Bird Flu Outbreak Plunges US Egg Production To 7-Year-Low

Via ZeroHedge

Avian influenza has already impacted more than 37 million birds across 34 US states this year. The fast-spreading virus has sent the production of eggs tumbling and prices at the supermarket soaring.

Bloomberg reports the production of US eggs in April plunged as millions of egg-producing hens were slaughtered to mitigate the virus’ spread. The latest data from the USDA shows egg production fell 3.9% to 7.55 billion, while the number of egg-laying birds dropped 5.3% from a year ago.

The reduced output will continue to pressure retail prices for a dozen of eggs higher. In April alone, prices jumped 23% from the month before to $2.52. Prices reached levels not seen since early 2016, a period that followed the avian influenza outbreak of 2014-15, which led to a 50% increase in egg prices in the second half of 2015.

Egg prices could rise more as producers fail to meet increased demand as supplies tighten. The cost of breakfast is soaring. Everything from orange juice to bacon to wheat has jumped in price — the first meal of the day used to be the most affordable — not so much anymore.

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12 Comments
hardscrabble farmer
hardscrabble farmer
May 24, 2022 8:33 am

Call me crazy but those charts seem to indicate a connection between hens and eggs.

Highly suspicious.

Ginger
Ginger
  hardscrabble farmer
May 24, 2022 8:53 am

Maybe biden will ship in a couple of pallets of eggs from overseas on those empty C-47s returning from taking weapons to nato to give to ukraine.

“But Yossarian still didn’t understand either how Milo could buy eggs in Malta for seven cents apiece and sell them at a profit in Pianosa for five cents.”
“Milo chortled proudly. “I don’t buy eggs from Malta,” he confessed… “I buy them in Sicily at one cent apiece and transfer them to Malta secretly at four and a half cents apiece in order to get the price of eggs up to seven cents when people come to Malta looking for them.”

.

Anthony Aaron
Anthony Aaron
  Ginger
May 24, 2022 12:26 pm

Catch-22 … one of a kind …

Marky
Marky
  Ginger
May 24, 2022 8:12 pm

I thought that was the deal. We give them weapons and they give us eggs.

Iska Waran
Iska Waran
  hardscrabble farmer
May 24, 2022 9:30 am

Some roosters could identify as hens, but I wouldn’t want their eggs.

MrLiberty
MrLiberty
  hardscrabble farmer
May 24, 2022 1:45 pm

Gates has a plan to fix that problem…..LOL

Mike
Mike
May 24, 2022 9:40 am

Just another scam. They can’t just come out and admit that their agenda calls for bankrupting and starving you.

Trapped in Portlandia
Trapped in Portlandia
May 24, 2022 11:23 am

Another success in Biden’s plans to Build Back Better.

Jenny's And Groundwater
Jenny's And Groundwater
May 24, 2022 11:31 am

Here are the links to the USDA full publications:

https://usda.library.cornell.edu/concern/publications/fb494842n

https://downloads.usda.library.cornell.edu/usda-esmis/files/fb494842n/6682z901p/00001523h/ckeg0522.pdf

The first one lists past reports by month.

The second link lists the latest (5/20) egg/broiler reports.

They have the data layed out in a way that is, at best, acceptable. If I layed it out, and had all the past data available, I would present more info. and in a different way.

That said, it looks like up until April U.S. egg production was normal.

In April, table egg production dropped from 7.855B to 7.547B (that is total table eggs produced – think about that! 7.5B eggs monthly; the distribution systems necessary to sutain that level of production – just for eggs – is incredible.).

So, in the month of April, production was down by about 300M table eggs in the U.S..

Prices are “set at the margins” so, it is possible that 1 egg less per person, per month (300M shortfall), is enough to cause a temporary price increase. That smells eggy though…

One thing I see that is rarely mentioned or reflected upon is that eggs are (or used to be) a grocery store “loss leader”. Many items are used as “loss leaders” at retail. Usually, they are commodity type items with low margins to begin with. Loss leaders are a “give-away” to get customers into the store, and hopefully, they buy a lot more than the loss leaders. A few years back a local, new convenience store was selling eggs for: $.25 per dozen……An “in-your-face loss leader”.

IF eggs have been loss leaders for an extended period of time – and a good argument can be made from good data showing eggs have been a “loss leader” for DECADES – then some (or much) of what we are seeign with current price increases is coming from reversion to real market pricing (combined, certainly, with abusive currency – among other – policies).

Imagine if eggs hadn’t been loss leaders for years and were always 2-3 bucks a dozen…the “real” price now would be like 5 bucks a dozen.

When you think about it, and recognize the costs to produce and include all costs, 20-30 cents for an egg (a cooled item) is probably closer to reflecting real costs, margins, etc. (not abusive business – normal functionality and prices to STAY in business) than eggs at a buck a dozen (even before corona hoax).

Eggs at a buck a dozen are no different than just eating someones seed corn – because that is what is happening if they are being sold below production cost. Anyone with “savings/capital” can use their seedcorn that way, but it is finite, and it is seed corn. Get it cheap while it’s available…

MrLiberty
MrLiberty
May 24, 2022 1:46 pm

No, positive tests and mass extermination have resulted in the issue. Likely 10 chickens have actually died of anything “abnormal.”

Marky
Marky
May 24, 2022 8:09 pm

Bird Flu Outbreak Plunges US Egg Production To 7-Year-Low
Shouldn’t it say: “USDA slaughters 30,000 turkeys and chickens Plunging US Egg Production To 7-Year-Low

VOWG
VOWG
May 25, 2022 7:18 am

More fabricated BS.