Four years ago, California voters stipulated than any eggs produced in CA needed to be from hens with more living space. Implications of that law were widely misunderstood. The issue is that national and global and regulations have been spreading Farm Bill provisions on hen housing, and government-set regulations are different from consumer-demand driven market specifications.
Unless there are import barriers, cost-increasing animal care restrictions affect where products are produced, not how and benefit imports over local producers that meet local rules.
View the full PDF presentation here: Local and national government-set rules for production of agricultural products