Profeeds has suspended production on some of its lines and has discontinued feed supply to agents owing to shortages of raw materials.
In a letter to agents, Profeeds announced its intentions to discontinue supply of its entire feed product to agents and distributors with immediate effect.
“Due to the prevailing economic conditions and difficulties faced in sourcing adequate raw materials we are not able to meet demand to best serve you. We value our business relationship and we are working across the value chain to improve supply of raw materials and availability of finished product,” Profeeds said.
The move will impact poultry products across the board considering that poultry producers will now have to queue for the products at all Profeeds depot.
As a result of shortages of key raw materials such as maize and wheat brans and foreign currency-induced shortages in imported soya meal, minerals and vitamins, many stock feed producers have been forced to switch from on-farm feed mixing to reliance on compound feeds from stock feed manufacturers, creating an increase in demand.
Profeeds managing director Nigel Philp told Business Times that raw material challenges had affected the firm. “Raw material issues remain a big problem. Plus Grain Marketing Board is indecisive on how it will deal with the shortages going forward. Due to the challenges we have to discontinue some lines,” said Philp.
Poultry Producers Association chairperson Solomon Zawe said the discontinuing of supply to agents by Profeeds will have a minimal impact to wholesome poultry production as the producers will still have a chance to get the product at various Profeeds depots.
“There is going to be little impact on poultry producers because Profeeds has just stopped supplying its agents meaning they will now be supplying from their depots. So that means poultry producers will just go and buy at the depots,” he said.