Africa-Press – South-Africa. South Africa’s biggest money manager will give financial support to state-owned poultry producer Daybreak Foods after reports of birds starving to death.
The Public Investment Corp. will allocate R74 million to provide immediate working capital for Daybreak’s liquidity needs, according to an emailed statement.
The amount was initially earmarked for capital expenditure and is part of a R250 million facility that was set aside for the company earlier.
The National Council of the Society for the Prevention of Cruelty to Animals said earlier this week it had to cull more than 350,000 birds from various farms that rear them for Daybreak after they were left without feed for days, resulting in mass cannibalism.
The NCSPCA said staff at several sites had not been paid, and thousands of dead chickens were left in the growing sheds.
The state pension fund, that’s overseen by the PIC, owns a third of Daybreak. The rest belongs to the Unemployment Insurance Fund and the Compensation Fund.
The money from the PIC will be used to pay outstanding salaries for employees for April, buy feed supplies to prevent further starvation and cannibalism among Daybreak’s bird stock and specific essential operational expenses that are necessary for running the business and avoid liquidation.
“Daybreak’s leadership is tasked to develop and implement a turnaround strategy and a credible turnaround plan to ensure long-term sustainability and growth, including how the company intends to avert job losses and safeguard the welfare of the livestock,” the PIC said.
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