Michigan's Egg Industry Faces Shift to Cage-Free by 2025, Costs to Increase after New Shift

This law, initially enacted in 2019, is expected to raise costs for consumers. The legislation, while taking effect under Democratic leadership, was championed by Republicans.

Eggs from farms with fewer than 3,000 laying hens are the sole exception to this rule, and it does not extend to liquid or cooked egg products.

A new law holds business owners accountable for ensuring that shell eggs sold comply with state standards. Farms are now required to adhere to the new guidelines established by the Animal Industry Act, which state that “hens must be free to roam unrestricted.”

In recent months, companies such as Kroger and Meijer have displayed alerts informing customers about the upcoming changes.

Eggs and their production play a crucial role in the agricultural economy of the state.

Michigan is the seventh-largest egg producer in the country, generating more than five billion eggs annually. In the state, eight farm owners control fifteen million birds across 17 farms.

A 2024 report from the Michigan Allied Poultry Industries provides this information. The egg production sector adds $655 million to the state’s economy each year, with a total economic impact of $1.4 billion.

Although the recent legislation encouraged stores to adopt the new policy, Meijer had already revealed intentions to transition to exclusively selling cage-free eggs by 2025.

A recent report from researchers at Michigan State, Kansas State, and Purdue universities pointed out the challenges involved in moving to cage-free eggs.

The report highlights increased expenses and labor needs tied to cage-free production, along with worries that the shift may result in fewer farms, as larger producers typically possess superior resources and capital to facilitate the transition.

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Furthermore, it discovered that “producers expect earnings from cage-free systems to exceed those of conventional systems by 8%,” while “expenses are projected to be at least 8-19% greater.”

Recent bird flu outbreaks on some Michigan farms are set to influence the average price of eggs, currently at $4.82. The USDA has reported that two commercial flocks in the state are affected, totaling nearly 200,000 birds.

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