A new government-published report warns that UK egg farmers could face a competitive disadvantage
British egg farmers could face being undercut by cheaper overseas imports if the government bans domestic cage production without imposing equivalent restrictions on foreign eggs, a new official report warns.
The independent Animal Welfare Committee (AWC) has raised concerns that efforts to improve laying hen welfare could leave UK producers at a serious commercial disadvantage.
Its report, published by Defra on Friday 23 October, highlights the financial and practical challenges facing the industry as it moves towards cage-free production.
The warning comes as the government considers proposals to ban new enriched colony cage installations from January 2027, before phasing out existing systems by January 2032.
However, the measures remain proposals, with the government yet to finalise its response following a consultation earlier this year.
The scale of the potential transition is substantial. Research commissioned by the British Free Range Egg Producers Association (BFREPA), cited in the report, estimates that replacing existing colony cage production could require between 4 million and 5.9 million additional barn hen places.
The research suggests around 4.3 million cases of eggs currently produced annually in colony cages would be affected, with each case containing 360 eggs.
Much of this production would likely move into barn systems as retailers seek to maintain an affordable alternative to free-range eggs.
However, the transition would come at a cost. BFREPA estimates that barn eggs could cost between 5p and 8p more per dozen to produce than eggs from cage systems, although the committee acknowledges that costs could change as the industry adjusts.
The report identifies several obstacles for producers, including investment requirements, planning restrictions and the suitability of existing poultry buildings.
Some farms may be unable to convert to alternative systems because of limited land availability, unsuitable infrastructure or environmental constraints.
Expanding existing sites beyond certain thresholds could also trigger additional environmental permitting requirements, increasing costs further.
Against this backdrop, the committee warns that British producers could struggle to remain competitive if cheaper eggs and egg products produced in overseas cage systems continue entering the UK market.
Its concerns extend beyond supermarket egg cartons.
Figures from the British Egg Industry Council, cited in the report, suggest that 64% of the UK egg market supplies whole eggs to retailers, while 20% goes into food service and a further 16% is used in processed egg products.
This means competition from imported cage-produced eggs could also affect producers supplying manufacturers, caterers and other food businesses.
The findings reinforce concerns previously raised by egg producers over import standards and the proposed cage ban.
The National Farmers' Union (NFU) also opposed the proposals during the government's consultation.
In its response published in March, the union warned that removing domestic cage production without equivalent import restrictions risked shifting egg production overseas.
NFU National Poultry Board chair Will Raw said: "Policy change should be designed to advantage domestic production, ensure import equivalence, and avoid offshoring welfare concerns".
The NFU also argued that the proposed transition period was insufficient, warning that planning permission, construction delays and the cost of new facilities could make the 2032 deadline difficult for some businesses to meet.
Concerns over overseas competition have intensified following the government's decision to extend tariff-free access for Ukrainian eggs and egg products, prompting warnings from British producers about differing welfare standards.
Meanwhile, the new report highlights how significantly British egg production has already changed.
According to figures cited by the committee, free-range eggs accounted for 75.9% of UK egg packing station throughput during the first quarter of 2026.
Cage-produced eggs represented 14.1%, with barn and organic production accounting for the remainder.
The committee recognises that moving away from cages can improve welfare by giving hens greater opportunities to move freely and express natural behaviours.
However, it cautions that cage-free production also brings challenges, including increased risks of injuries, feather pecking and disease where housing and flock management are inadequate.
The findings come after veterinary organisations called for a complete ban on enriched cages, arguing that higher welfare standards must be accompanied by safeguards against lower-standard imports.
The committee recommends stronger training for poultry workers, improved housing design and closer cooperation between pullet rearers and egg producers.
The report also highlights the welfare challenges created by mandatory bird flu housing restrictions, which can force free-range hens to remain indoors for prolonged periods.
The threat remains significant, with a recent outbreak at a Northumberland free-range poultry farm prompting compulsory housing and movement restrictions within the affected protection zone.
The committee recommends that producers prepare contingency plans for future housing orders and improve indoor enrichment, ventilation and access to natural light.
Government support for biosecure verandas is also encouraged, allowing hens additional covered space while reducing contact with wild birds.
The committee stresses that moving away from cages must be carefully managed to ensure welfare improvements are achieved without creating further difficulties for British egg businesses.
Its findings arrive as the government considers the future of the sector following its consultation on cage reform, which closed on 9 March.
Defra has confirmed that the consultation attracted around 39,000 responses, reflecting considerable interest in the proposed changes.
The committee's advice was submitted to ministers in July but was not published until 23 October.