I recently visited a poultry location that was producing fertilized eggs used to develop flu vaccines. This was a cageless facility with 40,000 birds in each house. This is not the only sector of poultry moving to a cage-free environment.
In a response to consumer demand, activity by groups like The Humane Society of the US and California Proposition 2, change is underway in the layer industry. Approximately 95% of all US eggs are produced by caged hens today. New certification standards from United Egg Producers define a reasonable amount of space for caged birds to be 67-86 square inches. If 80% of existing US structures are converted to these standards, the cost would be $7.5B for layers and pullets. The cost for cage-free housing will be approximately 41% higher. Birds in cage-free environments are more active, resulting in the consumption of 15-25% more feed. Cage-free egg production is about 6.5% lower than for caged eggs and you can expect 10% lower weight per egg.
Even though the economics of cage-free egg production look formidable, there is growth in this sector. One producer in New England that operates a 10M dozen egg business is expanding through New England and the Mid-Atlantic region. Their hens have free rein of slat floors, ample roosting and scratch space. Egg nests resemble small houses with red curtains to give hens a sense of privacy. In good weather, they have access to screened-in outdoor scratch areas.
Personally, I think this type of diversity is a strength for agriculture and is tied directly to consumer demand. Some folks just want reasonably priced, good quality, safe eggs and others want the same quality, safe eggs from a cage-free chicken in little houses with red curtains. There is plenty of room for both types of producers.