Because of animal welfare concerns in the EU, from 2012 only enriched cages will be allowed for the housing of laying hens (Council Directive 1999/74/EC). Production in enriched cages will increase the production cost of eggs. At the same time the World Trade Organisation (WTO) has launched a new round of negotiations to further liberalise trade in agricultural products. This report provides the results of a study on the impact of the EU Directive for EU egg processors. Within several scenarios, the increase in production costs (enriched cages) are combined with different levels of import levies and currency exchange rates. In general it can be concluded that in 2012 EU countries cannot compete on their home market for egg products with countries such as Ukraine, United States, Brazil and India.