Washington
CNN
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Egg costs have now been steadily rising for months, and your omelette may grow to be much more costly as poultry farms across the nation take care of an outbreak of fowl flu.
The common value of a dozen Grade A big eggs was $3 in February, in response to the newest Shopper Worth Index, up from round $2 within the fall. Whereas egg costs are down from a report $4.82 in January 2023 — after a widespread fowl flu outbreak ravaged farms within the prior yr — they’re now on the highest degree since April 2023.
And it could not get higher anytime quickly.
Cal-Maine Meals, America’s largest egg producer, stated earlier this week that it culled about 1.6 million hens and 337,000 younger chickens after some examined optimistic for a “extremely pathogenic avian influenza” at one of many firm’s amenities in Texas, Cal-Maine stated in a launch. The corporate produces manufacturers similar to Farmhouse Eggs, Sunups, Sunny Meadow, Egg-Land’s Greatest and Land O’ Lakes eggs.
“Manufacturing on the facility has briefly ceased,” the corporate stated. “[The virus] remains to be current within the wild fowl inhabitants and the extent of attainable future outbreaks, with heightened threat in the course of the migration seasons, can’t be predicted.”
As egg costs reached a report early final yr, Cal-Maine, which controls about 20% of the market, reported a number of months later that its revenue doubled and profit surged 718%.
The culling represented about 3.6% of the corporate’s whole flock as of early March. Cal-Maine didn’t instantly reply to CNN’s request for touch upon what the fowl flu outbreak means for its egg costs.
Fowl flu has been detected at different farms throughout the nation. Michigan’s Division of Agriculture and Rural Improvement announced Tuesday that it discovered proof of fowl flu at a industrial poultry facility in Ionia County. Final month, the virus was detected in animals at farms in Texas, Kansas and Minnesota.
“The present threat to the general public stays minimal,” Texas Agriculture Commissioner Sid Miller stated in an announcement. “It is crucial for us as an business to take care of a excessive degree of vigilance. State and nationwide businesses will proceed to supply up to date steering as developments warrant.”
If egg producers aren’t capable of sustain with demand as a result of they’ve needed to cull animals as a consequence of fowl flu, then that may elevate costs. Firms, nonetheless, do attempt to mitigate these results, nevertheless it’s unclear if that might be sufficient to stop value hikes altogether.
“Cal-Maine Meals is working to safe manufacturing from different amenities to reduce disruption to its prospects,” the corporate stated.