Modifications to British Columbia’s egg marketing plan will bring organic producers into the quota system at a reduced rate.
The program goes into effect Jan. 1 and should provide more price stability to the sector, said Peter Whitlock of B.C. Egg Producers. It will also provide the benefits of a supply managed system to larger commercial producers who face boom and bust scenarios in an unregulated market.
“The biggest objection of the organic guys is that they didn’t want to have to buy quota,” Whitlock said.
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“This gives them a way to come in, be regulated and gain the benefits of supply management and the health and safety regulations that protects the whole industry.”
B.C. Egg Producers announced the seven-year temporary restricted licence quota program on Dec. 4. It is open to certified free-range, organic and free-run producers. It allows applicants to place up to 5,000 birds under the program at a cost of 23 cents per bird per week.
Eight cents of the 23 cents levy is accumulated in a special bank account for each producer. At the end of years four, five and six, half of the accumulated levies will be used to purchase birds for regular quota allocation.
The egg producers board will issue the remaining 25 percent at the end of the seventh year as regular quota.
Organic producers may keep 99 birds before acquiring a quota.
There are a number of small family operations in the province, but are not considered commercial operations because flock sizes are small. Only six organic producers will come under the program.
On Vancouver Island for example, there are 80,000 unregulated birds. The average flock size is 23.
There are 130 registered egg producers in B.C. They raise 2.3 million layers that produce 54 million dozen eggs annually.
Quota trades at around $80 per bird.
Whitlock said the organic sector is facing pricing shortfalls.
“The problem right now is that producers who are not in the system appear to be selling their product at five cents above the grader’s costs,” he said.
A five cent markup is not enough to make a profit.
“There appears to be an overproduction problem right now.”
The B.C. egg breaking plant reports receiving eggs from 17,000 birds, which indicates too many organic eggs for the market.
