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Impacts of stricter legal standards in the EU for keeping laying hens in battery cages

Published online by Cambridge University Press:  18 September 2007

R. Wolffram*
Affiliation:
Market Research Department, Institute of Agricultural Policy, Market Research and Economic Sociology, University of Bonn, Nussallee 21, 53115 Bonn, Germany
J. Simons
Affiliation:
Market Research Department, Institute of Agricultural Policy, Market Research and Economic Sociology, University of Bonn, Nussallee 21, 53115 Bonn, Germany
A. Giebel
Affiliation:
Market Research Department, Institute of Agricultural Policy, Market Research and Economic Sociology, University of Bonn, Nussallee 21, 53115 Bonn, Germany
R. Bongaerts
Affiliation:
Market Research Department, Institute of Agricultural Policy, Market Research and Economic Sociology, University of Bonn, Nussallee 21, 53115 Bonn, Germany
*
*Corresponding author: e-mail: [email protected]
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Abstract

Resulting from EU-wide initiatives of animal welfare organizations, the Council of the European Union has approved stricter legal standards for keeping laying hens in battery cages (Council Directive 1999/74/EC). The economic impacts of this legislative review can be summarized as follows:

1. The current trade protection in favour of EU-producers versus imports from non-member countries amounts to approximately 0,01 Euro/egg. Hence, there is little scope for passing increased costs on to consumers.

2. Competitive disadvantages for the EU-producers, caused by increasing legal standards for keeping laying hens will become even more critical if future WTO-agreements cause further reduction in tariffs. As a whole, this will lead to a drastic cut in EU egg production.

3. Due to their cost advantages, countries with less stringent standards for keeping laying hens will extend their share of the EU- egg market. Thus, looking at the global picture, stricter legal standards within the EU will not lead to an improvement of animal welfare, but to a regional shift of the problems.

4. The fall in egg production in the EU will result in heavy losses to net value-added and employment. Given a decline in production of 10 billion eggs, it can be estimated that

- net value-added will decrease by approximately 270 million Euros.

- employment will lower by approximately 12,000 jobs.

Type
Regional Report
Copyright
Copyright © Cambridge University Press 2002

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References

Council of the European Union (1999) Council Directive 1999/74/EC of 19 July 1999 laying down minimum standards for the protection of laying hens. Official Journal L 203,03/08/1999 pp. 0053–0057.Google Scholar
European Commission - Scientific Veterinary Committee - Animal Welfare Section (DG VI/BII.2) (1996) Report on the Welfare of Laying hens. Brussels 30 October 1996.Google Scholar
Maβfeller, M. (1998) Was wird aus der Käfighaltung? LZ Rheinland 49: 3031.Google Scholar
N.N. (2000a) EU: Anteil der Hennen in Alternativhaltung steigt verhalten. ZMP-Marktjournal Eier, Vol. 3, No. 9: 3031.Google Scholar
N.N. (2000b) USA: Mehr Konsumeier exportiert. ZMP-Marktjournal Eier, Vol. 3, No. 8: 30.Google Scholar