July 26, 2022

Major US egg producer says supplies likely to remain tight

Cal-Maine Foods Inc, the biggest egg producer in the US, said egg supplies in the country are likely to remain tight even as the worst ever bird flu outbreak in the US has showed signs of slowing down, Bloomberg reported.

After an avian flu outbreak that started in January claimed the lives of over 30 million commercial and wild birds, prices for large eggs in the US have risen to a record high of over US$3 a dozen.

In a financial report released on Tuesday, Cal-Maine stated that its egg sales for the quarter that ended on May 28 were up 6.3% by volume, with sales of specialty eggs such as cage-free eggs increasing by 32% while conventional egg sales decreased by 3.5%.

Cal-Maine accounts for a fifth of the total US egg market.

The company, which reported zero positive bird flu cases on it farms, got a boost of US$2.25 per share in its fourth-quarter earnings, beating the consensus analyst estimate of US$1.89.

Despite the fact that there haven't been any outbreaks of bird flu in commercial flocks since early June, the company warned that outbreaks may happen, and supply is projected to be lower until the flocks are repopulated.

-      Bloomberg