S. Africa's poultry sector battles with feed costs and power shortages
Johannesburg, South Africa, has been experiencing many
power shortages in the region over the past several months. But, how has this
affected the poultry industry?
Food group Astral's broiler business has reportedly taken a hit, with
approx. 40 mln Rands (€3.3 mln; US$5.2 mln) in direct costs.
Each time there is a power failure Astral loses the entire output at any or
all of its three factories, which comes to 10,000 carcasses an hour, AllAfrica
reports. This also entails closure of the steam plant for compulsory cleaning
before production can resume. Each time this happens, 600-800 workers have to
work an overtime shift of 10 hours. To add to this, any time Astral's retail
customers suffer outages, any consignment of fresh chicken already on its way
must be dumped.
All that cost R40 mln over the half year to March, and it goes a long way
to explain the R48 mln lower operational profit against the R456 mln reported
for the first half of 2007.
Economic conditions are not good. Interest rates are soaring and this
affects consumer spending. The sharp increase in poultry feed is also depressing
the poultry sector, along with other agricultural sectors.
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