The action in Australia's chicken coops is relentless.
Australia's second largest chicken supplier Baiada Poultry Pty Limited is not expected to sit back and let newly-listed chicken processor Inghams command the spotlight.
Well-placed poultry sources reckon Baiada has this year considered a potential deal with AJ Bush & Sons, one of the oldest meat retailers in Australia.
While there are no discussions under way, it's understood Burnvoir Corporate Finance was involved in running the numbers.
Bigger is better when it comes to poultry around the world as cost-cutting reigns and the pursuit of scale becomes more important in a fixed cost business.
This wouldn't be the first time Baiada has considered the acquisition of AJ Bush's poultry business, with the privately-run company known to have looked at a deal on previous occasions.
Baiada, which owns the Steggles brand, is a privately owned company which provides premium poultry products throughout Australia. Its operations include broiler and breeder farms, hatcheries, processing plants, feedmilling and protein recovery.
AJ Bush is an integrated wholesale, retail and feedlot business that spans more than just chooks. It also sources and sells beef, veal, pork, lamb and mutton.
It supplies its own retail butcher shops and other meat retailers across NSW.
Its brands include Riverina Blue Beef, Crystal Spring Lamb and Sunland Pork.
As Inghams was keen to impress on its shareholders ahead of its float earlier this month, there is strength in integration.
AJ Bush also operates two rendering plants, turning meat and poultry by-products into protein meals and tallows.
Chicken is the most consumed source of animal protein in Australia and New Zealand and it's growing due to higher beef prices and changing diets.
According to Inghams the total volume of chicken consumed in Australia grew at roughly 4.1 per cent per year between 1990 and 2015.
Converting by-products such as protein meal forms part of Inghams' ingredients business, which makes up about 3 per cent of total revenue. Its stockfeed operations account for about 13 per cent of revenue.
Inghams shares listed at $3.15 on November 6 and closed on Monday at $3.20.
Baiada has an estimated 33 per cent of the Australian chicken market, which makes it the number two player behind Inghams (40 per cent).
