The Public Investment Corporation (PIC) has confirmed that it has released R250 million in emergency funding to Daybreak Foods, a move meant to stabilise operations at the crisis-hit poultry company.
PIC steps in to rescue Daybreak Foods
This comes amid ongoing worker protests, a humanitarian crisis among staff, and growing concern over animal welfare violations at the company’s farms in Delmas, Mpumalanga.
Of the R250 million, R176 million was disbursed in February 2025. The remaining R74 million, originally earmarked for capital investment projects like new infrastructure, has now been redirected to meet Daybreak’s urgent operational needs.
The PIC says it made the allocation in order to prevent further damage to Daybreak’s business and the jobs it supports.
In a statement released on Wednesday, 7 May, the PIC said:
“We are deeply disturbed by current reports of culling and cannibalism amongst the poultry stock of Daybreak Food’s farming operations. The board and management of Daybreak are responsible and accountable for the operations and finances of the company.”
The state-owned asset manager added that any financial intervention had to align with strict governance rules and serve its mandate to protect its client investments—primarily government employee pension funds.
Still, it said it was acting urgently “to find a solution aimed at preserving the value of assets and, importantly, jobs in the company.”
The funding boost follows weeks of escalating pressure at Daybreak Foods. Workers have taken to the streets after not receiving their April salaries and only getting half their pay in March.
A letter penned by an anonymous employee said workers have been left with no food, money, or official communication from management. Some have even been evicted from their homes.
The financial breakdown has also led to devastating consequences for animal welfare. The National Council of SPCAs (NSPCA) reported thousands of starving chickens eating one another, with over 5,500 birds euthanised in just one weekend.
Criminal charges are now being prepared against the company under the Animals Protection Act.
Responding to public outrage, the company blamed its financial collapse on a failed attempt to raise funding, power failures, and outstanding debts. Daybreak confirmed it is considering applying for business rescue, a legal step companies take to try and recover instead of shutting down completely.
Despite this funding intervention from the PIC, there is still no clear answer for the workers who say they are being told to return to work without pay and have not been given any official letters of retrenchment or termination.
The Democratic Alliance has also raised alarms about the impact of the crisis on the broader poultry industry in Mpumalanga.
