South African poultry industry awaits overhaul of ineffective Master Plan

SOUTH AFRICA – The poultry sector in South Africa is anticipating huge changes to the country’s Poultry Master Plan, which has faced criticism from industry leaders since its implementation around a year ago. 

The plan, which was meant to boost the industry, has been labeled ineffective by key stakeholders, particularly the South African Poultry Association (SAPA). 

They have highlighted several urgent issues that need addressing, such as trade tariffs, illegal imports, and the potential for increasing exports.

Izaak Breitenbach, SAPA’s general manager, recently outlined the main grievances of the poultry sector and suggested steps for the proposed revisions. 

According to Breitenbach, the new master plan, created in collaboration with the government, aims to tackle major challenges, including unfair competition from the illegal importation of chicken, the inability of AgriSeta to finance training programs, and the widespread failure of farmers to vaccinate their birds against highly pathogenic avian influenza (HPAI), commonly known as bird flu.

One of SAPA’s critical demands is the restructuring of trade tariffs, especially to curb the alleged under-declaration of chicken imports. 

Breitenbach stated that importers have been accused of misclassifying chicken products to avoid paying the correct duties. 

The South African International Trade Administration Commission (ITAC) has already initiated investigations into this issue, submitting a report to the government. 

However, industry players are pushing for the rapid implementation of ITAC’s recommendations. 

Breitenbach expressed optimism that Parks Tau, the newly appointed trade minister, will prioritize this matter, following assurances from the previous minister, Ebrahim Patel, that tariff restructuring was a key concern for the current administration.

The developments in the master plan come as South African consumers have been experiencing a slower rise in poultry prices. 

Recent forecasts suggest that the annual increase in some chicken products will stabilize at around 1%, a significant drop from the double-digit price hikes seen in previous years. 

This shift is largely attributed to increased poultry production in Brazil and a stronger rand, according to the latest AgriTrends report by Absa.

While a decrease in chicken prices is not expected, Absa’s report suggests that prices will likely remain steady, with an average increase of just over 1% predicted for the year. 

This stands in stark contrast to the sharp price increases of the past two years, which have worsened overall food inflation and placed a burden on many South African households, particularly those with lower incomes.

Dr. Marlene Louw, a senior economist at Absa AgriBusiness, attributed the earlier price surges to disease outbreaks such as avian flu. 

However, Louw remains cautiously optimistic, citing lower feed costs as a potential factor that could improve producer profitability and lead to an increase in supply, ultimately reducing pressure on prices in the coming months.

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