Quantum Foods, which owns the Nulaid brand, reported an impressive improvement in performance, with egg supply increasing by 70% compared to the same period last year. This boost came after the company recovered from South Africa’s worst bird flu outbreak in 2023 and 2024, which cost them R37 million. The company benefitted from high egg prices, no load shedding, and stable feed costs, which contributed to better trading conditions. Despite these gains, Quantum Foods remains cautious about the ongoing threat of bird flu, which continues to affect global poultry markets, including in the US, Europe, and North Africa.
The government’s strict regulations on voluntary vaccination have made it difficult for local producers to protect their poultry. No producers, as far as Quantum is aware, have been able to successfully vaccinate their birds. The South African Poultry Association (SAPA) has also pointed out that many farmers are struggling with both the high cost and complicated process of vaccination. As a result, the company is taking steps to limit exposure by reducing the number of birds in high-risk areas and sourcing eggs from geographically diverse farms.
Despite the risks, Quantum Foods has maintained a strategy to protect its operations and is optimistic about future growth. The company’s feed business also saw a 21% rise in volumes, and the broiler farming business showed a 6% increase in day-old chick production. Markets in Africa performed mixed, with challenges in drought-stricken Zambia but stable operations in Mozambique. Overall, while Quantum Foods is experiencing positive growth, the looming threat of bird flu remains a significant challenge for the business.