Bird flu roils poultry industry, raising concern over egg prices ahead of Easter

More than 2 million birds were killed in California over the last month as producers across the globe struggle once again to control the rapid spread of the virus.

Published Feb. 2, 2024

By 

Nathan OwensReporter

A chicken peers out in a barn as new outbreaks around the world cause concern.
A chicken peers out in a barn as new outbreaks around the world cause concern. Paula Bronstein via Getty Images

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A deadly wave of bird flu has infiltrated commercial farms throughout the U.S. and is devastating poultry growers in California. Once again, in what seems like a repeat of this time last year, the spread threatens to raise egg prices ahead of Easter.

Approximately 1.96 million birds raised for domestic meat or egg consumption in California were culled in January alone to prevent the spread of highly pathogenic avian influenza, according to the U.S. Department of Agriculture. Detections were found at seven commercial chicken, egg or turkey farms.

The monthly uptick is more than half of all the birds affected by the virus in California since October 2023, according to the data. Most of the commercial cases are contained to four counties, including Sonoma County, where local officials declared a state of emergency following two detections in early December.

As cases continue to climb and more birds are depopulated, Brian Earnest, a protein analyst with CoBank, said it will be difficult to replace the amount of poultry and eggs leaving the market, especially in California where there are cage-free laws that prohibit sourcing from conventional eggs.

“Overall, the market hasn’t seen much impact yet,” Earnest said. Retail and wholesale prices have seasonally weakened after growers rebuilt their flocks and production improved following the worst poultry disease outbreak on record. However, after months without any bird flu detections, the U.S. market outlook has grown murky again with HPAI’s reemergence in fall 2023.

Typically, egg production picks up at the end of the year, when consumers are doing a lot of baking and cooking for the holidays, Earnest said. After that, production winds down to give the industry a sigh of relief and an opportunity for some retooling. But prices could rise once demand picks up again in March, Earnest said, “especially if bird flu continues to be a detriment to the overall supply.”

“I expect as we get closer to Easter to be in a tight supply situation,” he said. “Those cage-free markets are going to see more shelves that are empty compared to other markets.”

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