Egg provides are prone to stay tight whilst one of many worst-ever chicken flu outbreaks exhibits indicators of slowing, in line with Cal-Maine Meals Inc., the most important U.S. producer.
Costs for giant eggs within the U.S. have surged to a document excessive of over $3 a dozen after an outbreak of avian flu starting in January resulted within the deaths of greater than 30 million industrial and wild birds.
Cal-Maine mentioned in an earnings assertion that its egg gross sales for the quarter that ended Could 28 have been up 6.3% by quantity, with gross sales of specialty eggs together with cage-free rising by 32% to a document whereas typical egg gross sales declined by 3.5%.
With Cal-Maine, which accounts for a few fifth of the U.S. egg market, having no constructive circumstances of chicken flu to date at its farms, the corporate obtained a lift with its fourth-quarter earnings of $2.25 per share, topping the consensus analyst estimate of $1.89.
Whereas there have been no chicken flu outbreaks in industrial flocks since early June, “outbreaks might recur, and provide is predicted to be decrease till the flocks are repopulated,” the corporate mentioned.
Hen flu “appears to be within the rear-view mirror for now with the change in temperatures,” Stephens Inc. analyst Ben Bienvenu mentioned in a be aware. “Now the trade grapples with substantial provide shortages, leading to document excessive costs for eggs.”
Cal-Maine shares rose as a lot as 3.3% Wednesday in New York.