Bairaha chicken factory suspended on an interim Court order

Operations at the Bairaha chicken processing factory in Mirigama have been suspended on an interim order issued by the Attanagalle Magistrate’s Courts on March 5 for some issues relating to the alleged discharge of treated water and emission of vapour that could affect the environment.

A senior official of Bairaha farms PLC told The Sunday Times FT that its chicken sales will not be affected by this court order that suspended production at its production facility as it has sufficient stocks. Riyal Yakoob, Bairaha executive director, said the company has enough stocks to meet demand in the traditional Sinhala and Hindu New Year in mid-April. Yakoob said their lawyers are taking action to vacate the interim order by making their submissions to the Attanagalle Magistrate’s Courts.

In a letter to the Colombo Stock Exchange, Managing Director of the company Yakooth Naleem informed that they do not expect the court's decision to have an impact on sales since they already have large stocks of frozen chicken to meet a temporary situation of this nature. He noted that none of the major activities of other farms in the group and the sales of day-old chicks will be affected as the order is only applicable to the Mirigama Bairaha chicken processing factory. "We do not foresee the court order resulting in any immediate adverse effect on the financial results of the group” he said. The Bairaha sale of chicken is around 130 tons per week and the company has recorded a profit of Rs. 23.4 million in the 4th quarter of last year. Bairaha Farms manufactures, distributes and sells pre-cooked meats, including chicken sausages, chicken meat balls, chicken sandwich slices and marinated chicken.