That's the view of the NZ Poultry Association executive director Michael Brooks. It comes in the wake of the announcement by the two major supermarket chains, Countdown and Foodstuffs, that they will only sell free range or barn eggs from 2025 and 2027 respectively.
Over 50% of the eggs produced in NZ are sold in supermarkets and during the summer break there were reports of some supermarkets around the country running out of eggs.
Last year saw the end to the battery farming of hens, but the National Animal Welfare Advisory Committee (NAWAC) approved the use of free range, barn and colony cages. The latter is a large cage, which can hold up to 60 hens and has a special area for them to lay their eggs and an area to allow them to perform natural acts such as scratching and dust bathing.
Poultry farmers had from 2012 until the end of 2022 to transition out of using battery cages and many opted for the colony system - currently about 33% of the national flock is in colony cages.
However, Brooks says the move by the big two supermarket chains has caught poultry farmers off guard and there has been significant exodus of egg producers from the industry. He says the reason is cost, especially for older farmers who see little merit in going into debt to transition into barn or free range systems, which they know little about, just to supply the supermarkets. Many had already spent more than a million dollars transitioning from cage to colony systems.
"What's more, we have seen about 15 free range egg farms close down in the past year and no new ones have applied for membership of our association," he told Rural News. "They have been hit by Covid and rising grain prices and decided it's no longer worth remaining in business."
Brooks says the pathway to setting up a new free range egg farm is fraught with difficulties, not the least of which is the price of land because free range operations need lots of land. He adds that obtaining a consent to establish the farm can be a major problem.
One farmer Brooks knows tried to get a consent, but nearby lifestyle farmers objected and took a case to the Environment Court and in the end the farmer just gave up.
"I know one farmer who spent two-and-a-half-years in the Environment Court trying to get consent," he says.
Who's Driving The Change, And Why?
Michael Brooks levels the blame for the current egg chaos that now exists squarely on the supermarket chains.
He says their decision not to accept eggs produced in the colony system is plainly wrong. Brooks says the colony eggs are cheaper than free range and barn eggs and taking this option away from consumers is unfair on people - especially those in lower socio-economic areas.
He believes by not selling colony produced eggs, which are perfectly legal and safe, is taking away a lawful choice from consumers.
"When this was raised with the supermarkets I asked them what their welfare argument was and they didn't have one," Brooks told Rural News.
"They said their decision was based on consumer demand and I said I must have missed the demonstrations in Otara, Cannons Creek and other towns where people were saying they don't want those cheap colony eggs and instead give us the more expensive free ranges ones. It's just a nonsense argument."
Free range farms are generally very well managed, but there are challenges such as ensuring hens are not continuously allowed to range on one paddock and must be rotated around other pasture to prevent disease. There is also the issue of preventing birds such as sparrows getting into free range sheds and eating food and potentially spreading disease. Then there are predators such as hawks, ferrets and stoats. All this comes at a cost hence the premium on free range.
With a third of the flock in colony cages, people will still be able to buy these eggs from their local poultry far or corner dairy or veggie shop. Some people may choose to buy their own hens and already it is challenging to buy pullets because poultry farmers are holding onto their stock, while other suppliers have simply gone out of business.
Brook says the national poultry flock stands at 3.3 million - the lowest it's been for years. He says to meet domestic egg demand it should be closer to four million.
