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News and analysis on the global poultry
and animal feed industries.
on June 15, 2009

Rainbow’s product range helps maintain profitability

South African company Rainbow Chicken's sales suffered at the hands of high feed costs but the company’s efforts to diversify its product range helped maintain its profitability during the recession.

South African company Rainbow Chicken's sales suffered at the hands of high feed costs but the company's efforts to diversify its product range helped maintain its profitability during the recession.

Scott Pitman, marketing and customer director, said 50% of Rainbow's sales come from the added value products sold to supermarkets.

There are plans to launch three more sub-ranges to grow its 28% market share of the chicken market, added Pitman.

However, the rising input costs have brought down Rainbow's results. Although revenue increased by 14%, its profit margin halved to 6%.

Rob Field, CFO, said he expects feed prices to be lower this year, which would help earnings.

 

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