U.S. Consumer Preferences for Cage-Free Eggs and Hen Housing Policies

Abstract

Farm animal welfare (FAW) continues to be a divisive issue in the egg industry. In the United States, 10 states and most major retailers have implemented policies or voluntary pledges to transition to 100% cage-free egg sales. We use best-worst scaling and discrete choice experiments to evaluate U.S. consumer preferences for various FAW policies, calculate willingness to pay for cage-free eggs, and simulate the effects of policy implementations on consumers. Our results suggest that consumers generally prefer implementing less restrictive FAW policies, such as farm subsidies and mandatory labeling programs, relative to more restrictive bans on housing practices. However, many consumers still support implementing more stringent policies like bans on cage egg sales when put to a dichotomous choice. In terms of market preferences, results indicate that consumers, on average, are willing to pay premiums for eggs from hens raised in less confined settings. Yet, cage-free captures the lowest premium if not accompanied by other labels. Simulation of market choices reveals that banning conventional eggs could increase market opt-out rates by as much as 20% points, emphasizing the importance of maintaining the conventional option to some consumers. These results have marketing and policy implications that can inform stakeholders as they navigate evolving FAW standards.