Recent reports indicate that poultry producer Inghams has expanded biosecurity lockdowns across its Australian operations in response to the growing threat posed by the H5N1 bird flu virus. According to reporting on 11 August 2026, Inghams has implemented nationwide precautionary measures as authorities respond to increasing biosecurity concerns and potential impacts on food supply chains.
While the current measures are preventative, the development is a timely reminder that supply chain disruption can arise with little warning. In recent years, Australian businesses have faced disruption from pandemics, extreme weather events, geopolitical instability, labour shortages, and now renewed biosecurity risk.
Businesses that rely on key suppliers should consider whether their existing supply agreements adequately protect them if supply becomes constrained, delayed or unavailable.
Key questions to ask
- Does the agreement address shortages, allocation of supply and disruptions to production?
- Are there adequate force majeure provisions, and what events are covered?
- Can the supplier increase prices due to increased costs or reduced supply?
- Does the customer have rights to source products elsewhere if delivery obligations are not met?
- Are there minimum supply commitments or service levels that protect continuity of supply?
- What termination rights exist if the supplier can no longer perform?
- Does the agreement provide sufficient protection if the supplier experiences financial distress?
Agreements built for a different market
Many supply agreements were entered into during more stable trading conditions and may not reflect the commercial realities businesses face today. The recent bird flu developments provide a useful prompt for businesses to revisit their supplier arrangements before disruption occurs, rather than after it has already impacted operations.
At Baybridge, we are assisting clients to review supply agreements, identify areas of risk, and strengthen contractual protections to improve business resilience. If your business relies on critical suppliers, now is a good time to ensure your agreements remain fit for purpose.
