Ingham's Group Highlights and Financial Update
Feed cost update
INGHAM'S
Heart of the Table
Feed
cost
update
Feed prices have continued to remain at close
to historically high levels, driven by continued
dry conditions in Australia during FY2019
Outlook for FY2020 feed prices has moderated
somewhat however limited market liquidity due
to the uncertainty regarding the outlook for
rains across southern states in the coming
months (which is required for a higher FY2020
crop)
if rains do not eventuate the crop outlook
will remain tight and prices will move
higher but liquidity will return
Wheat price (as observed by Ingham's)
$A per tonne
450
400
350
300
250
200
150
100
50
0
FY17 FY17 FY17 FY17 FY18 FY18 FY19 FY19 FY19 FY19
Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4
> Ingham's procures grains and other raw materials predominantly for own consumption
> Ingham's has the ability to shorten or extend cover based on a view of supply and demand,
domestic market pricing, pricing differentials between domestic and offshore markets, as well as site
specific capabilities
> We are well placed to minimise feed costs, with different execution strategies available depending
on market and weather conditions
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