Gov. Hobbs Presses Pause on Compassion for Laying Hens Amid Egg Price Surge

Governor Katie Hobbs has initiated a controversial plan to make eggs more affordable in Arizona, but the effectiveness of this initiative remains questionable.

On Friday, Hobbs instructed the state Department of Agriculture to postpone the implementation of cage-free egg regulations until 2034. Her press aide, Christian Slater, noted that this delay could prevent immediate costs to producers, which would ultimately affect grocery prices for consumers.

However, expectations for significant savings at the grocery store may be overly optimistic.

The Department’s earlier estimates indicated that transitioning from current cage systems to more humane accommodations for hens could result in a price reduction of just 12 to 39 cents per dozen eggs, based on rising costs nearing $6 per dozen. For individual consumers, this translates to a potential annual savings of only $2.71 to $8.79.

Acknowledging the challenges stemming from avian flu outbreaks which have raised egg prices, Slater deemed inquiries into the plan’s financial impact as “insulting,” emphasizing the governor’s commitment to address everyday issues faced by Arizonans.

In her statement, Hobbs referenced USDA data forecasting further price hikes of up to 20% this year, complicating the outlook for consumers hoping for relief.

This decision unfolds just before a House Committee meeting on an alternative proposal by Sen. Shawnna Bolick to strip the Department of Agriculture’s authority regarding cage sizes for hens. Bolick asserts that while the state cannot resolve the bird flu crisis, legislative measures could provide grocery bill relief for residents.

Her bill, SB1721, has already passed the Senate with strict party-line support.

Slater claimed the timing of Hobbs’ announcement was coincidental, but the governor’s directive could offer political cover should she choose to veto Bolick’s legislation.

The complications, however, extend beyond politics and consumer pricing.

The original cage-free policy was initiated partially in response to threats from the Humane Society of the United States to seek a voter initiative that would prohibit the sale of eggs from caged hens—an initiative that could bypass legislative control.

In 2020, industry leaders, including Glenn Hickman, urged lawmakers to intervene to negotiate a more favorable compliance timeline for producers and avoid harsh penalties.

However, legislative reluctance led the Department of Agriculture to propose phased implementations of cage-free requirements, which were supposed to start this year but have already been delayed twice.

If Hobbs’ latest proposal is approved, it would extend these delays significantly, allowing producers to continue using currently permitted cage systems.

This situation may be rendered moot by ongoing legal challenges. The Goldwater Institute has filed a lawsuit on behalf of Tucson restaurateur Grant Krueger, arguing that the Department of Agriculture lacks the authority to regulate hen housing sizes.

Krueger’s argument, which survived an initial court challenge, claims that his restaurants experience substantial economic harm from the existing regulations, purchasing over 100,000 eggs annually.

The outcome of this case could have significant implications for the future of egg production regulations in Arizona. A trial date has yet to be determined.