Avian Flu Resurfaces in US Poultry Flock, Raising Concerns for Industry

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The U.S. Department of Agriculture (USDA) has confirmed the first case of avian flu on a commercial poultry farm since April, impacting a flock of 47,300 turkeys in Jerauld County, South Dakota. The resurgence of the highly pathogenic avian influenza (HPAI) raises fears of potential tightening in poultry meat and egg supplies.

Since 2022, the U.S. has witnessed the loss of 58.8 million chickens, turkeys, and other birds to avian flu, leading to record-high prices for turkey meat and eggs last year. The culling of infected flocks is a preventive measure, but it poses challenges to the industry’s supply chain.

Farmers, grappling with the aftermath of significant losses, have been working diligently to rebuild their flocks and increase supplies. However, the recent outbreak threatens these efforts, with potential implications for inflation and consumer costs.

Cal-Maine Foods, the largest U.S. egg producer, reported a 48% drop in the average price of conventional eggs from last year, reaching $1.24 per dozen in the quarter ending on September 2. The company’s total net sales also fell by 30% to $459.3 million in the same quarter.

The uncertainty persists as HPAI continues to be present in the wild bird population, with the upcoming fall migration season posing additional risks. Wild birds, particularly ducks, are carriers of the virus. Before this recent outbreak, U.S. infections were confined to live bird markets and “non-poultry” birds since April, according to USDA records. The last commercial farms affected in April raised turkeys in South Dakota and North Dakota.

The poultry industry now faces challenges in managing and preventing the potential spread of avian flu, highlighting the ongoing importance of vigilance and biosecurity measures.