A supermarket boss has warned that Australians will likely have to pay more for eggs in the coming weeks due to supply shortages caused by bird flu.
Two of Australia’s largest supermarket chains, Woolworths and Coles, have limited the number of egg cartons customers can purchase across most of Australia’s east coast as the industry continues to be ravaged by a deadly bird flu virus.
Since Thursday, Woolworths has imposed a limit of two packs per person for customers in NSW, ACT and Victoria.
Since the beginning of June, Coles has limited customer returns to two boxes each in all stores except in Western Australia.
Ritchie’s IGA has already seen a 10 to 20 per cent increase in demand, chief executive Fred Harrison said, and the supermarket will introduce shopping restrictions in Victoria from Wednesday.
“Our egg supplier in Victoria met with us and said we are now starting to see shortages,” he told NewsWire.
“Demand is increasing significantly. From today we are changing to a limit of two egg cartons in Victoria.
“We haven’t done that in NSW or Queensland at this stage… but when I look at what’s happened in Victoria, it could be another day or two before we change our position. Restrictions in all our businesses.”
He warned that prices would “definitely” rise due to the shortages.
“There will definitely be price increases,” he said.
“Our team has informed me that price increases will be communicated to us this week and will be implemented within about a week.
“If there is a price increase, we have to pass it on.
“We will not make any profits from this, the margin will remain the same as ours.”
“But yes, standby, there will still be price increases.
“Just like with fruit and vegetables, the law of supply and demand applies. When supply becomes scarce, prices rise.”
He said the shortages and price spikes could last up to three months.
“This seems to be going to drag on for a while,” he said.
“This has been happening for about six or seven weeks now. We have held up reasonably well, but the situation has changed. I think that just goes to show that nothing is foolproof.
“It will take some time for inventory to be replenished… I think it will take at least two or three months for inventory replenishment to return to normal.”
A major outbreak of bird flu on poultry farms in several states has driven egg suppliers into ruin.
Victoria has imposed “movement controls” on affected farms, meaning permits are required for the movement of birds, poultry products, feed and equipment onto or off the properties.
Woolworths has limited the number of egg cartons customers can purchase.
In NSW, ACT and Victoria, the limit of two packs per person has been in effect since Thursday.
The supermarket giant said the empty shelves were the result of a suspected outbreak of bird flu in the adjacent packing hall of an egg farm.
“Like other retailers, we expect a short-term delay in stock levels at one of our egg suppliers in NSW, ACT and Victoria due to the temporary closure of one of its packing houses,” a Woolworths spokeswoman said.
“Their supply is expected to recover over the next week as they ramp up operations at their other locations.”
The supermarket giant said the limit was a “precautionary measure” to manage stock shortages in the coming months.
“Currently, the majority of customers only buy one carton of eggs at a time and there is no reason to change that,” the spokeswoman said.
McDonald’s is also feeling the effects of the massive egg shortage and announced on Tuesday that the company would no longer offer its breakfast menu until noon.
The fast-food giant announced that the menu would only be available until 10:30 a.m. in the hope of using fewer eggs.