Surrey Group has scaled down on its placement and slaughter schedule and has put on hold contracts already signed with growers due to the harsh economic environment.
The situation has been exacerbated by continued load shedding coupled by a challenging operating environment.
The decision by Surrey Group to scale down on placements means some of the growers will not be able to supply for the company.In a notice to growers, Surrey said it took this decision to avoid passing on costs through the price of frozen chicken due to related extra cost incurred by these various economic challenges.
It said the harsh economic environment means the Surrey is unable to increase “your producer prices to viable levels”.
“What this translates to is that, regrettably some of you will no longer be able to grow chickens for us, until further notice. For other growers, placements will be on a reduced basis. This will apply to any contracts signed as from 8th July 2019,” Surrey Group said.
Surrey Group is a livestock enterprise, with integrated processes from paddock to plate.