Increasing Flock Performance Bolsters Business Case for In-Ovo Sexing
Over the last several decades, genetic improvements in major layer breeds and scientific poultry management have drastically improved flock productivity. In the last few years in particular, longer and more productive lay cycles have increased the number of eggs that a typical hen might lay over the course of its life. For example, in the US, the number of eggs laid per year for each hen has increased by 15% in two decades, climbing from around 260 eggs per year in 2002 to 300 in 2022. Given that in-ovo sexing is a one-time cost for each hen at the beginning of its life, this increased performance is lowering the total cost of in-ovo sexing for egg marketers and retailers.
The length of lay cycles has also generally been increasing around the world. Historically, induced molting has been used to lengthen the period of time in which layers can produce high-quality eggs. However, induced molting could present a number of welfare challenges and is banned in some countries. Fortunately, recent genetic improvements have led to ‘long life’ layers, which can maintain high persistency of lay and egg quality for 500 eggs over 100 weeks.
A recent post from Joice and Hill Poultry, a UK hatchery and distributor for Hendrix Genetics, highlights this dynamic. A flock of hens, hatched in the Joice and Hill hatchery and managed by John and Nicola Peate at Cross Farm, achieved remarkable performance figures of 544 eggs over a 105 week life cycle.
White pullets produced with in-ovo sexing technology cost roughly $3 more than manually sexed pullets in the EU. If we assume a more standard productivity of 350 table eggs per bird, the total cost of in-ovo sexing works out to 0.86 cents per table egg. If, however, in-ovo sexing were used on a flock that reached 544 table eggs, that reduces the cost of in-ovo sexing to 0.55 cents per table egg, a 36% decline.
This additional production cost is significantly less than consumers in US, Latam, and Europe report being willing-to-pay for eggs produced with this in-ovo sexing. Additionally, according to a survey of UK consumers commissioned by In Ovo, nearly half of consumers that would pay more for cull-free eggs would be willing to pay an increase of 10 pence per egg, 20 times more than the added production cost of in-ovo sexing.
This discrepancy between production cost and willingness-to-pay could give rise to a higher-margin, value-added segment of eggs, benefitting every stakeholder in the supply chain. Marketers can drive demand by differentiating themselves with this unique selling point, generating positive media coverage and consumer interest like we’ve seen in the US rollout. Retailers have a similarly significant opportunity, as a notable 44% of UK consumers in the same survey expressed that they would even switch supermarkets to ensure that they were able to purchase cull-free eggs.
All evidence points to the adoption of this technology as a prime opportunity for egg producers to connect with their welfare-conscious consumers and establish their eggs as having even higher standards of production than competitors. But only early adopters can benefit from this competitive edge. UK marketers and retailers should take a lesson from the marketing rush of the US rollout and prepare themselves sooner rather than later for the adoption of this technology. With an opportunity this promising, you either beat your competitors to the punch or get caught napping when they outflank you.
Are you a UK retailer or egg marketer looking to differentiate your brand with in-ovo sexing? Reach out to us at contact@innovateanimalag.org.
