South Africa’s fifth largest poultry producer, Daybreak Foods, has been making local and international headlines recently for all the wrong reasons.
A year ago, the state-owned company was looking at new growth in an overhaulfunded by its owner, the Public Investment Corporation. The PIC, Africa’s largest fund manager, invests money on behalf of government pension funds.
Now, the headlines are of starving chickens and forced culling at Daybreak, with animal welfare having to step in because the company cannot afford to buy feed or pay its 3 400 workers.
Daybreak’s PIC-nominated CEO, Richard Manzini, quit in February, followed by other members of the management team. This week the board chair, Bojane Seqooa, made the front page of a Sunday newspaper which said she had walked out after securing a substantial pay cheque.
Daybreak, whose main operations are in Delmas to the east of Johannesburg, is estimated to have about 5% of the South African market. It is rated as the country’s fifth largest poultry producer, after Astral, Rainbow, Country Bird and Sovereign.
The company says its operations range from breeding farms and hatcheries to the production of fresh and frozen chicken.
The PIC has released new funding – R74 million originally intended for capital expenditure – to pay workers, buy food and for operational expenses “necessary for running the business and avoid liquidation”.
The PIC says it is strengthening the board and assisting it to strengthen management “to help bring stability to the company and to resume normal operations”.
Hower, it stressed that the Daybreak board and management remain responsible and accountable for the company’s operations and finances.
“Daybreak’s leadership is tasked to develop and implement a turnaround strategy and a credible turnaround plan to ensure long-term sustainability and growth, including how the company intends to avert job losses and safeguard the welfare of the livestock,” the PIC stated.
The Financial Times in London reports that the South African parliament is to
