Supply Management

Georgina
Georgina

Does the farmer actually make more money per dozen eggs, when they produce free-range organic eggs?  I pay about $6 per dozen and I am thinking that the farmer might make 50 cents profit per dozen.  Would this be true?

Canada’s egg industry operates under the supply management system, where the price farmers get paid per dozen eggs is based on the national average cost of production.  Farmers producing specialty eggs tend to receive a higher price, since the cost to produce specialty eggs is typically higher.  For the free-range organic eggs you buy, the cost of organic feed is higher, birds running around (in and outside the barn) require more feed and water since they burn more energy, the barn has a larger footprint that requires more electricity to heat, etc…  As an FYI, supply management only sets the price that farmers receive from the graders.  The graders then negotiate the price they get from retailers (ie: grocery stores and restaurants), and the retailers are free to set the price that consumers pay for their eggs.

EFA
EFA

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