Why egg prices keep going up while inflation is going down

“The squeeze on eggs is so bad that some grocery stores are reporting shortages, and some are even limiting the number of cartons customers can purchase.

It’s a significant change for what’s long been a reliably cheap staple, and there’s one major culprit: the bird flu.”

“The last year has brought the worst bird flu outbreak in US history, and there are no signs it’s going to relent soon. Some 57.8 million birds in the US — mostly egg-laying hens — have died as a result of bird flu outbreaks surpassing the previous record of 50.5 million in 2015, and it’s not letting up.Just in the 10 days prior to Christmas, 1.5 million egg-laying hens died.

The virus is expected to continue to circulate among wild birds and the ones we raise for food for the duration of winter, meaning egg prices — along with prices for turkey — could remain high for the foreseeable future.”

“most victimsdon’t die from the virus itself. Rather, they’re culled, or proactively killed, in a brutal effort to prevent the virus from doing even more damage.”

“a major reason why bird flu is so destructive in the US is that factory farms — with so many chickens and turkeys in such close quarters — are the perfect playing field for the virus, which is why farmers are so quick to cull infected flocks. But that very fact raises a simple, but surprisingly controversial question: If avian flu is so deadly and so economically destructive, why on earth aren’t we vaccinating birds against the virus?”

“For countries in which poultry exports make up a big share of the industry’s revenue — such as the US and many European countries — vaccines have largely been a nonstarter, even though they have the potential to severely limit the death toll of mass culling. Why? Blame the “DIVA” problem.

DIVA is short for “differentiating infected from vaccinated animals” — the challenge of identifying whether a bird is actually infected with avian influenza, or just has avian influenza antibodies after vaccination. Countries fear that importing eggs or slaughtered meat from vaccinated birds in countries where the virus is circulating could inadvertently spread it within their own borders by introducing the virus to wild or domesticated animals through discarded raw meat. That means that big poultry exporters like the US — which sends 18 percent of its poultry abroad — don’t vaccinate, for fear they’ll miss out on a huge part of their revenue: international trade.” 

“without international coordination and predictable vaccine use, it doesn’t make economic sense for vaccine makers to invest in developing vaccines that protect against the bird flu. “We’re not going to make [massive investments] unless we’ve got major markets on board,” said du Marchie Sarvaas. “And the only way you’re going to get major markets on board is if you get some sort of political deal. And that comes to the trade point and the export point.””

“It’s also a geopolitical coordination challenge, a classic game theory problem where no major poultry-producing country wants to be the first to vaccinate. As a result, everyone sticks with the kill ’em all approach.”

https://www.vox.com/future-perfect/2022/11/22/23472207/bird-flu-vaccine-turkey-prices-chickens-hens-cull-depopulation

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