THE average Australian consumes 220 eggs each per year.
But with controversy cropping up every now and then, the industry has seen its fair share of egg on its face.
So how does a business unscramble the odds in this sector?
Sunny Queen Australia's managing director John O'Hara says being able to anticipate, adapt to and fulfil customers' needs, expertise in hen welfare, farming infrastructure and quality products are among the keys to success.
He says the recent shift towards free-range and cage-free (barn-laid) eggs has had significant implications for egg farmers who have to review their infrastructure in order to meet this growing demand.
"Egg companies will have to invest significantly in order to increase production and satisfy this change in consumer sentiment," O'Hara says.
More than 400 million dozen eggs were produced in the 2014 calendar year, according to Australian Egg Corporation Limited figures.
Sunny Queen, Pace Farms, Novo Foods (Farm Pride) and Manning Valley are among the producers in a competitive industry that has a grocery market value of $1.7 billion.
"The lack of regulatory standards for free-range farming, however, has added to the uncertainty that surrounds the future retail and customer dynamics and, in turn, has limited the egg farmers' capacity to proactively increase their production," says O'Hara.
He says Sunny Queen are third-generation egg farmers, and know the market is constantly evolving.
"We need to be ready to respond to those changes. We are regularly analysing the market and talking to our customers, and end consumers to better understand their needs and preferences."
Consumer preference for free-range eggs has grown considerably during the past few years and now represents almost 40 per cent of the market, he says.
"We believe this trend will continue to grow."
James Kellaway, managing director of Australian Egg Corporation Limited, says total cage egg sales still represent more than 60 per cent of production in Australia.
"And egg sales keep growing across the country. We don't know how the industry will be able to keep up with the demands posed by a growing population and increases in per capita consumption.
"The challenges for today's egg farmers are the uncertainties in the industry. The challenge being it is such a long-term investment. I have heard reports that some farmers are reluctant to invest in the future due to those uncertainties."
Issues to do with animal cruelty in the industry crop up regularly. So when they surface, how much of a negative effect does it have on egg entrepreneurs?
"It does much damage to the egg industry because the majority of egg farmers do the right thing by their hens and their customers," says Kellaway.
"The farmers that don't do the right thing are letting the industry down. The industry only supports egg farmers who do the right thing by their hens and by consumers. But despite the odd report, egg sales keep increasing because people love and need eggs in their diets."
O'Hara says their vets work closely with the farmers and quality assurance teams to ensure that the company's stringent animal welfare, quality standards and food safety protocols are met consistently, and that the hens are healthy and well cared for.
"We keep abreast of the latest research and technologies in our quest to meet the needs of our hens and our customers, and all of our farms are independently audited," he says.
In order to position the business so it's not aligned with animal cruelty, Sunny Queen ensures all their carton packaging is labelled with the required information for consumers.
Kellaway says the main trend in the industry is an increase in egg consumption.
"Australians now eat 220 eggs each per year. Increasingly, we are seeing demand for new egg products, such as packaged egg omelettes and egg whites.
"There has also been a steady increase in free range sales in recent years, especially in the retail market. By 2050, we will have to increase egg production by approximately 160 per cent to keep up with demand."
Sunny Queen, which is owned by two Australian farming families, who have been egg producers since the 1930s, have just launched a range of egg-based products under a new Sunny Queen Meal Solutions banner.
"As people's lives become more and more busy, they are looking for ways to get the nutrition and taste they are looking for, on the run," says O'Hara.
That, he says, was a key consideration in the decision to invest in the Meal Solutions business.
"We are already renowned for producing fresh shell eggs from our farms. Now, we can also deliver pre-prepared products that will save businesses both time and money."
The product range includes poached eggs, omelettes, egg bakes and scrambled eggs.
