How Suppliers Promote Cage-Free Eggs In China

China is the world’s largest egg consumer and producer, yet 90% of the country’s eggs come from hens kept in cages that are known to cause significant welfare issues. According to a previous study, the majority of Chinese consumers agree that egg-laying chickens should not suffer (72%) and prefer to buy eggs from cage-free hens (65.5%). However, another study found that only 14% of Chinese egg farmers view cage-free production as feasible. This discrepancy shows the need for more research focused on the supply side of the market.

This study therefore set out to understand the perspectives of cage-free egg suppliers in China. Researchers conducted interviews with 12 individuals from 10 companies representing a diversity of cage-free housing types, flock sizes, chicken breeds, distribution channels, and marketing efforts. They then analyzed the transcripts to identify key supplier perspectives and promotion strategies. These may help other suppliers and animal advocates looking to expand the market for cage-free eggs in China.

Suppliers Look For Buyers Willing To Pay Higher Prices

Since cage-free eggs are more expensive to produce, suppliers emphasized the need to find buyers that are willing to pay a premium for them. Typically, these are consumers with higher incomes. Some also equate higher price with higher quality, and these consumers are willing to pay more for cage-free eggs for special occasions or to be given as gifts.

Suppliers also discussed how business buyers, such as high-end hotels or restaurants, are more willing to pay the premium when they have cage-free commitments to fulfill or cater to wealthier customers themselves.

Supplier strategies identified:

• Selling in locations with higher income levels, such as major cities
• Providing eggs in gift packaging for special-occasion buyers
• Selling to businesses that have cage-free commitments or a wealthier customer base

Suppliers Want To Match Buyer Preferences

Suppliers noted that consumers often use the physical attributes of an egg to determine its quality and so look to provide cage-free eggs that match these preferences. Consumers evaluate eggs before and after purchase based on things like shell color, egg size, yolk color, and egg texture and taste. Some also relate good taste to better nutritional value. While these characteristics may be linked to factors other than cage-free housing, such as the hens’ feed, suppliers were conscious of the fact that consumers need to feel the eggs’ quality is worth the higher price.

Supplier strategies identified:

• Using different breeds of chickens to achieve different shell colors and egg sizes
• Making adjustments to the hens’ feed to improve egg taste
• Using feed additives to make the yolk color darker (though consumers may perceive this as unnatural)

Suppliers Need To Establish Buyer Trust

Suppliers identified the varying reasons that consumers have for choosing cage-free eggs, including tradition, food safety, taste, health, and altruistic motives. However, they also noted that consumers are often skeptical of supplier claims due to lack of education around labeling and misleading marketing from caged-egg companies. In addition, consumers may be unfamiliar with the concept of animal welfare or terms such as “cage-free.” Because of this, suppliers felt it was crucial to increase transparency and raise awareness of how their cage-free practices set them apart.

Business buyers tend to have more stringent requirements such as third-party certification, which some suppliers said they found challenging to meet.

Supplier strategies identified:

• Using trusted third-party certifications displayed on egg packaging
• Showing farm conditions through photos, videos, or tours
• Hosting customer engagement events in supermarkets
• Developing personal relationships with consumers, businesses, and animal welfare partners

Limitations

The strategies outlined in this study are based on the perspectives of a subset of cage-free suppliers in China. As these views are subjective, they may not be universally true for all cage-free suppliers across the country.

Recommendations For Animal Advocates

Animal advocacy is often focused on individual consumers. Partnerships with suppliers offer a unique opportunity to scale impact and reach a wider consumer base. Here are some ways animal advocates can help:

• Educate consumers on third-party certifications. Chinese consumers are confused and often skeptical of the animal welfare certifications shown on packaging. Greater socialization and education around certifications can improve consumer-supplier trust.
• Understand consumers’ buying behaviors. While Chinese consumers may choose cage-free for animal welfare motives, other factors include food safety, taste, health, and price. Advocates can keep these factors in mind when promoting the switch to cage-free eggs, although price may be the most challenging since it appears to be a major barrier for consumers choosing cage-free.
• Pressure businesses to make cage-free egg commitments. Many cage-free suppliers in China rely on selling to business buyers who have made cage-free commitments. This is especially true for large international businesses. In addition to pushing for these commitments, advocates can help connect business buyers to cage-free suppliers.