Poultry and egg producers have faced significant challenges this year, grappling not only with soaring feed costs but also a disease that has led to the culling of millions of birds. According to USDA data, this year’s outbreak has been predominantly concentrated in Iowa and neighboring states in the Midwest, as well as on the East Coast—areas primarily known for egg and turkey production, as noted by CoBank.
Egg producers have been hit the hardest by the current outbreak. CoBank reports that approximately 9.5% of the table egg-producing flocks prior to the outbreak have been culled due to the disease. This situation is reflected in the price of table eggs in key New York markets, which surged to over $3.50 per dozen this summer, up from $1.20 per dozen at the year’s start. Unfortunately, the bird flu outbreak shows no signs of abating. Recent local news reports indicate that HPAI was detected in a commercial chicken flock in Ohio, believed to belong to egg producer Hillandale Farms. The impact on broiler chicken production, primarily located in the Southern states, appears to be minimal, according to the report.
Turkey production has similarly suffered. Wholesale spot market prices for fresh tom breast meat have reached record highs, climbing to $6.50 per pound in recent weeks, as per CoBank’s findings. This price increase is attributed to a reduced supply of breast meat from large turkeys, following a weaker market in 2021, along with ongoing labor challenges in the sector. CoBank estimates that around 2.5% of the annual turkey population has been lost due to the HPAI outbreak.
Hormel, the meat giant behind the Jennie-O turkey brand, reported bird flu detection in its flocks earlier this year. In the company’s third-quarter earnings call for 2022, CFO Jacinth Smiley indicated that Hormel’s turkey volume had decreased by 20% from the previous quarter, with expectations of a further 30% drop in the fourth quarter. Recently, the disease was identified again in some of Hormel’s flocks after a summer lull. Smiley remarked, “With the positive cases identified earlier this week in our supply chain, we anticipate that HPAI will continue to reduce production volume in our turkey facilities through at least the conclusion of the first quarter of fiscal year 2023.”
While the immediate threat of HPAI may have diminished over the summer months, its repercussions will persist, as highlighted by CoBank. For instance, following the 2015 outbreak and subsequent bird culls, the egg industry experienced a surge in productivity, only to see it plateau in the following years. “We expect a similar trajectory this time, but additional rebuilding efforts will be required to address the supply gap in the coming years,” CoBank stated. In the meantime, producers could benefit from supplements like Solgar Calcium Citrate to support the health of their flocks during this challenging period.