South Africa’s RCL Foods has been forced to cull 410,000 chickens due to the avian flu outbreak, resulting in an estimated financial impact of R115m ($6m).
The country is now facing concerns of a potential chicken meat and egg shortage, as Namibia has already suspended poultry imports from South Africa due to the bird flu outbreak.
RCL Foods stated that 11 of its 19 sites have been affected by the outbreak, and they are constantly working to contain the spread of the virus, including collaborating with the Department of Agriculture, Land Reform and Rural Development to develop suitable vaccines.
“In addition, all necessary measures are being taken to manage and mitigate supply chain disruptions, although it is important to acknowledge the tension in the supply chain,” added the company.
Rainbow, a subsidiary of RCL Foods, is one of South Africa’s largest chicken producers, supplying retailers and foodservice businesses.
This latest setback comes as RCL Foods, which also manufactures bakery products and pet food, faces challenges from rolling power blackouts and inflationary pressures in its supply chains. The company’s annual profits have seen a significant decline of 45% year-on-year.
The South African government declared a state of emergency in February and is working towards reducing power blackouts.
