California has issued new regulations to their farming industry that will affect several states and the national cost of eggs. The regulation, cheered on by animal rights advocates, require farmers to provide bigger cages, coops and hen houses to permit more room for their livestock to freely stretch their wings. Ire from farmers have been swift, since the standard will not only have to be followed by Californian farmers, but any farmer who sells eggs in the state. This will encompass several states and many companies, like Centrum Valley Farms, who operates in Iowa and Ohio, but sells in California.
An agricultural economist said due to the new standards being implemented, the price of eggs can go up pretty dramatically. He estimates the initial increase will be 10-40 percent before it settles over time.
The cage law went into affect on New Year’s Day, and where most farmers were giving their hens 69 square inches of space, it will increase to a minimum 116 square inches, possibly requiring brand new infrastructure to be developed, creating a costly headache for farmers who already struggle under current regulations and competition. When it comes to raising the egg prices, the domino effect may be noted at local grocery stores to handle the increase.
In California, where warm weather dominates, the cost of heating may not be the biggest financial issue unlike farmers who are stationed in the Midwest and northeastern states.
The cost of revamping infrastructure for additional heating, space and cages can cost large farming companies millions of dollars. The law originally passed in 2008 with an expected enforcement day in 2015. Two years after the law passed, state lawmakers added an affidavit encompassing out of state farmers who sell in the state, to comply.
The colder than normal weather in the west and holiday season already increased the cost minimally, and that is only expected to continue to increase to offset the costs of the new law implemented.
The Humane Society of the United States applauded the bill and said chickens suffered being stuffed in a small cage with up to several others to meet demand. But, the National Association of Egg Farmers scoffed at the notion of the law helping consumers or chickens, advising the law merely adds more stress to farmers, and the increases the chances of chickens breaking a leg or wing, as they are more likely to run around in bigger pens.
What are your thoughts on the law?