Bird flu Australia: CCIWA say price of eggs could go through roof as H5 outbreak spreads

A worsening bird flu outbreak in WA could push the price of eggs to above $10 a carton, the state’s peak business lobby group has warned. The Chamber of Commerce and Industry WA this week crunched the numbers on the effect the H5 bird flu would have on the common household staple if the virus got into the multimillion-dollar chicken business. “We saw from outbreaks of a different strain of bird flu on the East Coast in 2024 that egg prices were impacted across the nation, so we can expect a similar price spike if the situation in WA escalates,” CCIWA chief executive Will Golsby said. “Our calculations show that the cost of carton of a dozen eggs could jump to between $9 and $11 if a widespread outbreak leads to a 30 per cent drop in egg supply, a price spike of 75 per cent. “This will further squeeze businesses already struggling with rising costs and will impact prices for consumers who are also doing it tough.” Three cases of the deadly avian influenza have been confirmed so far in WA from migratory seabirds — and one in South Australia. Authorities are waiting on test results for another suspected case in Roses Beach, near Esperance. A major concern is that the virus will get into WA’s multi-million-dollar poultry industry. Ingham’s has already announced while the disease had not been detected in its chickens, it was implementing a “complete lock down, preventing all non-essential access, across all of the company’s WA farms and processing operations”. WA Agriculture Minister Jackie Jarvis, who was on the ground in Esperance on Friday, said at this stage the virus was contained to migratory birds. But she warned that could change. “Whether it’s in two months or two years, I think we have to prepare ourselves that we will see the loss of some wildlife in selected areas,” Ms Jarvis said. “We have to prepare ourselves for if it got into one poultry farm, we might have to euthanise chickens in selected locations. “In other countries, they didn’t know they had it (bird flu) until it was in the commercial farming situation. “That’s why in other countries there were shortages of chickens and eggs because by the time they knew they had it, it was already in commercial farms. “In WA, we are on the front foot with this. We have had time to prepare. The poultry industry has been prepared.” The Agriculture Minister said decisions about poultry housing orders — government directives to keep all commercial and backyard birds indoors — remain with the chief veterinary officer. “Decisions are made on the basis of the latest data and scientific evidence, and in consultation with the poultry industry,” Ms Jarvis said. “The CVO met with industry on Friday and is continuing to consult in relation to housing orders.” CCIWA is calling on the WA Government to proactively develop an industry support package to help poultry farmers and the broader supply chain should an outbreak lead to a significant cull. Mr Golsby said the impact on chicken and egg farms could take months to unfold. “If bird flu does spread to agriculture and birds need to be culled, farmers may be eligible for compensation to replace them, but that doesn’t come close to covering the true cost of an outbreak on a farm,” he said. “An outbreak would likely require a farm to be closed for several months. “Farmers would then need to source new chickens, grow them to productive size and navigate re-entry to markets and supply chains. “It could be months of lost profit with farmers facing immediate cash-flow challenges. Mr Golsby said the impact on WA’s $1.5 billion nature tourism sector — which includes bird watching — should also be considered. An outbreak affecting native birds could directly impact tourism, as well as native wildlife sanctuaries, zoos and biosecurity services. “Wildlife sanctuaries do an incredible amount of work in our community with very little funding, and alongside poultry farmers, are on the front line in protecting WA from the virus,” he said. “We believe a broader industry assistance package should be on the table to ensure WA can maintain a viable poultry sector into the future.” For West Australian pasture-raised poultry farmers, confirmation of the H5 strain has heightened concerns, despite no commercial flock outbreaks yet. Local producer and co-owner of Allington Family Farm, Zoë Allington, said the biggest challenge for free-range farms will be the inability to move thousands of birds inside. “The fact that the H5 strain has been confirmed is a concern for anyone who is in any kind of commercial operation which involves birds,” she said. “The way that we raise them being outside on pasture — not in sheds — we don’t have the infrastructure to be able to lock everything inside.” Ms Allington said any widespread outbreak would likely have consequences for consumers and farmers alike. “There would be a knock-on effect for the availability of produce, and therefore that then drives the cost up,” she said. “If those birds all have to be euthanised, well obviously that has a knock-on effect to the supply chain.” Ms Allington said farmers were focused on managing the risks they could control. The Allington Family Farm has already increased biosecurity measures, including foot washes for staff moving between flocks and repositioning feed and water stations to reduce contact with wild birds. “We’re doing what we can, but for businesses like ourselves, where the animals are pasture raised, there’s only so much that we can actually do,” Ms Allington said. She agreed financial assistance would be necessary if commercial producers were impacted, but was unsure if compensation could truly cover all losses. “Even if there is government support, realistically, I can’t imagine that will be equivalent to the actual loss that person or people would face,” she said. “If it’s regarding financial support, I believe that’s 100 per cent necessary with the severity of what we’re dealing with.”