Ag Alert. January 18, 2023

Eggs Continued from Page 1

eggs will remain in short supply into the summer or beyond if another bout of avi- an influenza pops up this spring. But he noted wholesale egg prices have already come down from their peaks during the holidays, when demand is usually highest. He said he expects shop- pers will begin to see lower prices within the next two to three weeks. On the production side, Zaritsky said all his barns are filled and producing at ca- pacity. He said there’s a limit to the num- ber of birds he can house due to state law. Proposition 2, which passed in 2008, mandated more room for hens to extend their wings, stand up, lie down and turn around. Proposition 12, which voters ap- proved in 2018, phased out caged housing systems altogether. Proposition 12 also requires produc- ers from other states to not use cages if they want to sell their eggs in California. Since its passage, eight other states have enacted laws that ban cages for egg-lay- ing hens, including Nevada, Utah, Colorado, Michigan, Washington, Oregon, Massachusetts and Rhode Island. Because of the state law, San Diego County egg farmer Frank Hilliker said he’s producing about half the eggs he used to. He’s also at full capacity, though he’s us- ing only three of his five barns. The other two still need to be rebuilt to be compliant. He estimated it will cost about $700,000 to

$800,000 and said, “I just don’t have that right now.” In addition to producing fewer eggs, Hilliker said supply-chain problems and inflation have driven his production costs higher. His feed bill, for example, is now more than double. As a supplier, Hilliker said he hasn’t had problems sourcing eggs from other farms, but he’s paying a much higher price and is passing those increased costs to his customers. “It hurts disadvantaged communities the most because they are the largest eaters of eggs, and the reason why: It’s the most inexpensive source of protein,” he said. For Sonoma County egg farmer Tiffany Holbrook, who raises her chickens on pas- ture, production this time of year already is slower because hens “naturally take a break laying eggs during the winter.” Unlike farms with indoor flocks that are exposed to special lighting to help production, she has to carry more hens if she wants to keep her production up. But with the higher cost of feed, she said she downsized her flock last fall, phasing out her older birds in October rather than waiting until this spring. Holbrook sells most of her eggs direct- ly to consumers from her farm and to

restaurants. With the nationwide egg short- age and surge in prices, she said she has been fielding a high volume of calls and emails from people asking, “What’s going on?” In addition to the impacts of avian in- fluenza, Holbrook pointed out that some California producers continue to struggle to obtain feed due to the drought. “If you can’t feed your chickens enough, they don’t lay eggs,” she said. “They need those calories so they can survive, but their production’s going to drop.” The egg shortage has proved a boon for her business. Whereas she used to sell out multiple days a week, she’s now sell- ing out every day. But she acknowledged concerns about avian influenza remain high because her birds are outdoors on pasture, where they can come into contact with wild birds that might carry the virus. Though she practices “strict biosecurity year-round,” she said, “I’m always kind of paranoid,” noting many wild birds use her pasture and the farm’s seasonal pond. “It’s nerve-wracking,” Holbrook said. “We do what we can. We chase the birds off when we can, but for the most part, we just have to hope we get lucky.” (Ching Lee is an assistant editor of Ag Alert. She may be contacted at clee@cfbf.com.)

“It takes a lot of money to convert to cage free—millions and millions of dol- lars—and it cannot be done overnight,” he said. Debbie Murdock, who heads the Pacific Egg and Poultry Association, said even without avian influenza, the Golden State already doesn’t produce enough eggs to feed its population and relies on out-of- state eggs to fill the gap. No commercial egg-laying hens in California so far have been affected by avian influenza. Murdock noted all proteins have in- creased in price due to infrastructure issues. Now add to that the rising cost of fuel, packaging materials, chicken feed, labor and other inflationary pressures. “(It’s) the perfect storm,” she said. “To top it off, people eat a lot of eggs—a great protein.” Though avian influenza is a main reason for the recent egg shortage, Marty Zaritsky, a San Bernardino egg farmer and supplier, said some production issues can be traced to the start of the pandemic in 2020. When egg sales to restaurants and other food service dried up, hatcheries and farms re- duced production. Those numbers remain below pre-COVID levels, he said. Then came avian influenza and producers los- ing their flocks. “I work with producers all over the country, and a lot of them have not been repopulated,” he said, adding he thinks

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January 18, 2023 Ag Alert 15