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Quantum Foods adapts strategy amid high risk of avian influenze outbreak in South Africa
Quantum Foods adapts strategy amid high risk of avian influenze outbreak in South Africa

IOL News

time27-05-2025

  • Business
  • IOL News

Quantum Foods adapts strategy amid high risk of avian influenze outbreak in South Africa

The South African Poultry Association warns there is a high risk of a High Pathogenic Avian Influenza (HPAI) outbreak in South Africa, given the outbreaks in many other parts of the world. Image: Supplied Quantum Foods said the risk of a highly Pathogenic Avian Influenza (HPAI) outbreak in South Africa is high, given outbreaks in many other parts of the world, and the group has adapted its strategy to lessen its risk to the disease. The JSE-listed diversified feed, poultry, and egg business operating in South Africa, Zambia, Uganda, and Mozambique said on Friday it is placing less of its layer hens in areas that have a higher risk of HPAI, and is sourcing hatching eggs from geographically diverse breeder farms due to the escalating risks of an HPAI outbreak. 'The risk of an HPAI outbreak is regarded as very high for the remainder of the 2025 financial year, with an increased number of outbreaks reported in recent months in the US, Europe, North Africa, and West Africa,' CEO Adel van der Merwe and chairman Andre Hanekom said in the interim results for the six months to March 31, which were released on Friday. The directors said that stringent protocols for voluntary vaccination against HPAI that have been published by the South African government are prohibitive and, to the best of their knowledge, no producers have been successful in their applications to vaccinate poultry. 'In the absence of vaccination, HPAI will remain a key risk factor that will continue to affect poultry businesses going forward, resulting in major uncertainty for the poultry industry, which could severely impact earnings,' Van der Merwe and Hanekom said. They said that total egg production in South Africa is steadily increasing as the national flock recovers from the outbreaks of HPAI in 2023 and 2024. The South African Poultry Association has forecast national egg production to be at pre-2023 HPAI outbreak levels by mid-2025, in the absence of any new HPAI outbreaks. 'Egg selling prices decreased towards the end of the reporting period and are expected to decrease further in the second half of the year to September 30, 2025,' Van der Merwe and Hanekom said. They noted that trading conditions for the company had improved significantly in the six months, although this was compared to the same period a year before, when an outbreak of HPAI had impacted the company's birds to the value of about R37 million. The HPAI outbreaks in 2023 and 2024 not only negatively affected earnings in the previous reporting period, but it also resulted in reduced volumes of livestock, hatching eggs, and table eggs, as well as significant cleaning and disinfecting costs to prepare affected farms for future placement. Additionally, there were a number of loadshedding hours in the previous period. The reduction in load shedding hours in the six months under review resulted in lower generator fuel costs and fewer disruptions in the supply of feed raw material items. On December 26, 2024, a crowd forcibly entered a layer farm and looted about 16% of the layer birds. No injuries to staff occurred, and operations were able to resume soon after the incident. However, the hens looted and the resultant lower egg production, further impacted by a disruption in planned vaccinations, contributed to lower earnings from this business in the reporting period. Notwithstanding this, interim headline earnings per share increased sharply to 74.8 cents, up from 21.7 cents reported in the previous reporting period. No interim dividend was declared. Group revenue increased 19.6% to R3.6 billion, with a 20.1% increase (R560m) in the South African operations' revenue and a 13.8% increase (R31m) in the other African operations' revenue. The animal feeds segment increased by 14.1% (R212m) from the previous reporting period, primarily driven by an 11.3% increase in external volumes sold. The farming segment increased by 15.5% (R137m), mainly due to higher volumes of layer livestock sold. The egg segment increased by 52.4% (R212 m), with the 14.1% average egg selling price decrease being offset by the increase in sales volumes of 78.4%. Revenue from the other African operations increased, primarily due to the increased volumes of eggs sold at higher selling prices in Zambia and increased volumes of feed sold in both Uganda and Zambia. A positive margin from higher egg volumes, high operational efficiency at egg packing stations, effective cost management, and improved overhead cost recovery outweighed the negative effect of a 14.1% decline in average egg selling prices. Visit:

Malayan Flour Mills sees opportunities and challenges ahead
Malayan Flour Mills sees opportunities and challenges ahead

The Star

time21-05-2025

  • Business
  • The Star

Malayan Flour Mills sees opportunities and challenges ahead

The company said it expects to be profitable for the financial year ending 2025. PETALING JAYA: Malayan Flour Mills Bhd (MFM) believes that the changing geopolitical scene is a dynamic phenomenon that presents both opportunities and challenges for nations around the world. In a filing with Bursa Malaysia, the flour milling company said despite these challenges, it expects to be profitable for the financial year ending 2025. For the first quarter of financial year ended March 31, 2025 (1Q25), MFM's net profit dipped to RM33.09mil from RM37.9mil in the previous corresponding quarter, due to lower profits from the flour and grain trading segment and others segment. Revenue in 1Q25 rose to RM799.29mil from RM751.60mil a year earlier, mainly contributed by higher sales volume from the flour and grain trading segment, amidst lower selling price. Going forward, the company said commodity prices of wheat and grain remain volatile and continue to be impacted by the persisting uncertainties in macroeconomic and geopolitical considerations. 'The company will continue to monitor the impact of commodity prices arising from the global supply and demand dynamics and adjust selling prices accordingly and to diversify the sources of wheat, corn and soybean meal.' Globally, MFM said the poultry industry is adversely impacted by highly Pathogenic Avian Influenza outbreaks, resulting in disruptions in the global supply of grandparent day-old-chicks (DOCs), parent stock DOCs and commercial DOCs. 'Locally, the uplifting of chicken subsidy and ceiling price by the government is seen as a positive development for chicken producers once the supply and demand for poultry reaches an equilibrium. 'However, this equilibrium has been impacted by the weather, which impacts poultry output and import of poultry products from neighbouring countries.' With the expected recovery in the demand and the company's synergistic partnership with Tyson International Holding Co, MFM said it is optimistic of its outlook for 2025 and beyond.

Thousands more birds to be culled after suspected avian flu
Thousands more birds to be culled after suspected avian flu

Yahoo

time23-02-2025

  • Health
  • Yahoo

Thousands more birds to be culled after suspected avian flu

A suspected case of avian flu is under investigation at a commercial poultry premises in County Tyrone. Almost 16,000 birds at the site near Pomeroy will be culled. Temporary Control Zones have been established around premises, placing restrictions on the movement of poultry, captive birds and poultry products. It comes after around 64,000 birds were culled at a commercial poultry farm near Dungannon a week ago. That was the first incursion of the disease into a commercial setting since December 2021. The poultry industry in Northern Ireland is worth £0.6 billion to the economy here. All owned flocks in Northern Ireland, whether commercial, captive or backyard hobby birds, are currently under a housing order to try to prevent the disease affecting the sector. The Agriculture, Environment and Rural Affairs Minister Andrew Muir said preliminary tests at the Pomeroy farm on Saturday indicated the presence of the Highly Pathogenic Avian Influenza strain H5N1. "This suspected incursion following the recently confirmed case in Dungannon, County Tyrone, reinforces that we cannot afford to be complacent," he said. "It is imperative that all bird owners adhere to stringent biosecurity measures to protect their flock and report any suspicious cases immediately." The Chief Veterinary Officer Brian Dooher urged all owners to "fully comply" with all the requirements that have been implemented to try to control the disease. On Friday, the organisers of the Balmoral Show announced that there would be no poultry competitions this year, amid concern that the housing order may not be lifted in time to allow them to happen. Instead, a small display of birds from a single flock will be held as part of the Show. No poultry competitions at Balmoral Show due to bird flu Tens of thousands of birds being culled over suspected avian flu Avian flu housing order to be introduced in NI

Thousands more birds to be culled after suspected avian flu
Thousands more birds to be culled after suspected avian flu

Yahoo

time23-02-2025

  • Health
  • Yahoo

Thousands more birds to be culled after suspected avian flu

A suspected case of avian flu is under investigation at a commercial poultry premises in County Tyrone. Almost 16,000 birds at the site near Pomeroy will be culled. Temporary Control Zones have been established around premises, placing restrictions on the movement of poultry, captive birds and poultry products. It comes after around 64,000 birds were culled at a commercial poultry farm near Dungannon a week ago. That was the first incursion of the disease into a commercial setting since December 2021. The poultry industry in Northern Ireland is worth £0.6 billion to the economy here. All owned flocks in Northern Ireland, whether commercial, captive or backyard hobby birds, are currently under a housing order to try to prevent the disease affecting the sector. The Agriculture, Environment and Rural Affairs Minister Andrew Muir said preliminary tests at the Pomeroy farm on Saturday indicated the presence of the Highly Pathogenic Avian Influenza strain H5N1. "This suspected incursion following the recently confirmed case in Dungannon, County Tyrone, reinforces that we cannot afford to be complacent," he said. "It is imperative that all bird owners adhere to stringent biosecurity measures to protect their flock and report any suspicious cases immediately." The Chief Veterinary Officer Brian Dooher urged all owners to "fully comply" with all the requirements that have been implemented to try to control the disease. On Friday, the organisers of the Balmoral Show announced that there would be no poultry competitions this year, amid concern that the housing order may not be lifted in time to allow them to happen. Instead, a small display of birds from a single flock will be held as part of the Show. No poultry competitions at Balmoral Show due to bird flu Tens of thousands of birds being culled over suspected avian flu Avian flu housing order to be introduced in NI

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