May 27, 2009
Pioneer Foods to expand poultry business
South Africa's food giant Pioneer Foods plans to grow its Western Cape-based poultry business into a national player.
Managing Director Andre Hanekom said the group's Tydstroom broiler business could become national in the longer-term.
He said the group can either build the presence from scratch, or look to acquiring a small player. The company's egg business is already operating on a national basis.
But the immediate focus is to increase profitability in the key Western Cape market, and there are plans underway to increase capacity in the Cape Town plant, with another broiler farm expected shortly, Hanekom said.
However, the broiler business's performance was lacklustre, and was offset by a stronger performance from the egg business, Hanekom said.
Expansion for Pioneer's poultry division would make sense in view of recent developments involving Sovereign Food Investments, Afgri and Country Bird Holdings, which indicate a consolidation in the local chicken industry.
