June 19, 2023

 

Australian egg prices surge as farmers struggle to meet demand amid phased-out cages

 

Australian consumers have been hit with higher egg prices due to the industry's uncertainty from a pledge by major supermarkets Woolworths and Coles to phase out caged hens by 2025, Nationwide News reported.

 

The price of a box of eggs from caged hens has skyrocketed from around AUD 4 (~US$2.74; AUD 1 = US$0.68) a dozen to AUD 8 ((~US$5.48) or even AUD 9 (~US$6.16) for free-range eggs. With some Coles and Woolworths stores already ceasing to sell caged eggs ahead of the deadline, farmers are facing challenges in converting their businesses, leading to a decline in supply and subsequent price hikes.

 

Kate Daley, chief executive officer of Pure Foods Eggs, said that their company is looking to transition away from caged eggs, possibly as early as next year. She also said that farming colleagues in Western Australia may already be ahead of the curve in eliminating caged eggs from their shelves.

 

The phased-out approach adopted by the major supermarkets is directly contributing to empty shelves. The supply of free-range eggs is lagging because farmers are struggling to meet the demand and convert their operations from caged-egg production to free-range.

 

Supermarkets across the country, including Western Australia, are currently grappling with egg shortages. Ian Wilson, president of the Commercial Egg Producers of WA, said that the scarcity is due to the lack of industry certainty caused by the ongoing review of national standards and guidelines for egg producers, which may eventually eliminate caged egg production entirely by 2036.

 

Transitioning to free range poses significant challenges and costs for the industry, with estimates ranging from AUD 2 million (~US$1.3 million) to AUD 4 million (~US$2.7 million), depending on the scale of the operation. Access to land is a major obstacle in this transition.

 

Pure Foods Eggs, a producer of both free-range and caged eggs, is gradually shifting toward primarily producing free-range eggs. They recently expanded their free-range capacity by 20% and are considering further expansion pending a solid business case.

 

The use of conventional battery cages in egg production, typically measuring around 50 square centimeters, is being phased out over the next 10 to 15 years according to new animal welfare standards released by the Commonwealth Department of Agriculture last year.

 

Woolworths and Coles have already achieved 100% cage-free status for their own branded packaged eggs. Both supermarket chains are making progress toward offering a fully cage-free egg range by 2025, with many stores already exclusively selling free-range or barn-laid eggs.

 

-      Nationwide News