The Asia Protein Transition Platform Statement Supporting Cage-Free Egg Impact Incentives

July 31, 2024

The Asia Protein Transition Platform is a collaboration between Asia Research and Engagement (ARE) and institutional investors managing over USD3tn.

Together, we conduct investor-backed engagement of Asian listed food companies and banks, towards more responsible and sustainable protein. This includes farm animal welfare with policy and commitment, progress and performance, towards cage-free systems as a priority. The following statement offers a solution that helps address the growing interest and investment in cage-free egg systems in Asia, supporting this industry, farmers, food companies, and layer hens.

The Asia Protein Transition Platform is committed to promoting responsible and sustainable business practices, and encourages food companies to utilize cage-free egg Impact Incentives (book and claim credits) as a valuable tool for meeting their cage-free egg commitments, particularly in markets where transitioning the physical supply chain presents significant challenges. We recognize that many food businesses have made ambitious commitments to source 100% cage-free eggs including in Asia, often with 2025 target dates, while other companies are looking to source cage-free eggs now and in future. We understand that in some regions, especially in Asia, the cage-free egg supply remains limited. In addition to physical sourcing of existing cage-free eggs, this solution enables companies to fulfil their pledges and procurement in a timely manner, while supporting the growth of the cage-free egg industry and consumer interest.

Cage-free Impact Incentives offer several key advantages to bridge the gap in physical cage-free egg sourcing:

Speedy Implementation: Companies can begin supporting cage-free production immediately, without waiting for supply chain mapping or producer transitions.

Flexibility: Credits are not tied to egg shelf life and can be consolidated regionally, allowing for efficient management.

Operational Efficiency: Businesses can support cage-free farming without disrupting existing supply chains or risking continuity.

Direct Farmer Support: Premiums go directly to cage-free farmers, incentivizing increased production.

Inclusivity: The system allows participation from producers of all sizes and locations.

Stakeholder Endorsement: Major animal advocacy groups recognize impact incentives as a valid means of fulfilling cage-free commitments.

We encourage food businesses to incorporate cage-free Impact Incentives into their strategies for meeting animal welfare goals, especially in challenging markets. This approach demonstrates a genuine commitment to improving farm animal welfare while acknowledging current market realities.

The Asia Protein Transition Platform will view the use of cage-free Impact Incentives favourably when assessing companies’ progress towards their cage-free pledges. We believe this innovative solution can play a crucial role in accelerating the global and regional transition to cage-free egg production and sourcing.

Note: This credit system is managed by Global Food Partners. See precedent, learn more here.

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