Daybreak Foods Charts Steady Recovery Under Business Rescue Process

Daybreak Foods is pleased to share positive developments since the commencement of its business rescue process on the 12th June 2025. Daybreak’s business rescue has made a pivotal shift toward operational stability and long-term sustainability at the breeder and hatchery farms restoring stakeholder confidence and implementing a turnaround strategy.

The Business Rescue Practitioners (BRPs) have collaborated closely with management and maintained ongoing engagement with the NSPCA to protect animal welfare and ensure compliance with all regulatory requirements. The NSPCA's approval for the replenishment of the parent flock (Day-Old Chicks) underscores a relationship built on mutual trust and a shared dedication to animal welfare. Daybreak is fully compliant with the recent court ruling and consistently upholds the highest standards of care and ethical practices throughout its operations.

Daybreak has reached a significant milestone in its recovery with the successful acquisition of R150 million in funding from the Public Investment Corporation (PIC). This capital injection has empowered the Company to resume essential operations, including feed supply, infrastructure maintenance, and replenishing key livestock. The funding not only addresses immediate operational needs but also reinforces Daybreak's commitment to fulfilling its long-term responsibilities to employees, suppliers, and customers.

A key milestone is also the most immediate and tangible outcomes of the business rescue process has been the preservation of approximately 500 jobs at Daybreak’s breeder farms and hatchery. This achievement underscores the company’s commitment to protecting livelihoods and maintaining continuity in rural communities that depend on Daybreak’s operations.

The BR plan is scheduled for publication on August 22, 2025. This plan aims to strategically address both the social responsibilities and the commercial challenges that the company faces, thereby facilitating a pathway to financial stability. The proposals will deal with the manner in which the Company will reactivate certain of its other divisions in a sustainable and cost-effective manner.

Daybreak remains focused on rebuilding with transparency, accountability, and compassion. The Company is confident that with continued support from stakeholders and partners, it will emerge stronger and more sustainable than ever before.

Further announcements will be made in due course as appropriate.

Issued by Tebogo Maoto, Senior Business Rescue Practitioner for Daybreak Foods