Agriculture Department to compensate local farm for poultry losses

GEORGE NEWS - The Western Cape High Court on Friday 21 June ordered the National Agriculture Department to compensate George Moerasrivier Boerdery (Pty) Ltd for massive losses suffered in the compulsory destruction of 387 352 chickens and 5 386 332 eggs in 2021 during an outbreak of highly pathogenic avian influenza (HPAI) on two of its farms.

The farm has valued its total loss at R31 892 847,63, which included manure and feed that also had to be done away with. It turned to the court after the director of Animal Health turned down its claim.

South African Poultry Association manager Izaak Breitenbach said the ruling in favour of the farm has far-reaching implications.

There were about 111 outbreaks in 2017, 2021 and 2023, with the total loss nationally in chickens that were culled and future egg losses being R9,5bn. "There have been applications for compensation in all three outbreaks and also other court cases, but the department contended that diseased and culled birds had no value and therefore no compensation was paid in all three of the outbreaks."

He said farmers can now apply for compen-sation on all three outbreaks and also future disease outbreaks. "The costs will differ from farm to farm and also depend on whether it is broiler breeders or commercial layer hens that were culled."

Moerasrivier Boerdery's first outbreak was on its farm Moerasrivier, which was placed under quarantine on 27 May 2021, after which 195 648 chickens and poultry products, including 3 199 536 chickens as well as manure and feed were destroyed.

On 8 June, avian flu was also detected on its second farm, Onderplaas, which led to the destruction of a further 191 704 chickens and 2 186 796 eggs.

Epic legal struggle

In August 2021, the farm applied to the agriculture department's director for compensation in terms of Section 19 (1) of the Animal Diseases Act. On 4 November 2021, the director rejected the claim on the basis that the infected birds and eggs had no value and therefore no compensation was payable.

Moerasrivier Boerdery then lodged an objection with the minister, who appointed a panel of senior officers in the department to conduct an investigation.

A year after the application was launched, on 2 August 2022, the panel provided its report, recommending that the minister set aside the director's decision and remit the matter for reconsideration by the director. The panel also recommended that the director consult with the farm with a view of settling the claim at a reasonable compensation value.

In possession of the minister's decision, on 17 August 2022, the farm approached the director again. Several months later, on 30 January 2023, she provided the farm with the same conclusion as on the first occasion, which led Moerasrivier Boerdery to take the matter to court.

Justice Judith Cloete ordered that the director's decision be set aside and that the farm's claim be remitted to her, and that she take into consideration that the destroyed animals and eggs will be valued on the basis that they were in a healthy state.

In her pronouncement she said the departmental policy inadequately takes account of the Act's intention to ensure cooperation of farmers in disease control measures and their continued ability to farm.

Satisfied with outcome

Moerasrivier Boerdery did not want to comment, but through their legal represen-tative, Adv André Knoetze, said they were very satisfied with the outcome. Knoetze told George Herald the farm survived and is in full production. "However, they are carrying the burden of having to make up their losses."

Knoetze, assisted by attorney Barrie de Lange, said facing five heavyweight opposing advocates appearing for the department was "like facing Goliath". "We are greatly relieved and very pleased that we persevered."

The director and minister were represented by Adv C Puckrin SC from Pretoria, Adv R Jaga SC from Cape Town as well as Advocates Nkosi Thomas SC, P Loselo and T Monene, all three from Johannesburg. They were assisted by senior state attorney Somasundrum Appalsamy.

Moerasrivier Boerdery's eggs are marketed under the commercial name of Outeniqua Eiers.