Regulations to Accommodate Hens to Affect the Egg Market

The egg market is in for a shell-shock next month when legislation from California catches-up to everybody from the producer to the consumer. Voters in the state approved a law which calls for egg-laying hens to have “more space” in their hen houses to ensure the birds are allowed to lay down, stand up, extend their wings, and dance around (I cannot make this up!).

The price of USDA Grade AA Extra Large, and Grade AA Large, eggs may have been .02c slightly lower yesterday in New York’s cash market, but starting next month when the legislation comes into effect we should start seeing prices holding to higher over time. Farmers around the country that sell eggs to the Golden State will either have to comply with larger cages for their birds, or have less birds in existing cages (which implies culling their flock).

With farmers selling eggs to the country’s most populous state, it can only mean higher prices for the consumer,” said Laura Taylor, a senior commodities broker at RJO Futures in Chicago, sharing her fundamental analysis insight regarding the current egg market situation. Taylor added, Who elects California legislators…chickens, or people? Who are California legislators elected to serve…people, or chickens?”

On a national scale, wholesale egg prices average a record $2.77 per dozen which is up 34% from the year before. With this new law coming into effect, a Iowa university professor claims the amount Californians themselves will pay can be as much as 20% within three to six months into next year.

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