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Astral, Pioneer Foods announce long-term supply agreement

Poultry producer Astral Foods has announced a long-term supply agreement with Quantum Foods whereby Quantum will supply Astral with about 550 000 broilers a week.

The agreement will see Quantum maintaining its breeding operations as well as the rearing of broilers‚ with Astral Food purchasing the broilers for further processing‚ distributing and marketing.

"The agreement will be fully implemented following fulfilment of the conditions precedent, and completion of the expansion of the facilities at County Fair which is expected to take approximately five months,” said Astral CEO Chris Schutte.

“Astral Foods’ total broiler processing capacity will increase to approximately 5 million birds per week and it is expected that the project will deliver good value to all stakeholders and provide an opportunity to protect jobs in the agriculture sector in the Western Cape."

By: armer's Weekly

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