Lenders will be cautious toward cage-free egg expansion

A leading creditor for the egg industry predicts $6 billion of investment must be in order for the industry to meet cage-free demand in the coming years. This will challenge lenders and borrowers.  The switch will cost producers about $40 to $50 per bird, or about $6 billion in total to house the needed birds. Coit said about 40 percent of that amount is “net capital need” -- what the industry will need to provide up front -- and the rest is “debt financing” -- what will need to be borrowed. Coit said current market conditions will make lenders hesitant to dive in.