Egg farmers prepare for legal action as they wait for clarity around phase-out of caged egg production

Caged egg farmers are preparing for a legal stoush against the Victorian government if their industry is shut down. 

Victoria last year joined other states in committing to the phase-out of caged egg production by 2036, but standards are yet to be created and there is no detail on when a phase-out would begin or what compensation would be paid.

Egg producer Brian Ahmed from Werribee, south-west of Melbourne, said a group of producers was preparing for a class action if the changes meant they could not farm anymore.

“The caged egg farmers have engaged our lawyers and we’re looking at what our rights are and what we can do,” he said. 

“We’ve got family businesses, employ a lot of people, we’ve been doing it for 60 years or more.”

Data from Australian Eggs shows annual egg consumption jumped 19 per cent in the seven years to the 2022–23 financial year, with Australians consuming on average 263 eggs each a year.

Free-range eggs made up 56.5 per cent of retail sales. 

“The market should determine how we produce eggs, not governments. People have the right to choose what they want to buy and eat,” Mr Ahmed said.

Uncertainty could lead to shortages

Mr Ahmed said the group of 15 egg producers ran about 1.5 million layer hens, and their farm infrastructure might be unable to be altered to suit the new proposed poultry standards.

“We’re concerned about the standards and guidelines with the recommendation to phase out cages,” he said.

“We’ve invested millions of dollars in environmental systems and improved welfare, and now there’s discussion about phasing these systems out.

“We’ve got businesses situated in metropolitan areas and we’ve got a growing market for our product.”

The lack of clarity from the Victorian government had halted further investment in the industry, Mr Ahmed said.

“After the federal Agriculture Minister made the decision, I contacted our state representatives and they said no decision has been made,” he said.

Mr Ahmed said farmers were promised further consultation and he was still waiting for that.

“If this continues for a longer period of time, egg supply will get shorter and shorter because we don’t know how to invest our money,” he said.

Phase-out pledge by supermarkets

Major supermarkets Coles, Woolworths and Aldi have pledged to phase out or ban battery cages from their supply chains by 2025.

Mr Ahmed said this was driven by profits, rather than animal welfare or consumer demand.

“If [shoppers] don’t want to buy caged eggs anymore then we will shut down and accept that,” he said.

“The only ones who are driving this are the animal activist groups and the supermarkets — the supermarkets want to sell the free-range eggs because that’s where the higher profit margins are.”

A Coles spokesperson said the phase-out was part of its commitment to animal welfare.

“All Coles own-brand shell eggs sold nationally have been cage-free since 2013. We’re also making progress with our proprietary brands,” the spokesperson said.

Woolworths-branded egg cartons have been cage-free since 2015.

A spokesperson for the retailer said it had brought forward the transition for some stores, and delayed the transition for others to meet egg producers’ needs.

“We understand a change like this takes time, and that’s why we’ve consulted with our suppliers to ensure they have sufficient time to make changes to their production methods.”

Mr Ahmed said the welfare of farmed birds was front of mind for producers.

“We don’t mind tightening up animal welfare laws as long as it’s backed by science and it’s reasonable,” he said.

“We don’t want people setting standards that are ideological.

“Doesn’t matter if it’s caged, barns or free-range, but we don’t want to set standards that are impossible to meet and we end up with no food production at all in this country.”

The Victorian government did not respond to the ABC’s requests for comment.