11-05-2025
NSPCA secures urgent court order while Daybreak chair flies coop with R625,000 payout
The collapse of state-owned poultry producer Daybreak Foods took a new turn this weekend as board chairperson Bojane Segooa resigned abruptly after securing a R625,000 payout, just as courts ordered the company to stop its mistreatment of nearly 600,000 starving birds.
On Saturday, 10 May 2025, the NSPCA obtained an urgent interim court order from the Gauteng High Court in Johannesburg compelling Daybreak to stop inhumane killing practices and provide adequate feed to 594,000 starving breeder birds at farms in Bela-Bela and Mookgopong.
'This is not just a failure of farming practices – it is a collapse of basic ethical standards,' said senior inspector Nazareth Appalsamy. 'The breeder birds are not only starving, they are suffering immensely.'
The court order, which followed a whistle-blower tip-off on Wednesday, 7 May, confirms that Daybreak:
Deployed untrained workers to kill birds by swinging them by the head;
Failed to disclose conditions at remote farms despite prior interventions;
Ignored earlier warnings, leading to preventable mass suffering.
The NSPCA is returning to court on Tuesday, 13 May 2025 to make the interim relief permanent and is preparing criminal charges under the Animals Protection Act.
Feathers fly in C-level suite
The decision by Daybreak board chair Bojane Segooa to resign amid a strike by unpaid workers on Thursday, 8 May, as reported by TimesLive, – reportedly blindsided board colleagues already grappling with a spiralling crisis involving starving livestock and an organisation on the brink of liquidation.
Her resignation came shortly after she had demanded R1.2-million in board fees, which then led to internal conflict and the resignation of CFO Aubrey Dali after she stripped him of his powers when he refused to authorise the payout.
Despite resistance, Segooa ultimately received a payment of R625,000 before her hasty exit. Sources close to the board describe her exit as 'strategic abandonment' as the remaining three board members have opted to forgo their fees 'in good conscience'.
Segooa's exit follows the February 2025 resignation of CEO Richard Manzini and the entire executive team, who left after the PIC failed to promptly release approved funding. However, insiders say the company was already 'technically insolvent' as early as 2016, just months after its acquisition.
Daybreak's failure is becoming a case study in one of the most significant investment collapses in the Public Investment Corporation's (PIC) recent history. What began as a 2015 BEE-backed acquisition of Afgri Poultry, funded by the PIC to the tune of R1.19-billion, has spiralled into a humanitarian, animal welfare and financial disaster with at least R1.44-billion in public funds now at risk.
PIC acquisition was not the trigger for chicken war…
Despite the timing, the PIC's 2015 acquisition of Daybreak Foods did not cause the so-called 'Obama chicken war'. This term refers to a long-running trade dispute between South Africa and the US over American poultry imports, not local investment deals.
The background:
For more than 15 years, US chicken (especially bone-in pieces) was blocked from South Africa due to anti-dumping tariffs.
In 2015, tensions escalated during negotiations over Agoa (African Growth and Opportunity Act), which gave SA duty-free access to US markets.
Key moments:
June 2015: PIC buys Daybreak Foods. At the same time, US and SA negotiators reach a poultry deal where SA agreed to accept 650,000 tons of US poultry exports.
November 2015: After several delays, President Obama threatens to revoke SA's Agoa benefits if poultry access isn't resolved.
January 2016: US sets a March deadline for compliance.
February 2016: SA meets final conditions – US poultry begins entering the market.
Bottom line: The 'chicken war' was about trade access and tariffs, not Daybreak. The PIC's purchase was a domestic investment, not a trigger for the dispute.
Workers still unpaid, under fire
Roughly 3,400 workers remain unpaid for April. Some are now homeless or unable to feed their families. On Tuesday, 6 May, protesters seeking answers were reportedly met by police who fired rubber bullets. Workers say UIF and provident fund contributions have not been made and they have not been provided with the necessary documents to claim temporary relief.
Management has offered no clarity on backpay, business rescue or termination procedures. The Department of Labour has intervened and is exploring enforcement and compliance mechanisms.
PIC steps in
In a statement shared with Daily Maverick on Friday, 9 May 2025, the PIC confirmed that it had 'allocated a requested R250-million facility, R176-million of which was provided in February 2025.'
It added that a further R74-million, originally intended for capital expenditure, had been repurposed for immediate operational support.
'The R74-million will now be allocated to provide immediate working capital, to address the company's immediate liquidity needs, which include:
Outstanding salaries for April 2025;
Feed supplies to prevent further starvation and cannibalism;
Essential expenses necessary to avoid liquidation.'
The PIC said Daybreak's board and management 'remain responsible and accountable' for the company's operations. It is 'assisting the board to strengthen management to bring stability' and has instructed leadership to implement a 'credible turnaround plan to ensure long-term sustainability and growth'.
Department of Labour — 'We are concerned'
The Department of Employment and Labour expressed alarm on Sunday at reports of Daybreak's collapse, noting that the company was funded through PIC investments made on behalf of both the Compensation Fund (CF) and the Unemployment Insurance Fund (UIF).
'As funds are mandated to safeguard and grow the financial resources intended to benefit workers, the CF and the UIF are committed to ensuring that all investments made on their behalf align with their investment policies and deliver sustainable, long-term returns,' the department said.
A spokesperson also confirmed that the department is 'engaging with the PIC to seek clarity on the status of this investment' and will take 'appropriate measures to protect the interests of stakeholders and ensure accountability'. DM
