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Litigation Over 2022 HPAI Outbreaks

10/29/2024

Interruption in supply of eggs and egg products as result of HPAI depopulation is the subject of a series of lawsuits.  Grand Prairie Foods of South Dakota is suing Echo Lake Foods Wisconsin for breach of contract and unjust enrichment because of imposition of higher prices and an interruption in the supply of breakfast sandwiches.  This case will be before the U.S. District Court for South Dakota. 

 

A second case in the U.S. District Court for Southern Iowa involves Oskaloosa Food Products attempting to resist a subpoena for company records establishing costs of production.  Echo Lake, the Defendant in the South Dakota case, claimed that avian influenza reduced supplies of eggs to their plant resulting in an initial increase in price and eventual cancellation of orders.

 

It is a consistent observation that catastrophic diseases including avian influenza tend to bring out the worst in decision makers responsible for trading and pricing.