It is both.
There is no separate middle supply chain in eggs. I buy the baby chick and I deliver finished product to the retail store. There are 320,000,000 egg laying hens in the US. 55% goes to retail, 12% goes to food service, and 33% gets turned into liquid egg for ingredients, patties, restaurant, QSR etc. Of those 320,000,000 about 86mm are cage free.
If you assume that retail demand is up 20%(to 66% of the total supply) that would require an 2,300,000 million egg cartons per day. The machine capacity to wash, inspect, and sort all those eggs is stretched to the limit.
The demand for the 45% of eggs that went to liquid and food service is down by 40% - 90% depending upon segment. Some of those eggs can shift over, but the barriers are significant.