New California Cage Requirements Mean Higher Egg Prices

The New Standard Could Cause a Hike in Egg Prices

The new year is expected to bring rising chicken egg prices across the U.S. as California starts requiring farmers to house hens in cages with enough space to move around and stretch their wings. The new standard backed by animal rights advocates has drawn ire nationwide because farmers in Iowa, Ohio and other states who sell eggs in California have to abide by the same requirements. To comply, farmers have to put fewer hens into each cage or invest in revamped hen houses, passing along the expense to consumers shopping at grocery stores. California is reported to be the nation’s largest consumer of eggs and imports about one-third of its supply.

Low-income people who rely on eggs as an economical source of protein may be hurt the worst by California’s cage law, says a report this week by the Egg Industry Center at Iowa State University. Anticipating a 15 percent increase, the cost of a dozen eggs could rise by 27 cents, and a family of four could pay $15.93 more a year, the report says. California has prevailed so far in lawsuits, including six from major egg-producing states that argued the state is dictating market prices in other states in violation of the Commerce Clause of the Constitution. Appeals are pending.

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