The ongoing bird flu outbreak has had far-reaching consequences on the food industry, disrupting supply chains, inflating costs, and shifting consumer behaviors. Since 2022, the outbreak has resulted in millions of affected birds and is now starting to take an additional toll on dairy cattle. These challenges underscore the vulnerability of the food sector to such crises, highlighting weaknesses in supply chain operations and transparency. In this piece, we dive into the bird flu impact on the food industry, exploring the immediate and predicted long-term effects and highlighting ways to safeguard your brand from future disruptions. 

What to Know About the Outbreak 

In February 2022, the first bird flu outbreak in U.S. commercial poultry was recorded in Dubois, Indiana. Since then, there have been over 1,600 outbreaks and 160 million birds affected by the pathogenic H5N1 virus. The outbreak has led to widespread efforts to minimize impact, which has disrupted poultry supply chains and affected available products.  

The virus has even extended to dairy cattle, with 995 herds affected as of March 2025. However, cattle are overall less at risk and can recover more easily than bird flocks can. The viral outbreak poses little threat to human health, but increased precautions are being taken for people regularly in contact with poultry stock. However, the total economic impacts of avian flu have been significant, and the food industry is already experiencing damaging effects as the outbreak continues. 

Immediate Effects of the Bird Flu on the Food Industry  

The poultry industry has been directly damaged by the H5N1 outbreak. As of November 2024, the U.S. government has spent over $1.4 Billion on alleviating the damage, with most spending directed towards compensating farmers for lost flocks and resulting business damages. The virus has primarily affected egg-laying hens, meat chickens (broilers), and turkeys; farmers have had to cull a large number of these birds to prevent further transmission.  

However, broiler chickens have not been as strongly impacted by the flu, preventing major damage to the poultry supply chain. The poultry industry consistently places a large volume of its meats in frozen storage, meaning there is an already-existing stock for brands to pull from, so prices have not yet seen a massive effect from supply chain disruptions. If the flu increasingly harms broiler flocks, we may see this change with time. 

Most of the economic damage can be seen with eggs and related products. Over the last year, egg prices have nearly doubled, with a dozen eggs reaching about $5.90 in February 2025 according to the U.S. Bureau of Labor Statistics. Mass campaigns to control the spread have significantly impaired egg stocks across the country as it takes time to rebuild flocks after culling. Many areas are seeing stock issues in the grocery store, with stores like Costco, Trader Joes, and Walmart having to set limits on the number of egg cartons that can be purchased at a time. Many restaurants, like Denny’s, are also adding surcharges for egg-based meals to compensate for shortages. 

These rising costs and the limited availability of eggs are causing changes in consumer behavior. Many shoppers are now prioritizing food safety and sourcing transparency, with a growing interest in understanding where exactly their products come from. These concerns have led to increased scrutiny of supply chains, prompting brands that use affected ingredients to provide clearer information about their practices. 

The bird flu has also created substantial financial strain for companies. Production halts have become more common, and businesses are facing rising costs associated with the implementation of contamination-conscious safety measures. Products that rely on eggs, such as baked goods and processed foods, are also experiencing production difficulties and have begun to implement price increases to combat it. These effects illustrate how deeply interconnected the outbreak’s effects are, influencing not only the poultry and egg industry but also downstream sectors that utilize them for their products. 

Long-Term Implications 

It’s essential to look to the future for what predicted long-term effects may be to fully understand how the bird flu will change the food industry. A major change we could see increase over time is the accelerated adoption of alternative proteins. Plant-based and cultivated protein products, which are not susceptible to animal-borne diseases, are growing in popularity with consumers. This shift may encourage brands to expand their product portfolios to include more resilient protein options. For example, Burcon launched a canola protein isolate last fall that can serve as a replacement for eggs in baked goods. 

The outbreak is also forcing a reevaluation of supply chain practices, with transparency, flexibility, and resiliency being the most valuable traits. Companies are looking for new ways to diversify their sourcing methods, including building local and regional connections to decrease reliance on global product networks. Simultaneously, consumer expectations for transparency and clear information are evolving. Meeting these expectations will most likely result in brands investing a greater amount into advanced traceability systems and enhanced consumer communication methods to build trust and minimize business disruptions even in a crisis like this outbreak. 

How Can You Prepare? 

To ensure your brand is safeguarded against future outbreaks, it’s critical to learn from the lessons of past crises and adopt proactive strategies to build product and supply chain resilience. Outbreaks like bird flu have consistently highlighted the importance of early detection, rapid response, flexible operations, diversified supply chains, and well-developed contingency plans. 

Building supply chain resilience is a key priority. Implementing technologies like traceability software can provide end-to-end visibility, enabling real-time tracking of ingredients and products. Diversifying suppliers and building relationships with a network of producers can minimize your brand’s reliance on a lone source, reducing the impact of more localized disruptions. At the same time, innovation in product offerings can help to minimize your reliance on potentially vulnerable resources. By investing in plant-based proteins, cultivated meats, and flexible product formulations, brands can recover more easily during shortages and keep up with consumer expectations of sustainability and variety. 

Real-time response enablement is equally important. Brands should establish and regularly revisit detailed response plans that outline operational adjustments, supply chain rerouting, biosecurity protocols, and transparent communication with internal and external stakeholders. By being transparent about supply chain practices and safety measures, such as through tools like informational QR codes on products, your brand can reassure consumers even through a crisis. Integrating these strategies can position your company to not only withstand future outbreaks but also lead in resilience and innovation for years to come. 

Looking Ahead 

The ongoing bird flu outbreak has demonstrated the vulnerabilities and ripple effects such crises can have on an increasingly complex and global supply chain. As the food industry attempts to adapt, it’s clear that proactive measures and clear plans of action are essential to weathering the current bird flu epidemic and any other future outbreaks. By learning from the challenges posed by this outbreak, companies can better position themselves in an increasingly unpredictable market. To learn more about transparent supply chain practices or about how we can help, reach out to our team today. 

Contributions from Sam Weitzel