NestFresh, a pioneer in the US specialty egg market, has unveiled its carton packaging and marketing strategy for the nation's first commercially available in-ovo sexed eggs under the new branding Humanely Hatched.™

NestFresh made history in December 2024 when they became the first US egg producer to hatch in-ovo sexed chicks on American soil, marking the beginning of a new era for the US egg supply chain. These hens have now begun laying eggs that will reach grocery store shelves this month under this distinctive new branding.

Jasen Urena, Executive VP of NestFresh celebrated the launch of their new initiative. “Humanely Hatched™ represents years of collaboration, innovation, and commitment to doing what’s right.” said Urena. “We’re honored to be the first to bring U.S. consumers eggs from hens humanely selected before hatch, verified by Certified Humane®.”

As the first company to bring this technology to American consumers, NestFresh has the opportunity to define how this category is presented and perceived. And their decision to brand these eggs as Humanely Hatched provides interesting insights into how in-ovo sexing technology may be initially positioned in the US market:

• Focus on welfare benefits: By emphasizing humane hatching, NestFresh directly addresses consumer concern with male chick culling. This aligns with Innovate Animal Ag’s consumer research, which shows the vast majority of US egg consumers are uncomfortable with the common practice and are eager for alternatives. Indeed, half of consumers report being willing to pay at least 5 extra cents per egg to eliminate the practice of male chick culling in the supply chain.

• Simple, accessible terminology: Rather than using technical terms like "in-ovo sexing," "cull-free," or other industry jargon, "Humanely Hatched" offers consumers an intuitive understanding of the welfare benefits, and focuses on the positives of adopting in-ovo sexing.

• Backed by Certification: NestFresh’s eggs will carry Certified Humane’s “Approved Hatchery Operations” certification, providing consumers with third-party verification that adds credibility to the welfare claims, and ensures complete supply chain traceability from hatchery to shelf.

Retailers should also take note of this new development. With NestFresh's products now hitting shelves, forward-thinking retailers have an opportunity to demonstrate ethical leadership and meet growing consumer demand for more humane food choices. Those who communicate these welfare benefits effectively and educate consumers about this inexpensive innovation will likely gain a significant edge in the competitive marketplace.

Beyond the compelling business opportunities, this new initiative has also deeply resonated with the farmers who are raising these in-ovo sexed hens. “It gives me a lot of pride to know that we are doing something really important with Humanely Hatched hens on our farms,” Joe Klein, a farmer for NestFresh said. “I hope to see other farmers use this technology too.”

Business Roundup

• Hendrix Genetics‘ Nebraska hatchery processed the first set of eggs with their newly installed Respeggt in-ovo sexing machine. This is the first US machine capable of sexing both white and brown eggs, an important capability given the popularity of both egg types among American consumers. This first flock is destined for Kipster, which is now the second egg producer in the US to use the technology. 

• The United Egg Producers (UEP) launched its in-ovo sexing certification standards this quarter for the US market. The program, UEP Certified Hatch Check, certifies eggs produced by hens from hatcheries that have used in-ovo sexing technology or reared male chicks. The new certification sets the industry up for a broad rollout of in-ovo sexing with transparent, rigorous, and verifiable standards, and represents the trade-group’s commitment to continually improving the American egg supply chain.

• Respeggt, a liquid-based in-ovo sexing technology provider, announced two new machines in Europe this quarter. The first at the Het Anker hatchery in Ochten, the Netherlands, and the second at ab ovo bio in Ahlen, Germany. The latter marks the first in-ovo sexing machine at an organic hatchery in Germany since the update to EU Organic Regulation 2018/848, which now permits in-ovo sexing. The updated EU regulation now allows more of the organic egg supply chain to adopt in-ovo sexing technology, as opposed to the less economical practice of male rearing. 

• Steinsland & Co., Norway’s largest hatchery, announced their 1 millionth chick hatched with their Respeggt Circuit. Innovate Animal Ag recently covered the hatchery’s successes after the company made the forward-thinking decision investing in in-ovo sexing technology back in 2023. After just 18 months in the Norwegian market, in-ovo sexing technology has already climbed to a 22% market penetration.

• Orbem, an MRI-based in-ovo sexing technology provider, announced this quarter that their machines had scanned a total of 100 million hatching eggs–over 38 million females–since they began production two years ago.  They also announced the first hatch of in-ovo sexed chicks with their new machine at Sirevåg Rugeri, one of the two major hatcheries in Norway.

• Omegga, a German-based in-ovo sexing startup, announced their new machine, the OmeggaOne. The OmeggaOne machine is installed directly inside the incubator–a new paradigm for in-ovo sexing–and uses specialized cameras and artificial intelligence to determine the sex of the developing embryo by the 7th day of incubation. Omegga is currently in the process of rolling out the technology at Gut Averfeld Hatchery in Germany.

New Research

• Innovate Animal Ag released our latest In-Ovo Sexing Global Market Penetration Report. We found that 28% of the EU’s 393 million hen flock was sexed with in-ovo technology at the end of Q1 2025. Since the technology was first adopted at scale in 2022, around 175 million male embryos have been separated out prior to hatching.

• Innovate Animal Ag also launched our in-ovo sexing consumer survey for Brazil this quarter. The survey revealed strong Brazilian market demand for eggs produced using in-ovo sexing technology, with consumers willing to pay an average of R$3.87 (S0.67 USD) more per dozen. The results suggest that egg producers who adopt this technology will find a consumer base willing and eager to pay premium prices.

• Finally, the research team at Innovate Animal Ag published a report this quarter on the consumer costs of HPAI during the latest HPAI outbreak. We found that supply constraints from HPAI driven egg shortages cost American consumers an extra $14.5 billion dollars during the 2024-2025 period studied. The findings underscore the importance of a national livestock vaccination program to mitigate the effects of the disease, protect the livelihoods of American farmers, and prevent future spikes in the prices of eggs.

For more detailed information on in-ovo sexing technologies and their impact on the poultry industry, visit our In-Ovo Sexing Overview.

A new era for the US egg industry continues to hatch as Hendrix Genetics’ Nebraska facility processes its first flock of in-ovo sexed chicks using Respeggt’s in-ovo sexing technology. The flock is destined for Kipster, the second egg producer in the US to publicly utilize the technology.

The Respeggt in-ovo sexing machine at Hendrix’s facility is the first system installed in the US capable of sexing both white and brown layer breeds. This capability is important for the US market, where both egg types have substantial market share.

This announcement follows a slate of recent developments in the US market that underscore the growing momentum of in-ovo sexing technology. Last year, two of Agri Advanced Technology’s Cheggy machines entered the market at Hyline hatcheries, facilitating the first ever hatch of in-ovo sexed chicks on US soil. More recently, Walmart included in-ovo sexing as a focus area in its producer guidelines and the United Egg Producers launched their in-ovo sexing certification.

Robert Yaman, the CEO of Innovate Animal Ag reflected on the importance of this milestone for Kipster and the US egg industry. “Cost-effective technological solutions to major challenges like chick culling are critical to modernizing the US egg supply chain and rebuilding consumer trust in animal agriculture,” Yaman said. “We applaud Kipster for continuing to demonstrate their leadership in the egg industry by being one of the first producers to use this technology in the US.”

Known for its forward-thinking practices, Kipster produces the nation's first certified climate-neutral eggs at its North Manchester, Indiana farm. This new initiative, in partnership with Hendrix and Respeggt, aligns with growing consumer demand for more ethical and sustainable food production. Consumers eager to support this innovation can expect to find Kipster eggs from the in-ovo sexed flock at Kroger and affiliated stores across 28 states starting early 2026, following the chicks’ maturation into laying hens.

For more detailed information on in-ovo sexing technologies and their impact on the poultry industry, visit our In-Ovo Sexing Overview.

The UEP–whose farmer-members represent more than 90% of all eggs produced in the US– developed and approved this new initiative in consultation with farmers, hatchery operators, in-ovo sexing technology companies, and veterinarians. The certification sets the industry up for a broad rollout of in-ovo sexing with transparent, rigorous, and verifiable standards.

The new certification requires annual third-party audits to verify compliance at every step of the supply chain. Hatcheries must keep comprehensive records that ensure Hatch Check eggs are kept separated from other eggs and that the in-ovo sexing equipment meets certain accuracy and hatchability standards. But the certification also extends beyond the hatchery level. It ensures supply chain integrity by tracking the hens to their farms and the eggs they lay to the packing facilities.

In 2016, the UEP committed to phasing out male culling when in-ovo sexing technology was commercially and economically feasible. In 2021, they reiterated their continued support for the technology and provided industry expertise to FFAR to advance the Egg-Tech Prize, which provided up to $6 million for research into in-ovo sexing technology. US Poultry also supported the Egg-Tech Prize with a $100,000 grant. Now that in-ovo sexing is viable and available in the US market, American egg farmers are moving towards adopting the technology in the absence of government regulations.

This is American agriculture at its finest: identifying challenges, supporting practical and efficient technologies to address them, and setting up programs that assist implementation at scale. Rather than waiting for regulations or mandates, the UEP and American farmers are investing in this future because of a shared commitment to continually improve the American egg supply chain.

For more detailed information on in-ovo sexing technologies and their impact on the poultry industry, visit our In-Ovo Sexing Overview.

• Americans spent $14.5 billion more on eggs in the last twelve months, bringing total expenditures to $29.9 billion—almost double the $15.3 billion average seen in non-HPAI years.

• This increase was largely due to sudden constraints on the supply of eggs caused by the mass depopulation of laying hens necessitated by HPAI.

• Other economic impacts include government expenditures on indemnity, monitoring, and biosecurity disruptions to agricultural exports, and declines agricultural productivity. Additionally, if HPAI causes a larger public health crisis, total economic costs could reach the trillions.

• Without strong preventative action, HPAI will continue to impose similar costs on American consumers, taxpayers, and farmers in the future.

The report looked at total spending on eggs from the beginning of May 2024 to the end of April 2025, broken down by retail and breaker spending. Expenditures from that period were then compared against previous non-HPAI years, going back to 2010. 

Robert Yaman, CEO of Innovate Animal Ag said “The recent spike in egg prices isn’t a mystery—it’s basic supply and demand after HPAI wiped out a large share of the nation’s laying hens and shrank the egg supply. Without strong preventative action by the Trump administration, similar supply shocks are likely to happen again in the future. But with smart policy, we can protect both farmer livelihoods and grocery budgets.”

The full report can be accessed here.  

In the world of agricultural innovation, sometimes the most remarkable transformations come from unexpected places. While much of Europe’s adoption of in-ovo sexing technology has been driven by markets with regulatory pressure, Norway is charting a different path—a path purely based on market demand and forward-thinking business strategy.

Norway quietly made history in 2023 when Steinsland & Co, the country's largest hatchery, became the first in the world to implement in-ovo sexing technology for a market without any regulation mandating its adoption.

"The practice of having to cull all newly hatched male chicks immediately after hatching is something we at Steinsland have dealt with for more than 70 years and through three generations. It has always been an ethical dilemma for us," says Tone Steinsland, owner of Steinsland & Co.

Adopting in-ovo sexing carried significant business risk, but as Steinsland notes, "making bold decisions also creates opportunities." The gamble is paying off. In the coming month, Steinsland will reach a remarkable milestone: hatching their one millionth in-ovo sexed female chick with Respeggt’s Circuit. And, as Steinsland reports, the technology's performance has been exceptional, with "less than 1% errors on average, and at one hatch we were down to 0.2% males."

What began with one forward-thinking hatchery has quickly expanded across Norway. Sirevåg Rugeri, Norway's second major hatchery, has also embraced the technology, with Orbem's in-ovo sexing system now up and running. The hatchery produced its first in-ovo sexed chicks in April 2025, further cementing the technology's foothold in the country.

In just 18 months, Norway has achieved a 22% market penetration of in-ovo sexing for its country's 4.3 million head commercial layer flock.

The nature of Norway's transition makes its progress all the more impressive. As Steinsland explains: "No egg producer is forced to order in-ovo sexed chicks in Norway, thus it is all still at a voluntary level."

Yet the momentum continues to build. Norwegian CPG conglomerate Nortura, which accounts for around three-quarters of Norwegian egg production, has announced that all eggs sold under their Prior brand will be from in-ovo sexed hens by the end of 2025, and that all of its eggs will be moving in this direction over the next couple of years.

"For us, one aim behind the investment was also to help the whole egg industry in Norway increase the competitiveness of Norwegian eggs," Steinsland says. "Sooner or later, we believe our move to introduce in-ovo sexing to Norway will lead to an industry standard and that we will be one of the first countries where 100% of the chicks are in-ovo sorted."

Though Norway is the leader, they are part of a growing movement of countries adopting in-ovo sexing without regulatory pressure. 

Switzerland's poultry industry stakeholders have decided to implement the technology in the country's two main hatcheries, Animalco and Prodavi, which will begin production for the entire Swiss layer flock this year.

In the Netherlands, the government recently announced an industry-led plan to end male chick culling by 2026, with most Dutch hatcheries already technologically equipped for this transition.

Finally, the United States is also seeing market-driven adoption, with specialty egg producers NestFresh and Kipster leading the way. Three in-ovo sexing machines have now been installed in American hatcheries, and Walmart has even included the technology as a focus area in their latest egg supplier guidelines.

The Norwegian example shows that adoption of in-ovo sexing can not only succeed without government mandates but can also position early adopters as industry leaders. As in-ovo sexing continues its rapid global expansion, Norway's pioneering approach provides a compelling model for markets worldwide.

For more information about in-ovo sexing technology and its global adoption, visit our latest In-Ovo Sexing Market Penetration and Forecast Report

We just released our latest market penetration and forecast report for in-ovo sexing technology.

This original research conducted by Innovate Animal Ag shows that at the end of Q1 2025:

• 28% of the EU’s 393 million hen flock was sexed with in-ovo technology—an 8-point increase in one year.

• Since 2022, 175 million male embryos have been removed before hatching.

• EU adoption has compounded at 147% over the last four years, outpacing the early scale-up curves of LED lighting, iPhones, color TV, internet, AC, and home electricity.

• In-ovo sexing is just beginning its rollout in the US, and currently represents less than 1% of the US’ 310 million head commercial layer flock. In Norway, in-ovo sexing has hit a 20-25% penetration.

• The global penetration of in-ovo sexing is expected to continue its sharp growth in the next few years, led by rapid expansion in the US, continued strength in Europe, and penetration into greenfield markets like Australia, Canada, UK, and Brazil.

Do you want to access our full forecasts and analysis of the penetration data? Read the full report by clicking the button below.

With the AI’s help, we also identified 3 key takeaways for producers and retailers:

1. The market opportunity exceeds added costs, by far.

2. Rather than just expressing outrage over the issue, consumers are happy to see brands and retailers adopt technology to solve this challenge.

3. Consumers will switch brands—and even grocery stores—to buy these eggs.

Collecting the Data

We asked OpenAI’s newest o3 AI model to analyze all 173 comments, focusing on takeaways for egg producers and retailers. In addition to looking at the sentiment within the comments themselves, we also asked the AI to take into account the amount of positive engagement each comment got, which is an indication of agreement from other readers of the comments. We manually reviewed the data collection and analysis to check for hallucination.

• The 173 unique commentators came from 17 states, providing a diverse set of viewpoints from across American society. The commenters were 60% urban, 25% suburban, and 15% rural based on their provided location data. 7% of all commenters reported growing up on a farm or having worked on a commercial-farm at some point in their life. 

• 12% of all comments expressed an unprompted and explicit willingness-to-pay. Comments of this sort received 62% more engagement than the average other comments. 

• 18% of all comments expressed an explicit intent to look for eggs produced with in-ovo sexing on the shelf. Comments of this sort received 46% more engagement than the average comment to the article.

• 10 of the comments, or 7% of all comments, expressed explicitly that they would be willing to pay more for eggs produced without chick culling and that they intend to look for these eggs on grocery store shelves. These comments received, notably, 73% more positive engagement than the average other comments.

• In contrast, comments that promoted veganism and encouraged not consuming eggs or comments that were skeptical of in-ovo sexing had engagement rates that were much lower than the average comment, at -22% and -67% respectively.

Analysis

The market opportunity exceeds the added costs, by far.

It was remarkable to see that 12% of all commenters expressed that they would be willing to pay more for eggs produced with in-ovo sexing. This is noteworthy since the commenters were unprompted which indicates substantial baseline demand. One commenter, Ron G. from Salinas, CA, expressed, for example, that it would be easily “worth the three cents per egg to avoid.” 

This is in accord with Innovate Animal Ag’s American Consumer survey which found that half of consumers would be willing to pay 5 cents or more per egg to eliminate male chick culling and more than 10% of consumers would pay 15 cents or more per egg for a brand that uses in-ovo sexing. 

Americans are not unique in this strong preference either. Our recently launched survey of Brazilian consumers also found that more than 75% of consumers would be willing to pay more than in-ovo sexing’s cost per egg. Additionally, in data we analyzed from UK consumers, around half of consumers were willing to pay 10 pennies or more per egg.

This global agreement among consumers is all the more significant given that the cost of in-ovo sexing is less than a cent per egg, implying that not only would consumers be happy covering the added cost of the technology, but that there is also a shared surplus value that can be split between consumers, producers, and retailers.

Rather than just expressing outrage over the issue, consumers are happy to see brands and retailers adopt technology to solve this challenge.

Many commenters expressed ignorance or shock about the issue of chick culling, but that didn’t turn them away from eggs. In fact, 44% of these commenters expressed explicit purchase intent. One paradigmatic example is a comment from AMLH, from North Carolina. She writes that she is “still reeling from reading what happens to male chicks,” and that she “will look into the eggs described here. We absolutely must change this.” Though there are a minority of comments that are disparaging of the egg industry after learning about the practice, the majority of responses, like our commenter above, are much more pragmatic. DJH, a commenter from Detroit, provides another example of this: “This is very illuminating.  Thank you for naming the brands that do in-ovo testing.” 

The data from our American Consumer Survey supports the idea that consumers will react positively towards producers who adopt the technology. After being informed about chick culling, 82% of the consumers surveyed express interest in eggs produced with in-ovo sexing technology, including around 50% of consumers who are “very” or “extremely interested. Overall, this data indicates that rather than kneejerk outrage to learning about the challenge of chick culling, consumers will feel more connected with brands and retailers that have taken the initiative to find a technological solution to the problem. Rather than consumer backlash, all the data we’ve seen points to eager enthusiasm.

When NestFresh’s first eggs produced with in-ovo sexing begin to hit the shelves in the US in the next few months, and when other producers and retailers roll out their own in-ovo sexed product lines, we expect consumer awareness of chick culling in the US to grow quickly. As this awareness increases, producers and retailers can capitalize on a growing purchase-ready audience. 

Consumers will switch brands to purchase these eggs, including going to a different grocery store

A final and critical takeaway for producers and retailers is that because this issue can resonate so deeply with consumers, awareness of the issue will motivate consumers to switch brands or grocery stores in order to buy eggs. The NYT comments were filled with sentiments along these lines. Some commenters, like this one from Massachusetts, stated it directly: “I will only buy eggs from farms and producers with this technology.”

Others were less direct, but felt similarly. Merell said that she “will urge my grocers to switch to ovo-testing. I will share this article.” Similarly, Linda from Rhode Island said that she would “send a copy of this piece to every grocery store I visit starting next week.” 

These sentiments are not surprising given the consumer survey data from around the world. One survey of UK consumers finds that nearly half of female consumers would be likely to switch grocery stores on the sole basis of whether they stock eggs using this technology. 

Over the past decade, particularly in the US, consumers have increased their expectations around animal welfare. Producers, retailers, and food service providers that meet these expectations have seen higher brand loyalty. Over the next decade, this trend is set to continue, and the data suggests that in-ovo sexing is poised to become one of the most influential factors shaping consumer decisions in the egg aisle.

The survey, conducted by YouGov from December 20-30th, 2024, sampled 1,553 Brazilian consumers who were responsible for at least 50% of their household grocery purchases.

Some highlights from the survey:

• 79% of Brazilian egg buyers expressed interest in purchasing eggs produced with in-ovo sexing technology, with 47% indicating they would be "extremely" or "very" interested, and 32% reporting being "slightly" interested.

• 76% of consumers were willing to pay a premium for eggs produced with in-ovo sexing technology. On average, egg buyers would pay R$3.87 more per dozen of eggs, equivalent to $0.67 USD. 36% of consumers were willing to pay more than R$5.00 (or $0.88 USD) extra per dozen.

• 73% of consumers expressed discomfort with the practice of culling male chicks, and 76% believe the industry should find an alternative approach.

• 86% of consumers were unaware that in-ovo sexing technology exists, but when informed, 72% of consumers believe that the industry should adopt the technology instead of culling male chicks.

You can read the full survey by clicking the button below!

On the panel, Robert emphasized the importance of vaccinating our layer flock to keep egg prices down in the long term, as well as addressed some of the public health and animal welfare issues associated with the disease. A lightly edited version of his opening statement is included below, and the recording of the full panel is available here.

Transcript

Note: This transcript has been lightly edited for clarity and concision.

The emphasis that I want to mostly focus on today is thinking about the long term. So as we just heard, egg prices have been spiking recently, and that’s the reason we’ve all come here together today. But this is not the first time that egg prices were in mainstream news in the last few years. At the end of 2022 and the beginning of 2023, there was another supply shock due to the same bird flu outbreak that we're currently experiencing.

The outbreak that's currently ongoing has been going on for a number of years and has led to multiple spikes in the price of eggs. So the question then is, is this going to happen again? And if so, what are the steps we could be taking now to lower that risk?

When I speak to egg producers and folks that are on the ground, what I hear overwhelmingly is that we're not currently on track to ensure that this is not going to happen again. So when we think about the Biden administration’s policy response to bird flu, it’s clearly been unsuccessful in keeping down the price of eggs.

What we should be thinking about now is, how do we avoid making the same mistakes that we made in the past to prevent prices from spiking again at a potentially politically inopportune time, at the end of next year and the year after?

When it comes to the long term impacts of bird flu, egg prices are obviously a very important food security issue. There's also public health ramifications that I'm sure others will speak to more. There are important issues around animal health and animal welfare that I think Americans have shown that they deeply care about. There's also matters of protecting small farmers and small business owners from being put out of business by the disease.

Many of the proposals that Secretary Rollins discussed in her five point plan are positive. There's been also some proposals out there to increase the supply of eggs via other means, for example, lowering the restrictions on the use of surplus eggs from the chicken meat sector, which are subject to regulations which forbid them to be used as table eggs. I think these are all good ideas.

The only solution that we have right now to be proactive and protect against future price hikes due to supply shocks is vaccination, because that’s the only way we can be proactive in protecting our flocks from the disease.

Things like importing eggs, increasing the supply coming from the meat sector, funding biosecurity, these are all good, but they are ultimately reactive. They are responding to a crisis that's already happened.

That's not to say that vaccination will be easy by any means. There are certainly massive logistical and political challenges associated with it. The biggest issue right now is around trade. Currently, the way that many of our trade agreements with other countries are set up is that any sort of vaccination campaign, even if it's just for layers in the US, would open the possibility that our trade partners could ban the import of all poultry products, including chicken meat, from the US.

Now, this is a very important issue, because the chicken meat sector is a big exporter in the US. In that industry, about 15% of revenues are due to exports. And a lot of that is parts of the chicken that Americans don't really want to eat, like chicken feet exported to China, for example. To use words that some others have used, we can be vaccinating a layer in Michigan, and it would affect our ability to export a broiler from Mississippi, even though they're separate industries, separate flocks, and they don't really affect each other. So this is something where I think it is really important for the current administration to work together with our trade partners. 

The second big logistical issue is, of course, the challenge of rolling out a vaccine and monitoring its effects across our hundreds of millions of layers in the country.

But I think, in discussions around bird flu, it's important not to be paralyzed by the complexity. One thing that I've noticed in discussions is oftentimes the challenges and the issues surrounding a potential vaccination campaign can take a front seat over what is fundamentally the right thing to do.

If you look to other countries, Mexico and France being two examples, other countries have successfully vaccinated to great effect. And these, in my mind, serve as proof that it is possible and the logistical issues are surmountable. I believe that our current administration, scientific community, and industry can figure out how to successfully protect our flocks through vaccination, and aggressively pursue that option for the common good. 

Business Roundup

• Walmart, the world’s largest retailer, added in-ovo sexing as a focus area in its newest animal welfare policies for its US egg suppliers. Coming just months after the first in-ovo sexed hens were hatched in the US, the development signals continued strong momentum for the technology. Given Walmart’s massive scale—over 30 million hens supplying its predominantly commodity-based egg sales—this move signals that in-ovo sexing technology will expand beyond specialty markets into the broader US egg industry.

• In their January 2025 meeting, the United Egg Producers rolled out its in-ovo sexing certification, called United Egg Producers Certified Hatch Check. This certification verifies that the eggs come from in-ovo sexed hens and that egg farms and packing facilities have proper procedures to segregate Hatch Check eggs from conventional eggs. Producers now have two options for eggs from in-ovo sexed hens, the other being released last quarter by Humane Farm Animal Care, which operates the Certified Humane certification program.

• There was also major news out of Europe this quarter, where in-ovo sexing was classified as compliant with EU organic production regulations. According to Lohmann Deutschland, in-ovo sexing procedures are now permitted at their hatcheries under EU Organic Regulation 2018/848. When the German chick culling ban went into effect in 2022, egg producers initially responded primarily by raising the male chicks for meat, a practice that was costly and unsustainable. By the beginning of 2024, in-ovo sexing had climbed to 70% of the German market, but given that up to 20% of the market was organic, the technology had limited room for further penetration. Some, but not all, organic producers in Germany use even stricter standards than the rest of the EU, so in-ovo still won't be able to achieve 100% penetration yet. However, with the updated EU regulations, more of the organic market can now adopt the technology, paving the way for further expansion across Europe.

• The Dutch Ministry of Agriculture, Fisheries, Food Security and Nature unveiled a roadmap this quarter to end male chick culling for table eggs sold in the Netherlands by 2026. The plan introduced the "ZED" (Without Day-Old Chick Culling) certification as the Dutch equivalent to Germany's "OKT" standard. Most Dutch hatcheries are already equipped with in-ovo sexing technology for the German market, making them well-positioned for this transition.

New Research and Initiatives

• Innovate Animal Ag released our 2024 annual review this quarter. The report digs into how the rapid global adoption of in-ovo sexing in 2024 demonstrated a crucial truth about technological progress–when innovation aligns business success with societal benefits, market forces can drive change faster than regulation. In 2024, we watched this principle unfold across continents as producers voluntarily embraced a technology that improves both animal welfare and the bottom line. You can read more by downloading the report here.

• Perdue Farms became the first major US broiler producer to more widely implement on-farm hatching. Following successful trials, Perdue will begin to deploy NestBorn’s egg placing machines so that chicks can hatch in their rearing environment rather than in traditional hatcheries. This development could signal a broader US industry shift toward this production method that improves both animal welfare and operational efficiency, and is a step towards the Hatchery of the Future.

For more detailed information on in-ovo sexing technologies and their impact on the poultry industry, visit our In-Ovo Sexing Overview. If you are planning on visiting PEAK 2025 in Minneapolis, please reach out to schedule a meeting at contact@innovateanimalag.org.

On Tuesday, the Dutch Ministry of Agriculture, Fisheries, Food Security and Nature announced their roadmap to end male chick culling for table eggs sold in The Netherlands by 2026. The plan, developed in collaboration with the Dutch poultry industry, will prevent the culling of males for the 6 to 7 million hens who are annually hatched to supply Dutch consumers.

Dutch hatcheries are largely technologically prepared for this transition. Most hatcheries in the Netherlands are already equipped with in-ovo sexing machines to supply the German market, where a ban on chick culling has been in effect since 2022.

The Dutch roadmap introduces "ZED" (Zonder Eendagshaantjes Doden—Without Day-Old Chick Culling) as the Dutch equivalent to Germany's "OKT" (Ohne Küken Töten) certification. According to research the ministry commissioned, the additional production cost to farmers is 0.9 cents per table egg.

The government is actively engaging with retailers, food service providers, and manufacturers to build market support. Progress will be monitored through a new database tracking relevant production figures. With its strong existing technical infrastructure and new regulatory framework, the Netherlands appears well-positioned to join Germany and France in the broad adoption of in-ovo sexing for its local market. 

For more detailed information on in-ovo sexing technology and its commercial status, visit our Overview page.

As the egg industry grapples with the emergency of HPAI, and egg industry stakeholders monitor the rollout of NestFresh’s first ever table eggs produced with in-ovo sexing over the next few months, some have recently wondered about the pace of in-ovo sexing’s implementation.

In light of this announcement, one thing is clear: the largest retailers are taking notice, and that signals greater momentum than was previously anticipated. We previously predicted that in-ovo sexing would proliferate throughout the speciality category before jumping to the commodity sector, but Walmart’s announcement suggests in-ovo sexing might start to gain a footing in various segments of the market simultaneously.

In-ovo sexing’s introduction to the US has already demonstrated that progress can seem slow, until sudden acceleration catches the industry off guard. In early 2024, the broad consensus was that in-ovo sexing was years away from the US market. As it turned out, there would be three machines on US soil by the end of the year. Now, Walmart’s announcement illuminates the future for in-ovo sexing in the US, and it is a future where in-ovo sexing completely transforms the US egg supply chain.

Perdue Farms announced today it will implement NestBorn's on-farm hatching technology, becoming the first major US poultry producer to adopt this cutting-edge innovation. After successful trials on the Delmarva peninsula, Perdue will deploy two of NestBorn’s egg placing machines that allow chicks to hatch directly in their rearing environment rather than in traditional hatcheries. Read more about on-farm hatching here. 

This move is particularly significant given recent industry trends. While some US producers have begun reintroducing antibiotics into their operations, on-farm hatching has been shown to dramatically reduce the need for antibiotics - European studies found farms using this technology were 5.6 times more likely to remain antibiotic-free. The production benefits are also substantial, with farms reporting up to 4.4% higher slaughter weights and significantly reduced mortality by eliminating transport and providing immediate access to feed. This aligns with Perdue's commitment to "No Antibiotics Ever" by providing a practical way to maintain antibiotic-free production while driving operational efficiency.

The welfare benefits are equally compelling. Instead of experiencing the stress of hatchery processing and transport, chicks have immediate access to food, water, and appropriate environmental conditions. The technology is already in the process of transforming European poultry production, where over 500 million broilers, or 8% of the market, are now hatched on-farm annually.

For the US poultry industry, Perdue's adoption of this technology could signal the beginning of a significant shift toward production methods that better serve both animal welfare and operational efficiency. As Bruce Stewart Brown, Perdue's Chief Science Officer notes, this innovation represents an important step forward in their mission to "responsibly raise animals for food."

Business Roundup

• The egg producer NestFresh celebrated the first-ever hatch of in-ovo sexed chicks on US soil, marking a historic milestone for the US egg industry. This groundbreaking development was made possible through NestFresh's partnership with Agri Advanced Technologies (AAT), whose Cheggy machine is now operational at Hy-Line hatcheries in Iowa and Texas. NestFresh announced plans to implement in-ovo sexing across their entire product line, with the first eggs scheduled to hit grocery store shelves by mid-2025. The table eggs will be accompanied by a third-party certification from Certified Humane, the first of its kind in the US. This certification will require participants to undergo annual reviews from Humane Farm Animal Care and maintain traceability from hatchery to store shelf. The launch event received significant trade and mainstream coverage, including an article in the Washington Post.

• Respeggt also announced their entry into the US market this quarter through a partnership with Hendrix ISA. Respeggt’s in-ovo sexing Circuit will be installed at Hendrix's Nebraska hatchery in early 2025, with eggs expected to hit store shelves in late summer. Unlike AAT, which can only sex brown layers, Respeggt’s technology is  capable of sexing both white and brown layers. With this announcement, any company in the US now has the capability to source eggs from in-ovo sexed hens, regardless of the color of the eggs, or their genetics supplier.

• Respeggt also unveiled the latest version of their technology this quarter, the Respeggt CQ7000, which features integrated testing capabilities and optimized automation for improved workflow efficiency. Respeggt’s technology, which uses PCR to detect the presence of sex chromosomes, previously required operators to move allantoic fluid samples to a separate area for testing. With this new iteration, PCR analysis happens inline, for a more automated and streamlined process.

• The Innovate Animal Ag team spent two weeks in northern Europe this quarter, visiting hatcheries to witness in-ovo sexing in action. Our recently published Travel Journal describes our three key takeaways from this visit, and digs into our future outlook for this remarkable technology. In Europe, the team also attended Eurotier 2024, one of the world's premier animal agriculture conferences. At the conference, our CEO Robert Yaman delivered a keynote presentation titled "Beyond Commodities: Innovating for Profit and Purpose in Animal Agriculture," highlighting how technologies like in-ovo sexing have a competitive advantage by targeting a problem that society deeply cares about. This thesis was bolstered in short order when Omegga, an emerging in-ovo sexing technology company, won the startup showcase at which the keynote presentation was delivered. Omegga made waves throughout the conference in preparation for their upcoming commercial launch, demonstrating their innovative approach and exhibiting with their large-scale pilot hatchery Gut Averfeld.

New Research

• Innovate Animal Ag released a comprehensive report titled "The Hatchability Crisis". The report reveals that broiler hatchability has declined by 6 percentage points since 2012, representing a significant threat to the industry's efficiency and sustainability. The research explores various potential causes, from COVID-19 disruptions to genetic trade-offs, while also discussing promising technological solutions including advanced disinfection systems and innovative incubation equipment. In the future, in-ovo sexing may play a role in reversing this trend, through enabling the Hatchery of the Future model for broiler products.

For more detailed information on in-ovo sexing technologies and their impact on the poultry industry, visit our In-Ovo Sexing Overview. If you are planning on visiting IPPE 2025 in Atlanta, please reach out to schedule a meeting at contact@innovateanimalag.org.

Last month, Innovate Animal Ag took a two-week trip to northern Europe to visit the birthplace of in-ovo sexing technology. We want to extend our gratitude to everyone we met that took time out of their busy schedules to help us gain a deeper understanding and appreciation of the amazing technological innovations coming out of northern Europe.

We spent the first week visiting hatcheries and farms in The Netherlands, Belgium, and northern Germany. During this tour, we saw operational in-ovo sexing machines from In Ovo, Respeggt, Orbem, and AAT; witnessed an on-farm hatch of new chicks from Nestborn; and visited the headquarters of HatchTech to learn about some ways to improve hatchability in the broiler sector.

During the second week, we attended Eurotier 2024, one of the largest and most important animal agriculture conferences in the world. At this conference, our CEO Robert Yaman gave a keynote presentation titled “Beyond Commodities: Innovating for Profit and Purpose in Animal Agriculture.” The talk focused on how innovation in animal agriculture is particularly difficult due to structural factors in the industry, but startups and innovators can overcome these challenges by aligning their innovation with broader societal values. He compared the tailwinds of technologies like solar energy with the headwinds of technologies like driverless vehicles, arguing that a major determining factor for the success of a technological innovation is how the innovation is viewed by broader society. Robert also argued that animal health and welfare is the most salient and important “social good” component to animal products, which is why it’s Innovate Animal Ag’s focus.

This thesis was perfectly illustrated in the startup pitch competition that immediately followed the talk, where Omegga, an up and coming in-ovo sexing company, beat out 20 other agtech startups for a cash prize. In-ovo sexing solves an important and easily understandable problem in animal agriculture, garnering support from governments, media, NGOs, and other important institutions (like RootCamp, the one running the pitch competition!). This kind of support is crucial for innovating in a difficult industry like animal agriculture.

One of the most enlightening parts of the trip was seeing all of the in-ovo sexing machines in action. Since our staff is based in the US, we’ve had limited opportunities to do this before. A few key learnings from this experience:

• Operational efficiencies at hatcheries with in-ovo sexing machines have been as important as improvements in the in-ovo sexing technology itself. In-ovo sexing machines do not exist in a vacuum. They are brought into an operation that has refined its practices over decades, and they fundamentally restructure its workflow. It’s easy to focus on the key differences between the major technologies or the improvements with the latest versions of machines. But what matters even more is how accurate and fast the machine is in the field, how strong the engineering and automation around the machine are, how easy the machine is to operate, the machine’s labor and space footprint, and how responsive the provider is to addressing problems that inevitably arise. In a competitive market, just having the best technology in the abstract isn’t enough. You also need flawless execution.

• Fitting in-ovo sexing into existing hatcheries is significantly more difficult than designing a new hatchery with in-ovo sexing in mind. When the commercialization of in-ovo sexing began, hatcheries did not have the flexibility to redesign their facilities around this new step in their process. Instead, they often  re-allocated rooms that were previously meant for some other purpose, and even removed equipment like setting incubators whose capacity was no longer needed. Hatcheries were able to make this work, but changing the process in an existing facility is always suboptimal and inefficient. Additionally, retrofitted facilities generally have higher capital costs than purpose-built facilities.

  This is a challenge that resolves on its own over time. Now, if a new hatchery is built, it will be designed with in-ovo sexing in mind at the outset. This will help lower the cost and complexity of in-ovo sexing over the long-term. We already saw this principle in action at the Pluriton Hatchery in Bladel. At this distribution center, eggs are set and in-ovo sexed then shipped to other facilities for hatching. The facility was designed around this process, and its intentional design clearly benefited its process flow. Over time, it’s likely we’ll see more distribution centers like this as the industry transitions to the Hatchery of the Future.

• The future is bright for in-ovo sexing. Cheap, reliable, and fast in-ovo sexing has long been the aspiration of the global egg industry. Such technology has the ability to meet consumer demands and increase efficiencies at the hatchery. In Europe, the market-leading machines are clearly hitting this bar, demonstrating that in-ovo sexing is possible and economical at scale. We also learned more about the innovative plans that leading in-ovo sexing companies have developed to advance their machines to the next level. While the exact path forward is not yet determined, we left Europe even more excited about the future of in-ovo sexing. For one thing, in-ovo sexing has now made it to our home country, after the historic first hatch of in-ovo sexed chicks on US soil earlier this month. In the coming years, we expect in-ovo sexing to become the global norm, fostering a more efficient egg industry that’s better for consumers, farmers, and animals alike.

Respeggt, an in-ovo sexing technology supplier, and Hendrix ISA, a genetics company and hatchery operator, announced that a Respeggt Circuit will be delivered to the US in February 2025. The Circuit will be installed in Hendrix's Grand Island, Nebraska hatchery, which has the capacity to serve 10% of the US layer market.

This announcement marks a significant milestone, as the Respeggt machine will be the first in the US capable of identifying the sex of white layers in addition to brown layers–particularly notable given that white eggs comprise a majority of US production.

"We are very proud to make this first step in the United States.” Edwin Zeller, the Chief Commercial Officer of Respeggt said. At Eurotier in November, Respeggt also unveiled their latest technology, the Respeggt CQ7000. This new machine integrates its testing lab into the Circuit and features an optimized design that enables hatcheries to fully automate candling and post-test sorting in a seamless workflow.

Neal Martin, the General Manager of Hendrix ISA USA is also excited about the partnership. "We found the Respeggt technology to be the most cost-efficient, easily scalable, and capable of delivering the highest number of female chicks on the market. Additionally, Respeggt works for both brown and white genetics, which is, of course, a significant advantage considering the strong performance of our Dekalb White birds."

Robert Yaman, the CEO of Innovate Animal Ag, reflected on this important moment for the US. "The ability to determine sex in white eggs in the US represents a major milestone for our industry," Yaman said. "While there have been some concerns about technologies that require a hole in the eggshell, Hendrix's vote of confidence in the Respeggt system demonstrates that multiple viable approaches still exist in the marketplace. This healthy competition between different technological paradigms suggests that we're still in the early stages of innovation, and the ultimate leading technology remains to be determined. I commend everyone involved in advancing this important work."

This development follows the recent historic hatch of NestFresh's first US in-ovo sexed chicks, which were supplied by Agri Advanced Technology’s Cheggy machine operating at Hy-Line hatcheries in Iowa and Texas. In Europe, Cheggy has been slightly cheaper than other options, but can only identify the sex of brown layers. In-ovo sexing costs for both brown and white layers in Europe lead to less than 1 cent per table egg added on the shelf for consumers. It remains to be seen at what price point producers will sell eggs from in-ovo sexed hens in the US.

The rapid pace of the in-ovo sexing rollout in the US has surprised many industry observers, and it shows no signs of slowing down. In conversations with egg producers, retailers, and food service companies, it's clear that one of their primary focuses has been positioning themselves to secure in-ovo sexed hens and eggs to meet the expected growth in consumer interest.

For more detailed information on in-ovo sexing technologies and their impact on the poultry industry, visit our In-Ovo Sexing Overview.

Today, stakeholders and press gathered to celebrate the first hatch of in-ovo sexed chicks on U.S. soil with an event taking place at an Iowa hatchery. This occasion represents the advent of a new specialty category of eggs for American consumers.

Eggs produced by in-ovo sexed hens will hit American grocery store shelves in mid-2025 under specialty egg producer NestFresh’s label. NestFresh intends to implement in-ovo sexing across its entire egg line in the coming months.

Among the event’s attendees was Innovate Animal Ag CEO Robert Yaman. “This historic moment for the US egg industry is only possible due to the courage and determination of producers like NestFresh to pioneer a better way forward,” Yaman said. “These first chicks hatched on US soil represent the beginning of a future for the industry that is better for consumers, producers, and animals.”

As we announced back in August, the introduction of in-ovo sexing to the U.S. market was made possible by Agri-Advanced Technologies, whose in-ovo sexing machine known as Cheggy is now in use at both the Iowa hatchery and a second location in Texas. The machine uses hyperspectral imaging to determine the color of a developing embryo’s feathers, at an impressive throughput of 25,000 eggs per hour with high accuracy.

This development comes in response to American consumers voicing a clear demand for in-ovo sexing. In a survey commissioned by Innovate Animal Ag and fielded by Nielsen Consumer Insights, 61% of egg buyers reported discomfort with the practice of killing male chicks, and 47% of all consumers said they were “extremely” or “very” interested in eggs produced using in-ovo sexing.

Shoppers who share these opinions will be able to identify eggs produced with this innovative welfare technology thanks to their labeling, namely a certification for Approved Hatchery Operations from third-party welfare auditor Certified Humane.

Certified Humane’s sexing standard is the first of its kind in the U.S. and will require participants to submit to annual reviews from Humane Farm Animal Care. In order to qualify for this certification, producers must avoid male chick culling either through the practice of in-ovo sexing or by instead ensuring that viable male chicks are raised to maturity.

Consumers can rest assured that any eggs labeled as meeting Certified Humane’s Approved Hatchery Operations standard are subject to complete operation traceability, meaning that certified in-ovo sexed chicks and eggs are never mixed with uncertified chicks and eggs as they make their way from the hatchery, to the farm, to grocery store shelves.

As these uniquely high-welfare eggs become available to discerning Americans, it’s only a matter of time before other hatcheries and egg producers get in on the action!

A puzzling trend has emerged in U.S. broiler production. After decades of improvement, hatchability has declined by 6 percentage points since 2012. This steady, significant decline represents a real threat to the industry's long-term efficiency and sustainability.

Today, Innovate Animal Ag is releasing a comprehensive report—the Hatchability Crisis—examining this crisis and uncovering its increasing cost to the industry. To maintain production levels, producers have had to significantly expand their breeder flocks, driving up costs and worsening the industry’s vulnerability to HPAI.

What makes the Hatchability Crisis particularly concerning is that there's no clear consensus on its cause. Our research explores several potential explanations, including COVID-19 disruptions, genetic trade-offs between efficiency and reproduction, aging infrastructure, and the bacteria Enterococcus faecalis. 

The report also explores promising technological solutions already available to producers. These range from advanced disinfection systems to innovative incubation equipment. We also examine how breeder farm management practices, such as optimizing rooster percentages and modernizing nest box systems, could help address the crisis.

This report represents the first step in what we expect will be an ongoing investigation into the Hatchability Crisis. Over the coming months, we plan to dig deeper into various aspects of this issue and share additional insights as we work to understand and address this mysterious decline in US broiler hatchability.

You can read the full report here.

Have you successfully improved your hatchability? Are you a producer who wants to discuss how to improve hatchability in your operation? Have you created a technology to help improve hatchability?  We would love to hear from you at contact@innovateanimalag.org

The length of lay cycles has also generally been increasing around the world. Historically, induced molting has been used to lengthen the period of time in which layers can produce high-quality eggs. However, induced molting could present a number of welfare challenges and is banned in some countries. Fortunately, recent genetic improvements have led to ‘long life’ layers, which can maintain high persistency of lay and egg quality for 500 eggs over 100 weeks.

A recent post from Joice and Hill Poultry, a UK hatchery and distributor for Hendrix Genetics, highlights this dynamic. A flock of hens, hatched in the Joice and Hill hatchery and managed by John and Nicola Peate at Cross Farm, achieved remarkable performance figures of 544 eggs over a 105 week life cycle.

White pullets produced with in-ovo sexing technology cost roughly $3 more than manually sexed pullets in the EU. If we assume a more standard productivity of 350 table eggs per bird, the total cost of in-ovo sexing works out to 0.86 cents per table egg. If, however, in-ovo sexing were used on a flock that reached 544 table eggs, that reduces the cost of in-ovo sexing to 0.55 cents per table egg, a 36% decline.

This additional production cost is significantly less than consumers in US, Latam, and Europe report being willing-to-pay for eggs produced with this in-ovo sexing. Additionally, according to a survey of UK consumers commissioned by In Ovo, nearly half of consumers that would pay more for cull-free eggs would be willing to pay an increase of 10 pence per egg, 20 times more than the added production cost of in-ovo sexing.

This discrepancy between production cost and willingness-to-pay could give rise to a higher-margin, value-added segment of eggs, benefitting every stakeholder in the supply chain. Marketers can drive demand by differentiating themselves with this unique selling point, generating positive media coverage and consumer interest like we’ve seen in the US rollout. Retailers have a similarly significant opportunity, as a notable 44% of UK consumers in the same survey expressed that they would even switch supermarkets to ensure that they were able to purchase cull-free eggs.

All evidence points to the adoption of this technology as a prime opportunity for egg producers to connect with their welfare-conscious consumers and establish their eggs as having even higher standards of production than competitors. But only early adopters can benefit from this competitive edge. UK marketers and retailers should take a lesson from the marketing rush of the US rollout and prepare themselves sooner rather than later for the adoption of this technology. With an opportunity this promising, you either beat your competitors to the punch or get caught napping when they outflank you.

Are you a UK retailer or egg marketer looking to differentiate your brand with in-ovo sexing? Reach out to us at contact@innovateanimalag.org.