Egg prices soar due to virus

Bird Flu Blues: Egg prices soar due to virus

JOSH DOOLEY, jdooley@baxterbulletin.com 7:51 a.m. CDT June 15, 2015

Farmers have lost 47 million hens and turkeys since the virus began spreading a few months ago

In the seesaw world of grocery prices, two breakfast favorites have recently switched places for their effect on a shopper's pocketbook.

It's little mystery for consumers that the cost of eggs is significantly rising while the price of bacon has dropped. But why?

Pork prices in general rose in 2013 due to the porcine epidemic diarrhea virus that killed millions of swine. A vaccine was created, herds were inoculated and the population has recovered.


“We’ve seen some rising prices, but we’re just uncertain to what extent they might rise.”
Danny Hughes, Arkansas Livestock and Poultry Commission
With that recovery, pork prices in general, and bacon specifically, have dropped as swine production has increased to more normal levels. The price of bacon has fallen approximately 25 percent, according to CNN.

Meanwhile, the egg industry is dealing with an outbreak of its own. Bird flu, or avian influenza, has rocked the hen house, killing millions of egg-laying birds.

Danny Hughes is the Poultry and Egg Division Manager for the Arkansas Livestock and Poultry Commission, a division of the state's Department of Agriculture.

Hughes has been with the commission since 1972 and seen Arkansas' egg industry go through many changes and face many problems. As for the current flu outbreak, Hughes feels it's uncertain, and far too soon, to assess long-range impact.

"We don't really know how big an impact it's going to make," Hughes said. "We've seen some rising prices, but we're just uncertain to what extent they might rise."

Flu claims hens by the millions

Arkansas' egg industry has fared much better than states such as Iowa and Minnesota, which have seen multimillion bird kills due to the flu.


“This is the most devastating foreign animal disease that has happened in the U.S. for any species.”
Jo Manhart, executive director of the Missouri Egg Council
In fact, according to a report by the Kansas City Star, more than 30 million hens in Iowa have been affected by the outbreak. The virus has taken 9 million in Minnesota, which were mostly turkeys. Overall, farmers have lost 47 million hens and turkeys since the virus began spreading a few months ago.

Bringing the numbers closer to the Ozarks region, the U.S. Department of Agriculture is reporting more than 53,000 birds in Missouri and 40,000 birds in Arkansas have been affected.

"This is the most devastating foreign animal disease that has happened in the U.S. for any species," Jo Manhart, executive director of the Missouri Egg Council, told the Star.

"Right now, companies here in Arkansas are really increasing their bio-security," Hughes said. "They're washing cars and trucks, they're doing foot baths. The plants are only allowing essential personnel in to perform needed work."

Wholesale prices skyrocket

In many places, the price for a dozen eggs in the grocery store has risen by more than a dollar. In the latest USDA Egg News Report released June 8, the combined regional average cost that wholesalers are paying for extra-large eggs is $2.47 per carton, which is well above $1.76 in April.

The breakdown by region for volume buyers is Northeast $2.42, Midwest $2.44, Southeast $2.46 and South Central $2.56. Arkansas, Arizona, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma and Texas all are situated in the South Central region of wholesale suppliers.

More disappointing news was released last week when the USDA forecast egg production this year at 95.9 billion. That's a 4 percent drop from last month's estimates.

Positives on the horizon

Despite the glum outlook, there is good news for increased egg production.

First, heat kills the virus, and outbreaks are expected to slow during the summer months. To that end, the U.S. hasn't experienced a new outbreak in egg-laying hens within the past week.


“The food — the eggs and the foods made with eggs — are safe. The food supply chain is safe.”
Danny Hughes
More importantly, it's a simple matter of numbers and replacing the egg producers.

Hens only take approximately 20-25 weeks to mature to the point where they can produce eggs, according to Hughes. That compares to a minimum of six months before a pig is ready for market and 12 months before cattle are ready.

"Replacing the population and eradicating the flu are the priorities right now," Hughes said. "The producers are working on that."

While consumers watch the prices fluctuate at their local grocery store, Hughes stressed there's one important thing people need to keep in mind.

"The food — the eggs and the foods made with eggs — are safe. The food supply chain is safe," Hughes said. "There hasn't been a human outbreak of avian flu."

http://www.baxterbulletin.com/story/news/local/2015/06/14/bacon-egg-prices/71188438/

Sure enough... the egg prices at least in the Bay Area in California are soaring. Down at a local supermarket the price rose from $1.99 to $3.99 in several days. Whether or not H3N2 - which is the virulent strain infecting birds can spread to humans well yet, it still is decimating the American poultry industry.

Medclinician

arirish wrote: Med- Most of the bird flu we have back here is H5N2 with a little H5N8. Both seem to be High path and destroy entire flocks within days! It's hard to find out which strain is active in an area because the media uses the generic "Bird Flu" label for all of it! I was charging $3.00 a dz. for our farm eggs before this hit and feel guilty charging more now! Kinda feels like profiteering! By the way, welcome back!

Thanks Arirish -nice to be back. As always, there is some of the best tracking of outbreaks and useful information here on the net.