COUNTRY REPORT ▶▶▶
South Africa launches poultry masterplan
BY NATALIE BERKHOUT T
he poultry masterplan takes into account several systemic and other problems in the industry. The main objectives of the plan centre on driving local demand and protecting the local industry, feed
costs (primarily maize and soya), meeting safety and veteri- nary requirements, as well as compliance to boost exports, and transformation of the South African sector as a whole. In this context, black ownership across the value chain has increased, but can be further improved.
Powering poultry growth The poultry industry is the biggest agricultural industry in South Africa, employing in excess of 100,000 people through- out the value chain. About three million birds a day are slaughtered in the country. There is room for growth, howev- er. “To do this, we will invest about R1.5 billion (US$ 10 million)
South Africa is globally competitive in the poultry industry and produces chicken at the sixth lowest price per kilo in the world. The introduction of a new poultry sector masterplan in the country, announced by the Department of Trade and Industry (DTI), aims to stimulate local demand, boost exports and protect the domestic chicken industry.
in the processing facilities in the country. A further R1.6 billion (US$ 11 billion) is to be invested in farming so that we can pro- duce these chickens. This will enable us to increase our pro- duction by 10 to 20% by the end of 2022,” says Izaak Breiten- bach, General Manager of the Broiler Organisation within the South African Poultry Association. This plan accommodates both large and small-scale farmers. The bigger farmers, about 70, who collectively produce
South Africa’s domestic chicken meat market
The South African poultry masterplan will invest in both large and small-scale farms to increase their contribution to the value chain.
Poultrymeat represents more than 60% of the total meat consumption in South Africa. For 2018, chicken meat consumption (excluding offal) is expected to be 1.88 million tonnes. The demand for chicken meat is projected to increase by only 1% in 2019 to 1.90 million tonnes. This is due to an estimated economic growth of less than 1% in 2019. A 2% increase in the demand for chicken meat to 1.93 million tonnes is forecast for 2020. South Africa’s chicken meat market – which has a predominantly lower-income consumer base – is typified by three fundamental features. The first of which is the predominant demand for bone-in (brown meat) chicken cuts rather than breast meat. Bone-in chicken cuts represent almost 60% of the total chicken meat demand mainly sold as ‘individually quick-frozen’ (IQF) pieces in the form of low price 2kg and 5kg mixed packs. Brining is the second feature. Almost all locally-produced frozen chicken con- tains brine in order to preserve and enhance the quality of the meat. The De- partment of Agriculture, Forestry and Fisheries introduced a regulation in 2016 to restrict brine content to a maximum of 15% of the mass sold. Brining levels of up to 43% had been recorded prior to 2016. The third aspect is the relatively small demand for fresh (not frozen) chicken meat which represents less than 10% of the total consumption of chicken meat in the country.
▶ POULTRY WORLD | No. 1, 2020 27
PHOTO: RCL FOODS
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