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Prop. 2 unlikely to raise egg prices, study says

November 6, 2008

Californians voted resoundingly to free about 20 million egg-laying hens of tiny cages. But in passing Proposition 2, the farm animal welfare measure, did the state's consumers yoke themselves to higher egg prices?

For months farmers had contended that the measure would drive up egg prices or even put them out of business because of the high cost of retrofitting their farms with cage-free facilities.

But the measure's proponents and a respected state agriculture expert stressed Wednesday that such results were unlikely, especially in the short term. Proposition 2, approved by a nearly 2-to-1 margin, doesn't take effect until 2015.

Also, California imports a third of the shelled eggs it consumes from out-of-state producers, which are not subject to the new regulations. There would be no reason for a jump in the price of those eggs, according to a study on the economic effects of the proposition from the UC Davis Agricultural Issues Center. Out-of-state producers would also be likely to increase their production to feed Californians.

"There is no reason to expect any significant change in the price of any eggs. That applies to eggs from cage-free hens too," saidDaniel Sumner, the primary author of the UC Davis study.

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