South Africa: Fresh chicken is now a ‘luxury’

Published 2023년 3월 30일

Tridge summary

The cost of chicken production in South Africa has risen, leading to a potential increase in retail prices that could benefit farmers but hurt consumers. Despite high raw material costs like maize and soya, the poultry industry has seen growth, becoming more globally competitive. However, high input costs have made it difficult for farmers, particularly small-scale ones, leading to price increases that reduce affordability. Prices are currently slightly suppressed due to lower consumer disposable income, but are expected to increase in the future, with a slight improvement during the Easter weekend and a more significant one from September to December, subject to raw material price fluctuations.

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

Original content

The cost of producing South Africa’s favourite meat, chicken in particular, has increased. Increased production costs have subsequently spilt over to retail shelve prices, forcing low-income earning consumers to buy cheaper, frozen chicken cuts. While prices remain slightly suppressed, experts cautiously predict that the cost of chicken could increase in the months ahead. If so, this spells good news for farmers, but not so much for consumers. South Africa’s poultry industry finds itself in a two-pronged situation. According to Izaak Breitenbach, president of the South African Poultry Association (SAPA), in the long term, the gross value of the industry has increased and thus remains globally competitive. However, in the short term, the industry is in distress and losing money. “[This is because] raw material prices are at an all-time high, mainly maize and soya,” Breitenbach explained. The gross value of the industry increased from R47bn in 2019 to R59bn in 2022, indicating that ...

Source: Foodformzansi