Large South African food producer enters business rescue
Daybreak Foods, a large poultry producer operating across South Africa, has entered business rescue after facing severe financial challenges.
The Public Investment Corporation (PIC), a major creditor and shareholder of Daybreak Foods, has stated that it supports the decision to place the company under business rescue.
It added that the company can and must be rescued and that business rescue is the best path to preserve its value and potential.
It added that about 3,000 jobs and the returns on clients’ and beneficiaries’ investments are at stake.
Daybreak Foods is a South African poultry producer operating across Gauteng, Mpumalanga, Limpopo, and KwaZulu-Natal.
It was established in 2001 and has since become one of the country’s largest poultry producers, supplying fresh and frozen chicken products.
The company was originally part of Afgri, a major agricultural services group. It was an established player in South Africa’s poultry industry.
Its operations included the entire poultry value chain, from breeding and hatcheries to broiler farming, feed milling, and chicken processing.
This allowed the company to deliver fresh frozen chicken products to the local market, employing over 3,400 South Africans.
At peak capacity, the business produced nine million birds per cycle of 34 days, making it one of the largest poultry producers in the country.
In 2015, the Public Investment Corporation (PIC), South Africa’s largest state-owned asset manager, bought Daybreak Foods for R1.19 billion.
The shareholding was split evenly among the Government Employees Pension Fund (33.3%), the Compensation Fund (33.3%), and the Unemployment Insurance Fund (33.3%).
The PIC noted the acquisition aligned with its mandate to support socio-economic development and transformation through strategic investments.
The acquisition aimed to increase black ownership and participation in the agricultural sector, enhance food security, and contribute to job creation, especially in rural areas.
Trouble at Daybreak Foods

Years of mismanagement caused severe damage to Daybreak Foods and left it in a dismal financial position.
Despite attempts to turn the company around and stabilise its finances, the downward spiral continued until it collapsed.
Earlier this month, the Public Investment Corporation said it was deeply disturbed by reports of culling and cannibalism amongst the poultry stock of Daybreak Food’s farming operations.
“The board and management of Daybreak are responsible and accountable for the operations and finances of the company,” it said.
The PIC added that it continued to support Daybreak and has provided capital allocations to provide liquidity to the company and stabilise the business.
“The PIC is engaging with its clients, the Daybreak board, and other stakeholders on an urgent basis to find a solution aimed at preserving the value of assets and jobs,” it said.
It said any interventions must be aligned to the investment mandates of its clients and meet the requirements of internal corporate governance and approval processes.
On Wednesday, 20 May 2025, the Public Investment Corporation announced that Daybreak Foods entered business rescue.
It stated that the application to place the company under business rescue paves the way for the appointment of a business rescue practitioner.
This person will assist Daybreak Foods in assessing the extent of disruption to operations and produce a credible turnaround strategy.
The PIC said it will work closely with the business rescue practitioner and the board to resolve the problems and save the company.
It added that it had already undertaken several measures to stabilise Daybreak Foods, including injecting R74 million in working capital to address liquidity concerns.
“The Daybreak Foods board, together with the PIC, will fully cooperate with the business rescue practitioner to implement a sustainable turnaround strategy,” the PIC said.
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