Rossgro deal boosts Afgri chicken output

The acquisition of Rossgro Chickens in South Africa will push the poultry production capacity of Afgri to more than a million chicks a week. According to the group, the purchase will enable Afgri to widen the scope of chicken product markets.

Afgri, which operates grain storage and logistics for agricultural products, broiler production, animal feed and agricultural financial services, announced it has entered into an agreement with the Rossouw Group to acquire the entire business of Rossgro Chickens.

The transaction comprises the purchase of the Rossgro slaughter house and its assets. Based in Delmas (Mpumalanga), the operation processes about 350 000 birds a week. Afgri slaughters about 650 000 chicks a week.

The Rossgro acquisition follows Afgri’s recent announcement that it has bought a 35% interest in Midway Chix – a Limpopo-based breeder and supplier of day-old chickens. The hatchery has the capacity to lay up to a million eggs in one week, and can hatch close to 850 000 day-old chicks over a six-day period.

Afgri CEO Chris Venter said the latest acquisition completed the group’s consolidation of its poultry division into a fully integrated broiler producer. The increased production capacity has heightened its profile in the sector.

Venter: “The Rossgro transaction makes Afgri the third-largest processor of chickens on a per week basis, making us a more meaningful player in the industry.”

Currently, Afgri competes in the individual quick frozen (IQF) chicken market. The acquisition of the Rossgro business will enable it to pursue opportunities in the fresh chicken as well as the fast food services markets as part of the group’s plan, Venter said.