CALIFORNIA EGG LAWS & REGULATIONS: BACKGROUND INFORMATION

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CALIFORNIA EGG LAWS & REGULATIONS: BACKGROUND INFORMATION On November 4, 2008, California voters passed Proposition 2, which changes the way many hens in egg production are housed today. California passed legislation, A.B. 1437, on July 6, 2010, which requires any shell eggs sold in California be produced by hens raised in California-compliant systems and that they be labeled accordingly. On January 1, 2015, the new regulations require any shell eggs sold in California be produced by hens raised in California-compliant housing systems, meeting the requirements as determined by A.B. 1437, CDFA s Sec. 1350 & 1354. These laws specify food safety, hen space and carton labeling requirements. UEP advocated uniform national hen housing standards by supporting national legislation that would have provided stability for America s egg farmers and addressed a patchwork of state hen housing laws and regulations. However, this legislation was ultimately excluded from the 2013 Farm Bill. Attorneys general from Alabama, Kentucky, Missouri, Nebraska, Oklahoma and the governor of Iowa filed suit on February 3, 2014 to block California from imposing regulations in other states. On October 2, 2014, U.S. District Court Judge Kimberly Mueller dismissed the case brought by the attorneys general. She said they failed to show that the California law did genuine harm to their citizenry, instead of just possible future damage to some egg producers. In October of 2014, the same attorneys general filed a notice to appeal the U.S. District Court s decision. Only shell eggs are affected by the new regulations because they are monitored by the California Department of Food and Agriculture (CDFA), whereas liquid eggs and further processed eggs are monitored by the California Department of Health and Safety. These new regulations may lead to egg market uncertainty. There are many variables that impact the retail price of staple foods, with one important factor being supply and demand. At present, demand for protein is at an alltime-high, in particular animal protein. Subsequently, for a number reasons there is strong demand for eggs across the United States. On top of California s new egg laws, demand has also been stimulated by strong export interest as well as the fact that many Quick Service Restaurants are now serving breakfast. Overall, given eggs are an excellent source of affordable, quality protein, eggs are a popular choice over other protein sources. No matter the type of housing in which hens are raised, the vast majority of today s egg farms (those with 3,000 or more laying hens) are regulated by the FDA and other authorities to ensure eggs are safe. In addition, many egg farmers also participate in independent, third-party auditing programs that monitor and assure both egg safety and hen well-being. United Egg Producers is leading the egg industry in assuring that egg farmers continue to provide consumers with a safe, quality product. A study by the Coalition for Sustainable Egg Supply found no differences in food safety and egg quality between different hen housing options.

TIMELINE November 4, 2008: California voters passed Proposition 2, a ballot initiative requiring that egg-laying hens, veal calves and pregnant pigs be able to lie down, stand up, turn around and fully extend their limbs. July 6, 2010: California passed legislation, A.B. 1437, which requires any shell eggs sold in California be produced by hens raised in California-compliant systems and to be labeled accordingly. July 1, 2013: Phase I of the CDFA Egg Food Safety Regulations came into force, ie. all shell eggs sold in California meet additional food safety regulations (chick paper testing, end of lay swab & vaccination). Feb. 3, 2014: Attorneys general from Alabama, Kentucky, Missouri, Nebraska, Oklahoma and the governor of Iowa filed suit to block California from imposing regulations in other states. Feb. 7, 2014: The 2012 Farm Bill was signed, and the legislation to set a uniform national hen housing standard was ultimately excluded from the legislation. October 2, 2014: U.S. District Court Judge Kimberly Mueller dismissed the case brought by the attorneys general saying the states lacked standing to sue California over a law she said would harm only a small subset of egg producers who export their eggs to California. October 24, 2014: The attorneys general from Alabama, Kentucky, Missouri, Nebraska, Oklahoma and the governor of Iowa filed notice to appeal the U.S. District Court s decision. January 1, 2015: The new regulations (Phase II) requiring any shell eggs sold in California be produced by hens raised in California-compliant housing systems i.e. meeting the requirements as determined by A.B. 1437, CDFA s Sec. 1350 & 1354. These new laws specify cage and carton labeling requirements. Pasteurized are exempt. ### For more information please visit the following websites: United Egg Producers http://www.unitedegg.com/ UEP Certified Program http://www.uepcertified.com/ CDFA s Egg Safety Program - http://www.cdfa.ca.gov/ahfss/mpes/esqm.html Coalition for Sustainable Egg Supply http://www2.sustainableeggcoalition.org/ About the United Egg Producers The United Egg Producers (UEP) is a farmer cooperative representing egg farmer members from all across the United States. The member companies produce more than 90% of the nation s total egg production. UEP s primary role is to represent egg farmers and develop programs for the members that address animal welfare, food safety, and the environment and to represent their interest in government affairs.

Understanding California Requirements CALIFORNIA EGG LAWS & REGULATIONS: FACT SHEET On November 4, 2008, California voters passed Proposition 2, a ballot initiative, which changes the way egg-laying hens are housed in that state. Subsequent legislation requires any shell eggs sold in California be produced by hens raised in California-compliant systems. These hen housing requirements went into effect Jan. 1, 2015. UEP advocated for uniform national hen housing standards by supporting federal legislation that would have provided stability for America s egg farmers and addressed the current patchwork of varying state initiatives and regulations of hen housing. The legislation was ultimately excluded from the 2012 Farm Bill, ending national legislative efforts to set a uniform hen housing standard. Assuring Eggs are Safe for Customers and Consumers No matter the type of housing in which hens are raised, the vast majority of today s egg farms (those with 3,000 or more laying hens) are regulated by the FDA and other authorities to ensure eggs are safe for customers and consumers. In addition, many egg farmers also participate in independent, third-party auditing programs that monitor and assure both egg safety and hen well-being. United Egg Producers is leading the egg industry in assuring that egg farmers provide consumers with a safe, quality product. A study by the Coalition for Sustainable Egg Supply found no differences in food safety and quality between different hen housing options. Egg Demand These new regulations may lead to egg market uncertainty. There are many variables that impact the retail price of staple foods, with one important factor being supply and demand. At present, demand for protein is at an all-time-high, in particular animal protein. For a number reasons there is strong demand for eggs across the United States. On top of California s new egg laws, demand has also been stimulated by strong export interest as well as the fact that many Quick Service Restaurants are now serving breakfast. Given eggs are an excellent source of affordable, quality protein, eggs are a popular choice over other protein sources.

Addressing Questions Regarding Egg Market Uncertainty Egg farmers continue to provide a steady, safe, affordable supply of eggs for their customers and will work to find solutions that can begin to address this situation. Egg farmers face uncertainty in the implementation process related to California s AB 1437, which requires any shell eggs sold in California come from hens raised in California-compliant systems. While the new laws may create challenges in assuring an adequate supply of fully Californiacompliant eggs, egg farmers intend to find ways to address and mitigate any challenges that may arise. Housing Egg-Laying Hens While hens may be housed in a number of different production systems, egg farmers commitment to providing excellent care for their flocks remains firm. Today s hen housing practices ensure that the health and welfare needs of the hens are met, while also ensuring a safe, fresh, affordable supply of eggs for consumers. Today s hen housing practices provide the hens with protection against the weather and predators, while improving food safety, the environment and animal welfare. Regular and comprehensive animal care training for farm workers and ongoing monitoring of hen health and welfare are part of the high standards for hen care delivered by U.S. egg farmers. There are a number of housing systems used for layer hens in the U.S., including cage-free aviary housing, conventional cage housing and enriched colony housing. Caring for Hens Ensuring the health and well-being of all hens is a top priority for U.S. egg farmers. United Egg Producers administers the UEP Certified program, recognized as a leading program in the establishment of science-based guidelines on animal well-being. Regular and comprehensive animal care training for farm workers and ongoing monitoring of hen health and welfare are part of the high standards for hen care delivered by U.S. egg farmers. Some key hen well-being requirements of the UEP Certified program include: o Code of conduct signed by trained employees o Annual compliance audit conducted by third-party auditors o Scientifically supported space for hens o Feed, clean water and fresh air at all times UEP is a member of the Coalition for Sustainable Egg Supply (CSES) that studied hen well-being, environmental impact, food safety and quality, food affordability and worker health and safety by hen housing options.

U.S. Egg Industry Facts According to the U.S. Department of Agriculture (USDA), per capita egg consumption is the highest since 2007. There are approximately 300 million laying hens in the U.S. There are 60 companies that have more than one million laying hens. These companies represent approximately 255 million laying hens, or 87% of egg production. The top five egg producing states are Iowa, Ohio, Indiana, Pennsylvania and California respectively. Of the 229 million cases of eggs produced in 2013: o 32 percent were processed for liquid eggs, food ingredients or other food uses. o 53.3 percent went to retailers. o 10 percent went to foodservice. o 4.7 percent were exported. For more information please visit the following websites: United Egg Producers http://www.unitedegg.com/ UEP Certified Program http://www.uepcertified.com/ CDFA s Egg Safety Program - http://www.cdfa.ca.gov/ahfss/mpes/esqm.html Coalition for Sustainable Egg Supply http://www2.sustainableeggcoalition.org/ About the United Egg Producers The United Egg Producers (UEP) is a farmer cooperative representing egg farmer members from all across the United States. The member companies produce more than 90% of the nation s total egg production. UEP s primary role is to represent egg farmers and develop programs for the members that address animal welfare, food safety, and the environment and to represent their interest in government affairs. ###

Q. How do I know eggs are safe? CALIFORNIA EGG LAWS & REGULATIONS: FREQUENTLY ASKED QUESTIONS A. No matter the type of hen housing, the vast majority of today s egg farms (those with 3,000 or more laying hens) are regulated by the FDA and other authorities to ensure eggs are safe for consumers. In addition, many egg farmers participate in independent, third-party auditing programs that monitor and assure both egg safety and hen well-being. Q. Why are there different requirements for eggs sold in California? A. On November 4, 2008, California voters passed Proposition 2, a ballot initiative which changes the way many egg-laying hens are housed today. This ballot initiative determined that egg-laying hens, veal calves and pregnant pigs be able to lie down, stand up, turn around and fully extend their limbs. Additional legislation passed in 2010 requires that any shell eggs sold in California come from hens raised in California-compliant systems and that they be labeled accordingly. These new requirements are effective Jan. 1, 2015. Q. How do I know the hens producing the eggs I buy were treated humanely? A. While hens may be housed in a number of different production systems, egg farmers commitment to providing excellent care for their flocks remains firm. United Egg Producers administers the UEP Certified program, recognized as a leading program in the establishment and implementation of science-based guidelines on hen well-being. Q. Will there be a sufficient supply of eggs raised in California-compliant conditions? A. While the new law may create challenges in assuring an adequate supply of California-compliant eggs, egg farmers are working to address and mitigate these challenges and to increase production of Californiacompliant eggs, while ensuring both the care of hens and the safety of eggs. Q. Will there be a glut of eggs in the rest of the country? A. Egg farmers are concerned about stability in the egg market and recognize that the effects of the California law extend across the country. Even prior to January 1, 2015, California did not produce enough eggs within the state to adequately supply the in-state egg demand. This means a large percentage of eggs sold in California were imported from other states prior to the effective date of the new law. Our focus is on restoring stability in the egg market while continuing to ensure consumers have an available supply of safe, affordable, high-quality eggs.

Q. If eggs become more expensive, why could that be? A. There are many variables that impact the retail price of staple foods, with one important factor being supply and demand. At present, demand for protein is at an all-time-high, in particular animal protein. Subsequently, for a number reasons there is strong demand for eggs across the United States. On top of California s new egg laws, demand has also been stimulated by strong export interest as well as the fact that many Quick Service Restaurants are now serving breakfast. Overall, given eggs are an excellent source of affordable, quality protein, eggs are a popular choice over other protein sources. Q. Why aren t more egg farmers prepared to meet the California requirements? A. Egg farmers faced uncertainty in the implementation of California s AB 1437, which requires any shell eggs sold in California come from hens raised in California-compliant systems. The law has been challenged through legal action leading up to the effective date. Q. Why aren t there uniform national standards? A. UEP attempted to set uniform national standards for hen housing by supporting federal legislation that would address a patchwork of state initiatives and regulations and provide stability to egg farmers. The legislation was ultimately excluded from the 2012 Farm Bill. In the absence of a federal solution, the potential for patchwork hen care and housing laws at the state level remains an on-going reality. Q. Are eggs raised in California-compliant systems safer? A. Eggs are safe, regardless of the housing system in which the hens are raised. Egg safety is a top priority for egg farmers this is our commitment to our customers and consumers. Virtually all egg producers (those with 3,000 or more laying hens) are regulated by FDA and other authorities to ensure eggs are safe for consumers. A study by the Coalition for Sustainable Egg Supply found no differences in food safety and quality between different hen housing options. Q. Why must other states change their production practices to sell eggs to California? A. Subsequent to the passing of Proposition 2, California adopted additional regulations that require any shell eggs sold in California come from hens raised in California-compliant systems. This legislation went into effect Jan. 1, 2015. Q. Are hens in California raised more humanely than hens in other parts of the country? A. Excellent hen care can be provided using a variety of different housing methods, and ensuring the health and well-being of their hens is a top priority for U.S. egg farmers.

Q. What different housing systems exist? A. There are a number of housing systems used for layer hens in the U.S., including cage-free aviary, conventional cage and enriched colony housing. The Coalition for Sustainable Egg Supply says in cage-free aviary systems hens have access to multiple levels to perform specific bird behavior, including perching, dust bathing, scratching and nesting. In cage-free aviary systems, hens are housed indoors, but are able to move about the barn in designated sections. Hens have constant access to fresh food and water, and the belt manure management system, located beneath the mesh floor keeps manure away from the birds. In a conventional cage system, hens are housed indoors in multi-level rows of cages with wire mesh floors. Hens have constant access to fresh food and water and the belt manure management system keeps manure away from the birds. Enriched colonies feature hens raised indoors, in barns with multi-level rows of enclosures with cages. A typical colony includes about 60 birds to ensure space for each hen to stand, sit down, turn around and extend her wings. Each colony provides hens with access to areas for specific bird behaviors, including perching, scratching, dust bathing and nesting. Hens have constant access to fresh food and water and the belt manure management system, keeps manure away from the birds. Q. Why are hens housed in cage systems? A. The modern hen housing system was found to meet the health and welfare requirements of the hens, while also delivering eggs to the market in the quickest, most economical way. Modern housing systems provide the hen with protection against the weather and predators, while improving food safety, the environment and animal welfare. Q. What will UEP do to help egg producers through this transition? A. We understand and share Californians concerns about the availability and price of eggs in the state, and we are committed to being a resource as the new laws take effect. For more information please visit the following websites: United Egg Producers http://www.unitedegg.com/ UEP Certified Program http://www.uepcertified.com/ CDFA s Egg Safety Program - http://www.cdfa.ca.gov/ahfss/mpes/esqm.html Coalition for Sustainable Egg Supply http://www2.sustainableeggcoalition.org/ About the United Egg Producers The United Egg Producers (UEP) is a farmer cooperative representing egg farmer members from all across the United States. The member companies produce more than 90% of the nation s total egg production. UEP s primary role is to represent egg farmers and develop programs for the members that address animal welfare, food safety, and the environment and to represent their interest in government affairs. ###

CALIFORNIA EGG LAWS & REGULATIONS: KEY TALKING POINTS Overarching Points As an egg farmer, I m committed to the production of safe, fresh, high-quality eggs and to ensuring excellent care for our hens. Egg farmers across the country raise hens in many different housing systems. Regardless of how eggs are produced, our top priorities are ensuring our eggs are safe and maintaining the highest standards for the health and well-being of our flocks. Egg Safety Producing safe, wholesome quality eggs is our responsibility, and it is a top priority for my farm. Our farm participates in a number of on-farm egg safety programs [NAME AS APPROPRIATE] and is regulated and inspected under the U.S. Food and Drug Administration s (FDA) Egg Safety Rule. Our commitment to egg safety includes comprehensive protocols for disease prevention and biosecurity from the farm to the processing plant. [DESCRIBE AS APPROPRIATE / REQUESTED] Consumer Preference We know that today s consumers are looking for a variety of food choices in the marketplace, based on their own preferences. That s why egg farmers produce eggs from hens raised in several different types of housing. No matter which type of production is used consumers can be confident that eggs are safe. [AS APPROPRIATE, DESCRIBE THE HOUSING USED ON YOUR FARMS.] California Situation As an egg farmer, I am aware of the possible uncertainty surrounding California s new egg laws and the potential impact on my farm and our customers. While a number of states have laws or regulations about hen housing, egg safety or other egg production practices in their states, they don t require egg farmers in other states to comply with in-state rules in order to sell eggs there. That s what makes the new California rules different. Whether eggs are produced to be California-compliant or in other housing systems, egg production is closely regulated by the FDA and other authorities and through voluntary, independently audited egg safety programs to ensure eggs are safe for consumers. While I ll continue to monitor the situation in California as the laws take effect, my focus remains on ensuring a safe, steady, affordable supply of eggs for our customers and for consumers.

Egg Demand These new regulations may lead to egg market uncertainty. There are many variables that impact the retail price of staple foods, with one important factor being supply and demand. At present, demand for protein is at an all-time-high, in particular animal protein. For a number reasons there is strong demand for eggs across the United States. On top of California s new egg laws, demand has also been stimulated by strong export interest as well as the fact that many Quick Service Restaurants are now serving breakfast. Given eggs are an excellent source of affordable, quality protein, eggs are a popular choice over other protein sources. Hen Health and Well-Being Our family and our employees are dedicated to keeping our hens healthy, safe and free from disease. We provide regular and ongoing training to the farm employees who care for our hens to ensure they meet our expectations for hen welfare at all times. We rely on a team of outside experts, including veterinarians, nutritionists and animal scientists, to help guide our hen care programs. Hens are provided with fresh food and water, appropriate lighting, clean housing and well-ventilated, modern barns in which to live. Regardless of the type of hen housing or egg production method used, our consumers can be confident that our farm is firmly committed to the excellent care of our hens. For more information please visit the following websites: United Egg Producers http://www.unitedegg.com/ UEP Certified Program http://www.uepcertified.com/ CDFA s Egg Safety Program - http://www.cdfa.ca.gov/ahfss/mpes/esqm.html Coalition for Sustainable Egg Supply http://www2.sustainableeggcoalition.org/ About the United Egg Producers The United Egg Producers (UEP) is a farmer cooperative representing egg farmer members from all across the United States. The member companies produce more than 90% of the nation s total egg production. UEP s primary role is to represent egg farmers and develop programs for the members that address animal welfare, food safety, and the environment and to represent their interest in government affairs. ###