Eggs to get pricier in California

CHICAGO — Eggs are about to get more expensive as California moves to make sure hen houses are roomy enough to allow the birds to lie down, stand up, extend their wings and move around.

Farmers nationwide who want to continue selling to the most populous U.S. state are moving to comply with a new law, taking effect next month, that requires the larger cages. They must either build more hen houses or house fewer birds in the ones they have, raising their costs.

Wholesale egg prices already average a record $2.27 a dozen nationally, up 34 percent from a year earlier. With the new law, the price Californians pay may jump as much as 20 percent for shell eggs in three to six months, according to Dermot Hayes, an agribusiness professor at Iowa State University in Ames. The rest of the country will probably follow suit, he said.

“You’re going to see some really large spikes in the price of eggs in January,” said Scott Ramsdell, who owns Dakota Layers in Flandreau, S.D.

California imports more than 30 percent of its eggs from other states. In practical terms, the law mandates that each bird that produces eggs sold in the state needs 116 square inches of floor space, a 73 percent boost over the current standard.

The law, known as Proposition 2, applies only to eggs sold in the shell, not liquid eggs, and doesn’t cover chickens sold for meat.

To comply with the California rules, some farmers are choosing to make their flocks smaller rather than invest in larger cages, according to Ramsdell. He estimates that at least 10 million hens could be culled by the end of the year.

“I think we’re going to have a shortage starting Jan. 1, and it’s going to get worse until production meets the needs of demand,” he said.

Ramsdell estimates the expense of meeting California’s standard will boost the industry’s production costs by about 25 cents a dozen.