Free-Range Egg Marketing Standards (Amendment) (England) Regulations 2024

Considered in Grand Committee

16:47:00

Moved by

That the Grand Committee do consider the Free-Range Egg Marketing Standards (Amendment) (England) Regulations 2024.

My Lords, these regulations were laid before the House on 21 November 2024. This instrument has been laid to amend existing legislation governing egg marketing standards to enable free-range eggs to be marketed as such for the duration of mandatory housing measures, which restrict the access of laying hens to open-air runs. Currently, when free-range hens are placed under mandatory housing measures due to disease outbreaks such as avian influenza, the egg marketing regulations allow their eggs to continue to be labelled as free-range for 16 weeks only; this is known as the 16-week derogation period. If the mandatory housing measure lasts for longer than 16 weeks, eggs from those hens must be labelled and sold as barn eggs. The requirement for egg producers and packers to relabel free-range eggs as barn eggs once the 16-week derogation period is exceeded is difficult to implement in modern automated packhouses. This adds significant logistical and packing costs to the industry. This SI aims to remove the 16-week derogation period so that free-range egg producers and packers can label and market eggs as free-range for the duration of a mandatory housing measure, however long that may last. During mandatory housing measures, egg producers still have the higher operating costs of maintaining their free-range egg system, with the additional cost of having to ensure that hens are also temporarily housed indoors. The normal laying period of a productive free-range laying hen in the UK is around 90 weeks. This SI will remove the derogation, which affects only a small part of a laying hen’s productive life, with all the other free-range criteria still needing to be met—except access to open-air runs. In 2024, Defra held a joint consultation on these proposed changes with the Scottish Government. Some 70% of respondents supported the removal of the derogation. The removal of the 16-week derogation period has already come into force in Scotland. Following their own consultation exercise, the Welsh Government have also announced that they will introduce legislation to remove the derogation. In 2023, the EU amended its egg marketing standards regulations to remove the 16-week derogation period, which, through the Windsor Framework, applies also to free-range eggs produced in Northern Ireland. Without this SI, the introduction of any mandatory housing measures that last longer than 16 weeks—during, for example, an avian influenza outbreak—could be detrimental for English free-range egg producers and result in an increase in free-range eggs being imported from the EU and Northern Ireland. This could have a significant negative long-term impact on the English free-range egg industry. This SI restores alignment with the EU and Northern Ireland. It will also ensure that free-range egg producers and packers do not incur additional costs for adhering to government-imposed housing requirements. Outbreaks of avian influenza usually occur during the winter months—as was the case in 2021-22 and 2022-23, resulting in the introduction of housing measures for poultry that, in both cases, lasted longer than the 16-week labelling derogation period: for an additional six weeks in 2021-22, and for an additional seven weeks in 2022-23. So it is imperative that this SI is in place for the rest of the winter period and beyond. We continue to uphold the high standards expected by UK consumers and businesses. The change contained in this statutory instrument will safeguard our Great British egg industry. I beg to move.

My Lords, I thank the Minister for her introduction to this fairly straightforward SI, which allows, during an outbreak of avian flu, for poultry that are normally free-range with access to open-air runs to be kept in barns for an additional period of time. The current derogation’s continuous limit of time during which birds can be kept in barns and still be labelled as free-range is 16 weeks, as the Minister said. During the avian flu outbreak in 2021-22, the period was extended from 16 weeks to 22 weeks. During the 2022-23 outbreak, it was again extended—on this occasion, to 23 weeks. The UK is 90% self-sufficient in egg production. As markets for eggs need to be strictly in alignment with the EU’s for the purposes of trade, it is important that UK regulations closely match those in operation in the EU. As 94% of UK egg exports go to the EU, it is important that our egg producers are not at a disadvantage during outbreaks of avian flu. Removing the 16-week derogation limit will ensure that UK producers have parity with the EU; I fully support this move. However, as the UK seems to be affected by avian flu on a fairly regular basis during the winter months, I wonder whether there is likely to be a maximum number of weeks when birds need to be kept in barns and still be labelled as free-range. Six or seven weeks is a short period by which to extend the derogation but the effect of increasing the derogation, as happened in 2022 and 2023, meant that it was for nearly 50% of the year. Can the Minister give reassurance that this derogation will not be extended any further? I note that she said that the Government will extend it for “however long” is necessary. It is difficult to see how the consumer is likely to be persuaded that eggs that have been barn raised for30 weeks of the year, say, can still be labelled as free-range. As we all know, free-range eggs attract a premium on the price the consumer pays. I turn briefly to the subject of the consultation that took place between 9 January and 5 March 2024. Eighty egg producers, 20 egg packers and 49 members of the public responded. The response from the public is amazingly small, which raises questions. How was the consultation conducted? Where was it advertised? Given that consumers are very exercised about the conditions in which poultry are kept, and that many choose free-range eggs over barn eggs because they believe the birds have a better quality of life in the open air, I am surprised that more did not respond to the consultation. Perhaps the Minister can give details of how engagement with the public on the consultation was conducted. Despite that query and concern about the derogation limit being extended to beyond 50% of the year, I support the SI but feel that avian flu is not going away, and egg producers need a way of dealing with the effects that it has on their business, as well as consumers needing reassurance that they are getting what they pay for in buying free-range eggs.

My Lords, on Thursday this week the Minister and I will be discussing how we save the planet, so this important subject is good practice for that mega-issue. I am grateful to the Minister for setting out simply the unfortunate need for these amendment regulations. The Official Opposition support them. As she has pointed out, under the current regulations, eggs can be marketed as free range for a maximum of only 16 weeks if the hens are shut inside; after that, they are to be called barn eggs. However, as we have seen in recent years, housing restrictions for free-range hens due to Chinese avian influenza outbreaks have often exceeded the 16-week limit. Within 2021-22 and 2022-23 the outbreaks required measures for 22 and 23 weeks respectively. That has caused significant logistical and financial challenges for the egg industry, and the amendment rightly seeks to address those issues. The amendment is essential, as the Minister has said, because the EU has removed its 16-week limit and, unless we do likewise, our producers will be at a huge disadvantage. We would be importing eggs from the EU labelled “free range” while ours had to be downgraded to barn eggs. As long as there is a trading market in eggs in Europe, we need to stay consistent. On consistency, I was going to ask the Minister about Wales because, when I drafted my speech last week, I was under the impression that Wales was possibly going to stick with the 16-week rule, but I am delighted that it seems all four countries of the union will now be at the same level of derogation. I want to ask about enforcement. Producers in areas where there is a danger of Chinese avian flu will benefit from this amendment, but can the Minister assure us that it will not be possible for these measures to be abused, so that free-range eggs will be permitted to be advertised as such only when hen housing has been mandatorily restricted, not for any other reason? While this amendment is necessary at the moment, what if anything has the Chief Veterinary Officer said to Defra about how long these lockdowns may be necessary? I appreciate that that is a difficult question to answer and some of it is guesswork, but I hope that Dr Middlemiss will be able to remove the restrictions as soon as she thinks it is safe to do so. We, the Government and the industry must not get into the cosy rut of maintaining these lockdowns unnecessarily. We have already had a six-month one and if we have lockdowns that last a lot longer, as long as may be necessary, we will need to take a serious look at the definition of “free range”. I understand that in the consultation 66% of respondents felt that the proposal would cause little or no confusion among consumers. Of course not, since how are consumers to know how long the hens have been shut inside in the first place while the eggs are still labelled free range? I am not worried about consumers being confused but I am worried about misrepresentation. That brings me to my last point. As the Minister knows, the definition of “free range” is a bit farcical in any case—or perhaps it would be safer to say not what most people would think free range actually is. I recall in 1990, as a junior Minister in MAFF, three different supermarket directors marching into the ministry to demand that we adopt their own various definitions of free-range eggs, when we entered into negotiations in the EEC later that year. They varied from chickens getting a sniff of fresh air occasionally for a few minutes each day, to their being let out on a tiny patch of grass, to roughly the current definition that henhouses have little pop-out holes where the chickens could theoretically go out if they wanted to but, in many cases, the majority do not. No matter how unfree the range is, that is the current definition in Europe and we cannot get out of step with it. I suspect that there is no mood in Europe to change that definition and I hope that we in the UK will not take unilateral action to tighten it further, even if some animal welfare groups may demand it. As the noble Baroness said—I believe this too—if hens are confined inside for six months, nine months or even more, consumers have a right to know that their eggs are not really free-range. On how we address that, I am glad that the Minister is in charge and that it is not me back in MAFF, as it was in the old days, having to tackle this problem. Nevertheless, we are where we are; I support the amendment and what the Government intend to do here.

17:00:00

I thank noble Lords who took part in this short but important debate. As someone who keeps free-range hens—only a small number of them—I am very pleased that noble Lords have supported this SI because it is extremely important to have clarity for the industry on this matter. I thank noble Lords for their pertinent and helpful questions; I will do my best to respond to them all in turn. On Wales, as the noble Lord, Lord Blencathra, said, the Welsh Government have now indicated that later this month they will lay an SI to remove the 16-week derogation period. Subject to the Senedd’s approval, we expect the regulations to come into force in February this year. On enforcement, the Animal and Plant Health Agency’s egg marketing inspectors conduct risk-based and random checks on domestic and imported eggs at farms, wholesalers, distribution centres and packing centres. Local authorities also conduct checks at retailer level. The inspections ensure that only free-range eggs are labelled “free-range” during mandatory housing measures. As to the necessity of mandatory housing measures, I receive regular updates and advice from the Chief Veterinary Officer about all decisions on when to introduce, amend or lift regional or national avian influenza prevention zones, which mandate enhanced biosecurity, and on when to extend them to include housing measures. In fact, I am meeting the Chief Veterinary Officer tomorrow to discuss a number of issues, including this one. Such decisions are always based on risk assessments containing the latest scientific and ornithological evidence and veterinary advice. Restrictions will therefore apply only while the risk remains. In recent years, as I said earlier, the longest periods of mandatory housing measures being in place were in 2021-22, when it was for 22 weeks, and in 2022-23, when it was for 23 weeks. As I mentioned in my opening speech, the normal laying period of a productive free-range hen in the UK is around 90 weeks, so 23 weeks—the longest period— is actually a short period in that laying hen’s productive life. Both noble Lords asked about the length of mandatory housing and its impact on the meaning of “free-range”. I fully understand why that question is being asked, but we do not have any intention of reviewing the definition of “free-range”. If we decide to do so, we will need to assess how amending our regulations would affect the UK internal market, our industry and our trade with the EU as our biggest export market. The noble Baroness, Lady Bakewell, asked specifically about consultation. Defra ran a joint consultation with the Scottish Government. It was open between 9 January and 5 March 2024. This eight-week consultation was held to obtain a comprehensive understanding of the views of the industry and the general public on the intended purpose of the removal of the 16-week derogation period. It was an open consultation run on Citizen Space, and it was published and advertised through a press release and by contacting key stakeholders. A question was also asked about reducing the risk of confusing or misleading consumers. We are encouraging retailers to place signage where eggs are displayed for sale that informs consumers of the imposition of mandatory housing measures, the impact that this will have on marketing free-range eggs and, notably, that the rest of the free-range criteria continue to be met, except for access to open-air runs. We believe that that kind of transparency will benefit consumers and is in the best interests of producers and retailers. The important thing is to have transparency, so that everybody understands the situation and can make purchasing decisions bearing it in mind. In conclusion, I hope noble Lords fully understand the need for this instrument. Again, I thank them for their support. We need to enable free-range eggs to be marketed throughout the duration of any government-imposed mandatory housing measure to allow for trade to continue. The removal of this derogation will reduce additional logistical and financial pressure for egg producers, in the event of a mandatory housing measure. Aligning with the devolved Governments and the EU also ensures that English producers are not put at a disadvantage if mandatory housing measures come into force. When they are put into place, we of course take the welfare of the hens into consideration. As I said before, it affects only a small part of laying hens’ productive life, so we are confident that animal welfare standards will be maintained and that consumers will be assured that the welfare of the laying hens is still a key priority during any mandatory housing measures. We also must do our part to support our great British egg industry by ensuring that it has a level playing field with trading partners such as those in the EU, which have adopted similar provisions for their free-range egg producers. I hope that I have answered all the questions but will check Hansard to make sure. If I have missed anything, I will respond in writing.

Motion agreed.