Mainland Poultry Ltd director Hamish Sutherland said Zeagold Foods, the egg production business of Mainland Poultry, was building a free-range chicken farm to produce eggs to meet increasing customer demand, including from fast food giant McDonald's.
The farm was being built in McKerrow Rd in Waianakarua, between Hampden and Herbert, and was expected to be producing eggs within the next month.
The facility was expected to have 16,000 hens, probably in four flocks.
''There is potential to build it bigger but we can't get ahead of ourselves. We've got to maintain the supply level, in balance with demand.''
The facility employed two staff and more would be employed as production increased, he said.
McDonald's announced yesterday it would introduce free-range eggs in all its outlets by the end of next year.
The decision had been coming since 2009, when McDonald's restaurants in Christchurch and Dunedin started cracking into the cage-free egg option.
The decision means McDonald's will buy about 9% of all the free range eggs sold in New Zealand annually, or about 13million eggs a year.
Mr Sutherland would not reveal how many eggs Zeagold Foods would supply McDonald's because it was commercially sensitive.
To put the consumption figure in perspective, 75% of eggs sold in supermarket were from hens in cages or colony housing, Mr Sutherland said.
''Pricing is still pretty important to consumers.''
But the free-range market was growing and the demand was changing the balance of production methods, he said.
''We have to respond to what the market is looking for and produce that or else we are not going to be around for too long,'' Mr Sutherland said.
McDonald's New Zealand managing director Patrick Wilson said McDonald's had moved away from eggs from caged hens because its customers asked it to.
The 18-month rollout to selling free-range eggs was to ensure it was sustainable for McDonald's egg suppliers.
''We purchase a substantial amount of eggs a year ... so in order to keep up with demand, our egg suppliers will be investing significantly in new farms and farming systems.''
- Shawn McAvinue & NZME
