Wednesday, January 7, 2015

Egg Prices Rising in 2015 - Not Related To The Cost Of Fuel

During the past two years, until just recently, gasoline prices rose dramatically, with the ripple effect causing major increases in everything from food to airplane tickets.  One could not go to a clothing store or a theater without paying higher prices.  No matter high prices rose, the increase could always be lamed on fuel prices.  Not so in 2015.

As the holiday season closed with the ringing in of the new year, something strange began happening with oil prices, more specifically, with gasoline prices.  The price of gas dropped!  Barrel prices fell first, followed by sweeping decreases in price at the pump.  Drivers were very happy, and got even happier during the first week of 2015.  Some people even found prices at the pumps below the $2 mark.  There are many reasons that fuel prices are low now, and it should follow that all the things that cost more a few months ago should decrease in relative proportion to the decrease in fuel costs.  Eggs, however, are not following suite.

It turns out that the price of eggs will likely rise soon, and it has nothing to do with oil prices.  Instead, the prices you and I may pay for eggs in the near future could be dictated by farmers (I should say HUGE farming conglomerates - the family farmer has nothing to do with this issue) and the amount of money these egg producers have to pay in order to comply with California state law regarding cruelty to hens.  How can the State of California force out-of-state producers to spend money on improvements to their hen raising operations?  Simple...that state will not allow eggs to be sold in California unless the egg producers meet the requirements of the new California chicken space rules.  Apparently many producers sell a large enough percentage of their eggs in California that they cannot afford to lose the business from this state.

I do not often agree with California laws and rules about anything, but I feel this new law does have some merit.  Various parties came together in California seeking to make conditions somewhat less cruel for the hens that produce our eggs.  In the large egg production establishments, chickens are placed in cages (you or I would recognize them as crates) and never come out again.  These chickens grow from immature chickens to mature egg-laying hens without ever leaving their cages.  But, to make things worse, there are usually six to eight hens in each cage.  These birds are packed so close together that they can hardly move.  They literally cannot turn around in these cages.  I have to admit that I put this reality out of my mind some time ago, years ago, and just ate eggs without really giving any thought to the welfare of the hens.  And really, are there not so many more important things to worry about in life beside the number of hens in a cage? 

Actually, I believe that the California requirements for somewhat better conditions for hens is long overdue.  In fact, I will not mind forking over a few extra cents per dozen if it means that egg-laying hens will be in cages in which they can actually move, walk around, and get away from the other hens if they want.  Oh, but egg producers are screaming bloody murder.  The California law does not "force" out-of-state producers to conform to California policy, but only states that these companies cannot sell eggs in California IF they do not meet the standards of the new law concerning chicken cage "roominess."  Of course egg producers in California MUST meet these requirements, and they are mad as mad, well, as an angry hen about it!  Profits will fall in the first year, no doubt, but I am sure these companies will recoup their new expenditures fairly rapidly.  By the way, the egg producers are not cooperating without a fight.

The California egg production industry is already busy mounting a publicity campaign explaining to everyone that, first, the new laws will not protect chickens.  We are told (this is the TRUTH!) that placing chickens in pens or cages which are large enough to allow the chickens to walk around are actually MORE dangerous for the hens because they may run or flap their wings, thus "placing the hens at greater risk" than if they were in the conventional crowded crate cages.  Next they tell us that the new laws will hurt "the poor" because the egg producers will have to pass on the cost of complying with the new law to consumers, including those on welfare or on fixed incomes. 

Out-of-state egg producers filed lawsuits against the State of California claiming that the new laws to protect hens were in effect unconstitutional because they amounted to California controlling the commerce of other states.  These companies have so far not prevailed because they are free to ignore the California law and sell their eggs in the other states, as well as to Canada and Great Britain, two large importers of US eggs.  The laws only state that California will not allow the sale of these eggs within the state. The bottom line for both California egg producers and out-of-state companies is that they will both spend into the millions of dollars to comply with the new law.  And they will pass these costs to the consumer.
 
I, for one, am willing to pay the few extra cents per dozen eggs that these new laws will entail, if they effect me at all.  The conditions in which these chickens have been raised is appalling, and I am glad changes are coming.  It is quite possible that other states will follow suite and require egg producers to raise their chickens in humane conditions.  Perhaps such changes will eventually spread to another disgusting industry, that is the huge "dairy farms" that are now the norm in milk-producing areas.  Many of these farms, which are mostly owned by huge food conglomerates, confine their cattle to relatively small, grassless, muddy lots.  In any case, I hope to see this somewhat more humane treatment of egg-laying hens spread.  With gas prices going down, most people will have a buffer in their income that will more than make up for the increased price of eggs.

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