As U.S.-bred poultry suppliers are under pressure with the U.S. Department of Agriculture continuing to receive reports of avian flu outbreaks, RealMoney Pro contributor explains how to cut your exposure to stocks that could be negatively impacted. Avian influenza, also known as the bird flu, affects wild birds, including ducks and seagulls, as well as livestock raised for food supplies such as chickens, turkeys, ducks and geese. Secretary of Agriculture Tom Vilsack has estimated that roughly 10% of laying hens in the U.S. and 7-8% of the turkey population have been impacted by the bird flu outbreak that began at the end of December. Versace says the egg industry will be the hardest hit. Already, increases in the cost of eggs is prompting restaurants to turn to alternative egg sources and plant-based egg substitutes. This will weigh on companies like ConAgra (CAG), according to Versace, who recently exited his position in the stock.
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