COMPANY COMMENT
Astral’s plague of woes plays havoc with profit
Chicken producer says trading in the first quarter ended December 2016 has been hit by weakened consumer spending
Astral says the pain will continue well into 2017. The domestic chicken industry has also complained that the dumping of cheap chicken imports by the EU has bitten deeply into profit. If that were not enough, Astral says its electricity supply will stop on or after February 22 after Lekwa Local Municipality in Mpumalanga was given a deadline by Eskom to make outstanding electricity payments. Lekwa started defaulting in 2013. Astral says it is a fully paid-up client of the municipality and will take legal action if necessary. It seems unbelievable that Eskom and municipalities can threaten business — big, medium and small — which also has to cope with poor trading conditions. Astral’s largest feed-milling and poultry-processing operations are in Standerton. Astral CEO Chris Schutte says that if the power is cut, 11.5-million chickens will not be fed. That puts 4,115 jobs at risk. Astral sold less chicken by weight, mainly as a result of SA’s new brining regulations. These restrict th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.