South Africa’s chicken industry is pushing for the government to implement tariffs on chicken imports, according to the Competition Commission’s Poultry Market Inquiry. This comes as the country struggles to produce enough to meet local demand. If tariffs are imposed, consumers might face higher prices for this essential protein, further straining household budgets.
As of August, meat prices rose by 11.3%, with chicken generally seen as a cost-effective protein source. Although Statistics South Africa does not include specific data on chicken in its consumer price index, the industry remains pivotal, contributing nearly R72 billion to agriculture and employing around 134,000 people.
Local broiler producers claim that tariffs and anti-dumping duties are necessary to protect jobs against what they consider unfair imports. However, the Commission warns that such protectionist measures could negatively affect consumers, especially low-income families who rely heavily on chicken.
The market is dominated by a few major companies—Astral, RCL, Country Bird, and Sovereign—responsible for about 63% of chicken production. The inquiry will assess pricing dynamics, noting that while producers struggle to recover costs during feed price spikes, they often do not lower chicken prices when feed costs decline.
Despite challenges like avian flu and load-shedding, production has rebounded to 21.4 million birds slaughtered per week in 2024. In response to the inquiry, JSE-listed Astral Foods stated its commitment to engage constructively, clarifying that the inquiry does not focus on investigating anti-competitive behavior.
