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Navigating Avian Flu's impact on egg prices

Eggs

January 06, 2025

The global egg market has been scrambling to keep up with demand in recent times, largely due to the persistent threat of Highly Pathogenic Avian Influenza (HPAI).

This Avian Flu outbreak has wreaked havoc on poultry farms worldwide, leading to significant declines in egg production and a subsequent surge in prices.

A shift in consumer preferences adds to supply chain squeeze

As consumers grapple with the scarcity of shelled eggs, they've started turning to value-added liquid egg products as a viable alternative. This shift in consumer demand has placed additional strain on suppliers like Michael Foods, a key player in the liquid egg market.

To meet the escalating demand for liquid eggs, distributors have been increasing their order quantities. However, suppliers like Michael Foods are facing a delicate balancing act. They're prioritizing their existing customer commitments while also trying to accommodate the surge in demand for liquid eggs. This has led to potential limitations in fulfilling additional requests.

A glimpse into the future

Entegra's Supply Management and Distribution teams are closely monitoring the situation and working diligently with suppliers and distribution partners to minimize the impact of these supply chain challenges. While the exact timeline is uncertain, it's anticipated that the egg supply will stabilize by the first quarter of 2025. What does this mean for businesses?

  • Price fluctuations: As the supply-demand dynamics continue to evolve, businesses may experience fluctuations in egg prices.
  • Product availability: While liquid egg products offer a convenient alternative, their availability may be limited in certain regions.
  • Strategic planning: Businesses that rely heavily on eggs should consider implementing strategic sourcing and inventory management practices to mitigate potential disruptions.

As we navigate these unprecedented times, it's crucial to stay informed and adapt to the changing market conditions. By understanding the factors influencing the egg market, we can make informed decisions and ensure a steady supply of eggs for our needs.

Additional resources:
Cost outlook report
Cost outlook webinar
Cost outlook blog article

Questions? Contact us today.

January 06, 2025

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