Poultry supplier Ingham’s has reported staff shortages across its warehouses as rising Covid case numbers push workers into isolation.
Despite not experiencing significant on-site transmissions, the company outlined disruptions to its production and distribution capabilities which ultimately impacted its sales and performance.
This update comes as a result of the spread of the Omicron variant across the Eastern Australian states, which has continued to climb since December 2021.
Ingham’s CEO and MD Andrew Reeves said the ‘surge’ of the Omicron variant in Australia has presented a huge challenge to the business as it has forced the company’s workers into isolation from being either close contacts or through contracting Covid in the community.
“We are currently maintaining our Australian processing operations while seeking to ensure the safety and engagement of our employees, many of whom are demonstrating outstanding levels of commitment to work through the current challenges,” Reeves said.
Furthermore, trading difficulties have resulted in operational inefficiencies, which have temporarily suspended production of some of Ingham’s products.
“Ingham’s is working closely with our customers and we are focussed on supplying as much product as possible … while the disruption continues.”
Operations are expected to stabilise and recover after the NSW and Queensland state governments announced changes to isolation rules for close contacts in ‘essential work’. Addressing that, Reeves said the company will continue to implement initiatives to attempt to minimise the impacts of Covid through the second half of FY22.
The ASX-listed company will announce its first-half results in February.