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Tamworth Electorate Egg Producers

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About this Item
Subjects -  Federal State Relations; Safety and Standards; Eggs and Poultry
Speakers - Draper Mr Peter
Business - Private Members Statements


    TAMWORTH ELECTORATE EGG PRODUCERS
Page: 21019


    Mr PETER DRAPER (Tamworth) [5.55 p.m.]: Tonight I highlight the uncertain future facing many egg producers in the electorate of Tamworth and, indeed, across New South Wales as a whole. Currently, the State's egg producers are facing the daunting task of restructuring their businesses to meet new national animal welfare standards in relation to cage sizes for layer hens and egg farming. Those new standards were agreed upon in August 2000 at a meeting of State, Territory and Commonwealth agriculture Ministers and it was decided that all existing cages would be phased out by 1 January 1 2008. In brief, the Ministers agreed to modest increases in cage space per bird for all cage systems commissioned after 1 January 2000, increased research and development into enriched cages, development of a beak trimming accreditation program backed by nationally consistent legislation, development of a new model code of practice for the keeping of poultry and the development of a quality assurance program for commercial egg production to be underpinned by State and Territory legislation providing for animal welfare.

    Six years later Queensland, Tasmania and the Australian Capital Territory have implemented regulations in accordance with that agreement, but the other States, including New South Wales, have so far done little to give certainty to egg farmers by enacting legislation. In New South Wales egg producers are flying blind as to their obligations under the looming regulations, as little or no detail has been released about the requirements of the new laws. Egg producers are now at a critical stage and legislation must be put in place to plan the placement of their final laying flocks in those cages that will become illegal after the 31 December 2007.

    One local egg producer, Mr Bede Burke, who currently farms 40,000 birds, has recently had a development application approved with Tamworth Regional Council to build a 120,000 bird farm. The estimated cost is about $40 per bird, or $4.8 million, to meet the proposed new cage size standards. Mr Burke runs an integrated farm where he grows his own grain, mills feed for layers and young pullets and rears his own birds. Mr Burke is one of only a few in the area who has made a move towards adapting to the looming changes, despite knowing next to nothing about what the new legislation will eventually require. He informed me that the mood is grim among his fellow producers, and the word is that many will be forced to exit the industry altogether once the new standards are put in place. Many are reluctant or unable to reinvest in new cages. They still have no guarantees that they will be able to produce from the new cages for a minimum 20-year period as agreed to by all the State Ministers.

    We are now at a point where the Minister for Primary Industries needs to allay the fears of egg producers by introducing legislation on new cage standards. While producers with integrated farms, such as Mr Burke, are being proactive during this time of uncertainty, others feel they cannot muster the resources at a cost of $40 per bird. Because they do not know what the legislation will contain, few have made moves to prepare for the new cages, and the electorate of Tamworth could be littered with many empty poultry farms come 2008. I understand a steering committee has been put in place by the Minister to advise him on the content of future legislation, so surely he will act on introducing the legislation without delay.

    Tamworth has 28 egg farms producing about 17.8 million dozen eggs annually. The break-even farm gate price for eggs is about $1.10, generating some $20 million for the local economy. The industry directly employs about 80 people, with approximately 240 indirectly employed. The area produces about 15 per cent of the State's eggs. At one stage it was producing one-third of all eggs in New South Wales. As spent hens are worthless, farmers need to produce about 30-dozen eggs to fully depreciate their layers over a 70-week laying cycle. Before they receive the birds, an order has to be placed for them to be hatched. Hatching a bird takes three weeks, and the young birds are reared for a period of 20 weeks before they lay their first egg. There are roughly 97 weeks left until the new cage regulations come into effect across Australia in 2008. Hence the need for urgent legislation.

    I commend Minister Macdonald for pressuring his Federal counterpart, Peter McGauran, to initiate such a restructure package. The Australian Egg Corporation Ltd is calling for a $23 million rescue package as a small measure of justice for those farmers forced to comply with constantly changing government regulations. Without backing from the Federal Government to meet those changes, many farms will become valueless and farmers will be cast aside through an agenda imposed upon them that has questionable scientific backing to justify it. The time has come for action. The egg producers in my electorate are waiting anxiously for the legislation to be introduced into the New South Wales Parliament that will give them some measure of certainty to make the massive investments that will secure jobs in our local community and to make sure that Tamworth has a viable ongoing economic base, of which we are so proud.

    Private members' statements noted.
    The House adjourned at 6.00 p.m. until Tuesday 7 March 2006 at 2.15 p.m.
    ______________


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