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South Africa’s poultry industry makes no secret of the fact that it’s very concerned about the growing impact of extremely cheap poultry from countries like Brazil, Argentina, the Netherlands and even the US.
SA currently imports 3.7m broilers a week, which is usually a correlation to the exchange rate and import tariffs in place. AFGRI Poultry succeeded in improving its results in these difficult circumstances during the past year, but AFGRI remains comitted to it’s poultry division and is bullish on the future growth of the industry and therefore, for example, we increased our interest in the poultry market through the recent acquisition of the Rossgro plant at Delmas, which will increase our production by 350 000 broilers a week, says Steenkamp.
Also the capacity of the Daybreak abattoir in Sundra was increased to about 700 000 broilers a week.
The capacity utilisation of these two plants since March was very close to 100%.
Since AFGRI itself obtains and stores grain, produces animal feed and is involved in the grain value chain in other ways, the effect of the price increases can be further curtailed. In fact, in the latest annual report – for the financial year to end-June – AFGRI’s board spoke highly of the cost savings achieved in the animal feed division.
But how much has AFGRI Poultry grown over the years and how does it operate in the extremely competitive poultry market?
Everything started in 1985 when AFGRI – at that time called OTK – acquired a 40% interest in the private companies Earlybird Farm and Earlybird Chicks. The interest was sold in due course, but in 2006 AFGRI again entered the poultry industry when it bought Daybreak Farms (AFGRI Poultry). Production has since grown from 470 000 broilers a week to the current 1.05m making AFGRI Poultry the fourth-largest producer in SA.
The process works roughly as follows: AFGRI Poultry’s Hubbard plant supplies the parent stock to Midway Chix, which then supplies day-old chicks to AFGRI’s own broiler farms and independent contract growers. After processing, the processed chickens are delivered to independent wholesalers and chain stores like Checkers, Spar and Pick n Pay, often as the group’s own brand. The majority are distributed in Gauteng and KwaZulu-Natal.
AFGRI Poultry’s own brand, Daybreak Superior, is well known.
However, Steenkamp says AFGRI Poultry will constantly be on the look-out for new opportunities but AFGRI must remain a low-cost producer.
Production must be optimised, and other options, such as catering, must be exploited profitably.
And being a regular supplier to the fast-food market can be beneficial.”
It’s a tough industry with challenges, Steenkamp says, but together with his current team he wouldn’t swop it for any other.
SA currently imports 3.7m broilers a week, which is usually a correlation to the exchange rate and import tariffs in place. AFGRI Poultry succeeded in improving its results in these difficult circumstances during the past year, but AFGRI remains comitted to it’s poultry division and is bullish on the future growth of the industry and therefore, for example, we increased our interest in the poultry market through the recent acquisition of the Rossgro plant at Delmas, which will increase our production by 350 000 broilers a week, says Steenkamp.
Also the capacity of the Daybreak abattoir in Sundra was increased to about 700 000 broilers a week.
The capacity utilisation of these two plants since March was very close to 100%.
Since AFGRI itself obtains and stores grain, produces animal feed and is involved in the grain value chain in other ways, the effect of the price increases can be further curtailed. In fact, in the latest annual report – for the financial year to end-June – AFGRI’s board spoke highly of the cost savings achieved in the animal feed division.
But how much has AFGRI Poultry grown over the years and how does it operate in the extremely competitive poultry market?
Everything started in 1985 when AFGRI – at that time called OTK – acquired a 40% interest in the private companies Earlybird Farm and Earlybird Chicks. The interest was sold in due course, but in 2006 AFGRI again entered the poultry industry when it bought Daybreak Farms (AFGRI Poultry). Production has since grown from 470 000 broilers a week to the current 1.05m making AFGRI Poultry the fourth-largest producer in SA.
The process works roughly as follows: AFGRI Poultry’s Hubbard plant supplies the parent stock to Midway Chix, which then supplies day-old chicks to AFGRI’s own broiler farms and independent contract growers. After processing, the processed chickens are delivered to independent wholesalers and chain stores like Checkers, Spar and Pick n Pay, often as the group’s own brand. The majority are distributed in Gauteng and KwaZulu-Natal.
AFGRI Poultry’s own brand, Daybreak Superior, is well known.
However, Steenkamp says AFGRI Poultry will constantly be on the look-out for new opportunities but AFGRI must remain a low-cost producer.
Production must be optimised, and other options, such as catering, must be exploited profitably.
And being a regular supplier to the fast-food market can be beneficial.”
It’s a tough industry with challenges, Steenkamp says, but together with his current team he wouldn’t swop it for any other.
