AUDITED CONDENSED CONSOLIDATED FINANCIAL ... - AFGRI

Foods segment – overall environment
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• Record high raw material prices
• Specifically maize and soya beans
• Imports continue
• South African poultry industry lodged anti dumping case with ITAC
• Challenged by Brazil
• Brazil accounts for ± 95% MDM chicken and 45% whole chicken imports
• Effect of imports on the SA Poultry industry
• Equivalent of 5m chickens per week imported
• Equates to approximately 12 900 potential jobs (excluding jobs in grain
production and other suppliers)
• Rapid rise in imports - collectively single largest supplier to the market
• Transformational opportunity for contract production being lost
• Poultry industry under severe pressure
• Brine volumes remain unresolved
• Restructuring in the industry continues
Source: SAPA
Animal Protein
• Animal Feeds
• Maize price increased year-on-year by 21%
• Perpetuation of external market factors
• External customers under pressure
• Milk farmers reducing herd size
• Continually assessing improved technology to reduce costs
• Poultry
• Increased raw material price – continues to impact margins
• Feed price increase by 17% year-on-year
• Net Sales Value (NSV) increased by 7% year-on-year
• Imports increased by 40% year-on-year
• Internal efficiency factors a huge focus area
• New management expertise making a visible difference
• Implementation of Ross breed to be completed early 2013
• Objective review of all efficiencies
• Continued focus on cost reduction
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Audited condensed consolidated financial results for the year ended 30 June 2012 and cash dividend declaration