H5N1 Outbreak Disrupts Poultry Supply Chain Across 12 States

S. states, creating immediate and cascading disruptions to the nation's egg and poultry supply chains. This outbreak directly impacts cold-chain logistics, procurement strategies, and consumer pricing, with Dallas and surrounding regions facing particular pressure as production capacity declines and transportation costs rise.

The timing is critical—summer demand typically peaks for these commodities, amplifying the urgency and cost of managing reduced supply through existing distribution networks. For supply chain professionals, this outbreak represents a high-severity, multi-week disruption that requires rapid response across procurement, inventory, and logistics planning. Unlike routine seasonal variation, disease-driven capacity loss cannot be easily mitigated through expedited shipping or supplier substitution alone.

Organizations relying on poultry and eggs must assess supplier diversification, build safety stock ahead of further production curtailments, and prepare for sustained price escalation throughout the distribution chain. This event underscores the vulnerability of concentrated agricultural supply chains to biological risk and the critical importance of early warning systems, demand forecasting, and alternative sourcing strategies. The structural implications extend beyond immediate logistics—regulatory responses, biosecurity investments, and producer bankruptcies may reshape the poultry sector for months or years.