Despite substantial hurdles in the domestic chicken sector, the South African Poultry Association (SAPA) remains optimistic for 2025. Among these concerns are the threats connected with highly pathogenic avian influenza (HPAI), which has had a significant impact on both the global and local chicken industry. The R65 billion poultry business, South Africa’s second-biggest agricultural sector and the largest employer in agriculture sustaining 58,000 jobs across the value chain, is attempting to negotiate these challenges.
In a statement on Tuesday, SAPA highlighted key issues dominating the industry’s agenda for the year ahead. These include the roll-out of vaccination programmes, compensation for culling infected flocks, fluctuating trade dynamics, and rising feed costs driven by a weaker rand. Despite recent investments to increase slaughter capacity from 19.5 million to 22.5 million birds per week, current production remains at 21.5 million birds weekly. Some farms are still recovering from the devastating 2023 HPAI outbreaks, while others remain cautious about expanding production in light of potential future outbreaks and rising imports.
Efforts to implement widespread vaccination against HPAI have stalled. No farms have met the stringent biosecurity protocols required for vaccination approval, leaving the sector vulnerable to future outbreaks. SAPA expressed concern over the lack of progress, noting that two strains of HPAI – H5N1, a global threat, and H7N6, unique to South Africa – wreaked havoc in 2023. Although three H5 vaccines have been approved for import, H7 vaccines remain months away from approval due to mandated testing protocols. Weekly negotiations with the government have yet to yield a practical solution. SAPA has called on Minister Steenhuisen to intervene by compensating farmers for culled birds and facilitating vaccination efforts, which are critical to safeguarding the industry’s future.
The situation is exacerbated by aggressive avian flu outbreaks in Europe and the United States, which have already led to lockdowns in several regions. SAPA has stressed the importance of prioritizing vaccination in South Africa, as current biosecurity measures are insufficient to prevent major outbreaks.
Trade dynamics play an important influence in shaping the industry’s difficulties. While total chicken imports climbed between 2023 and 2024, bone-in cut imports decreased. Mechanically deboned beef and offal imports, which are duty-free, contributed considerably to the increase. Argentina, which is free from anti-dumping regulations, has put additional pressure on domestic producers by flooding the market with low-cost chicken. Meanwhile, imports from HPAI-affected regions, such as Europe and the United Kingdom, have declined, while tariff-free imports from unaffected regions continue, lowering local prices and production.
On a positive note, progress has been made in opening export markets. SAPA reported that residue monitoring programmes had been submitted, and inspections by the UK and Saudi Arabia are expected soon. These inspections could unlock access to key markets for cooked chicken products, though exports of uncooked chicken remain unlikely at this stage.
Domestic challenges such as rising feed costs and energy expenses continue to strain producers. While 2024 saw improvements in operational efficiencies due to reduced load-shedding and slightly lower feed costs, many farmers remain cautious about expanding production without vaccination protocols or compensation for culling in place.
To support consumers, SAPA, along with the importers association AMIE and other stakeholders, has requested VAT exemptions for frozen chicken cuts and offal. This measure aims to provide relief to lower-income households while bolstering local producers in their efforts to supply affordable chicken products.
