Chicken farm funded by PIC fails to reverse court order against inhumane practices
Daybreak Foods and the Public Investment Corporation have failed to prove that they should be allowed to continue their chicken breeding operation unsupervised.
The Gauteng High Court on Friday confirmed that the National Council of the Society for the Prevention of Cruelty to Animals (NSPCA) will have the authority to monitor Daybreak's business until further notice.
The respondents, Daybreak and the PIC, were given the opportunity to reverse an interdict handed down earlier this month ordering the cessation of the inhumane treatment of their chickens.
R74 million given by PIC
The court had earlier granted an interdict against Daybreak due to the inhumane culling of the breeder birds, as well as the lack of appropriate food for the chickens.
Breeder birds were being culled by wringing their necks and financial problems at Daybreak left the operation without food for the animals or staff to tend them.
Daybreak denied any wrongdoing, but stated in their answering affidavit that the company was in a 'state of disrepair due to financial mismanagement'.
Failure to pay staff led to casual workers being employed, with Daybreak stating that there were no resources to adequately train the casual workers which may have been responsible for the improper slaughter.
The company argued that any injuries present on the chickens were due to the animals pecking each other, allegedly natural chicken behaviour.
The PIC had given Daybreak R74 million to rectify the situation but it was not enough for the court to rule the situation had been remedied.
Respondents to pay costs
The PIC had confirmed earlier in the week that Daybreak had been placed under business rescue and that the company's board had been reconstituted.
On Friday, the chicken farm and the PIC were required to address an action plan for cooperation with the NSPCA and their adherence to health and safety protocols.
Daybreak and the PIC will be liable for the NSPCA's legal costs and must provide a remedial timeline to the animal welfare organisation within five days.
Until the NSPCA is satisfied or the parties agree, Daybreak will not be allowed to breed chickens or place hatchlings at any affiliated facilities, and must properly care for their existing chickens.
'Our teams were on the ground on the Daybreak Farms in Bela-Bela and Mookgopong, Limpopo for 12 days, confronting the grim realities these animals endure,' stated NSPCA spokesperson Jacques Peacock.
'We will remain vigilant in ensuring Daybreak's full compliance with the Court's order and will continue to monitor the situation closely,' Peacock concluded.
NOW READ: Business rescue for stricken chicken producer Daybreak Foods
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
3 days ago
- The Citizen
PIC stuffs more funds into Daybreak Foods, after chicken catastrophe
NSPCA and business rescue professionals are working together to achieve what those responsible – and being paid – failed to do. It took a public outcry and the killing of thousands of starving chickens to get people to act against years of poor management at Daybreak Foods, the large poultry producer owned by the Public Investment Corporation (PIC). Complaints to the National Council of SPCAs (NSPCA) about starving chickens eating each other alive finally prompted intervention in April. The NSPCA said in a statement that it has laid criminal charges against the then directors of Daybreak Foods following the 'large-scale animal welfare disaster that has captured global attention'. 'In this catastrophic failure, that has sent shock waves throughout the world, more than one million birds were subjected to extreme neglect, resulting in widespread suffering and death. 'Following extensive on-site investigations, the NSPCA uncovered overwhelming evidence of gross negligence, systemic mismanagement, and a complete abdication of responsibility by Daybreak's leadership. These failures were not only inhumane but criminal in nature, prompting the NSPCA to take legal action. 'We will now work closely with the South African Police Service and the National Prosecuting Authority to pursue justice on behalf of the animals that suffered,' says the NSPCA. ALSO READ: Business rescue for stricken chicken producer Daybreak Foods Business rescue Since the recent problems came to light in May 2025, the PIC has appointed a new board of directors and pledged more than R200 million in additional funding. It said that it was 'deeply disturbed' by reports of culling and cannibalism among the poultry stock at Daybreak Foods' farming operations. Despite being the sole owner of Daybreak Foods, the PIC quickly distanced itself from responsibility. 'The board and management of Daybreak are responsible and accountable for the operations and finances of the company,' it said, adding that it would nevertheless continue to support Daybreak and has provided capital allocations to ensure the company's liquidity. Daybreak Foods was placed into business rescue on 20 May. The PIC has expressed its support for the business rescue process. 'The PIC is of the firm belief that the company can be rescued – and must – be rescued, and that business rescue is the best path to preserve the company's value and potential, saving approximately 3 000 jobs, and importantly, realise returns for clients and their beneficiaries on their investment. 'The PIC has already undertaken several measures to contribute towards stabilising Daybreak Foods, which includes the injection of R74 million in working capital, that is intended to address the company's immediate liquidity needs,' it said. Tebogo Maoto, senior business rescue practitioner (BRP) for Daybreak Foods, said in response to questions that the BRP welcomes the PIC's funding support, which will provide the much-needed liquidity to implement the emergency phase of company's business rescue proceedings. 'The PIC funding will be utilised for making payments for critical operational costs, including salaries whilst the business rescue plan is being developed (to be published on 22 August 2025). 'The BRP will continue to engage with the funders and shareholder to address the additional liquidity support needed for the emergency phase of the business rescue process, and to seek a strategic equity partner. 'The BRP has taken full management control of the company and is working closely with current management in the interest of all stakeholders. The PIC, as a shareholder and lender, is not involved in the company's operations. 'The BRP engages the PIC on a regular basis, providing updates on the status of the company's business rescue proceedings,' says Maoto. He says that only the hatchery and breeder operations are currently being run at Daybreak Foods, and that the proposed business rescue plan will deal with the manner in which the company's other operations will be reactivated in order for it to reach break-even and turn a profit. 'The BRP cannot comment on the PIC's future plans, save to state that it remains committed to rescuing the company,' says Maoto. ALSO READ: SPCA lays charges against Daybreak Farms' bosses NSPCA The NSPCA said it is currently closely involved with many aspects of Daybreak's chicken farms and continues to monitor the situation carefully. 'The NSPCA remains actively involved. We receive weekly reports from Daybreak Foods, which include delivery notes for feed, mortality figures, and other key welfare indicators. We verify this information through physical inspections. 'We conduct on-site inspections, with additional assistance from the local SPCAs with jurisdiction over the relevant sites, to assist with ongoing oversight. 'At present, there are no immediate welfare concerns. Operations have scaled down significantly, with only the two breeder sites in Limpopo still active. While rearing has not resumed, the limited scope of operations makes oversight more manageable at this stage,' according to a spokesman for the NSPCA. Asked if the NSPCA has insight into the purchase of food for the chickens, he says that the weekly reports provide oversight. 'However, we are aware that Daybreak is currently under significant financial strain and has a long list of creditors. While feed has been provided consistently thus far, we are unable to confirm how long this can be sustained.' Daybreak Foods currently keeps approximately 220 000 breeder birds in two farms in Limpopo, but has submitted a formal request to the NSPCA to resume breeder operations by introducing additional breeder stock. 'We are scheduled to meet with them to discuss this proposal and assess the potential welfare implications,' he added. That the NSPCA should agree to a private company expanding operation is, in this case, necessary – the pictures of neglected chickens prove this. ALSO READ: Chicken farm funded by PIC fails to reverse court order against inhumane practices Corporate spin This reality is far removed from the corporate image portrayed by Daybreak Foods. Its website speaks of 'dedication and a commitment to excellence' and describes Daybreak Foods as a prominent player in the poultry industry. 'Our journey has been marked by continuous innovation, sustainability efforts, and a focus on delivering the best to our customers. Today, Daybreak Foods stands as a testament to hard work, resilience, and a relentless pursuit of quality, proudly serving communities with products they can trust. Daybreak Foods is currently a level 8 B-BBEE contributor, and we strive to improve our score through a range of initiatives. 'Daybreak Foods is one of the largest integrated poultry producers in SA. Our core purpose is to maintain a unique position that allows us to reshape how we remain part of 'The Great South African Family' while growing the business portfolio. As we continue to grow, we are embracing our responsibility to drive positive change, solve problems, and make society a little better every day. 'Our values directly link the business activities to our responsibilities towards our stakeholders – including shareholders, management, employees, customers, the environment, society and government,' it says. In reality, it couldn't pay salaries or the monthly fee to access e-mails and related information technology services. Hopefully, the new directors appointed by the PIC will set things right. They seem to have the right credentials, including five agricultural and veterinary specialists – many with secondary business degrees – as well as two accountants from the PIC. The question remains: What is wrong in SA that things must fall apart and become a public embarrassment before efforts are made to fix it? Wouldn't it be easier to get things right the first time? This article was republished from Moneyweb. Read the original here.
TimesLIVE
4 days ago
- TimesLIVE
Porsche SE cuts outlook, plans bigger push into defence
Holding company Porsche SE, Volkswagen's largest shareholder, cut its full-year profit forecast on Wednesday, weighed down by the German carmaker's weak first-half performance, while reiterating its plans to invest in the defence sector. Why it's important US tariffs have dealt a heavy blow to global carmakers, forcing them to book billions of dollars in losses, issue profit warnings, slash forecasts and raise prices. Though the EU has reached a trade deal that brought US tariffs on EU-made cars down to 15% from the previously imposed 25%, some analysts remain cautious as the duty is far higher than the 2.5% rate before US President Donald Trump launched his trade offensive. German car and car parts makers are meanwhile exploring the defence sector as a potential growth avenue, as Europe ramps up military spending. Key quotes 'Against the backdrop of a changing geopolitical situation and growing security policy requirements, Porsche SE sees considerable development potential in the defence and security sector and intends to capitalise on this,' the company said in a statement. 'With regard to portfolio investments, our aim is to increase our involvement in the defence and defence-related sectors while maintaining our core focus on mobility and industrial technology,' chairperson Hans Dieter Poetsch said. By the numbers Porsche SE expects the adjusted group result after tax to land between €1.6bn (R32,860,000,000) and €3.6bn (R74,005,200,000) in 2025, compared with €2.4bn (R49,349,280,000) to €4.4bn (R90,469,676,000) anticipated earlier. It reported an adjusted net profit of €1.1bn (R22,617,419,000) for the first half of the year, down by nearly a half from last year's €2.1bn (R43,178,709,000). Context Porsche SE, controlled by the Porsche and Piech families, is highly exposed to Volkswagen's performance through its nearly 32% stake, which influences its valuation, earnings and financial guidance. It also owns 12.5% of luxury carmaker Porsche AG, with much of the rest held by the Volkswagen Group. For full-year 2024, Porsche SE had disclosed impairments of €19.9bn (R409,169,671,000) on VW and €3.4bn (R69,899,240,000) on Porsche AG.
IOL News
06-08-2025
- IOL News
The PIC's Resilience: From Steinhoff to R3 Trillion – Now Let Its CEO Lead
Public Investment Corporation (PIC) CEO Patrick Dlamini. Image: Supplied The Public Investment Corporation (PIC) is one of South Africa's greatest institutional assets—literally and figuratively. Despite being rocked by scandals such as the Steinhoff collapse, and years of political brinkmanship, the PIC has not only survived but tripled its assets to over R3 trillion. This is no small feat. It is a testament to the resilience of the institution, the professionalism of its staff, and, above all, the power of workers' collective capital. This remarkable growth didn't happen by chance. It is the legacy of seasoned leadership: Elias Masilela, who brought post-crisis stability after 2008; Dr. Dan Matjila, who expanded its developmental investment mandate; and Abel Sithole, who defended its integrity through unprecedented political pressure. Today, the PIC has a new CEO, Mr Patrick Dlamini, who brings an unblemished record of ethical leadership and financial discipline from his tenure at the Development Bank of Southern Africa (DBSA). His appointment marks a turning point—not just for the PIC, but for every public servant whose pension is invested through it. This Is Workers' Money—Not a Political Slush Fund Let us be clear: over 90% of the PIC's assets belong to public servants—teachers, nurses, police officers, and cleaners. These are ordinary South Africans who dedicate their lives to public service, and whose dignity in retirement rests on the prudent management of these funds. That the PIC has grown from R1 trillion to R3 trillion in just over a decade is a testament to the power of worker-led capital and the calibre of iits custodians. But history has shown that political interference—not market forces—is the PIC's greatest threat. We've seen attempts to pressure the institution into bailing out failing state-owned enterprises. We've witnessed the weaponisation of 'strategic investment' language to mask corrupt deals. And we've watched as principled CEOs have been hounded out of office for refusing to rubber-stamp politically motivated transactions. Let there be no doubt: the vultures are circling once again. Defend the Institution, Defend the Workers CEO Patrick Dlamini must be allowed to lead—without fear, favour, or interference. His mandate is not to please politicians; it is to grow workers' assets in a manner that is ethical, transparent, and impactful. He has already shown, through his time at the DBSA, that developmental finance and good governance can coexist. That is the leadership the PIC needs, and that is what public servants deserve. We therefore call for: Unambiguous support for Dlamini's independence. The PIC cannot afford to lose yet another CEO to political manoeuvring. Robust parliamentary oversight that rejects looting disguised as 'strategic investment.' Any effort to hijack workers' pensions for factional ends must be publicly exposed and legislatively defeated. A sharpened focus on investments that uplift the working class, such as affordable housing, student accommodation, healthcare infrastructure, and job-creating industries. These are investments that return financial value and social justice. The PIC Is Not for Sale Let us remind ourselves: the PIC is not a political toy. It is not a honey pot for the connected few. It is the backbone of 1.2 million public servants' pensions—and by extension, the dignity of their families, communities, and future generations. To the politicians: hands off. To the workers: stand up and be counted. To Patrick Dlamini: stay the course—we've got your back. If the PIC is to remain a vehicle for economic justice and shared prosperity, it must be led by professionals and protected from predators. South Africa needs institutions it can trust. The PIC, if properly defended, can remain exactly that. Tahir Maepa. Image: Supplied * Tahir Maepa is the Secretary General of the Public Service & Commercial Union (PSCU). ** The views expressed do not necessarily reflect the views of IOL or Independent Media.
