Cage-free egg trend creates pricing concern on both ends

In Nuevo, California, Chris Nichols of Chino Valley Ranchers spoke about shouldering heavy financial losses last year as egg production rebounded just a few years after the wave of avian flu hit the industry. But Nichols is unique: His chickens are cage-free, which makes it even more difficult to compete against the prices that conventional farmers can offer.

CNBC‘s Jane Wells takes a look at how the cage-free egg trend has created a pricing problem for both consumers and producers in the region.