A CoBank economist, Trevor Amen, says demand for eggs produced by cage-free hens will remain depressed for several months because a flood of conventionally produced eggs is available, reports Feedstuffs. Cage-free eggs usually sell at a 20 percent premium to conventional eggs, but the price difference has narrowed this year.
This year’s glut of conventional eggs is a result of the bird flu epidemic two years ago, which killed 10 percent of the hens that lay eggs for table consumption and raised prices for eggs in general. Egg farmers expanded their flocks because of the high prices. The CoBank economist says the industry is returning to normal production levels, which means cage-free eggs will regain their premium.
In the longer run, Amen says, nearly three-fourths of the U.S. laying flock will be on cage-free farms in order to meet the commitments of food companies. “Currently, only 16 percent of the layer flock is estimated to be classified as cage-free, which is still up from 4 percent in 2010,” says Feedstuffs. “It will cost the industry about $10 billion to fully make the transition to meet the cage-free pledges, with most of that expense coming in the form of remodeling existing layer houses or constructing new facilities.”