Astral speaks out on Eskom decision
“The magnitude of this decision has far reaching impacts on the community, livestock and food security at a national level.”
Astral Foods Limited (Astral), a leading Southern African integrated poultry producer, responded to the electricity interruption, saying it will interrupt their feed and poultry operations in the municipal district.
They referred to a report of Finance Minister, Mr Pravin Gordhan, where it was indicated that National Treasury will act against municipalities that have failed to settle their debt to Eskom, which could take the form of withholding national grants to non-paying municipalities that could further compound an already volatile situation.
Mr Chris Schutte, CEO of Astral, said they regard the notification of the power interruptions and potential disconnection of electricity supply to their largest feed milling and poultry processing operations as a catastrophe.
“A major part of Astral’s operations is the livestock business, thus any form of power cuts have a severe impact on the continuous supply chain of the integrated business, with dire consequences,” Mr Schutte also said.
“It must be pointed out that poultry farming requires feed, water and ventilation to be available to the birds at all times.
“The poultry processing plant which consumes large amounts of electricity requires continuous supply to run the operation as it operates on a continuous cycle with electricity required to operate machinery and refrigeration.
“The implications of the on-going power cuts cannot be mitigated and will directly lead to bird welfare issues, business interruption costs and the loss of finished product in the cold chain.
“The magnitude of this decision has far reaching impacts on the community, livestock and food security at a national level.”
Astral said they are the largest client of the Lekwa Municipality and relies on uninterrupted supply of both electricity and water to its operations and to date is a fully paid-up client and legal action against the parties responsible for placing them in this position will be taken.
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