Despite the financial support, the challenges facing the farms continue to persist.
The Public Investment Corporation (PIC) has injected R74 million into Daybreak Foods, initially intended to stabilize feed supplies and address overdue salaries as a short-term measure. However, a ruling from the Gauteng High Court has indicated that this financial assistance does not exempt Daybreak from its legal and ethical responsibilities regarding the welfare of the animals in its care.
The NSPCA (National Council of SPCAs) has criticized Daybreak, stating that the company relied heavily on the claim that the funds had resolved the underlying issues. The court emphasized that genuine and sustainable welfare interventions were still needed, pointing out the company’s failure to care for the chickens appropriately. The court acknowledged that Daybreak’s management had deteriorated, highlighting financial mismanagement as a critical concern.
The NSPCA, alerted by a whistleblower about the dire conditions at Daybreak’s breeding operations, has characterized the situation as a “catastrophic welfare emergency.” They reported that over 594,000 breeder birds were at risk of starvation, cannibalism, and neglect due to chronic underfeeding and inhumane culling practices, resulting in the culling of 350,000 broiler birds.
Nazareth Appalsamy, a senior inspector at the NSPCA, remarked on the severity of the crisis, stating that the situation represents a collapse of basic ethical standards in farming. The court order mandates that Daybreak Foods must immediately discontinue inhumane culling practices, provide appropriate species-specific feed to all birds, suspend breeding and placement of chicks until proper nutrition is assured, submit a humane recovery plan within five working days, grant the NSPCA unrestricted access to all operations, and cover the legal costs incurred by the NSPCA in conjunction with the PIC.
During a 12-day assessment of the farms, NSPCA teams discovered that untrained workers were engaged in illegal and ineffective methods of killing large breeder birds. The organization noted that Daybreak failed to report the deteriorating situation, which only came to light due to the whistleblower’s input: “Without this tip-off, the suffering of these animals would have remained hidden,” the NSPCA stated.
While the ongoing animal welfare crisis is the most visible element of Daybreak’s broader collapse, issues of financial mismanagement and inadequate governance are also significant factors. On May 20, the company entered voluntary business rescue, a decision supported by the PIC, which owns 100% of Daybreak on behalf of the Government Employees’ Pension Fund, the Unemployment Insurance Fund, and the Compensation Fund. Business rescue practitioner Tebogo Maoto has been appointed to navigate the turnaround process.
Dr. Charlotte Nkuna, interim chairperson of the Daybreak board, expressed cautious optimism regarding the intervention, emphasizing the collaborative efforts with the PIC to rescue the company and preserve approximately 2,800 jobs. She voiced confidence that the business rescue proceedings would lead to a viable turnaround plan benefiting all stakeholders.
However, the Democratic Alliance (DA) has raised concerns, alleging that two directors of Daybreak received substantial financial payments while employees went unpaid and the company faced increasing pressure to enter business rescue. The DA has requested an urgent hearing from Parliament’s Standing Committee on Finance regarding these allegations.
Izaak Breitenbach, general manager of the Broiler Organisation at the South African Poultry Association, acknowledged the reduced production from Daybreak but assured that other poultry producers have stepped in to meet demand, indicating that there will not be a shortage of poultry in South Africa.
The NSPCA continues to be present on-site to ensure compliance with the court order, but with many birds still in precarious conditions, the crisis remains unresolved.
