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Rising Poultry Imports Hinder South African Producers

7 January 2020 – South Africa’s poultry and egg sector faced a range of hurdles in 2019, including avian flu outbreaks and increased competition from foreign importers.

According to a report by global research company Research and Markets, the bird flu epidemic had a devastating effect on the local industry, particularly the cost of conducting business due to cheap poultry imports.

“The industry suffered numerous casualties during the avian flu outbreaks, which were exacerbated by increased competition from imports – the industry continues to consolidate,” the report stated.

“The greatest challenge to local producers remains surging imports, with Brazil replacing avian flu-impacted European exports.”

South African has been flooded with ‘dumped’ or cheap chicken meat from Brazil which is sold locally below the foreign cost of production, outpricing local producers who cannot compete.

Furthermore, the rising costs of feed, transportation, energy and labour have put further pressure on local producers who are failing to keep up with foreign importers such as Brazil and the United States. Source (F&T Weekly)