Never one to shy away from controversy, Elon Musk has responded with gusto to his latest task – firing thousands of federal staff in a bid to drive efficiency across US government departments.
But the axing of workers from the Department of Agriculture was considered a step too far. The group was trying to combat bird flu, which has been sweeping through America for months with far-reaching consequences.
Four years ago, US citizens could buy a dozen eggs for less than $1.20. Today, that same carton costs more than $4 and officials believe prices will rise further this year. Avian flu has swept through prime poultry states and around 130 million chickens have been slaughtered, creating a nationwide shortage of birds – and eggs.
The problem is acute and has even been linked to President Donald Trump’s triumphant return to the White House. His victory may have been attributed to anger at stubborn inflation, disillusion with doddery Joe Biden and a strong desire to Make America Great Again. For ordinary Americans, however, the spiralling price of eggs is thought to have played a key role in bringing him back.
Aim-listed Anpario can help. Based in Worksop, Notts, the firm specialises in natural food additives that can make animals healthier and better able to resist infection. America is a growing market and business has been brisk, particularly among organic and free-range chicken farmers. Antibiotics have traditionally been a go-to remedy on farms but their use is increasingly restricted as regulators try to combat resistance among humans.
Anpario’s products stem from natural ingredients, with its flagship range, Orego-Stim, made from pure oregano oil. This kills off bad bacteria in the gut, bolstering the immune system so birds are more robust and lay more eggs. Swine farmers are enthusiastic customers too, using Orego-Stim to help pigs grow faster and resist infection.
Growth: Anpario specialises in natural food additives that can make animals healthier and better able to resist infection
Anpario has an array of other products geared towards bolstering animals’ gut health through natural means. Chief executive Richard Edwards expanded his range last year with the acquisition of Wisconsin-based Bio-Vet.
Bio-Vet works principally with dairy farmers, supplying digestive aids, including probiotics that boost cows’ wellbeing and productivity. Demand is growing.
Avian flu has migrated into cattle and farmers are struggling as their herds suffer from high temperatures, listlessness and falling milk yields. Bio-Vet’s Capsule-In-A-Capsule combines probiotics with other nutrients, helping cows to fend off infection and recover faster if they succumb.
Anpario has traditionally focused on monogastrics – pigs and poultry with one stomach. Cows, or ruminants, have four stomachs and Bio-Vet brings access to this market.
Anpario had a tough time after Covid and profits fell in 2022 and 2023. But the group has bounced back and prospects are encouraging. A 20 per cent increase in sales to £37.5 million is forecast for 2024, with profits soaring almost 60 per cent to £5.5 million – and more growth expected this year.
Edwards prides himself on consistent dividend growth as well with 11p pencilled in for the year just ended, rising to 11.6p in 2025.
Midas verdict: We recommended Anpario in 2020 when the shares were £3.25. The price yo-yoed through the pandemic but has risen consistently since to £4.63.
Further gains are expected, making this stock attractive to new and existing holders.
Traded on: Aim Ticker: ANP Contact: anpario.com
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