Several cage-free egg mandates and retailer pledge deadlines are set to take effect in January 2026. Yet it is unknown whether producers can transition to cage-free production at a rate commensurate with these goals. This study uses qualitative and quantitative data from 2 U.S. egg producer surveys to evaluate the operational activities of conventional and cage-free facilities, identify market challenges, and assess the expected transition timeline. Across both studies, producers indicated higher fixed and variable costs in cage-free housing systems, with capital and labor being 2 of the central drivers of the cost increase. While several producers are willing to adopt cage-free production, they are hesitant to view the market shift as an opportunity. Among the most commonly cited barriers are limited customer demand, high capital costs, and a contradiction to environmental sustainability and food security efforts. With the current challenges, respondents are skeptical that the industry will meet the January 2026 voluntary pledge deadlines. The results from this study offer a holistic view of the potential ramifications of the cage-free transition on the egg market and can be used to inform marketing strategies and policy discussions.
Food regulations protect consumer health, mitigate environmental concerns, and promote animal welfare, but they can also hinder innovation, limit entrepreneurship, and generate higher consumer prices. This study examines the number of federal and state regulatory restrictions affecting the beef, pork, poultry, sheep, goat, and seafood industries, including processing, wholesale distribution, and retail sales. We also examine state regulatory heterogeneity associated with animal protein products. Our results suggest that protein supply chains have become subject to tens of thousands of regulatory constraints over the past half-century. We also find substantial heterogeneity in the number of state restrictions associated with animal production, indicative of large differences in the amount of administrative law across states. Results highlight that the patchwork approach of U.S. food policy creates overlapping, cumbersome guidelines for manufacturers, and given the interconnectivity of modern food supply chains, the framework can create additional hurdles for interstate commerce.
19 October 2020 in Managerial and Decision Economics
Cannabis regulatory reform has opened areas for product innovation and entrepreneurship. One dimension that has so far been understudied is the potential for cannabidiol (CBD) and tetrahydrocannabinol (THC) beverages. This study uses double-bounded contingent valuation techniques and parametric and nonparametric estimation procedures to assess consumer demand and willingness to pay (WTP) for various cannabis-infused beverages. By targeting a nationally representative sample of U.S. adults, the study finds that roughly half of consumers are willing to try cannabis-infused beverages. Among these respondents, cannabis-infused juices and sweetened iced tea elicit the highest mean WTP, though the WTP for other beverage options varies across demographics and consumer preferences. On average, the mean WTP for THC-infused beverages is 12.5% higher per 12 oz can than its CBD-infused counterpart, and younger consumers are willing to pay more for each of these products. These results have important implications for entrepreneurial decision-making, product development, and marketing strategies.