Starbucks Corporation (NASDAQ:SBUX) Joins The Cage-Free Eggs Drive Alongside McDonald’s (MCD) And Burger King
Starbucks Corporation (NASDAQ:SBUX) is working to drop eggs laid by caged poultry in favor of those produced by cage-free flocks. The company has made a commitment to make a full transition by 2020 at its North American stores. The gravitation towards cage-free eggs is gaining steam considering that Burger King Corp and McDonald’s Corporation (NYSE:MCD) have also pledged and set timelines for their shift to cage-free eggs.
Starbucks Corporation (NASDAQ:SBUX) has since 2008 been buying cage-free eggs, but the company has now made a firm commitment to move to cage-free eggs 100% within the next five years. Cage-free eggs are those produced by flocks that are free to move around inside a shed. They are different from eggs produced by flocks confined into cages. According to the U.S. governments, cage-free chickens are those that have enough room to roam around even if they don’t have access to the outdoor.
Supply chain constraints
The demand for cage-free eggs currently outpaces supply. Part of the reason is that cage-free eggs production carries higher costs. The other reason is that most farmers are only beginning to redesign their poultry housing.
The steady shift to cage-free eggs has also produced competition among buyers. Starbucks Corporation (NASDAQ:SBUX) acknowledges the existence of supply-demand constraint in the cage-free eggs supply chain. As such, the company has revealed its determination to work closely with suppliers to ensure that its self-imposed deadline for switching to 100% cage-free eggs by 2020 is met.
The shift to cage-free eggs from caged eggs is part of Starbucks’ Animal Welfare-Friendly Practices strategy.
Push and pull in cage-free production
Starbucks Corporation (NASDAQ:SBUX) is not alone in the push to treat restaurant customers to cage-free eggs. McDonald’s has also made commitment to transition its stores to cage-free eggs within the next decade. On its part, Burger King is working to make its stores cage-free eggs locations by 2017.
The push to cage-free eggs in stores has been around for a long time. However, the transition has been frustrated by other meat farmers who fear that they could be targeted next after poultry.
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