Quantum Food’s decision to exit the broiler business by selling its Hartbeespoort abattoir to Sovereign Foods appears to have been wise, judging from the two poultry groups’ results. Quantum reported on Thursday morning that it managed to remain profitable in the year to end-September, whereas Sovereign reported after the market closed on Wednesday that it plunged into an interim net loss of R36m for the six months to end-August from the matching period’s R67m profit. Sovereign said its loss was "as a result of a 15% increase in the cost of feed per tonne due to the drought, coupled with a 3% decline in net selling prices following local oversupply conditions".
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