Post sees further spread of AI

Post sees further spread of AI

Post Holdings has warned that 35% of its egg supply has now been disrupted by the outbreak of avian influenza that is sweeping the mid-western US.

The company said yesterday (27 May) that a further chicken flock in Nebraska has tested positive for avian influenza. The test means over a third Post's volume commitments have been hit by the disease, which the group said represents a "force majeure".

Post said its Michael Foods egg business will be "unable to fully perform under its existing supply agreements with customers".

The company said the financial impact of avian influenza is still being calculated. Post added: "Michael Foods continues to take various effective measures to partially mitigate the financial impact, including discontinuation of certain product lines and appropriate pricing actions."

The US is grappling with the biggest bird flu outbreak on record, which has lead to the culling of around 40m birds. AI has been confirmed in 16 US states and Canada, prompting fears of egg shortages and increased prices.