Amid the threat of worsening food supply in the US, Turkey products of a top US food processing company issued a warning that there will be a shortage following one of the worst bird flu outbreaks.
Because of the bird losses from the 2022 highly pathogenic avian influenza (HPAI) outbreak decreased sales and “large supply gaps” are expected for Jennie-O Turkey Store during the final half of the fiscal year.
HPAI was the dominating topic as Hormel Foods, the parent company of Jennie-O Turkey Store, announced its financial results for the second quarter of the fiscal year 2021 through both a press release and a conference call with analysts.
Hormel Foods Corporation CEO Jim Snee told investors in an earnings call:
“Our Jennie-O Turkey Store team is facing an uncertain period ahead. Similar to what we experienced in 2015, (avian influenza) is expected to have a meaningful impact on poultry supplies over the coming months.”
Since the USDA first detected bird flu in the US in mid-February, more than 38 million birds in 35 states have died. Out of that figure, 5 million turkeys in the US have been killed, with most deaths in Minnesota and South Dakota.
Zerohedge reported:
Bird flu has decreased the total number of egg-laying hens, sending egg prices at supermarkets sky-high. Prices of chicken meat have also risen. Now, according to the CEO of Hormel, the Jennie-O Turkey Store brand could face product shortages by mid-summer.
Fixing supply chains is out of the Federal Reserve’s purview and will have trouble taming food inflation as shortages of all sorts of food persist. This could only suggest supply shocks will continue to hit people’s living standards even as the Fed tightens monetary policy.
Source: Zerohedge