A further eruption of avian influenza at a farm supplying Post Holdings with eggs has prompted the company to declare the outbreak sweeping the US a "force majeure", with bird flu now hitting 25% of its Michael Foods egg supply.

The effect of AI on the Michael Foods egg business "renders Michael Foods unable to fully perform under its existing supply agreements with customers", Post said yesterday (15 May).

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The company continued: "Michael Foods is taking various measures including discontinuation of certain product lines and appropriate pricing actions to offset reduced egg supply and increased operating costs."

Post management said that the company is still calculating the financial impact of the bird flu outbreak, which had been estimated at around US$20m when 15% of the group's egg supply was affected.

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