Afgri to unbundle broiler business
South African agricultural service business Afgri was looking to separately list Daybreak, its vertically integrated broiler business, within six months, managing director Jeff Wright said.
Wright
cautioned, however, that the company’s broilers were fed mainly on maize, and
higher prices for grain and fuel prices increased the input costs of producing a
chicken.
These inflationary costs would have to
be recovered in the marketplace and eventually feed through to higher retail
prices.
Wright said the acquisition of the Daybreak broiler business justified Afgri’s
decision to re-enter this market.
During strong
domestic economic growth, where demand for broilers was growing at an average of
5% a year, the company contributed R347 million (€36.8m) to group turnover and
R41.1 million (€4.35m) to profit before interest and tax.
A R410 million (€43.46m) expansion project to double production had
already been approved and more staff would be hired, he
said.
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