Acquisition Boosts AFGRI Foods' Poultry Output

SOUTH AFRICA - In its latest six-month financial results, AFGRI Foods division highlights its more than 50 per cent increase in poultry production volume since last year as the result of an important acquisition.
calendar icon 2 March 2010
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The expansion of AFGRI Group's poultry operations at Daybreak Farms in Mpumalanga was commissioned in the first half of 2009 and a 57.4 per cent year-on-year volume increase has been recorded for the first six months of the financial year. In total, Daybreak produced some 36,000 tons of poultry meat during this period. This greater capacity coincided with a decline in poultry prices due to lower consumer spending, increased industry capacity and higher imports. Net selling prices were 8.5 per cent lower on average than the prior year.

The Animal Feeds business saw an improvement in volumes and margins through effective procurement and ongoing improvements in the formulation and manufacturing processes.

The results for the Oil and Protein division remained constant through improved extraction yields and efficiencies.

This division reported a 17.7 per cent increase in profit before tax on 21.3 per cent higher revenue.

The majority of the Group's capital expenditure was incurred in this segment and during the current period has been focused on Animal Feeds where a 60,000-ton factory is being refurbished in Pietermaritzburg and is expected to begin production in April 2010 and at the Oil and Protein division where the focus has been to restore the crushing and extraction plants to design capacities.

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