Bakery manufacturers face the threat of rising egg prices - and even shortages - when new Europe-wide animal welfare legislation comes into force on 1 January.

But they could avoid taking a hit by specifying egg replacers instead, according to Arla Foods Ingredients.

The Welfare of Laying Hens Directive will ban the use of cramped battery cages, forcing egg producers to use larger ‘enriched' cages that allow laying hens more space to perch and move around.

However, as many as 13 countries across the European Union, including Spain, Italy and Poland, have admitted that their egg industries will not be ready to meet the new requirements in time for the New Year - sparking fears of availability problems and higher prices.

The looming crisis has prompted Arla Foods Ingredients to urge bakery manufacturers to consider using egg replacement products - such as NUTRILAC - to protect themselves from growing uncertainty in the market.