Quantum Foods, owner of Nulaid, was able to sell almost 80% more eggs in its latest financial year than in the previous one. But in late September, an outbreak of bird flu struck one of its farms.
By Carien Kruger, Senior Journalist at African Farming and Landbouweekblad
The bird flu outbreak that occurred on 25 September on a layer farm in the Western Cape led to the culling of 153 000 hens worth about R8,2 million.
South Africa’s egg producers were hit hard by the bird flu outbreaks of 2023/24, which caused severe egg shortages – especially in the northern parts of the country – and consequently drove prices up.
In a statement on the JSE news service, Quantum said egg prices had fallen by 17% in the 12 months to 30 September this year due to a higher national supply, compared with the previous 12 months. Despite this, average prices remained relatively high. The sharp increase in egg production was attributed to the recovery of its layer flock following the 2023/24 bird flu outbreaks. The national layer population has also recovered to levels higher than those of mid-2023, before the major outbreaks began.
Also read: Bird flu vaccination: 11 important questions answered
Quantum, which also produces feed, live laying hens and broilers, said its headline earnings per share for the latest financial year are expected to be 58% to 78% higher than in the previous year.
The company’s improved financial performance was supported by reduced load-shedding and higher sales of feed, day-old broiler chicks and layers. In the first six months of the financial year, there was strong demand for live layers from external customers.
Following the drop in egg prices and sporadic new bird flu cases across the country, however, some customers cancelled or postponed their orders due to increased risk.
Quantum’s full financial results are expected to be released on 28 November.
Also read: Poultry farmers anxious about high risk of avian flu
