Australia's largest chicken producer, Ingham's Group, has cautioned consumers that prices for poultry and eggs could increase due to escalating costs associated with the H5 bird flu crisis. Despite no confirmed cases of the current strain in commercial poultry operations, the company has already experienced a significant rise in expenses.
Edward Alexander, CEO of Ingham's Group, stated that factors including the Middle East crisis, inflation, and the bird flu outbreak have contributed to a $130 million increase in operational costs. He indicated that these increased expenses are likely to be passed on to consumers through higher retail prices. "Retail pricing moves more with changes to the cost base … so we will see that take effect," Alexander told investors.
Alexander described bird flu as "a real and significant risk for the poultry industry." In response, Ingham's has dispatched executives to Europe to gather information on biosecurity measures to protect against the disease. "We take this risk extremely seriously," he said, adding that the company is well-positioned to manage the threat and has protocols in place to prevent the strain from reaching its facilities.
Ingham's supplies approximately 40 percent of Australia's chicken meat. Alexander noted that demand for chicken products has not yet been impacted by the growing bird flu concerns. "We're not seeing any impact on demand at the moment," he said.
The warning comes as bird flu continues to spread across Australia, initially detected in migratory birds and now affecting a growing number of native species. The virus has been found in wildlife, including a common dolphin, a fox, a brown falcon, and an Australian raven. Concerns have been raised about the potential threat to native animals such as Tasmanian devils. South Australia has reported a significant number of new cases, with 46 new events documented recently.
The worsening outbreak has also led to the decision to temporarily withdraw researchers from Macquarie Island in the Southern Ocean. The Australian Antarctic Division stated this measure is intended to protect the psychological well-being of scientists managing the escalating bird flu situation on the island.