production costs (fixed) 20.94 16.02 18.37 Feed Packing materials Disposal of old hens Production Vet costs Contract charges (excl.08 0.47 0. labour/contract) Production buildings charge Specialist production equipment charge Mobile equipment charges Labour: farmer & spouse (f) unpaid labour paid labour Electricity Other heating fuels Water Office expenses General insurance Rent or rental value Free range/organic paddock costs Others Total fixed costs (d) Net margin before marketing costs (c-d) = (e) Net margin plus farmer & spouse labour (Before marketing costs) (e+f) 43.23 n/a 0.87 0.58 0.69 0. The University of Manchester. February 2005 45 .65 9.86 3.09 0.02 0.39 18.17 0.47 0.06 1.15 0.13 0.19 -3.08 4.98 8.02 0.Table 10: Gross and net margins before marketing costs (all egg production systems) £/bird Egg ouput from own birds Total bird depreciation Net margin from egg purchases for resale Miscellaneous revenue Total gross output (a) 22.21 0.04 37.38 Source: The Economics of Egg Production.04 0. milling & mixing) (variable) Causal labour Others Total variable costs (b) Gross margin before marketing costs (a-b) = (c) Mill & mixing charge (incl.66 0.
In some countries. over 60% of the world’s eggs are produced in industrialized systems. 46 19 19 19 19 19 19 19 20 06 .6 Egg production Global egg production has rapidly grown in recent years.5. 276 million hens are kept in the United States. However. 133 million hens are kept in India and 115 million hens are kept in Mexico. Approximately 800–1. mostly using battery cages. It has tripled since 1970 when global output was about 20 million tons compared with almost 60 million tons in 2007 (see Figure 17). many of the hens are traditional breeds kept outdoors in villages and backyards or on smallholdings. biscuits and desserts.93 billion egg-laying hens19 in the world. In some EU countries and in the United States.000 million laying hens are kept in China. Figure 17: Dynamics of in-shell egg production in selected countries (million tons) Million tons 70 60 50 40 30 20 10 0 86 70 74 78 82 90 94 98 02 20 19 Source: FAOSTAT. © FAO Statistics Division 2009 It is estimated that there are 4. Experts from the International Egg Commission expect that within a few years the production volume of eggs will be greater than that of beef and veal (assuming the growth rates remain fairly constant). over 380 million hens are kept in the laying flock in the EU-27. nearly all the hens are caged. The eggs from the hens are sold either in their shells for use by restaurants and consumers or processed into egg products that are used later in a wide range of food products from soups and sauces to ready meals. 19 The International Egg Commission. cakes.
0 46 ■ 5 Mexico EU 112 6.3 2. M tons M doz.4 million tons in 2007 and China. produced 21.1 2 0.2 dozen eggs) were produced around the world.0 38 Federation Ukraine 11 0.3 million tons (see Table11 and Figure 18).5 41 2. Figure 18: Share of the main egg-producing countries in global output.7 90 49 42 46 110 38 14 3 13 2007/2003 (weight M tons data) % 59.5 41 2.4 2.0 419 ■ 1 China ■ 2 United 87 5.9 437 5.1 0.023 54.7 12 0.4 2.2 45 2.084 404 20.043 55.8 0. M tons M doz.6 1.066 56.6 12 0. the world’s largest egg producing country.1 0.1 0. 57.3 6.3 90 5.6 1. © FAO Statistics Division 2009 47 .9 40 2.7 2.8 11 0.4 1.8 12 Source: FAOSTAT.5 2.0 36 2.2 410 20.8 2 23 0 21 –3 5 33 0 0 The top five egg producing countries contribute almost 60% of the global volume of egg production (based on 2007 delivery).8 8 5.1 2 Turkey 13 0.5 47 ■ 3 India 42 2.4 million tons.2 89 5.0 37 2.8 0.1 0. The EU produced just over 6. 2007 3 India 5% 2 United States9% 4 Japan 4% 5 Mexico 4% 1 China 37% Rest of the world 41% Source: FAOSTAT.5 46 2.5 42 ■ 4 Japan 37 1. the largest egg producing region (58% of global output).4 1.5 2.0 8 21.8 million tons (37% of global egg production). while the United States produced 5.7 14 Kazakhstan 2 0. Table 11: Hen egg production in selected countries (million dozens and million tons) 2003 2004 2005 2006 2007 M doz.1 2 0. Asia.3 91 States 40 2. © FAO Statistics Division 2009. M tons M doz. eggs eggs eggs eggs eggs World 1.In 2007.6 117 6.6 112 Russian 36 2.7 13 0.8 114 6.3 6.0 40 2.107 20.6 2.5 421 21. produced 34.5 2. M tons M doz. around 59 million tons (or 93.
ready-made omelettes).China is by far the world’s largest producer and consumer of eggs. the gain reflects an increase in the purchase of egg products. EU regulations. respectively. many consumers in developed countries are able to pay for the higher-priced eggs that were produced in line with certain animal welfare. For instance. While total egg consumption and the uptake of eggs per capita continue to grow everywhere. This reflects an increase in the number of meals eaten out of the home. eggs are an important source of protein intake. In the United States. albumen.europa. In the EU (production of 6. However.eu/food/animal/welfare/farm/laying_hens_en. for many developed economies. there has been significant growth in the use of egg products (liquid/frozen yolk. For more information consult http://ec. these markets remain a niche for table egg producers. 5. and Germany and Spain with 12% and 11% of output. and white eggs are more favoured for table use than brown eggs. The United States is the world’s second largest egg producer. Indeed. With rising incomes. egg blends. Much of China’s production is directly consumed in the country as fresh brown eggs. Certain policies may have significant implications for egg consumption and trade in the near future. in developing countries the gain is made from an increase in purchases of in-shell eggs.7 Egg consumption Together with poultry meat. However. the EU aims at moving egg producers away from using conventional cages21 by 2012. During recent years. the demand for animal protein increases and the efficient conversion of feed into eggs stimulates animal protein consumption. the main producing countries are France with 14% of total output in 2007. 20 21 The International Egg Commission. if implemented. feeding and environmental principles (free-range eggs as opposed to eggs produced by chickens kept in cages). a major difference in consumer preferences and egg usage exists between the two nations. the proportion of eggs broken for further processing and consumed in product form now exceeds 30% of total production20. At present.htm 48 . in the United States. By contrast. may result in a considerable increase in the importation of eggs and egg products by some of the EU member countries with high deficits in eggs and egg products. about a third of production is processed eggs.4 million tons).
Egg consumption per capita ranges widely among countries. consumption varied from a low of 47 eggs/capita/year in India to a high of 349 eggs/capita/year in China (see Table 12). 2007 (ranked by estimated consumption) Country China Mexico Japan Denmark Hungary Ukraine United States France Czech Republic Austria Italy Spain Germany Belgium Argentina Sweden Switzerland Colombia Norway Netherlands United Kingdom Canada Ireland Population. where more eggs are eaten per person each year than in any other country in the world. In the countries surveyed by the International Egg Commission. Table 12: Consumption of hen eggs in selected countries. Table 12 provides per capita egg consumption data for all major egg producing countries. followed by Japan (323 eggs/capita/year). millions 1.321 109 127 5 10 46 301 63 10 9 58 45 82 11 39 9 8 44 5 16 60 33 4 Eggs per capita 2006 In shell In products n/a 351 164 n/a n/a n/a 176 167t 244 n/a 145 196 n/a 108 170 164 113 205 157 140 140 138 156 n/a n/a 160 n/a n/a n/a 80 84 n/a n/a 74 n/a n/a 92 16 34 72 n/a 24 42 33 49 15 Total 340 351 324t 270 295 n/a 256 251 244 227 219 196 209 200 186 198 184 205 181 182 173 187 171 Eggs per capita 2007 In shell In products 286 345 155 174 n/a 280 172 169 244 n/a 150 211 n/a 108 187 162 117 188 160 140 143 132 150 63 n/a 169 126 n/a 11 78 76 n/a n/a 74 n/a n/a 92 12 35 72 n/a 26 42 35 42 15 Total 349 345 323 300 295 291 250 245 244 230 224 211 210 200 199 197 189 188 185 182 178 174 165 49 . The country with the second highest per capita consumption of eggs is Mexico (345 eggs/capita/year).
In the developing countries. changes in real incomes have little or no impact on egg purchases. millions 11 189 48 1. By contrast. such as changing lifestyles. The published figures are derived from a number of calculations. with considerable increase being mainly attributed to the new member states and the growing buying power of their new middle class. Source: The International Egg Commission Egg consumption has been increasing constantly in most Asian countries due to the growing purchasing power of an expanding middle class of buyers.177 5 Eggs per capita 2006 In shell In products 120 122 118 38 199 12 10 6 n/a n/a Total 132 132 124 38 199 Eggs per capita 2007 In shell In products n/a 120 130 47 n/a n/a 12 7 n/a n/a Total 136 132 130 47 n/a Few countries actually directly measure egg consumption. 50 .Country Greece Brazil South Africa India Slovakia Note: Population. In developed economies. Other factors. all of which are surrounded by question marks. type of egg production systems and health scares. in developing countries improvements in real disposable income play a significant role in the number of eggs purchased. By contrast. have a role to play in influencing the demand for eggs but are mainly evident in developed economies. even a slight increase in per capita consumption in this region leads to a remarkable growth in global egg consumption trends. Indeed. people are much less concerned about whether layers are kept in cages or not. The news coverage given to the outbreaks of highly pathogenic avian influenza has not had as adverse an impact on the demand for eggs as it has had on the demand for poultry meat. Egg consumption in most of the EU member states has been fairly stable over the last years. Because Asia is home to roughly 60% of the global population. particularly in developed economies. or whether eating eggs can have a negative impact on the blood cholesterol levels of a small proportion of the population. the publicity – much of it incorrect – about eggs and cholesterol has negatively hit egg consumption. the two key factors impacting on the demand for eggs are population growth and real income growth.
5% of global egg production.265 35.059 9.312 620.675 33.469 205.546 6.658 3.935 11.864 33.786 163 n/a 163 n/a n/a n/a n/a 9 9 2007 54.374 32.729 28.118 81.457 86.860 47. About 90% of the world’s in-shell egg trade occurs in Europe and Asia.530 39.959 27.335 26.535 81.895 272.851 8.889 25.202 149.725 9.599 18.371 61.5.070 170 n/a 170 2 n/a 2 n/a 9 9 Export value thousand USD 2006 2007 192.662 6.870 26.576 181.8 Trade in eggs Foreign trade in eggs is relatively small compared with that of poultry meat.987 6.693 19.917 15.292 256.698 27.999 22.725 61 8.767 217. Table 13:The five leading egg exporting countries Country World Item Eggs dried Eggs liquid Total eggs Eggs dried Eggs liquid Total eggs Eggs dried Eggs liquid Total eggs Eggs dried Eggs liquid Total eggs Eggs dried Eggs liquid Total eggs Eggs dried Eggs liquid Total eggs Eggs dried Eggs liquid Total eggs Eggs dried Eggs liquid Total eggs Eggs dried Eggs liquid Total eggs Export quantity tons 2006 51.122 394.454 31.181 30.967 46.789 37. © FAO Statistics Division 2009 51 .404 13.403 58.271 37.710 7.761 5.719 351 8.323 15.840 136.869 86.206 34.089 92.648 36.190 226.942 306.306 16.101 17. that entered world trade in 2007.119 114.751 141 652 33.403 287 326 n/a n/a 287 326 n/a 3 n/a n/a n/a 3 n/a n/a 17 21 17 21 ■ 1 Netherlands ■ 2 France ■ 3 United States ■ 4 Germany ■ 5 India Russian Federation Kazakhstan Turkey Source: FAOSTAT. As shown in Table 13. including in-shell (liquid) and dried eggs.000 tons or 0.501 34.057 498.806 4.792 13. almost 273.651 67.274 27.
555 47. Germany and others) are significant egg importers (see Tables 14 and 15) as well as exporters.329 27. ■ in-shell eggs for hatching (for egg-laying birds or broiler type birds).940 274.825 31.602 56.926 2007 60.458 39.712 79. The EU is the world’s largest egg exporting region.711 17.787 23. In 2006.614 251.899 194. the Russian Federation (16% of trade) and Libya (14% of trade).167 62.202 303.097 4.561 21.162 96.549 21.506 55. the EU-27 exported almost 781.876 16. the United States exports to Canada and Mexico).102 15. As mentioned above.888 514.663 7.894 27. Table 14:The five leading egg importing countries Country World Item Eggs dried Eggs liquid Total eggs Import quantity tons 2006 56.092 23.274 390.776 8.513 7. the EU’s decision to abandon the use of cages in egg production by 2012 will likely result in considerable import growth in some member countries.728 26.005 49.154 110.440 ■ 1 Germany Eggs dried Eggs liquid Total eggs ■ 2 United Kingdom Eggs dried Eggs liquid Total eggs ■ 3 Denmark Eggs dried Eggs liquid Total eggs ■ 4 Belgium Eggs dried Eggs liquid Total eggs .866 35.336 52 Import value thousand USD 2006 210.706 22.652 1. Many EU member states (the Netherlands.551 638.006 40.601 213.e.268 2007 248.722 75.297 3. and ■ egg products (dried and non-dried albumin and dried and non-dried yolk).333 26.043 9.299 734 21.551 5. Main destination countries of the EU exports are Switzerland (22% of trade.439 38.829 34. The EU dominated egg trade with a 68% share of in-hell egg exports and a 66% share of in-shell egg imports.000 tons of in-shell eggs.125 31.075 41.There three categories of egg exports are: ■ in-shell table eggs for consumption (i.541 6.426 22.839 11.851 45.090 34. in value).061 6.561 53.588 11.441 49.
308 54.963 33. The dried egg products are used mainly in the restaurant and catering industry for the production of bakery and other prepared food products.476 20.8 2006 87.419 952 0 952 358 11 369 2007 7.197 2006 137. © FAO Statistics Division 2009 The trade in dried eggs is similar to that of in shell or liquid eggs with an upward trend observed in recent years.200 61.791 6.8 2007 107.8 21.375 81.491 29.8 17.929 14.125 50.393 2. most of the trade is conducted among EU member states. The EU-27 (the Netherlands and France most importantly) accounts for 43% of world export of dried egg products.371 42.7 11.592 27.192 2.1 26.569 49.700 245 0 245 76 3 79 Russian Federation Eggs dried Eggs liquid Total eggs Ukraine Eggs dried Eggs liquid Total eggs Turkey Eggs dried Eggs liquid Total eggs Source: FAOSTAT.903 0 1.3 5.569 58.773 43.775 43.956 67.571 n/a 2.2 35.573 33.872 2007 211.9 14.200 ■ 1 Netherlands ■ 2 France ■ 3 United States ■ 4 Germany ■ 5 Denmark Source: United Nations Commodity Trade Statistics Database 53 .716 22.3 Trade value thousand USD 2005 124.Country Item Eggs dried Eggs liquid Total eggs Import quantity tons 2006 2007 1.555 7.101 47.731 1.7 24.416 3 7.731 n/a 6.7 16.5 25.903 253 12 265 ■ 5 France 1.018 36.571 323 0 323 40 2 42 Import value thousand USD 2006 5. Again.5 11.902 27. Table 15:The five leading exporting countries of egg products (eggs not in-shell and egg yolks) Country Net weight thousand tons 2005 82.699 1 2.4 38.
0 30.7 21.1 Trade value thousand USD 2005 88.278 31.8 19.367 2007 110.947 53.656 33.1 17.606 47.4 12.3 14.Table 16:The five leading importing countries of egg products (eggs not in shell and egg yolks) Country Net weight thousand tons 2005 54.5 22.549 2006 102.767 73.393 38.3 21.2 24.171 27.5 2006 60.5 29.5 22.492 29.744 ■ 1 Germany ■ 2 United Kingdom ■ 3 France ■ 4 Belgium ■ 5 Denmark Source: United Nations Commodity Trade Statistics Database 54 .477 48.182 21.022 46.1 23.7 2007 56.775 44.
lamb and horse meat are more popular than beef (Kyrgyzstan and Mongolia are the leading consumer countries). accounts for more than 50% of total meat consumption. THE POULTRY AND EGG INDUSTRIES IN THE EARLY TRANSITION COUNTRIES (ETCs) AND THE WESTERN BALKAN COUNTRIES (WBCs) 6.6. mutton. thanks to significant poultry meat imports. beef. In the Western Balkan Countries (WBCs). chicken is even more popular than in the WBCs and accounts for almost 40% of total meat consumption due to the local culinary traditions. namely Georgia and Armenia. is the country with the highest consumption of poultry meat (13% of total consumption). In the Caucasus region of the Early Transition Countries (ETCs). Tajikistan. However. Poultry meat is popular in this region also because of its lower price in comparison with the price of lamb and other red meat. in some countries. the most popular meat in these countries. Traditionally. poultry is a popular meat and represents roughly 30% of total meat consumption (see Table 17 and Figure 19). Table 17:Total meat domestic utilization and the share of poultry in total meat utilization (housand tons) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Serbia & Montenegro ETCs: Armenia Azerbaijan Georgia 104 229 200 107 235 203 32 95 72 33 100 74 31 41 36 31 43 36 134 87 87 858 138 90 90 879 27 33 39 86 29 34 41 89 20 38 45 10 21 38 46 10 Total meat 2007 2008 Poultry 2007 2008 % of poultry in total meat product 2007 2008 55 .5% of total consumption). Only an estimated 6% of meat consumed in this region is poultry. for instance. Mongolia is the country with the lowest registered poultry meat consumption (0.1 Poultry meat consumption Chicken meat plays different roles in the meat diets of the populations of the two groups of countries. poultry meat is far less popular than in the Caucasus and the WBCs. In Central Asia and Mongolia.
June 2009 Figure 19: Share of poultry meat in total meat utilization (thousand tons) . This shift in consumption pattern increases the demand for high-value food products such as poultry meat and eggs. 11 times in the Caucasus region (the highest growth is registered in Georgia) and three times in Central Asia (the highest growth is in Tajikistan) in the last ten years. Poultry meat per capita consumption has risen two times in the WBCs. moving away from staple foods and towards including more meat (along with dairy products and fruits). Poultry Other Serbia & Montenegro Uzbekistan Kyrgyzstan Azerbaijan Mongolia Georgia Republic of Moldova Albania Armenia Tajikistan Bosnia & Herzegovina Source: Based on Table 17 As incomes rise in the developing countries. The new lifestyle favours “ready-to-eat” and “convenience” food products.Country ETCs: Republic of Moldova Mongolia Kyrgyzstan Tajikistan Total meat 2007 173 204 218 91 2008 180 208 219 97 Poultry 2007 83 1 14 10 31 2008 86 1 16 13 32 % of poultry in total meat product 2007 48 0 6 11 4 2008 48 0 7 13 4 Uzbekistan 734 760 Source: FAO Food Outlook. See Table 18 for country-level details. This trend has already been observed in the WBCs and the ETCs. consumers generally diversify their diets. 56 FYR Macedonia .
3 9.9 6.2 8. Uzbekistan produces 81% of the poultry consumed domestically.0 12.7 22.4 20.2 15.3 n/a 0. Please refer to Table 19 for further details.8 4.6 n/a 1.3 n/a 2.1 11.6 16.0 10.4 12.0 7.1 2.5 6.0 1.5 19.9 14.8 5.6 16. In the WBCs.4 1.0 11.7 6.4 15. Mongolia has almost no significant poultry industry.9 1.9 19.0 22.2 13.5 –8 16 17 –18 2004 2005 2006 2007 2008 CAGR 2008/2004 % Source: FAO Food Outlook.9 24.5 12.7 10.4 9.0 8.6 8.9 n/a 1.3 1.0 15. in the Republic of Moldova they supply 43% of total domestic consumption and in Central Asia they supply 36% of total domestic consumption.6 19.6 8.8 7.6 6.1 4.6 22.5 2.5 10.9 1.3 0.7 15.9 1.9 7.3 7.7 n/a 1.Table 18: Per capita poultry meat consumption in the WBCs and the ETCs (kg/year) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Serbia & Montenegro ETCs: Armenia Azerbaijan Georgia Kyrgyzstan Republic of Moldova Mongolia Tajikistan Uzbekistan Neighbouring markets: Kazakhstan Russian Federation Ukraine 3.1 10.4 16. By contrast.2 12.8 19.8 16.5 3.5 1.0 17.8 20.1 37 52 64 6. in the Caucasus they supply 30% of total domestic consumption. 57 .1 4.1 83 –5 –2 180 13 n/a 50 19 9. local producers supply an estimated 50% of total domestic consumption. June 2009 The increasing domestic demand and relatively low domestic poultry meat production leave quite an important shortfall in supply that is currently being filled through imports.8 18.7 8.
000 tons of broiler meat.2 Production of poultry meat and hen eggs in the WBCs and the ETCs Serbia.000. June 2009 6.000 and 37. 58 . 50.Table 19: Consumption and production patterns in the WBCs and the ETCs (thousand tons) Country Domestic poultry consumption thousand tons 2007 WBCs: Albania Bosnia & Herzegovina FYR Macedonia Serbia & Montenegro ETCs: Republic of Moldova Armenia Azerbaijan Georgia Mongolia Kyrgyzstan Tajikistan Uzbekistan 83 32 95 72 1 14 10 31 86 33 100 74 1 16 13 32 35 5 49 15 0 6 3 25 37 5 50 15 0 6 3 26 42 16 52 21 0 43 30 81 43 15 50 20 0 38 23 81 27 33 39 86 29 34 41 89 8 24 4 77 9 26 3 78 30 73 10 90 31 76 7 88 2008 Domestic poultry production thousand tons 2007 2008 % of domestic poultry production consumed domestically 2007 2008 Source: FAO Food Outlook. Azerbaijan and the Republic of Moldova are the most important poultry meat producers with outputs of 78. in 2008 (Table 20 and Figure 20). respectively.
381 497 10 17 4 75 5 36 17 5 31 0 3 23 50 1.200 804 Source: FAO Food Outlook. June 2009 Figure 20: Poultry meat production and growth in the WBCs and the ETCs (thousand tons) Thousand tons 7% 6% 6% 4% 1% 2% 2% 1% -1% 1% growth -6% Serbia Rep. June 2009 59 Tajikistan .Table 20: Poultry meat production in the WBCs and the ETCs (thousand tons) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Serbia & Montenegro ETCs: Armenia Azerbaijan Georgia Kyrgyzstan Republic of Moldova Mongolia Tajikistan Uzbekistan Neighbouring markets: Kazakhstan Russian Federation Ukraine 2004 2005 2006 2007 2008 CAGR 2008/2004 % 0 63 0 –9 25 56 0 20 48 0 50 53 32 86 114 9 16 3 86 4 32 15 5 25 0 2 17 41 1.624 589 8 24 4 77 5 49 15 6 35 0 3 25 52 1. of Moldova Bosnia & Herzegovina Uzbekistan Georgia Kyrgyzstan Armenia FYR Macedonia Azerbaijan Albania Source: FAO Food Outlook.182 375 9 12 4 89 5 35 17 5 28 0 3 21 43 1.850 670 9 26 3 78 5 50 15 6 37 0 3 26 54 2.
employing a total of 10. the Albanian company Driza Limited currently produces high-quality poultry and poultry meat products on an industrial scale. there are 16 poultry farms. As per Mongolia’s Poultry Association.000 tons of poultry meat and over 100 million eggs per year.When private business moved into the poultry industry after the fall of the centrally planned economies in the WBCs and the ETCs. The Kvemo Kartli region. 26 are laying-hen farms. Jomi and Shahritus. July 2008. with 1.and medium-sized poultry farms and about 1. For example. seven farms had to shut down because of difficulties arising from the economic crisis and growing egg imports. In Armenia. with Uzbekistan contributing to this positive growth. as well as in the city of Kulob. sales of frozen products are limited by the undeveloped cold-storage chain and by low incomes.mongolnews. Outside Ulaanbaatar. In Central Asia. 26 http://ubpost. 345. There are 58 poultry farms. the significant decease in meat prices and imports reflects 24 25 Business/Rezonansi (Resonance). The most popular local products are supplied by the companies Arzni and Lusakert. poultry meat production has been rising over recent years. In a little over ten years.000 laying hens could supply all of Mongolian’s demand for eggs. In Tajikistan.500 small farms in the country. many countries showcase successful projects in the poultry industry. Poultry farming is mostly located in the districts of Vahdat. doubling between 2000 and 2008. As a result of the recent economic crisis. For the time being. 60 . the poultry industry has also grown almost 3%. especially in Ulaanbaatar. There are 20 large. local poultry production and processing facilities were severely hampered by technological and managerial inefficiencies (outdated equipment and lack of a skilled and motivated workforce). until recently there were 27 chicken farms. However. is the most important poultry producer in Georgia. This production covers about 25% of the domestic demand for poultry meat. In the Caucasus as well. until 1997–1998 the demand for chicken eggs was met predominantly through imports. the parliament does not plan to halt egg imports (which would help the domestic sector to cope with the financial crisis) but has approved a tax increase on imported eggs26. Despite high local meat production. Armenia stopped importing eggs and has become an egg exporter. of which 20 are broiler farms. poultry from the United States has been popular. 2008 data.1 million birds. which25 produce 3. Since the spring of 2001.mn (accessed19 March 2009). In Mongolia. 5 are turkey farms and 7 farms are specialized breeding farms. The Georgian poultry industry is doing well compared with the difficulties in other agricultural sectors.000 people24. MOA.
int/downld/AVIAN%20INFLUENZA/A_AI-Asia.4–1. © FAO Statistics Division 2009 For more information on poultry companies operating on ETCs and WBCs.712 13.050 4.org/agribusiness. The combination of backyard chicken raising and modern poultry farming creates difficulties in veterinary control and disease prevention. please see www. the Republic of Moldova and Uzbekistan obtain the best results in terms of the carcass weight of poultry: 1.8 kg per year of carcass weight obtained by producers in the United States.400 100 2.oie.5 kg per year of carcass weight as compared with 1.decreased consumer incomes.473 22.264 449 15.708 600 370 n/a n/a 289 400 450 n/a n/a 91 900 370 n/a n/a 238 Chickens Ducks Geese and guinea fowls Turkeys Source: FAOSTAT.220 n/a n/a n/a 131 n/a n/a n/a n/a n/a n/a n/a 80 n/a n/a n/a n/a 228 761 350 160 131 n/a n/a 360 4.580 24. Small-scale poultry production in farmers’ backyards is very common in all the ETCs and many WBCs. This disease creates a significant risk for investors 27 For updates on highly pathogenic avian influenza consult the web site of the World Organization for Animal Health at http://www.870 18.eastagri. Table 21: Stock of different poultry in the WBCs and the ETCs. Farmers in Serbia.000 5. The affect of avian influenza27 has already been seen in some countries of the regions.htm 61 . The poultry industry in the ETCs and the WBCs is characterized by a relatively low productivity. United States exports of chicken meat to Mongolia peaked at a record high of USD 2. 2007 (thousand birds) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Montenegro Serbia ETCs: Armenia Azerbaijan Georgia Kyrgyzstan Republic of Moldova Mongolia Tajikistan Uzbekistan 3.2 million in 2008.800 2.
The production of hen eggs has been recovering (see Table 22).because industrial farmers cannot always control the territories around their poultry houses or cannot prevent their workers from raising poultry at home. in-shell.122 2.650 372 702 7 71 37.964 331 14.380 1. 62 . while Uzbekistan is the leader among the ETCs. is the strongest egg producer in the WBCs. © FAO Statistics Division 2009 Serbia.293 297 666 8 n/a 35.364 111 18 40 14 0 n/a 3 n/a 95 720 498 682 566 454 780 558 829 544 492 738 514 875 587 500 716 460 761 580 248 736 521 871 678 434 2 5 28 20 –4 2003 2004 2005 2006 2007 CAGR (2007/2003) % Source: FAOSTAT. in the WBCs and the ETCs (million eggs) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Montenegro Serbia ETCs: Armenia Azerbaijan Georgia Kyrgyzstan Republic of Moldova Mongolia Tajikistan Uzbekistan Neighbouring markets: Kazakhstan Russian Federation Ukraine 277 11.456 105 2.165 16 23 33 2. as shown in Figure 21.559 1.629 334 11.955 1.254 266 618 7 n/a 36.562 n/a 78 2.496 316 759 8 n/a 36.978 2.651 1.691 n/a 99 2.482 342 763 7 47 37. Table 22: Production of hen eggs.883 1.863 340 12.080 321 13.296 n/a 57 2.
3 Trade in poultry meat and eggs Economic and population growth together with new consumption patterns and EU membership perspectives for some of the WBCs shape trade flows. Greece Croatia. Table 23: Imports of poultry meat by the WBCs and the ETCs (thousand tons) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Brazil. United States. Canada 22 13 32 22 14 27 15 10 23 19 10 36 20 9 38 5 –10 6 Partners 2004 2005 2006 2007 2008 CAGR 2008/2007 % 63 Tajikistan Mongolia Armenia . of Moldova Bosnia & Herzegovina Georgia Kyrgyzstan FYR Macedonia Montenegro Source: FAOSTAT. Netherlands Brazil. Slovenia. Table 23 provides information on poultry meat imports and the major partners of the countries covered in this section. Turkey. © FAO Statistics Division 2009 6.Figure 21: Production of hen eggs in-shell in the WBCs and the ETCs (in billion eggs) and relative growth Growth Uzbekistan Serbia Azerbaijan Albania Rep. United States. Italy.
Country WBCs: Serbia & Montenegro ETCs: Armenia Azerbaijan Georgia Kyrgyzstan Mongolia Republic of Moldova Tajikistan Uzbekistan Partners 2004 2005 2006 2007 2008 CAGR 2008/2007 % Bosnia & Herzegovina. 64 . Canada United States. the Russian Federation and Romania. Imports continue to grow despite the fact that many of importing countries have banned imports from such countries as Turkey. Azerbaijan and the Republic of Moldova. Brazil. and Azerbaijan and the Republic of Moldova are also the biggest producers of poultry meat. Canada Brazil. Brazil n/a n/a 25 18 11 12 14 17 14 69 64 0 0 53 6 8 18 49 85 0 0 67 3 8 10 20 48 2 1 41 6 8 27 46 58 8 1 49 7 6 28 50 60 10 1 50 10 6 4 9 3 25 0 2 43 0 Source: FAO Food Outlook. China. Hungary United States. Belgium. which have registered avian influenza outbreaks. Brazil. Brazil United States United States. June 2009 The largest importing countries are Georgia. Turkey. United States United States.
wto. 2008 Grouth. of Moldova FYR Macedonia Albania Serbia & Montenegro Kyrgyzstan Bosnia & Herzegovina Uzbekistan Source: FAO Food Outlook. therefore. Y-1 Thousand tons Georgia Azerbaijan Rep. Exports of poultry meat are relatively insignificant as compared with imports of most of the WBCs and the ETCs. 65 Tajikistan Mongolia Armenia . their tariff protection and application of sanitary measures are regulated by applicable WTO agreements. only four countries in the regions ship their poultry meat to neighbouring states (see Table 25).Figure 22: Main importers of poultry meat in the WBCs and the ETCs (thousand tons) and relevant growth.org Date of membership September 2000 February 2003 April 2003 June 2000 December 1998 July 2001 January 1997 On the export side. June 2009 The following WBCs and ETCs are members of the World Trade Organization (WTO). Table 24: List of the WBCs and the ETCs with membership in the WTO Country Albania Armenia FYR Macedonia Georgia Kyrgyzstan Republic of Moldova Mongolia Source: www.
June 2009 Figure 23: Evolution of export share in domestic production in exporting countries of the regions Source: Based on Table 25 As can be seen from Figure 23.6 0.2 1 3 1.Table 25: Exports of poultry meat by the WBCs and the ETCs and share of export in domestic production (thousand tons) 2004 % of prod.3 3.2 2.7 0.7 2.2 0. Montenegro 1. FYR Macedonia Serbia.3 3.8 0. Export 2006 % of prod.6 3.1 0. poultry meat producers in the WBCs and the ETC Georgia are doing well and their export share of domestic production has been growing steadily during recent years. Export 2007 % of prod.9 6. Armenia Montenegro.8 FYR Macedonia.8 3 1.9 1.1 1.5 1.5 0.2 1.7 1. 5.6 0.5 7. Export 2008 % of prod.7 Azerbaijan.6 1.9 Export Main partner Georgia Serbia & Montenegro Bosnia & Herzegovina Republic of Moldova 1.7 6. 66 .8 0. Export Country 2005 % of prod.6 6. 5.5 0.9 1.1 1.9 0.2 1 4.9 Kazakhstan Source: Author’s calculations based on data from FAO Food Outlook.1 3.8 8.
023 122 317 141 835 979 1.995 2. preserved or cooked (HS2002 code 0407) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Serbia ETCs: Armenia Azerbaijan Georgia Kyrgyzstan Republic of Moldova Main partner Trade value Net weight thousand USD tons 2006 2007 2006 2007 n/a n/a 343 923 n/a n/a n/a n/a n/a 2.417 1.1 760 963 40 963 7. Table 26: Imports of birds’ eggs.648 2. Serbia Croatia.000 2. preserved or cooked (HS2002 code 0407) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Serbia ETCs: Armenia Azerbaijan Georgia Kyrgyzstan Mongolia Republic of Moldova Main partner Trade value Net weight thousand USD tons 2006 2007 2006 2007 98 55 2.Trade of eggs in-shell or egg products is not significant compared with EU trade.826 25 6. Bosnia & Herzegovina Georgia Georgia Turkey Kazakhstan Georgia. Republic of Moldova. Ukraine Turkey.443 597 n/a n/a n/a n/a n/a Italy. Slovenia Serbia Slovakia. Iran Ukraine.2 289 Italy Serbia.286 4.3 112 16 703 1.981 583 642 169 196 69 Source: United Nations Commodity Trade Statistics Database Table 27: Exports of birds’ eggs in-shell. Russian Federation Russian Federation Hungary 638 196 440 111 5.860 6.755 2.381 1. fresh. Montenegro Croatia Croatia. Armenia China. Iraq Source: United Nations Commodity Trade Statistics Database 67 .973 1. Serbia.175 3.436 419 272 769 110 462 n/a n/a 359 609 n/a n/a n/a n/a n/a n/a n/a 1. fresh.429 1. in-shell. Bosnia & Herzegovina Iran.100 1.
6 9.5 n/a 0.1 12 13 23 n/a 1 5.8 16 152 100 15 13 251 79 Main partners Trade value thousand USD 2006 2007 Net weight tons 2006 2007 Source: United Nations Commodity Trade Statistics Database Table 29: Exports of birds’ eggs not in-shell and egg yolks by the WBCs and the ETCs (HS0408) Country WBCs: Bosnia & Herzegovina FYR Macedonia Serbia ETCs: Mongolia China 0.6 68 n/a 5. Bosnia & Herzegovina 6 n/a 44.2 n/a 11 n/a 5 12 Main partners Trade value thousand USD 2006 2007 Net weight tons 2006 2007 68 .5 3.0 7.Table 28: Imports of birds’ eggs not in-shell and egg yolks by the WBCs and the ETCs (HS0408) Country WBCs: Albania Bosnia & Herzegovina FYR Macedonia Serbia ETCs: Armenia Azerbaijan Georgia Kyrgyzstan Mongolia India.5 3. France 18 86 625 483 58 85 1.4 n/a Source: United Nations Commodity Trade Statistics Database Serbia Croatia FYR Macedonia. Poland Germany Germany Russian Federation China 56 0.8 22 0. Argentina Argentina.2 8.1 83. Italy Croatia Croatia.360 440 8.9 15 4.1 n/a 7.5 15 Greece.
66 million for the procurement of equipment. cooling/freezing operations. at the moment of the writing of this handbook. a meat processor in Pancevo. The hatchery of Driza Limited will ultimately produce 10 million day-old chicks per year. The poultry company Sverdlovskiy in Russia's Sverdloskaya region expanded cooperation with other Tajik poultry companies.6. Vencomatic delivered and installed all of the equipment for two production houses and one rearing house for layer breeders in the town of Edinets in the Republic of Moldova. Example of projects are listed in Table 30.500 layer breeders. Sverdlovskiy has already established cooperation with two poultry farms in Tajikistan. and distribution and retail networks put the company well on track in its plans for full integration. However.000–10. Next to the automatic nests. The company's main export markets are Bosnia. Driza Limited. has signed a new agreement with the Dutch hatchery technology company Pas Reform for a suite of SmartSet™ setters. is building a new EUR 10 million poultry processing plant. Revenue in 2006 was EUR 100 million. Each production house has room for 5. and drinking and feeding lines. A feedmill. ventilation. Agroziv has a 60% share of the Serbian poultry market. The houses are equipped with Vencomatic Classic Sidebelt Nests.4 Investment projects The enlargement of the EU with more countries of Central and Eastern Europe creates additional trade and investment opportunities for the countries of the region. Vencomatic delivered a complete installation with slats. Albania 2009 Serbia 2007 Armenia 2009 Republic of Moldova 2005 Tajikistan 2008 69 . Table 30: Investment projects in the WBCs and the ETCs Country Year Project Albania’s leading poultry producer. Vencomatic together with local partner PBNord have cooperated in the modernization of egg production in the Republic of Moldova. VTB Bank Armenia financed Araks Poultry Factory (a subsidiary of the X Group) with USD 1. Russian poultry companies provide the training of personnel for the Tajik poultry breeding sector and intend to provide Tajik poultry farms with up-to-date equipment and to implement joint development projects. there has been limited investment in the WBCs and the ETCs. SmartHatch™ hatchers and Smart Hatchery Automation Systems. Planned capacity is 8. The project is supported by the Dutch government. Agroziv. modern broiler slaughterhouse. Macedonia and Croatia.000 chickens per hour.
internationalegg.com ■ Egg Industry Magazine. FURTHER READING ■ The International Egg Commission.net 71 . (OFIVAL).avec-poultry.com and www.fr ■ www.office-elevage.worldpoultry.usapeec. www.thepoultrysite. www.eu ■ National Interprofessional Office for Meat.eggindustry-digital.com ■ The USA Poultry & Egg Export Council. www.com/eggindustry ■ World Poultry Magazine and Poultry Processing Magazine.7. www. Livestock and Poultry Farming.wattagnet.org ■ Association of Poultry Processors and Poultry Trade in the EU countries.wattpoultry. www.com ■ www. www.
73 . the chicken breast. another very popular chicken product. are available in many forms.ANNEX 1 Chicken parts Chicken Breasts One of the most popular chicken parts. Chicken breasts are considered white meat and are available fresh and frozen in various cuts. Chicken Wings Chicken wings. such as whole breasts. Drumsticks Drumsticks are the bottom portion of the leg below the knee joint and consist of all dark meat. can be purchased in many different forms. Chicken Cutlets Cutlets are boneless chicken breasts or legs that have been pounded to tenderize and to provide meat that is more uniform in thickness so that it cooks more evenly. breast quarters and breast halves. They are considered white meat. Chicken Thighs Thighs are considered dark meat.
Chicken Breast Strips Chicken breasts are cut into strips. 74 . Giblets The giblets consist of the neck. are full pieces or chunks of chicken tenderloins.Chicken Fillets Fillets are slices of meat from the chicken breast. Chicken Tenders Tenders. which are part of the chicken breast. liver and heart.
plucking.ANNEX 2 Simplified diagram of the various operations performed in poultry processing Reception mortality control Shackling and stunning Slaughtering and bleeding Removal of blood Removal of feathers. and removal of head and feet Evisceration Post-mortem control Washing and cooling Animal by. Rendering or sale Scalding.products for rendering Packing Cold storage Transport Source: Adapted from the Danish Poultry Meat Association 75 .
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