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AFGRI Buys into Full Integration

by 5m Editor
10 August 2010, at 8:20a.m.

SOUTH AFRICA - AFGRI has bought a minority interest in Midway Chix, the franchise for the Hubbard breed in South Africa.

AFGRI, the JSE-listed agricultural business, is pleased to announce that it has bought out the 35 per cent interest, currently owned by minorities in Midway Chix. Midway Chix is a breeder and supplier of day-old chickens into the poultry market, with which AFGRI has had a relationship with since April 2006.

Chris Venter, CEO of AFGRI said: "AFGRI now owns the franchise for the Hubbard breed in South Africa, making our poultry operation fully integrated from the grandparent operation, through to the parent operation into broiler production."

He added that the hatchery could set about one million eggs per week and hatch close to 850,000 day-old chicks over a six-day period per week. This hatchery operates at full capacity.

Midway Chix comprises of modern and efficient facilities that enjoy economies of scale and its farms are well designed and located to prevent diseases from infiltrating.

Mr Ventner concluded: "The minority buy-out of Midway Chix is another step in AFGRI's expansion plan to expand volumes. At the same time, AFGRI is changing the name of Daybreak Farms to AFGRI Poultry in order to create a mechanism into which all poultry related business can be housed as well as for clarity of the operational activity."