Some Insights in South Africa’s Crisis in Poultry

A substantial shipment of 63 million fertilized eggs, ordered to counter an anticipated scarcity of chicken meat in South Africa, has recently arrived in the country. Additional batches are scheduled to enter our borders in stages until February of the coming year.

To tackle the expected shortage of poultry products caused by the bird flu outbreak in various provinces, the Department of Agriculture, Land Reform, and Rural Development has issued permits for the importation of fertilized eggs, poultry meat, and table eggs. This move follows the culling of approximately six million commercial layers and 2.5 million breeder parents during May and June. These mass cullings raised concerns about a potential shortage during the festive season, which could lead to higher prices.

In response to the situation, Minister of Trade, Industry, and Competition, Ebrahim Patel, has directed the trade commission Itac to explore the possibility of a rebate on import duties for fresh, chilled, or frozen chicken meat and edible offal. This initiative aims to bolster supplies in the market. Itac is currently evaluating stakeholder feedback, with discussions ongoing about whether the rebate should apply only to ordinary customs duties or also include recently reinstated anti-dumping duties.

Despite these efforts, there are doubts about the effectiveness of the proposed duty rebate. Izaak Breitenbach, the general manager of the South African Poultry Association, questions the logic of granting a temporary rebate when the industry and importers have already made provisions for additional supplies. He argues that such a rebate might benefit importers but may not necessarily lead to lower chicken prices for consumers.

The scarcity of eggs due to the bird flu outbreak has intensified the situation. Millions of chickens have been culled, threatening the supply of poultry meat and causing a shortage of eggs across the nation. This scarcity has prompted retailers to limit the number of eggs customers can purchase, leading to concerns among consumers, particularly those living below the poverty line. As a result, there are worries that the rising egg prices will not only affect consumers’ budgets but also impact other food products reliant on eggs and poultry derivatives.

The poultry industry, already burdened by rising costs and an electricity crisis, has been severely affected by the flu outbreak. Leading poultry producer Astral Foods reported significant losses due to the rapid spread of the flu, further highlighting the industry’s precarious situation.

In summary, South Africa is grappling with a multifaceted challenge involving egg and chicken meat shortages, rising prices, and economic concerns for both consumers and businesses. Efforts are underway to address these issues, but uncertainties remain regarding their effectiveness in stabilizing the market and alleviating the burden on the population.

Video from Newzroom Afrika Interview with Dr. Wilhelm Mare from SAVA: