Commodities & markets, Policy

Pending regulations on hen-housing to affect California producers and California consumers

The Treatment of Farm Animals Statute passed by California voters as Proposition 2 in 2008, takes effect on January 1, 2015. It specified the minimum space for egg-laying hens (and selected other animals).

A year after the Treatment of Farm Animals Statute, assembly bill 1437 (AB 1437) which was introduced in July 2010, prohibits the selling of shelled eggs for human consumption in California produced by egg-laying hens on farms not in compliance with California’s Treatment of Farm Animals Statute. It passed in the California assembly in May 2009 and the Senate in June of 2010.

Detailed economic analysis of Proposition 2 showed that the impact was to shift most egg production out of California, but otherwise have little impact on the price of eggs or cost to consumers. The passage of AB 1437 changes the competitive situation for California producers. One way to meet the new California standard is to produce eggs using a non-cage or barn system. The cost analysis here is based on that alternative.

View the full poster here: Pending regulations on hen-housing to affect California producers and California consumers. By John Thomas Rosen-Molina, Daniel A. Sumner and William A. Matthews

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