EY India Latest: Sustainable egg supply chain

How we can navigate the shift to ensure a sustainable egg supply chain

Explore the global shift towards cage-free eggs and its implications for India’s food industry.


In brief

  • Demand for ethical, cage-free eggs is reshaping the food industry.
  • Businesses must adapt and invest in humane practices for long-term growth.
  • India's nascent cage-free egg sector requires further development.

Navigating the shift: Ensuring a sustainable egg supply chain

The global food sector has witnessed a significant transformation, with a growing consumer demand for ethically produced products. This trend is particularly visible in the egg industry, where there is an increasing demand for free-range egg production under humane and sustainable livestock practices, reflecting a broader change in consumer behavior towards ethical consumerism in food.

For corporate leaders, especially those involved within the egg supply chain, understanding and adapting to these market dynamics is not just about responding to consumer demands; it is a strategic imperative that enhances brand reputation, ensures long-term success, and aligns business practices with the evolving standards of ESG in food production.

The article outlines strategies for businesses to transition from conventional caged egg production to cage-free systems. The focus is on providing a practical guide for corporations to shift their egg procurement practices, considering both ethical and economic factors, and ensuring a humane and sustainable supply chain.

EY ESG Compass is a comprehensive digital ecosystem that seeks to help organizations evaluate their ESG maturity levels and adapt a sector-specific strategy, using the power of analytics.

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Research suggests that consumers are willing to pay more for ethically sourced products, indicating a shift in market trends and consumer behavior. This shift presents a long-term growth opportunity for businesses that invest in humane egg production, which can lead to a resilient market presence. India is one of the world's leading egg producers, yet it faces challenges related to animal welfare in farming and ethical poultry farming. The country's egg production is predominantly based on conventional caged systems, which have several detrimental impacts on hens. Although the cage-free movement in India is growing, it is still at an extremely nascent stage and requires support from all stakeholders for development.

 

All businesses face challenges in transitioning to sustainable egg farming, including a lack of information, economic viability concerns, and inadequate infrastructure. To overcome these obstacles, a collaborative effort involving key stakeholders, such as corporations and the government, is necessary. Successful adoption of cage-free certification requires support from regulatory authorities and a clear understanding of investment strategies for cage-free egg production. Identifying key stakeholders and providing a phased approach to implementation are crucial steps in this process. Government policies on farming play a critical role in educating farmers on sustainable and eco-friendly agriculture. Corporations must also commit to this transition by setting clear goals, timelines, and progress reports, as well as engaging with stakeholders to create a supportive ecosystem for change. Investing in infrastructure upgrades and development is essential for a successful transition. Corporations should also take advantage of cage-free impact incentives and continuously monitor their progress to ensure that the implementation of cage-free practices is effective.
 

The move towards cage-free egg production is not only a market growth opportunity but also a chance for corporations to make a positive societal impact. Aligning with global trends and consumer demands positions companies for future success in a market that increasingly values conscious practices. As this movement gains momentum in India and beyond, companies that proactively embrace these changes will be well-positioned for future success in an increasingly conscious marketplace.

 

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Summary

The food industry is shifting towards ethical production, with a focus on cage-free eggs due to consumer demand for humane practices. To succeed and maintain their reputation, businesses need to adapt to this trend and the changing market. The transition involves strategic planning, stakeholder collaboration, and investment in infrastructure. India, a major egg producer, is slowly adopting cage-free methods; however, it requires further institutional and organizational support. 

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