Watch avian flu closely
Avian influenza is appearing all over South Africa. Most recently both RCL Foods and Quantum Foods reported outbreaks that have resulted in them culling a number of birds (5% for RCL and 9% for Quantum). This has an immediate impact in the form of the loss of birds but will also hit profits down the line as breeding stock is impacted. For now, the crisis is not threatening the industry and certainly it will survive, but shareholders need to keep an eye on future outbreaks in case this does start to cripple the local industry.