The poultry export market in South Africa faces significant challenges that require coordinated efforts from the government, industry stakeholders, and producers. Among these challenges, high feed costs are particularly impactful, largely due to global events such as the Russia-Ukraine war.
To address this, investing in local feed production, promoting research into alternative feed sources and collaborating with other agricultural sectors to streamline supply chains can help reduce costs.
In an interview with ChickenFacts, Flo Mosoane, CEO of Easy Chicken Club, provided insights into the challenges of South Africa’s poultry export market. Easy Chicken Club is an agritech initiative that connects small-scale broiler chicken producers with a sustainable value chain.
“Addressing feed costs will require collaboration across agricultural sectors and investment in alternative feed sources to mitigate against global price shocks,” Mosoane said.
She added that government support for local production and innovation could help shield South African producers from international market volatility.
In addition to feed costs, Mosoane said small and medium-sized producers, who lack the cost efficiencies of larger operations, face tough competition.
“Forming cooperatives could be a game-changer. By pooling resources, small farmers can purchase feed and equipment in bulk, making them more competitive,” she said.
Infrastructure and Access to Export Markets
Reliable infrastructure is important for rural poultry producers, especially for accessing ports and distribution networks critical for export success.
Poor infrastructure poses another obstacle, particularly for rural producers who rely on access to ports and distribution centres. Delays and high transport costs cut into the profits.
Mosoane stressed that the improving infrastructure might bring about a change in the industry.
This can provide avenues for more stable and profitable exports through investment in rural transportation networks and energy solutions for agricultural areas.
Navigating Trade Barriers
Trade barriers, including tariffs and quarantine regulations, present more challenges. To tackle these issues, Mosoane said strategic diplomatic approaches must be employed to achieve favourable trade agreements.
“We need diplomatic engagement to create fairer trade agreements that make it easier for South African poultry to enter international markets. Meeting these standards requires investment, but the returns are worth it.”
She added that the South Africa’s government could support the sector by negotiating bilateral trade agreements and adhering to international standards to open new avenues for poultry exports.
“The idea of lack of access to markets is really mind-boggling for me. It would benefit all of us in different areas within the value chain of meat to internalise the story of what we are trying to do,” she said.
She also urged the government to foster education and transparency within the industry, ensuring all stakeholders at all levels understood market dynamics. “That would be the thing that fixes the challenge for everyone so we’re not asking questions like, ‘Why is the chicken here at this price?’”
Biosecurity and Disease Prevention
Disease outbreaks, particularly avian flu, pose significant risks to South African poultry exports. With exports often halted during outbreaks, producers have increased biosecurity measures. Mosoane described the critical importance of disease management:
“We have really robust HPAI vaccination programs. We have well-proven pharmaceuticals in terms of the vaccines themselves that we use. So in terms of biosecurity, from that perspective, I’m confident we have it covered.” Mosoane said
To further safeguard against disease-related disruptions, she suggested increasing funding for disease research, enhancing biosecurity protocols, and establishing a rapid-response team would help safeguard the industry against potential crises.
She expressed confidence in the country’s ability to rapidly fight outbreaks, adding that the vaccines used have proven efficient for the industry.
Additionally, ChickenFacts reports that vaccinations of poultry for HPAI are still in the research and testing phases, and their implications for poultry exports are yet to be determined.
Financial Challenges and Industry Support
Financial limitations hinder many poultry producers from scaling operations and adopting modern technologies. Mosoane suggested that affordable credit options and public-private partnerships could ease these financial constraints.
“A united industry effort could unlock South Africa’s poultry sector potential, fostering economic growth, job creation, and a sustainable future for agriculture,” Mosoane said.
Reducing Red Tape
The South African Poultry Association (SAPA) has consistently advocated for simplified processes and increased government support to address export challenges—thus reducing red tape. However, slow governmental response to issues like fluctuating feed costs, especially for essential ingredients like maize and soy, continues to impact the industry’s global competitiveness.
Mosoane said to address red-tape concerns, a streamlined process is required. “We need to get from A to B. What is it that needs to happen to make that process possible? The red-tape doesn’t even become a thought anymore.”
“If we understand why we are trying to do what we are doing, then the red-tape… becomes less relevant. All it should help us do is ensure we are serving people safe, nutritious food everywhere in the world.”
South Africa can transform its poultry industry into a global contender with focused, coordinated efforts and strategic investments.
Studies by the World Trade Organisation (WTO) have repeatedly shown that countries with robust economies have sustainable import and export portfolios ensuring sustainable value chains.
In the meantime, ChickenFacts remains committed to tracking developments and will continue to offer fact-checked updates on the solutions to the challenges.