In early March, it was reported that a case of bird flu had been discovered in a commercial poultry flock in Co. Monaghan, which then subsequently spread to other flocks.
Since the onset of the Covid-19 outbreak, the issue of bird flu – and it’s effect on poultry farmers in the Co. Monaghan area – has somewhat gone ‘under the radar’.
However, the potential losses faced by poultry farmers – particularly egg producers – appear to be serious, with one egg producer telling AgriLand: “If it wasn’t for the coronavirus, bird flu would be all over the news.
This bird flu has the potential to literally leave no Irish eggs in the country if there isn’t a safety net put in place for farmers going forward.
The farmer, who did not wish to be named, explained that egg producers were already facing low margins and poor returns on their produce.
“We have commercial layers and free-range layers. On the commercial side of things, the pennies have been pinched off of us for years.
“If there is an oversupply of eggs, you get cut. Normally, when you do get cut, you never recover that back. What farmers are getting for their eggs, regardless of whether it’s free-range or commercial, it’s a joke,” the farmer argued.
The bird flu is in wild birds and you can’t stop it. These viruses are getting stronger and stronger and stronger.
He claimed that the situation is exacerbated by a lack of assistance on the part of egg packing industry and, particularly, supermarket retailers.
“It’s a crying shame what’s happening. On the commercial side of things, we’re working on margins of 10c to 12c for a dozen of eggs. The packers are getting anywhere between 20c and 30c of a mark-up, and the supermarkets are getting between 40c to 50c per dozen on our eggs.
“We’re taking 90% to 95% of the risk in this business. The packers might take more risk if there’s an oversupply of eggs and they sell them off cheap, but that doesn’t happen too often,” the farmer argued.
Farmers have to realise – especially new ones getting into this business – that for years this was a low-risk business. Now, overnight, it has changed into a very high-risk business, and it has the potential to bankrupt farms going forward…if something isn’t done.
He continued: “We’re being squeezed every day, every year. We’re doing all the work and taking all the risk, and not getting full rewards for our efforts. Everyone [the packers and retailers] has to make their money, but we seem to be getting 10% of the profits and 90% of the risk…There is no safety net in place.
“Eggs are flying out the doors [of retailers] at the minute… When you see your product in such high demand – and the risks we’re taking – and you ask for a little bit to be passed back to you, and you’re told you’re not getting anything, it’s very, very frustrating.
“Farmers need to be aware that, just because it’s been a very successful sector for the last 10, 15 or 20 years, that can change big time.
If you build a 16,000-bird house, and it’s going to cost you €800,000, and come next winter bird flu hits you, and you’re out of production for six months, you’ll be facing losses of €6 or €7 per bird, and paying your bank back on top of that.
“Nobody is listening to us. We’re facing financial ruin, and the average person doesn’t know what is going on behind the scenes. The Department of Agriculture, Food and the Marine needs to put something in place to protect the poultry business going forward, because we won’t be here in a couple of years,” the farmer warned.
Department’s stance
In response to a query by AgriLand, a department spokesperson said that the H6N1 subtype of avian influenza (which is not a health concern for humans) has been discovered in seven flocks in Co. Monaghan since the first outbreak – six of which are egg-producing flocks – with tests currently being carried out on an eighth flock.
“The sector has acted very promptly in voluntarily culling the affected flocks with a view to minimising the spread of the disease. All known affected flocks have now been depopulated,” the spokesperson explained.
Officials from the department have met recently with representatives of the Irish poultry sector and from the IFA [Irish Farmers’ Association] in relation to a number of issues arising from the current outbreak. At this meeting, financial assistance was sought to offset the costs of depopulation and rendering of flocks affected by avian influenza.
“There is no legal basis for mandatory compensation in respect of this particular subtype of the disease, as it is not a subtype defined under the relevant EU legislation…A business case for financial supports to partially offset the costs of depopulation and rendering is currently being considered by the department,” the spokesperson noted.