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Friday, June 12, 2015

Bird flu sends egg prices flying - Grand Forks Herald

FARGO--The owner of a bakery and cafe in Fargo noticed recently that the price of an egg doubled over the course of a month.

"I'm not going to get too worked up," said Nichole's Fine Pastry owner Nichole Hensen, "but I'm gonna keep my finger on it."

Hensen is one of many who are experiencing the consequence of this year's devastating bird flu outbreak. In the past six months, more than 47 million chickens and turkeys are dead or are set to be killed as a result of the flu, which mostly affected hens in Iowa.

In a report issued Wednesday, the U.S. Department of Agriculture lowered its expectations for egg production for 2015 and 2016, citing the effect of HPAI, the highly pathogenic avian influenza.

The USDA expects the country will produce 129 million dozen fewer eggs in the fourth quarter of this year compared to the same period last year.

The average price of a dozen eggs in 2014 was $1.42. In each quarter this year, the USDA expects that number to be higher.

"I don't think it's ever been as high as they are right now," a Casselton grocery owner said of egg prices.

Fred Wangler, the owner of Wangler Foods, said he is not concerned with the recent rise because egg prices are known to fluctuate.

"I really don't see where it's really outrageous," he said. "Eggs always go up and down."

The USDA expects the average price of a dozen eggs to be between $1.56 and $1.64 in the year's third quarter, up from $1.29 in the same period last year. The fourth quarter will see prices between $1.73 and $1.87, up from $1.63.

Nichole's Fine Pastry uses between 75 and 80 dozen eggs per week, Hensen said, but the rise in prices does not worry her.

"The cost of an egg is very minimal," she said. She recalled a conversation with a man in the baking business who once told her, "Nichole, don't you ever worry about the cost of one egg."

She said that recently, the cost of an egg sold by a big wholesaler has been close to the price quoted by a local organic farmer.

Hensen buys from both suppliers. She said that if the big wholesaler continues to raise its prices, "I'm going to be on the phone with the local guy" to buy more of the typically pricier eggs.

Minnesota officials have said they expect bird flu to remain a concern over the next three to five years. The flu outbreak has killed 9 million birds in Minnesota.

In North Dakota, authorities have lifted quarantines on Dickey and Lamoure counties after bird flu infections were confirmed earlier this year there. More than 100,000 birds were affected in the two counties in far southern North Dakota along the South Dakota border..

Reuters contributed to this report.


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