May 10, 2007

California egg production falls to 50-year lows

California's egg production has fallen to its lowest level in 50 years as urban sprawl increasingly encroaches on farm space and consumers demand higher welfare standards.

The state, once the top egg producer in the US, failed to reach the 5 billion egg mark in 2006 for the first time since 1959.

The number of chickens in the state, at 20 million currently, is only half of what it was in the 1970s.

Egg revenues also dropped 37 percent from 2004 to 2005, the lowest value since 1962, according to the Department of Food and Agriculture.

On top of energy costs, rising animal welfare are adding to already-high costs

The rise of organic farms and calls for higher welfare standards from major corporate clients such as Burger King are forcing lower production and discouraging smaller farms.

Increasingly, egg production could only be concentrated into a few big companies, analysts said.