Impact on avian influenza on Posts egg supply increasing

Impact on avian influenza on Post's egg supply increasing

Post Holdings, the owner of the Michael Foods egg business, has warned two further outbreaks of avian influenza mean 20% of its egg supply is affected by the disease.

In a statement, Post said chicken flocks at company owned and third-party farms in Nebraska and Iowa have tested positive for bird flu.

Previously, Post had warned that about 15% of its egg supply was impacted by avian influenza (AI). The company had estimated that the cost of bird flu would hit the bottom line by around US$20m this year. This negative impact was included in Post's full-year adjusted EBITDA guidance of US$585-610m.

These costs now look likely to be higher than initially estimated. "Post will update the estimated impact of AI as soon as practicable," the company said.