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It's a bizarre story..... the Western Cape government announces a R300 million export deal between small local poultry producers and China, and the South African Poultry Association (SAPA) immediately labels it a 'hoax'.
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It is not a hoax*. But perhaps it's a telling episode. It might be showing that SAPA does not truly represent the best interests of the poultry industry in this country, and wishes to keep control of the sector to serve narrow interests.
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This has not been a good few weeks for SAPA. Recovery from the bird flu epidemic has been slow (although one company has bounced back). Government has made it clear there is no compensation for any losses. There is a delay in making vaccines available. SAPA expressed its 'fury, disappointment and dismay' at the DTIC decision to revisit tariffs (even though the concession is largely unworkable, according to AMIE's Paul Matthew - read his analysis here) Emerging poultry farmers are expressing their frustration at SAPA's unwillingness to open up the industry. And now SAPA have shown that they are out of touch with expansion and transformation opportunities. These sentiments have been largely echoed by Wandile Sihlobo, in a piece summarising the issues.
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In our newsletter this week, we take a Closer Look at the implications of this China deal for sustainable transformation working towards a robust industry. Our Basic Food Basket Analysis features IQF, which shows an interesting price trajectory. We also feature our Fact Sheet to show import statistics to counter the assertion that imports increase when rebates are introduced. We also feature our popular Insider's Perspective, and we really urge you to listen to Kobedi Pilane's podcast interview where he unpacks the frustrations of emerging farmers.
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* Neither SAPA nor the publications that posted the 'hoax' story have retracted or qualified their statements.
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A Closer Look: SAPA - Get Out of the Way
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When the Western Cape investment agency Wesgro announced an exciting deal to export R300million worth of chicken feet to China, the response from the poultry industry was not what they were expecting.
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Poultry Analysis 13 February 2024
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The price of chicken remains a national concern, with debates about whether the import tariff rebate will reduce poultry prices or not.
In most cases the rebate has been welcomed as an option for other sources of chicken.
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The Insider's Perspective - January
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In our second Insider's Perspective, Glen McMaster points out the highs and lows of January, with some questions for the year ahead.
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Basic Food Basket: IQF Analysis
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The price of IQF (Individual Quick Frozen) chicken does not reflect the price trajectory of other chicken products. During 2023, fresh chicken went up by 15%, and giblets went up by 18%. Frozen chicken went up by 9% and whole chickens went up by 8%. By comparison, IQF increased by 'only' 6%. Even 6% is a blow to lower-income consumers who need to stretch their pensions and state grants even further every month.
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Poultry Imports
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This Fact Sheet shows statistics for import tariffs for the last six years, broken down per category, for fact-checking purposes. To see the Fact Sheet, either click on the image below or go to Read More
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Click on the image below to listen to the podcast
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