Avian Bird Flu Estimated to Cost US Industry $1bn

20 May 2015 --- The avian bird flu, highly pathogenic avian influenza (HPAI) H5 spread in the US has now been reported in 20 states, while the states of Minnesota, Wisconsin and Iowa have declared states of emergency as a result of the crisis. Some 37m birds are estimated to have been slaughtered already, some because they carry the virus, but some due to the high risk of carrying the virus.

Local press reports suggest that in Iowa, the country’s largest egg-producing area, up to 20 million commercial chickens have already been slaughtered and the disease continues to spread rapidly through barns and farms. Economists have predicted that the disease will costs upwards of $1bn to poultry farmers, their suppliers and associated businesses in just Iowa and Minnesota.

Rembrandt Foods, which is one of America's largest egg suppliers, has been forced to euthanize 7.5m chickens since April, as a result of flu detection on two of its farms, one in Iowa, and one in Minnesota. A company spokesman told local press that the impact of avian flu is far-reaching and will affect co-workers, customers, local communities and the wider industry.

Batory Foods, which supplies eggs and egg products to the food industry, reported that the industry is bracing for serious consequences, including tight supply and cost increases. Over the course of one week this May, dried egg product prices increased 10 cents per day on average, the company says.

Batory said: “We are proactively managing issues surrounding the outbreak: To protect current customers who rely on us to meet their egg needs, we are analyzing our access to product through our suppliers and implementing a fair and reasonable allocation program; Many vendors across the US have been affected by HPAI H5. Those that have escaped infection so far are implementing wait lists to manage the overwhelming demand. Nonetheless, we are actively vetting additional suppliers.”

Batory is also looking into the supply of egg replacement products to substitute lost product. “Our portfolio includes a range of high-quality egg replacement products, including but not limited to, specialty starches, as well as wheat, soy and dairy products which can partially or completely replace the function of eggs depending on your functionality needs. Numerous applications are appropriate for these egg replacements, including baked goods, pastas and sauces. The use of replacements can help manage some of the price volatility (and supply constraints) we can expect from eggs in the coming year.”

The CDC reports that no human infections with these viruses have been detected at this time, however similar viruses have infected people in other countries and caused serious illness and death in some cases. Human infections with other avian influenza viruses have occurred after close and prolonged contact with infected birds or the excretions/secretions of infected birds (e.g., droppings, oral fluids).

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