Company Perspectives On Cage-Free Egg Commitments In China

China raises more egg-laying hens than any other country — 3.3 billion as of 2023 — but around 90% are kept in conventional battery cages. Over 100 cage-free commitments have been made by companies operating in China, though only 16 have been fully fulfilled. While some certification schemes exist to help verify cage-free eggs, most past research has focused on producers or consumers, not the companies making these commitments. This study looks directly at that gap and addresses what facilitates and prevents companies from fulfilling their cage-free commitments in China.

Researchers interviewed seven people, including five food business representatives responsible for cage-free egg procurement and two program managers overseeing cage-free certification schemes (the only two such schemes in the country at the time). They targeted companies with international headquarters and 2025 cage-free commitments since these are considered frontrunners in the transition.

For food business representatives, interviews explored their attitudes toward cage-free commitments, implementation challenges, and strategies for success. Interviews with certification scheme participants focused on the role of these programs in the cage-free transition, as well as the enablers and challenges of the transition. The researchers then identified recurring themes across the responses, some of which were informed by prior research on the topic and others which arose organically from the data.

Certification Schemes And The Cage-Free Transition

Certification scheme managers described their programs as a key support for the transition, both for differentiating caged from cage-free eggs and for offering companies a clear procurement pathway. Yet, food business representatives were largely unaware these programs existed. This suggests limited visibility or recognition of certification schemes in the Chinese market.

However, obtaining a certificate is only the first step. Certification scheme managers also pointed to the challenge of effectively supervising producers to ensure the eggs they sell are truly cage-free. Without a proper traceability system, the value of these programs could be at risk. Food business representatives also had concerns about transparency and verification, particularly in complex supply chains. Even so, interviewees argued that industry-led initiatives alone aren’t enough without broader regulatory support from the government, including standards, inspections, and labeling.

Facilitating The Cage-Free Transition

Interviewees showed strong, shared support for cage-free commitments. Food business representatives noted their positive influence on their company’s brand image, while certification scheme managers highlighted how they’ve helped motivate egg producers to make the switch and speed up the industry’s transition to cage-free.

Food business representatives also spoke to the importance of organizational buy-in and internal alignment and cooperation. They emphasized a top-down approach where leadership provides clear direction and commits the financial resources needed to support the transition. Letting companies gradually roll out cage-free sourcing rather than switching all at once was also seen as important. This phased implementation approach allows time for supply chains to mature and costs to stabilize.

Challenges To The Cage-Free Transition

Interviewees identified cost as the most significant challenge. Food business representatives highlighted higher purchasing prices, internal budget constraints, and difficulty in passing additional costs along to consumers. Some also noted how investors, shareholders, employees, and management place little value on animal welfare investment compared to other business priorities. They pointed to the tension between cage-free commitments made at the global level by corporate headquarters and the realities of fulfillment at the local level faced by the company on the ground.

Additionally, a complete transition requires changes across multiple supply chain levels, many of which are beyond the purchasing company’s direct control. Processed eggs are especially challenging compared to whole eggs. Some food business representatives felt that cage-free egg supply is still too small and unreliable. However, one certification scheme manager cautioned against mimicking the industrial-scale caged egg production model, which would crowd out smaller producers and perhaps be less sustainable in the long run.

The authors note that China’s cage-free supply already exceeds projected demand, so shortage concerns likely reflect uncertainty rather than real scarcity. As a short-term fix, they propose cage-free credits: farms convert cage-free eggs into tradeable credits that companies can purchase to offset their use of caged eggs when they’re unable to source cage-free eggs. Credits are bought and sold separately from the physical eggs, so the farms selling them don’t need to be part of a company’s own supply chain, but it also means a company can’t claim its products actually contain cage-free eggs, only that it’s offset its caged-egg use. This allows companies to support cage-free farms directly without restructuring their supply chains, and is already being used by Lagardère Travel Retail to help it fulfill its commitments in Asia. However, the authors note the credit system needs to be transparent and time-bound to avoid the risk of greenwashing.

The study has several limitations. The sample was small, with only seven participants, all recruited through one researcher’s professional network, which may not represent the full range of companies and certifiers in China. The findings also reflect a snapshot in time (from September 2023 to March 2024), and circumstances may have changed since then, particularly as new certification and labeling schemes have launched. It should also be noted that the lead author works for an organization that manages a cage-free credit system.

That being said, this is the first study to examine how certification schemes and corporate commitments are driving cage-free egg sourcing in China. While certification and internal company efforts have helped, structural issues like weak traceability, high costs, complex supply chains, and policy gaps still hold back progress. Solving this will take better coordination, stronger assurance systems, and tools like cage-free credits, though more research is needed to know how well these will work long term. Advocates can support certification and credit schemes while continuing to press for the broader regulatory backing needed from the government to ensure the future of the country’s cage-free production.