The South African poultry sector has recorded a 15% increase in its slaughtering capacity – from 19.5 million broilers per month to 22.5 million broilers, over the last three years, despite significant global and local challenges.
According to the South African Poultry Association, SAPA, the industry was also able to grow from ZAR56 billion (US$3.09B) to ZAR 59 billion (US$3.25B) per year, over the same period.
Izaak Breitenbach, the CEO and general manager of the broiler division of SAPA, said that the sector’s growth had stagnated for about a decade before the signing of the Poultry Sector Masterplan in 2019.
He attributed the recent increase in growth mainly to the investments made in the sector.
“The master plan had called for an investment of ZAR1.5 billion (US$82.6M) to be concluded by 2022. However, South Africa’s poultry industry has already invested ZAR1.8 billion (US$99.2M) with an additional ZAR600 million (US$33.1M) earmarked to be invested by the end of 2024.”
While the association expresses its confidence in the sector’s long-term outlook, certain obstacles threaten the short-to-medium-term sustainability of the sector.
According to Izaak Breitenbach, South Africa had to cull over 3 million birds in 2022 on account of the Highly pathogenic avian influenza (HPAI).
HPAI has led to a decline in poultry production across the globe as well with the US having culled about 58 million birds and the European Union a combined 50 million birds across all its 37 countries in 2022.
Most recently, Argentina also had to suspend its poultry exports to other countries after the confirmation of its first HPAI outbreak.
“HPAI has a devastating effect on any country’s export and therefore the local poultry industry is waiting with bated breath to see what the impact of Argentina’s suspended exports to South Africa will be,” said Breitenbach.
