PoultryWorld: Avian influenza outbreaks rock Australian egg farms

Recent outbreaks of avian influenza in Australia have sent shockwaves through the country’s egg farming industry, raising concerns over both the economic impact and food supply stability. The outbreaks have necessitated the culling of millions of chickens, leaving farmers grappling with financial losses.

Experts have issued warnings that the recent outbreaks of avian influenza in Australia may persist, potentially causing severe financial consequences for egg farmers. The outbreaks have left egg farmers dismayed, particularly those still grappling with the financial setbacks from the last high pathogenicity avian influenza (HPAI) outbreak in 2021.

Australia-wide the outbreaks have led to noticeable gaps on supermarket shelves and prompted temporary purchase limits. Thus far, the majority of outbreaks have been confined to egg farms, with only 1 reported instance affecting a meat farm. There have been no shortages or purchasing restrictions on chicken meat.

Australia’s rigorous response to HPAI mandates the euthanasia of all birds on affected farms. Recent outbreaks in Victoria, New South Wales and the Australian Capital Territory have resulted in the culling of approximately 2 million chickens.

Compensation available

The hardest-hit area appears to be south-western Victoria, where more than a million chickens have been euthanised since May in adherence to national biosecurity protocols. Infected birds have been identified on 7 farms near Meredith and one near Terang. Additionally, avian influenza has been detected at 2 commercial poultry farms near Sydney and 1 in the Australian Capital Territory.

According to Agriculture Victoria, compensation is available for livestock losses incurred by farmers due to emergency diseases. The state government compensates farmers for birds culled during these times, but thereafter, farmers are left to rebuild their businesses without financial aid. Compensation for livestock losses is determined based on farmgate value, considering factors such as age, sex, breed, body condition, live weight and production records.

Premium egg-laying chickens, valued at approximately AU$25 (US$17) per bird according to industry estimates, are most productive from 4 months to 2 years of age. As hens age and produce lower-quality eggs, their monetary value diminishes, affecting the compensation paid to farmers.

Vaccines

Businesses facing months or years without income while rebuilding their flocks to re-enter the egg supply chain receive no additional financial support from the state government. Disaster recovery funding mechanisms do not extend to biosecurity emergencies. Australia does maintain a nationally-agreed response plan and cost-sharing arrangements to manage animal diseases, including avian influenza. The cost of cleaning up after bird flu outbreaks is covered by levies imposed on the poultry industry.

Despite the availability of vaccines for emergency animal diseases, inoculating Australia’s chicken population is unlikely to effectively manage or prevent avian influenza due to the virus’s rapid mutation rate. Australia views existing avian influenza vaccines as ineffective and believes achieving a vaccinated population would be time-intensive. The approach remains focused on disease detection and elimination.

Supply chain disruptions

The losses, amounting to almost 10% of the national laying hen flock, which exceeds 20 million, have caused significant disruption, according to Australian Eggs, a major marketer of eggs. Despite this, Australian Eggs states that most suppliers can still meet their commitments. The outbreaks have affected supply, but nationwide egg production seems still to be resilient. But major supermarkets have felt the impact, with supermarket chains Woolworths and Coles implementing temporary purchase limits due to supply chain disruptions.

The HPAI outbreaks have predominantly been among free-range, with one farm housing a mix of free-range and caged hens. Notably, all major retailers are upholding their commitment to free-range eggs. McDonald’s exclusively uses free-range eggs, while Woolworths and Coles have phased out cage eggs from their house brands, aiming for a complete phase out by 2025. IGA, a supermarket chain of independents, reassured consumers not to panic amid the egg supply concerns. A spokesperson mentioned that store managers have the discretion to limit purchases to 2 cartons per customer if they anticipate stocking issues, indicating that: “Decisions are made on a store-by-store basis and we are actively monitoring the situation”.

Not a food safety concern

McDonald’s has responded to the supply challenges by temporarily adjusting its breakfast service nationwide, now concluding at 10.30am instead of noon. “Like many retailers, we are closely managing our egg supply,” said a spokesperson for McDonald’s. “We remain committed to working closely with our network of Australian farmers, producers and suppliers as we navigate this industry challenge together.”

Food Standards Australia New Zealand (FSANZ) earlier reassured consumers in Australia that avian influenza is not a food safety concern and that it is safe to eat properly handled and cooked chicken meat, eggs and egg products. “There is no evidence to show the virus can be transmitted to people through properly prepared food,” states FSANZ.

CEO Dr Sandra Cuthbert said that Australia’s biosecurity and food regulation systems ensure the safety of the food supply. “Farms affected by bird flu have been quarantined and the movement of animals and products restricted,” Cuthbert pointed out, adding, “Poultry flocks affected by bird flu are being destroyed as part of the emergency response to contain the disease, as it is highly contagious in poultry. This approach is to restrict the spread of the disease between birds, not to manage food safety.”