Price of eggs is expected to rise dramatically

SACRAMENTO, Calif. - Sept. 30, 2014 - PRLog -- Three months remain until the deadline for farmers to comply with the mandates put forth in Proposition 2. As a direct result of this law, passed by California voters in 2008, the price of eggs is expected to rise dramatically to about 20 percent per carton, along with a20 percent increase in production and labor costs. Some analysts say the end result could even mean double the price of one carton of eggs, with both retail and wholesale markets affected. The hardest hit consumers are expected to include large families, schools and other consumers who must buy eggs in bulk on a regular basis as a staple of their diet.

Proposition 2 affects all states, not just California. According to The Wall Street Journal, California is the fifth biggest egg production state in the nation, with nearly five billion eggs a year valued at about $300 million, which equals five percent of the country’s egg output. In a simple equation of supply and demand, many are saying that when the egg supply goes down, the egg prices will go up. Fueled by the increase in production and labor costs, the price tags consumers will see at the supermarket will likely be reflective of the effects of Prop 2.

At the heart of the debate are six states that have filed lawsuits against California in the last few months, claiming the state is in violation of the commerce clause of the U.S. Constitution. The so-called “egg law” prohibits the sale of eggs from states that have not complied with the new statutes. This law demands farmers double their cage sizes well over the industry standard. Proponents call into question the humane treatment of chickens at the present time and feel they deserve more than a lifetime of squalid living in cramped quarters with other hens.

Receiving a lot of flack from farmers, they point out that, humane chicken treatment aside, the very existence of the mandate violates the Constitution and will only serve to drive up the cost of eggs. As a result, they say, it will cost them much more to comply with the cage requirements and ship their eggs to California for sale than ever before. However, stuck between a rock and a hard place, the farmers risk losing their contracts with their egg-selling sources in the Golden State if they fail to comply by January 1. Price increases on eggs remain to be seen. While conservative estimates say that egg prices may rise a few cents per dozen, other analysts say the cost could rise as much as 20 percent per carton, or even nearly double the priceof local eggs produced in California. With farmers in some states shelling out more than a $100 million dollars to get in compliance with Prop 2, the cost has to be passed on somewhere. It’s unlikely the lawsuit will be settled within the next three months, with the effects of Prop 2 playing out come January 1 – just three months away.