July 28, 2010

Israel's chicken farmers lose housing grant

Israel's poultry farmers are no longer to receive state support for new chicken houses for more than 12,000 birds, and the future of battery cages now looks uncertain.

The poultry breeders of the Galilee have lost their preferential eligibility for state support for new chicken coops, under an Ministry of Agriculture poultry sector reform, according to reports.

Originally, the Galilee-based farmers were eligible to receive grants equal to 50% of their investment in new chicken coops, while breeders anywhere else were eligible to receive at most 20%. But the new version of the reform, approved by the cabinet earlier, showed no preference for egg producers based on region. The average entitlement, equal for all, is 42.5% of the investment.

The actual percentage to which each breeder is entitled depends on the number of laying hens in the new coops, as opposed to geography.

The cabinet also decided to increase the state's contribution by ILS40 million (US$10.4 million) to a total of ILS280 million (US$73.4 million).  It abolished special investment grants for giant coops with more than 12,000 birds, on the ground that even without state help, they paid off due to size advantages.

However, grants kick in below that point: a coop with 8,000-12,000 hens is eligible for a grant equal to 35% of the investment. A coop with 6,000-8,000 hens is eligible to get back 45% of the investment.

Meanwhile, the Ministry of Agriculture suggested keeping the chickens in cages that are gradually expanded from the current 350 square centimetres, up to 750 by 2022.

Animal rights organisations are demanding that battery cages be abolished outright and that the birds be allowed freedom to move. The ministry said abolishing battery coops will raise the price of eggs by 20%.