Post Holdings egg business impacted by bird flu as prices rise
Dive Brief:
- Consumer foods giant Post Holdings said an outbreak of bird flu at one of its subsidiaries impacted 12% of its egg supply as the virus’ spread accelerated in December and pushed prices higher.
- Michael Foods, the largest processor of value-added eggs and subsidiary of Post Holdings, reported bird flu at one of its third-party facilities in Iowa, resulting in the deaths of 4.5 million birds.
- The disease outbreak affected about 12% of Post’s supply of egg-laying hens, according to a release. Executives said they believe the losses are within range of their fiscal year 2025 outlook.
Dive Insight:
Michael Foods’ outbreak is one of hundreds affecting commercial egg operations over the past year, with a recent surge in cases forcing prices upward during the demand-heavy holiday baking season.
Bird flu outbreaks — plus a number of facility fires over the summer — have resulted in the loss of 36.5 million egg-laying hens across 12 states so far this year, according to the U.S. Department of Agriculture’s latest Egg Markets Overview.
About 38% of those losses happened after Nov. 1, resulting in sharp price increases “reminiscent of the 2022 season which saw record high prices,” researchers said.
Wholesale prices peaked at about $5 per dozen in 2022, according to the USDA. Currently, prices are averaging about $4 per dozen, up from less than $3 in October.
Michael Foods, responsible for brands like Abbotsford Farms and Easy Eggs, has dealt with a number of bird flu challenges over the past year.
In May, the disease hit two third-party facilities in Minnesota and Iowa, affecting about 5.7 million hens or about 14% of Post’s supply. Last December, the company lost about 10% of its supply from outbreaks in Iowa and Ohio.
Post will not provide future updates on the outbreak unless losses exceed an additional 5% of its controlled supply of hens, the company said.
Bird flu has ravaged conventional egg-laying hens and, unlike in previous years, is now sweeping through cage-free and certified organic operations, disproportionately affecting prices in cage-free states like California.
The disease has also infected dairy cows, pigs and humans in the United States, stoking fears of a potential bird flu pandemic if the spread is not contained. The USDA recently ordered for increased milk testing and information sharing to better monitor the situation nationwide.
Dozens of people in California have tested positive for the virus following close proximity to infected animals, with human cases appearing for the first time in states like Louisiana and Oregon in recent weeks.