Post Holdings said Wednesday that outbreaks of avian influenza at two third-party facilities have caused a nearly 14% drop in egg supply for big consumer brands, adding to the growing toll of avian influenza as it sweeps poultry and dairy operations across the United States. .
Contracted flocks in Minnesota and Iowa have tested positive for the virus, affecting about 5.7 million laying hens, according to the St. Louis-based Post. The outbreak is another setback for Post-owned Michael Foods, the largest value-added egg processor in the U.S. and a major supplier to restaurants and food service providers.
The company confirmed its full-year outlook, saying the financial impact from the outbreak is within guidance. This guidance does not include significant spread of avian influenza across the Post network.
This is the second time in the past six months that an outbreak has been reported at Michael Foods' parent company. Incidents at other third-party facilities resulted in the deaths of approximately 4.2 million egg-laying hens (about 10% of the supply) in December.
U.S. egg production fell in April for the first time in months as the rapid spread of avian flu hit supplies and threatened consumer prices, according to the Department of Agriculture. Herbruck's Poultry Ranch, one of the country's top egg producers, laid off 400 employees after an outbreak earlier this month devastated its flock.
The USDA said about 92.4 million birds have died since the outbreak began in February 2022. A major outbreak was reported last week. Iowa Gov. Kim Reynolds signed a state of emergency after avian flu affected 4.2 million birds on egg farms.
In Minnesota, an outbreak occurred at a farm in Meeker County on May 21, affecting about 1.4 million birds, according to USDA data.
The increasingly severe outbreaks have spread from birds to wild mammals, livestock and, in three cases, humans. A second agricultural worker this month contracted avian influenza from a sick dairy cow, prompting the USDA and the Centers for Disease Control and Prevention to increase protection guidance and support for farms.
