Bird flu raises egg price from $0.63 to $1.83 a dozen
A spokeswoman for grain giant Archer Daniels Midland said that, as egg supplies have tightened and prices risen, the company has received numerous inquiries from manufacturers about the plant-based egg substitutes it makes, Reuters reports.
And with a strong dollar bolstering the buying power of U.S. importers, some companies are scouting for egg supplies abroad.
"The U.S. has never imported any significant amount of eggs, because we've always been a very low-cost producer," said Tom Elam of FarmEcon, an agricultural consulting company. "Now, that's no longer the case."
Still, companies wanting to import eggs may have to look far afield.
"Canada is short on eggs and has been buying heavily from the U.S. for the last several years," said Rick Brown, a senior vice-president of Urner Barry, a commodity market analysis firm.
"Mexico has been dealing with its own outbreaks of avian influenza, so they're banned from importing into the U.S. The logical place people will be looking now would be Europe."
Avril, a farmer-controlled agri-food group that owns France's largest egg brand, Matines, said it has seen an increase recently in demand from the United States and elsewhere in the Americas and plans to start making shipments in June.
Meanwhile, companies sticking with egg suppliers closer to home are facing sharply higher prices as a result of the outbreak, which has so far affected some 39 million birds.
Nearly one-quarter of the hens that lay "breaker eggs" - which include liquid, dried or frozen eggs used by food manufacturers - have either died or are slated to be euthanized.
The outbreak has led to a sharp uptick in the wholesale price of such eggs, from 63-cents a dozen in late April, when the first egg-laying flock was reported infected, to $1.83 a dozen this week, Brown said. ■