RCL Foods reports decline in feed revenue amid sugar problems
South Africa’s RCL Foods has reported weak financial results amid cheap imported sugar and a halt in pet food production due to a salmonella outbreak. According to Daily Maverick, the company’s revenue from animal feed sales fell by 20%.
Imported sugar and insurance
One of the main factors putting pressure on RCL Foods’ results was an increase in the volume of cheap imported sugar. The publication notes that the government is already responding to the situation by raising tariffs on imported sugar.
Production of the pet food range was suspended after the salmonella outbreak. In its documents, RCL Foods said it has business interruption insurance cover for such situations and is working with insurers on the final processing of the insurance claim.
More current news is available on the UA.News Telegram channel Telegram.
Rising fuel prices
South Africa’s Department of Mineral and Petroleum Resources confirmed an increase in the diesel price of about 3 rand per litre and in the petrol price of about 1.30 rand per litre. According to the publication, diesel and petrol currently each account for about half of the country’s total fuel consumption.
Business Day also reported that since the start of the problems surrounding the Strait of Hormuz, South African fuel importers have paid 54 billion rand more for fuel imports. Daily Maverick notes that these costs are a significant risk for businesses with diesel vehicle fleets. The publication also suggests that chains with sufficient capital are increasingly converting part of their fleets to electric vehicles.
