Phibro Animal Health Corporation (NASDAQ:PAHC) Q2 2023 Earnings Call Transcript

Jack Bendheim : Well, there’s — as we mentioned earlier, we don’t do a lot of is on the feedlot, but what we are seeing where it has affected us. The drought has forced all the farmers to take animals off the pasture because there wasn’t an ability to feed them the pasture and move them the feedlot. So that has been — in the early first part of the year, sort of an increase. Now when those animals have been processed, there are pure animals following it, and that will have, I would say, more of an effect next year than even has this year. So it’ll have more effect in calendar year 2023 than it had in calendar 2022.

Unidentified Analyst: Much appreciated. And then just a last one here. There have been a floor of recent articles on the impact of the bird flu to the global layer slot. I know that you’re not super exposed there, but can you talk to your outlook for the poultry market in general? And has this gotten any worse over recent months given how long it’s been going on?

Jack Bendheim : I think the shock in the industry is how long it’s persisted. I mean, normally, we’ve seen being influenza in the past, but by the summer time, it’s gone. And this year, it’s not gone in the summertime and it continues to persist. So we will see the effect it’s had on the price of eggs given that, that might be — there might be a consumer pullback and that those prices might start dropping. It’s so far, it hasn’t really hit the broiler industry, which is the biggest part of our business, the biggest part of the chicken business. But it’s out there, and it’s scary.

Operator: Your next question comes from the line of a representative at Barclays. Your line is open.

Unidentified Analyst: Hi, good morning. This is Bishal for Balaji. We see that one of the important contributing factor for your growth in the MFA business in the growth in Latin America. Do you expect this trend to continue? Or what is your outlook for your MFA and animal health business in Latin America? Thanks.

Jack Bendheim : Thank you for that question. We’ve been investing a while in Latin America and expanding our presence there. And yes, I think we will continue to see growth in those markets. relative to what we’ve done in the past.

Damian Finio: Is there any more in the queue that we can respond to? You may be on mute. We cannot hear your line. So we will assume there’s no more questions for today.

Operator:

Damian Finio: So we appreciate your time. Thank you for your interest in Phibro Animal Health, and have a great rest of your day.