The South African Poultry Association (SAPA) remains optimistic about 2025 despite ongoing challenges and uncertainties, with highly pathogenic avian influenza being the most pressing concern.
The domestic poultry industry is a R65-billion (€3.36 billion) strategic national asset, making it the country’s second-largest agricultural sector. It is also the largest employer in South Africa, providing jobs for almost 58,000 people across the poultry value chain.
Despite currently slaughtering 21.5 million birds per week, the industry has increased its slaughter capacity from 19.5 million birds per week to 22.5 million birds per week. However, some farms are still recovering from the 2023 avian influenza outbreaks, leading to idle capacity as farmers are cautious about potential future outbreaks and imports.
Key issues for the industry in 2025 include the rollout of vaccination programs, compensation for culling, fluctuating trade dynamics, and rising feed costs driven by currency fluctuations.
Avian Influenza Vaccination
Efforts to implement widespread avian influenza vaccination have faced challenges, with no farms meeting the stringent biosecurity protocols required for approval. This leaves the sector vulnerable to future outbreaks, especially with the current risk indicator in red.
The industry continues to urge government intervention to facilitate vaccination and compensation for farmers affected by culling.
Poultry Imports
Poultry import patterns have shifted, with an increase in total chicken imports driven by mechanically deboned meat and offal. Countries like Argentina, exempt from anti-dumping measures, have flooded the market with cheap chicken, impacting local producers.
Poultry Exports
Progress has been made in opening export markets, with inspections by the UK and Saudi Arabia expected soon. These steps are crucial for accessing new markets, particularly for cooked chicken products.
Feed Prices
Maize and soybean prices remain a concern for producers, with rising costs impacting operational efficiency. While there was some relief in 2024, challenges like energy costs and infrastructure issues persist.
A Case for VAT-Free Chicken
To alleviate financial strain on consumers and support local producers, industry stakeholders have proposed VAT exemptions for frozen chicken cuts and offal. This measure aims to make chicken products more affordable for lower-income households.
