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Inghams extends Woolies supply agreement

Inghams and Woolworths have extended an agreement that ensures the poultry grower remains the supermarket giant's biggest chicken supplier.

Poultry giant Inghams will continue to be Woolworths' main chicken meat supplier after the pair extended their national agreement.

Inghams says the agreement has been extended to mid-2021, which will take the companies' supply partnership to more than 60 years.

Chief executive Mick McMahon said the extension was part of Ingham's ongoing strategy of formalising long-term supply relationships with major customers.

"Long-term supply agreements with major customers now account for over 65 per cent of Australian poultry volumes with average remaining tenure exceeding three years," he said in a statement.

Inghams, which listed on the ASX in November, made a pro-forma profit of $51.3 million in the first half of 2016/17, up 13.8 per cent.

It produced 248,000 tonnes of birds in the six months to December 31, up 13 per cent from a year ago due to strong demand from its supermarket and restaurant customers.

Its shares gained two cents to $3.35, up from its $3.15 listing price.


1 min read

Published

Source: AAP



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