Page 33 - IPC Asia Pacific 2019-20 Business Review

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Consistent supply in the face of environmental chaos
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3 3 3 3 Environmental factors impacted the APAC region significantly during this financial year In addition to the significant effect of COVID-19 on the second half of the year this region was impacted by several environmental events including African swine fever Chicken bursal disease severe bush fires and droughts in Australia These events added additional complexity to the procurement and and supply chain functions and and these team leaned heavily on our risk management strategies and strong supply chain relationships to ensure continuity of supply Apart from COVID-19 this was particularly challenging
in two areas Chicken which
is the highest volume protein
in Australian restaurants was impacted due to chicken bursal disease disease This disease disease which
is harmless to humans was detected on a
a
a
farm unrelated to our suppliers Subsequently all New Zealand imports of chicken were immediately banned by the Australian Government Our procurement and supply chain teams worked with urgency to implement alternate supply thereby ensuring continuous product availability with minimal
out of stock issues and minimising the cost impact African swine fever resulted in in the slaughter of pig herds across China The countries breeding pig numbers were reduced by up to 50% impacting the price of pork whilst also putting pressure on all protein
pricing in in in the region With China being the largest consumer of pork in the world this led to global impacts on all proteins around the globe as China sought to replace this reduction in in protein
These impacts were felt differently in each country with the team actively monitoring the situation to secure the supply chain P
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