The Impact of the Spanish Egg Standard Extension Five Years After Its Approval (2020–2025)
The approval of the Standard Extension (SE) for the Spanish egg sector in August 2020 marked a significant milestone, providing the sector with a legal instrument to fund activities of general economic interest. Five years after its entry into force, it is essential to review the mechanisms, objectives and timeframe of this initiative promoted by INPROVO, the Interprofessional Organisation for Eggs and Egg Products, initially approved to operate for an initial period of three campaigns but which, given its success, was extended in August 2023 for a further five years.
Who drove the implementation of the standard extension?
The standard extension was an agreement promoted by INPROVO over several years. Following a public consultation phase at the end of 2019, the plenary of the General Council of Agri-food Interprofessional Organisations approved it on 22 July 2020.
The official text was approved on 6 August and published in the Official State Gazette (BOE) on Friday 14 August 2020. The Standard Extension entered into force on 16 August 2020.
This was a significant development because the egg sector was one of the few large agri-food sectors in Spain that still lacked such an instrument. A Standard Extension is the official recognition, by the Ministry of Agriculture, Fisheries and Food (MAPA), of an agreement adopted by an Agri-food Interprofessional Organisation (AIO). This agreement is mandatory for all operators and producers in the sector, whether or not they are members of the AIO, including with regard to financial contributions.
An Agri-food Interprofessional Organisation (AIO) is a voluntary grouping of organisations representing different links in the agri-food chain, such as producers, processors, marketers and distributors. Its aim is to coordinate efforts and serve as a meeting point to work for the benefit of a specific sector or product, with a view to improving technical, economic and commercial aspects. AIOs are sector-specific and more than 25 are currently recognised as Agri-food Interprofessional Organisations in Spain: those for eggs, rabbit, beef, sheep, pork, etc.
Who was required to make financial contributions, and for how long?
The standard extension for the Spanish egg sector was established with a duration of three campaigns: 2020/2021, 2021/2022 and 2022/2023.
All producers of table eggs with 1,000 hens or more were required to contribute under this standard.
The mandatory financial contribution was set at €20 per year for every 1,000 commercial laying hens.
- Calculation of the contribution: The amount was based on the estimated annual flock size on the farms. For calculation purposes, the estimated annual flock was taken as 85% of the farm’s maximum capacity.
- Obligated producers: Holders of production farms registered in the General Register of Livestock Holdings (REGA) with a minimum capacity of 1,000 laying hens.
- Exemptions: Farms with a capacity of fewer than 1,000 hens were exempt, as were those used for meat production, scientific or educational purposes, zoological collections, and those engaged in the reproduction of these categories.
How have the funds collected been used?
INPROVO projected raising nearly 3 million euros over the three campaigns. Specifically, a collection of €937,158 per campaign was forecast, totalling €2,811,474 over the three years.
The funds collected were earmarked for specific purposes, with the aim of maximising the effectiveness of actions for the collective benefit of the sector. The allocation of funds was as follows:
- 70% for Communication and Promotion: The largest share of resources was allocated to this purpose. This included generic promotion of eggs and egg products in both domestic and export markets, direct communication campaigns targeting consumers and key influencers, and actions to improve the sector’s reputation, such as responding to health alerts and providing information on EU regulations.
- 10% for Research, Development and Innovation (R&D&I): Allocated to carrying out sector studies on improvements in quality, animal health, technology and marketing. This also included collaboration with universities and technology centres.
- 10% for Improving Market Transparency and Efficiency: These funds were directed towards sector-wide studies on information systems, promoting fair trade practices and fair competition, and seeking improvements in added value and fair remuneration for operators.
- 10% for Management Costs: To cover the administrative expenses of the standard extension itself.
The 2020–2023 Standard Extension provided the Spanish sector with a robust financial tool to collectively and mandatorily address common challenges such as image improvement, production innovation and supply chain efficiency — objectives that had historically been difficult to fund without a mechanism compelling all relevant market players to contribute. If the Standard Extension were viewed as a sector trust fund, its 2020 approval was the key that enabled INPROVO to deploy almost €3 million dedicated exclusively to the promotion and strategic development of the Spanish egg during the three campaigns that concluded in 2023 — campaigns that, given their success, have been extended through to 2027.
Has it been worth it?
The balance sheet, five years after the approval of the standard extension for eggs in 2020 and the mandatory contribution for egg producers, could not be more positive: not only has the continuous downward trend in egg consumption been halted, but both consumption and value have increased. Obviously, this is not solely the result of campaigns to add value to eggs (avian influenza, the slow but unstoppable shift towards cage-free systems, higher labour and animal health costs, etc. have all pushed up “the egg as a product”), but this price increase would have been something Spanish poultry farmers would have had to “swallow hard” had it not been for this enormous groundwork, financed by the standard extension, to add value to one of the finest foods that nature has given us to feed humanity.
Federico Castelló
Director and Founder of NeXusAvicultura
For further information:
-. Website of INPROVO and News on the Egg and Egg Products Interprofessional Organisation
-. Poultry farming in Spain
-. First standard extension for the Spanish egg (Order APA/793/2020, of 6 August 2020, in force from 16 August 2020 to 15 August 2023, three years)
-. Second standard extension for the Spanish egg (Order APA/817/2023, of 10 July 2023, in force from 16 August 2023 to 15 August 2027, five years)