The egg industry was thrown into disarray this week with allegations Palace Poultry was buying caged eggs and selling them as free range. Photo: Hortense Jones

A Newsroom investigation this week revealed millions of caged eggs were likely sold as free range at New Zealand supermarkets – but it has also revealed an industry lacking in meaningful standards.

The controversy around Palace Poultry has not only exposed alleged fraud, but it has shown how opaque the rules and regulations are when it comes to free range egg label claims in New Zealand.

The egg industry and consumer confidence was thrown into disarray with the allegations Palace Poultry was buying caged eggs to fill not only its own free range cartons, but also those of Woodlands, Farmer Brown, Select brand and Country life brands.

Consumers turned to one of the most trusted benchmarks, the SPCA Blue Tick, for assurances the products they pay a premium price for meet high animal welfare standards.

Now it transpires even the SPCA Blue Tick has its shortfalls, with notices issued to some of the 16 accredited free range egg producers for discrepancies.

The accreditation program, which producers pay to be part of, is also now fast-tracking plans for egg traceability, a solution also being touted by the egg industry.

The Poultry Industry Association (PIANZ) chief executive Michael Brooks says stamping eggs at the source with a unique code will stop caged laid eggs being passed off as free range.

It’s an idea that has been mooted previously, but accelerated by the Newsroom investigation.

Government ministers and agencies say it is too soon to take action before the Serious Fraud Office determines exactly what has gone on at Palace Poultry.

However, the grey areas and loopholes are there for all to see.

To start with, not even the Minister of Primary Industries Nathan Guy can offer a definition for free range – because one does not exist in New Zealand law.

“It is very hard to define what is a free range egg,” he told reporters when questioned on the subject this week.

It was “perhaps” time to create that definition, he said.

A spokesman for the Minister referred all Newsroom’s questions on the issue to the Minister for Consumer Affairs, Jacqui Dean.

This was because MPI only deals with animal welfare, not label claims, the spokesman said.

Those are covered under the Fair Trading Act.

MPI is only responsible for ensuring that farms meet the minimum requirements under the Animal Welfare Act.

When criteria is reached and no food safety threats exist, approval is granted and a farm becomes accredited under MPI.

MPI does not audit which eggs are being brought onto a farm and would have had no visiibilty over a case like Palace Poulty where millions of caged eggs were trucked into its Ararimu property.

It is not until the consumer buys the eggs from a retailer that the Fair Trading Act is applicable.

But how can a product claim to be something there is no definition for – and without that definition how can it be enforced?

The code of welfare sets minimum standards, but those standards are not seen as strong enough by those who consider themselves to be “truly free range”.

The idea of chickens outside, happily roaming in a field may not actually be the case – many free range eggs come from large scale operations where hens are still kept in close quarters.

While they have “access” to range freely, if they have never been able to behave naturally there is every chance they won’t take the opportunity to leave through the barn door.

The rapidly increasing demand for free range eggs signals a change in consumer sentiment and an increasing focus on voluntary schemes like the SPCA Blue Tick and AsureQuality and BioGro’s extra certification.

If these are accreditations which consumers trust – and are willing to pay for – why is there reluctance to make such assurances mandatory?

Founder of FRENZ, one of the longest running free range operations, Rob Darby thinks the standards should be even higher than the SPCA Blue Tick.

He says there are “too many loopholes” in current laws.

“As long as this remains the system, I don’t see anything changing.”

It is time for the Government to protect consumers and make the egg industry clean up its act.

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