bake - February 2015 - 28

A law banning
"battery cages"
went into effect
in the European
Union in 2012,
significantly
disrupting the
egg industry in
member countries
for a period.
The new animal welfare law in California could lead to

production," according to the Egg Industry Center

pricing increases for shell eggs this year. Preliminary

(EIC) at Iowa State University. The study estimated

estimates principally from academic institutions

the additional cost at 15 percent. Producers have

forecast shell egg prices initially may rise 10 percent

two options: build additional hen houses to maintain

to 40 percent and maybe more because of the law.

similar ﬂock sizes or downsize ﬂock sizes and modify

While the greatest impact is expected in California,

existing facilities.

the entire nation may see higher prices as producers
who ship eggs to California must comply with the law.

Ironically, the restrictions on out-of-state producers

A number of producers already have made changes

were enacted in 2010 when it was realized the new

in crate sizes, both in California and in other states.

law put California egg producers (a subset of the
general population) at a distinct disadvantage to

Retail bakery owners like Rick Boone say that the

producers in other states. That's important because

impact of higher prices for eggs would not be

California is an "egg deﬁcit" state, importing from

dramatic. He explains that eggs contribute anywhere

other states more than 50 percent of the estimated

from 1 cent to 5 cents to total food costs in a retail

10 billion shell eggs consumed annually. California is

bakery product, depending on the item. "Very few

the nation's ﬁfth largest egg producer but the nation's

products have lots of eggs in them," he says. "If we

largest egg consumer and the world's ninth largest

did see a 40 percent increase in egg prices, we'd just

market. According to the EIC, between July 1, 2012,

adjust our retail price accordingly."

and June 30, 2013, Iowa shipped more than 1.3 billion
eggs, or 9 percent of its production, to California, and

While some animal rights groups maintained the

accounted for 30 percent of California's egg imports.

California law meant "cage free" egg production,
the state interpreted the law to require production

The EIC estimated the changes would increase the

facilities provide at least 116 square inches per hen.

cost of a dozen eggs 26.55 cents, based on a ﬁve-

That's 73 percent larger than the industry norm of 67

year average price of $1.77 per dozen. Whether the

square inches in what are known as "battery cages"

California law ultimately will stand the interstate

that allow minimal movement. A law banning "battery

commerce test and how it will affect supply, demand

cages" went into effect in the European Union in 2012,

and prices remains to be seen. Egg producers in

signiﬁcantly disrupting the egg industry in member

other states, and the broader agricultural industry,

countries for a period.

have expressed great concern that if the California
law stands, the barn door is open for more restric-

"While there are various ways to achieve these

tions on other products in the industry that may

requirements, all of them lead to a higher cost of

increase food prices.

28 < FEB 2015 | bakemag.com
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bake - February 2015

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