Cal-Maine Foods says HPAI outlook to continue exert pressure on egg supply

The company states: "Cal-Maine Foods is closely monitoring the current outbreak of HPAI that was first detected in commercial flocks in the U.S. in February 2022. Outbreaks in commercial flocks in the U.S. have most recently occurred during each month from September to December 2022. The current HPAI epidemic has surpassed the prior 2014-2015 outbreak in terms of the number of affected hens in the U.S., and HPAI continues to circulate throughout the wild bird population in the U.S. and abroad. According to the U.S. Centers for Disease Control and Prevention, these detections do not present an immediate public health concern. There have been no positive tests for HPAI at any Cal-Maine Foods’ owned or contracted production facility as of December 28, 2022. The USDA division of Animal and Plant Health Inspection Service reported on December 27, 2022, that approximately 43.3 million commercial layer hens and 1.0 million pullets have been depopulated due to HPAI this year. The Company believes the HPAI outbreak will continue to exert downward pressure on the overall supply of eggs, and the duration of these effects will depend in part on the timing of replenishment of the U.S. layer hen flock. Prior to the outbreak of HPAI in February 2022, the layer hen flock five-year average from 2017 through 2021 was comprised of approximately 328 million hens. According to a LEAP Market Analytics report dated December 8, 2022, the layer hen inventory is not projected to exceed the 328 million mark again until December of 2023. Layer hen numbers reported by the USDA as of December 1, 2022, were 308 million, which represents a decrease of 5.8% compared with the layer hen inventory a year ago. However, the USDA also reported that the hatch from July 2022 through November 2022 increased 5.8% as compared with the prior-year period. Cal-Maine Foods believes it has been mindful and proactive in implementing and maintaining robust biosecurity programs across all its locations and facilities."