August 2012

Economic Impact Analysis of 

Proposed Regulations for Living 

Conditions for Organic Poultry

Revised Phase 1 Report

Prepared for

U.S. Department of Agriculture

Agriculture Marketing Service

National Organic Program

1400 Independence Avenue SW

Room 2646 South Building

Washington, DC 20250

Prepared by

Tomislav Vukina

Vukina et al. Consulting

Raleigh, NC 27612

Kenneth Anderson

North Carolina State University

Raleigh, NC 27695

Mary K. Muth

Melanie Ball

RTI International

Research Triangle Park, NC 27709

(RTI Project #0213213.000.001)
_________________________________

RTI International is a trade name of Research Triangle Institute.

RTI Project Number

0213213.000.001

Economic Impact Analysis of 

Proposed Regulations for Living 

Conditions for Organic Poultry

Phase 1 Report

August 2012

Prepared for

U.S. Department of Agriculture

Agriculture Marketing Service

National Organic Program

1400 Independence Avenue SW

Room 2646 South Building

Washington, DC 20250

Prepared by

Tomislav Vukina

Vukina et al. Consulting

Raleigh, NC 27612

Kenneth Anderson

North Carolina State University

Raleigh, NC 27695

Mary K. Muth

Melanie Ball

RTI International

Research Triangle Park, NC 27709
Phase 1 Report iii

Table of Contents

Chapter Page

1 Introduction...................................................................................................................................1-1

1.1 Background .........................................................................................................................1-1

1.2 Objectives............................................................................................................................1-2

2 Overview of Organic Poultry and Egg Industry ...........................................................................2-1

2.1 Volume and Dollar Value of Organic Poultry and Eggs.....................................................2-1

2.1.1 Trends in Organic Layer and Poultry Inventories..................................................2-1

2.1.2 Dollar Value...........................................................................................................2-6

2.2 Number of Operations, Geographic Areas, and Range of Scale of Production ................2-11

2.2.1 Number of Organic Poultry and Egg Operations.................................................2-11

2.2.2 Geographic Areas of Production..........................................................................2-12

2.2.3 Range of Scale of Organic Poultry and Eggs Production ....................................2-14

2.3 Types of Marketing Methods............................................................................................2-14

2.4 Limitations and Qualifications of the Data .......................................................................2-18

References............................................................................................................................................R-1

Appendixes

A Regulatory Options 2 and 3, 5-Year Implementation Period.......................................................A-1

B Price Tables for Eggs and Broilers ..............................................................................................B-1
iv Phase 1 Report

List of Figures

Number Page

2-1 Trends in Certified Organic Layer Hen Counts, 2000–2011........................................................2-3

2-2 Trends in Certified Organic Broiler Steady-State Inventory, 2000–2011 ....................................2-4

2-3 Trends in Certified Organic Turkey Steady-State Inventory, 2000–2011....................................2-6

2-4 Prices for Conventional and Organic Eggs at First Receiver, per Dozen, January 2004–

December 2011.............................................................................................................................2-7

2-5 Upper Midwest Organic Corn and Soybean Prices, January 2007–December 2011....................2-8

2-6 Prices per Pound for Conventional and Organic Broilers at First Receiver, Whole Readyto-Cook, 2004–2011 .....................................................................................................................2-8

2-7 U.S. Organic Egg Production, Laying Hen Counts, 2008 ..........................................................2-12

2-8 U.S. Organic Broiler Production, 2008 ......................................................................................2-13

2-9 U.S. Organic Turkey Production, 2008 ......................................................................................2-13
Phase 1 Report v

List of Tables

Number Page

2-1 U.S. Laying Hen Counts and Estimated Egg Production, Total and Organic, 2000–2011 ..........2-2

2-2 U.S. Organic Broiler Steady-State Inventory, 2000–2011 ...........................................................2-4

2-3 U.S. Organic Turkey Steady-State Inventory, 2000–2011 ...........................................................2-5

2-4 U.S. Egg Production Value, Total and Organic, 2008 and 2011..................................................2-8

2-5 Value of U.S. Broiler Production, Total and Organic, 2008 and 2011.........................................2-9

2-6 Fresh and Frozen Turkey Average Prices per Pound, Organic and All, October 2011–

December 2011...........................................................................................................................2-10

2-7 Value of U.S. Turkey Production, Total and Organic, 2008 and 2011.......................................2-11

2-8 Number of Certified Organic Poultry and Egg Producers and Operations, 2011.......................2-11

2-9 Top 3 States in Organic Poultry and Egg Production, 2008.......................................................2-12

2-10 Average Sizes of Certified Organic Poultry and Egg Producers by Certifier, 2011...................2-14

2-11 Types of Suppliers of Organic Poultry and Eggs, 2007 .............................................................2-15

2-12 Methods Used to Procure Organic Poultry and Eggs, 2007 .......................................................2-16

2-13 Compensation Terms Used Most Often in Handlers’ Contracts for Organic Poultry and 

Eggs, 2007 ..................................................................................................................................2-16

2-14 Method of Quality Measurement for Pricing Organic Poultry and Eggs, 2007 .........................2-17

2-15 Standard Contract Clauses for Organic Poultry and Eggs, 2007 ................................................2-17

2-16 Contract Length for Organic Poultry and Eggs, 2007 ................................................................2-18

1

Phase 1 Report 1-1

Introduction

In September 2011, the U.S. Department of Agriculture’s (USDA’s) Agricultural Marketing 

Service (AMS) contracted with Vukina et al. Consulting to conduct a regulatory impact analysis on 

proposed changes to living standards for organic poultry. Vukina et al. Consulting completed three major 

steps (or phases) to conduct work under this contract:

 Phase 1: Evaluate and Document a Baseline Scope of the Industry

 Phase 2: Conduct Economic Impact Analysis of the Proposed Rule

 Phase 3: Prepare the Economic Analysis for Inclusion in Proposed Regulations

This document contains the Phase 1 report, which is a summary and evaluation of the baseline 

scope of the organic poultry and eggs industries. Relevant data summarized in this report are included in

the baseline industry characterization section of the economic impact analysis document delivered under 

Phase 3.

1.1 Background

USDA-AMS oversees the USDA National Organic Program (NOP). As part of the rulemaking 

process, AMS may conduct economic impact analyses of amendments to the national standards for 

production and handling of organic agricultural products. With potential changes in the requirements for 

living conditions for organic poultry, the NOP must consider the economic effects of these changes on the 

regulated industry.

The USDA NOP regulations at 7 CFR Part 205 set forth the national standards for production and 

handling of organic agricultural products. The NOP regulations were first published in 2000. In February 

2010, AMS amended these regulations to include a substantial practice standard amendment regarding 

access to pasture for livestock. Livestock living conditions as they apply to poultry are regulated by § 

205.238 (Livestock Health Care Practice Standard) and § 205.239 (Livestock Living Conditions).

The NOP regulations do not set specific stocking rates for either inside housing or the outside 

access areas, and further elaboration may be needed to ensure consistent regulatory implementation and 

enforcement. The NOP issued a general policy memo in October 2002 (NOP Policy Memo 11-5, reissued 

January 31, 2012) affirming that outside access areas are required, but it did not specify size or other 

details. In October 2002, an appeal decision found that outdoor access could be provided by a fenced, 

roofed, and floored outside area (a “porch” attached to a poultry house) for the operation involved in the 

appeal.

The NOP subsequently provided a memo regarding exemption to outside access for purposes of 

biosecurity (NOP Policy Memo 11-12, issued November 2005, reissued January 2011). To obtain organic 
Economic Impact Analysis of Proposed

Introduction Regulations for Living Conditions for Organic Poultry

1-2 Phase 1 Report

certification, poultry producers must submit to NOP an Organic System Plan (OSP) to a USDAaccredited certification agency describing their provision of outside access. The OSP is subsequently 

reviewed by the certification agents for consistency with the regulations, review the OSP for sufficiency, 

and conduct on-site inspections to verify compliance by organic operations. The National Organic 

Standards Board (NOSB), the NOP’s federal advisory committee, made recommendations in April 2002,

November 2009, and December 2011 on animal welfare issues. The NOSB also completed additional 

changes concerning appropriate living conditions for poultry at their December 2011 public meeting. On 

December 2, 2011, NOP submitted three options for regulations regarding outdoor access for poultry

based on NOSB recommendations and independent animal welfare standards. These options are described 

in detail and included as Appendix A in this report. The NOP may pursue a regulatory amendment to 

§205.239 in accordance with NOSB final recommendations, which would clarify requirements for outside 

access and other living conditions for poultry.

1.2 Objectives

The objective of this project was to provide an independent economic impact analysis of possible 

regulatory changes for the living conditions for organic poultry, including a justification of the 

methodology. The complete analysis estimates the costs and benefits of implementing the proposed rule, 

compared with alternatives (as per Executive Order 12866). Alternatives include (1) no change to existing 

rule, (2) regulatory Option 2 developed by NOP and summarized in Table A-1, and (3) regulatory Option 

3 summarized in Table A-2. All work was conducted in a manner to comply with the USDA Information 

Quality Activities Regulatory Guidelines. The objective of this Phase 1 report was to provide a summary 

and evaluation of the baseline scope of the organic poultry and eggs industries for use in conducting the 

economic impact analysis.
2

Phase 1 Report 2-1

Overview of Organic Poultry and Egg Industry

To evaluate and document a baseline scope of the industry, the project team gathered data 

relevant to conducting a regulatory impact analysis on proposed changes to standards for living conditions 

for organic poultry. Data necessary to perform this task include the following:

 volume and dollar value of current production of organic poultry products and trends over 

time

 number of organic poultry operations, range of scale of production, and the geographic areas 

of production/distribution

 types of marketing methods

 limitations and qualifications of the data

Poultry species and commodities that are part of this analysis include broilers, turkeys, pullets, 

and layers (eggs). Data presented in this report were gathered from multiple sources, including various 

agencies within USDA, interviews with organic certifiers, existing literature, private databases associated 

with various organic certifying agencies, and various industry organizations. These data are necessary to 

conduct the economic impact analyses of the proposed rules, which will be conducted during Phase 2 of 

this project.

2.1 Volume and Dollar Value of Organic Poultry and Eggs

Steady-state inventory1of organic poultry and production of eggs has steadily increased over the 

last decade. In this section, we describe the trends in the number of laying hens, broilers, and turkeys;

wholesale prices and trends in sales of organic poultry and eggs; and the value of production of organic 

eggs, broilers, and turkeys between 2008 and 2011 and their relative value to total poultry and eggs.

2.1.1 Trends in Organic Layer and Poultry Inventories

The number of organic layers, broilers, and turkeys grew substantially over the 2000 to 2011

period. In this subsection, we describe the trends in the number of laying hens, broilers, and turkeys over 

this period.

Laying Hen Counts and Estimated Egg Production

Production numbers for organic eggs over the past decade were not available; therefore, to 

estimate trends in total organic egg production, we calculated estimates of egg production based on laying

hen counts. According to data obtained by AMS, on average, each organic laying hen produced 

approximately 19.4 dozen eggs in 2011. According to Ibarburu and Bell (2012), on average, each 

 

1

Steady-state inventory refers to a situation where the animal population does not change over time or in which 

change in one direction (slaughter or harvest) is continually balanced by change in another (repopulation).
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-2 Phase 1 Report

conventional laying hen produced 24.25 dozen eggs per year. Assuming that the average number of eggs 

per laying hen has not changed over time, using laying hen counts as a proxy for egg production is 

feasible, and the trends in egg production are identical to trends in layer counts.

The total laying hen count in 2000 was approximately 277 million head, and only 0.3% of that 

count, or 1.1 million, was certified organic, as shown in Table 2-1. In 2008, although the total laying hen 

count was 285 million—an overall increase of just 2.8% over the 2000 count—the number of organic 

layer hens more than quadrupled over the same time frame. The growth in the size of the conventional 

layer flock came to a virtual hold in the 2008 to 2011 period with the number of layers remaining constant 

during that time period. At the same time, the certified organic flock grew further, reaching almost 7.7 

million birds (or 2.15% of the total) with the egg production of 149 million dozens of eggs. The trend in 

certified organic layer hen counts is depicted in Figure 2-1.

Table 2-1. U.S. Laying Hen Counts and Estimated Egg Production, Total and 

Organic, 2000–2011

Year

Total Layer 

Hens (birds)

Estimated Total 

Eggs (dozens)a

Total Certified 

Organic Layer 

Hens (birds)b

Estimated 

Certified 

Organic Eggs 

(dozens)c

Percentage

Certified 

Organic of 

Total

2000 273,600,000d6,634,800,000 1,113,746 21,606,672 0.33%

2001 279,900,000e6,787,575,000 1,611,662 31,266,243 0.46%

2002 279,200,000e6,770,600,000 1,052,272 20,414,077 0.30%

2003 279,500,000e6,777,875,000 1,591,181 30,868,911 0.46%

2004 284,800,000e6,906,400,000 1,787,901 34,685,279 0.50%

2005 290,800,000e7,051,900,000 2,415,056 46,852,086 0.66%

2006 289,500,000e7,020,375,000 3,071,994 59,596,684 0.85%

2007 285,100,000e6,913,675,000 3,872,271 75,122,057 1.09%

2008 285,100,000e6,913,675,000 5,538,011 107,437,413 1.55%

2009 283,700,000e6,879,725,000 6,173,895f119,773,556f1.74%

2010 285,400,000e6,920,950,000 6,882,791f133,526,154f1.93%

2011 285,100,000e6,913,675,000 7,673,085g148,857,849g2.15%

a Estimated egg production assumes 24.25 dozen eggs per layer per year.

b

Source: USDA-Economic Research Service (ERS) (2010).

c Estimated organic egg production assumes 19.4 dozen eggs per organic layer per year.

d

Source: Ibarburu and Bell (2010).

e

Source: Ibarburu and Bell (2012).

f

Source: 2009–2010 organic laying hen counts based on an average annual rate of growth between 2008 and 2011.

g

Source: 2011 organic laying hen counts and egg production based on data obtained by USDA-AMS from 36 

organic certifying agencies.
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-3

Figure 2-1. Trends in Certified Organic Layer Hen Counts, 2000–2011

Sources: USDA-ERS (2010) (2000–2008 counts); estimates of average rate of annual growth between 2008 and 

2011 (2009 and 2010 counts); and data obtained by AMS from 36 organic certifying agencies (2011 counts).

Steady-State Broiler Inventory

Annual organic broiler production data were available only for years 2008 and 2011; however, 

the steady-state broiler inventory from 2000 through 2008 was available. The inventory of broilers in 

2011 was estimated based on total broiler production data obtained from AMS assuming five flocks per 

year. Inventories of broilers in 2009 and 2010 were estimated based on an average annual rate of growth 

between 2008 and 2011. Table 2-2 shows that although the steady-state inventory of broilers is increasing 

over time, the growth is not monotonic2. This variation over time is depicted in Figure 2-2.

A more careful examination of the data shows that the reason for the sharp increase in inventory 

in 2005 is increases in organic broiler inventories in two states: California and Pennsylvania. Steady-state 

inventory data collected in 2004 showed 328,820 organic broilers in California and 660,563 in 

Pennsylvania. In 2005, these inventory figures jumped to 3,567,425 in California and 2,880,800 in 

Pennsylvania. One possible explanation could be that a few large producers enter the organic market only 

to exit once they determined such a permanent change was not economically feasible (Greene, 2012). The 

25% increase in organic broiler inventory from 2007 to 2008 was primarily due to an increase in steady-

 

2 Monotonic growth refers to a situation where the variable under consideration always moves in one direction (i.e., 

it is always increasing or always decreasing). 

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Total Organic Layer Hens
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-4 Phase 1 Report

Table 2-2. U.S. Organic Broiler Steady-State Inventory, 2000–2011

Year Total Certified Organic Broilers (birds)a

2000 1,924,807

2001 3,286,456

2002 3,032,189

2003 6,301,014

2004 4,169,104

2005 10,405,879

2006 5,529,933

2007 7,436,321

2008 9,015,984

2009 8,483,998b

2010 7,983,402b

2011 6,009,874c

a

Source: USDA-ERS (2010).

b

Secondary data were not available. Estimates are based on an average annual rate of growth between 2008 and 

2011.

c Based on information collected by AMS from 36 USDA-accredited state and private organic certifiers, assuming 

five flocks per year.

Figure 2-2. Trends in Certified Organic Broiler Steady-State Inventory, 

2000–2011

Sources: USDA-ERS (2010), USDA-AMS from 36 USDA-accredited state and private organic certifiers (2011), and 

average annual rate of growth between 2008 and 2011 (2009 and 2010).

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Steady-State Broiler Inventory
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-5

state organic broiler inventory in Nebraska. The period after 2008 is characterized by a rather substantial 

decrease in the steady-state number of broiler chickens. The data for 2011 indicate that the certified 

organic inventory of broiler chickens dropped by about 3 million birds relative to 2008. This trend is 

generally in line with the economic decline post-2008 that engulfed the conventional broiler industry as 

well.

Steady-State Turkey Inventory

Similar to organic broiler production, annual organic turkey production data were available only 

for years 2008 and 2011; however, the steady-state turkey inventory from 2000 through 2008 was 

available. The inventory of turkeys in 2011 was estimated based on total organic turkey production data 

obtained from AMS assuming three and a half flocks per year. The inventories of organic turkeys in 2009 

and 2010 were estimated based on an average annual rate of growth between 2008 and 2011. Table 2-3 

shows that although the steady-state inventory of turkeys is increasing over time, it is not monotonically 

increasing. This variation over time is depicted in Figure 2-3.

Table 2-3. U.S. Organic Turkey Steady-State Inventory, 2000–2011

Year Total Certified Organic Turkeys (birds)b

2000 9,138

2001 98,653

2002 305,605

2003 217,353

2004 164,292

2005 144,086

2006 165,610

2007 315,754

2008 398,531

2009 329,113b

2010 271,787 b

2011 224,446 c

a Source: USDA-ERS (2010).

b

Secondary data were not available. Estimates are based on an average annual rate of growth between 2008 and 

2011.

c Based on information collected by USDA-AMS from 36 USDA-accredited state and private organic certifiers, 

assuming 3.5 flocks per year.
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-6 Phase 1 Report

Figure 2-3. Trends in Certified Organic Turkey Steady-State Inventory, 2000–

2011

Sources: USDA-ERS (2010) (2000–2008), USDA-AMS from 36 USDA-accredited state and private organic 

certifiers (2011), and average annual rate of growth between 2008 and 2011 (2009 and 2010).

2.1.2 Dollar Value

We obtained first-receiver price information for conventional and organic poultry and eggs from 

USDA-AMS’s Poultry Programs division. According to the report’s documentation, these prices are 

simple averages of the weekly prices reported in AMS’s Poultry Market News and Analysis.

Generally, prices for organic poultry products are substantially higher than prices for 

conventional poultry and can be as much as five times the price for conventional products. In this 

subsection, we describe the prices for first-receiver organic poultry relative to conventional poultry and 

how these price differences have changed over time. We show the estimated the total dollar value of 

organic poultry and egg production for years 2008 and 2011 relative to total poultry and egg production.

Eggs

Since 2004, first-receiver prices for organic eggs have remained fairly consistent, ranging from a 

minimum of $2.25 to a maximum of $2.78 per dozen, with a discrete jump of about 50 cents per dozen in 

June 2008, as shown in Figure 2-4. The origins of this price jump are most likely tied to the organic feed 

prices for critical crops, notably corn and soybeans. As seen from Figure 2-5, the spike in the organic 

eggs prices coincides fairly well with the spike in the organic corn and especially organic soybean prices.

The prices of organic eggs have varied from being one-and-a-half times the first-receiver price of 

conventional eggs to roughly five times the price. This variation, however, has more to do with variation 

in the prices for conventional eggs than variation in the prices for organic eggs. Refer to Appendix B for a 

list of monthly first-receiver prices for organic and conventional eggs from 2004 through 2011.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Steady-State Organic Turkey Inventory
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-7

Figure 2-4. Prices for Conventional and Organic Eggs at First Receiver, per 

Dozen, January 2004–December 2011

Sources: USDA-AMS (2012a) (for conventional prices) and provided by Lawrence Haller, Chief Economist, 

USDA-AMS Poultry Programs (for organic prices).

Using egg production data collected by USDA-NASS (2010) and data obtained by USDA-AMS 

(2011) and a simple average of the monthly prices per year for eggs, Table 2-4 summarizes the annual 

value of organic egg production for 2008 and 2011. For comparison, we also summarize the annual value 

of total egg production for those years. In 2011, the value of organic eggs was an estimated 5.40% of the 

total value of eggs in the United States, which represents an increase of 2.9 percentage points over 2008. 

Refer to Appendix B, Table B-1 for a complete list of organic and conventional egg prices from 2004 to 

2011.

Whole Chickens, Ready to Cook

According to market price data obtained by USDA-AMS, since 2004, the first-receiver prices for 

organic broilers have ranged from a minimum of $2.17 per pound to $2.48 per pound with very little 

month-to-month variation except for the discrete jump of approximately 25 cents in June 2008, most

likely caused by the spike in organic feed prices. Prices for organic broilers have remained substantially 

higher than prices for conventionally produced broilers, as shown in Figure 2-6. The first-receiver price 

premium for organic broilers is roughly one-and-a-half times the price of conventional broilers. As with 

eggs, much of the variation in the difference in prices between organic and conventional broilers has more 

 $-

 $0.50

 $1.00

 $1.50

 $2.00

 $2.50

 $3.00

Conventional

Organic
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-8 Phase 1 Report

Figure 2-5. Upper Midwest Organic Corn and Soybean Prices, $ per Bushel, 

January 2007–December 2011

Source: USDA-AMS, Upper Midwest Organic Grain & Feedstuffs Report.

Note: Gaps is the series indicate data were unavailable in the USDA-AMS report.

Table 2-4. U.S. Egg Production Value, Total and Organic, 2008 and 2011a

Year

Eggs (000s, 

dozen)a

Price,

b

$/doz

Total 

Value, 000s

Organic 

Eggs (000s, 

dozen)c

Organic 

Price,

d

$/doz 

Total 

Organic 

Value, 000s

Percentage

Organic to 

Total Value

2008 6,913,675 $1.203 $8,317,232 79,035 $2.606 $205,985 2.48%

2011 6,913,675 $1.072 $7,412,560 148,858 $2.690 $400,366 5.40%

a Total estimated dozens of eggs are based on total layer counts from USDA-NASS (2010). Laying hen production 

assumes 24.25 dozen eggs per layer per year.

b

Source: USDA-AMS, Poultry Market News and Analysis. Prices are simple averages of monthly prices.

c Total estimated dozens of organic eggs are based on laying hen counts published by USDA-NASS (2012a and 

2012b) assuming 19.4 dozens of eggs per laying hen and egg handlers data obtained by USDA-AMS from 36 

USDA-accredited state and private organic certifiers (2011).

d

Source: Prices based on simple averages of monthly prices provided by Lawrence Haller, Chief Economist, 

USDA-AMS, Poultry Programs.

to do with month-to-month fluctuations in prices for conventional broilers than with organic broilers. 

Refer to Appendix B, Table B-2 for a list of monthly first-receiver prices for organic and conventional 

broilers from 2004 to 2011.

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N

2007 2008 2009 2010 2011

Organic Corn

(Feed

Yellow)

Soybeans

(Feed Grade)
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-9

Figure 2-6. Prices per Pound for Conventional and Organic Broilers at First 

Receiver, Whole Ready-to-Cook, 2004–2011

Source: USDA-AMS (2012b) (for conventional prices) and provided by Lawrence Haller, Chief Economist, USDAAMS Poultry Programs (for organic prices).

Using organic broiler production data collected by USDA-NASS (2010) and data obtained by 

USDA-AMS (2011) and a simple average of the monthly prices for chicken, Table 2-5 summarizes the 

annual value of organic broiler production for 2008 and 2011. For comparison, we also summarize the 

annual value of total broiler production for those years. We estimate that in 2011 the total value of 

organic broiler production represented 0.75% of the total value of broilers. In line with the reduction in 

steady-state organic broiler inventory after 2008, the aggregate production declined as well, and the 

organic segment lost its share as the percentage of the total value of the U.S. broiler market by an 

estimated 0.06 percentage points.

Whole Turkeys, Ready to Cook

Data available on the first-receiver prices of organic turkey were limited to weekly prices per 

pound for whole, fresh, and frozen certified organic turkey for an 11-week period from October 2011 

through December 2011. As shown in Table 2-6, prices for frozen whole young organic turkeys ranged 

from a low of $2.40 per pound to a high of $2.53. Prices for fresh whole young organic turkeys ranged 

from a low of $2.89 to a high of $3.16. By comparison, the average price for an 8- to 16-pound (turkey) 

hen ranged from $1.11 to $1.35 per pound over the same time period.

 $-

 $0.50

 $1.00

 $1.50

 $2.00

 $2.50

 $3.00

Jan-04

Jul-04

Jan-05

Jul-05

Jan-06

Jul-06

Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

Jul-11

Conventional

Organic
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-10 Phase 1 Report

Table 2-5. Value of U.S. Broiler Production, Total and Organic, 2008 and 2011a

Year Total lbs (000)

a

Price, 

$/lbb

Total Value

(000)

Organic lbs

(000)

c

Organic

Price,

$/lbd

Organic 

Value (000)

% Organic 

to Total 

Value

2008 34,699,985 $0.798 $27,693,234 95,278 $2.365 $225,371 0.81%

2011 37,176,000 $0.792 $29,431,728 93,574 $2.350 $219,898 0.75%

a Sources: USDA Office of the Chief Economist (OCE) (2012), an average weight of 5.27/lbs per bird and dressing 

percentage of 73.1 and estimated total broiler production in 2011.

b

Source: USDA-AMS, Poultry Market News and Analysis. Prices are simple averages of monthly prices.

c Total estimated ready-to-eat organic chicken based on organic broiler numbers from USDA-NASS (2010) and data 

obtained by USDA-AMS (2011), an average weight of 4.5 pounds per bird and a dressing percentage of 69%.

d

Source: Prices based on simple averages of monthly prices provided by Lawrence Haller, Chief Economist, 

USDA-AMS, Poultry Programs.

Using organic turkey production and value data collected by USDA-NASS (2010) and production 

data obtained by USDA-AMS (2011), we summarize in Table 2-7 the annual value of organic turkey 

production for 2008 and 2011. Prices for organic turkey were not available prior to October 2011. For the 

value of organic turkeys produced in 2008, we relied on data published by USDA-NASS from the 

Organic Production Survey. For comparison, we also summarize the annual value of total turkey 

production for those years using production and price data published in USDA’s World Agricultural 

Supply and Demand Estimates. In 2011, we estimate that the value of organic turkey production 

represents 0.75% of the total value of turkeys in the United States.

Table 2-6. Fresh and Frozen Turkey Average Prices per Pound, Organic and All, 

October 2011–December 2011

Month Week

Fresh Certified 

Organic $/lba

Fresh Overall

$/lbb

Frozen Certified 

Organic $/lba

Frozen Overall 

$/lbb

October 2011 3 $3.16 $1.24 $2.40 $1.13

October 2011 4 $3.16 $1.27 $2.40 $1.18

October 2011 5 $3.02 $1.29 $2.40 $1.15

November 2011 1 $3.02 $1.29 $2.40 $1.14

November 2011 2 $2.89 $1.31 $2.46 $1.11

November 2011 3 $2.89 $1.35 $2.46 $1.13

November 2011 4 $2.89 $1.29 $2.46 $1.12

December 2011 1 $2.89 $1.33 $2.53 $1.12

December 2011 2 $2.89 $1.33 $2.53 $1.08

December 2011 3 $2.89 $1.12 $2.53 $1.02

December 2011 4 $2.89 $1.11 $2.53 $1.00

a

Source: USDA-AMS. Poultry Market News and Analysis Reports, October 2011 through December 2011.

b Source: USDA-AMS (2012c) based on average weekly sale prices for 8- to 16-pound hens beginning October 21, 

2011, and ending December 30, 2011. The overall price represents a composite of organic, natural, and 

conventional turkeys.
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-11

Table 2-7. Value of U.S. Turkey Production, Total and Organic, 2008 and 2011a

Year

Total lbs 

(thous)a$/lba

Total Value 

(thous)

Organic lbs 

(thous)b

Organic 

$/lbc

Organic 

Value 

(thous)

% Organic 

to Total 

Value

2008 6,246,000 $0.875 $5,465,250 6,672 n/a $8,675d

0.16%

2011 5,790,000 $1.020 $5,905,800 16,415 $2.713 $44,538 0.75%

a Source: USDA-OCE (2012), assuming an average weight of 27.41/lbs per bird and dressing percentage of 76.2 and 

estimated total turkey production in 2011.

b

Sources: Total estimated ready-to-eat organic turkey from USDA-NASS Organic Production Survey (2010) and 

data obtained by USDA-AMS (2011), assuming an average weight of 27.41 pounds per bird and a dressing 

percentage of 76.2%.

c

Source: USDA-AMS, Poultry Market News and Analysis Report. Prices based on simple averages of monthly 

prices available from October 2011 through December 2011. Prices were not available for 2008.

d

Source: USDA-NASS (2010). Organic Production Survey.

2.2 Number of Operations, Geographic Areas, and Range of Scale of 

Production

Production of organic poultry and eggs is quite small and localized relative to total poultry and 

eggs production. We obtained data from USDA on the number of operations producing certified organic 

poultry and the scale of production of those operations. We also examined data from NASS on the 

distribution of organic poultry and egg production by state in 2008. In this section, we discuss the number 

of organic poultry and egg operations, where they are located, and the size distribution of these 

operations.

2.2.1 Number of Organic Poultry and Egg Operations

To get an estimate of the number of certified organic poultry and egg operations in the United 

States, we used information obtained by USDA-AMS on the number of operations certified by organic 

certifying agencies and the total organic production those certifications represent. In Table 2-8, we show 

the distribution of the average size of operations for egg producers (expressed as number of layer hens), 

pullets, broilers, and turkeys. Producers are contract operators of firms that produce organic products. In 

contrast, operations are the certified entities through which producers contract for the sale of their 

products. The nature of this relationship means that each operation can have multiple producers.

Table 2-8. Number of Certified Organic Poultry and Egg Producers and 

Operations, 2011

Stock or Species Number of Birds Number of Producers Number of Operations

Layer hens (inventory) 7,673,085 580 499

Pullets 4,785,493 138 112

Broilers 30,049,372 288 192

Turkeys 785,561 111 103

Source: Based on information collected by USDA-AMS from 36 USDA-accredited state and private organic 

certifiers.
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-12 Phase 1 Report

2.2.2 Geographic Areas of Production

Table 2-9 shows that, in 2008, producers in three states—California, Pennsylvania, and Iowa—

produced 82% of all organic broilers. These same states were also the top three organic egg-producing 

states, but they accounted for only 39% of organic egg production. The majority of organic turkey

production (65%) was in California, Pennsylvania, and Wisconsin. The regional distribution of organic 

producers for the period after 2008 was not available and could not be reliably estimated.

Table 2-9. Top 3 States in Organic Poultry and Egg Production, 2008

Rank Eggs Broilers Turkeys

1 California (18%) California (67%) California (49%)

2 Pennsylvania (15%) Pennsylvania (8%) Pennsylvania (14%)

3 Iowa (6%) Iowa (7%) Wisconsin (2%)

Total Production 

Represented

39% 82% 65%

Source: USDA, National Agricultural Statistics Service, 2008 Organic Production Survey.

The geographic areas in which organic eggs, broilers, and turkeys are produced, by level of 

production, are shown in Figure 2-7, Figure 2-8, and Figure 2-9, respectively.

Figure 2-7. U.S. Organic Egg Production, Laying Hen Counts, 2008

Source: USDA, National Agricultural Statistics Service, 2008 Organic Production Survey.
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-13

Figure 2-8. U.S. Organic Broiler Production, 2008

Source: USDA, National Agricultural Statistics Service, 2008 Organic Production Survey.

Figure 2-9. U.S. Organic Turkey Production, 2008

Source: USDA, National Agricultural Statistics Service, 2008 Organic Production Survey.
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-14 Phase 1 Report

2.2.3 Range of Scale of Organic Poultry and Eggs Production

Specific data on the size distribution of operations producing organic poultry were not readily 

available through secondary sources. To get an idea of the size distribution of producers, we averaged the 

number of birds across the number of producers for each certifying agency. The results are shown in 

Table 2-10 and indicate a substantial size difference, in terms of number of birds, between the smallest 

producers and largest producers for all stock and species types.

Table 2-10. Average Sizes of Certified Organic Poultry and Egg Producers by 

Certifier, 2011

Stock or Species

Smallest Average 

Producer, No. of Birds

Largest Average 

Producer, No. of Birds

Overall Average 

Producer, No. of Birds

Layer hens 20 237,779 17,023

Pullets 38 380,000 50,174

Broilers 70 673,535 61,408

Turkeys 10 47,981 5,522

Source: Based on information collected from 36 USDA-accredited state and private organic certifiers.

Of the 36 agencies involved with certifying organic poultry producers that also provided data to 

USDA, five organic certifying agencies certified 99% (or 29,856,555 birds) of all organic broiler 

production. The distribution of egg producers by certifying agency was more evenly spread, with the top 

five certifying agencies certifying approximately 60% of all certified organic layer hens. Two certifying 

agencies certified approximately 76% of all organic turkeys.

2.3 Types of Marketing Methods

Marketing methods used to bring organic products to the marketplace are different than those 

used in the conventional poultry market. Whereas the conventional poultry industry became a symbol of 

corporate agriculture where large, frequently publicly traded corporations contract the production of live 

animals with small independent farmers or produce poultry and eggs on company-owned farms, the 

organic poultry sector, with some exceptions, is typically much smaller in scale and independent, with 

traces of vertical integration via marketing or production contracts. Organic food products primarily enter 

the supply chain by way of handlers. These handlers negotiate production or marketing contracts with 

producers (if contracts are present) or acquire organic goods through the spot market. In some cases, 

producers enter into vertical contracting arrangements with other larger operations.

To get their product to the market, organic poultry producers rely predominantly on the services 

of organic handlers. Handlers procure products from farmers and suppliers, such as grower cooperatives, 

and then process and/or package the products for retail sale or further processing (e.g., ingredients for 

value-added food products). According to a report by USDA-ERS (Dimitri and Oberholtzer, 2008), 

organic handlers procure nearly all organic products from the farm and then process and repackage the 

products that then are sold to retailers, other handlers, institutions, or directly to the end consumer.
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-15

In 2007, ERS conducted Nationwide Surveys of Organic Manufacturers, Processors, and 

Distributors to determine, among many things, the contracting and procurement processes by which 

organic products are purchased. The survey results represent 44% of eligible organic handling facilities, 

which were identified by contacting domestic certifying agents. For context, the percentages reported in 

the results of this survey reflect the proportion of organic handling facilities responding to the 

characteristic. Data were reported separately for eggs and poultry, although the percentages presented 

may not be mutually exclusive. In other words, organic handlers responding to the survey may handle 

both eggs and poultry along with other organic products. Although 1,408 handlers responded to this

survey, ERS reported that between 4 and 35 handlers of those responding were involved with organic 

poultry and egg procurement.

Handlers of poultry and egg products were asked about the entities from which they procure 

organic products. Organic egg handlers indicated they primarily procure products from growers (80%), 

marketing or growers’ cooperatives (40%), and manufacturers/wholesalers (36%) (Table 2-11).

3 Only 9%

of organic egg handlers responded having procured eggs from agents or brokers. Organic poultry handlers 

indicated they primarily procure products from manufacturers/wholesalers (69%), growers (46%), and 

marketing or growers’ cooperatives (23%). Only 15% of organic poultry handlers responded having 

procured poultry from agents or brokers.

Table 2-11. Types of Suppliers of Organic Poultry and Eggs, 2007

Types of Suppliers Poultry Handlers Egg Handlers

Growers 46% 80%

Marketing or growers’ cooperative 23% 40%

Manufacturer/wholesaler 69% 36%

Agents/brokers 15% 9%

Source: USDA, ERS, 2007 Nationwide Surveys of Organic Manufacturers, Processors, and Distributors, Poultry and 

Eggs.

In this subsection, we summarize relevant sections of the results from this survey, including 

procurement methods used by handlers, methods of price determination for organic poultry and egg 

products, and methods of valuation or other contract clauses used in procuring organic poultry and egg 

products.

Procurement Methods Used by Handlers

According to the ERS organic handlers survey, 43% of handlers of poultry products and 55% of 

handlers of egg products indicated that they procured products via written contracts. As shown in 

Table 2-12, among egg handlers, 64% report procuring eggs via the spot market, which is substantially 

more than the percentage of poultry handlers who indicated they use the spot market to procure poultry 

(43%).

 

3 Note that in all questions, respondents could indicate multiple response items; therefore, percentages do not sum to 

100%.
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-16 Phase 1 Report

Table 2-12. Methods Used to Procure Organic Poultry and Eggs, 2007

Types of Sales Arrangements Poultry Handlers Egg Handlers

Formal contract (written) 43% 55%

Informal contract (e.g., handshake or verbal) 46% 36%

Spot market 43% 64%

Source: USDA, ERS, 2007 Nationwide Surveys of Organic Manufacturers, Processors, and Distributors, Poultry and 

Eggs.

Methods of Price Determination for Organic Products

As shown in Table 2-13, most organic poultry handlers negotiate flat prices (43%) or determine 

the price paid to producers using the market price (29%). Organic egg handlers primarily negotiate prices 

using a cost-plus mechanism (40%), although contracts with a flat price (20%), fixed price plus a quality 

premium (20%), and other mechanisms (20%) were also used.

Table 2-13. Compensation Terms Used Most Often in Handlers’ Contracts for 

Organic Poultry and Eggs, 2007

Compensation Term Used Most Often Poultry Handlers Eggs Handlers

Flat price 43% 20%

Market price for organic products 29% 0%

Fixed price plus a quality premium 7% 20%

Production costs plus a markup 0% 40%

Negotiated price at time of transaction 14% 0%

Other method 0% 20%

Source: USDA, ERS, 2007 Nationwide Surveys of Organic Manufacturers, Processors, and Distributors, Poultry and 

Eggs.

Methods of Valuation and Other Contract Clauses

As summarized in Table 2-14, handlers of organic poultry and egg products indicated several 

measurements of quality used to determine product worthiness. Quality measurements primarily used 

include observing samples (57% and 60% of poultry and egg handlers, respectively), USDA grading 

standards (36% and 80% of poultry and egg handlers, respectively), and testing samples (43% and 60% of 

poultry and egg handlers, respectively). Twenty-nine percent of poultry handlers indicated they used 

third-party certifications as a measurement of quality.
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-17

Table 2-14. Method of Quality Measurement for Pricing Organic Poultry and 

Eggs, 2007

Method of Quality Measurement Poultry Handlers Eggs Handlers

Observing samples 57% 60%

Testing samples 43% 60%

Third-party certification 29% 0%

USDA grading standards 36% 80%

Price does not depend on quality 7% 0%

Source: USDA, ERS, 2007 Nationwide Surveys of Organic Manufacturers, Processors, and Distributors, Poultry and 

Eggs.

Handlers of organic poultry products reported they use several standard contract clauses when 

procuring products, as reported in Table 2-15. For example, 14% of poultry handlers but 60% of egg 

handlers use automatic renewal clauses in their contracts. Eighty-six percent of poultry handlers and 60% 

of eggs handlers require verification of organic certification. The fact that 40% of layer contracts for 

organic eggs did not require an organic certificate is somewhat surprising but could be explained by the 

fact that egg handlers do not need to request organic certificates from producers because they themselves 

hold the certification on behalf of the producers. Large percentage of both poultry and egg handlers 

require minimum quality standards to be met, 64% and 60%, respectively. Interestingly, 64% of poultry 

handlers but only 20% of egg handlers reject deliveries that do not meet specifications.

4

Table 2-15. Standard Contract Clauses for Organic Poultry and Eggs, 2007

Standard Contract Clauses Poultry Handlers Egg Handlers

Automatic renewal 14% 60%

Verification of organic certification 86% 60%

Minimum quality standards 64% 60%

Best management practices 21% 20%

Reject deliveries that do not meet specs 64% 20%

Other actions if contract specs not met 50% 60%

Place of delivery 57% 40%

Date of delivery 36% 40%

Exclusive supply 0% 20%

Payment upon delivery of product 50% 20%

Payment a specified number of days after 

harvest, delivery date, or invoice

36% 60%

Source: USDA, ERS, 2007 Nationwide Surveys of Organic Manufacturers, Processors, and Distributors, Poultry and 

Eggs.

 

4 The reliability of these results may be questionable because the number of responses is sometimes very low (five 

responses total in these categories).
Overview of Organic Economic Impact Analysis of Proposed

Poultry and Egg Industry Regulations for Living Conditions for Organic Poultry

2-18 Phase 1 Report

Table 2-15 also shows that handlers of organic poultry products typically stipulate payment for 

products to take place upon product delivery (50%), although suppliers of organic eggs are typically paid 

a specified number of days after harvest, delivery date, or invoice (60%). Table 2-16 shows the contract 

lengths used by handlers of organic poultry and egg products. Handlers of organic egg products indicated

that they typically negotiate multiyear contracts with suppliers (80%), although the majority (57%) of 

handlers for organic poultry products negotiate yearly contracts.

Table 2-16. Contract Length for Organic Poultry and Eggs, 2007

Contract Length Poultry Handlers Egg Handlers

Seasonal 14% 0%

Yearly 57% 20%

Multiyear 7% 80%

Other 14% 0%

Time not specified 7% 0%

Source: USDA, ERS, 2007 Nationwide Surveys of Organic Manufacturers, Processors, and Distributors, Poultry and 

Eggs.

2.4 Limitations and Qualifications of the Data

Some data on organic poultry and egg production counts, scale, value, and regional distribution

were not available. Also, after closely examining available information, we found that some of the data 

contained irregularities that may make it difficult to accurately estimate the costs to comply with a 

regulatory change.

We encountered the following information gaps:

 2009 and 2010 organic inventory or production: We were unable to find inventory of poultry 

or production statistics for these 2 years. Also, we were not able to obtain production 

estimates for years prior to 2008 although inventory numbers were available. The weakness 

with relying on inventory numbers as a proxy for production is that their reliability is entirely 

dependent on the timing of data collection. Should a producer be in between flocks, for 

instance, their production will not be included if it is estimated based on inventory at one 

point in time.

 Total table egg production: We were unable to find a government publication with yearly 

table egg production. We relied on estimates from an extension publication; however, these 

estimates are rounded to the nearest 100,000 eggs. 

 Turkey prices: Organic turkey prices were available for only 11 weeks.

 Size distribution of producers: We were unable to find the size distribution of organic poultry 

and egg producers to determine the range of scale of production and, therefore, relied on 

extrapolations from the data from 36 USDA-accredited organic certifiers collected by USDAAMS.

 Regional distribution of organic production is not available for the period after 2008.
Economic Impact Analysis of Proposed Regulations Overview of Organic

for Living Conditions for Organic Poultry Poultry and Egg Industry

Phase 1 Report 2-19

Additionally, some of information we evaluated and summarized in this report contained 

irregularities that may be problematic in determining a reliable economic model from which to estimate 

regulatory impacts. The following is a list of data irregularities:

 Both organic eggs and broiler prices exhibit a discrete jump in prices in June 2008, which 

might not be entirely the result of market conditions (in particular, the increase in organic 

feed prices) but also caused by a change in data collection methodology.

 Procurement metrics: Between 4 and 35 handlers of organic poultry and eggs responded to 

ERS’s Nationwide Surveys of Organic Manufacturers, Processors, and Distributors. It is 

unclear the percentage of total organic handlers of organic poultry and eggs this range 

represents.

Phase 1 Report R-1

References

Dimitri, C. and L. Oberholtzer. 2008. The U.S. Organic Handling Sector in 2004: Baseline Findings of 

the Nationwide Survey of Organic Manufacturers, Processors, and Distributors. Economic 

Information Bulletin Number 36. Washington, DC: U.S. Department of Agriculture, Economic 

Research Service. http://www.ers.usda.gov/Publications/EIB36/EIB36.pdf.

Greene, C., USDA-ERS. January 30, 2012. Phone communication with Melanie Ball, RTI International.

Ibarburu, M. and D. Bell. 2010. “Flock Statistics March 2010.” U.S. Egg Industry Statistical Report. 

Ames, IA: Iowa State University, Department of Animal Science, Egg Industry Center.

Ibarburu, M. and D. Bell. 2012. “Flock Statistics January 2012.” U.S. Egg Industry Statistical Report. 

Ames, IA: Iowa State University, Department of Animal Science, Egg Industry Center.

U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS). October 2011–

December 2011. Poultry Market News and Analysis Reports. Washington, DC: USDA. 

http://www.marketnews.usda.gov/portal/py.

U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS). 2012a. Shell Eggs: 

Weekly Combined Regional Shell Eggs. January 2004–December 2011. Washington, DC: USDA.

http://www.marketnews.usda.gov/portal/py.

U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS). 2012b. Broilers/Fryers: 

Weekly Composite Weighted Average Prices for RTC B/F. January 2004–December 2011.

Washington, DC: USDA. http://www.marketnews.usda.gov/portal/py.

U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS). 2012c. Turkeys: Weekly 

Composite Weighted Average Prices for RTC 8-16 lb Hens. January 2004–December 2011.

Washington, DC: USDA. http://www.marketnews.usda.gov/portal/py.

U.S. Department of Agriculture (USDA), Economic Research Service (ERS). 2007. Nationwide Surveys 

of Organic Manufacturers, Processors, and Distributors, Poultry and Eggs, Washington, DC: 

USDA.

U.S. Department of Agriculture (USDA), Economic Research Service (ERS). 2010. Organic Agricultural 

Production. Data Product: Table 5. Certified organic livestock. Data on cows, pigs, sheep, 

chickens, and other poultry, by State, 1997 and 2000-2008. Washington, DC: USDA. 

www.ers.usda.gov/data/organic/.

U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS). 2010. Organic 

Production Survey—2008. Data Product: Table 10. Organic Livestock and Poultry on Certified 

and Exempt Organic Farms: 2008. Washington, DC: USDA. 

http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Organics/index.php.
Economic Impact Analysis of Proposed

References Regulations for Living Conditions for Organic Poultry

R-2 Phase 1 Report

U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS). 2012a. 2010 

Agricultural Statistics Annual. Washington, DC: USDA 

http://www.nass.usda.gov/Publications/Ag_Statistics/2010.

U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS). 2012b. 

“Chickens and Eggs—Average Number of ALL Layers During the Month.” Washington, DC: 

USDA. http://www.nass.usda.gov/Publications/Todays_Reports/reports/ckeg0112.pdf.

U.S. Department of Agriculture (USDA), Office of the Chief Economist (OCE). February 9, 2012. World 

Agricultural Supply and Demand Estimates. Washington, DC: USDA.

http://www.usda.gov/oce/commodity/wasde/latest.pdf.
Appendix A: Regulatory Options 2 and 3, 5-Year 

Implementation Period

Phase 1 Report

A-1

Table A-1. Regulatory Option 2, 5-Year Implementation Period

Layers Pullets Broilers Turkeys

Indoor housing

Stocking ratesa

Single-level house 1.5 square feet per bird N/A Maximum 7.0 lbs per square 

foot

Maximum 7.5 lbs per square 

foot

Raised roost type house 1.2 square feet per bird N/A N/A N/A

Multitier houses 1.0 square feet per bird N/A N/A N/A

Ventilation Ammonia < 25 ppm Ammonia < 25 ppm Ammonia < 25 ppm Ammonia < 25 ppm

Perches 6′′ per bird N/A N/A N/A

Scratch areas, dust baths Yes Yes Yes Yes

Houses with slats Minimum 15% of floor space Minimum 15% of floor space N/A N/A

Exit doors 16′′ W x 14′′ H N/A 24′′ W x 18′′ H 60′′ x 40′′ H

Natural light Yes Yes Yes Yes

Artificial light Maximum 16 hours Maximum 16 hours Maximum 16 hours Maximum 16 hours

Outdoor access

Ageb N/A 16 weeks 4 weeks 12 weeks

Direct sun Yes Yes Yes Yes

Solid roofs Allowed Allowed Allowed Allowed

Stocking rates

Percentage of flock 5%, minimum N/A 5%, minimum N/A

Minimum space 2.0 square feet per bird N/A 2.0 square feet per bird 7.5 lbs per square foot

Scratch areas, dust baths Soil/suitable substrate Soil/suitable substrate Soil/suitable substrate Soil/suitable substrate

Mobile pen units Minimum 2.0 square feet per 

bird

N/A Minimum 2.0 square feet per 

bird

N/A

a

In Option 3 stocking rates, particularly for layers, are the same regardless of housing type.

b Age of outdoor access when temperatures exceed 50° Fahrenheit.
Appendix A:

Regulatory Options 2 and 3

Economic Impact Analysis of Proposed Regulations

for Living Conditions for Organic Poultry

A-2 Phase 1 Report

Table A-2. Regulatory Option 3, 5-Year Implementation Period

Layers Pullets Broilers Turkeys

Indoor housing

Stocking ratesa2.0 square feet per bird (based 

on floor perimeter of building)

3.0 lbs per square foot Maximum 5.0 lbs per square 

foot

Maximum 5.3 lbs per square 

foot

Ventilation Ammonia < 25 ppm Ammonia < 25 ppm Ammonia < 25 ppm Ammonia < 25 ppm

Perches 6′′ per bird, min. 35 cm 

elevation

at 4 weeks of age N/A N/A

Scratch areas, dust baths Minimum 30% of floor space Minimum 30% of floor space Minimum 30% of floor space Minimum 30% of floor space

Houses with slats Allowed Allowed Allowed Allowed

Exit doors Min 6′/1000 birds x 14′′ H Min 6′/1000 birds x 14′′ H Min 6′/1000 birds x 14′′ H Min 6′/1000 birds x 2.5’ H

Natural light Yes Yes Yes Yes

Artificial light Max 16 hours Max 16 hours Max 16 hours Max 16 hours

Outdoor access

Ageb N/A 16 weeks 4 weeks 12 weeks

Direct sun Yes Yes Yes Yes

Solid roofs No No No No

Shades in warm weather Yes Yes Yes Yes

Stocking rates Minimum 2.0 square feet per 

bird

N/A Maximum 5.0 lbs per square 

foot

Maximum 3.5 lbs per square 

foot

Scratch areas, dust baths In soil In soil In soil In soil

Vegetation cover 50%, year round 50%, year round 50%, year round 50%, year round

Mobile pen units Minimum 2.0 square feet per 

bird

N/A Minimum 2.0 square feet per 

bird

N/A

a

In Option 3 stocking rates, particularly for layers, are the same regardless of housing type.

b Age of outdoor access when temperatures exceed 50° Fahrenheit.
Appendix B: Price Tables for Eggs and Broilers

Phase 1 Report B-1

Table B-1. Monthly Average Prices at First Receiver for Eggs, per Dozen, 

Conventional and Organic, January 2004–December 2011

Date

Conventional Price 

per Dozena

Organic Price per 

Dozenb

% Price Premium for 

Organic

January-04 1.04 2.30 221%

February-04 1.02 2.26 222%

March-04 1.14 2.25 197%

April-04 0.83 2.25 271%

May-04 0.65 2.25 346%

June-04 0.69 2.30 333%

July-04 0.63 2.34 371%

August-04 0.58 2.34 403%

September-04 0.54 2.34 433%

October-04 0.51 2.34 459%

November-04 0.62 2.34 377%

December-04 0.68 2.34 344%

January-05 0.53 2.34 442%

February-05 0.62 2.34 377%

March-05 0.53 2.34 442%

April-05 0.46 2.34 509%

May-05 0.48 2.34 488%

June-05 0.43 2.34 544%

July-05 0.55 2.34 425%

August-05 0.64 2.34 366%

September-05 0.67 2.34 349%

October-05 0.69 2.34 339%

November-05 0.73 2.34 321%

December-05 0.71 2.34 330%

January-06 0.72 2.34 326%

February-06 0.52 2.34 454%

(continued)
Appendix B: Price Tables Economic Impact Analysis of Proposed Regulations

for Eggs and Broilers for Living Conditions for Organic Poultry

B-2 Phase 1 Report

Table B-1. Monthly Average Prices at First Receiver for Eggs, per Dozen, 

Conventional and Organic, January 2004–December 2011 (cont’d)

Date

Conventional Price 

per Dozena

Organic Price per 

Dozenb

% Price Premium for 

Organic

March-06 0.69 2.34 341%

April-06 0.62 2.34 375%

May-06 0.43 2.34 547%

June-06 0.60 2.34 391%

July-06 0.44 2.34 538%

August-06 0.62 2.34 379%

September-06 0.60 2.34 391%

October-06 0.58 2.34 402%

November-06 0.87 2.34 270%

December-06 0.91 2.34 257%

January-07 0.91 2.34 256%

February-07 1.01 2.37 234%

March-07 0.93 2.37 255%

April-07 0.84 2.37 282%

May-07 0.91 2.37 262%

June-07 0.76 2.37 314%

July-07 1.04 2.37 228%

August-07 1.03 2.37 231%

September-07 1.22 2.37 194%

October-07 1.07 2.37 222%

November-07 1.31 2.37 181%

December-07 1.53 2.37 155%

January-08 1.51 2.37 157%

February-08 1.48 2.37 160%

March-08 1.55 2.37 153%

April-08 1.24 2.37 191%

May-08 0.97 2.37 244%

(continued)
Economic Impact Analysis of Proposed Regulations Appendix B: Price Tables

for Living Conditions for Organic Poultry for Eggs and Broilers

Phase 1 Report B-3

Table B-1. Monthly Average Prices at First Receiver for Eggs, per Dozen,

Conventional and Organic, January 2004–December 2011 (cont’d)

Date

Conventional Price 

per Dozena

Organic Price per 

Dozenb

% Price Premium for 

Organic

June-08 1.12 2.78 248%

July-08 0.99 2.78 280%

August-08 1.03 2.78 270%

September-08 1.16 2.78 239%

October-08 1.09 2.78 255%

November-08 1.16 2.78 239%

December-08 1.13 2.78 245%

January-09 1.20 2.78 232%

February-09 0.98 2.78 284%

March-09 0.90 2.78 309%

April-09 1.11 2.78 249%

May-09 0.70 2.78 399%

June-09 0.78 2.78 354%

July-09 0.79 2.78 350%

August-09 0.91 2.72 298%

September-09 0.85 2.72 318%

October-09 0.90 2.72 300%

November-09 1.15 2.72 236%

December-09 1.22 2.72 223%

January-10 1.16 2.72 234%

February-10 1.12 2.72 243%

March-10 1.20 2.68 223%

April-10 0.96 2.68 279%

May-10 0.67 2.68 397%

June-10 0.74 2.68 361%

July-10 0.75 2.68 356%

August-10 0.88 2.68 306%

(continued)
Appendix B: Price Tables Economic Impact Analysis of Proposed Regulations

for Eggs and Broilers for Living Conditions for Organic Poultry

B-4 Phase 1 Report

Table B-1. Monthly Average Prices at First Receiver for Eggs, per Dozen, 

Conventional and Organic, January 2004–December 2011 (cont’d)

Date

Conventional Price 

per Dozena

Organic Price per 

Dozenb

% Price Premium for 

Organic

September-10 0.98 2.68 272%

October-10 0.77 2.68 347%

November-10 1.29 2.68 208%

December-10 1.29 2.68 207%

January-11 1.04 2.68 256%

February-11 1.04 2.68 256%

March-11 0.88 2.68 302%

April-11 1.10 2.68 243%

May-11 0.93 2.68 289%

June-11 0.90 2.70 301%

July-11 0.97 2.70 278%

August-11 1.17 2.70 231%

September-11 1.14 2.70 237%

October-11 1.17 2.70 230%

November-11 1.18 2.70 229%

December-11 1.34 2.70 202%

a Prices for large, white eggs

b

Prices for large, brown eggs

Source: USDA Agricultural Marketing Service.
Economic Impact Analysis of Proposed Regulations Appendix B: Price Tables

for Living Conditions for Organic Poultry for Eggs and Broilers

Phase 1 Report B-5

Table B-2. Monthly Average Prices at First Receiver for Whole, Young Chickens, 

per Pound, Conventional and Organic, January 2004–December 2011

Date

Conventional Price 

per pound

Organic Price per 

pound

% Price Premium for 

Organic

January-04 0.70 1.98 282%

February-04 0.75 1.98 263%

March-04 0.76 2.09 275%

April-04 0.76 2.12 279%

May-04 0.80 2.15 268%

June-04 0.82 2.16 264%

July-04 0.81 2.17 268%

August-04 0.75 2.17 289%

September-04 0.70 2.17 310%

October-04 0.69 2.17 314%

November-04 0.68 2.17 319%

December-04 0.68 2.17 319%

January-05 0.72 2.17 301%

February-05 0.71 2.17 306%

March-05 0.73 2.17 297%

April-05 0.73 2.17 297%

May-05 0.72 2.17 301%

June-05 0.72 2.17 301%

July-05 0.72 2.17 301%

August-05 0.64 2.17 339%

September-05 0.67 2.17 324%

October-05 0.69 2.17 314%

November-05 0.73 2.17 297%

December-05 0.71 2.17 306%

January-06 0.63 2.17 344%

February-06 0.63 2.17 344%

March-06 0.62 2.20 354%

(continued)
Appendix B: Price Tables Economic Impact Analysis of Proposed Regulations

for Eggs and Broilers for Living Conditions for Organic Poultry

B-6 Phase 1 Report

Table B-2. Monthly Average Prices at First Receiver for Whole, Young Chickens, 

per Pound, Conventional and Organic, January 2004–December 2011 

(cont’d)

Date

Conventional Price 

per pound

Organic Price per 

pound

% Price Premium for 

Organic

April-06 0.59 2.21 374%

May-06 0.60 2.21 368%

June-06 0.64 2.21 345%

July-06 0.67 2.21 329%

August-06 0.69 2.21 320%

September-06 0.68 2.21 324%

October-06 0.65 2.21 339%

November-06 0.66 2.21 334%

December-06 0.67 2.21 329%

January-07 0.71 2.21 311%

February-07 0.77 2.21 286%

March-07 0.79 2.21 279%

April-07 0.79 2.21 279%

May-07 0.82 2.21 269%

June-07 0.81 2.21 272%

July-07 0.80 2.21 276%

August-07 0.79 2.21 279%

September-07 0.78 2.21 283%

October-07 0.71 2.21 311%

November-07 0.72 2.21 306%

December-07 0.72 2.21 306%

January-08 0.76 2.21 290%

February-08 0.79 2.21 279%

March-08 0.79 2.21 279%

April-08 0.79 2.21 279%

May-08 0.82 2.21 270%

(continued)
Economic Impact Analysis of Proposed Regulations Appendix B: Price Tables

for Living Conditions for Organic Poultry for Eggs and Broilers

Phase 1 Report B-7

Table B-2. Monthly Average Prices at First Receiver for Whole, Young Chickens, 

per Pound, Conventional and Organic, January 2004–December 2011 

(cont’d)

Date

Conventional Price 

per pound

Organic Price per 

pound

% Price Premium for 

Organic

June-08 0.83 2.48 300%

July-08 0.85 2.48 293%

August-08 0.79 2.48 313%

September-08 0.78 2.48 319%

October-08 0.78 2.48 319%

November-08 0.79 2.48 315%

December-08 0.82 2.48 302%

January-09 0.82 2.48 303%

February-09 0.80 2.48 309%

March-09 0.77 2.48 323%

April-09 0.77 2.48 323%

May-09 0.83 2.48 298%

June-09 0.86 2.48 288%

July-09 0.82 2.48 301%

August-09 0.74 2.48 334%

September-09 0.72 2.48 342%

October-09 0.71 2.48 349%

November-09 0.72 2.48 345%

December-09 0.74 2.48 335%

January-10 0.82 2.48 304%

February-10 0.81 2.48 306%

March-10 0.84 2.48 295%

April-10 0.82 2.42 295%

May-10 0.87 2.35 271%

June-10 0.86 2.35 272%

July-10 0.86 2.42 281%

(continued)
Appendix B: Price Tables Economic Impact Analysis of Proposed Regulations

for Eggs and Broilers for Living Conditions for Organic Poultry

B-8 Phase 1 Report

Table B-2. Monthly Average Prices at First Receiver for Whole, Young Chickens, 

per Pound, Conventional and Organic, January 2004–December 2011 

(cont’d)

Date

Conventional Price 

per pound

Organic Price per 

pound

% Price Premium for 

Organic

August-10 0.83 2.35 282%

September-10 0.84 2.35 281%

October-10 0.80 2.35 292%

November-10 0.81 2.35 290%

December-10 0.78 2.35 301%

January-11 0.76 2.35 309%

February-11 0.76 2.35 308%

March-11 0.83 2.35 284%

April-11 0.82 2.35 286%

May-11 0.83 2.35 282%

June-11 0.82 2.35 286%

July-11 0.80 2.35 294%

August-11 0.81 2.35 291%

September-11 0.75 2.35 314%

October-11 0.74 2.35 318%

November-11 0.77 2.35 304%

December-11 0.80 2.35 293%

Source: USDA Agricultural Marketing Service.