(Ecofin Agency) - South African firm RCL Foods will cut 1,350 jobs at its Hammersdale plant, in the Kwazulu-Natal province, said the Scott Pitman, head of the firm’s consumer division.
Pitman said the firm’s decision was driven by cheaper poultry imports, from the European Union, Brazil, and the U.S. mostly, which forced it to reduce prices of its products in the local market, regardless of production costs. This pulled RCL Foods’ annual profit down 12.2%, amid market poultry oversupply.
Mr. Pitman added that the firm will, in addition to cutting jobs, halve its production in the province.
It should be recalled the RCL Foods is not the only firm in South Africa to lay off its workers. Astral, the country’s leading poultry company also did this year. Reuters reports that South Africa has imported about 288,000 tons of poultry in the first half of 2016.