Food distributor Sysco Corp said on Friday that a record U.S. outbreak of avian flu would limit its supply of eggs and chickens that lay them for nine to 18 months, based on information provided to the company by its suppliers. Sysco is the biggest U.S. food distributor, whose clients include restaurants, hotels and hospitals. The company is discussing options with its customers, including creating alternative menu items during the period, a Sysco spokesman said in an email.
It is too soon to tell whether the supply squeeze will have a material impact on financial results, spokesman Charley Wilson said. Eggs represent a small portion of the company’s dairy products segment, which accounted for 11 percent of revenue in 2014. The U.S. poultry and egg industry is grappling with the country’s biggest outbreak on record of avian influenza, which has proven highly infectious and deadly for poultry. Governors in Nebraska, Wisconsin, Minnesota and Iowa have declared a state of emergency, and the outbreak has shown few signs of waning. FULL REPORT