Worsening bird flu sees egg prices skyrocket

Egg prices continue to rise with the avian flu outbreak in Jalisco having now claimed the lives of over 10 million livestock.

Nine weeks after the outbreak began, the H7N3 virus is now responsible for the death of 43.6 percent of chickens in the municipalities of Tepatitlan and Acatic in Los Altos de Jalisco. Of the 25 million poultry in the region, 10.9 million have died, Mexico’s animal health agency (SENASICA) reported this week.

Some 88 million vaccines have already been distributed in the first phase of vaccination, with another 90 million doses set to be given out in the second phase this week. SENASICA is also restocking the affected farms with five million chicks.

Mexico is the world’s number one consumer of eggs per capita, while Jalisco topped national egg production last year. Producing 1.25 million tons of eggs, the state acounted for just over half of the national total of 2.45 million tons.

As a result of the current crisis, exports have dropped to less than half of what they were nine weeks ago, revealed Cesar de Anda Molina, vice president of the International Egg Commission.

“We’re trying to avoid a shortage by giving priority to areas that must have produce,” De Anda said of the cancellation of exports to destinations such as Hong Kong, Africa, Dubai and Kuwait, in order to prioritize egg consumption in Mexico.

In order to bring in more produce, the Mexican government is dropping the 45-percent tariff on egg imports, Economic Secretary Bruno Ferrari announced on Wednesday.

“So far the first 400 tons of eggs have entered Mexico from the United States in order to lower prices,” he said.

Ferrari also warned that those found guilty of raising prices unnecessarily could face jail time. After examining 9,548 egg-selling establishments the Federal Consumer Protection Agency (Profeco) found 1,299 irregularities, he said.

The price of eggs in Guadalajara has now soared to 34 pesos per kilo, double the price of 16 to 18 pesos reported at the beginning of 2011 by El Universal. The price of chicken has also risen to between 36 and 39 pesos per kilo, according to a survey by Milenio newspaper.

On average, in the first two weeks of July, egg prices were up 21.5 percent on the same period last year. In the following fortnight, prices remained 17 percent higher than in 2011.

“Right now there are no eggs, we even took a poll in grocery stores and about 40 percent of grocery stores have no product to sell,” said Victor Guillermo Hernandez Perez, president of the National Association of Grocery Stores.