Astral Foods, South Africa’s largest poultry producer, faced significant financial challenges in the first half of the 2024 financial year. The company reported a nearly 50% drop in profit, largely due to pressure on margins in its poultry division. Higher production costs, including expensive feed, could not be passed on to consumers because of intense competition in the market. As a result, the company effectively subsidised chicken production, eating into its earnings.
Adding to its difficulties, Astral suffered a cybersecurity incident in March, which disrupted operations and cost the company around R20 million in lost revenue and recovery expenses. The breach created a backlog in production, further straining profits. CEO Gary Arnold, who took over earlier in 2025, highlighted that selling prices for poultry had fallen sharply while input costs rose, creating an unsustainable squeeze on profitability.
Looking ahead, Astral faces several risks, including the ongoing threat of bird flu, which remains a major concern for the industry. Other challenges include South Africa’s weak economic growth, rising unemployment, and potential trade disruptions, such as the country’s uncertain status under the African Growth and Opportunity Act. These factors could continue to weigh on consumer spending and the company’s performance in the coming months.