Australians love eggs, consuming around 263 per person every year compared to the global average of 161. With such demand and recent industry changes and challenges, Kinross Farms has chosen innovation over hesitation in its operations. Peter Bedwell writes.
Australia’s poultry sector has undergone many changes and weathered its share of challenges. What started with the deregulation process from 1983 through to the 1990s was met with the move away from caged hen production to cage free systems; either free range or barn laid.
Today, around 65 per cent of hens are housed in free range systems with state and federal governments largely in agreement to phase out cage production altogether by 2036.
Consumer and retailer pressure preceded government intervention and both Coles and Woolworths have declared their intention to remove cage eggs from shelves by 2025.
Supply and demand are constant concerns for layer farmers, from changing consumer attitudes and expectations to seasonal fluctuations and unexpected events like Covid.
Source: Kinross Farms
One current factor is immigration. Australia is experiencing one of the biggest immigration intakes in its history that is driving demand from different cultural groups.
It has required a more entrepreneurial approach from growers to make significant investments in supplying egg products to meet consumer demands.
Family farm
Family-owned Kinross Farms has multiple sites in Victoria, predominantly in Kinglake, Euroa and Carisbrook.
Owned by Philip and Jane Szepe, it was Philip’s parents and family members that established the farm with 2000 hens in the mid-60s after migrating from Hungary.
Today, Kinross is a significant supplier of free-range eggs in Victoria and most states. It has three key products – table eggs, eggs for vaccine production, and liquid egg products (LEP), a critical binding agent for Australian food manufacturers and the food service sector – that provide three income streams. This enables the company to better manage and counter fluctuations in particular markets.
A significant investment in a triple tube pasteurising and homogenising technique means Kinross has developed a range of convenient and specialised LEPS in chilled or frozen formats and at scale, from 10-kilogram boxed bags to pallets.
The range includes whole eggs, egg whites, egg yolks, and salted or sugared yolks that are SQF, Kosher, and Halal certified.
In 2004, global biotech company, CSL, invested $150 million in its Parkville facility, which was the catalyst for Kinross to produce high standard eggs for vaccine production to support human and animal health domestically and overseas.
Free ranging
Also in 2004, the company made its first move into free range and cage free production at its Euroa, Carisbrook and Wimmera farming operations. Twenty years later, Kinross’ entire table egg operation is free range and cage free.
The company adopted the European style of free-range production, using the German made Big Dutchman Natura Nova Aviary system in the barns housing laying hens. The method also includes rearing young hens.
Through industry-leading bird management practices, advanced nutrition, and a commitment to high welfare standards, Kinross has established itself as a pioneer in ethical and sustainable production. This high standard of care has led to an impressive increase of 16 eggs per bird in 2023, further enhancing the sustainability of its operations.
The sheds feature a low energy use ventilation system incorporated into the roof design and up to 28 per cent of its energy needs come from solar. Waste from the sheds is composted and used as fertiliser in local crop production.
Managing director, Philip Szepe, says the large purpose-designed barns allow the birds to perch, move about, dust bathe, scratch, and nest.
“Using the innovative Big Dutchman aviary system, our design mimics a forest environment and allows our hens to move freely between levels.
“Feed and water are available throughout the barn, and eggs are laid in centrally located nest boxes, from where the eggs are conveyed to a packing station,” Szepe says.
The current cage free (barn laid) hen population is 300,000 which produces around 1.6 million eggs per week, with Kinross having Egg Standards Australia (ESA) to Level 3.
Its free-range hen population is 950,000, producing more than five million eggs a week. Stocking density is 1500/ Ha-ESA accreditation to Level 4.
Kinross’ quality standards meet those of the major retailers including increasingly specific and measurable levels for environmental performance and animal welfare.
Further free-range housing is under construction at its Euroa farm using the latest version of the aviary system.
Biosecurity measures
The recent Avian Influenza outbreaks on poultry farms was a reminder about the importance of stringent biosecurity standards.
Kinross Farms Veterinarian and Mill Operations manager, Dr Heather McKimm, designed the company’s standards to minimise disease ever reaching the farm. For example, all employees who have been exposed to the hens must ‘shower in, shower off’.
Automation has played a major role in reducing risk. The grading and packing floors are automated with MAXAGV FX10 AGVs, and all handling processes are robotic. The investment to achieve this high standard of risk-free automated handling is staggering.
The advanced robotised production process replaces what was once a labour intensive and repetitive process, prone to failure through simple operator fatigue.
Now a sophisticated automated inspection process guards against cracked or otherwise imperfect eggs reaching the consumer.
A good diet is vital for hen welfare and productivity. Kinross Farms has access to top quality Australian grown grains and advanced feed formulations with natural additives that improve the gut health and immunity of their hens. All feed is produced at the company’s feed mill.
From 2000 hens in the 1960s to more than 1.4 million birds today, Kinross Farms has embraced innovation, investment, and growth. With the popularity of eggs showing no slowing, it has positioned itself well to meet consumer and industry demand.
This article first appeared in the October/November edition of Food & Drink Business magazine.
