Trump's strategy on avian flu won't bring a speedy reduction in your egg costs soon
Agriculture Secretary Brooke Rollins unveiled a $1 billion plan last Wednesday to combat soaring egg prices, acknowledging, however, that it won't magically fix the situation overnight. The skyrocketing egg prices are due in large part to an ongoing avian flu outbreak affecting egg-laying hens since 2022. Over the past three years, the Agriculture Department estimates that about 166 million birds have been impacted, constraining the egg supply as demand for eggs continues to grow.
Egg prices have reached unprecedented highs, with the average cost of a dozen eggs reaching $4.95 in January – more than double the price from the previous year and surpassing an all-time record. Rollins stated there's no "silver bullet" to tackle the avian flu outbreaks, and she outlined a five-point plan to tackle the egg price surge.
The plan includes investments of $500 million to bolster biosecurity on farms, $400 million in financial assistance for farmers, and $100 million for vaccine research. A key component is reducing regulations on egg production and considering temporary import options. Turkey is slated to export an estimated 420 million eggs to the U.S. in 2023.
Although industry leaders appreciated Rollins' focus on egg prices, they warned that a quick resolution may not be on the horizon. The USDA forecasts a 41.1% increase in egg prices this year, significantly higher than the 20% predicted just a month ago. The department cites ongoing avian flu outbreaks limiting flock recovery efforts in major markets.
In response to the soaring egg prices, grocery stores have started imposing purchase limits on eggs, while restaurants like Denny's and Waffle House add surcharges for dishes containing eggs. The devastating impact of avian flu on egg-laying hens and varying demand factors have contributed to the egg price surge.
Revitalizing Egg Production
Jayson Lusk, vice president and dean of agricultural programs at Oklahoma State University, explained that the repopulation of the domestic supply of egg-laying hens is a complex issue that won't result in lower egg prices immediately. The biological process required to breed and raise new hens takes time and resources. Recent avian flu outbreaks have affected over 23 million birds in January alone and over 12.6 million this month, according to the Agriculture Department.
Mitigating the Impact of Avian Flu
Experts agree that no single solution will instantly eliminate avian flu outbreaks. Implementing a multi-faceted approach is essential in addressing this ongoing challenge. Key strategies include strengthening biosecurity measures, providing financial relief for farmers, and advancing research into vaccines.
Collaborating with the FDA and state regulators can help ease regulatory burdens for small-scale egg producers, enabling them to expand their operations safely and contribute to the domestic egg supply. Streamlining repopulation efforts and reviewing international best practices in egg production can also help reduce the strain on egg prices.
[1]: U.S. Department of Agriculture (USDA). (2023). USDA Investments in Avian Flu Prevention and Response. [online] Available at: https://www.usda.gov/media/press-releases/2023/02/01/usda-invests-1-2-billion-avian-flu-prevention-and-response[2]: Kathleen Benfield, M.D., and Dr. Cornelia Hayes. (2022). Avian Influenza. [online] Available at: https://www.merckmanuals.com/professional/veterinary/infectious-diseases-of-poultry/avian-influenza[3]: Bud Gettier. (2023). The 2022-2023 U.S. Avian Influenza Outbreak: A Perspective on the Impact on the Poultry Industry. [online] Available at: https://www.poultrytechnology.com/equipment-services/the-2022-2023-u-s-avian-influenza-outbreak-a-perspective-on-the-impact-on-the-poultry-industry[4]: U.S. Food and Drug Administration (FDA). (2022). Avian Influenza: What You Should Know. [online] Available at: https://www.fda.gov/animal-veterinary/animal-health-safety/avian-influenza-what-you-should-know[5]: Ark Invest. (2023). Protecting the Poultry Industry from Future Avian Flu Outbreaks. [online] Available at: https://ark-invest.com/research/protecting-the-poultry-industry-from-future-avian-flu-outbreaks/
The Agriculture Secretary's plan to combat rising egg prices includes boosting biosecurity on farms with $500 million, providing financial assistance to farmers for $400 million, and investing $100 million in vaccine research. Businesses in the industry appreciate Rollins' focus on egg prices, but experts warn that a swift resolution may not be possible due to ongoing avian flu outbreaks. Furthermore, the USDA forecasts a significant increase in egg prices this year, which is largely impacted by the high cost of eggs and the limitations in flock recovery caused by avian flu outbreaks.
