Why Costco's Cage-Free Eggs Are A Big Deal

Maybe you've heard of Costco, the major food retailer with over 800 locations globally. Best known for its low prices, iconic $1.50 hotdogs, and being one of the one-stop-shops for you to purchase almost all of your household and lifestyle needs (including food, clothes, insurance, medication, auto, etc.). But, have you heard the tea about its cage-free eggs? In 2007, Costco made a commitment to selling 100% cage-free eggs. Fast forward about 20 years later, and it's still honoring that commitment. The consistency may be nice, but you might be wondering why its cage-free eggs are actually a big deal.

In today's retail market, many companies have noticed that consumers are becoming concerned with how and where their groceries are being sourced (via "Journal of Business & Industrial Marketing"), not just the sale price. As trends suggest, consumers consider animal welfare, food safety, and the use of antibiotics before adding items to their shopping carts. Costco — which sells billions of eggs globally per year — is working to provide a solution to the change in demand by having the hens from their suppliers undergo a rigorous animal welfare assessment.

To be clear, cage-free eggs come from hens that are housed in indoor spaces where they're free to roam, while conventional eggs have been laid by hens that are kept in cages. It is a common misconception that cage-free eggs are healthier than conventional eggs — the two likely have the same health benefits. However, the 'cage-free' title means that the hens experienced more humane husbandry practices. Before the cage-free eggs make their way to you, Costco assesses the welfare of its supplier's hens in five categories: nutrition, environment, health, behavior, and mental state. As of September 2022, the percentage of Costco's Kirkland-brand cage-free shelled eggs grew to 97% sold to U.S. stores.

In an effort to keep its commitment to going 100% cage-free, Costco requires its Kirkland Signature egg supplier to complete an audit using the Costco Hen House app platform. The audits are performed biannually, each question requires a photo submission for extra assurance, and the information automatically goes to Costco.The necessary audits and assessments have been helpful when developing a strategy to respond to the slight percentage decrease in the production of cage-free eggs.

Just how committed is Costco to pursuing its goals? Even its liquid eggs are cage-free. However, in the bulk retailer's 2023 fiscal year, some of the U.S. and Canadian hens caught High Pathogenic Avian Influenza virus (bird flu) during the winter and spring seasons. This caused the company's cage-free egg production in the United States to decrease by a little over 5%, and the egg production in Canada to decrease by less than 1%. To combat the potential Kirkland Signature Egg shortage, Costco resorted to the partial use of conventional eggs to satisfy consumer demand.

It's no surprise that in any grocery store, cage-free eggs cost more than conventional eggs. However, you might find the price difference worth it knowing the extra work that goes into bringing them to the shelves of your local Costco. Of course, the chain's real secrets are hiding in its food court, including special items and ordering tips that are kept hush-hush.