Free-range eggs laid in East Anglia must now be re-labelled as "barn eggs" because hens have spent so long indoors due to bird flu restrictions.
The region has been at the epicentre of the UK's worst-ever avian influenza epidemic, which saw housing orders enforced across Norfolk, Suffolk and parts of Essex on October 12 last year, followed by the rest of England on November 7 and Wales on December 2.
Under these circumstances, eggs from housed birds can still be marketed as "free range" for 16 weeks.
But as East Anglia's lockdown was enforced first, it became the first region to reach the end of that grace priod on February 1 - meaning eggs must now be re-labelled as "barn eggs".
Eggs produced by Havensfield Happy Hens at Hoxne (Image: Archant)
Alaistaire Brice, of Havensfield Happy Hens at Hoxne, near Eye, said the reclassification is unlikely to have a major effect on his business, as the prevailing national shortage of eggs meant he could retain his pricing.
However, he has serious concerns for the long-term future of the industry, with many farmers halting production due to high risks, soaring costs and unsustainable prices.
The number of birds managed by his producers across Norfolk and Suffolk has dropped from 150,000 to 60,000 in the last four months, he said.
"We have lost about 30,000 through avian influenza, but the rest is because of a lack of confidence where there is no insurance for bird flu and no cure for it, the feed is costly, the birds are costly, the risk is huge, the egg price is not where it needs to be, so they are not re-stocking'," he said.
"Some of those who are sitting on the fence are coming back in May, but this is happening up and down the country. One guy in Norfolk changed his whole chicken shed into a piggery because there is less risk in that.
"If it goes on like this, there will be no free range industry in East Anglia. Until we get a vaccine and insurance against loss of production, you are just not going to do it."
Mr Brice said the industry "needed more support from retailers" to ensure producers secured a fair share of rising egg prices.
And he added there could be added competitive pressures unless the UK government keeps pace with the EU's proposed relaxation of the 16-week rule.
"We have seen supermarkets going to Italy and they could also go to Holland to get their free-range eggs, which are no different to ours, but the consumer won't understand that if theirs are labelled as free-range on a shelf next to ours which are labelled as barn eggs," he said. "It could potentially undermine our whole industry in the future."
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