UK: New insurance policy for salmonella
A new insurance service has been launched by UK farmer co-op Eggsell. This policy allows egg producers protection from AI and Salmonella being detected in their flocks.
Salmonella rules in the UK change in January 2009, which could have financial consequences for egg producers.
If Salmonella enteritidis or Salmonella typhimurium is detected in flocks, eggs may not go for human consumption unless they have been heat-treated to guarantee the elimination of the strains of salmonella.
The financial impact of this restriction of the sale of fresh shell eggs from infected flocks is a cause for concern to the co-op, particularly for new producers. It is reported that this prompted the co-op to launch what it believes to be the first industry-wide policy against loss of income from salmonella and avian influenza.
Pricing and policy
For salmonella, policies are priced from 5.5p/bird, and for avian flu at 4.5p/bird. These are underwritten within the Lloyds insurance market and covers loss of income for up to 52 weeks coupled with a percentage of DEFRA testing costs up to an aggregate limit per farm.
EggSell founder Stewart Elliott: “We’ve invested a lot of time researching the market and trying to find a policy that benefits the egg industry as a whole and we’re extremely pleased that leading farm insurance brokers Thompson and Richardson shared our vision and helped us to realise our goal of delivering a comprehensive policy for less than the cost of an egg per bird.”
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