South African poultry: 2024 was better, but not perfect

Published 2024년 11월 25일

Tridge summary

In 2023, the South African poultry industry struggled with high feed prices, loadshedding, and a severe bird flu outbreak, costing R9.5 billion and leading to the closure of many small producers. By 2024, the industry began recovering with improved conditions, leading to profit improvements for major companies and decreased consumer prices, although egg prices rose due to shortages. Efforts are underway to explore bird flu vaccinations and include chicken in the VAT-free food basket to boost sales and production, following President Ramaphosa's initiative to reduce food costs. These measures aim to reassure consumers about chicken safety and enhance the nutritional value of the VAT-free basket.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

“In 2023 the South African poultry industry faced severe difficulties, making it impossible for the sector to make any profit, maintain production or keep up with food supply,” said Izaak Breitenbach, chief executive officer of the South African Poultry Association (SAPA) in a recent interview with Plaas Media. Since 2020, poultry feed prices – the largest component of input costs – increased, peaking in 2023 and placing strain on the industry. Poultry feed accounts for 65 to 70% of the industry’s expenses. At the same time, South Africa experienced loadshedding, resulting in high diesel costs and endured the worst bird flu in its history, which alone cost the industry R9,5 billion. Breitenbach remarked: “2024 was a better year, but not a perfect year.” Over the past year, the poultry industry seems to have recovered with improved poultry feed prices and the absence of loadshedding. Major companies such as Astral Foods and Rainbow Chicken have reported improvements in profits. ...

Source: Agriorbit