Falling egg prices and rising raw material costs hit Quantum Foods
The poultry and animal feeds business expects the negative trend to persist for the remainder of the financial year
Quantum Foods, the Western Cape-based poultry and animal feeds business, has bemoaned rising feed raw material costs and declining egg prices, which have put pressure on its operations. In the six months to end-March, SA’s largest egg producer said the input costs, especially maize and the egg selling prices heightened volatility in its business. The price of yellow maize increased by 29.5% because of dry conditions in the maize-producing areas of the North West and western Free State, the producer of the Nulaid eggs said. “Egg prices declined by 14.1% and volumes increased by 2.9%. With egg prices declining and input costs increasing, the pressure on margins increased,” the company said. Quantum said load-shedding had an adverse effect on its feed business as more than 2,000 tons of feed had to be procured from other feed mills at higher prices. “Load-shedding also negatively affected the cost recovery in the feed mills.” The company said its businesses in the rest of Africa perf...
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