News for the Egg Industry Worldwide
September 2007/Volume 112 Number 9
Midwest Poultry Services Looks to the Future 1
Industry News 3
Traceability: Very Important, but Analyze Costs 4
Export Picture Keeps Getting Better 8
Research Review 10
Boom Continues for Non-Confined Laying Systems 12
Food Safety Concerns in China Boost Demand
for Premium Foods 16
Marketplace 18
www.wattpoultry.com
Midwest Poultry Services Looks to the Future
profits for egg producers nationwide.
A big question surrounding the cage-free issue, Krouse says, is whether the
marketplace or animal rights activists
determine its outcome, and it’s uncertain how customers will ultimately
weigh in on the issue. What is certain,
he says, is that the issue will keep egg
producers cautious.
Photo: Gary Gerard.
Bob Krouse, President of Midwest Poultry Services,
thinks the industry is likely to remain profitable overall
during the next three years.
By Edward Clark, Editor
Like many egg companies in 2007,
this is not a year of expansion for
Midwest Poultry Services, L.P.
“Our goal is to keep the flock size where
it’s at,” says Bob Krouse, president of
the Mentone, Ind., firm.
While having no growth plans for the
near term, longer term, Krouse says that
companies like his—one of the nation’s
top egg companies with 6 million layers—will have to grow to match the
needs of expanding customers. But not
for a while, and not before some major
industry issues are worked out.
Besides Indiana, the company has operations in Illinois, and Ohio, “where the
feed markets are,” says Krouse, who has
been with the company for 24 years.
years,” he says. One big reason why is
animal welfare. He, like others in the
industry, are reticent to spend the $2
million to $4 million necessary for a
new layer house, not knowing what his
customers may demand on how eggs
are produced.
Closely related, he says, is the capital
outlay Midwest Poultry Services has invested over the past 5 years to increase
cage space from 52 sq. in. to 64 sq. in. to
meet new United Egg Producers animal
welfare guidelines. Such shifts significantly contribute to why there was no
surplus in eggs this summer, and strong
Market for Eggs Growing
“I think the market for eggs is growing and retailers will let their customers
decide. Most will have a selection available. I can’t see the 5 percent animal
welfare activists denying 95 percent of
a good inexpensive protein.” He adds
that he continues to believe that egg
consumption will keep growing, “and
that the American Egg Board is doing a
good job to accomplish that.”
Other issues keeping producers cautious about expanding are regulatory
concerns, such as the environment, and
current high feed prices coupled with an
unknown demand caused by the emerging ethanol market that, he adds, “keeps
people on the ropes a little.”
It’s been harder this time around,
Krouse says, “to produce our way out
of profitability like we did in 2004.”
Regarding the strength of egg prices, he
Animal Welfare Deters
Industry Growth
Krouse is optimistic on profits in the
near term. “Overall, I think the industry will be profitable over the next three
