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Sundaily, China's second-largest egg producer and among the top 12 globally, has commenced construction on the nation’s largest single-site cage-free egg farm.

The farm, located in Jian'ge County, Guangyuan City, Sichuan Province, signals a growing commitment to enhancing food safety and quality standards amid evolving consumer preferences.

Founded in 2001, Sundaily has established partnerships with major retailers, including JD, Sam’s Club, and Walmart, as well as various restaurant chains, foodservice companies and hotels.

The new facility is set to accommodate an initial flock of 300,000 cage-free hens, with future plans to scale up to one million hens over the next three to five years. The farm will also include advanced egg processing capabilities, creating a fully integrated system to produce cage-free shell eggs, liquid eggs, powdered eggs and other processed egg products.

The shift towards cage-free egg production reflects a broader trend in the global egg market, driven by increasing consumer awareness of animal welfare and food sourcing practices.

Lei Bo, vice chairman of Techlex Group, Sundaily's parent company, noted: “In recent years, the global egg market has witnessed a remarkable shift towards cage-free eggs due to a variety of consumer preferences and growing awareness of animal welfare. As the leading egg company in China, Sundaily is committed to providing the best eggs for Chinese consumers.” He highlighted the strategic importance of the Guangyuan project, which is set to launch in 2025.

Animal welfare has become a pivotal concern in modern agriculture, particularly in the egg production sector. Traditional battery cage systems have faced increasing scrutiny due to the confinement and restricted movement they impose on hens. In contrast, cage-free environments allow hens to roam freely, engage in natural behaviours and access nesting areas, leading to improved physical and psychological wellbeing.

The new cage-free farm will prioritise these welfare standards, providing hens with more space and an enriched environment that includes perches, dust baths and natural light. Research indicates that such conditions not only enhance animal welfare but also result in higher-quality eggs. Hens in cage-free systems tend to exhibit lower stress levels, which can contribute to better egg production rates and improved egg quality.

Mutzu Huang, programme director at Shanghai-based consultancy Lever China, highlighted the significance of Sundaily’s new facility in raising the bar for food quality and animal welfare standards in China. “Sundaily’s new cage-free egg farm is leading the way in setting higher standards for China's food quality and animal welfare, reflecting the values of today’s consumers and corporate buyers,” Huang stated.

Consumer sentiment towards cage-free eggs is shifting markedly. A 2021 poll conducted by Lever China and food media agency FTA revealed that 60% of Chinese consumers prefer food companies to source eggs exclusively from cage-free farms.

Furthermore, 75% indicated a greater likelihood of supporting brands that utilise only cage-free eggs. This data underscores a growing demand for ethical sourcing practices among Chinese consumers, which is increasingly influencing purchasing decisions in the food and beverage sector.

Cage-free egg production not only promotes animal welfare but also enhances food safety. Research conducted by the European Food Safety Authority indicates that cage-free farms experience contamination rates from key salmonella strains that are up to 25 times lower than conventional operations. This evidence supports the notion that transitioning to cage-free systems can significantly improve the overall quality of egg products available in the market.

As the food industry continues to evolve, Sundaily’s investment in cage-free egg production positions it at the forefront of a transformative movement within the Chinese market. The implications of this development extend beyond animal welfare, touching upon food safety, consumer preferences and the future of sustainable food sourcing in China.

Lever China is a consultancy based in Shanghai that collaborates with leading companies to enhance food sourcing practices, focusing on humane, safe, and sustainable supply chains. The organisation specialises in upgrading animal protein and plant-based food sourcing strategies, working closely with major egg producers like Sundaily to implement cage-free production methods.