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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Charlie Pellett and we've got stocks trading mixed. SMP

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Speaker 1: Word Breaking news desk for today's afternoon call. And here

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Speaker 1: he is Bill Maloney. Good afternoons, Charlie. It's been a

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Speaker 1: quiet day for the main U s averages with the

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Speaker 1: Dow currently lowered by thirty two points. SUPs Game three

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Speaker 1: in NAZAC rises five, the small cap six under rises

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Speaker 1: one point, and the US ten yield drops to one

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Speaker 1: point for five percent. Seven out of ten sub sectors

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Speaker 1: are higher lit by games and telecomm, utilities and energy, materials,

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Speaker 1: Industrials and financials fell down, DRAN sports drop thirteen, as

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Speaker 1: a by text rise twelve, Utilities climbed four, and the

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Speaker 1: vix is down by five percent. Down Leaders and Procter

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Speaker 1: and Gamble, Verizon and Microsoft, well like some mobile, McDonald's

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Speaker 1: and Visa led to the downside. Live from the First

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Speaker 1: Breaking news that stom Bill Maloney. Charlie all right, hey,

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Speaker 1: thank you very much, Bill Maloney. Enjoy your weekend, and

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Speaker 1: here live breaking news over your Bloomberg tipe Squawk SQ

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Speaker 1: you a w K on your terminal. I'm Charlie Pellet

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Speaker 1: and that's a Bloomberg business flash. You're listening to taking

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Speaker 1: stock with pim Box and Kathleen Hayes on Bloomberg Radio.

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Speaker 1: The egg industry, the egg industry is a ten billion

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Speaker 1: dollar a year business and just in April alone, more

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Speaker 1: than seven billion eggs were produced in the United States.

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Speaker 1: But what kind of eggs? Well, here to tell us

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Speaker 1: is the co founder of Handsome Brooke Farm, Betsy Babcock,

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Speaker 1: and she joins us now, Betsy, thanks very much for

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Speaker 1: being with us. It's my pleasure. Thank you. Before we

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Speaker 1: get into the details of comparing one kind of egg

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Speaker 1: production to another, I'm just warning if you could give

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Speaker 1: us some background and explain how did you become a

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Speaker 1: farmer an egg farmer? I would say that I am

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Speaker 1: the accidental eggs farmer. We started um Handsome Brook Farm

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Speaker 1: back in two thousand and seven as a farm state

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Speaker 1: that in breakfast at Upstate New York, and we were

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Speaker 1: about three and a half hours from New York City,

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Speaker 1: and our customers who would come stay with us were

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Speaker 1: raving about our eggs. And what we learned quickly was

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Speaker 1: what made our eggs different from what they could get

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Speaker 1: in the grocery store was that our chickens were actually outdoors,

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Speaker 1: eating bugs and grass and outside, and that makes a

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Speaker 1: huge difference in terms of quality and taste in the egg.

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Speaker 1: And so from two thousand and seven until now, we

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Speaker 1: have formed a model where we work with other small

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Speaker 1: farms who produce eggs with chickens that are going outside

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Speaker 1: eating bugs, and market it at Handsome Brook Farm past

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Speaker 1: your raised eggs. So it's been very exciting. Matt Miller

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Speaker 1: here joining pen to day. I love eggs, and when

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Speaker 1: I go to the store, I want to buy eggs

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Speaker 1: that aren't from chickens who suffered some kind of horrible

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Speaker 1: baraca kind of life, you know. So I always try

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Speaker 1: and get eggs that say they're organic, that their cage free,

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Speaker 1: and that they're free roaming. I imagine my chickens walking

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Speaker 1: around and pecking it stuff. Those chickens you're telling me

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Speaker 1: are actually raised in a barn crowded in with fifty

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Speaker 1: two hundred thousand other chickens. Is that true? That is

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Speaker 1: corrected so many cases in a cage free environment. Even

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Speaker 1: though it's sounds perhaps like the chickens are going outside

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Speaker 1: in being chicken like outside, unfortunately the case in most

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Speaker 1: cases that those chickens are confined with about one square

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Speaker 1: foot of space inside and no u no outdoor engagement

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Speaker 1: at all. And the same can go for free range

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Speaker 1: is a very broad term. Pre range chickens may never

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Speaker 1: step foot outside, or in some better cases, they may

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Speaker 1: have a little bit of outside area. But there's no

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Speaker 1: legal definition or requirement for a free range chicken to

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Speaker 1: spend outside on pasture. So your chickens are pasture, your

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Speaker 1: eggs are pasture raised. That means your chickens are actually

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Speaker 1: walking around outside in the sunlight. Is there some kind

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Speaker 1: of regulation um that guarantees me when I go to

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Speaker 1: a store and I see pasture raised that I know

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Speaker 1: that this chicken lived a pretty decent life. There's no

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Speaker 1: legal definition or no federal regulation for pasture raised. What

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Speaker 1: we do now, we started doing this in this year,

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Speaker 1: actually is participating in the American Humane certification process. And

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Speaker 1: so when you see a pasture raised egg, that has

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Speaker 1: an American Humane logo on it. That means that they

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Speaker 1: are meeting specific outdoor requirements and so you can have

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Speaker 1: some assurance that those chickens are actually going outside on vegetation,

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Speaker 1: not just on a concrete patio, but outside on vegetation. Betsy,

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Speaker 1: what's the difference between pasture raised conventional eggs and pasture

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Speaker 1: raised organic eggs? For we, we carry both. We offer both.

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Speaker 1: Most of the eggs that we sell our pasture raised organic.

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Speaker 1: We have some that are pastor raised conventional, which is

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Speaker 1: actually how we started um. And the difference for us

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Speaker 1: is really the pastures themselves are both not sprayed and

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Speaker 1: could qualify, you know, as an organically grown pasture. There's

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Speaker 1: no sprayer, herbicides. But the difference is the feed that

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Speaker 1: they get, because even chickens that are outside on pasture

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Speaker 1: need to have some supplemental feed. So for pasture raised organic,

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Speaker 1: the feed that we provide our chickens is organic feed,

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Speaker 1: certified organic feed. For the conventional pasture raised that feed

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Speaker 1: is not certified organic. So the differences in the feed.

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Speaker 1: What about the price, any any differences in price? Yeah,

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Speaker 1: the price for organic again for us runs about fifty

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Speaker 1: to seventy a dozen more than the price for the

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Speaker 1: conventional and that's because of the difference between the cost

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Speaker 1: of the organic feed versus a conventional feed. But one

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Speaker 1: one interesting now perhaps is that even though the organic

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Speaker 1: pasture raised are a little bit more expensive, most of

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Speaker 1: our our sales are the organic. People are willing to

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Speaker 1: pay more for pasture raised organic. Yeah. I was gonna

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Speaker 1: ask about that. I mean, for me when I go

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Speaker 1: to the grocery store, I don't. I mean, I'll pay

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Speaker 1: as much as I have to, uh to get that

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Speaker 1: image of a chicken getting its beak melted off out

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Speaker 1: of my mind. Um, to your customers care, I mean,

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Speaker 1: our price is elastic at all, they do care. I

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Speaker 1: mean philosophically, we really want to make our eggs as

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Speaker 1: affordable as possible for customers, so we do not gouge

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Speaker 1: on our pricing to customers. Um. But people are willing

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Speaker 1: to pay for the quality and for the animal welfare,

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Speaker 1: so they will pay a premium for a pastor raised

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Speaker 1: organic egg over a free range or a cage free X.

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Speaker 1: I wish you could do it, Bacon. I wish you probably, Betsy. Betsy,

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Speaker 1: thanks so much, really appreciate you joining US, and I

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Speaker 1: think it's a fascinating topic that a lot of people

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Speaker 1: really do care about. So, uh, there you go. Pasture

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Speaker 1: raised eggs are the ones that you probably want to get.

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Speaker 1: Betsy Babcock is the co founder of Handsome Brook Farm

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Speaker 1: and they sell those eggs, and she gave us all

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Speaker 1: the info that we probably could have could have learned

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Speaker 1: in in at ten minute interview on eggs. Pim This

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Speaker 1: is taking Stock. I'm Matt Miller filling in for Kathleen

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Speaker 1: Hayes today with PIM Fox. This is Bloomberg coming up

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Speaker 1: on taking stock. Bill Fitzpatrick, global equity analyst at Manu

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Speaker 1: Life Asset Management, given us his perspective on the Bank

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Speaker 1: of Japan and investing in equities outside the United States

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Speaker 1: of