Inghams: Avian Influenza a Chronic Concern for Poultry Producers

Avian influenza, or bird flu, has been detected in Australia at a two egg farms, one in western Sydney in New South Wales and one in the Meredith area of Victoria. None of Inghams’ farms has been affected directly, and Inghams has no commercial broiler farms located in either affected region. Consequently, save for increased biosecurity measures in New South Wales and Victoria—including restricting access to livestock and processing operations, Inghams is operating as usual, and its supply chain is unaffected. We maintain our AUD 3.70 fair value estimate. At current prices, shares in Inghams are roughly fairly valued.