For the first time since the battery hens boom, the share of caged egg sales in Australia has fallen below 50 per cent, according to the latest industry figures.
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The Australian Egg Corporation Limited's annual report shows caged eggs now account for 49.5 per cent of all grocery egg sales by volume, down from 74.9 per cent a decade ago.
Reflecting the growing consumer demand for ethically produced eggs, the share of free range eggs has jumped from 20.3 per cent to 40.7 per cent in that time.
Barn-laid continues to be a relatively unpopular choice, with its share of sales hovering between 5 and 10 per cent.
"The Australian egg industry has experienced another record year in terms of industry and market growth during 2015-16 despite some key industry challenges and a difficult operating environment," said Jeff Ironside, the recently departed AECL chairman.
"Uncertainty prevailed relating to the free range farming definition, new standards and guidelines for hen welfare, food safety outbreaks traced back to eggs, farm biosecurity arrangements and animal health concerns to mitigate disease outbreaks ... and continuing egg labelling confusion."
Australians are eating more eggs than ever before, with annual consumption rising from 183 eggs per person in 2007-08 to 226 in the past financial year.
"Over time, we have built permission to consume more eggs more often and more recently, have been driving consumption through seeking a change in consumer behaviour," said Mr Ironside.
"The increased production and consumption levels are testament to the programs, campaigns and initiatives that have been progressed by AECL on behalf of its stakeholders."
After decades of labelling confusion, ministers responsible for consumer affairs decided early last year the definition "free range'" should be eggs from hens that have meaningful and regular access to an outdoor range and are subject to an outdoor stocking density of 10,000 hens per hectare or less.
Consumer advocates, animal activists and some free range egg farmers continue to argue the definition should be 1500 hens per hectare. The RSPCA is working to ban the use of battery cages.
Woolworths and Aldi have promised to phase out caged eggs, while Coles has removed caged eggs from its home-brand range.
The Federal government received feedback in regards to the text of a draft for the new information standard late last year.
The AECL has undergone some changes with the departure of its long-standing managing director James Kellaway, who the Australian Competition and Consumer Commission took to court alleging involvement in a cartel to artificially increase prices alongside Mr Ironside and former director Zelko Lendich.
The Federal Court dismissed the allegations in March 2016, but the ACCC has lodged an appeal. Separately, the court ordered Mr Lendich to pay a pecuniary penalty of $120,000 for an attempt to induce a cartel arrangement between competing egg producers.
In October it appointed Rowan McMonnies, a former partner at global law firm Baker & McKenzie, as its new managing director.
It also introduced two board members: Bede Burke, a caged egg farmer from Tamworth, and Charmaine England, a food marketing expert.
Mr McMonnies said that while the market share of caged eggs had fallen, sales were actually increasing "in their own right".
He said Aztec supermarket sales data showed a 7.1 per cent year-on-year increase in the volume of annual eggs sales in the past year.
"I would say a 49.5 per cent [market share of caged egg sales] is a significant proportion, a very high number, and while the trend is undeniable, the category is growing," he said.
He said 2017 will be a significant year for the egg industry, with the creation of the free range egg information standard as well as the review of the Model Code of Practice for the Welfare of Animals – Domestic Poultry.
Consumer advocacy group Choice says it will continue its campaign to boycott "fake" free range eggs, that is, eggs from hens from farms with a stocking density of up to 10,000 hens per hectare.
"The purpose of a national information standard for free range eggs should be to give consumers accurate information, not to protect producers who might be misleading consumers," says Choice spokesman Tom Godfrey.
"The sad fact is the draft national standard seeks to change the definition for free range eggs to suit the needs of industrial egg producers."
He said the group's augmented reality app CluckAR has been downloaded more than 50,000 times. He said there were more than 2600 scans of egg cartons a day.
"When you are paying a significant price premium for free range eggs, you need certainty that you are getting what you paid for," he said.
"The popularity of CluckAR demonstrates that the current free range egg labelling does not provide sufficient information for consumers to make an informed decision."
