Over the last decade, numerous global food companies have committed to adopting higher welfare standards for laying hens in their supply chain by phasing out cruel cage confinement and pledging to source 100% of their eggs from cage-free farms globally by the end of 2025.

However, in emerging markets such as Asia, some companies have failed to make substantial progress and risk not fulfilling their initial commitments.

How Do Cage-Free Credits Work?

Global Food Partners has developed a book and claim system for cage-free eggs called Impact Incentives. Similar to other book and claim systems used for commodities like palm oil, cocoa, and coffee, Impact Incentives allow companies facing challenges in sourcing physical cage-free eggs in emerging markets to purchase cage-free credits for the volume that they have yet to transition. By buying cage-free credits from certified cage-free producers, companies actively support the development of cage-free farming facilitating their transition to 100% cage-free sourcing over time.

While companies may still purchase caged eggs in the interim, investing in cage-free credits contributes to increasing the availability of cage-free eggs in the market. Over time, as the market strengthens through their investments in credits, companies can gradually shift to buying physical cage-free eggs.

Credits and Animal Welfare

Beyond the technical aspect, buying cage-free credits has a meaningful impact on the lives of laying hens. As a matter of fact, purchasing a cage-free Impact Incentive has the exact same effect on the welfare of laying hens as buying a physical cage-free egg.

Credits have the potential to drive significant market change, transitioning from the cruel confinement of laying hens - which is associated with physical and psychological suffering, as well as higher risks of salmonella - to cage-free farming practices, which offer a substantially higher level of welfare.

Global Food Companies And Credits

To date, several major food companies have committed to incorporating cage-free credits into their sourcing strategy, ensuring they meet their cage-free pledges by the end of 2025. These companies have proactively addressed sourcing challenges, demonstrating their commitment to animal welfare across all regions of the world.

Unfortunately, other companies have failed to make substantial progress in Asia and have not yet integrated credits to their strategy. ICAW is deeply concerned about their capacity and determination to fulfill their commitment and achieve 100% cage-free globally by the end of 2025.