Demand for free-range eggs to outstrip supply as caged eggs phased out, WA farmers fear

Demand for free-range eggs to outstrip supply as caged eggs phased out, WA farmers fear

West Australian farmers are concerned they will not be able to produce enough free-range eggs to meet consumer demand when caged eggs are phased out.Key points:

  • Caged eggs will be phased out nationally by 2036
  • 36 per cent of WA’s eggs are caged
  • Farmers fear they will not be able to keep up with consumer demand for free-range eggs

Australia will phase out conventional layer hen cages by 2036, news that came amid an egg shortage in WA.Albany Fresh Farm Eggs owner Colin Ford’s 18,000 free-range hens have a laying rate of about 90 per cent, a figure similar to caged-egg production.But he said that would still not be enough for manufacturers.”I’m not too sure that free range can supply the demand for eggs … I’m not too sure where it’s going to head to when the ban on cages comes into place,” he said.”I think the industry will have to do a lot of soul searching to see where they’re going to get the bulk of their production from in terms of the manufacturing industry for eggs.”Eggs on a conveyer belt Albany Fresh Farm Eggs produces about 15,000 eggs daily from 18,000 hens.(ABC Great Southern: Sophie Johnson)WA egg shortage continuesCommercial Egg Producers Association of WA president Ian Wilson, a free-range farmer near Fremantle, said he could not see any benefit from the phase-out of caged eggs.”We struggle at the minute to have enough eggs on the shelves,” he said.”By phasing out the cages that’s going to take away more eggs that are able to be presented to the public.”Chicken in barn Farmers predict they will struggle to have enough free-range eggs.(ABC Great Southern: Sophie Johnson)Currently in WA, about 36 per cent of eggs produced are caged.”Over time when we take that percentage out it will leave a big vacuum to fill,” Mr Wilson said.”With the loss of [the] caged system, we really will find that we will struggle to have enough eggs.”Free-range premium priceMr Ford’s operation is not your typical free-range farm, running at 2,000 hens per hectare compared to the industry standard of 10,000.He said to produce eggs the way he did, extra costs were incurred for the premium product.Free range chickens up close outside Mr Ford has been in the egg industry for four years.(ABC Great Southern: Sophie Johnson)”A lot of it comes down to cost of production, and obviously we incur extra costs to be able to achieve what we want to achieve … we can’t compete on price,” he said.”What we try to do is work with the bird rather than against it, so we provide the bird with an environment where it can display all its natural behaviours.”He said what he did was a niche approach.”You can’t [just] convert to this system, you’ve got to be all in to do it properly,” Mr Ford said.Great Southern newsletter: Local news in your inboxABC Great Southern will deliver a wrap of the week’s news, stories and photos every Thursday. Sign up here. .

Australia’s AGL Energy rejects $3.5 bln offer, backs decision to split

Australia’s AGL Energy rejects $3.5 bln offer, backs decision to split

  • Australia’s 2nd richest man, Canada’s Brookfield made joint bid
  • Offer was at a 4.7% premium to AGL’s last close
  • AGL says demerger plans on track

Feb 21 (Reuters) – Australian power producer AGL Energy Ltd on Monday rejected a $3.54 billion takeover offer from billionaire Mike Cannon-Brookes and Canada’s Brookfield Asset Management (BAMa.TO) in favour of its plan of splitting in two this year.AGL said the A$7.50 apiece proposal from Cannon-Brookes, Australia’s second-richest man and co-founder of software firm Atlassian, and the Canadian buyout group was a 4.7% premium to the stock’s Friday close and undervalued it.”The proposal does not offer an adequate premium for a change of control and is not in the best interests of AGL Energy shareholders,” AGL Chairman Peter Botten said.Register now for FREE unlimited access to Reuters.comRegisterThe unsolicited cash proposal with an option for AGL shareholders to elect a scrip alternative also provided limited other information about how the deal would be structured, Botten said.Cannon-Brookes’ investment vehicle, Grok Ventures, and Brookfield did not immediately respond to a request for comment.The profits and value of AGL, Australia’s biggest polluter, have shrunk on government pressure to cut retail rates, waning investor appetite for coal-fired power and an influx of solar and wind energy into the grid.The Australian Financial Review had reported on Sunday that the parties made a joint bid for AGL which included plans to halt its proposed split into a bulk power generator and a carbon-neutral energy retailer. AGL plans to re-brand as Accel Energy and hold the company’s coal-fired power plants and wind farm contracts. It would spin off AGL Australia Ltd, the country’s biggest retailer of electricity and gas, into a separately listed company. read more AGL said earlier this month it had made significant progress in its demerger plans and repeated on Monday that the split was on track to be completed by June. “The board is confident that the demerger will create a strong future for both parts of the business,” Botten said.($1 = 1.3961 Australian dollars)Register now for FREE unlimited access to Reuters.comRegisterReporting by Harish Sridharan and Shashwat Awasthi in Bengaluru; editing by Grant McCoolOur Standards: The Thomson Reuters Trust Principles. .