Bird Flu Sent Egg Prices Surging. Chicken Prices May Be Next

Egg prices have soared thanks to the worst-ever global bird flu outbreak that’s ravaged poultry and hen flocks in Europe and US. Now, the disease is showing early signs of spreading in South America, putting global chicken supplies into bigger danger.

(Bloomberg) — Egg prices have soared thanks to the worst-ever global bird flu outbreak that’s ravaged poultry and hen flocks in Europe and US. Now, the disease is showing early signs of spreading in South America, putting global chicken supplies into bigger danger. 

Cases have been popping up in countries like Ecuador, Colombia and Bolivia. Just this week in Argentina, the virus was detected in a wild bird. And more alarmingly, on Wednesday Uruguay reported its first case of avian influenza. That’s a problem because it shows that bird flu is rapidly getting closer to Brazil, the world’s biggest chicken exporter. 

While Brazil is still flu free, a large outbreak in the country would likely have devastating consequences on global meat supplies. Even as food inflation has tamed in recent months, egg prices have bucked the trend because of bird flu. Chicken could follow suit if flu impacts poultry flocks in Brazil, the world’s second-biggest producer, trailing the US. Exports from the South American nation have jumped to records as the country filled the supply gap left by other producers that were hit by the flu.   

The Uruguayan incident is the closest to Brazil that’s been reported so far, according to Brazil’s Agriculture Minister Carlos Favaro.

“Brazil hasn’t reported any cases so far, but the latest episode, which is 180 kilometers far from its border with Uruguay, is increasing our vigilance,” Favaro said Wednesday.

  • Read more: Bird Flu Worsens, Wiping Out 100 Million Poultry in Four Months

The nation is stepping up monitoring efforts and reinforcing security at borders, he said. The transmission risk in South America is currently at a seasonal peak and will remain high through May, because of bird migratory patterns.

Brazil’s chicken exprter group, ABPA, said it’s monitoring the situation after the Uruguay case. Biosecurity protocols in the country are already high. Visits to farms and production units are banned, and there are other safety protocols, such as disinfecting vehicles. 

Just over 100 million poultry have died or were culled due to avian influenza between the start of October and Feb. 3, according to the World Organisation for Animal Health. That’s more than triple the number in the same period in the previous season, which ended with record losses from the disease.

Egg-laying hens have been among the hardest hit, boosting prices of the grocery staple and squeezing consumers. In the US, egg prices in January were up 70% from a year earlier, the steepest 12-month rise in four decades.

–With assistance from Megan Durisin, Michael Hirtzer and Jonathan Gilbert.

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