Yes. Mites suck the blood out of the birds and drain the life right out of the chickens. So yes, the egg production will slow to a crawl and stop all together eventually if mites get out of control. Mites can kill your birds over time.
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Helloand Welcome To BYC! You've gotten some good advice above for dealing with mites, you might also post pictures of the birds if you can't figure out what is going on. Have you seen any of them pecking on each other, plucking feathers?![]()
This looks like a combination of broodiness and eating her feathers. Stop with the mite dust. It will only irritate the skin. Birds broody or not, will pluck feathers from the breast. She may be overly plucking them and eating them. I would get her more protein in her diet with some cooked ground turkey or ground beef a few times a week. When she molts this fall, and stops laying, she will regrow these feathers.