In Brief Let them eat chicken
A quick breeze through the manufacturers who make up a big chunk of this great industry we call home. First up, Tiger Brands, which has just got the nod to register (if that’s what you do) a secondary listing on the exciting new A2X Markets Exchange, enabling its shareholders to capture the advantages of A2X’s lower cost structure, narrower spreads and added liquidity. This will not affect its issued share capital per its primary listing on the dear old Johannesburg Securities Exchange (JSE). Moving on, Quantum Foods has issued a trading update to the effect that HEPS are likely to fall by as much as -42% for the year through December, in the face of a bird flu outbreak, aggressive competition and rising input costs. And sticking with the poultry industry, all our local producers – Quantum included – are waiting in nervous anticipation for the government’s progress report on the Poultry Master Plan, which will provide clarity on a number of issues facing the industry, primary among them the fate of the anti-dumping legislation local producers want to protect them from the depredations of producers from India, Brazil and Spain, inter alia.
Comment: South African poultry has long been the sacrificial pigeon on the altar of international trade agreements. It’s a huge industry here, employing millions of South Africans, and feeding tens of million more. It deserves better from the Government.