Eggs marketing review finds system is operating effectively

17/8/94

A major review of the current statutory marketing arrangements for eggs has concluded that the system is operating effectively to satisfy the requirements of consumers, retailers, manufacturers and producers.

It said there was no need for significant changes or deregulation of the industry.

The review of the Marketing of Eggs Act was tabled in State Parliament today by Primary Industry Minister Monty House.

The Act controls the operations of the Western Australian Egg Marketing Board (WAEMB), production, sale and distribution of eggs in this State. The board markets some 20 million dozen eggs a year to local and overseas customers, produced by 144 licensed farms.

"The review was to ensure the Egg Board was efficiently marketing and distributing the highest quality eggs and egg products, at the lowest possible price, on a year-round-basis," Mr House said.

"The review examined the deregulation of egg marketing in New South Wales, Victoria and South Australia.

"It found deregulation created instability in the industry, and there was no conclusive evidence that deregulation had provided cheaper eggs to consumers on a long-term basis.

"The board has been successfully pursuing opportunities to sell egg products to the food processing and services sector and is developing profitable export opportunities in Singapore and South East Asia."

Mr House said the minor improvements to the operations of the WAEMB suggested by the review included:

·       changing the board composition to two elected producer representatives, the Minister appointing an independent chairman and two members with appropriate commercial skills;

·       increasing the maximum base hen quota for a licence from 30,000 to 75,000 hens. Currently quotas run at about 72 per cent of base quota;

·       amending the definition of an egg producer to be a person who owns or controls more than 50 adult female fowls;

·       that the board continue to pursue export market opportunities for eggs and egg products;

·       more commercial reporting of the board's annual accounts to improve communications on its financial status and activities;

·       that the board investigate a better method to facilitate the transfer of hen quotas (such as a register of quotas for sale) to make market information more transparent; and -

·       special licences for remote areas to gain automatic annual renewal and the board  permitted to purchase surplus eggs from licence holders in these areas.

Mr House said the recommendations would be implemented in consultation with the WA Poultry Farmer's Association and the WAEMB.

Media contact:  Will Henwood (09) 481 2044 or pager 480 5325