Government has done nothing to help alleviate problems caused by its own disastrous policies
22 November 2023 - 16:59
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Astral Foods, SA’s largest poultry producer, has just reported its first trading loss in more than two decades (“Astral CEO says government ‘will cut it off by the legs’”, November 20). It’s a fair bet that most, if not all, local poultry producers find themselves in a similar worrying predicament.
After years of healthy growth this strategic industry is in distress. Let’s not forget that on average South Africans consume 40kg of chicken per capita annually, and chicken is our cheapest source of protein.
Most of the distress has been caused by high feed costs, in which our perpetually weak currency plays a big role, as do persistent power blackouts over the past few years, water shortages and an outbreak of avian influenza that has resulted in millions of poultry deaths and health-induced slaughter.
Some further industry background is important. A few years ago trade, industry & competition minister Ebrahim Patel and his department proposed a national master poultry plan built about a few important pillars, the most important being the growth of local market share.
Surprisingly, importers also signed on to the plan. I cannot think of any logical reason for this other than wanting a seat at the table. Irrespective of their reasons, the plan imposes responsibilities on all signatories.
To cope with anticipated volume increases, local producers spent millions building new production capacity. What has the government done to honour its responsibilities in terms of its own master plan, and to help alleviate problems caused by its own disastrous economic policies?
As far as I can see there has been no assistance at all. On the contrary, it has been reducing import duties, the direct opposite of what it undertook in the original plan documents.
Local poultry employs about 100,000 workers, whereas importers employ only a few staff. If any of our handful of major poultry companies hits the wall, a nightmare of unemployment and hunger will follow.
I spent years fighting higher import duties, but at this point my sympathies lie with the besieged locals. Local poultry producers have high fixed costs and huge capital investments, and are thus vulnerable.
David Wolpert Sydney, Australia
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: State hasn’t backed own plan
Government has done nothing to help alleviate problems caused by its own disastrous policies
Astral Foods, SA’s largest poultry producer, has just reported its first trading loss in more than two decades (“Astral CEO says government ‘will cut it off by the legs’”, November 20). It’s a fair bet that most, if not all, local poultry producers find themselves in a similar worrying predicament.
After years of healthy growth this strategic industry is in distress. Let’s not forget that on average South Africans consume 40kg of chicken per capita annually, and chicken is our cheapest source of protein.
Most of the distress has been caused by high feed costs, in which our perpetually weak currency plays a big role, as do persistent power blackouts over the past few years, water shortages and an outbreak of avian influenza that has resulted in millions of poultry deaths and health-induced slaughter.
Some further industry background is important. A few years ago trade, industry & competition minister Ebrahim Patel and his department proposed a national master poultry plan built about a few important pillars, the most important being the growth of local market share.
Surprisingly, importers also signed on to the plan. I cannot think of any logical reason for this other than wanting a seat at the table. Irrespective of their reasons, the plan imposes responsibilities on all signatories.
To cope with anticipated volume increases, local producers spent millions building new production capacity. What has the government done to honour its responsibilities in terms of its own master plan, and to help alleviate problems caused by its own disastrous economic policies?
As far as I can see there has been no assistance at all. On the contrary, it has been reducing import duties, the direct opposite of what it undertook in the original plan documents.
Local poultry employs about 100,000 workers, whereas importers employ only a few staff. If any of our handful of major poultry companies hits the wall, a nightmare of unemployment and hunger will follow.
I spent years fighting higher import duties, but at this point my sympathies lie with the besieged locals. Local poultry producers have high fixed costs and huge capital investments, and are thus vulnerable.
David Wolpert
Sydney, Australia
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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