Johannesburg - The drought in the country is having a severe effect on local food companies by increasing their costs, while poultry companies’ profits are evaporating amid significant poultry imports.
Major local poultry producer Astral Foods is battling high feed costs amid the devastating drought, which is knocking its profits. At the same time, its selling prices are under pressure due to a record amount of poultry imports.
Astral said this week: “On account of the severe drought affecting the country, poultry feed prices increased ... This resulted in a higher feeding cost driving the production cost of poultry up, which would not be recovered through the selling price to the end user.