US faces egg market caging dilemma

Various egg farmers all over the US are torn between continuing with the cage system or converting to cage-free housing.

Either way, the egg industry will face steep transition costs, and some may even choose to exit the business.

Egg producers in the US carefully follow developments in animal welfare discussions both inside and outside the country. It is questioned if more states will follow California in banning cages. Some farmers have made the decision to change their production method to non-cage facilities. Demand for these cage-free eggs is also growing worldwide.

By following the domestic demand for table and processed eggs, the US egg industry is witnessing growth each day of almost 0.1%.

The majority of all layers are kept in cages, primarily making use of in-line poultry houses. Alternative systems of egg production continue to develop. Today it is estimated that about 5% of all eggs come from cage-free systems, including hens kept in barn and free-range housing. At present, cage-free eggs are seen to be niche products providing consumers with an alternative.

Modern egg farms operate in a completely free market system with no government assistance programmes or quotas. While these farms have grown to meet market demand, they are still classified as ''Family Farms'' with the owner still present on the farm making day-to-day decisions. Only two egg production companies in the US share ownership with publicly traded stocks.

UEP gives full support to animal welfare guidelines that are produced scientifically, said Gregory, pointing at the organisation's own guidelines. These guidelines suggest a minimum floor space of 67 and 76 sq inch (432 and 490 sq cm) for white and brown layers, respectively. There are minimum requirements for feeding and watering space per bird as well as ammonia and dust reduction.

These guidelines are to be followed voluntarily, and most egg producers in the US try to commit. The Pennsylvania-based Hillandale Farms is one of them. Keeping 1.3 million layers, they are in the process of replacing all old cages by modern multi-tier cages with manure belts made by Tecno Poultry Equipment from Italy. This major project includes the removal of the deep litter pits, so extra space is available for the birds. Each house will now provide space for 186,000 white layers from which eggs are in-line collected and packed. The company is aware of the needs of bird welfare and runs a trial with non-cage layers.