Industry leaders are increasingly focusing on export-led growth as a long-term strategy as the South African poultry sector grapples with economic pressures, evolving trade dynamics, and the lasting effects of avian influenza (AI) outbreaks.
ChickenFacts provides a comprehensive analysis of South Africa’s poultry trade, covering essential aspects such as imports, exports, local production, and the biosecurity challenges confronting the industry.
This investigation highlights the complex dynamics and pressing issues within the poultry sector, offering critical insights that are invaluable for stakeholders, policymakers, and consumers alike.
Poultry Imports and Duties
In a media statement released on 20 January 2025, The South African Poultry Association (SAPA) alleged that Argentina is “flooding” the South African market with cheap poultry imports, specifically MDM (mechanically deboned meat) and offals which, according to SAPA, face no tariffs.
Upon investigation, however, ChickenFacts has found this assertion to be misleading.
SARS import statistics show that Argentina resumed imports to South Africa after a six-month ban in 2023 due to Avian Flu, leading to an apparent increase in poultry imports from Argentina.
However, contrary to SAPA’s statement, SARS import statistics show that only 6% of total poultry imports came from Argentina in the last 12 months, with chicken MDM and Offal from Argentina constituting 4% of South Africa’s total imports.
Furthermore, the South African Revenue Service (SARS), in its Customs & Excise Tariff Schedule 2, indicates that Argentina is not exempt from import duties of poultry.
While Argentina has no anti-dumping duties, the country is subject to a 62% customs duty on bone-in chicken, alongside a 30% tariff on chicken offal.
Mechanically Deboned Meat (MDM) is essential for producing processed meats like polony and viennas. MDM imports do not carry any duty. This exemption comes from the fact that local production of MDM is insufficient to meet domestic demand. As a result, importing MDM is crucial for the South African consumer, as it provides an affordable protein option for millions of lower-income consumers.
Poultry imports, however, remain essential in the poultry industry value chain, providing not only food security in times of short supply but also keeping local poultry pricing in check.
It is essential for South Africa to maintain strong trade relations to avoid global isolation or food shortages, particularly in the event of another Avian Flu pandemic impacting the poultry industry, as seen in 2023.
The World Trade Organisation (WTO) emphasises that widely distributing the benefits of economic growth, including trade openness, helps establish a stable and relatively prosperous middle class. This, in turn, supports the overall development process by driving domestic consumption, encouraging entrepreneurial activity, economic diversification, and social stability. Ultimately, these factors contribute to achieving long-term economic growth and reducing poverty.
SAPA has repeatedly linked poultry imports to domestic production challenges, yet structural issues within the industry remain the primary constraints on growth.
Mercantile law expert, Dr. Gustav Brink emphasises the need for the South African poultry industry to innovate by pivoting towards value-added products, like ready-made chicken meals and canned options, to reduce reliance on low-margin Individually Quick Frozen (IQF) chicken.
Brink further highlights trade barriers and export challenges due to strict sanitary and phytosanitary measures by the EU and US, noting that South Africa’s higher chicken brining levels create a competitive disadvantage.
Addressing these issues could improve export opportunities, ease tensions over anti-dumping duties, and promote a more favourable trade environment through better diplomacy and predictable policies.
Exports, Biosecurity and Vaccinations
Rather than restricting poultry imports, South Africa is actively pursuing an export-driven growth strategy.
The Poultry Sector Master Plan (PMP), signed in November 2019, initially focused on reducing feed costs, tackling trade barriers and limiting reliance on imports from Brazil and the US, whilst creating a conducive environment for chicken exports.
According to Ncumisa Mcata-Mhlauli, Chief Director of Agro-processing at the Department of Trade, Industry and Competition (DTIC), the second phase of the Master Plan will mainly focus on growth driven by exports of cooked meat and local demand increase strategies, effective trade measures, biosecurity measures for local and export markets, and transformation of the poultry industry, among others.
The Association of Meat Importers and Exporters (AMIE) is also a signatory to the PMP and its industry transformation initiative, the AMIE Academy, is breaking new ground in the development of entrepreneurs, supporting one of the primary goals of the PMP.
SAPA acknowledges that many farmers are holding back due to economic uncertainty and fears of further disease outbreaks. To this end, SAPA has bemoaned delays in rolling out avian influenza vaccines, calling for government intervention.
Two strains of Highly Pathogenic Avian Influenza (HPAI) were responsible for the devastating bird flu outbreaks in 2023. These strains included H5N1, which has had a global impact, and H7N6, a variant unique to South Africa.
Although three H5 vaccines have received approval for import, the H7 vaccine is still being developed and tested locally by Deltamune Laboratories.
In December 2024, the Department of Agriculture, Land Reform & Rural Development (DALRRD) stated that good progress is being made with the development of a local H7 AI vaccine, however, it will still take some time to gather all the required information to support registration.
Speaking to ChickenFacts regarding the administration of approved vaccines, DALRRD’s Animal Health Director, Dr. Mpho Maja stated, “Our concern is infection that might go undetected, leading to virus mutations that could pose potential risks to consumers and poultry production workers.”
Globally, the HPAI H5 has contributed to the vast negative impact on poultry flocks. South Africa is not immune to this and therefore strict protocols are needed to ward off the impacts of the virus, especially in winter.
In France, mRNA vaccines have been successfully administered to duck flocks for the H5 strain. However, comprehensive comparative studies in avian species are limited. Research indicates that mRNA vaccination in poultry is feasible, but further in vivo testing is required.
The U.S. poultry industry is hesitant to vaccinate birds because of the potential consequences on exports. Most countries, including major importers of U.S. poultry, do not recognise vaccinated meat as free from avian influenza.
The potential benefits of these vaccines for South Africa’s ambitions to expand exports remains in question, as major poultry importers continue to reject vaccinated birds.
Conclusion
Poultry industry stakeholders and government officials should focus on exploring alternative measures to support both consumers and producers. One such measure is a proposed VAT exemption on frozen poultry cuts and offal, which could help lower costs for consumers while stimulating domestic poultry demand.
SAPA and the Association of Meat Importers & Exporters (AMIE) have submitted a proposal to the National Treasury to exempt specific chicken products, such as frozen bone-in portions and offal, from Value Added Tax (VAT). According to both parties, this initiative is aimed at bringing the much-needed relief to pressured consumers, especially on protein products that are the mainstay for the lower-end consumer.
With Phase 2 of the Poultry Master Plan focused on export led growth, South Africa is laying a long-term foundation for a globally competitive poultry industry. This presents an opportunity for industry leaders to prioritise feed cost management, biosecurity improvements, and infrastructural development.
For instance, developed countries favour boneless chicken due to its perceived health benefits, whereas a significant portion of South Africans prefer bone-in cuts. This preference divergence creates opportunities for balanced trade through imports and exports.
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