California's Nov. 2 ballot includes an initiative under which the state would prohibit the housing of egg-laying hens in cages, starting in 2015. The UC Agricultural Issues Center, based at UC Davis, explored the potential economic effects on the state's egg farmers and consumers if voters approve Proposition 2, titled "Treatment of Farm Animals."

The research, funded solely by UC, found that the state's egg industry would be severely reduced as costs of production rise while more eggs would be shipped in from other states, which would not be required to meet the regulations set for California production.

"Egg farmers began housing hens in cages in the 1930s in order to reduce hen health problems, improve egg cleanliness and increase the economic efficiency of egg production," said study co-author Joy A. Mench, UC Davis professor and director of the Center for Animal Welfare.

Today, less than 5 percent of the eggs produced in the state come from hens that are not housed in cages. The research study notes that noncage production costs are simply too far above the costs of the cage systems used in other states to allow California producers to compete with eggs shipped into the state.

"The most likely outcome, therefore, is the elimination of almost all of the California egg industry over a very few years," said the study's lead author, Daniel Sumner, director of the Agricultural Issues Center and Frank H. Buck Jr. Professor in the UC Davis Department of Agricultural and Resource Economics.

Although retail prices for eggs from noncage systems are at least 25 percent higher than conventionally produced eggs, California consumers would see little if any price increase from the initiative because more eggs produced in cage systems in other states would be shipped to California to replace the eggs no longer produced in the state.

-- UC Agriculture and Natural Resources

ON THE NET

"Economic Effects of Proposed Restrictions on Egg-Laying Hen Housing in California": aic.ucdavis.edu