Chicken biz squawks at land debate
Poultry producer says it is wary of investing amid 'uncertainty'
Chris Schutte, the CEO of South Africa's largest poultry producer, Astral Foods, says plans to reinvest in the business were put on hold after President Cyril Ramaphosa said the government supported expropriation without compensation. "We were about to release some capital for reinvestment. But now I have to discuss it with my board again and say: 'There is a risk to our shareholders, what should we do?'" In spite of severe challenges facing the industry, Astral almost doubled its headline earnings to R735-million last year. It announced last week that it expected headline profit to jump by 410% in the six months to end-March 2018. Schutte says he shared the euphoria when Ramaphosa was sworn in and made positive changes to the cabinet. "Two days later you get this rude awakening of expropriation without compensation." This should be a big concern to everybody in South Africa, "not just the guy who might lose half a farm here or there", he says."It's going to cause a massive rethink ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.