South Africa’s chicken industry pushes for tariffs amid rising import concerns

SOUTH AFRICA – South Africa’s poultry sector is urging the government to impose tariffs on imported chicken, a move highlighted in the Competition Commission’s ongoing Poultry Market Inquiry.

The call comes as the country struggles to meet domestic demand for chicken, raising fears that new tariffs could push up prices for consumers already burdened by rising food costs.

By August, meat prices had increased by 11.3%, with chicken remaining the go-to affordable protein for most households.

Although Statistics South Africa does not break down chicken prices in its consumer price index, the poultry sector remains a critical part of the agricultural economy, contributing around US$3.8 billion (R72 billion) and employing about 134,000 workers.

Broiler producers argue that tariffs and anti-dumping duties are essential to safeguard local jobs and counter what they describe as unfairly priced imports.

However, the Competition Commission has warned that introducing protectionist measures could harm consumers, particularly lower-income families that depend heavily on chicken as a dietary staple.

The country’s chicken production is largely controlled by four major players—Astral, RCL, Country Bird, and Sovereign—which together account for roughly 63% of total output.

The inquiry is examining how pricing structures are set, with attention to the pattern where producers struggle during feed cost surges but rarely reduce prices when feed costs later decline.

Despite ongoing challenges such as avian influenza outbreaks and persistent power cuts, the industry has shown resilience, with weekly production reaching about 21.4 million birds in 2024.

Astral Foods, one of the major listed firms, said it intends to cooperate fully with the inquiry, clarifying that it is not focused on uncovering anti-competitive practices.

Frustration Over Stalled Master Plan

Meanwhile, the South African Poultry Association (SAPA) has expressed growing frustration with government for what it describes as a lack of follow-through on promises made under the Poultry Sector Master Plan (PSMP).

Launched in 2019, the PSMP aimed to curb import dumping, boost local output and consumption, expand export markets, and include more black-owned producers in the value chain.

SAPA Broiler Organisation CEO Izaak Breitenbach said the sector initially acted swiftly after the agreement, investing more than US$115 million (R2.2 billion) in new facilities, surpassing the original target of US$78 million (R1.5 billion).

He said this investment helped major producers expand operations, create jobs, and integrate small-scale farmers through contract farming arrangements.

Trade restrictions and bird flu outbreaks in other countries temporarily slowed dumped imports, giving local producers some relief.

However, Breitenbach noted that progress declined after the previous national elections, when oversight of the PSMP shifted to deputy ministers and implementation momentum weakened.

He added that despite repeated assurances from Agriculture Minister John Steenhuisen in 2024 and 2025, the second phase of the master plan has yet to advance in any significant way.

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