Australian shoppers are being ripped-off by egg producers, paying nearly double the price for 'free range' eggs over caged eggs according to consumer group Choice.
The problem stems from the fact that there is no Australian standard for 'free range', so producers are free to interpret the law as they see it. The Australian Egg Corporation has reportedly admitted that about one-third of 'free range' egg producers stock more than 20,000 hens per hectare.
The model code of practice for the industry recommends a maximum of just 1,500 hens per hectare.
Choice analysed 55 'free range' egg products, just 14 complied with the code of practice, while 21 revealed the stocked up to 10,000 hens per hectare, and 20 refused to give any information on how many hens per hectare they stocked. Pace Farms, Manning Valley and Farm Pride – 3 of the 4 largest egg producers and account for 30% of free range eggs sold in Australia – sell free range eggs at a density of 10,000 hens per hectare.
Choice spokesman Matt Levey has told the ABC, "For the first time we've actually put a number on the amount of eggs being sold in Australia that don't meet the free range expectations of consumers and it's over 213 million eggs sold last year. It's become an absolute farce."
"Some producers are actually cashing in on Australia's ethical shopping motivations without actually delivering the product that meets those expectations," he added.
Choice say consumers are paying around 99 cents per 'free range' egg, compared to 55 cents per caged egg. You can read the full report here.
It remains to be seen whether a national code will be hammered out, but state and territory affairs ministers are meeting on Friday to consider the proposal. The problem is that 'free range' can be widely interpreted, with Choice recommending that apart from stock density, 'free range' should also consider the size and location of openings and outdoor and indoor conditions.
Egg Farmers of Australia CEO John Coward has told Fairfax media, "The focus should be on the management practices at each level of densities, factors such as range area, the provision of shelter, the outdoor environment and access to range".
The question also has to be asked of the major supermarkets Coles – owned by Wesfarmers Ltd (ASX: WES) and Woolworths Limited (ASX: WOW), whether they are doing enough. I realise they aren't produce policemen, but as the recent fruit picking scandal involving labour-hire firms underpaying pickers showed, both supermarkets could suffer reputational damage from selling 'free range' eggs that don't meet the model code.
