The Humane Society of the United States said it had conducted an undercover investigation that found animal-welfare abuses at an egg supplier for Costco Wholesale Corp., part of a broader push by the organization to urge food producers to revamp livestock-production practices.

Video footage captured by an undercover investigator for the Humane Society and released Tuesday showed egg-laying hens at Pennsylvania's Hillandale Farms confined in small cages containing dead birds. The footage also showed debris from broken eggs attracting flies on the floor.

Costco had no immediate comment, while Hillandale Farms said the "practices depicted on the video do not reflect our high standards."

The investigation comes amid increasing pressure on the food industry to improve living standards for chickens, pigs and other animals. Several major food purveyors, including Nestlé SA and Starbucks Corp., recently have announced plans to phase out the use of eggs from caged hens.

"The American public wants to see animals raised for food treated humanely, and intensively confining them so severely in cages that restrict natural movements and behaviors is out of step with what people expect," Wayne Pacelle, chief executive of the Washington, D. C-based group said on Tuesday.

The video appeared to show birds in so-called battery cages that have been used in the industry for decades. Such cages typically allow about 67 square inches per bird—smaller than a standard sheet of paper.

Hillandale Farms said in a statement that it was compromised by an activist who was hired as an employee and disregarded its farm procedures.

Hillandale said it hired independent experts to review its operations after receiving the video. The review "confirmed our belief that the images in the video reflect an isolated incident," the firm said. It added that it has "put measures in place to improve" its processes and expand employee training.

A U.S. egg-industry trade group said it was troubled by the video. "The video shows operational issues that are not consistent with the federal Egg Safety Rule or with recognized standards and expectations for egg safety and hen care," said Chad Gregory, president of United Egg Producers, which represents companies that sell the vast majority of the nation's eggs.

The Humane Society said Issaquah, Wash.-based Costco said in 2007 it eventually would buy only eggs from cage-free hens. The Humane Society on Tuesday criticized Costco for failing to set a timeline for such plans.

Write to Kelsey Gee at kelsey.gee@wsj.com

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