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Wednesday, July 1, 2015
Michael Foods sues Center Fresh Group’s Hawkeye Pride
Michael Foods has filed a lawsuit against Hawkeye Pride Egg Farms, a division of Center Fresh Group, alleging it breached its egg supply contract after avian influenza hit Hawkeye Pride farms and prevented it from meeting its egg supply obligations.
The suit was filed in a federal court in Des Moines, Iowa, according to a TwinCities.com report.
Center Fresh Group had earlier confirmed that two cases of avian influenza were found at two of its Iowa farms, affecting one flock of 3.8 million birds and another flock of 1.7 million birds.
Michael Foods, a subsidiary of Post Holdings, has also had troubles with avian influenza affecting its layer farms in Dixon County, Nebraska. The company revealed that about 25 percent of its egg volume commitments had been compromised as a result of layer flocks being infected with avian influenza.
Michael Foods has since filed documents with the Nebraska Department of Labor concerning layoffs at its egg production facilities in Wakefield, Nebraska, as a result of avian influenza’s presence and a subsequent decline in the workload there. A timeline for the layoffs has not been revealed.