South Africa-based AFGRI Foods posted 5% growth in volumes for both its poultry and animal feed divisions in the last six months of 2010 compared with the same time period in 2009, according to reports.
The growth in poultry volumes represented the realization of the greater processing capacity at the company's Daybreak plant, while the growth of the animal feeds division was partly attributed to the commissioning of a new feed mill in Pietermaritzburg. "While margins were maintained at animal feeds, the lower maize prices, following the large crop, resulted in a lower cost of feed for the poultry division," said the report. "Poultry prices remain depressed, on average 10% below the prices of two years ago, but slightly higher than 2009 for selected products. As such, the poultry division has returned much improved results for the six months under review. The poultry division has also produced a notably improved on-farm performance when compared to the prior year."
In total, the company's foods segment generated a profit before tax of Rand 93 million, a 16.3% increase on the Rand 80 million in 2009.