Nicola Mawson
25 July 2007
Johannesburg — POULTRY producer Country Bird, which operates in SA, Botswana and Zambia, says it is venturing into fish farming on the back of good demand for sources of protein.
The company, which listed on the JSE in May, said recently that demand for protein was strong, and that it was confident the growth trend would continue.
CEO Kevin James says the company is investigating fish farming in Zambia and another chicken operation in Namibia.
Country Bird, which says it has cornered about 10% of the poultry market, is focusing on growing organically.
However, financial director Geoff Heath has said previously the firm sought to make acquisitions in the longer term.
The local chicken market is worth between R12bn and R15bn, and the company has said it is seeking a larger share.
While the company has also contemplated operations in South America, it has decided to focus on Africa and SA as South America is not viable, says James.
He hopes both operations will be operational within the next 18 months.
The company anticipates starting a tilapia farm on the Zambezi in Zambia and a breeding, broiler and abattoir operation in Namibia.
Alistair Lea, a portfolio manager at Coronation Fund Managers, says there is a global shortage of fish, which may make room for a viable fish farming operation.
The company's Supreme division, which is the third-largest poultry producer in SA, has capacity to grow 15%-18% before additional investment is required, says James.
Supreme contributes about 75% of the group's revenue and produces 1,1-million chickens a week, but it has capacity to produce 1,35-million chickens a week.
The Klerksdorp Abattoir -- Country Bird acquired a 37,5% stake in it in January as it sought to add beef to its protein portfolio -- is running at full capacity with "plenty of demand", says James.
Country Bird owns half of Nutri Feeds, which produces 340000 tons a year, to be increased to 660000 tons a year, it says.
Country Bird, however, sees an opportunity for growth at its feed division on the back of consumption growth.
The company says Nutri Feeds is expected to improve its net sales margin and benefit from exports.
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