The chicken supplier says it expects to sell one to three per cent less poultry in 2024/25 in part due to the new arrangement, but chief executive and managing director Andrew Reeves called it a manageable change.
"It's a one-time step-down," Mr Reeves told analysts on Friday, several of whom voiced concern about the arrangement. "We will still have the opportunity to grow with Woolworths as their business grows."
"It's not going to put that sort of pressure on our system that we've got to go and just dump volume on the marketplace. That's not going to happen."
Woolworths wants to add more poultry suppliers to its mix not because of pricing issues but instead to guard against disruptions, Mr Reeves said.
"It's very much a response to the experiences that we all had through the last couple of years of disruption," he said.
"They have, quite rightly, a very high priority on their customer service levels and security of supply."
Inghams shares were down 19.6 per cent to $3.11 on Friday morning amid concerns about the deal and what it might mean for the company.
Looking back to 2023/24, Inghams said on Friday the amount of poultry it sold in Australia and New Zealand rose by 2.8 per cent to 476.4 kilotonnes.
It sold more to supermarkets and less to fast-food restaurants as consumers left strapped by cost-of-living pressures dined out less frequently.
"The key long-term fundamentals supporting the poultry sector remain in place, with poultry continuing to be the affordable protein of choice for consumers," said Mr Reeves.
Revenue climbed 7.2 per cent to $3.3 billion following price hikes in response to significant inflationary cost increases borne by the business.Â
Inghams' net selling price was up 5.4 per cent to $6.28 per kilo.
Inghams profit was up 68 per cent to $101.5 million.
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