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The Citizen
28-05-2025
- Business
- The Citizen
Bird flu ban: Brazil suspension takes chicken and polony off South African tables — prices set to rise
Some meat producer in SA use mechanically deboned meat from Brazil to make polony, viennas, russians and braaiwors. Most South African households, particularly those with low incomes, rely heavily on chicken, as it is cheaper than other meat options like beef, lamb, and pork, making it one of the most accessible protein sources. Brazil plays a significant role in ensuring that South Africans have enough chicken, as the country accounts for more than 84% of South Africa's poultry imports. However, Brazil has recently experienced an outbreak of avian influenza, also known as the bird flu, which led to the South African government imposing a ban on imports from the country. Chicken shortage Department of Agriculture Deputy Director General of Agricultural Production, Biosecurity, and Natural Resources, Dipepeneneng Serage told The Citizen that the Department will monitor outbreak management and general disease management and control in Brazil, assessing reports from Brazil until the outbreak is closed before lifting the suspension. Imameleng Mothebe, CEO of the Association of Meat Importers and Exporters (AMIE), said local producers cannot, and will not be able to meet the gap in supply of poultry offal (feet, gizzards, and skins) and mechanically deboned meat (MDM), driving up prices and threatening the affordability and accessibility of basic protein for millions. 'Chicken offal and MDM are not luxuries. They are foundational to school feeding programmes and the production of processed meats, which are the most affordable proteins for low-income households. Ultimately, Brazilian MDM is the source of more than 400 million poultry-based meals per month for South Africa.' She added that, even though SA poultry producers have committed to increasing their production by four million birds per month, local producers alone cannot fill the gap created by the ban. And another challenge is that SA does not produce MDM at a commercial scale. ALSO READ: Here are the economic and social impacts of bird flu How much have chicken prices increased Mothebe added that if there is no regionalisation agreement put in place with Brazil, which will allow for the import of products from areas not affected by the outbreak, there will be many devastating impacts. The blanket ban on Brazilian imports can lead to price increases, food shortages, and job losses for local manufacturers of processed meats who employ more than 125 000 workers. 'With the current shortage of MDM, processed meat producers are facing cost surges as inventory levels are thinning, and shelf prices are starting to reflect this reality,' she said. MDM prices have increased from R13 to R31/kg, while offal, such as gizzards and skins, have seen double-digit increases. Higher costs She stresses that these price increases will be met by rising input costs, especially with the recently announced fuel levy hike in the national budget, which adds inflationary pressure across the value chain. 'We support government continuing engagements with Brazil towards regionalisation, a concept that demarcates affected areas whilst the rest of the country remains open. Regionalisation is widely accepted and supported by the World Organisation of Animal Health (WOAH), especially considering the ongoing global diseases phenomenon.' No polony for lunchboxes Arnold Prinsloo, CEO of meat producer Eskort said they use the MDM from Brazil to make polony, viennas, russians and braaiwors. The blanket ban on Brazil will put production lines to a standstill before the end of June. 'This will deprive South Africa's most vulnerable citizens of more than 400 million low-cost meals per month. 'Vulnerable families and thousands of school feeding schemes rely heavily on polony, and there is a real danger of widespread hunger and malnutrition if Eskort and its competitors cannot sustain supplies.' Prinsloo is calling on the Department of Agriculture to lift the blanket ban on Brazil and allow imports from parts of the country that have not experienced the outbreak. 'Brazil has indicated that it has submitted the necessary documentation and information to the department, but formal recognition and implementation remain outstanding,' he said. ALSO READ: Here's why chicken prices might increase soon Job losses looming Prinsloo added that the four- to six-week gap in supply due to the ban will also mean that many processors will face standing idle for more than 60 days, risking heavy job losses and instability in the lower LSM consumer segment. 'This is not only a supply chain crisis, but also a pending socio-economic and political disaster.' Can local poultry producers cover the gap? The South African Poultry Association (Sapa) seems to believe that local producers can make up for the gap created by the ban. 'We are currently producing about 21.5 million chickens per week, and the industry has the capacity to increase this by about another million birds per week. 'The impact of a ban on Brazilian chicken imports will not be felt immediately. Chicken imports from Brazil can take about six weeks to reach South Africa, and products dispatched before the ban is implemented will not be affected,' said Izaak Breitenbach, CEO of Sapa's Broiler Organisation. He added that winter months are a period of lower demand for chicken. Therefore, the additional supply of chicken should be sufficient to prevent shortages or price increases. However, Prinsloo disputed claims that local producers can make up for the chicken shortfall. 'It may be true when it comes to fresh or frozen chicken, but the local market doesn't produce mechanically deboned meat in any significant quantity,' he said. 'We rely on Brazil for 92% of our needs, which is why this is such a serious challenge.' NOW READ: Godongwana cuts zero-rated food basket in Budget 3.0
Yahoo
26-04-2025
- Business
- Yahoo
Weyerhaeuser Co (WY) Q1 2025 Earnings Call Highlights: Strong EBITDA Growth and Dividend ...
Revenue: $1.8 billion in net sales for Q1 2025. GAAP Earnings: $83 million or $0.11 per diluted share. Adjusted EBITDA: $328 million, a 12% increase over Q4 2024. Timberlands Earnings Contribution: $102 million with Adjusted EBITDA of $167 million. Real Estate, Energy, and Natural Resources Earnings Contribution: $56 million with Adjusted EBITDA of $82 million. Wood Products Earnings Contribution: $106 million with Adjusted EBITDA of $161 million. Cash and Debt: $560 million in cash and total debt of just under $5.2 billion. Share Repurchase: $25 million repurchased in Q1 2025. Dividend: $152 million returned to shareholders; quarterly base dividend increased by 5% to $0.21 per share. Capital Expenditures: $93 million, including $16 million for EWP facility construction in Arkansas. Cash from Operations: $70 million generated in Q1 2025. Warning! GuruFocus has detected 6 Warning Signs with WY. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Weyerhaeuser Co (NYSE:WY) reported a 12% increase in adjusted EBITDA to $328 million compared to the fourth quarter of 2024. The Timberlands segment saw a $41 million increase in adjusted EBITDA, driven by stronger domestic sales realizations in the West. The company achieved a significant milestone in its carbon capture and sequestration (CCS) project with Occidental Petroleum, indicating progress in its Natural Climate Solutions business. Weyerhaeuser Co (NYSE:WY) increased its quarterly base dividend by 5% for the fourth consecutive year, demonstrating a commitment to returning value to shareholders. The company maintained a strong balance sheet with $560 million in cash and a strategic approach to capital allocation, including share repurchases and dividend payments. The Southern Timberlands segment experienced a $3 million decrease in adjusted EBITDA due to stable log markets and muted sawlog demand. The OSB segment saw a $4 million decrease in adjusted EBITDA, affected by elevated channel inventories and slower building activity. Engineered Wood Products faced a $16 million decrease in adjusted EBITDA, impacted by a multi-week outage at the MDF facility due to a fire event. The company anticipates a $15 million decrease in second-quarter earnings and adjusted EBITDA for the Timberlands business due to seasonal cost increases. Weyerhaeuser Co (NYSE:WY) faced challenges in the housing market with a softer-than-expected start to the spring building season and cautious homebuilder sentiment. Q: What are you hearing about lumber demand as we enter the building season, and how might tariffs impact order patterns? A: Devin Stockfish, CEO, noted that overall lumber demand is steady, though not as strong as anticipated. Builders' confidence has waned, but supply and demand are balanced due to capacity reductions. There is uncertainty around tariffs, particularly on Canadian lumber, which could affect order patterns. Southern yellow pine is gaining interest as a substitute for SPF lumber due to these dynamics. Q: How do you see the outlook for Engineered Wood Products (EWP) pricing and volume going forward? A: Devin Stockfish, CEO, stated that near-term pricing for EWP is expected to be comparable, with volumes likely to increase in the second quarter due to seasonal building activity. The focus remains on providing value to customers, which will influence pricing and demand over time. Q: Have you adjusted your harvest profile given the softer start to the building season? A: Devin Stockfish, CEO, explained that harvest levels are set to be sustainable over time and are unlikely to change unless there is a significant recession. The company does not anticipate any changes to its full-year harvest levels. Q: Can you provide more details on the Occidental Petroleum CCS agreement and its expected impact? A: Devin Stockfish, CEO, expressed excitement about the CCS project with Occidental, noting it as a significant opportunity. The project is expected to start generating cash flows in 2029 with first injection. Specific economics are not disclosed to ensure competitive agreements in the future. Q: How might Section 232 tariffs on wood products impact timberland valuations? A: Devin Stockfish, CEO, indicated that without clarity on the specifics of the tariffs, it's hard to determine their impact. However, he does not expect a meaningful impact on timberland valuations in the near term, as these are long-term assets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
New Straits Times
23-04-2025
- Business
- New Straits Times
Fadillah: Malaysia, Turkiye to strengthen energy sector cooperation
ISTANBUL: Malaysia and Turkiye are working to move beyond an exchange of letter of intent related to energy sector cooperation, particularly in renewable and nuclear energy for power supply purposes into a memorandum of understanding (MoU). Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also energy transition and water transformation minister, said this would pave the way for cooperation between high-level officials and policymakers from both countries. He said this was among the matters discussed during his meeting with Turkiye's Energy and Natural Resources Minister Alparslan Bayraktar in Ankara on Tuesday. "We are working to upgrade this letter of intent into an MoU," he told Bernama late Tuesday night. Also present at the meeting were Malaysian ambassador to Turkiye Sazali Mustafa Kamal, Energy Transition and Water Transformation Ministry deputy secretary-general (energy) Mareena Mahpudz, and Tenaga Nasional Bhd chief of new energy Mohd Zarihi Mohd Hashim. The exchange of the letter of intent was formalised during Turkish President Recep Tayyip Erdogan's Feb 10-11 official visit to Malaysia. "The third point involves regulations and energy trading practices currently being implemented in Europe, and how they manage power trading or power generation. "The fourth is from a regulatory perspective, regarding the management of energy export and import, including expertise in grid systems, distribution, and so on," he added. Fadillah is in Turkiye for a two-day official working visit which started yesterday. He will lead the Malaysian delegation to London's April 24-25 Future of Energy Security Summit, organised by the International Energy Agency (IEA) and the United Kingdom government. According to the ministry, Fadillah's attendance underscores Malaysia's commitment, role, and achievements in addressing various energy-related issues, especially energy security and energy transition.
