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Diving overview:
- Consumer food giant Post Holdings said an avian flu outbreak at one of its subsidiaries had affected 12% of its egg supply. This is because the spread of the virus accelerated last December and prices also rose.
- Michael Foods, the largest processor of value-added eggs and a subsidiary of Post Holdings, reported: Avian flu at one of our third-party facilities In Iowa, 4.5 million birds died.
- The outbreak has affected about 12% of the post’s laying hen supply, according to the release. Management said it believed the loss was within its fiscal 2025 outlook.
Dive Insights:
The outbreak at Michael Foods is one of hundreds that have affected commercial egg operations over the past year, with a recent surge in cases. force a price increase During the high-demand holiday baking season.
Losses were caused by an avian flu outbreak and several facility fires during the summer. 36.5 million hens laying eggs Egg markets have expanded across 12 states so far this year, according to the U.S. Department of Agriculture’s latest egg market overview.
About 38% of these losses occurred after November 1, which led to sharp price increases “reminiscent of the 2022 season, which recorded the highest prices on record,” the researchers said.
Wholesale prices peaked at about $5 per dozen in 2022, according to the USDA. Prices now average about $4 per dozen, up from less than $3 in October.
Michael Foods, responsible for brands such as Abbotsford Farms and Easy Eggs, has been dealing with several avian flu issues over the past year.
In May, the disease struck two third-party facilities in Minnesota and Iowa, affecting about 5.7 million hens. 14% of Post supply. This company in December last year About 10% loss The supply comes from outbreaks in Iowa and Ohio.
The Post will not provide any future updates on the outbreak unless losses exceed an additional 5% of its controlled supply of hens, the company said.
Avian flu has devastated traditional laying hens and, unlike in previous years, is now sweeping through cage-free and certified organic operations and disproportionately affecting prices in cage-free states like California.
The disease has also infected dairy cattle, pigs and humans in the United States, raising fears of a potential avian flu pandemic if its spread is not contained. The USDA recently issued the following order: increased milk testing Sharing information to better monitor the situation nationwide.
Dozens of people inside California People tested positive for the virus after coming into close contact with an infected animal, with the first human cases appearing in the following states: louisiana and Oregon in recent weeks.
