Nevada Suspends Cage-Free Egg Law Amid Soaring Prices

Nevada Suspends Cage-Free Egg Law Amid Soaring Prices \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Nevada has temporarily suspended its cage-free egg law in an effort to lower rising egg prices, which have nearly reached $5 per dozen nationwide due to the ongoing bird flu outbreak. However, experts doubt the move will significantly impact prices, as supply remains tight and major corporations continue demanding cage-free eggs. Other states with similar laws, including California, Michigan, and Colorado, are resisting calls to reverse their mandates, citing long-term industry investments and voter-backed policies.

Nevada’s Cage-Free Egg Law Suspension: Quick Looks

• Nevada Suspends Cage-Free Rule: The state aims to ease high egg prices caused by bird flu-related shortages.
• Egg Prices Hit Record Highs: The national average cost of a dozen eggs approached $5, with some regions seeing prices over $12 per dozen.
• Supply Chain Struggles: The bird flu outbreak has led to the culling of nearly 159 million birds, tightening egg supplies.
• Cage-Free Investment Complicates Reversal: Farmers have spent billions transitioning to cage-free and cannot easily return to older practices.
• Big Buyers Still Demand Cage-Free Eggs: Companies like McDonald’s and Sodexo remain committed to purchasing cage-free eggs, ensuring continued demand.
• Other States Hold Firm: California, Massachusetts, Washington, Oregon, Colorado, and Michigan are not considering similar suspensions.
• Long-Term Outlook: Experts warn that suspending laws may only slightly ease prices in Nevada, while tight supplies keep prices high nationwide.

Deep Look

Nevada is temporarily rolling back its cage-free egg law in a controversial move to combat skyrocketing egg prices, but experts and industry leaders warn that the change may not significantly lower costs for consumers.

The decision comes as bird flu continues to ravage the poultry industry, leading to the culling of millions of egg-laying hens and exacerbating egg shortages nationwide. While some Nevada officials argue that the change will increase egg availability, others question whether it will meaningfully impact costs, as major food corporations remain committed to sourcing only cage-free eggs.

Nevada’s Move: A Temporary Relief or a Symbolic Gesture?

When Nevada first enacted its cage-free law in 2021, the average price of a dozen eggs was well under $2. Fast forward four years, and egg prices have more than doubled, averaging $4.95 per dozen due to supply disruptions from avian flu.

To ease consumer burden, Nevada Governor Joe Lombardo signed a 120-day suspension of the law, hoping to allow more egg suppliers into the state and increase competition.

“One of the things that was not foreseen at that time was this major animal disease outbreak,” said Democratic Assemblymember Howard Watts III, who originally supported the law but acknowledged the impact of avian flu on supply chains.

Despite Nevada’s move, experts remain skeptical about its effectiveness. Jada Thompson, an agricultural economist at the University of Arkansas, noted that the tight egg supply nationwide means that even if Nevada gains access to more eggs, prices may not fall significantly.

“Opening up Nevada to all kinds of eggs could ease prices slightly,” Thompson said. “But with overall supply still tight, it might drive prices up elsewhere.”

Bird Flu’s Impact on the Egg Market

The root of the egg price crisis lies in the ongoing highly pathogenic avian influenza (HPAI) outbreak, which has forced the slaughter of nearly 159 million birds since 2022.

Whenever bird flu is detected on a farm, all infected birds must be euthanized to prevent further spread. This process wipes out entire flocks, delaying egg production for months as farms must be sanitized and repopulated.

For instance:

• 47 million birds have been slaughtered since December 2023 alone.
• More than 3 million of them were from five cage-free farms in California.

This means that even as Nevada temporarily allows caged eggs, the total supply remains constrained—and the timeline for egg farmers to recover is long and unpredictable.

Cage-Free Laws and Long-Term Industry Changes

Another challenge with reversing cage-free laws is that the industry has already adapted to them.

• When Nevada, California, and several other states enacted cage-free laws, egg producers invested billions to convert their barns, transitioning to more humane conditions.
• As a result, the number of cage-free hens grew from just 38 million in 2017 to over 121 million today.
• Despite this growth, demand still outpaces supply, with experts estimating that 226 million cage-free hens are needed to meet current market demands.

Even if other states repealed their laws, farmers cannot simply revert to caged egg production without major additional investments.

Additionally, major corporations like McDonald’s, Panera, Sodexo, and Aramark have made long-term commitments to buying only cage-free eggs, ensuring continued demand and high prices.

“Even if all the cage-free laws went away, corporate buyers would still require them, keeping demand strong,” said industry analysts.

Other States Resist Changes Despite High Prices

Despite Nevada’s attempt to ease restrictions, other states with similar laws—California, Massachusetts, Washington, Oregon, Colorado, and Michigan—are not following suit.

• California’s law came from a 2018 voter-approved measure, meaning any changes would require another vote.
• Michigan’s House Agriculture Committee Chairman, Jerry Neyer, dismissed the idea that cage-free laws are the primary driver of high prices, stating:“Most farms have already adapted. Dropping the law wouldn’t significantly cut costs.”
• Colorado lawmakers recently rejected a bill to repeal its cage-free requirements, which took effect in January 2024.

The refusal to roll back laws suggests that many lawmakers and industry leaders believe the current egg shortages stem from bird flu, rather than regulations.

Can Nevada’s Move Actually Lower Egg Prices?

While Nevada hopes its suspension will provide some relief, the reality is more complex:

✅ Potential Benefits:

• Could increase access to caged eggs in Nevada.
• May slightly reduce prices in the short term.

❌ Challenges & Limitations:

• Overall supply remains low due to avian flu outbreaks.
• Farmers cannot quickly revert to older caged systems.
• Big corporate buyers still require cage-free eggs, keeping demand high.
• If other states don’t follow Nevada, the national price impact will be minimal.

Even Nevada officials admit that it will take at least a month before any impact is felt in grocery stores.

Meanwhile, some Californians are paying over $12 per dozen, and in New York, retailers are selling eggs in packs of three to accommodate struggling consumers.

“The egg shortage people are seeing is due to large flocks being euthanized,” said small farm owner Jonathan Kuester, explaining that the bird flu—not regulations—is the main issue.

Final Thoughts: A Temporary Fix or a Meaningless Move?

Nevada’s 120-day suspension of its cage-free law is a bold experiment in easing egg prices, but whether it truly helps consumers remains uncertain.

With bird flu still spreading, major companies demanding cage-free eggs, and most states refusing to repeal their laws, Nevada’s efforts may not make a significant impact on the national egg market.

For now, shoppers across the country will continue to feel the pinch, and only time will tell if Nevada’s gamble pays off.

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