South Africa's RCL Foods Culls 410,000 Chickens Amid Bird Flu Outbreak
South Africa's RCL Foods culls 410,000 chickens amid bird flu outbreak Sept 28 according to (Reuters) - South Africa's RCL Foods (RCLJ.J) said on Thursday its poultry unit Rainbow has culled 410,000 chickens due to the country's worst outbreak of avian flu, heightening fears of chicken meat and egg shortages.
The Highly Pathogenic Avian Influenza (HPAI) outbreak, a bird flu that spreads rapidly in an infected flock, causing a high death rate, has already impacted table egg supplies in the country. Producers have warned of chicken meat shortages in the coming weeks. Rainbow is one of South Africa's largest chicken producers, supplying retailers and fast food businesses.
"The outbreak has rushed, and the
situation is constantly evolving. To date, an estimated 410,000
birds have been culled, resulting in an estimated $
the financial impact of 115 million rands ($5.99 million)," RCL Foods said in an update.
The company said it took steps to avert supply disruptions, but "there is tension in the supply chain."On Wednesday, neighbouring Namibia suspended poultry imports from South Africa, citing the bird flu outbreak. However, South Africa only exports between 1% and 2% of its production, according to the country's poultry producers' association.
Last week, RCL's peers, including the country's largest integrated poultry processor Astral Foods (ARLJ.J) and Quantum Foods (QFHJ.J), said the bird flu outbreak was ravaging a sector that was already burdened by South Africa's electricity crisis and rising costs.
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