Disasters can strike unexpectedly in the agriculture sector, and the poultry industry is no exception. Whether it’s due to HPAI, tornadoes, or fires, the impact on poultry farmers and their workers is immediate.
Trey Malone, Boehlje Endowed Chair for Managerial Economics in Agribusiness at Purdue University, discusses how consumers also feel the effects, such as supply chain disruptions that can temporarily raise egg prices. However, he notes that the agricultural economy is often resilient in the face of disasters, citing examples like the egg shortages during the COVID-19 pandemic.
Malone explains that disruptions to shell egg supplies may not affect liquid eggs in the same way, allowing consumers to substitute products. Similarly, Mitchell points out that consumers may opt for other meats, such as ham or prime rib, if turkey prices spike.
The poultry industry, especially the broiler sector, often feels the immediate effects of disasters, whereas industries like beef and pork may experience delayed impacts. For example, the turkey industry was unaffected by HPAI incidents leading up to Thanksgiving due to advance planning.
To mitigate the effects of disasters, poultry producers strategically distribute production across different regions of the U.S. This geographic spread helps prevent widespread price increases when disasters are localized. Malone emphasizes the importance of geographic distribution in ensuring stable egg prices, even when certain production areas are impacted.
Biosecurity measures have also been strengthened in response to HPAI, providing an additional layer of protection for poultry farms. Both Mitchell and Malone agree that the poultry industry will continue to develop strategies to manage disaster impacts, ensuring the system remains resilient.
As Malone concludes, maintaining supply chain resilience is critical to ensuring consumers can consistently find eggs and poultry products, no matter the disaster.