US salmonella regulations to cost egg sector US$81 million

New legislations designed to reduce the risk of salmonella in eggs will cost the US industry US$81 million, according to the United Egg Producers (UEP).

Several salmonella scares in recent years linked to food products have caused increased government scrutiny.

The new guidelines require egg producers to regularly test eggs for salmonella and buy egg-producing chicks from sellers who also test for salmonella and other diseases. The guidelines include establishing control programmes for rodents and other pests as well as refrigerating eggs during storage and transportation at 45°F no later than 36 hours after they are laid.

The UEP estimates that consumers may see a one-cent increase in the price for a dozen eggs, but the FDA expects the costs to translate into US$1.4 billion in yearly public health benefits.

However, Gene Gregory, president of the Atlanta-based UEP, is concerned that some egg farms may not have the capacity to refrigerate their eggs and they have no idea what will happen to those farms.

Tim Dawson, CFO of Jackson-based Cal-Maine Foods, the nation's largest egg producer and distributor, said a small number of the company's chicks come from farms that may be affected by the change.