Avian Flu: An Emerging Public Health Crisis – Part 2: The Business and Consumer Impact
While officials continue to grapple with managing the ongoing avian flu crisis, H5N1 continues to be a disruptor to public health as well as supply chains, brand trust, and long-term business resilience. Companies must pair operational agility with disciplined, transparent communication in an era of rapid information (and misinformation) flow and rising stakeholder expectations. Consumer confidence is a critical indicator for how well a business weathers disruption, and organizations that act proactively, thoughtfully, and with transparency are best positioned to emerge stronger and more resilient.
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Business Impacts and Considerations
Businesses within and outside of agriculture continue to feel the many impacts of avian flu. While product availability and pricing now show some recovery, the long period of scarcity and volatile pricing for eggs has demonstrated how crisis situations can create significant business impact and substantial disruptions to supply chains.1 This volatility continues to directly impact operational costs for the food industry and related businesses, and to date, the avian flu has cost the country over $1.4 billion.2 Businesses should weigh multiple considerations as the crisis continues to unfold.
Consider impacts to business commitments. Businesses must consider how the shortages may impact Environmental, Social, and Governance (ESG) commitments, such as sustainable sourcing, waste reduction, or produce accessibility. While egg prices and availability have begun to stabilize, the major vacillations in infection since the beginning of 2024 and the upcoming peak bird migration season in May and June suggest a continued likelihood of ongoing price and supply volatility, creating further repercussions for business.3 Additionally, as the domestic supply chain remains in flux, the government has looked into importing eggs from other countries.4 With the continued discussion around tariffs in this country, it remains unclear if this is a viable option or the downstream financial impacts this can have on consumers and businesses.5
Collaborate effectively with regulatory bodies. As companies reevaluate supply-chain resiliency, they must rethink how they collaborate with government and regulatory bodies. Industry leaders should actively engage with federal and state agencies to co-create practical, informed solutions that balance public health priorities with business continuity. This includes advocating for science-based policies, securing supply chain support, and contributing to proactive policy development. Businesses that engage early and consistently in these conversations remain better positioned to influence the market’s rules and ensure their needs are represented.
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Evaluate crisis preparedness strategies. Companies should review or swiftly create a comprehensive crisis preparedness playbook. With a plan in place, organizations can respond proactively and strategically to a situation and react with measured confidence rather than finding themselves on their back foot. A strong preparedness plan demonstrates alignment across the organization and allows a company to control and influence the public narrative from the start, minimizing long-term damage and enhancing stakeholder trust.
Consider Consumer Confidence Levels. Consumer confidence remains a looming consideration for companies, and addressing confidence and public trust can be a meaningful lever in the success or failure of crisis management. Proactive, thoughtful, transparent communication transforms disruption into an opportunity to build trust and reinforce leadership directly with consumers. Acknowledging challenges and addressing misinformation goes a long way toward maintaining or rebuilding consumer trust, while absent, inconsistent, or defensive messaging often fast-tracks consumer doubt, scrutiny, and further business disruption.
Consumer Impacts and Considerations
As businesses manage increasing costs and supply constraints, similar, but differently experienced, burdens shift to consumers.
Cost burdens shift to consumers. Consumers experience sticker shock at the grocery store when buying eggs and feel the trickle-down effect from restaurant prices as they also pay higher prices when patronizing businesses.6,7 Other industries, such as dairy, may also become areas where consumers feel the implications of avian flu.8 But while price may be the most apparent impact on consumers, there are other significant considerations.
Consumer fears impact industry. Consumer fears play a major role in the industry, as purchasing behavior shifts in response to perceptions of safety. Many consumers continue to express concerns for the health of their families and pets amid headlines about the spread of avian flu. Pet-related infections—especially those related to fatalities linked to feeding raw milk, eggs, or meat to pets—have raised alarm.9
Misinformation and distrust exacerbate crisis. Meanwhile, misinformation fueled public anxiety, with false narratives circulating around virus transmission, poultry and egg safety, human vaccine availability, and fears of a future human pandemic.10
What Should Business Leaders Do?
Organizations have varied and powerful opportunities to address consumer fears, build confidence, and attract consumers back to their brands. And this isn’t just about consumers – building B-to-B trust is just as important. Clear, proactive, and creative communication will be a key factor in shaping consumer perceptions and ultimately determining business outcomes.
Key Recommendations
Be Proactive: Lead with Strategic Action and Communication
Businesses should anticipate volatility rather than react to it. They should actively assess supply chain vulnerabilities, explore alternative sourcing strategies, and prepare clear, consumer-friendly messaging. Early, transparent communication can help manage expectations, curb misinformation, and position their brand as a trusted voice amid uncertainty.
Be Creative: Innovate Solutions and Communicate Them Effectively
Creativity is essential in both operations and outreach. To offset shortages, businesses should consider alternate pricing strategies or local sourcing partnerships. On the communications front, they can use storytelling, social media, and influencer partnerships to educate consumers and reinforce brand trust with empathy and clarity.
Be Engaged: Collaborate with Regulators and Industry Peers
Businesses can work with regulatory agencies, industry groups, and government stakeholders to shape practical, business-savvy policies. Collective advocacy can drive industry-specific relief measures, while shared data and insight can help align risk response and shape public understanding of the crisis.
Be Prepared: Build and Activate Crisis Playbooks
If not already done, companies should develop a robust crisis preparedness plan – including scenario planning, decision trees, and strategic communication templates for internal and external stakeholders. Businesses that respond with clarity and coordination earn trust while avoiding the reputational fallout from disjointed or reactive messaging.
Be Consumer-Centric: Anchor All Actions in Trust and Transparency
Consumer confidence directly influences business health. Companies should address misinformation head-on, explain actions to ensure product safety and availability, and empathize with consumer concerns. In times of crisis, consistent and honest communication can turn wary customers into long-term brand advocates.
Conclusion
The ongoing H5N1 avian flu outbreak is far more than a health issue – it’s a multifaceted disruptor to business continuity, supply chains, consumer behavior, and brand trust. While public health officials work to contain the virus, companies across sectors must contend with rising operational costs, unstable supply chains, and widespread misinformation that threatens consumer confidence.
With over $1.4 billion in economic losses already, the cost of inaction is high. Organizations must respond with speed, creativity, and discipline to safeguard business performance and reputation, pairing resilient operations with transparent, consumer-first communication. Companies that lead proactively and strategically today will be better positioned to weather future volatility and emerge stronger in the eyes of customers, regulators, and the broader public.
About the Series: In “Avian Flu: An Emerging Public Health Crisis”, FTI Consulting experts examine the avian flu outbreaks – a new form of highly pathogenic avian influenza (HPAI) – that spread throughout the United States—. explores lessons from the past, weighing public health responses from the 2009 swine flu pandemic against the developing avian flu crisis. See all articles in the series here.
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References
[1] Danielle Kaye and Julie Creswell, “Egg Prices Are Soaring. Bird Flu May Not Be the Only Culprit,” The New York Times, February 25, 2025, https://www.nytimes.com/2025/02/25/business/egg-prices-bird-flu-producers.html
[2] John Drake, “Bird Flu Outbreak Costs U.S. Poultry Industry $1.4 Billion” Forbes, January 40, 2025, https://www.forbes.com/sites/johndrake/2025/01/30/highly-pathogenic-avian-influenza-a-persistent-threat-to-us-poultry/
[3] Suzy Khimm, “Bird flu could be heading north this spring with fewer federal health officials working to stop it,” NBC News, April 4, 2025, https://www.nbcnews.com/news/us-news/bird-flu-heading-north-spring-fewer-federal-health-officials-working-s-rcna199607
[4] Tom Polansek and Leah Douglas, “US egg imports meant to drive prices down could be hit by tariffs,” Reuters, April 4, 2025, https://www.reuters.com/world/us/us-egg-imports-meant-drive-prices-down-could-be-hit-by-tariffs-2025-04-03/#:~:text=April%203%20(Reuters)%20%2D%20U.S.,to%20decline%20from%20record%20highs.
[5] Ibid.
[6] Bernt Nelson, “Egg Prices Continue Setting Records,” American Farm Bureau, March 11, 2025, https://www.fb.org/market-intel/egg-prices-continue-setting-records#:~:text=According%20to%20USDA’s%20Economic%20Research,record%2Dhigh%20%244.95%20per%20dozen
[7] Gabe Hauari, “Is your favorite restaurant charging you extra for eggs? What to know about egg surcharges,” USA Today, March 18, 2025, https://www.usatoday.com/story/money/food/2025/03/18/egg-shortage-restaurant-surcharges/82492770007/
[8] John McCracken, “Egg prices soared after bird flu, but federal price controls kept milk prices steady — at farmers’ expense,” Investigate Midwest, February 19, 2025, https://investigatemidwest.org/2025/02/19/egg-prices-soared-after-bird-flu-but-federal-price-controls-kept-milk-prices-steady-at-farmers-expense/
[9] “CONSUMER ALERT: Potential Avian Influenza Risk in Savage Pet Raw Cat Food,” NY State Department of Agriculture and Markets, March 28, 2025, https://agriculture.ny.gov/news/consumer-alert-potential-avian-influenza-risk-savage-pet-raw-cat-food
[10] Amanda McClelland, “H5N1 Demands Coordination, Not Confusion,” Think Global health, February 24, 2025, https://www.thinkglobalhealth.org/article/h5n1-demands-coordination-not-confusion
