Quantum Foods comprises three integrated business units: Nulaid (eggs and layer livestock); Tydstroom (broilers) and Nova Feeds (animal feed). The business also has broiler, layer breeding and commercial egg operations in Zambia and Uganda. Quantum Foods has, subsequent to year-end, been unbundled to shareholders and listed on the JSE as a separate entity.
The business environment in both the broiler and egg industries suffered from record high feed prices driven by high maize and soybean meal prices, negatively impacting cost push. Broiler prices were negatively impacted by imports and high levels of domestic supply, coupled to muted consumer demand.
The business returned to profitability this year with operating profit of R22 million. Contribution from the African operations increased 55% year on year as a result of favourable market conditions in those geographies. The newly acquired egg business in Zambia, Mega Eggs, performed very well.
A decision was taken to change the business model in the Western Cape in that Quantum Foods has discontinued its abattoir operations and instead has contracted the sale of live broilers to a third party.
- Engagement with the NSPCA over animal treatment concerns at one of the cull depots led to improved systems and the establishment of a regular audit of all Nulaid facilities by the organisation.
The business will focus on entrenching itself as a separate entity following the unbundling from Pioneer Foods and separate listing on the JSE.
More information on Pioneer Foods’ sustainability approach, performance and prospects can be found in the sustainability report.