Investigating Organics: A Case Study on the Application and Implications of the USDA’s Certified Organic Standards for Eggs

Student

Marisa Mooney

College(s)

Mendoza College of Business

Faculty Advisor

Bob Essig

Class Year

2022

Abstract 

By utilizing the form of a case study, this project synthesizes the events that have occurred over the last 20 years regarding organic egg labeling and the battles between small- and large-scale organic egg producers in order to identify the key issues within the organic egg industry. The demand for organic eggs has grown tremendously, but at the same time, the amount of organic eggs from industrial-scale egg producers has taken over 80% of the market share (1). These large-scale egg producers have taken advantage of differing interpretations of USDA organic standards to achieve organic status without providing their hens outdoor access, edging small to mid-scale farmers out of the market. After examining the history and complexities surrounding this issue, I conclude that it is imperative for the USDA to implement stricter regulations regarding their organic labeling standards to maintain consumer trust and a fair, viable market for organic producers. Overall, by taking a closer look at the egg industry this project shines light on the larger issues surrounding sustainability transparency within the food industry and the need for strict regulation of organic products to make it easier for consumers to make informed and ethical shopping decisions. 

Introduction 

In recent years, the demand for organic food has skyrocketed. In 2019 organic food sales accounted for 5.8% of total food sales within the United States (2). On top of this, organic food sales have continued to grow every year since 2008, and the rate of organic food sales continues to increase faster than the sale of conventional food (1). As concern for the environment becomes a more pressing issue, there has been an increase in consumers looking to know more about where their food comes from. For many, this means locating and supporting food suppliers that utilize farming practices that promote the health of the environment and treat their livestock with care and respect. To help consumers, make informed shopping decisions, Congress introduced the Organic Foods Production Act in 1990 which founded the United States Department of Agriculture’s National Organic Program. In theory, when a product boasts the U.S. Department of Agriculture certified organic labels consumers can be assured it comes from, “A production system that is managed in accordance with the Act... by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity” (3). 

But in practice, with the myriad of labels featured on egg cartons, it can be difficult for consumers to discern the minute differences between labels such as: cage-free, free-range, pasture-raised, organic, etc. Only adding to the confusion surrounding egg labeling, there is no regulatory or policy guidance from the USDA or the Food and Drug Administration regarding many labels such as farm-fresh, animal-friendly, naturally raised, happy hens, etc (4). As a consumer, deciphering between marketing jargon and labels that have sustainable implications can be difficult when making a quick purchase decision at the grocery store. What consumers do display is a willingness to pay more for a product when they think it means better animal welfare and sustainability, and they would buy even more if they were more readily available and had better knowledge of their labeling (5).

83% of consumers think it is highly important that their eggs come from hens that can go outdoors (6). Recent interpretations of the FDA’s organic standards have allowed for industrialized farms to obtain organic status without affording their chickens any outdoor space. Thus, controversy has ensued surrounding the current standards and enforcement of USDA certified organic eggs. At one end of the spectrum lies farmers focused on maintaining the spirit of organic farming with liberal outdoor access, polyculture farming, and allowing hens to thrive in conditions where they can express their natural behaviors. These farmers claim that current interpretations of the USDA’s organic standards have allowed for, “exploitation of the organic label through industrialization, confinement, and economic efficiency at the expense of animal welfare and the values that have driven the success of the organic industry” (1).

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End Notes

1. Scrambled Eggs - Cornucopia Institute. https://www.cornucopia.org/egg-report/scrambledeggs.pdf. 
2. Shahbandeh, M. “Organic Share of Total Food Sales in the U.S., 2019.” Statista, 13 Jan. 2022, https://www.statista.com/statistics/244393/share-of-organic-sales-in-the-united-states/. 
3. “Introduction to Organic Practices.” Introduction to Organic Practices | Agricultural Marketing Service, https://www.ams.usda.gov/publications/content/introduction-organic-practices. 
4. “Egg Labeling Regulations Guide.” Animal Legal Defense Fund, 7 Feb. 2022, https://aldf.org/article/egg-labeling-regulations-guide/. 
5. Feber, David, et al. “Sustainability in Packaging: Inside the Minds of US Consumers.” McKinsey & Company, McKinsey & Company, 21 Oct. 2020, https://www.mckinsey.com/industries/paper-forest-products-and-packaging/our-insights/sustainability-in-packaging-inside-the-minds-of-us-consumers.  
6. Weber, Sam, and Connie Kargbo. “What Makes Eggs 'Organic'? It Depends on Who You Ask.” PBS, Public Broadcasting Service, 24 Mar. 2018, https://www.pbs.org/newshour/show/what-makes-eggs-organic-it-depends-on-who-you-ask.