French finance system for in-ovo sexing collapses

France 1 of only 3 EU countries that made in-ovo sexing of eggs compulsory in 2022 to avoid the massive culling of male chicks. To cover the costs estimated at over €40 million a year, an agreement was reached with the large supermarkets to put a voluntary supplement on all eggs they sold. From March this year, that supplement amounted to €0,39 per 1,000 eggs. The deal was to be extended in September to all wholesalers and other parties in the egg supply chain, in combination with a planned reduction of the supplement to €0,31 per 1,000 eggs.

Price war creates reluctance from retailers

However, the retailers have always been reluctant to play their part, mostly because of the intensive price war for all food products they are engaged in. A few months ago, their organisations accused CNPO of not listening to their arguments and left the egg council. Now, CNPO has hit back with the cancellation of the finance agreements altogether.

The organisation unilaterally replaces the system based on contributions from the sales of eggs in all distribution channels by a one where the costs of in-ovo sexing are directly integrated in the production costs for the poultry producers. In order to do so, the costs will be included in the production costs index of the research institute for the poultry industry Itavi. “Farmers will then be free to pass those costs on to each link in the supply chain up to the end user, whether it is distribution, catering or egg processing agri-food companies,” CNPO said.

“A responsible and courageous decision”

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. This new financing system replaces a complex system whose financial balance was not assured and risked jeopardising the sector.”

Beaudet adds: “Our sector is exemplary in terms of animal welfare. A pioneer in the implementation of egg sexing, it is continuing its voluntary transition to alternative breeding to cages. In our 2030 plan, the sector aims to have 90% of hens in alternative farms – soil, free-range, red label and organic. Already, nearly 75% of hens in France live outside enriched cages, well above the 39% of the European average.”