South Africa’s Astral Foods welcomes competition commission’s poultry market inquiry

SOUTH AFRICA – South Africa’s largest poultry producer, Astral Foods, is backing the Competition Commission’s newly launched Poultry Market Inquiry, calling it an important move to promote fairness and transparency in the country’s chicken industry.

The company said the investigation provides a structured way to examine how the sector functions, particularly in areas such as market concentration and access for smaller players.

Astral emphasized that the inquiry is not aimed at singling out any company for anti-competitive conduct but rather at assessing the broader market system to determine if existing practices restrict competition or limit participation.

The probe will review how vertical integration influences market dynamics, including access to key inputs like feed and day-old chicks, and how pricing and market control are distributed among major firms.

The poultry industry remains a key contributor to South Africa’s food supply and rural employment, yet it continues to face challenges such as expensive feed, import competition, and uneven access to resources.

Through this inquiry, the commission hopes to understand whether structural factors are driving these problems and to identify policy measures that can level the playing field for smaller producers.

Astral’s Chief Executive Officer, Gary Arnold, said the company will cooperate fully with the inquiry, both independently and through the South African Poultry Association (SAPA).

He noted that Astral operates within strict regulatory frameworks and is willing to share insights that could support the development of a more balanced and competitive poultry market.

Arnold added that integrated producers remain vital to ensuring a consistent food supply and employment stability, especially during periods of economic and environmental pressure.

Focus on Market Structure and Fair Access

The Competition Commission will examine the full poultry value chain, including breeding, feed production, processing, and retail.

It will also review how grower contracts are structured and whether small and emerging producers have fair access to processing facilities, abattoirs, and distribution networks.

Analysts say the outcome of the inquiry could bring greater clarity to how prices are formed and how competition is managed across the sector.

If the review leads to policy reforms, it could open opportunities for new entrants, attract investment, and create space for historically disadvantaged farmers to participate meaningfully in poultry production.

Astral noted that achieving a balance between competitiveness and efficiency remains critical for the sustainability of the industry, which provides affordable chicken to millions of South Africans and supports thousands of jobs.

The company also pointed to its ongoing measures to boost productivity, including government-approved vaccination programmes and improved biosecurity across its operations.

As the inquiry advances, producers, suppliers, and consumers will be invited to share their input before the commission issues final recommendations to improve fairness and inclusivity in the poultry market.

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