Quantum cries foul over feed costs, but it has room to grow
The falling price of eggs hurt the poultry producer, but the company has little debt and is churning cash
Food and poultry company Quantum (https://www.sharenet.co.za/v3/quickshare.php?scode=QFH), which was unbundled from Pioneer Foods (https://www.sharenet.co.za/v3/quickshare.php?scode=PFG) in 2014, has once again lamented the combination of falling egg prices and rising feed costs.
In the six months to the end of March, egg prices declined by 14.1%. And according to a trading update, released on Monday, the trend is set to continue for the rest of the year.
This represents a rude reversal of fortunes because in the 2018 financial year, the egg business was strong – largely thanks to the outbreak of avian influenza, which substantially boosted egg prices...