The humble egg, a staple in Australian kitchens, has become a scarce commodity on the shelves of major supermarkets, Coles and Woolworths. Shoppers have been left scrambling as they face the stark reality of empty egg cartons and the prospect of a six-month delay before normality is restored. This shortage has not only inconvenienced consumers but has also shed light on the vulnerabilities within our food supply chain.
The current egg crisis was triggered by the detection of H7N8 avian influenza across Victoria, New South Wales, and the ACT. This outbreak has led to the culling of nearly two million birds, a devastating blow to poultry farmers and a significant hit to egg production. The impact has been particularly severe on major supermarket wholesalers, who source their eggs from large-scale producers—the very ones most affected by the avian flu.
David Leany, a supply chain management specialist from the Australian National University, explains the predicament: ‘Supermarkets buy eggs in very big volumes, and they buy them from very big producers, and it’s those very big producers who have been hit the hardest by avian influenza.’
In contrast, smaller grocery stores seem to have dodged the bullet, as they often source their eggs from a variety of smaller farmers, allowing them to maintain a steady supply despite the crisis.
The timing of the outbreak couldn’t be worse, with the United States and the United Kingdom also grappling with their avian influenza strains, leading to global concerns. Australia’s federal government has taken preemptive action by announcing an additional $95 million in funding to prepare for the expected arrival of H5N1, another strain of avian influenza.
The nature of egg production adds to the complexity of the situation. Unlike meat chickens, which reach slaughter age in less than five weeks, layer hens don’t start producing eggs until they are around 18 weeks old. With the first cases of H7N8 detected in May 2024, the six-month delay in egg supply is attributed to the time required to raise replacement hens to maturity and restock farms thus, supply issues have been most apparent in January and February
Leany offers a sobering outlook: ‘Will we have fixed the problems in a month? Not a chance. Will it still be around in three months? Probably. Is it going to be around in six months? Probably not.’
In response to the shortage, supermarkets have been working diligently to address the issue. Coles reassures customers that it is ‘working hard’ with suppliers to improve egg availability, while Woolworths reports that its egg supply has ‘continued to improve’ as it seeks to source as many eggs as possible. Purchase limits have been imposed to manage demand, reminiscent of the rationing seen during the Covid-19 pandemic.
Australia’s supermarket landscape, dominated by Coles and Woolworths, which together account for 67% of supermarket retail sales, is unique. This oligopoly, as described by the nation’s competition regulator, the ACCC, means that when these giants face supply issues, the effects are felt widely.
Leany warns that the supply chain model prioritising efficiency and cost-cutting is prone to such shortages. While essential goods like diesel fuel are protected by legislation, the supply of items like eggs is left to market forces. Although Leany doesn’t believe further regulation is necessary, given the diversity of retail sources, he is sceptical that supermarkets will shift their focus from efficiency to resilience.
For the time being, shoppers may need to seek alternative sources for their eggs, such as local markets or independent grocers like IGA.
Have you noticed the impact of the egg shortage on your shopping habits? How are you managing without your usual egg supply? Do you think the current situation will last six months? Share your experiences and opinions in the comments below!
Also read: The sunny side of nutrition: Eggs could boost heart health and longevity
