The company assured that measures are being implemented to mitigate supply disruptions, although it acknowledged the presence of tension within the supply chain.
In response to South Africa’s most severe outbreak of Highly Pathogenic Avian Influenza (HPAI), poultry division of RCL Foods, Rainbow, has taken the distressing step of culling 410,000 chickens, heightening concerns over potential shortages of chicken meat and eggs.
HPAI is a swiftly spreading strain of bird flu that leads to a high mortality rate within infected flocks. This outbreak has already impacted the availability of table eggs in the country, with industry experts cautioning of an imminent scarcity of chicken meat in the weeks ahead.
Rainbow, one of South Africa’s major chicken producers serving retailers and fast-food establishments, provided an update on the situation, stating, “The outbreak has moved at a rapid pace, and the situation is constantly evolving. To date, an estimated 410,000 birds have been culled, which has resulted in an estimated financial impact of 115 million rand ($5.99 million).”
The company assured that measures are being implemented to mitigate supply disruptions, although it acknowledged the presence of tension within the supply chain.
Neighboring Namibia, in response to the bird flu outbreak, recently suspended poultry imports from South Africa. It’s worth noting, however, that South Africa only exports a modest 1% to 2% of its production, as indicated by the country’s poultry producers’ association.
Last week, fellow industry players including Astral Foods, the largest integrated poultry processor in the country, and Quantum Foods, revealed that the bird flu outbreak was exacerbating an already struggling sector. South Africa’s poultry industry has been grappling with challenges stemming from the nation’s electricity crisis and escalating operational costs.
As the situation continues to develop, authorities and industry stakeholders are diligently working to contain the outbreak and stabilize the poultry sector, which plays a crucial role in the country’s food supply chain.
RCL Foods is a South African consumer goods and milling company. Founded in 1960 as Rainbow Chicken Ltd, the company has its headquarters in Westville near Durban, and employs over 20,000 people. RCL is 77.7% owned by the South African investment firm Remgro.
RCL Foods is one of South Africa’s leading food manufacturers, producing a wide range of branded and private label food products in multiple categories.