Aviagen & Inghams Enterprises Sign Heads of Agreement on Future Supply

AUSTRALIA - The two companies formally entered into the principles of agreement on Sunday, 20 May, that will strengthen their partnership and form an important commitment for future supply to both Inghams and the Australian poultry industry.
calendar icon 22 June 2012
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The agreement addresses the full transition by Inghams to Ross breeding stock and the commitment by Aviagen to lease and acquire several Inghams owned production facilities within New South Wales over the near future.

Bob Dobbie, President Aviagen International, Kevin McBain CEO Inghams, Bill Souther VP Aviagen Asia and Peter Hanna General Manager Avian ANZ at PIX 2012

Kevin McBain CEO Inghams and Bob Dobbie President International Aviagen at signing of agreement

Aviagen will initially acquire the land and buildings on two large Ingham great grandparent farms near Goulburn and Bowral NSW and will make a significant investment to expand GP capacity.

Ingham will lease their quarantine station in Bungonia, NSW to Aviagen.

A feasibility study is underway to assess expansion potential of the Ingham hatchery in Maldon, NSW prior to its purchase.

Aviagen will initially lease the remainder of the Inghams grandparent farms.

The agreement extends an excellent business relationship built upon Ingham’s transition to the Ross 308 in New Zealand and a strong commitment and trust in the performance of each company in the Australasian poultry market.

Inghams is an industry leader in the Australasian chicken meat market with a turnover this year in excess of AUS$2 billion – a business they entered in its formative years of the 1950’s. The company entered the New Zealand market in 1990 with the acquisition of Harvey Farms. Apart from its chicken business Inghams is also a major supplier to the turkey market in Australia using the Aviagen Nicholas breed .

When Inghams CEO Kevin McBain was asked at a recent NSW Farm Writers Lunch, ‘why has chicken been so successful?’ he responded by referring to the gains made in egg production, hatch, livability and importantly feed conversion flowing from the ever – improving genetics offered by the international genetic breeding companies. He added the second most important factor was the science of chicken nutrition with its impact on cost, followed by husbandry and the way growers now farm their birds with tunnel ventilated sheds creating the perfect conditions for growth and welfare.

Aviagen is the global leader in poultry genetics, marketing three successful commercial products, Arbor Acres Plus, Indian River and Ross to about 130 countries worldwide. The company is headquartered in Huntsville, Alabama and has supplied breeding stock to the Australian market since 1991 from its breeding programs in the UK and US. Aviagen Australia Pty Ltd was formed with the purchase of the grandparent facilities of Bartter Enterprises in NSW in 2008 and the primary objective of providing domestic supply and technical support to customers in Australia and Asia.

“We are pleased with this agreement and the commitment from Aviagen to work closely together to utilize our current facilities and pursue future growth in our market,” commented Kevin McBain, CEO Inghams Enterprises.

Bob Dobbie, President Aviagen International added,” This agreement with Inghams is a reflection of the trust and understanding that has grown between the two companies. We look forward to supporting Ingham’s in their future growth and to expanding their excellent facilities to fulfill our commitment to the Australian poultry industry.”

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