Post Holdings says bird flu hit nearly 14% of egg supply

Post Holdings on Wednesday said bird flu outbreaks at two third-party facilities decimated close to 14% of the consumer brand giant’s egg supply, adding to avian influenza’s mounting toll as it sweeps through poultry and dairy operations around the U.S.

Contracted flocks in Minnesota and Iowa tested positive for the virus, affecting approximately 5.7 million egg-laying hens, according to St. Louis-based Post. The outbreak is another setback for Post-owned Michael Foods, the nation’s largest value-added egg processor and a major supplier for restaurants and food service providers.

The company affirmed its yearly outlook, saying the financial impact of the outbreaks is within its guidance range. The guidance does not encompass a significant expansion of bird flu throughout Post’s network.

It’s the second time in the past six months that Michael Foods’ parent company has reported outbreaks. Around 4.2 million egg-laying hens, or roughly 10% of supply, were killed in December following cases at other third-party facilities.

U.S. egg production in April declined for the first time in months, according to the Department of Agriculture, as the raging spread of bird flu hurts supply and threatens consumer prices. Herbruck’s Poultry Ranch, one of the nation’s top egg producers, laid off 400 workers earlier this month after outbreaks ravaged flocks.

Around 92.4 million birds have been killed since the start of the outbreak in February 2022, the USDA said. Major outbreaks have been reported within the last week — Iowa Gov. Kim Reynolds signed a state of emergency after bird flu impacted 4.2 million birds at an egg farm.

In Minnesota, a May 21 outbreak on a farm in Meeker county impacted close to 1.4 million birds, according to USDA data.

The intensifying outbreak has spread from birds to wild mammals, livestock and, in three cases, humans. A second agricultural worker contracted bird flu from a sick dairy cow this month, prompting the USDA and the Centers for Disease Control and Protection to ramp up protection guidance and support for farms.