Media Statement
11.06.24
Farm Pride focus on Customers and Consumers
Farm Pride Foods Ltd is working closely with its customers to manage supply issues and limit the consumer impact of egg shortages caused by the Avian Influenza (AI) outbreak in Victoria.
AI at Farm Pride’s three farms in the Lethbridge/Meredith area has reduced the company’s egg production capacity by approximately 36%.
Meanwhile, the ASX-listed company has announced this morning a $6.17m fully underwritten Rights Issue capital raising to facilitate management of the current AI situation and investments in future growth.
Farm Pride managing director, Darren Lurie, said the fully underwritten Rights Issue, which has been in planning for some time, represented shareholder confidence in the recent performance and future prospects of the Company.
“Funds raised under the Rights Issue will be applied to supporting the Company’s working capital during the recovery from the impact of AI on the Lethbridge farms, expanding the Company’s rearing and laying farming operations, capital expenditure at the Keysborough grading floor and product plant and other working capital requirements.
“We are working through this current issue to continue the significant operating and financial performance turnaround which commenced with the Company restructure in February 2023.
“During this period of reduced egg production we will be managing operations to limit the impact on our customers and consumers,” Mr Lurie said.
The impact of AI at a number of other egg laying and rearing farms in the Lethbridge/Meredith and Terang areas has meant that the State is now expected to experience a significant egg shortage which will lead to increased egg prices.
All of the Company’s operations outside the Lethbridge area continue to operate as normal.
ENDS
For all media enquiries, please contact:
Jonathan Raymond, 0418 534 811