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Bird flu has decimated US egg supply, lifting prices

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Walmart CFO calls spiking egg prices an anomaly

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Walmart ( WMT ) has said higher tariffs could lead to price hikes

By Siddharth Cavale

NEW YORK, Feb 20 (Reuters) - Higher egg prices, an issue

U.S. President Donald Trump spoke about often during his

election campaign last fall, boosted Walmart ( WMT ) grocery

revenue, the world's largest retailer said during its earnings

briefing on Thursday.

Walmart ( WMT ) said its grocery revenue rose by mid-single

digits in the quarter through January 31, and a Walmart ( WMT ) earnings

presentation showed that egg-price inflation was baked into that

increase. Egg prices have been rising as bird flu, or avian

influenza, has hammered egg production in chickens.

"There will always be some anomalies like what we're seeing

right now with eggs as a result of avian flu last fall,"

Walmart's ( WMT ) finance chief John David Rainey said on a call with

Wall Street analysts.

"Those things tend to work themselves out over time, so we

don't have a large inflation number planned into this year," he

said, referring to Walmart's ( WMT ) outlook for its current fiscal

year.

Walmart ( WMT ) caters to price-conscious shoppers courted by

Trump, who are up in arms over the rising price of eggs after

years of inflation fatigue.

Many Americans are now bracing for even higher prices on a

wide range of items if Trump implements tariffs on goods from

Canada and Mexico. In November, Walmart ( WMT ) said high tariffs "could

lead to increased costs for our customers."

The virus has wiped out more than 156 million chickens,

turkeys and other birds nationwide since an outbreak in poultry

began in 2022. Losses of laying hens have slashed egg supplies,

sending prices soaring and prompting retailers to restrict

purchases and restaurants to raise prices.

U.S. diner chain Waffle House added a 50-cent surcharge for

every egg in a customer's order with signs posted on their doors

earlier this month warning customers about the increase.

Social media posts showed that retailers including Costco

and Trader Joe's were restricting customers to

purchasing only a limited number of egg packages due to the

limited egg supply.

Costco and Trader Joe's were not immediately available to

comment.

A website for a Wegmans store based in New York State showed

that it currently allowed shoppers to buy up to 10 cartons of a

dozen eggs or 18-count eggs, with a maximum of 180 eggs.

"With supply fluctuating nationwide, prices are rising due

to avian bird influenza and strong demand," a notice on the

website reads.

"While prices will continue to shift, we are committed to

keeping our prices competitive."