Quantum Foods reports higher half year profit as South Africa poultry sector recovers

SOUTH AFRICA – Quantum Foods has reported stronger first-half earnings for 2026 as poultry demand improved across Southern Africa and feed costs eased following better grain harvests in the region.

The poultry producer, which operates businesses in South Africa, Zambia, Uganda, and Mozambique, said improved farming performance, lower maize prices, and higher sales volumes helped lift profitability after several difficult years marked by avian influenza outbreaks and elevated operating costs.

The company, which supplies eggs, animal feeds, broilers, and day-old chicks, processes more than 45 million birds annually through its regional operations, making it one of Africa’s largest poultry producers.

The financial recovery comes as South Africa’s poultry sector continues to rebuild after repeated outbreaks of Highly Pathogenic Avian Influenza disrupted production and forced producers to cull large numbers of birds in recent years.

Quantum Foods previously recorded significant losses linked to bird flu outbreaks, including an incident at a Western Cape facility in 2025 that destroyed birds valued at more than US$434,000 (about R8 million).

Feed costs ease

The company said lower grain prices played a major role in improving margins during the six-month period, as feed remains the largest expense for poultry farmers and can account for up to 70% of total production costs.

Improved maize harvests across Southern Africa reduced pressure on feed markets after several years of drought conditions, and global supply chain disruptions pushed input costs sharply higher.

Industry projections indicate South Africa’s chicken meat output could reach nearly 1.68 million tonnes in 2026 as poultry populations recover and feed markets stabilise following earlier disease-related disruptions.

Poultry remains the most consumed animal protein in South Africa and accounts for close to 60% of the country’s total meat consumption.

Quantum Foods also reported improved operational performance in its broiler business, as higher day-old chick volumes and better hatchery management helped return the division to profitability.

The company added that investments near its Hartbeespoort hatchery reduced transport costs and improved distribution efficiency in its chick supply operations.

Meanwhile, the feed division recorded stronger earnings due to improved cost controls and higher production volumes, while operations in Zambia and Uganda benefited from stable feed prices and fewer electricity supply interruptions.

Second half concerns emerge

Despite the stronger first-half results, the company warned that poultry demand could weaken during the remainder of the financial year as inflation, rising fuel costs, and lower household spending continue affecting consumers across African markets.

Quantum Foods also reported weaker trading conditions in Mozambique, where lower egg prices and economic instability reduced consumer purchasing power.

The company further cautioned that avian influenza remains a major risk to poultry producers across Southern Africa despite tighter disease-prevention measures and improved biosecurity systems.

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