Poultry

How Much Meat Will the U.S. Eat in 2025 and 2026?

Fri, 22 Aug 2025 15:48:46 GMT

Domestic availability of red meat, poultry and eggs is projected to increase in 2025, driven by gains in chicken and pork availability, and is expected to rise further in 2026, reports the USDA Economic Research Service (ERS). This increase stems from USDA’s forecast of per capita supply available for use on the domestic market.

How are these numbers determined? ERS says availability, also known as disappearance, serves as a proxy for consumption and includes fresh and processed meat and eggs sold through grocery stores and used in restaurants.

“The latest USDA data indicate 226 lb. of red meat and poultry and about 22 dozen eggs are available per U.S. consumer in 2025. By 2026, per capita availability is forecast to increase to 227 lb. for red meat and poultry and to 23 dozen eggs,” ERS reports.

Data for 2025 and 2026 are forecasts. Per capita meat availability serves as a proxy for consumption and does not reflect indirect uses, such as pet food or food waste.

(Data: USDA)

Chicken Projected to Be Most Consumed Animal Product
For chicken, per capita availability of broiler meat has been growing for many years and is projected to reach 102.7 lb. in 2025 and 102.8 lb. in 2026, ERS says. This will make it the most consumed animal product in the U.S.

However, availability of turkey has been falling in recent years and is projected to reach a low of 13.0 lb.per person in 2025 but increase to 13.6 lb. in 2026.

Per capita table egg availability for 2025 is projected at 21.5 dozen and is projected to increase to 22.9 dozen per person in 2026.

Pork and Beef Projections
ERS reports that pork availability per capita is projected at 49.7 lb. in 2025 and 50.9 lb. in 2026, up from 49.9 lb. in 2024.

Meanwhile, per capita beef availability for 2025 is projected to be slightly lower than 2024 at 58.5 lb., but is projected to decrease further to 56.9 lb. per person in 2026.

California Has 'Gone Rogue,' Consumers Pay the Price Under Proposition 12, Rollins Says

Fri, 11 Jul 2025 14:48:36 GMT

President Donald Trump’s administration sued California on July 9 over its regulation of eggs and chicken farms, saying these California laws impose burdensome red tape on the production of eggs and egg products nationally in violation of the Supremacy Clause of the U.S. Constitution.

“California has gone rogue and caused real harm to consumers under its cage-free egg commitments,” U.S. Secretary of Agriculture Brooke L. Rollins said in a statement frollowing the announcement of the Trump Administration’s lawsuit. “By not allowing consumer choice, Californian’s are forced to buy more expensive eggs. California’s actions under Proposition 12 fly in the face of Federal jurisdiction and regulation over food production and safety under the Egg Products Inspection Act.”

The Department of Justice filed a lawsuit against the State of California, Governor Gavin Newsom, Attorney General Rob Bonta, and other state officials. The lawsuit, filed in Los Angeles federal court, argues that the federal Egg Products Inspection Act of 1970 pre-empts state laws related to eggs. The federal law authorizes the USDA and Health and Human Services to regulate eggs in order to protect consumers’ health and welfare, and it also requires “national uniformity” in egg safety standards, the lawsuit says.

“It is one thing if California passes laws that affects its own State, it is another when those laws affect other States in violation of the U.S. Constitution,” Secretary Rollins said. “Thankfully, President Trump is standing up against this overreach.”

Secretary Rollins has worked diligently to support American poultry and egg producers, combat avian flu, and lower the cost of eggs for consumers, USDA pointed out in a statement. In February, she announced a five-point plan to combat the avian flu and lower egg prices which has been applauded by agriculture and government leaders across the country. Since the five-point plan was announced, the price of eggs has decreased 63%.

“It is great to see the Trump administration taking decisive action to protect the country from California’s overreaching policies, but Americans facing high food costs cannot afford to wait for years of court appeals. Congress could—and should—pass legislation tomorrow to get us there sooner,” Jack Hubbard, executive director of the Center for the Environment and Welfare (CEW) said in a release. “Recent polling shows California voters now regret the passage of Proposition 12, and there is strong bipartisan support for a legislative fix to nullify California’s inflationary farm mandates.”

(YouTube)

In May, CEW launched a public education campaign urging Congress to stop the far-reaching consequences of Prop 12. According to Consumer Price Index data, national egg prices have spiked 103% since Prop 12 went into effect in 2022. Meanwhile, in California, the cost of eggs has tripled and pork prices have increased by between 20 and 40%.

EU Halts Brazil Poultry and Meat Imports After HPAI Outbreak

Mon, 19 May 2025 15:55:03 GMT

Brazil, the world’s largest poultry exporter and main poultry meat importer into the European Union, is no longer allowed to ship poultry and meat products to the EU due to the recent outbreak of highly pathogenic avian influenza (HPAI).

Brazil confirmed the country’s first HPAI outbreak on a commercial farm in the southern state of Rio Grande do Sul on May 16.

The entire territory of Brazil has suspended its official status of being “free of highly pathogenic avian influenza.” The EU joins with bans from top buyer China, Reuters reported. According to a European Commission spokesperson, EU import conditions require that the country of export (Brazil) is free of HPAI.

Why do U.S. farmers need to pay attention?

There are two reasons for U.S. farmers to be watching the developments of the disease and its effect on the Brazilian poultry industry.

Dan Basse, AgResource Company, says Brazil poultry exports account for about 33% of the global poultry supply.

“A good portion of that goes to China,” Basse says. “The Chinese are out and already saying that they are going to be restricting Brazilian poultry but, we’ll see. The Chinese took last year about 570,000 tons of Brazilian product. I don’t know where they would replace it–but they’re not going to do it from the United States with the trade war.”

He says another reason to watch is the feed side of the Brazilian poultry flock.

“Those birds consume a lot of meal and a lot of corn, it’s like 17.6 million metric tons of Brazilian meal, and 42 to 43 million tons of corn,” Basse says. “So we’ve got to think about this not only from a export opportunity for US poultry, but from a demand concern of what the Brazilians will do in terms of feed consumption. They’ll become more aggressive in offering meal and corn to the world market if flocks down there do need to be depopulated and are starting over.”

What are teh next steps?

Restriction on poultry exports follows rules agreed on with each importing country, based on international health certificate requirements, the Agriculture and Livestock ministry told the Associated Press (AP). Depending on the type of the disease, some deals apply to the whole country while others involve limits on where products can come from — for example, a specific state, city or just the area of the outbreak.

Countries like Japan, Saudi Arabia, the United Arab Emirates and the Philippines have already accepted this regional approach, AP reported.

Brazil exported more than 5 million tons of poultry meat in 2024. Reuters reported that approximately 4.4% headed to the EU. Of total EU poultry imports, Brazil is the main origin with a share of 32% last year, according to official EU data.

The U.S. bird flu outbreak and wider trade tensions with Washington have limited Chinese appetite for American poultry. China now blocks poultry from more than 40 U.S. states over HPAI, according to U.S. government data, Reuters reported .

If the HPAI outbreak spreads across Brazil, as it did in the U.S., officials and analysts said outlooks could get dimmer, Reuters reported. That scenario would raise U.S. hopes for China to ease restrictions on American poultry.

Under a Phase 1 trade agreement China signed with U.S. President Donald Trump during his first term in 2020, China is supposed to lift statewide bans on U.S. poultry 90 days after states eliminate bird flu from infected farms.

However, China has kept bans in place longer than it had agreed in that deal, according to the article.

Greg Tyler, CEO of the USA Poultry and Egg Export Council industry group, told Reuters he is hopeful China will move back to abiding by that regionalization agreement.

Your Next Read: Certainty in Uncertain Times: How Maria Zieba Fights for U.S. Pork Producers in DC

FSIS Withdraws Proposed Salmonella Framework for Raw Poultry Products

Thu, 24 Apr 2025 15:27:09 GMT

USDA’s Food Safety and Inspection Service’s (FSIS) is withdrawing its proposed rule and determination titled “Salmonella Framework for Raw Poultry Products,” published on Aug. 7, 2024, to further assess its approach for addressing Salmonella illnesses associated with poultry products. The agency determined that additional consideration is needed in light of the feedback received during the public comment period that closed on Jan. 17.

“The National Pork Producers Council (NPPC) appreciates FSIS listening to our food safety concerns and withdrawing its proposed ‘Salmonella Framework for Raw Poultry Products,’” says Ashley JOhnson, NPPC director of food policy. “This is an important step in recognizing the need for a more scientific approach to Salmonella testing, and NPPC will continue to work with FSIS to ensure thorough food safety testing.”

In January, the NPPC raised concerns about the scientific validity and practicality of reaching the goal of protecting public health through this proposed rule and determination. Under the regulation, FSIS would have classified certain Salmonella levels and serotypes in raw poultry products as adulterants and, therefore, prohibit them from entering the food supply.

Additionally, poultry slaughter operations would have had to include microbial monitoring programs with statistical process control methods and specific sampling methods in their procedures for addressing enteric diseases such as Salmonella.

NPPC pointed out that to reduce illnesses, risk-based performance standards will incentivize establishments to evaluate their status by conducting Salmonella quantification testing.

“An adulterated determination can result in unintended consequences, such as food waste of safe products, and will not help protect public health,” the organization said in January . “NPPC also noted that because Salmonella isn’t an ‘added’ substance – it occurs naturally – it doesn’t meet the statutory definition of an adulterant, and that case law does not support Salmonella being classified as such.”

The microbiological testing FSIS proposed involves a small portion of product, NPPC said, so it is not representative of all products. NPPC said this testing should be used only for verification.

“Consumer health and safety is at the forefront of the pork industry’s practices,” NPPC wrote. “Although the proposed rule is focused on raw poultry products, NPPC acknowledges the importance of food safety and taking a scientific approach to protect our nation’s food. Salmonella continues to be a high priority for the pork industry, as producers and processors implement strategies and look for improved ways to address the bacterium. The pork industry will continue its collaborative efforts with FSIS to deal with Salmonella through informed policy.”

Ashley Peterson, National Chicken Council senior vice president of regulatory and scientific affairs said the proposal could have increased the price of chicken without any health benefits as Salmonella rates on chicken are at all-time lows and chicken producers are working to reduce them even further.

“America’s chicken producers remain committed to further reducing Salmonella and fully support changes in food safety regulations that are based on sound science, robust data, and are demonstrated to positively impact public health,” Peterson said in a release . “We are concerned this proposal is not based on any of those.”

Based on the input received from stakeholders in January, FSIS says it will evaluate whether it should update the current poultry Salmonella performance standards.

Your Next Read: NPPC Raises Concern on USDA’s Proposed Salmonella Regulation

Trump Administration Announces $1 Billion to Combat Avian Flu and Soaring Egg Prices

Wed, 26 Feb 2025 15:28:34 GMT

The Trump administration is investing up to $1 billion in new funding to combat impacts of highly pathogenic avian influenza (HPAI) and soaring egg prices.

USDA Secretary Brooke Rollins in the Wall Street Journal said, “There’s no silver bullet to eradicating avian flu.” She laid out a five-point plan to address the situation.

Dedicate up to $500 million to helping U.S. poultry producers implement “gold-standard” biosecurity measures. USDA has developed a successful pilot program, called Wildlife Biosecurity Assessments, to identify and implement more safety measures. USDA will pay up to 75% of the cost to address any identified biosecurity vulnerabilities at poultry farms.
Make up to $400 million of increased financial relief available to farmers whose flocks are affected by avian flu, and we will assist them in receiving faster approval to begin safe operations again after an outbreak.
USDA is exploring the use of vaccines and therapeutics for laying chickens. While vaccines aren’t a stand-alone solution, we will provide up to $100 million in research and development of vaccines and therapeutics, to improve their efficacy and efficiency. This should help reduce the need to “depopulate” flocks, which means killing chickens on a farm where there’s an outbreak. Note: USDA hasn’t yet authorized the use of a vaccine. Before making a determination, USDA will consult state leaders, poultry and dairy farmers, and public-health professionals. The agency will also work with trading partners to minimize potential negative trade effects for U.S. producers and to assess public-health concerns.
USDA will take other actions to lower the price of eggs. For starters, it will remove unnecessary regulatory burdens on egg producers where possible. This will include examining the best way to protect farmers from overly prescriptive state laws, such as California’s Proposition 12, which established minimum space requirements for egg-laying hens.
USDA will consider temporary import options to reduce egg costs in the short term. We will proceed with imports only if the eggs meet stringent U.S. safety standards and if we determine that doing so won’t jeopardize American farmers’ access to markets in the future.

Senate Ag Committee Chair John Boozman (R-Ark.) said, “Producers and consumers alike have experienced the economic burden of this outbreak since 2022. I applaud Secretary Rollins and the Trump administration for prioritizing a strategy to combat this evolving threat. I look forward to working with USDA to ensure all poultry and livestock producers’ unique challenges are taken into consideration and they have the tools they need to address animal disease risks.”

In the Wall Street Journal Op-Ed , Rollins said some of the money will come from cuts to USDA spending by the Department of Government Efficiency (DOGE).

“Egg prices are skyrocketing, and it isn’t simply a matter of inflation. Grocery prices rose by more than 20% on President Biden’s watch, but the average price of a dozen eggs went up 237%, from $1.47 in January 2021 to $4.95 last month,” Rollins said wrote in the Wall Street Journal. “This matters for American families because eggs are a healthy, accessible and generally affordable source of protein.”

By the Numbers: Soaring Egg Prices
USDA upped its 2025 egg price forecast to a 41.1% increase (range of up 15.0% to 74.9%), more than double the 20.3% rise they forecast in January. USDA started their 2025 egg price forecast in July 2024 looking for them to decline 7.6% versus 2024

“Retail egg prices increased by 13.8% in January 2025 after rising by 8.4% in December 2024,” USDA detailed. “Retail egg prices continue to experience volatile month-to-month changes due to an outbreak of HPAI that began in 2022. HPAI contributes to elevated egg prices by reducing egg-layer flocks and egg production. About 18.8 million commercial egg layers were affected by HPAI in January 2025, the highest monthly total since the outbreak began in 2022.”

Egg prices in January were 53% higher than January 2024 and “surpassed the previous peak prices in January 2023,” USDA detailed.

I just left a message for Chris Kempczinski, CEO of McDonalds USA, thanking him for the choice to not add surcharge to eggs. THANK YOU @McDonalds!!!

(note the egg mcmuffin🥰🍳) https://t.co/UhBUJicTje pic.twitter.com/kRu6DXYutg
— Secretary Brooke Rollins (@SecRollins) February 26, 2025

Avian Flu a Top Priority for Rollins
On Monday, Rollins met with poultry farmers and industry leaders in Texas to address the ongoing avian flu crisis. She toured a Cal-Maine Foods facility in Bogata before hosting a roundtable in Mount Pleasant, where discussions focused on outbreak response and mitigation strategies. Rollins criticized the Biden administration’s handling of the issue, emphasizing the Trump administration’s commitment to supporting farmers and stabilizing egg prices.

“Clearly, this is a massive issue for our poultry producers, especially our egg layers,” Rollins told AgriTalk’s Chip Flory, in an exclusive interview, during Top Producer Summit. “Ensuring that we have a plan, not just for the short-term to bring down egg prices, which the president is very focused on, but for the long-term. What are the best practices around the world? Why in America have we been hit so hard? Why did the last USDA, a couple of years ago, recognize it as a major issue, but not many steps were taken.”

Just hours after being confirmed, Rollins’ first official meeting at the White House was on avian flu. She told Flory it’s her top priority right now, and she’s gathered a team from within USDA and the White House to focus on the issue.

“I’ve been talking to governors. I’ve been talking to the companies that are facing this. I’ve been talking to grocery. I mean, we’ve been talking to everyone, trying to come up with a big toolkit to be able to really approach this and hopefully figure out a way to, again, solve it for the long-term,” Rollins said.

Flory followed up by asking Rollins if vaccines will be one of the tools used by USDA.

“Vaccines are being discussed right now. I think that there is a lot of opinion on that on both sides. And we’re working through all of that right now,” Rollins told Flory.

The big announcement released on Wednesday did not include any plans to approve vaccines to combat the disease.

Your Next Read:
As the Trump Administration Shifts Strategy on Avian Flu, it’s a Complicated Issue in Need of a Long-Term Solution

As Trump Administration Shifts Strategy on Avian Flu, It's a Complicated Issue in Need of Long-Term Solutions

Tue, 25 Feb 2025 14:36:45 GMT

The Trump administration is rolling out a new strategy to combat avian flu, moving away from mass culling of infected flocks of egg-laying chickens. But as Agriculture Secretary Brooke Rollins told Farm Journal in an exclusive interview, the key to solving the issue is to find a solution that doesn’t just address the avian flu outbreak in the short-term. The plan also needs to find a solution that works long-term, as well.

USDA’s food price outlook report released Tuesday shows the sticker shock shoppers are seeing for egg prices. The report egg prices for 2025 now more double their previous forecast, now up 41.1% midpoint versus 20.3% last month.

Also on Monday, Rollins met with poultry farmers and industry leaders in Texas to address the ongoing avian flu crisis. She toured a Cal-Maine Foods facility in Bogata before hosting a roundtable in Mount Pleasant, where discussions focused on outbreak response and mitigation strategies. Rollins criticized the Biden administration’s handling of the issue, emphasizing the Trump administration’s commitment to supporting farmers and stabilizing egg prices. Following the roundtable, she spoke with local media about USDA’s efforts and the impact on Texas agriculture

That followed the Trump administration introducing a new plan last week, which was spearheaded by National Economic Council Director Kevin Hassett and Rollins. The plan prioritizes enhanced biosecurity measures and medication to control the spread of the virus in egg-laying flocks.

“Clearly, this is a massive issue for our poultry producers, especially our egg layers,” Rollins told AgriTalk’s Chip Flory, in an exclusive interview. “Ensuring that we have a plan, not just for the short-term to bring down egg prices, which the president is very focused on, but for the long-term. What are the best practices around the world? Why in America have we been hit so hard? Why did the last USDA, a couple of years ago, recognize it as a major issue but not many steps were taken?”

Thank you East Texas! I am so grateful to so many as the learning tour continues — yesterday a poultry facility and a roundtable with #local farmers and ranchers to solicit feedback on combatting bird flu and lowering the cost of eggs. @POTUS and our team at @USDA remain… pic.twitter.com/ATXTEz0tVk
— Secretary Brooke Rollins (@SecRollins) February 25, 2025

Flory followed up by asking Rollins if vaccines will be one of the tools used by USDA.

“Vaccines are being discussed right now. I think that there is a lot of opinion on that on both sides. And we’re working through all of that right now,” Rollins told Flory.

Part of the Trump administration’s new strategy on avian flu released so far includes:

Biosecurity and Medication: Improved containment protocols and medication aim to reduce reliance on widespread culling.
Smart Perimeter Approach: Targeted containment methods will enhance efficiency in preventing outbreaks.
Collaboration: Government scientists and global academic experts are contributing to the plan’s development.

How to Get More Eggs in the Short-Term
The National Chicken Council (NCC) is also petitioning the FDA to lift a regulation that prevents broiler industry eggs from entering the food supply, arguing the move could ease record-high egg prices caused by the bird flu outbreak.

The 2009 rule forces broiler producers to discard surplus hatching eggs instead of selling them to processors, despite government risk assessments affirming their safety. If granted, the request would allow nearly 400 million eggs annually to be used in processed foods like bread, pasta and mayonnaise, alleviating strain on table egg supplies.

NCC previously sought relief under the Biden administration in 2023 but was denied. Now, with egg prices soaring, the organization is urging swift action from the Trump administration.

USDA Reports Decline in Egg production, Signs of Recovery Ahead

USDA’s latest report highlights key trends in the poultry industry, including a 4% decline in U.S. egg production for January 2025. This drop is largely due to a 4% reduction in laying hens, driven by the ongoing avian influenza outbreak.

However, signs of recovery are emerging: egg-type chick hatching rose by 6%, and incubation numbers increased by 7%. Meanwhile, broiler production is growing, with a 3% rise in broiler chick hatching. USDA will release updated forecasts on March 11, offering a clearer picture of the industry’s trajectory.

More details:

The number of layers fell to about 363 million in January, down 3.8% from a year ago.
Egg production of 8.865 billion was down 4.2% and the lowest for the month since 2016 — when there was a previous major outbreak of bird flu.

Egg Production

(Bloomberg)

Denny’s became the latest breakfast chain to announce an egg surcharge. Earlier this month, Waffle House introduced a temporary 50-cent surcharge per egg.

Major retailers, including Costco and Trader Joe’s, have had to act as well by imposing limits on how many eggs one customer can buy. According to USDA, the avian flu has killed more than 140 million egg-laying birds in the country since 2022. At least 18.9 million birds have been culled in the past 30 days alone.

Egg Prices and Market Conditions
Conventional table eggs jumped 36 cents a dozen nationally last week, on average.

Negotiated wholesale prices for graded loose eggs are firm to moving higher with a higher undertone. Demand for retail is moderate to good, while food service interest is lower. Offerings are very light, with little chance of improvement due to ongoing highly pathogenic avian influenza (HPAI) impacts on productive flocks.

Price Trends

National trading: White large shell eggs increased $0.33 to $8.07 per dozen
New York market: Large cartoned shell eggs rose $0.24 to $8.47 per dozen
Midwest region: Large white shell eggs increased $0.28 to $8.09 per dozen
California benchmark: Large shell eggs rose $0.05 to $9.22 per dozen

Supply and Demand
Shell egg demand has increased over the past week, with marketers struggling to cover needs due to reduced supplies from HPAI outbreaks. Spot market bids routinely outpace offers, often by a factor of ten, with prices setting daily records. Shell egg shortages are now impacting most major markets.

Inventory and Production

Overall shell egg inventory declined 2%
Large class shell eggs inventory is down just over 1%
Cage-free egg stocks decreased 3.5%
Breaking stock inventory gained 2%
Total estimated table egg production unchanged from last week and last year

Breaking and Processing
Breaking schedules are generally reduced, running 3% below year-ago levels. The volume of eggs processed last week decreased just under 1%. Production of whole eggs was up nearly 3%, while egg components (whites and yolks) continue to decline.

Frozen Egg Storage
December monthly volume of frozen eggs in storage declined 7% from November, 38% below the December 2023 level. This is the lowest level of egg products stocks recorded in the last 10 years.

NCC’s Petition to Bring More Eggs Into the Market

As noted above, the National Chicken Council is also petitioning the FDA to lift a regulation preventing broiler industry eggs from entering the food supply.

· Consumer safety vs. potential economic benefits: The FDA determined that allowing the use of surplus broiler eggs would not maintain the same level of public health protection as the current egg safety rule. The agency prioritizes consumer safety over potential economic benefits.

· Refrigeration requirements: The 2009 rule requires all eggs entering the food supply to be kept at 45°F within 36 hours of being laid. Broiler eggs are typically stored at 65°F, which is incompatible with this requirement.

· Different risk profiles: While the NCC argues that pasteurized surplus broiler eggs present a different risk profile than raw table eggs, the FDA has not been convinced by this argument.

· Regulatory jurisdiction: The FDA has authority over shell eggs under the Federal Food, Drug, and Cosmetic Act, while USDA’s Food Safety and Inspection Service (FSIS) regulates egg products. This division of responsibilities complicates the decision-making process.

· Previous rejections: The FDA has consistently denied similar petitions in the past, including one in June 2023. This suggests a long-standing policy position that is unlikely to change without significant new evidence or circumstances.

What Could Happen Moving Forward

USDA officials and analysts clearly understand the issue, but they are dealing with a topic that involves short- and long-term issues, FDA and White House officials. Also, throw in politics, with Democrats asking almost daily what the White House is doing about high egg prices.

A whole-of-government approach is evident on this issue via the Trump administration. That was not the approach on this topic during the Biden administration, even though various steps were taken by then USDA Secretary Tom Vilsack. They just came too late or were not aggressive enough, sources conclude.

Industry contacts say the failure of former President Biden’s team to deal with the spread of HPAI means both a short- and long-term approach is now needed. There is only so much that can be done in the short run to lower egg prices. That topic should have been dealt with via more effective HPAI policy a few years ago, contacts advise. It was not.

The push is on for a multi-focus, all-inclusive approach including:

An increased focus on biosecurity, but with funding to help the industry accomplish that because of indemnity and other issues.
Finding different modes of administering medications, such as via water, feed and aerosols. But those methods are not yet available. Thus the need for expanded research funding on this topic.
Coming up with a trade strategy that could involve regionalization (trading with states outside impacted areas). But that has to be negotiated with trading partners, and that takes time. Also, industry officials are very hesitant about trade issues. A regionalization approach could be taken, but only after more vaccines are available. However, there are already regionalization agreements in place with some countries on bird flu. One question is what would any vaccination effort do to those regionalization agreements?
Increasing imports of eggs, but this could be limited and presents some quality issues and food safety issues (testing, etc.). But egg exporting countries are increasingly looking at the U.S. market due to prices and wanting to boost exports.
Any discussion of an embargo on U.S. egg exports should be moot. Reason: embargoes do not work. Example: The Carter grain embargo in 1980 against the then Soviet Union.

Vaccines:
USDA recently granted Zoetis a conditional USDA approval for an avian flu vaccine. Major poultry and dairy organizations back vaccine use to control the virus.

However, several problems exist regarding vaccines, including the trade angle previously discussed, and the fact that their effectiveness timeline wears off. Also, HPAI is multifaceted with different mutations causing vaccine-related issues.

As for FDA, if the agency is convinced somehow to temper its current safety rule, concerns still exist regarding increased threats of salmonella.

If the NCC petition would be approved in some way, increased testing for salmonella is just one requirement. Any cost-benefit analysis is difficult at best to do on this topic. Of note: It will be curious to see what HHS Secretary JFK Jr. says about this and other HPAI issues, especially the use of vaccines.

Risks:
If a change in the major depopulation strategy is implemented, the concern is that if it does not work, an explosive increase in HPAI cases could follow.

Upshot:
Limited avenues are available in the short run regarding bringing down egg prices, and containing HPAI. As previously mentioned, the reason for that in part is this topic was not taken as seriously as it should have been during the Biden administration because no such all-of-government approach was taken.

A likely game plan will or should be to lay the groundwork to deal with HPAI in the long run so it does not surface again years from now. But this will take time to unfold. Regarding egg prices, any effort to stop U.S. egg exports will likely be rejected. That means increase supply via imports and eventually more U.S. egg production, and/or reduced demand via higher prices.

Trump Administration Shifts Strategy on Avian Flu

Mon, 17 Feb 2025 00:38:30 GMT

The Trump administration is rolling out a new strategy to combat avian flu, moving away from mass culling of infected flocks. Spearheaded by National Economic Council Director Kevin Hassett and USDA Secretary Brooke Rollins, the plan prioritizes enhanced biosecurity measures and medication to control the spread of the virus.

Key Points of the New Strategy

Biosecurity and Medication: Improved containment protocols and medication aim to reduce reliance on widespread culling.
Smart Perimeter Approach: Targeted containment methods will enhance efficiency in preventing outbreaks.
Collaboration: Government scientists and global academic experts are contributing to the plan’s development.

Recent Developments

Vaccine Approval: Zoetis received conditional USDA approval for an avian flu vaccine.
Industry Support: Major poultry and dairy organizations back vaccine use to control the virus.

Concerns and Challenges

Trade Impact: The National Chicken Council warns that vaccinating flocks could hinder poultry exports.
Efficacy of Previous Measures: Critics argue that the Biden administration’s mass culling approach was costly and ineffective.
Ongoing Outbreak: The flu has affected over 150 million birds since 2022, driving up egg prices and causing supply shortages.

Future Outlook

The plan’s success hinges on industry adoption and global trade acceptance. Balancing effective disease control with maintaining poultry exports remains a critical challenge for the administration.

NEC-Led Task Force on HPAI/Egg Prices to Confront Hurdles, Challenges

Hassett is working with industry experts and government analysts and officials, including those at USDA. Secretary Rollins late Thursday heard from various experts on the topic.

The emergence and spread of new avian influenza variants have significantly impacted egg prices, poultry production, and resulted in public health concerns, necessitating ongoing vigilance and adaptive strategies from both the industry and government agencies. Some of the issues:

Background

Bird flu was present during the first Trump administration (2017-2021). Several notable events related to avian influenza occurred during this period:

Outbreaks in 2017

In March 2017, an outbreak of highly pathogenic avian influenza (HPAI) H7N9 virus was detected in two commercial chicken breeder flocks in the United States.
This North American lineage HPAI H7N9 virus was genetically unrelated to the Asian lineage HPAI H7N9 viruses reported in China.

Policy Continuation

A USDA bird flu response plan, updated in May 2017 during Trump’s first administration, incorporated policy guidance based on lessons from influenza outbreaks during the Obama and first Trump administrations. The plan stated that “rapid depopulation of infected poultry is critical to halt virus transmission and must be prioritized.”

Depopulation Strategy

During a March 2017 bird flu outbreak, a USDA report indicated that “nearly 253,000 birds were depopulated.”
This depopulation strategy was a continuation of long-standing practices to prevent bird flu from spreading, as confirmed by agriculture experts.

While bird flu was present during Trump’s first term, the current widespread outbreak affecting cattle and causing human infections began in 2022, after Trump left office. The ongoing situation presents new challenges for the incoming Trump administration in 2025.

The Biden administration faced significant bird flu outbreaks during its tenure, with the H5N1 virus causing widespread impacts across the United States. Here’s an overview of the outbreaks and the actions taken:

Outbreaks

The current H5N1 outbreak began in 2022 and intensified throughout the Biden administration.
By early 2025, the virus had affected over 130 million birds, including both wild and domestic populations.
The outbreak expanded to dairy cattle, with 925 dairy herds across 16 states infected by October 2024.
Human cases were reported, with 67 confirmed cases and one fatality in the U.S. by early 2025.

Actions Taken

The Biden administration and then USDA Secretary Tom Vilsack implemented several measures to address the outbreak:

Funding and Resource Allocation

By January 2025, the administration had spent approximately $1.8 billion battling bird flu since the spring of 2023.
An additional $306 million was allocated in early 2025 for various response efforts.
In May 2024, nearly $200 million was provided to contain the outbreak, with $98 million for dairy farms and $101 million split between the FDA and CDC.

Testing and Surveillance

USDA implemented a Federal Order in May 2024 requiring testing of cattle before interstate movement.
In December 2024, a new mandate was announced to test the national milk supply for bird flu.
Enhanced testing and monitoring strategies were planned to better assess the presence of H5N1.

Biosecurity Measures

Vilsack emphasized the importance of improved biosecurity as a key strategy to limit the spread of H5N1.
USDA announced assistance for producers with H5N1-affected premises to improve on-site biosecurity.

Interagency Cooperation

USDA worked closely with the FDA on lab testing and with the CDC on public health matters.
A response team including four HHS agencies (CDC, FDA, NIH, and ASPR) was established to work with USDA. (ASPR is the Administration for Strategic Preparedness and Response.)

Public Health Initiatives

Funds were allocated to enhance hospital readiness and conduct research on therapeutics, diagnostics, and vaccines.
Local jurisdictions received funding to increase monitoring of high-risk populations, such as livestock workers.

Bottom Line: The above actions demonstrate the Biden administration’s multifaceted approach to addressing the H5N1 outbreak, focusing on containment, research, and protection of both animal and human health. However, despite these efforts, the outbreak expanded to dairy cattle, with 925 dairy herds across 16 states infected by October 2024. Human cases continued to occur, with 67 confirmed cases and one fatality by early 2025. Critics argued that the Biden administration’s response was not swift or comprehensive enough.

Vaccines

They are seen as impractical but could be used in targeted areas. Most available vaccines for avian influenza in chickens are administered through injection. This method, while effective, can be time-consuming and stressful for the birds, especially in large-scale poultry operations.

Currently, there are limited options for vaccinating chickens against bird flu via feed or water, but research is ongoing to develop more convenient methods of vaccine administration

New Variants

The disease is a moving target. USDA under then Secretary Tom Vilsack conditionally approved a vaccine made by Zoetis, containing a killed version of an H5N2 variant designed to work against circulating H5N1 variants. However, the effectiveness of vaccines may be compromised as new variants emerge, potentially requiring frequent updates.

Vilsack, during his tenure as USDA Secretary, took several steps regarding HPAI vaccines, but the situation has evolved over time:

Vaccine approval and funding. In 2016, Zoetis received a conditional license for its H5N1 vaccine and a contract award for the USDA’s National Veterinary Stockpile. This vaccine was approved under Vilsack’s leadership, as he served as USDA Secretary from 2009 to 2017, and then again from 2021 until Jan. 2025.
Vaccine fate. The Zoetis H5N1 vaccine approved in 2016 remained in the National Veterinary Stockpile until 2021 but was never used. This suggests that the vaccine was eventually discarded or removed from the stockpile without being deployed.
In August 2024, Vilsack authorized the first field trial of an H5N1 vaccine for cattle.

Of note: As of February 2025, Zoetis received a conditional license from USDA for its Avian Influenza Vaccine, H5N2 Subtype, Killed Virus, for use in chickens.

USDA has allocated significant funding for HPAI response:

In May 2024, Vilsack approved the transfer of $824 million from the Commodity Credit Corporation to the Animal and Plant Health Inspection Service (APHIS) for HPAI response efforts. This was in addition to a previous approval of $1.3 billion in emergency funds to tackle nationwide HPAI detections.
Former USDA Secretary Vilsack revealed that USDA was accelerating vaccine production for bovines, with seven potential vaccine candidates in development.

While not yet widely available, some alternative methods for vaccinating chickens against bird flu are being explored:

Spray vaccination: Some researchers have evaluated immune responses in chickens vaccinated via coarse spray with adenovirus-vectored avian influenza vaccines. This method shows promise for mass immunization of poultry, potentially eliciting both systemic and mucosal immune responses.
Drinking Water: As of now, there are no available vaccines that can be delivered through drinking water for avian influenza. However, this route of administration is being researched as a potential method for mass vaccination.
Aerosol/Spray: Only one vaccine is currently available for aerosol/spray administration. This method could potentially allow for easier mass vaccination of poultry flocks.

Challenges

The development of vaccines suitable for mass application methods outside hatcheries, such as via drinking water or spray/aerosolization, is still in progress. These methods would greatly simplify the vaccination process for large-scale poultry operations. Researchers are working on various approaches to make vaccination more practical:

Vectored vaccines: Some vaccines use viral vectors, like adenoviruses, to deliver avian influenza antigens. These may be more amenable to alternative administration routes.
Mucosal immunity: Spray and aerosol methods are being explored to target mucosal immune responses, which could provide better protection against respiratory infections like avian influenza.

Of note: While progress is being made, as of now, most approved and effective vaccines for avian influenza in chickens still require injection. The development of feed- or water-based vaccines remains an active area of research in the poultry industry.

Another Issue:

Changing variants of avian influenza significantly impact the egg price situation and overall poultry industry. Here’s how:

Emergence of New Genotypes. A new genotype of avian influenza, D1.1, emerged in wild migratory birds in September 2024 and subsequently spread to domestic poultry. This new variant has had severe consequences:

Increased spread across North America’s four migratory waterfowl flyways.
Spillover into poultry, humans, and even cows.
Caused a severe flu case in British Columbia and a death in Louisiana.
Scientists announced they found D1.1 in infected dairy cattle in Nevada for the first time. A dairy farm worker tested positive for H5N1, the state’s first reported human case.
Some scientists fear the D1.1 variant carries a new mutation that helps the virus copy itself more easily onto the cells of mammals, including humans.
Some scientists suspect a new strain is spreading via dust from bird droppings, carried by the wind.

Impact on Poultry and Egg Production.

The emergence of new variants has led to:

More than 20 million egg-laying chickens in the U.S. died in the last quarter due to the bird flu outbreak. This figure includes both chickens that died from the virus and those that were culled to prevent further spread of the infection. This recent toll represents the most severe impact on America’s egg supply since the outbreak began in 2022.
Reduction in the conventional egg-laying flock by 3.7% in January 2025 alone.
Significant drop in egg production, falling to 9.1 billion dozen in 2022 from 9.4 billion dozen in 2019.
The losses have affected all major production systems, including conventional caged, cage-free, and certified organic types (with some major differences as noted below).
Egg prices have soared to their highest levels in years, largely driven by the virus (details below).
The U.S. egg industry now has 8% fewer egg-laying hens than it did three years ago.
The federal government has allocated substantial funds to compensate farmers, with USDA spending $1.25 billion on payments to farmers since the outbreak started in 2022.
New bird flu outbreaks have also struck major egg-laying operations in Indiana and Georgia, leading to heists of the precious commodity and the sight of empty supermarket shelves where cartons of eggs should be.
New York Governor Kathy Hochul recently ordered all live-bird markets in New York City and some surrounding areas to shut down for a week to stem the spread of the virus. Three ducks at the Queens Zoo died of bird flu and as many as 12 birds at the Bronx Zoo that died after possible exposure are being tested for the virus.

The bird flu outbreak has significantly impacted the availability of organic and cage-free eggs, though in some unexpected ways:

Impact on Organic Egg Production

Less affected: Organic egg production has been less impacted by the bird flu outbreak compared to conventional egg production.
Smaller flocks: Organic egg-laying hens typically live in smaller flocks with more spacious conditions, which may contribute to their lower infection rates.
Price stability: Organic egg prices have been relatively more stable due to different pricing practices, with producers often setting long-term strategic prices with retailers.

Cage-Free Egg Availability

Disproportionate impact: Despite representing only about a third of U.S. egg layers, cage-free hens contributed to nearly 60% of all bird flu cases in 2024.
Supply challenges: The disproportionate impact on cage-free flocks has led to significant supply issues, especially in states with cage-free egg laws.
Recovery difficulties: Rebuilding cage-free flocks can be more challenging due to fewer sources and stricter regulations in some states.

Market Dynamics

Pricing anomalies: In some areas, like New York City, organic and cage-free eggs have been priced lower than conventional eggs due to existing contracts.
Potential price increases: As contracts expire, prices for organic and cage-free eggs may increase significantly.
State regulations: Nine states, including California and Colorado, have laws requiring eggs to be from cage-free hens, further complicating supply issues.

Other Issues:

Cage-free transition: About 40% of U.S. commercial egg layers are now in cage-free systems, up from just 30 million in 2015.
Supply/demand imbalance: The growth in cage-free egg demand has outpaced supply, exacerbated by bird flu outbreaks.
Bottom line: While organic eggs have been somewhat less affected by the bird flu outbreak, cage-free egg production has faced significant challenges. This has led to complex market dynamics, including unexpected pricing patterns and potential future shortages, particularly in states with cage-free egg laws.

Economic and Trade Implications.

Changing variants can affect international trade and economic stability:

The presence of highly pathogenic avian influenza (HPAI) restricts international trade in live birds and poultry meat.
New variants may lead to more stringent trade restrictions, further impacting national economies.

Human Health Concerns

As the virus evolves, there are increasing concerns about human health:

The D1.1 genotype has infected humans, with 68 confirmed cases and one fatality in the United States.
Experts worry that as the virus replicates, the chance of a mutation allowing human-to-human transmission increases.

Egg Prices

Egg prices in the United States have reached unprecedented levels, with the average cost of a dozen Grade A eggs hitting a record high of $4.95 in January 2025, but prices in individual states and stores can be much higher or lower. This represents a significant increase from previous years, with prices nearly doubling since 2024. The surge in egg prices has been particularly dramatic, with a 15% increase from December 2024 to January 2025 alone.

Several factors have contributed to the soaring egg prices:

Avian influenza outbreak: The primary driver of the price increase is an ongoing outbreak of highly pathogenic avian influenza (HPAI) that began in 2022. This outbreak has led to the culling of millions of chickens, significantly reducing the egg-laying population.
Supply chain disruptions: The bird flu epidemic has caused severe disruptions in the egg supply chain, with the population of conventionally caged chickens reduced by 8%.
Supply/demand imbalance: Consumer demand for eggs has remained steady despite the price increases, contributing to the supply-demand imbalance.
Shift in consumer preferences: There has been a growing preference for specialty eggs, such as cage-free and organic varieties, which are typically more expensive.
State Regulations: Some states, like California, have implemented stricter regulations requiring eggs to be sold from cage-free hens, further impacting prices.

Impact on consumers and businesses. The egg price surge has had widespread effects:

Grocery store limitations: Some grocery chains, including Trader Joe’s and Kroger, have placed limits on the number of eggs customers can purchase.
Restaurant surcharges: Restaurants like Waffle House have implemented per-egg surcharges to offset the increased costs.
Regional price variations: Prices vary significantly by region, with some areas seeing even higher costs. For example, in California, a carton of two dozen eggs can cost $13.49.

Egg Price Outlook

USDA predicts that egg prices could rise by up to 20% in 2025. The duration of high prices remains uncertain, as it depends on controlling the spread of avian flu and replenishing the egg-laying chicken population.

Experts suggest it may take at least another three to six months before prices begin to moderate. But some analysts say if a way can be found to deal with HPAI, egg prices would tumble. As consumers grapple with these high prices, some are adapting by reducing egg consumption or seeking alternatives. The situation continues to evolve, with both political and economic implications as the country faces this ongoing challenge in the food supply chain.

Does the U.S. import and export eggs? Yes.

Total egg exports from the U.S. in 2024 amounted to 172.8 million dozen eggs. This figure includes both table eggs and egg products (converted to shell egg equivalent). Breaking this down further:

Table egg exports: 84.3 million dozen
Egg product exports: 24,834 metric tons
The total value of egg exports in 2024 was $314.2 million, an increase of 5.9% compared to 2023.
In 2023, the U.S. exported $144.9 million worth of eggs, making it the 6th largest exporter globally. The U.S. maintains a positive trade balance in eggs, with exports exceeding imports by $139.6 million in 2023.

Imports

In 2023, the U.S. imported $110.15 million worth of eggs, primarily from Canada, the Netherlands, and the United Kingdom.

The U.S. generally is a net exporter of eggs, with exports significantly outweighing imports.

The top egg-exporting countries globally in 2023 were:

Netherlands: $610.1 million (20.5% of global egg exports)
Poland: $463.4 million (15.6%)
Turkey: $224.5 million (7.5%)
Mainland China: $222.8 million (7.5%)
Germany: $181.5 million (6.1%)

The import of eggs into the U.S. is subject to strict regulations, including requirements for USDA import permits, veterinary health certificates, port inspections, and import quarantines. These measures ensure the safety and quality of imported eggs entering the U.S. market.

The U.S. gov’t has several potential options to address the rising egg prices:

Regulatory Actions

Investigate price gouging: The Federal Trade Commission (FTC) could investigate potential antitrust violations or price gouging in the egg industry. Some lawmakers have urged the FTC to probe egg producers for potentially coordinating efforts to restrict supply and sustain inflated prices.
Ease FDA regulations: The National Chicken Council (NCC) has petitioned the FDA to modify policies that force the broiler industry to destroy safe, nutritious eggs. Relaxing these regulations could increase egg supply and potentially lower prices. The issue stems from a 2009 FDA rule known as the Shell Egg Rule, which requires all shell eggs to be refrigerated at or below 45°F within 36 hours of being laid. This rule, intended for table eggs, inadvertently affects surplus broiler hatching eggs. Broiler eggs intended for hatching must be stored at 65°F for up to five days before determining which eggs are needed for hatching. This process is incompatible with the FDA’s refrigeration requirements, forcing the broiler industry to discard surplus eggs instead of sending them to egg breakers for processing into liquid egg products.

The NCC has requested FDA to: Exercise enforcement discretion to allow surplus broiler eggs to be processed into egg products under USDA Food Safety and Inspection Service (FSIS) jurisdiction; Exempt surplus broiler hatching eggs intended for breaking from the refrigeration requirements in the Shell Egg Rule. NCC argues that the current policy results in significant waste, costing the broiler industry over $27 million annually. Allowing these eggs to be used would help alleviate egg shortages and high prices, especially during events like the recent highly pathogenic avian influenza (HPAI) outbreak. The eggs would be safe for consumption as they would be pasteurized during processing, which is effective in controlling Salmonella.

As of February 2025, FDA has not yet granted the NCC’s request. The FDA denied a similar request on June 12, 2023, stating that the proposed action would not maintain the same level of public health protection as the current egg safety rule.

Policy Interventions

Address avian flu outbreak: The government could allocate more resources to combat the ongoing bird flu crisis, which has significantly impacted poultry populations and egg production since 2022.
Implement price controls: While controversial and unlikely under the Trump administration, the government could consider temporary price controls on eggs to limit further increases.
Increase imports: Easing restrictions on egg imports could help supplement domestic supply and potentially lower prices.

Economic Measures

Provide subsidies: The government could offer subsidies (incentives) to egg producers to offset increased production costs and encourage greater supply.
Offer consumer relief: Implementing targeted financial assistance or tax credits for low-income families could help offset the impact of high egg prices.

USDA has several potential measures to stabilize egg prices:

Enhance biosecurity: Promote and enforce stricter biosecurity measures across poultry farms to prevent the spread of highly pathogenic avian influenza (HPAI).
Increase surveillance: Improve monitoring and early detection of HPAI outbreaks to minimize their impact on egg production.
Investigate price gouging: Collaborate with the Federal Trade Commission and Department of Justice to scrutinize potential anti-competitive practices in the egg industry.
Enhance price discovery: Implement new regulations to improve fairness and transparency in pricing mechanisms for poultry farmers.
Promote competition: Support smaller egg producers and encourage market diversification to reduce reliance on large conglomerates.
Expedite flock replacement: Facilitate faster repopulation of laying hen flocks after HPAI outbreaks.
Address labor shortages: Develop programs to alleviate workforce issues in the egg industry that hamper production.
Ease import restrictions: Consider temporary measures to increase egg imports and supplement domestic supply.
Implement purchase limits: Encourage retailers to set temporary limits on egg purchases to prevent panic buying and ensure fair distribution.
Monitor retail practices: Scrutinize grocery stores’ pricing strategies and promotional activities to prevent unjustified price hikes.
Invest in research: Fund studies on HPAI-resistant poultry breeds and alternative production methods to increase resilience in the egg industry.
Improve forecasting: Enhance data collection and analysis to better predict and prepare for future supply chain disruptions.

Challenges and Limitations

Government intervention in markets can have unintended consequences. Additionally, some factors contributing to high egg prices, such as inflation and increased production costs, may be beyond the government’s immediate control.

President Donald Trump, who campaigned on promises to lower food prices, is facing pressure from lawmakers to act. However, no specific plan has been announced to address the egg price crisis, but NEC Director Kevin Hassett has signaled that a plan is coming, which was released on Sunday.

Iowa Secretary of Ag Weighs In on The H5N1 Battle, Vaccine Potential And Trade Sensitivities

Tue, 28 Jan 2025 23:15:24 GMT

Eggs continue to be a hot topic in the news as supplies are down, prices are up – and expected to go even higher – and consumers are understandably concerned.

At the center of the issue, fanning the on-going problem for poultry and dairy producers as well, is the Highly pathogenic H5N1 avian influenza A virus (HPAI H5N1).

AgriTalk Host Chip Flory broached the topic with Iowa Secretary of Agriculture Mike Naig on Tuesday.

At the heart of their conversation was a two-part question – how does the U.S. address the virus and, in the process, prevent any potential negative ramifications on trade?

Naig says the federal government is taking what he described as a three-legged stool approach to addressing the problem in both industries.

He described the three legs of the stool as being USDA’s Animal and Plant Health Inspection Service (APHIS), individual state animal health officials and industry.

“We work very closely with APHIS on this, meaning that they’re the ones that are providing the indemnity payments to producers. They are providing the disposal and cleanup assistance, but they must work in close collaboration with the states and state animal health officials,” Naig says. “And then, of course, you’ve got to have the third leg, which is industry.”

Biosecurity Measures
Naig noted that while the virus hit the poultry industry hard in 2015, it struck even harder in 2024.

“It’s not just in the Midwest or West, it’s been really all across the country now, affecting the egg laying industry, broilers and turkey production,” Naig says.

A significant positive, Naig says, is that biosecurity measures in the poultry industry appear to be preventing farm-to-farm spread. “The industry continues to get high marks for that, which wasn’t the case in 2015, which was so devastating because we didn’t have those strategies in place.”

“I believe, and our experience has been, that our USDA partners in this regard have been very strong,” he adds.

As Naig addressed the three-legged stool approach the U.S. is taking to addressing the virus in dairy, he says the three partners have more work to do.

“Frankly, there’s been a lot of criticism to share around the three legs, if you will, on how states have reacted, or how strongly USDA should have reacted, and what the industry is doing to try to contain that virus. So, I would say on the dairy side of things, it’s a different story (than in poultry). There’s a lot more work that’s yet to be done to even understand how that virus is impacting those (dairy) herds.”

What Is The Role For Vaccines?
Flory asked Sec. Nagy whether he believes a vaccine could be part of the solution to the virus or whether that would set up too many trade barriers. Flory also asked whether the virus is stable enough for a long enough period of time for a vaccine to be developed that would work effectively.

Both are questions the U.S. is grappling with as it tries to get ahead of the virus in dairy and poultry.

Earlier this month, Reuters reported the U.S. will rebuild a stockpile of avian influenza vaccines for poultry that match the strain of the virus circulating in commercial flocks and wild birds, citing the Department of Agriculture.

Naig told Flory that he believes a vaccine could be developed, with regard to poultry specifically, and its use negotiated into trade agreements.

“Those are challenges, and yet those are things that can be worked on and can be done, but it’s not easily done. I would want to put a flag there,” Naig says.

“I’m supportive of developing … we should try to figure out whether this can be an effective tool. If you’re in the broiler business or if you’re in the turkey meat business or if you’re in the egg business or maybe you’re in the genetics business, those are very different in terms of how you view that vaccine.”

Naig explains part of the different viewpoints on vaccine use have to do with the difference between poultry business segments.

“We need to recognize that those sectors are different in how they’ll view and potentially use a vaccine,” Naig says.

“Don’t treat them all the same. It’ll make way more sense for some than others.”

Naig did not weigh in on vaccine development for the dairy industry specifically.

The full conversation between Naig and Flory on AgriTalk is available below.

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USDA Says Farm-level Egg Prices Could Jump Another 45.2% in 2025 Due to Avian Flu

Fri, 24 Jan 2025 19:51:30 GMT

The January 2025 Food Price Outlook released Friday shows while food price inflation has slowed overall, key sectors like eggs and beef remain volatile due to supply chain and input cost pressures.

Egg prices saw the biggest spike, according to USDA’s data, up 37% year-over-year. But the U.S. Bureau of Labor Statistics data shows the price of Grade A eggs in December was up 93% since January 2024. And when you look ahead, USDA expects outbreaks of highly pathogenic avian influenza to continue to cause egg prices to climb.

When it comes to USDA’s specific outlook released Friday, the agency uses recent trends in food prices based on Consumer Price Index (CPI) and Producer Price Index (PPI) data through December 2024.

Key Highlights of the report include:

Overall inflation trends:
- Food prices increased by 2.5% year-over-year as of December 2024
- Food-at-home prices rising by 1.8% and food-away-from-home prices increasing by 3.6%.
2025 forecasts:
- Food prices expected to rise by 2.2%, slower than the historical average.
- Food-at-home prices predicted to grow by 1.3%, while food-away-from-home prices are forecast to increase by 3.6%.
Insights Within Categories:
- Egg prices saw a sharp rise of 36.8% year-over-year in December 2024, with 2025 prices projected to climb by 20.3% amid ongoing supply constraints.
- Beef and veal prices are expected to increase modestly by 1.5% in 2025, following a 4.9% rise in 2024.
- Pork and fats/oils prices are forecast to decline in 2025, with decreases of 0.8% and 1.6%, respectively.
- Fresh fruit prices are anticipated to rise by 0.7%, while dairy product prices are expected to increase by 1.3%.

Producer Price Insights:

The PPI, which tracks wholesale prices, suggests continued volatility in farm-level and wholesale markets, with significant fluctuations predicted for eggs, milk, and fruits due to factors such as extreme weather and disease outbreaks. Farm-level egg prices are expected to see a sharp increase of 45.2% in 2025, with a wide prediction interval reflecting uncertainty.

Overall, while food price growth is expected to moderate compared to recent years, specific categories remain susceptible to sudden price shifts driven by global and domestic factors.

What’s the Deal with Egg Prices?

Sticker shock with eggs stared shoppers in the face to end 2024. According to the U.S. Bureau of Labor Statistics, the increase is even more staggering. They show the average cost of a dozen Grade A large eggs was $4.15 in December, up from $3.65 in November and $2.15 in January 2024.

According to livestock economists at Texas A&M University, the widespread outbreaks of highly pathogenic avian influenza, or HPAI, continue to be the culprit, driving egg prices to record highs across the U.S. Commercial laying flocks have been hit especially hard.

“There is seasonality to egg prices based on demand, but the cutting of supplies, in this case by disease, has driven prices higher,” says David Anderson, Ph.D., AgriLife Extension economist and professor in the Texas A&M Department of Agricultural Economics . “I wouldn’t be surprised to see them go higher in the next report, but there is price volatility when you consider the supply and demand factors in play.”

USDA’s Animal and Plant Health Inspection Service reports since first detected in 2022, 1,410 flocks have been impacted, including 637 commercial operations. As a result, 134.7 million birds have been culled.

Georgia Hit for First Time By Avian Flu

Just last week, the largest poultry producing state in the nation reported its first case of avian flu. The Georgia Department of Agriculture confirming the virus at a farm in Elbert County. In reaction, the Georgia Depart of Agriculture says all poultry exhibitions, swaps, meets and sales have been suspended as a precaution. The Department says cleanup is currently underway and nearby operations are under quarantine.

According to Greg Archer, Ph.D., AgriLife Extension poultry specialist and associate professor in the Texas A&M Department of Poultry Science , one reason the HPAI is spreading so quickly is because of environmental conditions. According to Archer, the disease prefers temperatures below 90 degrees.

“Farmers take biosecurity seriously because they’ve been dealing with the threat for years,” he said. “The big question this time is the strain mutations and how outbreaks in poultry facilities are occurring.

Archer also says migratory birds have historically been the main carrier of the disease. The pathogen will enter the poultry house through migratory bird feces on the bottom of the show or by a truck of vehicle that transports materials or feed between farms.

The Time It Takes to Rebuild

Once a flock is hit, the operation culls the animals, and replacing lost birds takes times. According to Archer, it can take 20 or more weeks for birds to develop from incubated eggs to pullets to production-ready laying hens.

In some cases, entire farms are wiped out. Archer says farmers bring those farms back online in phases to stagger their production by new and older birds.

As they do so, the eggs produced by younger and older birds are typically smaller while hens in their prime lay large to jumbo eggs.

And the key in building back the supply of eggs in the U.S., according to Archer, is rebuilding the flocks impacted by avian flu.

The other recent wild card, is recent transmission patterns in new animals, including dairy cows and pigs.

Consumer Demand and the Unknown

Now the question is how much consumers are willing to pay, and if it will impact demand?

“Producers will be expanding their flocks to produce more eggs to meet demand and capitalize on the high prices, while consumers might cut back,” says Anderson. “That combination aligning with fewer instances of avian influenza as the weather warms up would likely put downward pressure on prices. There is a natural ebb and flow to egg prices from seasonal supply and demand, and HPAI has just added volatility to the market.”

NPPC Raises Concern on USDA's Proposed Salmonella Regulation

Fri, 24 Jan 2025 18:50:58 GMT

The National Pork Producers Council (NPPC) recently raised concerns about the scientific validity and practicality of reaching the goal of protecting public health through the USDA’s Food Safety and Inspection Service’s (FSIS) proposed “Salmonella Framework for Raw Poultry Products.”

Under the regulation, FSIS would classify certain Salmonella levels and serotypes in raw poultry products as adulterants and, therefore, prohibit them from entering the food supply, NPPC explained in Capital Update.

Additionally, poultry slaughter operations would need to include in their procedures for addressing enteric diseases, such as Salmonella, microbial monitoring programs with statistical process control methods and specific sampling methods. NPPC said that the agency is proposing changes to its existing prevalence-based performance standards approach to Salmonella despite acknowledging that it “has been effective in reducing the proportion of poultry products contaminated with Salmonella.”

NPPC pointed out in its comments that to reduce illnesses, risk-based performance standards will incentivize establishments to evaluate their status by conducting Salmonella quantification testing.

“An adulterated determination can result in unintended consequences, such as food waste of safe products, and will not help protect public health,” the organization said. “NPPC also noted that because Salmonella isn’t an ‘added’ substance – it occurs naturally – it doesn’t meet the statutory definition of an adulterant, and that case law does not support Salmonella being classified as such.”

The microbiological testing FSIS is proposing involves a small portion of product, NPPC said, so it is not representative of all products. NPPC believes such testing should be used only for verification. The organization also cautioned FSIS about requiring the use of risk assessments that rely on serotypes to determine the bacterium’s virulence. Other factors, including handling, preparation, and infectious dose, also play a role in causing Salmonella illnesses.

“Consumer health and safety is at the forefront of the pork industry’s practices,” NPPC wrote. “Although the proposed rule is focused on raw poultry products, NPPC acknowledges the importance of food safety and taking a scientific approach to protect our nation’s food. Salmonella continues to be a high priority for the pork industry, as producers and processors implement strategies and look for improved ways to address the bacterium. The pork industry will continue its collaborative efforts with FSIS to deal with Salmonella through informed policy.”

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Are U.S. Consumers Drifting Away from Turkey at Thanksgiving?

Thu, 07 Nov 2024 19:42:34 GMT

Whole turkeys may be losing their grip as the dominant center-of-plate choice for Thanksgiving dinner, according to the latest report from CoBank’s Knowledge Exchange . Although abundant turkey supplies and favorable prices leading into the holiday season indicate turkey will retain its position as the traditional protein of choice this Thanksgiving, consumer trends are making the future less certain.

“Growing demand for convenience, longer-term pressure on turkey supplies and increasing competition from beef and pork marketers may all impact the longevity of the holiday turkey,” CoBank says.

Most consumers only think about cooking a whole turkey once a year, points out Brian Earnest, animal protein economist with CoBank, saysin a release.

“Some of those consumers have moved away from preparing a whole turkey for Thanksgiving,” Earnest says. “The beef and pork sectors have seen the shift in consumer behavior and view it as an opportunity to capture a bigger share of Thanksgiving protein purchases.”

Holiday promotions often drive what shoppers choose to put in the cart. Retailers typically price turkeys as a loss leader in hopes that sales on the remainder of the consumer’s Thanksgiving shopping cart will include items that offset those losses, the release says. USDA’s feature activity index, however, indicates a notable decline in promotional turkey pricing around the holidays in recent years.

“As retailers began planning for Thanksgiving features last January, projections for turkey inventories were reported at their lowest point in four decades, signaling reduced availability in 2024,” CoBank reports. “However, inventories of whole turkeys in cold storage were up about 4% year-over-year when they peaked in September at 246 million pounds.”

Inventories are still down 100 million pounds from 2018 levels. This means the improved supply picture should allow consumers to find favorable prices for whole turkeys this Thanksgiving.

Sliding demand for whole turkeys over the long term means producers should evaluate the overall product mix more closely.

“The opportunity to grow turkey consumption may be elsewhere,” Earnest says. “Per Circana, ground turkey has shown tremendous strength this year, with retail volume sales increasing 5.5% to reach $1.9 billion in sales over the 52 weeks period ending Sept. 8. The upswing in demand for different types of turkey products reflects the changing nature of consumer preferences.”

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Oregon Identifies 3 Human Cases of Avian Influenza in Farm Workers from Washington State

Fri, 01 Nov 2024 14:21:40 GMT

Avian influenza (bird flu) has infected three more people from Washington state after they were exposed to poultry that tested positive for the virus, according to health authorities in Washington and in Oregon, where the human cases were identified.

A total of 39 people have tested positive in the U.S. this year, including nine from Washington, as the virus has infected poultry flocks and spread to more than 400 dairy herds, federal data show. All of the cases were farm workers who had known contact with infected animals, except for one person in Missouri.

The people from Washington cleaned facilities at an infected chicken farm after birds were culled to contain the virus, the Washington State Department of Health said in an email on Thursday.

Officials tested workers who had symptoms, including red eyes and respiratory issues, and those with potential exposure to the birds, the department said. People with symptoms were told to isolate and given antiviral treatment, it added.

Oregon identified the three new cases after the people traveled to the state from Washington while infected, the Oregon Health Authority said in a Thursday statement. They have since returned to Washington, where public health staff are monitoring them, according to the statement.

There have been no infections among people living in Oregon and is no evidence of human-to-human transmission, the Oregon Health Authority said. It said the risk for infection to the general public remains low.

Since 2022, the virus has wiped out more than 100 million poultry birds in the nation’s worst-ever bird flu outbreak.

H5N1 bird flu was confirmed in a pig on a backyard farm in Oregon, the first detection of the virus in swine in the country , USDA said on Wednesday.

(Reporting by Tom Polansek; Editing by Lincoln Feast)

Your Next Read: Influenza Expert Gets Real About the H5N1 Risk to Your Swine Herd

Why Students Should Apply for the 2025 Summer Veterinary Internship Program Now

Wed, 30 Oct 2024 22:13:43 GMT

The Iowa State University College of Veterinary Medicine (ISU CVM) is seeking veterinary student applicants for summer 2025 swine, bovine and poultry internship positions.

Will Fombelle, DVM, is a veteran of several internships spread across his undergraduate studies in animal sciences and also into his veterinary school education. During the summer of 2012, he completed the Swine Veterinary Internship Program (SVIP).

“While in school, I took on the attitude of completing as many internships as I possibly could in order to not only narrow down my career choice but also my future employer. By participating in these programs, I was able to mold my interests into the fields of swine medicine and production which greatly accelerated my vision of where I chose to start my career in veterinary medicine at Carthage Veterinary Service,” he said in a previous PorkBusiness.com article .

Participants in the SVIP collaborate with a mentoring veterinarian or team of veterinarians at a production system or practice. Students are immersed in modern swine production and health daily and take the lead on designing and executing a field trial with guidance from mentors, ISU CVM said on its website . Students also take part in diagnostic test sampling and implement the principles and methods of swine diagnostic collection, testing and interpretation.

“Even if your university has classes well into the summer, you have a study abroad trip planned, a wedding or another reason you might not be able to commit to the entire 12 weeks, go ahead and apply,” ISU CVM encouraged. “Just note your availability in the section where it asks about conflicts. We can’t guarantee we can accommodate all schedules but if a student is selected we will try our hardest to be flexible and make it work.”

Applications are due Dec. 1, 2024 (late applications are accepted but higher priority will be given to those received by Dec. 1).

Apply here.

“These summer internships are the first exposure for students to the real world, and we should do our best to make each student’s experience a positive one,” Fombelle wrote.

Learn more here.

Your Next Read: Find and Develop Your Replacement in the Pork Industry

GOP Lawmakers Want Answers from USDA Over Pure Prairie's Bankruptcy

Tue, 29 Oct 2024 17:33:08 GMT

Republican lawmakers have called on USDA to provide explanations regarding the oversight of Pure Prairie Poultry, Inc., which filed for bankruptcy shortly after receiving substantial USDA funding. The situation has raised concerns about the department’s management of grants and loans, as well as its impact on farmers and the poultry industry.

A group of Senators, including Sen. Jonie Ernst (R-Iowa), sent a letter to USDA this week.

As AgDay reported on Tuesday, the Iowa Department of Agriculture euthanized roughly 1.33 million chickens.
That’s after Pure Prairie Poultry said in late September that due to its bankruptcy, it could no longer afford to buy feed for its flock living on 14 Iowa farms. It’s estimated the process cost USDA $2 million.

The company also contracted with farmers in Wisconsin and Minnesota who were also affected.

Company Received $45 Million from USDA

Ernst says Pure Prairie Poultry was only in business for a few short years, and in that time, she says the company received $45 million dollars in grants and loans from USDA .

Nearly $7 million of that was from USDA’s Meat and Poultry Processing Expansion program.
The company also received a $38.7-million loan from USDA’s Food Supply Chain Guaranteed Loan Program , which is part of President Biden’s “ Build Back Better ” plan.

According to a White House Fact Sheet , this was tied to the Biden-Harris administration’s plan to promote competition in the American economy and “create a fairer, more resilient, and more dynamic economy.”

The $45 million was used by Pure Prairie Poultry to help expand and renovate a shuttered processing plant in Charles City, Iowa. USDA issued a press release in July of 2024 to celebrate the investments.

Lawmakers’ Demands

According to the lawmakers’ letter, which is demanding accountability and answers, close to 2-million chickens were “left without feed or any processing option.”

The letter requests explanations on several key points:

The oversight process for loan and grant guarantees
USDA’s awareness of Pure Prairie Poultry’s financial situation
Steps taken to assist affected growers and state agriculture departments
Efforts to salvage the Charles City plant

In the letter, lawmakers said, “Over the past two years, USDA has provided $223 million in loan guarantees and grants to 30 meat and poultry processing companies. A press release from the USDA celebrated this funding as part of the Biden-Harris Administration’s ‘commitment to strengthen critical food supply chain infrastructure to create more thriving communities for the American people.’ Unfortunately, this investment has instead resulted in the loss of income, jobs, and poultry across three states.”

“Pure Prairie Poultry’s abrupt closure shows the importance of proper vetting and oversight at USDA to ensure the agency’s multi-million dollar grants and loans are actually helping producers, rather than being flushed down the drain and harming entire rural communities in the process,” Ernst says. “Encouraging the growth of meat processing and strengthening our supply chain is a cause I can support, but this lack of accountable spending hurts our farmers, livestock, and taxpayers.”

USDA Defends Grants an Programs

A USDA spokesperson defended the department’s programs, saying they have worked to “rebuild and create new markets for U.S. farmers” after challenges posed by trade wars and the Covid-19 pandemic.

The spokesperson also urged lawmakers to focus on passing the overdue farm bill: “Rather than trying to score political points, those members of Congress should work with USDA to reopen the facility and pass a new Farm Bill, which is now two years late.”

More Background on Pure Prairie Poultry

More than 1 million birds had to be culled in Iowa due to the company’s inability to care for them.
Contracted farmers in Wisconsin and Minnesota were also affected.
According to the lawmakers’ letter, approximately 2 million chickens were “left without feed or any processing option.”

The lawmakers have requested USDA respond to their questions by Nov. 8.

Your Next Read: Senator Stabenow “Holds The Keys” to the Farm Bill Getting Done in 2024

Tyson Foods Heir Avoids Jail, Pleads Guilty to Drunk Driving

Tue, 22 Oct 2024 13:27:39 GMT

John R. Tyson, Tyson Foods Inc.'s heir, pled guilty to drunken driving and other charges after his arrest in June, agreeing to pay a fine, but avoiding additional jail time, Bloomberg reports.

Tyson, the 34-year-old great-grandson of the company’s founder, was sentenced to pay $960 in fines and fees, along with 32 hours of public service, the article said. According to prosecutors in Fayetteville, Ark., his sentence of 90 days in jail was suspended as part of a plea deal.

After the incident in June, Tyson was suspended as chief financial officer. He was permanently removed from his role two months later, the article said.

This was his second arrest related to public intoxication. In November 2022 , he was found intoxicated and asleep in someone else’s home.

Curt Calaway was chosen to replace Tyson as CFO on Aug. 29. The company said in a release that Tyson is still with the company, but is on “health-related leave.” Calaway has been with the company since 2006. He reports directly to Donnie King, President and Chief Executive Officer of Tyson Foods.

Your Next Read: Tyson Foods’ CFO Found Intoxicated And Asleep In Random Home

Hurricane Helene Shutters Poultry Plants, But Smithfield Did Not Suffer Material Disruptions

Tue, 01 Oct 2024 12:39:00 GMT

Hurricane Helene shut at least two poultry plants in Georgia and North Carolina and twisted cotton crops in South Carolina in blows to U.S. food and fiber production, company and agriculture officials said on Monday.

More than 100 deaths across a half-dozen states have been attributed to the powerful storm that slammed into Florida’s Big Bend region late on Thursday before cutting a destructive path through Georgia and into the Carolinas.

Wayne-Sanderson Farms, the nation’s third largest poultry producer, closed a Moultrie, Ga., processing plant due to a loss of electrical power from downed transmission lines, company spokesman Frank Singleton said.

The complex processes 1.3 million chickens weekly and its timeline for resuming operations depends on Georgia Power crews restoring power, Singleton said. The company is providing fuel deliveries to local farms that also lost power, he said.

In South Carolina, many poultry operations are running on backup generators, said Eva Moore, spokesperson for the South Carolina Department of Agriculture. The state’s cotton crops took a big hit, she added.

“Open bolls have been knocked around, and plants are twisted,” Moore said. “This will make for a complicated harvest and may affect the grades of the cotton.”

Concerns over potential crop damage in key growing areas boosted ICE cotton futures.

In North Carolina, Smithfield Foods, the world’s largest pork processor, said transportation for its hog production operations was strained but the company did not suffer material disruptions.

A chicken plant near Morganton, N.C., is down, said Bob Ford, executive director of the North Carolina Poultry Federation. Still, the poultry industry was generally lucky because feed mills are operating and floods largely did not affect farms, he said.

For live chickens around Morganton, “they’re just going to get fatter” until the processing plant reopens, possibly on Wednesday, Ford said.

(Reporting by Tom Polansek in Chicago; Editing by Bill Berkrot)

Your Next Read: U.S. Southeast Faces Daunting Cleanup from Helene as Death Toll Rises

Hormel Foods Cuts Annual Sales Forecast on Lower Turkey Prices

Wed, 04 Sep 2024 15:03:35 GMT

Skippy peanut butter maker Hormel Foods cut its annual sales forecast on Wednesday, hurt by lower commodity prices and a production disruption at its Planters brand manufacturing facility in Virginia.

Hormel’s shares were down about 5% in premarket trading. The company also missed market expectations for third-quarter sales and narrowed its annual adjusted profit target.

Lower commodity prices for high-volume export products such as turkey and fresh pork have weighed significantly on Hormel’s business.

A food safety issue at its facility in Suffolk, Virginia, which makes the Planters brand of snacks, also took a toll on U.S. retail volumes in the quarter ended July 28, which fell 9%.

Hormel said it now expects an impact of 6 cents per share related to the disruption for the fiscal year ending October 2024. It is also assessing the financial impact of storm damage at its facility in Papillion, Nebraska, it added.

The Austin, Minn.-based company expects net sales of $11.8 billion-$12.1 billion for fiscal 2024, down from its prior forecast of $12.2 billion-$12.5 billion.

Its quarterly net sales fell 2.2% to $2.90 billion, missing analysts’ average estimate of $2.95 billion, as per LSEG data.

Still, budget-conscious consumers making more meals at home helped drive demand for several key Hormel brands such as Jennie-O lean ground turkey and Applegate’s meats, as well as sauces and snacks, partially offsetting overall declines.

Peer Tyson Foods topped market expectations for revenue and profit in August as demand recovered for its packaged meats and cold cuts and on leaner inventory, such as in its chicken supplies.

Excluding items, Hormel Foods earned 37 cents per share for the third quarter. Analysts had expected 36 cents per share.

The company expects annual adjusted earnings per share between $1.57 and $1.63, compared with the $1.55 to $1.65 per share forecast earlier.

(Reporting by Juveria Tabassum; Editing by Janane Venkatraman )

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Pilgrim’s Pride in $100-Million Settlement Over Chicken Farmers' Pay

Wed, 21 Aug 2024 17:07:44 GMT

Pilgrim’s Pride, one of the largest U.S. poultry processors, agreed to pay $100 million to settle claims it conspired with rivals to underpay chicken farmers, the final and by far the largest settlement in the seven-year-old antitrust case.

A preliminary settlement was filed on Friday with the U.S. District Court in Muskogee, Oklahoma. It requires approval by U.S. District Judge Robert Shelby, who normally sits in Utah. Pilgrim’s Pride denied wrongdoing in agreeing to settle.

The litigation addressed accusations that large poultry producers conspired to keep farmers’ pay artificially low, by sharing confidential information about compensation and by agreeing not to actively recruit each others’ farmers.

Pilgrim’s Pride is the last remaining defendant. If its settlement is approved, the total recovery will be $169 million, minus legal fees and other expenses.

Tyson Foods TSN.N, Sanderson Farms, Koch Foods and Perdue Foods previously settled for $21 million, $17.75 million, $15.5 million and $14.75 million, respectively.

Pilgrim’s Pride, based in Greeley, Colo., did not immediately respond to a request for comment.

Gary Smith, a lawyer for the farmers, called the settlement an “outstanding” result that he believed was the largest antitrust settlement by any meatpacker or poultry processor.

The settlement covers a certified class of 24,354 so-called growers from Jan. 27, 2013, through Dec. 31, 2019, court papers show.

Growers provide land, labor and equipment to raise chickens until the animals are ready for slaughter, and then return the animals to poultry producers.

The case is In re: Broiler Chicken Grower Antitrust Litigation (No. II), U.S. District Court, Eastern District of Oklahoma, No. 20-md-02977.

(Reporting by Jonathan Stempel in New YorkEditing by Matthew Lewis)

Tyson Foods Tops Quarterly Estimates as Demand Rebounds, Costs Begin to Fall

Mon, 05 Aug 2024 13:43:59 GMT

Tyson Foods surpassed Wall Street expectations for third-quarter revenue and profit on Monday, indicating that demand was rebounding for its meat products, while lower grain prices reduced costs for animal feed.

After sales declined in 2023, Tyson Foods is now starting to see some of its customers return to stores to purchase its products as higher costs of dining out push people to cook more meals at home.

The U.S. meat packer’s net sales rose 1.6% to $13.35 billion in the quarter, compared with analysts’ estimates of $13.24 billion. It continues to expect full-year revenue to be flat compared to fiscal 2023.

The company’s beef segment - its largest - saw volumes up 4.4%, building on the last quarter’s growth of 2.8% that was driven by higher average carcass weights. Prices in the segment also rose to 1.4% as it continued to grapple with limited cattle supply.

Still, sales in Tyson’s chicken segment - which struggled with an excess of supply during 2023 - were down 3.2% in the quarter, while prices also dropped 3.7%.

Previously, Tyson said it had lowered production to align its supplies with consumer demand.

Similarly, while its pork segment reported a 10.4% rise in quarterly sales, its volumes increased only by 1.2% that were sequentially lower than 2.9% seen in the second quarter, when the company saw more hog supplies.

Meanwhile, Tyson Foods has also undertaken a vigorous cost-control plan under which it has sold off a poultry facility, shuttered six U.S. chicken plants, said it would close a pork plant and had cut jobs to grow profit margins.

Lower grain prices and raw material expenses have helped Tyson Foods post adjusted earnings of 87 cents per share, topping estimates of 65 cents.

(Reporting by Granth Vanaik in Bengaluru and Tom Polansek in Chicago; Editing by Maju Samuel)
Tyson Foods tops quarterly estimates as demand rebounds, costs begin to fall

Former Tyson Foods Chicken Farmers Face High Costs Switching to Eggs

Wed, 01 May 2024 13:43:24 GMT

By Tom Polansek

Some U.S. farmers who once raised chickens for Tyson Foods to slaughter are shifting to sell eggs instead after the meatpacker closed six plants, a move that left local suppliers with limited options for work.

In one example, former Tyson suppliers in central Virginia formed a cooperative that will produce cage-free eggs for Indiana-based Dutch Country Organics on a dozen farms, after Tyson closed its nearby Glen Allen plant last year.

In Dexter, Missouri, the world’s biggest egg company, Cal-Maine Foods, in March finalized a deal to buy another chicken meat plant Tyson shuttered. Cal-Maine recruited local farmers to produce eggs.

The switch to eggs, which carries high costs, reflects the tough choices former Tyson suppliers around the country must make following the company’s 2023 decision to shut plants in an effort to return to profitability in its chicken business after misjudging consumer demand.

Egg farming also comes with risk as lethal bird flu infections have hit laying hens harder than broiler chickens raised for meat. The virus flared up for a third year this spring, resulting in the culling of nearly 10 million hens involved in commercial egg production so far this year. Cal-Maine culled about 1.9 million birds this month after an outbreak in Texas.

MILLIONS TO UPGRADE

Former broiler growers must spend millions of dollars on barn and equipment upgrades to produce eggs, a notoriously volatile market, 18 poultry producers, government officials and industry experts told Reuters. Last year, egg prices tanked after reaching record highs due to the worst-ever outbreak of bird flu in poultry.

“It’s a very expensive investment from the grower,” said John Bapties, who is president of the Central Virginia Poultry Cooperative and raised chickens for Tyson for 20 years before the Glen Allen plant closed.

His cooperative is placing hens in barns that formerly housed broiler chickens, and expects to sell cage-free eggs produced by about one million birds to Dutch County Organics within a year, he said.

Farmers needed to replace dirt floors in barns with concrete and install nesting systems for hens, among other costly renovations.

Taylor Lee, a former Tyson grower in DeWitt, Virginia, said he decided against the switch. He will focus on raising crops while keeping his poultry barns empty for now.

“They’re painting a pretty picture with that co-op but it’s $2.8 million roughly to upgrade my farm to egg production,” Lee said.

Roger Reynolds, another Virginia farmer who supplied broiler chickens to Tyson, said he is considering producing eggs for Braswell Family Farms. His daughter found work there after Tyson’s plant closure eliminated her job.

Producing eggs means a different way of life, Reynolds said. For one thing, hens lay most of their eggs in the morning, meaning farmers cannot go to church on a Sunday without checking their barns first, he said.

CAGE-FREE EGGS

The United States has about 125 million cage-free laying hens, about 40% of total layers, U.S. government data show. More are needed after some states banned sales of eggs from caged hens and restaurants committed to cage-free supplies, Dutch Country Organics CEO Lamar Bontrager said.

“I’ve been getting calls like crazy,” Bontrager said. “Those guys are all concerned of where to procure their eggs.”

Dutch Country sells eggs to retailers including Walmart , Kroger and Target, according to Virginia officials.

Former broiler growers offer egg companies an opportunity to expand production because the farmers are already familiar with poultry.

“It’s one of the ways that these companies are converting: by grabbing old barns,” said Brian Moscogiuri, global trade strategist for Eggs Unlimited.

Tyson declined to comment. The company said last year that 55 broiler growers supplied the Glen Allen plant and that it offered them buyout packages. The plant had about 700 employees.

Tyson has laid off corporate employees and said it will close an Iowa pork plant, in addition to shutting chicken plants. Farmers depended on the plants as markets for their livestock.

The meatpacker is slated to report quarterly results on Monday.

In Arkansas, the third biggest broiler-producing state, Tyson closed two chicken plants. Some of its former growers found work supplying other chicken companies, said Jared Garrett, Arkansas Farm Bureau’s director of commodity activities and economics.

“They lucked out,” he said.

JOBS WANTED

Tyson closed chicken plants in Dexter and Noel, Missouri, with about 700 workers and 1,500 workers, respectively. Cal-Maine said it plans to initially employ about 100 people at the Dexter plant.

“While I welcome Cal-Maine’s investment in Dexter, it does not right the wrongs of Tyson or guarantee new jobs for the more than 2,000 Missourians now out of one,” U.S. Senator Josh Hawley of Missouri said in a statement to Reuters.

David Wyman, Dexter’s city administrator, also welcomed Cal-Maine, though it is expected to work with a fraction of the farmers who supplied Tyson. Cal-Maine said it expects to expand over time and that revenue opportunities will be as good or better than farmers had under previous contracts.

But some former Tyson suppliers are left with empty barns, Wyman said: “They’re really in bad shape.”

Egg farming is generally harder to get into operationally than raising chickens for meat; requires more capital and labor expertise; and carries higher disease risks, said Wendong Zhang, an assistant professor and agricultural economist at Cornell University.

“Due to the closure of the plants and termination of contracts, the switch is in a way a move of necessity,” he said.

(Reporting by Tom Polansek; Editing by Caroline Stauffer and Anna Driver)

Minnesota Goat Confirmed to Have Highly Pathogenic Avian Influenza

Fri, 22 Mar 2024 17:21:58 GMT

A juvenile goat in Minnesota recently tested positive for highly pathogenic avian influenza (HPAI). While HPAI has been detected in predatory mammals that prey on infected birds, this is the first identified case of HPAI in domestic livestock in the U.S. The goat lived on the same premises where a poultry flock tested positive for HPAI in late February. The goat shared the same pasture and sole water source as the poultry flock.

HPAI is a known disease of wild and domestic poultry and waterfowl. There is limited information available about HPAI infection in ruminants, though in some species, animals with immature or compromised immune systems appear to be at greater risk of infection. Only young goats were afflicted in the Minnesota case, not mature goats. This case is being investigated by the Minnesota Board of Animal Health with the assistance of the U.S. Department of Agriculture.

“As we aim to protect livestock for our North Dakota producers, the risk of transmission increases during spring,” says Miranda Meehan, North Dakota State University Extension livestock environmental stewardship specialist.

“While we don’t envision this zoonotic transmission to be commonplace, good biosecurity protocols separating livestock from poultry/waterfowl is a good production practice to reduce the potential spread of HPAI to our small ruminants during the spring migration of wild birds,” says Travis Hoffman, NDSU Extension sheep specialist.

“H5N1 HPAI has been detected in wild birds throughout all U.S. migratory flyways , says Dr. Gerald Stokka, NDSU Extension veterinarian and livestock stewardship specialist. “Wild birds can be infected without showing symptoms of the infection. While waterfowl are the primary carriers, positive cases are being documented in predatory birds and mammals, and now domestic goats.”

NDSU Extension experts support the biosecurity practices released by University of Minnesota Extension that can reduce the potential for domestic animals to contract HPAI. Recommended practices include:

Do not allow poultry and livestock species access to ponds, wetlands and other stagnant water sources that are frequented by wild waterfowl such as ducks, geese or swans.
Watch poultry and livestock for signs of illness, including reduced appetite, fever, inability to stand, depression, nasal discharge, diarrhea, coughing and change in behavior.
Consider housing poultry separately from other livestock species and minimize poultry access to pasture areas that are grazed by other livestock species.
Do not allow poultry, waterfowl and wildlife to share water sources and feedstuffs with other livestock species.

Protocols for protecting livestock include:

In the Minnesota goat case, infected goats shared the same water source as infected poultry. Limiting livestock exposure to potentially inflicted-HPAI poultry is the first action of defense.
Current influenza vaccines used in horses are not effective against HPAI. Always consult your veterinarian before administering vaccinations.
Many cattle are vaccinated against Parainfluenza-3 (PI-3), a virus that can cause respiratory issues. Parainfluenza viruses are in a different family from influenza viruses and the PI-3 vaccine does not provide protection against influenza.
If you have an unexplained death in one of your animals, consult with your farm veterinarian, contact the North Dakota Board of Animal Health .

“There is no evidence that anyone has contracted the virus from eating a fully cooked bird, either domestic or wild,” says Julie Garden-Robinson, NDSU Extension food and nutrition specialist and professor of health, nutrition and exercise sciences. “It is always a safe practice to fully cook wild game to 165 degrees Fahrenheit, regardless of whether there is a threat of HPAI.”

NDSU Extension HPAI resources are available at ndsu.ag/hpai . UMN Extension HPAI resources are available at z.umn.edu/HPAIgoat .

Avian influenza surveillance and testing in wild birds is being done by the USDA’s Animal and Plant Health Inspection Service (APHIS) and the North Dakota Department of Game and Fish. To learn more about HPAI cases in birds and mammals, please visit the USDA’s APHIS website . Report sick and dead wildlife at https://gf.nd.gov/wildlife/diseases/mortality-report . Direct wild bird avian influenza questions to 701-204-2161.

Poultry Line Speed Lawsuit Dismissed Against USDA

Wed, 28 Feb 2024 16:43:08 GMT

A U.S. District Court judge for the Northern District of California, San Francisco Division, dismissed a lawsuit filed four years ago against the USDA regarding its decision to increase line speeds at poultry plants.

Originally filed on Feb. 25, 2020, the complaint by the Humane Society of the United States, Animal Outlook, Mercy for Animals, Government Accountability Project and Marin Humane alleged USDA implemented line speed changes without providing time for legal notice and time for public comment.

The USDA’s Food Safety and Inspection Service (FSIS) introduced a waiver system in 2018 to permit poultry processors participating in the New Poultry Inspection System (NPIS) to operate line speeds exceeding 175 birds per minute.

USDA argued the plaintiffs lacked standing as the 2018 decision was not reflective of the agency’s final action. The 2018 waivers were terminated and modified waivers were allowed under new criteria in 2022.

The court dismissed the complaint with leave to amend. The plaintiffs must file any amended complaint within 21 days. If the plaintiffs do not amend the complaint, the court will enter judgment in favor of the defendants.

5 Practical Ideas Pork Producers Can Borrow from the Egg Industry

Mon, 26 Feb 2024 17:54:41 GMT

The laying hen industry shares many similar risks to the pork industry regarding the need to prevent the introduction of disease agents onto farm operations. When highly pathogenic avian influenza (HPAI) struck the commercial poultry industry in both 2015 and 2022, the result was millions of birds that required depopulation and disposal.

Versova general manager for cage-free production Craig Rowles, DVM, said the primary method of preventing this risk is to invest time, money and effort into biosecurity measures. As a former pork producer himself, Rowles shared at what egg producers are doing now that swine producers could benefit from trying (if they aren’t already doing) in their own operations.

Layered approach
“It’s everyone’s responsibility to keep flocks and herds from becoming infected by focusing on biosecurity they can control on their premises,” Rowles explained during his presentation at the American Association of Swine Veterinarians annual meeting in Nashville, Tenn.

That’s why he believes it’s critical to incentivize good behaviors on the farm. It’s also why Versova has invested millions in creating a lasting, comfortable and appealing environment within their operations to keep people inside.

“The most basic principles for biosecurity remain the same in layers as pigs. The most important aspect of those principles is to maintain the line of separation,” he shared. “The lowest hanging fruit of biosecurity is to prevent disease from being ‘walked’ into a farm.”

Perhaps one of the biggest differences between swine and layer operations is the size and scope of the operations.

“It is not unusual for a layer farm to have 150 to 200 employees,” Rowles says. “We are heavily investing in infrastructure to make the process easy for employees to operate.”

He says it’s important to think of ways to keep people inside. Rowles encourages systems to think about the reasons why employees leave the building and work to find solutions to keep them inside. Here are five practical examples he shared from the egg industry to help make biosecurity easier to implement on farms.

1. Invest in quality shower facilities.
“Make sure you have good shower systems so the last person in gets a hot shower,” Rowles says. Versova has invested in in-floor heat, so floors dry out in the winter. They use hotel industrial-grade fan systems to exhaust the humid air out. Humidistats in the shower run the fan until the humidity is brought down.

2. Prioritize the break room.
Provide employees with a quality break room. At Versova, their break rooms have outside windows, nice floors, good chairs and TVs to deliver coaching/teaching or to be able to watch the news during breaks.

3. Incorporate central kitchens.
Although a nice kitchen may not be needed for a biosecure facility, it does incentivize people to work for us, Rowles explains. “We want to keep them inside the facility as opposed to going out to get their lunch,” he adds.

4. Keep outside work outside, and inside work inside.
Versova farms have vibrators on every bin that can be controlled by workers inside when feed bridge events occur. He says this works about 80% of the time and when it doesn’t, there are designated people who work outside who can go check problems on the outside.

5. Set up a perimeter buffer.
Put fencing around the entire operation to keep wild animals out, he adds. Rolling automatic gates are also helpful to help control traffic in and out of the farm.

Thanksgiving Food Costs Reflect A Healed Supply Chain

Mon, 20 Nov 2023 20:44:23 GMT

A traditional Thanksgiving feast reflects two current trends in food-at-home economics: increased retail food costs vary by category and the supply chain is back to pre-COVID patterns. Dr. Michael Swanson, chief ag economist at Wells Fargo, details more in the bank’s annual Thanksgiving Food Report , which he says had some categories not clear on pricing until the weeks just before Thanksgiving.

“It was a surprising report and has really changed in dynamics in the last couple of weeks as we watch these markets,” Swanson says. “Food inflation is still going up at the retail level, but it’s now a much slower rate of growth.”

From the Thanksgiving report he details:

Turkey

Year over year, whole fresh turkeys are down 16% at the retail level. This is despite wholesale turkey prices down nearly 30%. Swanson doesn’t think the consumer will be able to get any more of the price spread.

“We saw about one and a half million more birds put in the barn in June and July of this year than the previous year,” he says. “I joke, If turkey doesn’t celebrate the Fourth of July, it’s not going to celebrate Thanksgiving. And so, we saw the excess supply and bigger birds really pressure wholesale prices in a big way.”

Swanson notes 84% of fresh turkeys sold are sold in November.

Vegetable, Fruit and Potato Side Dishes

Canned foods are experiencing increased input costs for packaging.

“Canned product is much more expensive than a year ago on a percentage basis but as part of your spend in your budget, it’s probably not going to break the bank,” Swanson says. “It’s always the protein that really catches people’s eyes–that’s where the dollars are spent.”

Cranberries provide an example to contrast the current cost difference in canned v. fresh. While fresh cranberries are down 20% in price, canned cranberries are up 60%, and canned cranberry sauce is up 7%.

Canned green beans are up 9% year over year. Canned pumpkin is up 30% this year compared to last.

“The fresh products are not experiencing such a high rate of increase. First, we’ve had good harvests this year. And refrigerated shipping is down—a year ago suppliers were paying $3.80 per mile, and this year it’s $3.30 per mile,” Swanson says.

Swanson notes consumers who live near the production of key crops may see lower prices, which for cranberries and green beans the no. 1 producing state is Wisconsin, while Illinois is the top pumpkin producing state.

The dry weather of 2022 in the Pacific Northwest is lingering on this year’s potato crop as the more expensive seed potatoes set the stage for 2023. Swanson notes russet potatoes are at an all-time year: $1.17 in September 2023 compared to $1.08 the same time last year.

As for sweet potatoes, almost two-thirds of our national harvest comes from five counties in North Carolina. Thanks to good yields and storage, prices in this category are only up 4% compared to 2022.

Supply Chain Status

“The supply chain has completely healed. Retailers are now seeing they can get the products they want and talk to wholesalers about price,” Swanson says. “Retailers are running more features and looking for trade money within the channel.”

As such Swanson suggests deals are to be found by shopping the specials, and if possible, visiting more than one store to take advantage of the different sales and offers.

“In 2024, we’ll probably see some of the food categories going down compared to the year prior,” Swanson says, specifically highlighting pork and poultry as sectors to watch.

Egg Prices See Largest Monthly Drop in 72 Years, But Still Aren't Back to Normal

Tue, 13 Jun 2023 20:20:35 GMT

Egg prices have sent shoppers on a rollercoaster this year. May’s CPI shows inflation slowed, but food prices, housing prices and the cost of used vehicles are all attributing to current inflation.

The most sizable drop came with egg prices. The CPI shows egg prices now average $2.66 per dozen, which represents the following changes:

13.8% lower month-over-month
That represents the largest monthly decline since January 1951
Year-over-year, prices are only down 0.4%

Before shoppers get too excited, some historical perspective shows egg prices are still higher than average. A decade ago, egg prices were $1.91 per dozen. Even in 2020, egg prices were lower, averaging $1.51, which is more than $1 lower than what grocery shoppers are paying today.

While the sudden decline may seem like shoppers are getting a bargain, it’s similar to what drivers experience with gas prices. When prices for a gallon of gas go from $2 to $4, then come back down but only to $3, it feels like prices are much cheaper, when in reality, prices are still higher than they were before the rapid spike.

Why Did Egg Prices Spike Higher Earlier This Year?

According to economists, the rapid rise in egg prices was a function of supply and demand . In January, avian influenza caused U.S. egg producers to lose more than 50 million birds, many of those being commercial laying flocks. Couple that with high holiday demand for things like baking, and the two factors clashed to create higher prices at the store.

“We’ve had a significant reduction in supply from depopulation this spring and again in the fall and winter,” Lusk told AgWeb in January. “Couple that with inelastic demand for eggs, and you get the price spikes we’re seeing.”

Expensive Eggs Ate Into Bacon Demand

The CPI shows the price of bacon and related products fell 9.8% year-over-year. It’s also a 1.4% decline in a month. Prices may be on the decline, but one livestock economist thinks it’s possible the high egg prices also caused shoppers to buy less bacon.

During World Pork Expo last week, Steve Meyer of Partners for Production Agriculture, explained why he has a bleak outlook for the pork producers’ profits this year . One reason is demand. Meyer also explained it’s not just due to the 35% spike in input costs compared to 2019, but also lower hog prices.

Part of the problem is a decline in domestic demand, which is driven by wholesale demand, among four other factors. One of those four is the price of complementary goods, like eggs. As the rapid run-up in egg prices caused some shoppers to scale back on buying as many eggs for breakfast, that decision also hurt bacon demand and prices, as well.

The Real Winner of the 2023 Egg War

Higher egg prices did bode well for backyard flocks. More Americans decided to try their own hand at raising a backyard flock, and as a result, chicken suppliers like Tractor Supply cashed in.

According to Forbes, Tractor Supply , which is America’s largest seller of live poultry, could top the all-time record set in 2020. During the pandemic, more people had time at home, and Tractor Supply reportedly sold 11 million birds. This year, Tractor Supply’s foot traffic jumped 60%.

Tractor Supply also acquired Orscheln Farm and Home this year. The announcement came last fall, but the transition took place this year, adding more than 80 stores under the Tractor Supply brand. Last year, Tractor Supply’s CEO said the acquisition means Tractor Supply would now have more than 2,100 stores and 50,000 employees. The company also projected an excess of $14 billion in annual revenue.

USDA Accelerates Bird Flu Vaccine Trials After Third Reported Human Case Led to a Death

Mon, 17 Apr 2023 21:48:58 GMT

A third human tested positive for avian influenza, or bird flu, in China and later died last month, according to a CDC report . This is the first reported death from the virus. The other two infected people were also in China and tested positive in 2022.

So, what is USDA’s Animal and Plant Health Inspection Service (APHIS) doing to address the virus?

The Bird Flu Game Plan

USDA hosted a stakeholder roundtable discussion on Friday where department officials said they are testing four bird flu vaccines as part of its “no stone unturned” fight against the virus.

The department will be testing one vaccine from Zoetis, one from Merck Animal Health and two from USDA’s Ag Research Service.

Related story: Will Bird Flu Become a Recurring Issue Each Year?

Zoetis claims it delivered its vaccine to USDA’s stockpile in 2016, after a bird flu outbreak in 2015; however, the company says USDA never tapped into the stockpile.

Other Tools in the Bird Flu Toolbox

Beyond vaccine trials, USDA previously established bird flu controls that include:

• Commercial bird tracking
• Disease surveillance
• Documentation of domestic and international trade
• Indemnity payments
• Education and guidance on cleaning, disinfection and disposal

Related story: What’s Really Driving Egg Prices 138% Higher in a Year?

According to Kevin Shea, USDA’s acting deputy secretary, these tools have enabled producers to “successfully” mitigate the bird flu outbreak in the U.S.

Tyson Foods Plant Closure Raises Antitrust Concerns Among U.S. Farmers and Experts

Fri, 24 Mar 2023 15:10:08 GMT

Tyson Foods Inc gave its chicken suppliers two months’ notice of its plan to shut a Virginia processing plant in May, raising concerns among farmers and legal experts about the company’s compliance with antitrust regulations requiring it to give 90 days’ notice before ending a contract.

The planned closure of the plant has left dozens of Virginia chicken growers scrambling to find new buyers in a region with few other options. It could also expose Tyson to fines under the century-old Packers and Stockyards Act (PSA), the U.S. antitrust law requiring the minimum advance warning, according to Peter Carstensen, a professor of law emeritus at the University of Wisconsin-Madison Law School who previously served in the antitrust division at the U.S. Department of Justice.

Tyson told Reuters the company is not canceling any farmers’ contracts and instead has committed to paying the growers for the full-term of their remaining contracts, keeping in compliance with federal regulations.

Antitrust issues, particularly in meatpacking, have been a priority for the U.S. Department of Agriculture (USDA) under President Joe Biden, who in 2021 directed federal agencies to tackle consolidation. Four companies, including Tyson, control 55% to 85% of the beef, pork, and chicken markets.

Tyson alerted Virginia farmers by phone on March 13 and later by mail that it will shut its Glen Allen plant on May 12, according to three poultry farmers who supply the plant. The company said there are 55 farmers with 73 contracts who supply the plant with chickens raised for meat.

Tyson owns chickens it slaughters and pays the farmers to raise them. The company hatches baby birds and trucks them to farmers. The farmers then raise the birds for about six weeks, until they reach the size to be slaughtered and are trucked to the processing plant.

Tyson spokesperson Alicia Buffer confirmed farmers received notice last week of the May 12 closing, and said Tyson intends to stop supplying them with chicks after March 28.

She said that instead of canceling their contracts, Tyson is offering farmers a voluntary buyout package, or the option to retain them and be paid through their duration.

The three farmers interviewed by Reuters have between three and 10 years left on their contracts.

Farmers told Reuters they felt pressure to accept the buyout option because they were not sure how the contract could remain in force after the plant is shut and the chicks stop coming.

Roger Reynolds, a farmer in Crewe, Virginia, said retaining his July 2012 contract with Tyson is not a viable option, in part because it would prevent him from selling to another poultry company if one entered the region.

Another farmer with a contract to supply the plant, who asked not to be named, said they may eventually have to sell their third-generation farm as the buyout offer would not cover long-term expenses like property taxes.

Carstensen, of the University of Wisconsin-Madison Law School, said it was unclear if Tyson’s approach would absolve it of its requirement to provide farmers 90 days’ notice before ending a purchase contract, because closing the plant means it won’t be processing chickens there anymore.

PSA violations can carry a $29,270 fine, according to the USDA website, and Carstensen said fines could apply for each contract.

The USDA, which enforces the PSA, told Reuters it is “closely monitoring” Tyson’s planned plant closure.

‘WE’RE DONE’

Under normal circumstances, Tyson supplies farmers with chicks, while farmers assume the costs of land and chicken houses.

Documents reviewed by Reuters show the company’s proposed buyout package offers payment to farmers based on their average payment per flock in 2022.

They also show that farmers opting to retain existing contracts instead of accepting the buyout would have to meet Tyson’s contractual requirements for their facilities even after the company stops providing chicks.

Tyson said those growers would have to perform “routine and preventive maintenance” to meet contract requirements and called the options generous.

Farmers must choose between the options by the end of March, according to the document.

On Monday, about 20 Tyson farmers and local government officials gathered in a fire station in Burkeville, Virginia, and raised concerns about Tyson’s short timeline for closure of the plant, attendees said.

Taylor Lee, a farmer in DeWitt, Virginia, who attended the meeting, said he built two new chicken houses in 2017 and raised about 400,000 birds annually for Tyson, and is unclear what will happen to his investment.

“When we’re done growing chickens (for Tyson), we’re done, unless somebody else steps in,” Lee said.

The nearest chicken plants to Glen Allen are 100 to 150 miles away, outside the ideal radius of 60 miles, said Hobey Bauhan, Virginia Poultry Federation president. Longer distances hike transportation costs and health risks to chickens.

(Reporting by Leah Douglas in Washington and Tom Polansek in Chicago; editing by Richard Valdmanis and Nick Zieminski)