Daybreak Foods receives US$4.3M funding while facing court orders over animal welfare crisis

SOUTH AFRICA – The Public Investment Corporation (PIC) has provided Daybreak Foods with approximately US$4.3 million (R74 million) to temporarily address feed shortages and unpaid employee wages.

Despite this financial support, the Gauteng High Court ruled that Daybreak remains legally responsible for the well-being of its animals and cannot use the funding as an excuse to neglect their care.

The National Council of SPCAs (NSPCA) criticised the company for relying on the funding to claim resolution of issues while failing to improve animal welfare standards.

The court noted that Daybreak’s management has deteriorated, with financial mismanagement being a serious problem affecting operations.

Alerted by a whistleblower, the NSPCA described the situation at Daybreak’s breeding farms as a “catastrophic welfare emergency.”

They revealed that over 594,000 breeder birds suffered from starvation, cannibalism, and neglect due to chronic underfeeding and cruel culling.

This situation led to the inhumane killing of 350,000 broiler birds.

Senior NSPCA inspector Nazareth Appalsamy called the crisis a collapse of basic ethical farming standards.

The court mandated Daybreak to immediately stop all inhumane culling methods, provide proper species-specific feed, and suspend breeding activities until nutrition improves.

Daybreak must also submit a humane recovery plan within five working days, grant NSPCA unrestricted access to its sites, and cover NSPCA’s legal costs along with those of the PIC.

During a 12-day inspection, NSPCA teams found untrained workers employing illegal and ineffective methods to cull breeder birds.

Daybreak failed to report the worsening conditions; the whistleblower’s information was key in exposing the hidden suffering.

This animal welfare emergency coincides with broader problems in financial management and governance.

As a result, Daybreak entered voluntary business rescue on May 20, a move backed by the PIC, which owns 100% of the company through government pension and insurance funds.

Business rescue practitioner Tebogo Maoto has been appointed to lead the recovery process.

Interim Daybreak board chair Dr. Charlotte Nkuna expressed cautious optimism that the PIC’s involvement and business rescue will help protect about 2,800 jobs.

She also said she expects a viable turnaround plan for all parties involved.

Meanwhile, the Democratic Alliance (DA) has demanded an urgent parliamentary hearing amid allegations that two Daybreak directors received large payments while workers remained unpaid and the company faced financial collapse.

Izaak Breitenbach, general manager of the South African Poultry Association’s Broiler Organisation, acknowledged Daybreak’s reduced output.

He assured that other producers have filled the supply gap, preventing any poultry shortages nationwide.

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