Following months of halted operations at Daybreak Foods, there seems to be light at the end of the tunnel with the Public Investment Corporation (PIC) approving R150 million in funding.
Tebogo Maoto, senior business rescue practitioner for Daybreak Foods, said the business rescue has made a pivotal shift toward operational stability and long-term sustainability at the breeder and hatchery farms, restoring stakeholder confidence and implementing a turnaround strategy.
“The business rescue practitioners (BRPs) have collaborated closely with management and maintained ongoing engagement with the NSPCA to protect animal welfare and ensure compliance with all regulatory requirements.
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“The NSPCA’s approval for the replenishment of the parent flock (day-old chicks) underscores a relationship built on mutual trust and a shared dedication to animal welfare. Daybreak is fully compliant with the recent court ruling and consistently upholds the highest standards of care and ethical practices throughout its operations,” Maoto said.
Resuming operations and protecting jobs
Maoto said the capital injection has empowered the company to resume essential operations, including feed supply, infrastructure maintenance, and replenishing key livestock.
“The funding not only addresses immediate operational needs but also reinforces Daybreak’s commitment to fulfilling its long-term responsibilities to employees, suppliers, and customers.
“A key milestone is also the most immediate and tangible outcomes of the business rescue process have been the preservation of approximately 500 jobs at Daybreak’s breeder farms and hatchery. This achievement underscores the company’s commitment to protecting livelihoods and maintaining continuity in rural communities that depend on Daybreak’s operations,” Maoto said.
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He said the business rescue plan was scheduled for publication this month, and it aims to strategically address both the social responsibilities and the commercial challenges that the company faces, thereby facilitating a pathway to financial stability.
“The proposals will deal with the manner in which the company will reactivate certain of its other divisions in a sustainable and cost-effective manner.
“Daybreak remains focused on rebuilding with transparency, accountability, and compassion. The company is confident that with continued support from stakeholders and partners, it will emerge stronger and more sustainable than ever before,” he said.
Small-scale poultry farmers struggle
Mpumalanga poultry farmer Gwen Mogapolodi said the industry is facing harsh challenges, and having bigger operations like Daybreak Foods going through business rescue is not inspiring confidence in the smaller-scale operations.
“While there are issues that one might not be familiar with, the sector is facing huge challenges. To break the ceiling as a small-scale farmer in the poultry industry will take forever. Government funding and help are needed; however, there needs to be a change of mindset when it comes to local producers.
“We need legislation that will protect local producers. Such legislation will not only protect farmers but also safeguard the same jobs that we are trying to create. If we, as local producers, cannot be protected, we might as well close our operations. We need to be genuine with what we do in the agricultural space,” she said.
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