Bird flu epidemic inflates egg prices

By Andi Anderson

The resurgence of avian flu in major poultry-producing states like Iowa and Minnesota is causing alarm within the U.S. agriculture sector, with egg prices experiencing a notable rise.

According to a recent USDA report, the price of a dozen large eggs in the U.S. last week averaged $2.56, marking a significant increase from the previous year.

The bird flu outbreak has led to the culling of millions of birds in an effort to control the spread of the virus, notably affecting over 6 million birds in the last 30 days. This massive reduction in poultry numbers is directly impacting egg production, with notable declines over recent months.

Lee Schulz, a professor and extension economist at Iowa State University, explained to Newsweek that typically 86 to 88% of eggs are consumed directly, with the remainder used to replace laying hens. The current situation may force producers to redirect more eggs to consumer markets temporarily, a move that isn’t sustainable long-term.

The economic ramifications are significant, with egg prices predicted to rise by 62% in the second quarter of 2024, as forecasted by the USDA. This increase is due to reduced egg availability and inflated production costs resulting from flock losses.

The broader economic climate, including post-pandemic inflation affecting transportation and energy costs, is further compounding the issue.

Despite concerns, the media and health experts have reassured the public that poultry products remain safe to consume. The CDC has confirmed that while the risk to the public from the current avian flu outbreak remains low, those involved in poultry farming are at increased risk.

This situation is under close surveillance by the USDA, which continues to collaborate with state and industry partners to enhance biosecurity measures and prevent further spread of the virus.

While egg prices currently remain below the highs seen in December 2022, the ongoing impacts of the avian flu outbreak are likely to influence market conditions and pricing significantly in the coming months.

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