By Cindy Green, Ag Innovation News
Photos by Rolf Hagberg
The egg is back.
Derided
for decades as a high cholesterol artery clogger, egg consumption slid
almost 50 percent from 1945 to 1991. Now eggs are gaining
nutritionists’ respect and sales are climbing. The average American
cracked open 250 eggs last year — over 70 billion total in the United
States.
Three billion of those were “designer eggs” — pasteurized,
low-cholesterol, cage-free — and now the hottest on the market: omega-3
enriched. At double the price of conventional eggs, poultry farmers
hope omega-3 eggs catch on here as they have in Canada, where they have
four percent of the market.
Six times the egg
“Four
percent is a ton of eggs,” about 120 million in terms of Minnesota’s
production, says Jerry Crawford, an AURI chemist in Marshall, Minn.
Minnesota is the nation’s eighth-largest egg producer.
Crawford
has analyzed eggs produced by the Southwest Minnesota Poultry
Cooperative and confirmed they contain six times more omega-3s than
typical eggs, are low in saturated fat and high in polyunsaturates.
“Jerry’s work was invaluable,” says Ray Teeter, SMPC’s manager.
To
meet label claims, the co-op’s 13 members have agreed to certain
standards, including cage-free hens, chemical-free production and
special feed.
A 10-percent flax blend in feed produces
eggs with 350 mg of omega-3 fatty acids; a typical egg has 60 mg. There
are no FDA recommendations on omega-3 consumption, but Canada
recommends a daily average of 1100 mg for women and 1500 mg for men.
Oily acid studied
Omega-3
is a fatty acid found in cold-water fish such as salmon, herring and
tuna and in vegetable oils such as flaxseed, linseed, soybean and
canola. An AURI-sponsored market assessment cites studies of Alaskan
Eskimos and Japanese fisherman that showed “increased consumption of
omega-3 fatty acids can decrease the risk of heart disease by 50 to 70
percent. … These benefits are attributed to the natural blood-thinning
ability of omega-3.”
The report also says omega-3s may
improve the ratio of “good” (HDL) to “bad” (LDL) cholesterol in the
blood, improve oxygen supply and brain function, and help relieve
rheumatoid arthritis and inflammatory disorders.
On
the downside, omega-3s have been linked to free radical production,
which can cause cell damage, increase cancer risk and accelerate aging.
Some egg producers fortify feed with vitamin E, an antioxidant that may
neutralize free radicals.
AURI worked with Southwest
State University marketing advisors to conduct the study, which was
completed in December. Grain farmers as well as poultry producers have
benefited from AURI’s work — both the nutritional and marketing
analyses, says DeEtta Bilek of the Buckwheat Growers Association in
Wadena, Minn., where SMPC purchases its feed. “We just couldn’t afford
to buy that kind of research — and more is needed.”
$2 a dozen
Omega-3
eggs sell for around $2.50 per dozen in the Twin Cities and less in
rural areas. Traditional egg prices can dip to 99 cents or less per
dozen.
SMPC has been selling omega-3, free-range eggs
for $1.60 per dozen wholesale, but wants to gradually increase that to
$2. Members net an average of 20 cents a dozen in sales to southern
Minnesota food co-ops and a few traditional groceries. Producers also
sell directly to consumers, setting their own prices for individual
sales.
So far, the markets are not huge; SMPC’s biggest
outlet is a St. Peter food co-op that sells 40 to 45 dozen a week. But
recently the co-op received a request for 90 dozen eggs a day from a
metro suburban co-op. “We can’t meet that now,” Teeter says, but it is
proof of market demand.
“Cooperatives need to have the
volume to satisfy the market,” says Dennis Timmerman, AURI project
director in Marshall. “The large producers will step in and take the
omega-3 market if smaller producers can’t. Then the opportunity will be
gone.”
Small co-ops like SMPC have two options. They
can sell eggs to a distributor that already has a customer base for
designer eggs and avoid the high cost of advertising, promotions and
building brand recognition. Or members can reap higher profit and
retain more control by selling eggs directly to consumers and
retailers. “But that will require significant marketing to sell the
public on the benefits of omega-3 eggs,” through coupons, brochures,
free samples and media promotions, the market assessment states.
The
co-op could also emphasize the eggs’ cage-free and organic elements,
markets that are expanding every year. Exporting presents opportunities
as well: consumers in Canada, Australia, Japan and England “are willing
to pay a premium for omega-3 eggs,” according to the report. In 2001,
Canada imported 19 million dozen eggs of all varieties, valued at $11.8
million.
Secrets of the feed
The
buckwheat, field peas, flax and other feed grains SMPC buys are grown
in Minnesota or North Dakota — the nation’s biggest flax supplier. Rich
in lysine and other amino acids as well as omega-3s, the feed is
reasonably priced, Bilek says. “People who compare our feed with their
local store say there is not much difference (in price).” A 50-pound
bag of conventional feed for hen layers (primarily a corn/soybean
blend) sells for about $7, the organic buckwheat/flax blend sells for
$7.75, and transitional feed is $7.25. Farmers who buy by the ton get a
discount. However, transporting the feed from northern to southern
Minnesota increases the cost.
Not all SMPC members use
the same feed; those with homegrown certified grain mix a concentrate
into their feed. But the nutritional result must be the same, says
Teeter, whose job includes verifying that farmers meet co-op standards.
“Basically, my job is to assist farmers in getting the right chickens,
feed, management and to see to it that the quality is the same on all
farms.”
Co-op members grade, candle and package their
own eggs. Teeter, a sprightly 79, picks them up and travels throughout
southern Minnesota selling eggs to co-ops and small grocers. A $125
annual fee charged to each member pays his salary.