Financial effects from introduction of European egg marketing standards on the layer farms in R. Macedonia

Abstract

This paper presents the financial effects from introduction of the new EU method for grading the eggs according the size (weight) in 4 classes instead of Macedonian method of grading in 7 weight classes based on the comparative analyze of production records in three flocks of ISA commercial layers (Flock 1 - 18125, Flock 2 – 17587, Flock 3 - 16818). The comparison of the financial effects of the introduction of the EU grading system is made by the partial budgeting analysis. Application of European model for egg grading resulted in increased income of about 18-37 denars per average hen-day layer that improves the financial effects at the layer farms. Expressed per unit of production, egg grading based on the egg weight in 4 classes results in increased income per unit of production of 0.1-0.2 denars and is significant increase of the farm profitability knowing that each layer produces around 300 eggs during one production cycle of one year. Hence, the use of standards goes beyond marketing aspects, and can financially support the market without budgetary implications.