RCL foods not surviving against imported chicken

RCL Foods which sells chicken under the Rainbow Chicken brand is selling more than half its farms in KwaZuluNatal, as it struggles against competition from imported chicken mainly from the European Union.

Managing director of the consumer division in the group, Scott Pitman said the farms situated along the N3 near Hammarsdale are mostly poultry farms but some have substantial vacant farmland areas.

Pitman said the farms have a lot of value as they are situated in the commercial corridor of Durban and Pietermaritzburg, although they will have to be rezoned by buyers if necessary.

He said the farms are being sold because the local chicken industry is in crisis due to dumped leg quarters.

The farms sold represent half of Rainbow’s farms in KwaZuluNatal, as the group has reduced the size of their chicken business by half in the province.

The group also laid off more than 1 300 people earlier this year as part of the downsizing.