Technical efficiency of biosecurity and animal welfare in the Taiwan egg industry

Despite the pivotal role of the egg industry in the food supply chain, the absence of regular surveys over the past decades in Taiwan has resulted in a dearth of national-level data. This study endeavours to address the research void surrounding biosecurity while scrutinizing the technical efficiency of egg producers in an environment where there is no mandate to phase out battery cage systems and farmers have the autonomy to adjust their feeding strategies. We employ the stochastic frontier analysis framework to analyse farm-level data derived from a 2020 national survey of the egg industry in Taiwan, which includes 547 commercial egg farms, with 519 still utilizing battery cages and 28 farms having transitioned into alternative systems to meet higher Farm Animal Welfare standards. Our findings reveal that egg farmers who prioritize the improvement of biosecurity demonstrate greater technical efficiency. When considering the rearing systems, there is no significant difference in egg production rates between conventional and alternative systems. However, conventional systems exhibit higher efficiency in terms of total output. In essence, elevating FAW standards does not exert a discernible impact on the productivity of laying hens. Instead, farms employing conventional systems attain greater output due to their higher stocking density.