The price of chicken is about to SOAR in another huge blow to millions of Australians battling with the rising cost of living
- Ingham’s will raise the cost of chicken due to recently inflated operational costs
- Prices of Ingham’s chicken are estimated to jump between 2.5 and 4 per cent
- Ingham’s supplies to Woolworths, Coles, Aldi, KFC, McDonalds and Subway
- CEO Andrew Reeves blamed Covid, floods and the war in Ukraine for the rise
Groceries are about to get even pricier, with one of Australia’s biggest chicken producers forced to up the price of the budget-friendly meat option.
Ingham’s announced on Friday that it would be raising the price of its chicken products after shouldering the rising cost of fuel, feed and labour for several months.
Estimates of the price rise sit between 2.5 and 4 per cent.
Australia’s largest chicken producers, Ingham’s, said it will raise the price of its produce after shouldering inflated operational costs for several months
Ingham’s said it spent an additional $45million last year to keep up with inflated operational costs and is expected to take another $45million hit this financial year.
It said it could no longer hold off the price jump with customers needing to take some of the financial burdens incurred by the chicken producer as its cost rise.
‘Feed is but one of the costs that we have to pass through. We’ve had good success in passing those costs largely through, that’s going to plan,’ CEO Andrew Reeves told AFR.
The price jump is likely to affect most chicken products in Australia, including grocery meat, pub parmigiana and processed chicken meat sold by fast food outlets.
Estimates predict the price of chicken will rise between 2.5 and 4 per cent and will affect family dinners, fast food and pub meals
Figures released by Ingham’s show customers are buying more chicken than this time last year, but the company has been left with less than a third of actual profit in comparison due to operational problems caused by Covid, floods and the war in Ukraine.
Mr Reeves said the war has blocked a major global supply of soybean, wheat and meal and has driven feed prices to the highest level in 10 years.
The company revealed it has already started lifting the price of chicken in New Zealand, with Australia soon to follow.
Ingham’s supplies chicken to several major retailers including Woolworths, Coles, Aldi, KFC, McDonalds, Subway and Costco
Chicken is currently the cheapest meat option for Australians with budget options selling for as little as $10 a kilo.
Mr Reeves said the jump in price will not completely cover the new operational costs.
‘We’re looking to recover as much as we possibly can. There will be some lag,’ he said.
Ingham’s supplies chicken to Woolworths, Coles, Aldi, KFC, McDonalds, Subway and Costco.
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