FY23 Financial Performance and Market Strategy slide image

FY23 Financial Performance and Market Strategy

EXTERNAL FEED MARKET OBSERVATIONS INGHAM'S Always Good PRICES TO REMAIN ELEVATED DUE TO STRONG GLOBAL GRAIN DEMAND & TRADE UNCERTAINTIES ■Delivered internal feed cost contains cereal grains, protein meals, vitamins and minerals Inghams feed cost includes transport and milling costs Grain imported by New Zealand operations is purchased on the international market Long term wheat & soymeal pricing (to 28 July 2024)1,2 $A per metric tonne 800 700 600 500 400 300 200 100 Wheat ($A) CME Soy ($A) FY02 Q3 FY03 Q1 FY03 03 FY04 Q1 FY04 03 FY05 Q1 FY0503 FY06 Q1 FY06 Q3 FY07 Q1 FY07 03 FY08 Q1 FY08 CB FY09 Q1 FY09 03 10 01 FY10 QB FY11 Q1 FY1103 ил 113 113 114 FY14 Q1 FY14 03 FM1501 FY15 03 FY16 Q1 FY16 03 FY17 Q1 FY17 03 FY18 Q1 FY23 P&L FY19 03 FY20 Q1 2003 121 FY21 03 FY22 Q1 FY2203 FY23 Q1 FY23 03 FY24 Q1 Wheat Despite some recent easing in global supply tightness, strong global demand combined with ongoing uncertainty surrounding Ukrainian grain exports out of the Black Sea region, grain prices are expected to remain relatively elevated over the coming year Forecast onset of El Niño conditions from July this year may see a reduction in Australian winter crop production with yields forecast to be below y average. ABARES forecast world wheat production to fall slightly in 2023-24, driven by lower production in major exporting countries including Australia, Kazakhstan and the Russian Federation; this is expected to more than offset higher production in Argentina, the European Union and North America Soymeal Soybean production in South America is expected to materially increase during 2023-2024, in both Brazil and Argentina, with Argentina expected to recover from severe drought conditions Global demand for soybeans is expected to increase in 2023-24 reflecting rising demand in Argentina and import demand from China 1. Quarterly spot price data is based on the average of daily observations during the period and is shown for illustrative purposes only. Inghams actual consumption prices will differ due to the purchase of delivered grain/soymeal as well as level of forward cover of between 3-9 months. 2. Chicago Mercantile Exchange 17
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