A resurgence of avian influenza, commonly known as bird flu, is wreaking havoc on poultry farms worldwide, sending egg prices spiraling upward once again.
The Avian Influenza Pandemic
This highly contagious and deadly virus has decimated egg farms in the United States, Japan, and other nations. In the U.S., more than 14 million egg-laying chickens have succumbed to the outbreak in November and December alone.
David Anderson, a professor and food economist at Texas A&M University, explains, “The surge in egg prices is directly linked to HPAI (highly pathogenic avian influenza) hitting egg farms and reducing egg production.”
Rising Global Prices
The impact of avian flu is not limited to the U.S. Countries like the EU, Russia, South Africa, India, and Nigeria are also facing unprecedented price increases for eggs.
In Japan, a major egg consumer, prices have surged over 20% in recent months due to bird flu outbreaks infecting hundreds of thousands of hens.
Other Contributing Factors
While bird flu is the primary culprit behind the egg crisis, other factors are also contributing to the price hike:
- Increased demand: Egg consumption has risen as consumers seek alternatives to expensive meat.
- Extreme heat: Soaring temperatures in Mexico have caused heatstroke deaths among hens.
- Supply chain disruptions: The war in Ukraine has exacerbated supply chain issues, affecting egg production and transportation.
Consumers Respond
Faced with escalating egg prices, consumers are adapting to the situation:
Some are hoarding eggs, anticipating future price increases. Others are freezing eggs for long-term storage, taking advantage of their indefinite safe storage life.
In Norway, where an egg shortage hit during Easter, some residents traveled to neighboring Sweden to secure their egg supplies.
Economic Consequences
The egg price surge has significant economic implications:
Increased production costs: Poultry farmers are facing higher expenses for feed, medication, and disease prevention measures.
Consumer burden: Egg-dependent households are facing increased food costs, putting a strain on their budgets.
Business impacts: Bakeries and other food-related businesses rely heavily on eggs, and the price increase can erode their profitability.
Outlook
The extent of the bird flu outbreak and its impact on egg prices remain uncertain. However, experts believe that prices will remain elevated for the foreseeable future.
The industry is working to contain the virus and prevent further spread. In the meantime, consumers will need to adjust to higher egg prices or seek alternative egg sources.
