This update of U.S cage-free production is sponsored by Big Dutchman USA for the benefit of producers in North America.

The USDA Cage-Free Report covering December 2024, released on January 2^nd 2025, documented the complement of hens producing under the Certified Organic Program to be 20.3 million (rounded to 0.1 million), down fractionally from November 2024. Depopulation was carried out through the fourth quarter 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 decreased by 5.6 million hens or 5.3 percent from November 2024 to 100.0 million, with extensive flock depopulation during the month.

Average weekly production for Certified Organic eggs in December 2024 was down 0.6 percent compared to November 2024 with a questionably high average weekly production of 83.8 percent. Average weekly flock production for cage-free flocks other than Certified Organic was down 4.8 percent in December 2024, but with a high average hen-month production of 82.6 percent, up from 82.2 percent. Seasonally, younger flocks increase the availability of cage-free and organic eggs in response to pullet chick placements 20 weeks previously especially in anticipation of periods of peak seasonal 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 validate 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 reported number of hens is lower than actual, and in view of a possible undercount following HPAI flock depopulation.

Negotiated nest-run grade-ready cage-free price for December 2024 averaged $5.91 per dozen, up 98.3 percent from $2.98 per dozen in November 2024, reflecting higher demand relative to supply. The December 2024 advertised U.S. featured retail price for cage-free eggs over five regions (excluding SW, AK. and HI.) was $2.90 per dozen, apparently unchanged from November 2024 based on 1,027 stores. This compares with 652 stores in November and reflects pre-Christmas loss-leaders although there were fewer promotions as the year progressed due to seasonal emergence of HPAI.

The recorded average wholesale price of $5.91 per dozen plus a provision of 60 cents per dozen for packaging, packing and transport, results in a price of $6.51 per dozen delivered to CDs. The average five-region advertised retail price of $2.90 per dozen corresponds to a theoretical average retail negative margin of 124.5 percent (-48.7 percent last month unless prices were raised) over the average wholesale delivered price denoting “loss leaders” among stores featuring cage free eggs. Margins are presumed higher for non-featured eggs including pastured and other specialty eggs at shelf prices reaching $9.00 per dozen in high-end supermarket chains. Retailers maximizing margins especially on Certified Organic, free-range and pastured categories restrict the volume of sales, ultimately disadvantageous to producers.

Additional details on production volumes and pricing are included in the review of USDA statistics accompanying this update.