EGG-NEWS summarizes and comments on data and trends in the monthly USDA Cage-Free Report. This data is correlated and interpreted in the WeeklyEggPrice and Inventory Report posted on EGG-NEWS mailed on Fridays each week.

The USDA Cage-Free Report covering April 2024, released on May 1^st 2024, documented the complement of hens producing under the Certified Organic Program to be 16.7 million (rounded to 0.1 million), down 8.2 percent from March 2024. This is due to depopulations carried out as a result of HPAI. The number of hens classified as cage-free (but excluding Certified Organic) and comprising aviary, barn and other systems of housing apparently declined by 6.8 percent from March 2024 to 99.2 million, also due to flock depopulation. Hen numbers posted by the USDA for April are considered accurate in relation to known depopulation figures released by APHIS.

The number of eggs collected is accepted as accurate but since the values for average weekly production are unacceptably high suggesting that the denominator reflecting the number of hens is probably incorrect. Alternatively if conventional eggs from cages are deceptively marketed as cage-free, or if cage free eggs are packed as certified Organic, assuming an accurate number of hens over a given month, the apparent hen-week value would be incorrectly high. The respective numbers of hens claimed for organic and cage-free flocks should reflect chick placements, HPAI depopulation and age-related depletion and should correspond to monthly supply data and inventory extending over successive quarters. Unlike conventional cage production cage-free hens are not generally molted reducing this possible reason for error in calculating rates of production.

Average weekly production for Certified Organic eggs in April 2024 was down 7.5 percent compared to March 2024 with a questionably high average weekly production of 84.4 percent, down from 83.8 percent in March. Average weekly flock production for cage-free flocks other than Certified Organic was down 6.2 percent in April 2024, also with a questionably high average hen month production of 83.4 percent, up from 83.8 percent. Seasonally, younger flocks increase the availability of cage-free and organic eggs in response to pullet chick placements 22 weeks previously in anticipation of peak seasonal demand periods. April 2024 data may have reflected a presumed higher proportion of younger flocks derived from pullet chicks placed during late December 2023 and early January 2024 in anticipation of Easter 2024 demand. Since the proportion of pullets according to housing type is not indicated in the monthly USDA Chickens and Eggs report, it is not possible to assess the relative sizes of flocks producing under the certified organic label or other categories. There is no adequate explanation for the high production rate especially if the stated number of hens is lower than actual, especially with undercounted HPAI flock depopulation. This raises the question of possible illegal diversion of caged eggs into the cage-free or cage-free eggs into the organic supply.

Negotiated nest-run grade-ready cage-free price for April 2024 averaged $1.93 per dozen, down by 22.8 percent from $2.50 per dozen in March 2024, reflecting lower demand relative to supply. The April 2024 advertised U.S. retail price for cage-free eggs over six regions (excluding AK. and HI.) was $3.47 per dozen up 19 cents per dozen (5.8 percent) from March 2024 over 4,473 stores.

The apparent difference between a recorded average wholesale price of $1.93 per dozen plus a provision of 60 cents per dozen for packaging, packing and transport results in a price delivered to CDs of $2.53 per dozen. The average six-region advertised retail price of $3.47 corresponds to an average retail margin of 37.2 percent (5.5 percent last month) over the average wholesale delivered price. Margins are presumed higher for pastured and other specialty eggs at shelf prices reaching $9.00 per dozen. Chains that are maximizing margins especially on Certified Organic, free-range and pastured categories restrict the volume of sales, ultimately disadvantageous to producers.

Based on the importance of cage-free production, the USDA-AMS issue the Cage-Free report on volumes and prices at monthly intervals for the information of Industry stakeholders. There is obvious doubt as to the accuracy of individual monthly flock numbers especially when reports show a marked change at the end of a quarter or from the previous month without obvious cause, or alternatively when there is no change in the cage-free flock for sequential months.

The May 1^st report has accounted for flock depopulations as a result of HPAI in April

It is suggested that USDA should consider a quarterly report with more accurate hen data. This would be more useful to the industry for planning and marketing decisions. Price data is available each week from other USDA reports.

Subscribers are referred to weekly USDA wholesale and retail prices posted in the Egg Price and Inventory Report in EGG-NEWS E-mailed each Friday. The previous Monthly Cage-Free Report is available under the STATISTICS Tab.