PIC stuffs more funds into Daybreak Foods, after chicken catastrophe

NSPCA and business rescue professionals are working together to achieve what those responsible – and being paid – failed to do.


It took a public outcry and the killing of thousands of starving chickens to get people to act against years of poor management at Daybreak Foods, the large poultry producer owned by the Public Investment Corporation (PIC).

Complaints to the National Council of SPCAs (NSPCA) about starving chickens eating each other alive finally prompted intervention in April.

The NSPCA said in a statement that it has laid criminal charges against the then directors of Daybreak Foods following the “large-scale animal welfare disaster that has captured global attention”.

“In this catastrophic failure, that has sent shock waves throughout the world, more than one million birds were subjected to extreme neglect, resulting in widespread suffering and death.

“Following extensive on-site investigations, the NSPCA uncovered overwhelming evidence of gross negligence, systemic mismanagement, and a complete abdication of responsibility by Daybreak’s leadership. These failures were not only inhumane but criminal in nature, prompting the NSPCA to take legal action.

“We will now work closely with the South African Police Service and the National Prosecuting Authority to pursue justice on behalf of the animals that suffered,” says the NSPCA.

ALSO READ: Business rescue for stricken chicken producer Daybreak Foods

Business rescue

Since the recent problems came to light in May 2025, the PIC has appointed a new board of directors and pledged more than R200 million in additional funding. It said that it was “deeply disturbed” by reports of culling and cannibalism among the poultry stock at Daybreak Foods’ farming operations.

Despite being the sole owner of Daybreak Foods, the PIC quickly distanced itself from responsibility. “The board and management of Daybreak are responsible and accountable for the operations and finances of the company,” it said, adding that it would nevertheless continue to support Daybreak and has provided capital allocations to ensure the company’s liquidity.

Daybreak Foods was placed into business rescue on 20 May.

The PIC has expressed its support for the business rescue process. “The PIC is of the firm belief that the company can be rescued – and must – be rescued, and that business rescue is the best path to preserve the company’s value and potential, saving approximately 3 000 jobs, and importantly, realise returns for clients and their beneficiaries on their investment.

“The PIC has already undertaken several measures to contribute towards stabilising Daybreak Foods, which includes the injection of R74 million in working capital, that is intended to address the company’s immediate liquidity needs,” it said.

Tebogo Maoto, senior business rescue practitioner (BRP) for Daybreak Foods, said in response to questions that the BRP welcomes the PIC’s funding support, which will provide the much-needed liquidity to implement the emergency phase of company’s business rescue proceedings.

“The PIC funding will be utilised for making payments for critical operational costs, including salaries whilst the business rescue plan is being developed (to be published on 22 August 2025).

“The BRP will continue to engage with the funders and shareholder to address the additional liquidity support needed for the emergency phase of the business rescue process, and to seek a strategic equity partner.

“The BRP has taken full management control of the company and is working closely with current management in the interest of all stakeholders. The PIC, as a shareholder and lender, is not involved in the company’s operations.

“The BRP engages the PIC on a regular basis, providing updates on the status of the company’s business rescue proceedings,” says Maoto.

He says that only the hatchery and breeder operations are currently being run at Daybreak Foods, and that the proposed business rescue plan will deal with the manner in which the company’s other operations will be reactivated in order for it to reach break-even and turn a profit.

“The BRP cannot comment on the PIC’s future plans, save to state that it remains committed to rescuing the company,” says Maoto.

ALSO READ: SPCA lays charges against Daybreak Farms’ bosses

NSPCA

The NSPCA said it is currently closely involved with many aspects of Daybreak’s chicken farms and continues to monitor the situation carefully.

“The NSPCA remains actively involved. We receive weekly reports from Daybreak Foods, which include delivery notes for feed, mortality figures, and other key welfare indicators. We verify this information through physical inspections.

“We conduct on-site inspections, with additional assistance from the local SPCAs with jurisdiction over the relevant sites, to assist with ongoing oversight.

“At present, there are no immediate welfare concerns. Operations have scaled down significantly, with only the two breeder sites in Limpopo still active. While rearing has not resumed, the limited scope of operations makes oversight more manageable at this stage,” according to a spokesman for the NSPCA.

Asked if the NSPCA has insight into the purchase of food for the chickens, he says that the weekly reports provide oversight.

“However, we are aware that Daybreak is currently under significant financial strain and has a long list of creditors. While feed has been provided consistently thus far, we are unable to confirm how long this can be sustained.”

Daybreak Foods currently keeps approximately 220 000 breeder birds in two farms in Limpopo, but has submitted a formal request to the NSPCA to resume breeder operations by introducing additional breeder stock.

“We are scheduled to meet with them to discuss this proposal and assess the potential welfare implications,” he added.

That the NSPCA should agree to a private company expanding operation is, in this case, necessary – the pictures of neglected chickens prove this.

ALSO READ: Chicken farm funded by PIC fails to reverse court order against inhumane practices

Corporate spin

This reality is far removed from the corporate image portrayed by Daybreak Foods. Its website speaks of “dedication and a commitment to excellence” and describes Daybreak Foods as a prominent player in the poultry industry.

“Our journey has been marked by continuous innovation, sustainability efforts, and a focus on delivering the best to our customers. Today, Daybreak Foods stands as a testament to hard work, resilience, and a relentless pursuit of quality, proudly serving communities with products they can trust. Daybreak Foods is currently a level 8 B-BBEE contributor, and we strive to improve our score through a range of initiatives.

“Daybreak Foods is one of the largest integrated poultry producers in SA. Our core purpose is to maintain a unique position that allows us to reshape how we remain part of ‘The Great South African Family’ while growing the business portfolio. As we continue to grow, we are embracing our responsibility to drive positive change, solve problems, and make society a little better every day.

“Our values directly link the business activities to our responsibilities towards our stakeholders – including shareholders, management, employees, customers, the environment, society and government,” it says.

In reality, it couldn’t pay salaries or the monthly fee to access e-mails and related information technology services.

Hopefully, the new directors appointed by the PIC will set things right.

They seem to have the right credentials, including five agricultural and veterinary specialists – many with secondary business degrees – as well as two accountants from the PIC.

The question remains: What is wrong in SA that things must fall apart and become a public embarrassment before efforts are made to fix it? Wouldn’t it be easier to get things right the first time?

This article was republished from Moneyweb. Read the original here.