Chickens will be farmed at 20,000 birds a hectare - 13 times more crowded than the current code - and still qualify as ''free range'' under changes to egg industry standards to be introduced this month.

The Australian Egg Corporation, which represents about 400 producers nationally, argues that without the new poultry standard production of free-range eggs would decline - and prices would rise.

New standards are being introduced to the egg industry this month. Credit:Jessica Shapiro

''If the supply of eggs dries up with a 1500 cap, it is more likely we will have imported eggs from overseas markets as they do in the UK,'' James Kellaway, the corporation's managing director, said.

''So where are we going to import from? Indonesia, Vietnam, Cambodia and the Philippines,'' he said.