The spread of avian influenza (bird flu) has resulted in the culling of over 120 million chickens in the U.S., with egg prices soaring to 1,800 won each, causing continued chaos. While the global poultry industry is suffering due to avian flu, some large egg producers are enjoying record revenue.
According to reports from the Washington Post (WP) on the 8th (local time), Cal-Maine Foods, the largest egg producer in the U.S. accounting for about 20% of the country's egg supply, announced that its quarterly net income reached $509 million (approximately 755.8 billion won) on that day. This is more than triple the same period last year, marking three consecutive years of soaring performance since the avian influenza outbreak in 2022.
According to WP, the price of a dozen eggs (12) from Cal-Maine increased from about $1.30 (approximately 1,900 won) before the avian influenza outbreak to as high as $4.06 (approximately 6,000 won). In contrast, feed costs have remained relatively stable. WP explained that "while millions of chickens were culled due to avian influenza, impacting production, it simultaneously skyrocketed egg prices, allowing some corporations to offset losses or generate significant profits."
Additionally, the U.S. Department of Agriculture (USDA) has provided tens of millions of dollars in subsidies to the poultry industry. Cal-Maine received this subsidy twice. After the culling of 1.5 million chickens in Kansas, it received $22 million (approximately 32.7 billion won), and after 1.6 million chickens were slaughtered at a farm in Powell, Texas, it received $21 million (approximately 31.2 billion won). Although 4% of the chickens in its farms were culled, government subsidies and the rise in egg prices led to a sharp increase in performance.
In addition, Hillandale, operating in Ohio and Pennsylvania, received $53 million (approximately 78.7 billion won), while Versova, which owns farms in Iowa and Ohio, received over $10.7 million (approximately 158.8 billion won). These corporations are all privately held, and it has not been disclosed how much the receipt of subsidies has contributed to the increase in net income.
Consumer groups have pointed out that it is wrong for corporations to pass costs onto consumers despite receiving ample government subsidies. A representative from the American Consumer Federation criticized in WP that "it is extremely unfair for large corporations to increase consumer burdens by selling expensive eggs despite receiving government relief."
Conversely, small to medium producers relying on a single farm face complete production suspension if infected with avian influenza, compared to large firms like Cal-Maine that own multiple farms. WP noted that "recovery could take as little as a few months and as long as up to a year," adding, "however, government subsidies are only given for dead chickens, so losses for production gaps are not covered."
In response, the USDA is expected to recently raise the compensation standards for losses. Last month, Agriculture Minister Brooke Rollins announced that the compensation for each infected chicken would be raised from $7 (approximately 10,000 won) to $17 (approximately 25,000 won).