Nearly a decade after Target said it would transition to selling only cage-free eggs, the Minneapolis-based retailer has said it will no longer reach its 2025 goal, drawing criticism from food ethics groups.
Target won’t meet its cage-free egg goal in 2025
Retailers, including Target, blame bird flu and affordability concerns for the delays in reaching their benchmarks for cage-free eggs, while animal welfare groups say they dropped the ball.
Target is one of several major retailers, including Walmart, that will fall short of their cage-free pledges. The companies point to availability and higher prices for consumers to explain the missed milestones.
The setbacks show that despite sustainability initiatives becoming more important to consumers and investors, their implementation is often less than perfect.
“We really want companies to follow through on their pledges,” said Taylor Warren, president of the Center for Responsible Food Business, a newly formed nonprofit that advocates for corporate social responsibility in the food sector. “Customers go to Target because of this perceived corporate responsibility. ... We are asking Target to step it up.”
On the last page of its annual sustainability report released at the end of July, Target explained it would not meet a goal set in 2016 to sell 100% cage-free eggs by 2025. Target had originally said its aspiration was “based on available supply.” The retailer hinted at problems in its report last year saying bird flu had struck its two largest facilities producing cage-free eggs for its private label Good & Gather, which “significantly impeded our progress on our cage-free goal.”
Last month, Target also detailed how cage-free eggs are more expensive than conventional eggs and explained that more than a dozen states don’t allow cage-free eggs for the Women, Infants and Children (WIC) program for low-income women and their young children.
At the same time, 11 states have mandated cage-free eggs, including California and Massachusetts. McDonald’s recently met its cage-free goal well in advance of its target, as have other retailers.
“Going forward, we will continue to work to maintain and build upon our progress and commitment to cage-free eggs while also offering affordable egg options for all of our consumers,” Target said in its report.
Advocates fired back at the retailer’s delay.
“Ultimately, companies’ actions should match their commitments,” said Beth Anne Hendrickson, senior associate director of corporate relations for the Humane League. “Cage-free is the new norm, not a premium product.”
Cage-free grows in prominence
Over the past five years, Target’s grocery sales have grown into a $24 billion business. As of July, 68% of its egg revenue came from cage-free eggs, up from 57% last year.
“As a leader in responsible sourcing, we’ve made great progress towards our cage-free egg goal,” Target said in a statement in response to criticisms. “At this time, the cage-free global supply is simply unable to meet demand, and consumers are seeking affordable options. We’ll continue to listen to the consumer and remain committed to providing a variety of egg options at various price points, including cage-free.”
The Center for Responsible Food Business is asking Target leaders to recommit to their original goal and be transparent about the steps it will take to get there, said Warren, who worked for animal welfare nonprofit the Humane League before he formed the Center for Responsible Food Business last year. Activists for the center have begun to pin up posters in Minneapolis calling for Target to change its egg policy.
According to a poll of more than 1,200 Target customers by Positive Sum Strategies, which was not funded by the center, the vast majority (82%) of those surveyed said they think chickens should be housed in open barns with no cages, yet many respondents (66%) wrongly identified the labels for cartons containing cage-free eggs or were not sure.
While consumers might say they don’t want chickens to be in cages, it is another question entirely if they would be willing to pay more to support that belief. In another survey published in the Agricultural & Applied Economics Association’s Choices magazine last year, price was found to be the most important factor to egg buyers.
Cage-free eggs are produced by hens that are housed in a room or open area allowing them to roam during their laying cycle, which animal welfare groups argue allows them a better quality life than those chickens kept in cages that significantly limit their movement.
In 2015 and 2016, numerous retailers and food service providers made pledges to transition to selling and using more cage-free eggs. Several states have also enacted laws prohibiting the sale of eggs from caged chickens.
Bird flu outbreaks have devastated poultry farms in recent years, reducing egg supplies and pushing prices up. Egg prices peaked at about $5 per dozen at the end of 2022 before they fell last year, according to the U.S. Bureau of Labor Statistics. However, the national average cost of a dozen large conventional eggs has again started to climb and reached about $3.08 in July.
Cage-free hens make up a growing portion of the egg-producing flock in the United States. A little more than 15% of laying hens were cage-free at the beginning of 2018 and are now nearly 40% of the total U.S. laying flock, according to the U.S. Department of Agriculture. At the start of August, the average advertised price of a dozen cage-free large white eggs was $3.34 — 26 cents more than conventional eggs.
Several retailers missing goals
A lot of companies are coming up on their cage-free deadlines, and several have signaled they need more time.
Target competitor Walmart and its sister company, Sam’s Club, said they wanted to reach a 100% cage-free egg supply chain by 2025. However, the retailers have already announced they are not on track to meet that goal.
In 2023, Walmart reported cage-free eggs made up 21% of its U.S. egg sales, and 41% of Sam’s Club egg sales were cage-free.
Discount retailer Dollar General set a goal in 2016 to be 100% cage-free by 2025. But the retailer said in a 2023 filing that “it is not reasonably practicable to transition to 100% cage-free in-shell eggs by 2025.”
That’s not to say some retailers haven’t reached their goals.
Both Walgreens and CVS went completely cage-free for the eggs they sold years before their deadline. Costco said 97% of the shell eggs it sold were cage-free in fiscal year 2022, though that percentage dipped the next year to 92% because of the bird flu outbreak. Still, the retailer said it expected the decline to be temporary. Whole Foods Market has sold only cage-free eggs for years.
Retailers can take steps to achieve their cage-free goals, like converting their private label assortment to cage-free and providing in-store education beyond just potentially misleading egg labels, said Hendrickson at the Humane League.
“At a minimum, these same food retailers should show they’re following through on these commitments by taking concrete steps to reduce the number of caged eggs they sell.”
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