As the U.S. grapples with record-high egg prices and shortages due to avian flu, Canada’s egg market remains stable and well-supplied. The stark contrast between the two neighboring countries has caught the attention of the U.S. Department of Agriculture, which is now exploring alternative production methods.

Mike von Massow, a food economist at the University of Guelph in Ontario, highlights the difference: “We have not had any shortage of eggs. We can choose from 14 different types of eggs.”

The reasons for Canada’s resilience are multifaceted. Colder temperatures necessitate tighter barn sealing, reducing the risk of virus transmission from wild birds. Additionally, Canada has fewer free-range chickens, which are more susceptible to infection.

However, the most significant factor may be the size of Canadian egg farms, which are considerably smaller than their U.S. counterparts.

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“If individual farms represent a larger proportion of production, then when an individual farm is affected, you’re taking more of that supply, right?” von Massow explains. The average Canadian egg farm houses about 25,000 laying hens, while many U.S. farms exceed one million birds.

The growth of large-scale egg production in the U.S. is rooted in competitive pressures to produce affordable food. Jada Thompson, a poultry economist at the University of Arkansas, notes, “These companies aren’t making tons of money per egg. They’re selling a lot of eggs.”

While this industrialized model typically results in lower egg prices for U.S. consumers, the current avian flu outbreak has exposed its vulnerabilities. When a farm is infected, all chickens must be culled to prevent further spread. In January and February alone, over 28 million chickens were lost due to flu outbreaks on more than 40 commercial egg farms.

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Canada’s Supply Management System

Canada’s supply management system, which ensures profitability for small farmers, has helped maintain a more diverse and resilient egg production landscape. “There is less incentive to grow because I can make money at this size,” von Massow explains. “There’s still an incentive to be efficient. But there’s not a requirement to get as big.”

As the U.S. seeks solutions to its egg shortage, President Trump’s administration is considering temporarily increasing egg imports to meet demand and stabilize prices.

Read more at NPR