The H5N1 bird flu outbreak has so far affected only wildlife in Australia, but the poultry industry is preparing for the possibility of the virus entering commercial flocks. Ingham's Group, which supplies 40 per cent of the nation's chicken meat to major supermarkets, fast-food chains and wholesalers, is already taking steps to mitigate the threat.
Mr Alexander said the company had sent executives to Europe to study how producers there have handled the virus, and had invested heavily in prevention, surveillance, and response protocols. He said Ingham's had diversified its feed mills, farming, hatcheries, processing and distribution across six states, allowing it to isolate affected areas and redirect supply if an outbreak occurred.
'An outbreak in one location does not automatically translate into disruption across our broad network,' he said. 'We have the ability to isolate affected areas, protect other parts of the network and redirect production and supply.'
While Ingham's believes it is better prepared than its competitors, Mr Alexander acknowledged that the virus remains a serious threat to the entire poultry industry, which includes chickens, eggs, ducks and turkeys. Once a single bird in a flock contracts the virus, farmers are typically required to destroy the entire flock because bird flu is highly contagious and lethal.
Europe has culled about 120 million commercial birds since its H5N1 outbreak began more than five years ago, with egg production hit harder than chicken meat. Mr Alexander said egg farmers were more likely to be affected in Australia due to the age of the birds and generally lower biosecurity controls.
Regardless of whether bird flu spreads to commercial flocks, Mr Alexander said chicken prices would rise as the industry deals with increasing costs. Other factors affecting production costs were not detailed, but the warning points to higher prices for consumers in the coming months.