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South Africa’s broiler business is extra aggressive than the US’s, based on the Bureau for Meals and Agricultural Coverage’s (BFAP) new ‘Competitiveness of the South African Broiler Business’ report, after funding below the Poultry Sector Grasp Plan strengthened its effectivity and international standing.
South Africa’s feed conversion ratio averages 1,4kg of feed per 1kg of meat, in contrast with 1,55kg within the Netherlands and Germany, 1,69kg within the US, and 1,7kg in Brazil. Picture: Glenneis Kriel
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The benchmark evaluation, compiled in collaboration with Wageningen College within the Netherlands, was first performed in 2015 and up to date in 2017, 2022, and 2025. It compares the competitiveness of main poultry-producing nations: the Netherlands, Germany, Poland, the US, Brazil, and South Africa.
South Africa has persistently outperformed European producers within the evaluation whereas traditionally rating behind Brazil and the US. Within the newest evaluation, nevertheless, native producers additionally surpassed their US counterparts.
Izaak Breitenbach, CEO of the South African Poultry Affiliation’s Broiler Organisation, attributes this improved efficiency to important funding following the signing of the Poultry Sector Grasp Plan in 2019, which drove broad-based features in manufacturing effectivity.
He instructed Farmer’s Weekly that the business dedicated to investing R1,5 billion upon signing the grasp plan however exceeded this pledge by investing R2,2 billion over a four-year interval.
Effectivity features
The report discovered that South Africa achieved the bottom feed conversion ratio amongst all benchmarked nations, which means native producers use much less feed to supply 1kg of hen than their international rivals.
“Feed conversion effectivity has improved by 14,1% over the previous decade, underscoring steady developments in genetics, administration practices, and manufacturing expertise,” Breitenbach stated.
South Africa additionally recorded the shortest manufacturing cycle, averaging 31,5 days, whereas carcass weights elevated by 4,5% over the identical interval.
Enter prices account for about 70% of the price of rearing a hen, with feed the dominant driver. Nevertheless, the report famous that effectivity features have cushioned a lot of the impression of value volatility.
Though the nominal value of feed rations in 2024 was 26% increased than in 2015, the feed-related price per kilogram of hen produced rose by solely 8%, largely on account of improved feed conversion.
Whereas the price of producing hen in South Africa stays increased than in Brazil, the world’s main exporter, it’s now decrease than within the US and considerably under that of all three European benchmark nations, regardless of the numerous authorities subsidies out there in these markets.
The fee differential with Brazil narrowed steadily till 2023. Though it widened once more in 2024 on account of drought-related feed value will increase in South Africa, the long-term development factors to a strengthening aggressive place. Feed prices stay the biggest variable on this comparability, and additional enhancements in native soya bean processing are anticipated to help further features.
The price of feed and day-old chicks collectively accounts for simply over 80% of whole manufacturing prices, in keeping with international norms. The report attributed South Africa’s relative price enchancment to feed effectivity features and decrease slaughter and labour prices, which have offset increased enter and housing prices.
Working in a difficult surroundings
BFAP famous that the overview interval was marked by important headwinds. Load-shedding in 2023 elevated the price of feed milling and hatchery operations, whereas the drought in 2024 decreased maize and soya bean manufacturing, pushing feed costs above export parity ranges at a time when international costs have been declining.
The report additionally recorded the substantial impression of the 2023 outbreak of extremely pathogenic avian influenza (HPAI) in South Africa, which resulted within the culling of three,5 million broiler breeder birds (round 45% of the nationwide flock) and briefly drove up day-old chick costs. Imports of fertile eggs have been permitted to make sure continuity of provide.
Housing and capital prices rose sharply on account of increased rates of interest, whereas depreciation of the rand compounded imported enter prices.
“Regardless of these pressures, the broiler business managed to take care of manufacturing development and protect its competitiveness,” Breitenbach stated.
Trying forward
Breitenbach believes future development will rely largely on export enlargement as home demand stabilises and alternatives for import alternative diminish.
“South African manufacturing elevated by 11,8% over the previous decade, outpacing native consumption development of 8,8%. The place we produced 19,7 million chickens per week in 2019, manufacturing capability has now reached 23 million chickens per week, demonstrating our capacity to totally provide native demand,” he stated.
After a chronic interval of rising imports, which peaked in 2018 and led to the business being declared in misery, hen imports, significantly bone-in parts, have declined sharply. Volumes fell from 287 000t in 2018 to lower than 40 000t by 2024.
Whole hen imports exceeded 500 000t in 2018, however following adjustments to the tariff construction and intermittent HPAI outbreaks in a number of exporting nations, imports dropped to under 400 000t by 2024. Mechanically deboned meat, which isn’t produced at scale in South Africa, at present represents about 50% of whole imports.
Breitenbach stated South Africa at present exports about 55 000t of hen yearly. Roughly 4% is destined for the United Arab Emirates, with the rest despatched to neighbouring African nations. Inspections to allow exports to the UK have been finalised, and the business is awaiting the result, whereas inspections for entry to the EU and Saudi Arabia are pending.
One other prerequisite for future development is wider entry to HPAI vaccines. Breitenbach defined that present biosecurity and monitoring laws are too restrictive and have to be relaxed to allow broader uptake. On the time of writing, Astral was the one firm permitted to vaccinate, and solely on a single farm.
Uneven regulatory remedy
Breitenbach criticised what he described as inconsistencies in how authorities applies vaccination programmes throughout livestock sectors.
“Foot-and-mouth illness [FMD] vaccinations are being carried out with out a clearly outlined vaccination and surveillance protocol, whereas the poultry business struggles to barter extra sensible and inexpensive guidelines than these at present imposed by authorities,” he stated.
There may be additionally particular and accelerated registration for vaccines in opposition to all three recognized FMD strains. For poultry, solely vaccines for the H5 pressure of HPAI have been registered, with no approvals but for H7 or H9, each posing a fabric danger to the native poultry business.
Breitenbach additionally highlighted the disparity in monetary and logistical help. “State veterinarians are being deployed to help cattle farmers with vaccination, and funding of about R1,8 billion is reportedly being sought to help the cattle business.
“Poultry producers, nevertheless, are anticipated to hold the complete price of vaccination, surveillance, and the employment of animal well being technicians.”
The difficulty, he stated, just isn’t opposition to regulation however the danger that uneven and impractical guidelines might erode the very competitiveness the business has labored to rebuild.
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