French finance system for in-ovo sexing collapses

French finance system for in-ovo sexing collapses
CNPO president Yves-Marie Beaudet: “This is a responsible and courageous decision by all the members of the sector, which will simplify the system while ensuring the sustainability of our approach to improve animal welfare, in line with the expectations of our consumers.” Photo: Canva

In a significant shift for the French egg industry, the National Committee for Egg Product Producers (CNPO) has officially terminated the interprofessional financing agreement for mandatory in-ovo sexing of eggs. This decision marks the culmination of extensive discussions and conflicts regarding the costs associated with this welfare initiative.

Background: The Drive for In-Ovo Sexing

France, one of only three EU countries to mandate in-ovo sexing since 2022, implemented this policy to eliminate the large-scale culling of male chicks. To cover the projected €40 million annual cost of this initiative, a voluntary surcharge was added to egg prices. Starting in March, the surcharge was set at €0.39 per 1,000 eggs, with plans to reduce it to €0.31 in conjunction with an expansion to all wholesalers in September.

Challenges with Retail Participation

Despite the well-meaning initiative, retailers have expressed significant hesitance in supporting these surcharges. Highly competitive food pricing has led to a reluctance to absorb additional costs. Recent tensions escalated when retailer organizations withdrew from the egg council, citing a lack of responsiveness from CNPO regarding their concerns.

New Financing Model Introduced

In response, CNPO has opted to eliminate the previous financing agreements entirely. The new model directly incorporates the costs of in-ovo sexing into poultry producers’ production expenses. These costs will be tracked via the production cost index maintained by the poultry research institute, Itavi. CNPO emphasized that farmers are now empowered to pass these costs throughout the supply chain, affecting distributors, caterers, and food processing companies alike.

Moving Forward: A Commitment to Animal Welfare

Yves-Marie Beaudet, president of CNPO, hailed the decision as “responsible and courageous,” emphasizing that it will simplify the previously convoluted system while reaffirming the commitment to animal welfare. “This is a sustainable solution that aligns with consumer expectations while maintaining our sector’s integrity,” he stated.

Looking Ahead: Sustainable Farming Goals

Beaudet further lauded the efforts of the French egg sector in promoting animal welfare and transitioning away from conventional cages. According to the 2030 plan, 90% of hens are aimed to be housed in alternative systems, including free-range, organic, and red-label farms. Currently, nearly 75% of hens in France live outside enriched cages, significantly surpassing the EU average of 39%.

As the French egg sector embarks on this new chapter, the focus remains squarely on enhancing animal welfare standards while navigating the complexities of a rapidly changing market landscape.

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