Read The Times Australia

Daily Bulletin

Coles has imposed limits on egg purchases – but is there actually a crisis?

  • Written by: Flavio Macau, Associate Dean - School of Business and Law, Edith Cowan University
Coles has imposed limits on egg purchases – but is there actually a crisis?

Australians are no strangers to a supply crunch. During the pandemic and its aftermath, there were shortages of all kinds of products, from AdBlue diesel exhaust fluid to frozen chips.

This week, many of us were perhaps worried to find ourselves in an eerily familiar situation when Coles limited egg purchases to two cartons per customer in all stores across the country except Western Australia.

The culprit? An outbreak of avian influenza or “bird flu” in Victoria, leading to culls impacting production at five poultry farms. Importantly, this outbreak was not caused by the aggressive H5N1 strain making headlines globally.

On top of that, the production of free-range eggs fluctuates seasonally anyway, and during winter months it can fall by about 20%. The timing of this latest outbreak likely raised concerns that not enough eggs would reach the shelves.

Currently, there is no particular reason for alarm in Australia. The purchase limits are quite modest and restricted to Coles at this stage. But it is important to understand what is happening, and how it differs from similar crises in the past and others currently occurring around the world.

Read more: With all this bird flu around, how safe are eggs, chicken or milk?

We’ve been here before

Australia has experienced a number of short-lived outbreaks of bird flu since records began in the 1970s. The Department of Agriculture, Fisheries and Forestry (DAFF) closely monitors the situation and oversees actions taken by states and territories to limit the spread.

Recent outbreaks occurred in both New South Wales (2012-13) and Victoria (2020-21). Hundreds of thousands of hens had to be culled to control the damage, costing millions each time – not to mention further costs incurred through lost production.

Cases of egg cartons seen empty on supermarket shelf.
Coles has limited egg purchases to two cartons per customer per transaction. Dean Lewins/AAP

But Australia’s outbreaks are a far cry from the sheer scale of the crisis that has afflicted the United States since 2022.

According to the US Department of Agriculture, almost 6 million birds were affected in the last month alone.

Falling levels of egg production in the US drove egg prices to record highs in 2022, and prices are now rising again despite the industry’s mitigation measures.

But the situation isn’t necessarily unsalvageable.

In 2021, the UK faced its largest-ever bird flu outbreak. Control measures were effective, however, and ultimately enabled the country to declare itself free of the disease by March this year.

Is Australian egg production in real danger?

Geography can help mitigate risk. Data from Australian Eggs, a member-owned not-for-profit company, shows that egg production in Australia is spread out across the states. While New South Wales leads with about 34% of the supply, Queensland and Victoria are not far behind.

Most supply chains are local with limited commercial interconnection.

But this silo-ing doesn’t eliminate all risk, especially as the industry trends away from using scattered, smaller farms to highly efficient supply chains that rely on industrial scale.

Choice of production method can create its own challenges. Most eggs currently sold in Australian supermarkets are free-range. Free-range production means hens can roam freely and interact, and practice a range of healthy natural behaviours.

But free-range production levels are more prone to fluctuate with climate conditions (typically falling in winter), and it’s harder to control biosecurity.

free-range egg-laying chickens walk in a field
Free-range production is good for animal welfare, but has greater fluctuations in output. Dewald Kirsten/Shutterstock

For example, failure to adequately drain waterlogged areas or puddles can create the conditions for contamination. These open areas are not entirely under farmers’ control. Free range means more exposure to natural risks, including diseases.

The current outbreak in Victoria will see hundreds of thousands of birds culled. But that doesn’t mean that farmers in other regions will rise to the challenge and increase their own bird numbers.

The fact it takes three weeks for eggs to hatch, plus 17 weeks for hens to begin laying, means any actions taken now wouldn’t affect egg supply for about five months, when summer is about to start. By then, sunnier and warmer days will likely see free-range egg production rise anyway.

What next?

Since the first detection of bird flu in May, a nationally agreed response plan has been put in place. This plan includes restricting the movement of poultry, poultry products, equipment and vehicles across designated restricted areas.

So far, the measures have been relatively effective. Coles’ decision to limit egg purchases is a precautionary move that may be more related to its own specific supply chain than a widespread drop in egg production. It also serves as a deterrent against panic buying, often triggered by empty shelves.

By springtime, as has happened before (and will again), the situation should return to normal. And Australians will have learned more about managing the fluctuations that have become the norm for eggs and so many other products.

Authors: Flavio Macau, Associate Dean - School of Business and Law, Edith Cowan University

Read more https://theconversation.com/coles-has-imposed-limits-on-egg-purchases-but-is-there-actually-a-crisis-232148

Business News

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

What Healthcare Teams Look for When Choosing Specialist Surgical Supplies

In clinical environments, small details rarely stay small. A delayed instrument, a poorly matched device or inconsistent supply quality can affect theatre flow, staff confidence and patient outcomes. ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...