Quantum Foods is a diversified feed and poultry business that provides quality animal protein to selected South African and African markets.

The Group is listed on the JSE main board in the “Farming and Fishing” sector under the share code QFH.

Quantum Foods has fully integrated egg and broiler businesses with access to superior genetics in both fields. The Feed Producing Unit has state-of-the-art manufacturing facilities and a strategic alliance with an international company to ensure cutting edge technology transfer.

Quantum Foods’ head office is situated in the town of Wellington in the Western Cape.

The company was established as a means to benefit from the bran off-take of the Pioneer Group’s milling business – today it is a self-contained business and has four focus areas:

  • Animal Feeds
  • Farming: Layer & Broiler
  • Eggs
  • Related business in the rest of Africa

The business units of Quantum Foods include:

South African Footprint

Animal Feeds Manufacturing

Quantum Foods’ feed mills are located in Malmesbury, George, Paterson and Pretoria, where feed is sold under the Nova Feeds brand.

The Malmesbury site consists of two factories, bringing the total number of feed mills to five, with a total production capacity of approximately 62 500 tons per month (2017: 60 000 tons). These mills are highly automated and are equipped to manufacture a wide variety of feeds for optimal animal nutrition. Integrated quality and safety systems are in place at all mills to ensure the consistent output of high-quality products for livestock consumption. Projects to increase the production capacity at the Olifantskop feed mill in Paterson and the Pretoria feed mill are in progress and expected to be completed by July 2019. These projects will add a further 9 700 tons per month to the Group’s total production capacity – a 16% increase. Nova Feeds has extensive expertise in the production and formulation of feeds for monogastric livestock (such as poultry) and ruminant livestock (such as cows). The main feed categories include poultry (broiler and layer), dairy, pig, ostrich and sheep feed.

Feed is supplied to the integrated poultry farming operations and the external feed market. Dairy feed represents the largest component of external sales, followed by poultry, pig, ostrich and sheep feed. Nova Feeds is the leading supplier of dairy feed in the Western Cape and Eastern Cape, and supplies feed to several of the country’s leading dairy farmers.

Farming

Layer Farming
Quantum Foods owns the rights to import pedigree grandparent layer stock of the Lohmann breed, as well as distribute next generation parent stock, exclusively in South Africa and non-exclusively to some southern African countries.

Day-old parent chicks are reared and placed on the Group’s parent layer farm near Bronkhorstspruit as well as on a rented facility in KwaZulu-Natal. Fertile hatching eggs are incubated at the Group’s commercial hatchery in Bronkhorstspruit, Gauteng, which has a current capacity to produce 8.3 million day-old pullets per annum. These female day-old chicks are either sold or placed on the Group’s six commercial rearing farms. The expansion of the Highveld layer hatchery is under way and will increase production capacity by 24% to 10.3 million chicks per year. Bergvlei Chicks is the sales brand under which layer parent stock, hatching eggs, day-old pullets and point-of-lay hens are sold. The Group distributes nationally and into Botswana, Mozambique, Angola and Swaziland – with strategically located commercial rearing farms ensuring extensive distribution coverage. The Group owns 13 and rents two commercial layer farms on which an average of 5.6 million dozen eggs are produced per month (2017: 6.0 million). The farms are located in the Western Cape, Eastern Cape, Free State, Gauteng and North West. Free-range eggs are produced on two of the farms. The Group procured approximately 0.4 million dozen eggs per month from contract farmers (2017: 0.6 million). This equates to a total of 857 million eggs per year (2017: 921 million).

Broiler Farming
Quantum Foods owns the rights to import pedigree grandparent broiler stock of the Cobb500 breed, which supplies next-generation parent stock for its own requirements and non-exclusively for some customers in other countries in Africa.

Day-old parent stock is placed on the three parent rearing farms in the Western Cape and, thereafter, on six parent layer farms. Of these six farms, four are owned by the Group and the remaining two are contracted farms that supply the Group with fertile hatching eggs.

Day-old commercial broiler chicks are produced at three hatcheries. The expansion of the Hartbeespoort broiler hatchery was completed in 2018. This resulted in a 33% increase in production capacity at this unit – from 280 000 to 373 000 chicks per week. Following the capacity expansion at the Hartbeespoort hatchery, Quantum Foods’ three hatcheries have an annual capacity of 63.8 million day-old chicks (2017: 60 million).

The day-old chicks are transferred to commercial Company-owned and contract-grower broiler farms, with the balance sold to the open market.

The Group supplied abattoirs in the Western Cape and Gauteng with approximately 834 000 live broilers per week (2017: 833 000), with the majority supplied to Astral and Sovereign Foods in terms of long-term supply agreements. This supports the alignment of the Group’s broiler value chain and growing position as a significant contract grower of broiler livestock in South Africa.

The Group sells broiler hatching eggs and broiler day-old chicks to the market under the Bellevue Chicks brand to ensure that its broiler breeder production capacity is utilised efficiently and in support of the strategy of increasing livestock sales.

Eggs

Eggs are processed at six grading and packing facilities located in the Western Cape, Eastern Cape, Free State, KwaZulu-Natal and Gauteng.

The eggs are distributed nationally as graded, ungraded or in liquid form. Graded eggs are sold under the Nulaid, Safe Eggs and dealer-own brands. Ungraded eggs are sold mainly under the Quantum brand.

Graded eggs are sorted in the packing facilities according to weight (for example, medium, large, extra-large and jumbo). Fresh and pasteurised liquid eggs are produced in egg breaking plants, where the shells are removed from the product for sale. Fresh and pasteurised liquid eggs are predominantly sold to industrial customers.

Quantum Foods’ pasteurised eggs are produced at the grading and packing facility in Gauteng and distributed to other provinces through the Group’s packing facilities.

African Footprint

Quantum Foods has played a part in growing business in Africa since 1996. We have sold poultry livestock in Namibia, Botswana, Malawi, Angola, Zambia, Uganda and Tanzania. Today, Quantum Foods are actively running businesses in Zambia, Uganda, and Mozambique.
Quantum Foods Zambia
Zambia

Quantum Foods Zambia commenced operations in 1997. Operations are conducted in two regions in the country, namely Lusaka and the Copperbelt.

In Lusaka, there is a parent breeding facility, a hatchery and a feed mill. The Lusaka facility produced 1.5 million Lohmann day-old pullets (2017: 1.4 million) and 1.8 million Cobb500 day-old chicks (2017: 1.6 million) per annum. The Lohmann day-old chicks are supplied to the Chingola layer rearing farm and for external sales. The feed facility produced 2 352 tons of feed (2017: 3 560 tons). A new feed mill was built on the Lusaka farm in 2018 to improve quality and enable the Group to enter the external market with feed produced in a modern facility.

Quantum Foods Zambia’s major egg operation is located near Chingola in the Copperbelt and operates under the Mega Eggs brand. At this location, 84 million eggs are produced per annum (2017: 85 million) and more than 12 900 tons (2017: 13 000 tons) of feed is produced for consumption on the farm and for sale to external customers.

The expansion of the Mega Eggs farm in Zambia was approved in 2018 and will increase production capacity on the farm by 15%.

The distribution capacity of the Zambia business was enhanced during the year with the opening of an additional nine small retail shops that sell eggs, dayold chicks and feed. The total number of retail shops at the end of 2018 was 30 (2017: 21).

Quantum Foods Uganda
Uganda

Quantum Foods Uganda commenced operations in 2000.

The business operates three facilities located near Kampala, and a commercial rearing and layer-egg farm in the Masindi area, north-west of Kampala.

The Kampala sites comprise parent breeding facilities and a hatchery. The Kampala site produced 1.4 million Lohmann day-old pullets (2017: 1.1 million) and 1.6 million Cobb500 (2017: 1.3 million) day-old chicks during the reporting period. The Lohmann dayold chicks are either transferred to the Masindi layer rearing farm or sold to external customers.

The Masindi farm, which includes a feed mill, layer rearing and egg laying facilities reached full production during June 2017. The facility produced 17 million eggs (2017: 11 million), and 4 596 tons of feed during the year (2017: 2 460 tons). The expansion of the Masindi egg farm in Uganda was approved in 2018. The expansion will increase production capacity on the farm from 60 000 layers to 100 000 layers.

Quantum Foods Mozambique
Mozambique

Quantum Foods Mozambique acquired a layer farm in Maputo in September 2016. The farm produced 25.7 million eggs in the past year (2017: 25.0 million). The increase was due to improved production on the farm following increased management focus on farming practices and the completion of a project to upgrade the egg-laying facilities.

Feed is procured from a third party, and the farm is stocked with point-of-lay birds that are produced by the Group in South Africa. Eggs are sold under the Galovos brand with the majority of sales in the formal retail market.