As food retailers and restaurants announce to the public that they plan to switch to all cage-free eggs on their shelves and in their products, here’s something to keep in mind: the retailers, at least, are going to make more money after the change is fully phased in. That’s because cage-free eggs only cost only fifteen cents per dozen more to produce, but retailers can charge double for them.
That’s according to analysis from Bloomberg, which looked at the rush in recent months for retailers to join the cage-free egg party. At retail, people will pay $3.42 on average for a dozen cage-free eggs, and $1.45 per dozen at most for conventional eggs. Even if that includes other egg types like pastured or free-range, it’s a significant difference that can make the egg business more profitable…once farmers have invested in the new setups for their hens.
Most companies, especially the biggest ones with the most complex supply chains, plan to hit 100% cage-free as far as 10 years out. That’s because they must wait for existing supply contracts to run out, and for the farmers in their supply chain to change over to cage-free setups for their hens.
Cage-Free Eggs May Be Golden Goose for Retail Profits [Bloomberg]
by Laura Northrup via Consumerist
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