California's Cage Free Egg Law Proposition 12 Leaves California Business Lady Fortunes in Shell Shock

The US Commercial Egg Industry suffered huge losses in poultry since January 2022 when a highly pathogenic avian flu cause over 57,000,000 chickens to be destroyed. The resulting shortage of birds resulted in a subsequent shortage of eggs. According to the U.S. Department of Agriculture, the average price of one dozen eggs in January 2022 was $1.93, by December 2022 the cost was recorded at $4.25.

American consumers have faced sticker shock due to this shortage, although in 2023, prices eventually stabilized. However, in California, Proposition 12 has forced egg farmers to go "cage free", therefore making the production costs sky high. Proposition 12 requires that out of state producers only sell cage-free eggs in California. 

Debbie Murdock, who heads the Pacific Egg and Poultry Association, said "..even without avian influenza, the Golden State already doesn’t produce enough eggs to feed its population and relies on out-of-state eggs to fill the gap." [see article here] .

Lady Fortunes® Inc is a California bakery and confectionery located in Los Angeles.
"We have been getting pummelled by increases in egg costs, not to mention the shortages that have delayed production of Purchase Orders for clients like Williams Sonoma, QVC, and others" said Daria Artem, Founder/CEO of the company. With Proposition 12, Artem says that buying eggs has become an ordeal  yet again due to high costs and availability. Lady Fortunes®  Inc buys egg products like pasteurized egg whites in powder form as well as meringue powders from out of state suppliers who she says cannot sell to her products that are not certified as being made with "cage free" eggs. "The costs are insane," she said, citing a difference in cost of at least 20% and often upwards of 50% higher. "Lead times also range wildy because while regular eggs may be available, cage free are still considered a 'special order item', which increases the lead time to weeks if not months. 

At issue is also the fact that Proposition 12 is deceiving- when it comes to "cage free" chickens and eggs, "cage free" actually does not mean what it says. Chickens are not free to roam about a pasture, in fact, most of them do not even see the light of day in windowless stinking buildings and are subjected to cruel conditions just like their "caged" counterparts. Thus, in reality- "cage free" chickens are actually confined to just as much space as conventional chickens in battery cages. 

"I am still in 'shell shock'", says Daria Artem, "While our competitors are paying less for egg products and selling their products in California, my company has to pay a significant amount more for "cage free" eggs that are actually from chickens who are still in confined cages! It's a complete and total hypocrisy". 

With bakeries and confectionery companies who use egg whites in their products- like Macarons and Royal Icing decos, the additional expense and lead time is an added burden with little actual benefit to the animals whose welfare it is meant to improve.  

"Just because you put a nice label on something doesn't mean it is actually there to serve the purpose you think it is intended to serve." ~Daria Artem