CEO Chris Schutte said the conditions were a "perfect storm" which the company had no control over‚ although Astral had performed "slightly better" than its local competitors.
The group reported that profits were "severely affected by lower profitability in the poultry segment‚ in spite of improved profits reported from the feed segment".
Revenue was up 13% to R8.16bn from R7.23bn in the previous financial year‚ due to higher sales realised by both the poultry and feed segments.
However the group's operating profit reduced by 29.3% to R477m‚ with the operating profit margin at 5.8%‚ down on the previous year's 9.3%.
A final dividend of 336c per share was declared‚ resulting in a total dividend out of the profit for the year of 672c‚ compared to 810c the previous year.
Schutte said high grain prices were the result of droughts which severely brought down yields‚ and saw the price of maize increasing 42% year on year over the period.
Feed costs made up 70% of total input costs‚ and were up 24%‚ while chicken realisations were only up 5%‚ he said.
The company was "not in a position to recover higher costs" because the buying power of consumers was weak while the level of imports had risen.
While cheap imports from Brazil were still a concern‚ "the pendulum has swung towards European imports" - notably from the Netherlands which almost doubled its exports to SA.
Astral performed "slightly better" than its local competitors‚ but was not pleased with the fact that the dividend had to be cut‚ Schutte said.
Conditions for the first six months of the current financial year were expected to remain difficult with high grain prices expected until good crop yields were seen again.
Schutte said measures such as a freeze in annual salary increases were implemented to keep the group afloat.
Astral said: "Maize and soya pricing‚ as key cost drivers in feed and poultry‚ will remain at higher levels with limited ability to recover the increased production costs in a depressed consumer market‚ exacerbated by high levels of poultry imports and an imbalance in supply and demand."
An analyst‚ who declined to be named in line with his company's policy‚ said it had been "very tough for poultry producers" with excess supply locally‚ as well as a high level of imports‚ "high and rising input costs"‚ and weak local demand.
He added that Astral was "a well-managed company and has managed to do OK" in a highly competitive market.
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