U.S. egg major Cal-Maine Foods Inc (NASDAQ: CALM) has temporarily ceased production at a facility in Kansas following an outbreak of avian influenza at the site.
The largest producer and distributor of fresh shell eggs in the U.S., said approximately 684,000 laying hens, or around 1.6% of its total flock, have tested positive for "highly pathogenic avian influenza", or HPAI.
In a statement, Cal-Maine said, "production at the facility has temporarily ceased as the company follows the protocols prescribed by the U.S. Department of Agriculture (USDA). Cal-Maine Foods is working to secure production from other facilities to minimize disruption to its customers."
According to the USDA, these detections do not present an immediate public health concern nor threaten the food supply, Cal-Maine noted.
"Also, according to the USDA, HPAI cannot be transmitted through safely handled and properly cooked eggs or poultry. There is no known risk related to HPAI associated with eggs that are currently in the market, and no eggs have been recalled," it added.
The company said there have been no positive tests for HPAI at any other of its locations to date.
"Cal-Maine Foods believes it has implemented and continues to maintain robust biosecurity programs across all its locations. Additional strict protocols are in place designed to prevent exposure from the Kansas facility to other locations, including the company's nearby layer complex, which houses approximately one million hens," it said.
According to information from the USDA, Reuters reported that over 72.5 million chickens, turkeys, and various other birds have been lost due to the avian flu outbreak in February 2022.
The cases in commercial poultry populations within the United States have surged since October 2023, with specialists attributing the spread of the disease to wild birds. Data from the U.S. indicates that Kansas had not documented an outbreak in a commercial flock since February 2023.
Price Action: CALM shares are trading lower by 0.37% at $48.71 premarket on the last check Wednesday.