The upper house committee - dominated by non-government MPs - has also made a number of recommendations relating to product labelling and hen welfare.

Committee chair Emma Hurst said the inquiry's report - released on Wednesday - was the product of more than 14,000 submissions which "overwhelmingly" called for an end to conventional caged egg production.

"(We) agreed that all egg systems had welfare issues for hens," the Animal Justice Party MP said in a statement.

"Additionally, the committee was not convinced that the market is an appropriate regulator of animal welfare, despite the pressure placed on egg producers by the major supermarkets to move away from cage production methods.

"Ultimately, the committee gave its in-principle support to a legislated phase-out of conventional cages in egg production."

The report recommends a working group be established to advise "on the appropriate time-frames for the transition away from conventional cages and the industry assistance necessary to support that transition".

There's also a call for the development of a national information standard to ensure consumers buying products containing eggs know whether they came from cage, barn or free-range hens.

The committee further wants an agreed national definition of "furnished cages" which Egg Farmers of Australia and NSW Farmers propose transiting too.

Those bodies argue they should include 550 square centimetres per bird, a scratch rail, perch and nest area.

But the RSPCA wants furnished cages to include 750 sq cm per bird plus nest boxes, perches and scratch-pads.

Ms Hurst - who's opposed to all cages - said 550 sq cm per hen wasn't enough room.

"(In this situation) she can't walk, can't flap, ruffle, preen or even turn around," Ms Hurst told AAP.

"I'm deeply concerned industry will tell consumers that conventional cages are being phased out when in reality these new so-called furnished cages will be no better and, potentially, worse than the conditions hens are in now."

The committee chair attacked the government and Labor opposition for refusing to back an enforceable, legislated, time-based phase-out of all cages.

The NSW Department of Primary Industries says a 10-year phase-out of conventional cages would cost $655 million while a 20-year phase-out would cost $332 million.

NSW Farmers egg committee chair Brett Langfield on Wednesday said it was "just not possible" to undertake change quickly.

Committee member and Greens MP Abigail Boyd wrote a dissenting statement in which she expressed disappointment in the "lukewarm recommendations".

"Although there was disagreement over whether the market or regulation should dictate when caged eggs should be phased out, it was clear from industry representatives that demand for caged eggs was declining," she said.

NSW is Australia's largest egg producer with approximately 33 per cent of Australia's 21.8 million layer hens kept on farms in the state.

Western Australia has supported a phase-out of conventional cages over 10 years with no new conventional cages to be installed from 2019.

Australian Associated Press