Post Holdings, a consumer foods giant, recently announced that an outbreak of bird flu at one of its subsidiaries has impacted 12% of its egg supply. The spread of the virus accelerated in December, leading to higher prices for eggs. Michael Foods, the largest processor of value-added eggs and a 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 from the company. Despite the losses, executives believe they are within the range of their fiscal year 2025 outlook.
Michael Foods’ outbreak is just one of many affecting commercial egg operations over the past year. A surge in bird flu cases has forced prices upward, especially during the demand-heavy holiday baking season. The loss of 36.5 million egg-laying hens across 12 states has contributed to the price increase, with wholesale prices currently averaging about $4 per dozen, up from less than $3 in October.
Michael Foods has faced several bird flu challenges over the past year, including outbreaks in Minnesota and Iowa that affected 14% of Post’s supply and losses of about 10% from outbreaks in Iowa and Ohio. The company has stated that it will only provide future updates on the outbreak if losses exceed an additional 5% of its controlled supply of hens.
Bird flu has not only affected conventional egg-laying hens but has also spread to 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, raising concerns of a potential bird flu pandemic if the spread is not contained. The USDA has ordered increased milk testing and information sharing to better monitor the situation nationwide.
Human cases of bird flu have been reported in California, Louisiana, and Oregon, with dozens of people testing positive for the virus after close proximity to infected animals. It is essential to closely monitor the situation and take necessary precautions to prevent further spread of the disease.
