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Rising production costs making egg prices rise. How is this effecting the macro supply curve?

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This year because of a law, chickens will get a bigger houses. That means the price of eggs is going up. Starting January 1, a law takes action in California that forces farmers to provide more room for chickens. Prices for eggs are expected to rise 10 - 40% next year because of the cost of improvements to provide more space for chickens. Already farmers are starting to pay for the improvements now, the average cost of a dozen eggs reached a peak of $2 recently - doubling in price from November.  How will this effect the supply curve? 

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  • 2 months later...

What's your source? From what I could find on the matter Californian chickens are already required to have 9,3 cm² (144 square inches) of cage room starting on 1th of January 2020. Then be cage free from the 1th of January 2022.

https://apnews.com/article/7caa07ba411e4a53afdc7498fd573950

The supply will obviously be lowered especially considering all eggs sold in California will have to comply with the same animal welfare conditions, to my understanding. With lower supply the prices will be raised. However with eggs being a typical generic product business competition is always fierce and therefore the change will likely have a small and short lasting effect on the supply and price.

Leaving the economics I thinks the tightening of the legislation is great news for the poor chickens. Just imaging being born for the sole purpose of producing numb offspring as unpaid slave labour, your hole life. 17 cents per egg is still dirt cheap for what you're getting.

GettyImages-chicken-cages.jpg

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