Why the new organic egg welfare rule won’t raise prices

A new final rule establishing stricter animal welfare standards for the U.S. Department of Agriculture’s National Organic Program are being delayed until at least November 2017, but Mid-States Specialty Eggs and Eggs “R” Us Inc. argue the final rule – originally published in January 2017 – won’t hamper the organic egg business or send prices skyrocketing as some are predicting. When in effect, the new rules will require all organic-certified animals to be given enough space to lay down, turn around, stand up, fully stretch their limbs without touching other animals or the side of the enclosure, and otherwise express natural behaviors. The regulation will establish new rules for housing, transportation and slaughter of organic poultry, too. Most importantly for egg producers, outside access will be mandatory. Verandas or porches attached to layer houses will no longer be classified as outdoor spaces. Marion Hostetler, an owner of Mid-States and a member of the Organic Egg Farmers of America, said his company is exceeding this new standard and it’s doing it at a cost where it can sell at a price that beats other major producers. Mid-States and Eggs "R" Us were profiled in the July 2017 issue of Egg Industry. He estimated the size of the organic layer flock is about 15 million to 17 million birds. If 7 million of those birds were taken out of organic production due to the rule, as he said the rule could potentially do, then there could certainly be a market disruption. But in the long term, the market will even out. Even if prices spike, he said, it’s not likely organic eggs will enter the $8 per dozen territory. As of May 2017, Mid-States’ organic eggs sell for $3.99 a dozen