Robert Laing
Robert Laing
Farmers have enjoyed good rain so far this year, yet the shares of JSE-listed food companies are down in the dumps.
The FTSE-JSE Food Producers Index has tumbled from over 37500 in November to around 30000 now.
Nick Wentzel, the chief executive of poultry group Astral Foods, whose shares have dropped a third from nearly R155 in December to around R100, said consumers are tightening their belts.
Competing poultry group Sovereign's share has fallen more drastically - halving from around R21 at the start of the year to just over R10 yesterday.
Nearly all food shares dived after Sovereign issued a trading update last Friday, saying its earnings will be between 35percent and 45percent lower for the year ended February 29 than the previous year.
Food shares plummet
Robert Laing
Robert Laing
Farmers have enjoyed good rain so far this year, yet the shares of JSE-listed food companies are down in the dumps.
The FTSE-JSE Food Producers Index has tumbled from over 37500 in November to around 30000 now.
Nick Wentzel, the chief executive of poultry group Astral Foods, whose shares have dropped a third from nearly R155 in December to around R100, said consumers are tightening their belts.
Competing poultry group Sovereign's share has fallen more drastically - halving from around R21 at the start of the year to just over R10 yesterday.
Nearly all food shares dived after Sovereign issued a trading update last Friday, saying its earnings will be between 35percent and 45percent lower for the year ended February 29 than the previous year.