U.S. Consumer Egg Prices Could Rise by 25 Percent if Animal Rights Activists Get Their Way

U.S. Consumer Egg Prices Could Rise by 25 Percent if Animal Rights Activists
Get Their Way
Gov't Spending on Food Assistance for the Needy Would Increase by $169 million

WASHINGTON, Oct. 6 /PRNewswire/ -- Consumers would be forced to pay 25 percent
more for eggs soon if animal rights activists succeed in getting only non-cage
eggs sold in the U.S., according to a new study by a respected economic
consulting group. That increase would cost consumers $2.6 billion more each
year for eggs, a nutritional staple in the American diet. The higher costs
would strain Americans' budgets during a difficult economic climate.

Federal spending on food assistance programs for children and the needy also
would increase by $169 million annually if the government could only purchase
cage-free eggs, according to the study by Promar International, a Washington,
D.C. economic consulting firm. Significant amounts of eggs are purchased for
the school lunch and breakfast program ($47 million annually); Special
Supplemental Nutrition Program for Women, Infants and Children (WIC-$100
million); and the Supplemental Nutrition Assistance Program (SNAP-formerly the
Food Stamp Program).

The study predicts that such a dramatic consumer cost increase could open the
door to a sharp rise in egg imports from other countries that have far lower
food safety and animal welfare standards than the United States. Egg imports
could rise from virtually zero today to 7 billion eggs annually, seriously
straining the ability of the U.S. government's food safety inspection system.

"If we have to start importing eggs into this country we will increase our
food safety risks," said Gene Gregory, president of United Egg Producers, a
national cooperative of U.S. family egg farmers. "I don't think American
consumers really want to play Russian Roulette with every carton of eggs they
buy, which is essentially what would happen if we allow special interest
groups to force a ban on the most modern, sanitary egg housing systems in the
world. Those systems are used to produce 95 percent of the eggs that American
consumers buy every day."

"More imports would also likely increase the carbon footprint of a dozen eggs
since they would be transported over long distances," Gregory added.

Bans on modern cage housing systems already are being implemented in
California over the next 5 years and several other states because of pressure
from animal rights groups.

Similar bans are being implemented in Germany next year and in many European
countries in the next few years, which will not necessarily improve the health
and welfare of chickens and may have negative consequences for the
environment, consumer and government costs, and endangering food safety.

USDA statistics indicate that on average during early September 2009, one
dozen grade A "regular" eggs were advertised at retail for $1.00 per dozen
compared to $1.59 per dozen for cage-free. Cage-free eggs cost more because
they require more land, more labor, more energy and more food per hen, Tom
Earley, the author of the study, explained. Cage-free chickens also tend to
have more diseases which need to be treated with expensive medicines, and they
have higher mortality rates.

American consumers currently have the right to choose (and buy) whatever type
of egg they prefer and can afford: "regular" eggs from modern, sanitary cage
housing systems; cage-free (no access to outdoors); or free range (at least
some access to outdoors). Approximately 95 percent of American consumers
choose "regular" eggs when they make their purchase decisions at the grocery
store and eggs are among the lowest cost sources of high-quality protein,
making them an ideal meal solution for low-income Americans. The need for
food assistance nationwide has increased 30 percent throughout the last year,
according to the website for Feeding America, the nation's leading domestic
hunger relief organization, which says that 35 million people are at risk of
hunger in America.

Eggs are produced commercially in 49 states. Nearly all commercial egg farms
in the U.S. are family-owned farms or farmer co-ops; there is only one
publicly traded company. Approximately 95 percent of egg-laying hens in the
U.S. are housed in modern cage facilities. The cost to farmers of converting
their modern hen houses into cage-free facilities would be $7.5 billion, the
study estimates. The availability of credit and local permits could be a major
obstacle for many farmers.

About United Egg Producers

United Egg Producers (UEP) is the nation's leading farmer cooperative for U.S.
egg farmers, representing 97 percent of U.S. egg farmers, whose members
produce eggs including modern cage production, cage-free, free range, organic
and other specialty eggs. UEP is based in Alpharetta, GA. To learn more about
the egg industry visit www.uepcertified.com.

SOURCE United Egg Producers

Mitch Head, +1-520-398-7379