Local upsets, not foreign birds to blame for industry’s plight
South African chicken producers would like you to believe that imports are threatening their business and costing jobs, but this is a classic red herring. In reality, a combination of bad luck and poor management is the reason the domestic poultry industry is battling to thrive. The real question is whether the South African consumer should be forced to bail out an industry that has failed to embrace modern production techniques and has been plagued by bad business decisions. The primary reason for the rise in chicken prices over the past 18 months is drought. Domestic soya bean production fell 31% during 2016 and prices increased by almost 40% year on year. In the same period, yellow maize prices almost doubled. For the chicken industry, where feed costs account for as much as 70%-75% of total input costs, this was unquestionably a disaster. This rise in prices has naturally seen people buy down or substitute chicken for other forms of protein where possible. Matters have been made...
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