The United States is experiencing a resurgence of highly pathogenic avian influenza, commonly known as bird flu, following the country’s worst outbreak in 2022. Last year, the virus spread nationwide, primarily via migratory waterfowl, affecting both backyard and commercial poultry flocks. This led to reduced supplies and increased egg prices.
According to the U.S. Department of Agriculture (USDA), about 13.8 million birds from commercial and backyard flocks have been infected or depopulated since October 2023, with no domestic cases reported in September. The colder months have seen an uptick in bird flu cases.
Cal-Maine, the largest U.S. producer and distributor of fresh shell eggs, reported that it is enhancing production at other facilities to minimize customer disruption. The company has not detected the virus at any other sites and does not plan further updates on the situation until its next quarterly report in January.
Post Holdings, a major player in cereals and consumer packaged goods, experienced incidents at its facilities in Iowa and Ohio, states heavily impacted by the virus. Post Holdings, having acquired several egg producers and brands, including National Pasteurized Eggs, Almark Foods, and Conagra’s Egg Beaters brand, stated that it would not notify the public of every incidence of avian influenza at its facilities. However, it will update investors if the virus affects an additional 5% of its controlled supply.
The return of bird flu has raised concerns among farmers, companies, and consumers, recalling the impact on egg supplies and prices last year. Over 43 million egg-laying hens were lost to the disease or depopulation since the outbreak began in February 2022, as per USDA data. Wholesale egg prices, which began 2022 around $1 per dozen, soared above $5 per dozen during that period due to dwindling inventories.
Currently, a surprising decline in consumer demand for eggs has kept prices relatively low. The USDA noted that in the week of December 8, wholesale prices for cartoned eggs decreased, with consumer demand dropping more sharply than in the previous two years, particularly following the Thanksgiving marketing period.
The ongoing situation with bird flu poses a significant challenge to egg production and supply chains, with major producers like Cal-Maine and Post Holdings closely monitoring and adapting to the evolving circumstances. The impact on the egg market remains a concern for both the industry and consumers as the situation develops.
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