Glen McMaster lets loose with what he calls a ‘rant’.  We prefer to call it ‘Chicken Nuggets of Truth’. 

Industry claims don’t hold water any more

Today I want to highlight some of the claims made over the years by so-called industry specialists and stakeholders.

1. Imports are killing the local market and creating job losses
          – Well, where are the jobs created by local producers and how many previously disadvantaged farmers are screaming success?…Anyone know of new abattoirs or brands launched by that sector?

2. Local can sustain demand but imports create an oversupply
          – Well, why the glut?…its all local and has been for 12 months at least….

3. Import prices kill local prices
          – Well, for the last year local has been killing the market all by itself…now what?

It’s time for industry specialists to face the facts: you are completely in control of the market, there is no opposition and there certainly isn’t any foreign entity you can blame.

The question is…..What now?

I need to make it clear, I am 100% behind the local producers and farmers.  However, I am not a supporter of the current poultry regime that lacks foresight and the ability to change the outcome for our local market demise. The annual propaganda that complains about imports, backed by paper-thin evidence, has become so transparently one-sided that it has even the least-informed players now questioning its relevance.

We have a poultry entity that has been squandering public funds for years. We have household brands that constantly flood the market with less desirable product, yet when demand is available in more niche markets they choose not to invest and develop.

Our chicken industry is controlled by foxes

The reality is our sector is run by specialists from industries that have no affiliation to poultry – such as alcohol, groceries, and corporate services who transitioned and now call the shots. The poultry sector desperately needs ground-up skilled professionals who understand the characteristics and demands of poultry as a commodity. We need old heads with fresh ideas cultivating new talent whilst sharing their vast experience.

Decisions are made from boardrooms where skewed stats and figures outline their strategy for success. So, here’s an idea: how about accessing information from the market that actually has a hand on the pulse?

So, where are our mouthwatering new products? 

When is the last time we as consumers saw a product on the shelf that stirred our interest and created an overwhelming desire to test and taste?

The constant submissions of losses and the reporting of quarterly or annual negatives leave most perplexed by the pattern of going nowhere fast. Does anyone else feel as though the perpetual déjà vu seems a little monotonous?

The narrative stays the same…”Poultry sector job losses due to imports” or “Poultry sector sees decline in investment due to dumping of imports” or my absolute favorite “Industry Growth plan halted due to imports”….. Lets call a spade a spade, we have great companies in SA but we also have decision makers with hidden agendas. The potential for success is undeniable, so why the failure?

The truth is that every industry requires some form of protection, enough to level the playing field and give rise to local businesses and industries. Our country has many challenges and conducting business is rather unique: we have so many contributing cost factors that no other country must contend with.

Just answer the questions

Now let’s look at a few key factors that will certainly anger some specialists…..but when has any South African every avoided confrontation?

• We lack automation and efficiency with most processors being labour intensive – Why?
• Why have we not seen the rise of an independent black-owned processor or household brand? Same names, same brands and same old stories.
• Why has government not subsidized processors to develop the export market….Where do all the funds generated from agriculture go?
• Major poultry processors pay an abundance in tax, where is the re-investment from government into new markets for them to access?
• Why do local poultry associations not show the same level of disdain for government as they do for imports? Surely the lack of investment and assistance is equally crippling their industry?
• Why do poultry associations not engage with importers/ exporters to develop a pipeline for exports?…..Surely the prospect and ultimate realization of sales would shift their focus to exports?

Now the above may seem like an attack on a political front but if government and their appointed departments aren’t fronting up then who can? The delegations and trade agreements for the protein sector are very poorly represented, we have countries in the Far East and West Africa desperate for supply of our byproducts….But lets just let the Europeans, Americans and South Americans have it…

Let’s explore some options:

• Less desirable products at a higher export price to balance the NSV.
• Seasonal changes create a drop in price for certain cuts, develop an export market with countries that have contrasting seasonal changes to ensure all year-round consistent pricing.
• Sign trade agreements with partners that lack agricultural infrastructure, develop a supply chain that gives access to their wholesale and retail markets.

Trade show no-shows

There are countless options that could be explored by business masters who have far more capability and influence than I have. I implore them to attend a global food trade show, experience the level of information businesses have access to. The global players trade from factual statistics and leads that have been developed and primed for their markets and products.

The experience and willingness to trade from attendees gives buyers the sense of confidence that they are dealing with knowledgeable and reliable businesses. I have seen numerous beef processors from SA at the trade shows, their presence in the Middle East is vast and growing. The South American beef processors are absolute monsters, and their pricing is impossible to match…and yet….SA processors are growing fast and highly sought after!

Local Frozen Feb & March:

IQF Mixed Portions (6x2kg) @ R27.50 to R29.50
Drumsticks @ R34.50 to R38.00
Leg ¼ @ R31.00 to R34.00
Wings @ R42.00 to R44.50
Thighs @ R27.50 to R30.00
Fillets De-boned/ skin off @ R41.00 to R44.00
Whole Birds 1.3 to 1.5kg @ R31.00 to R33.50

Fresh whole Birds @ R31 to R33.50

Wholesale Imported Frozen prices as of Feb & March:

Drumsticks USA Jumbo @ R28.50 to R32.00 – Jan, Not much has changed
Leg ¼ USA Smalls @ R33.95 to R36.95
Leg ¼ Irish @ R35.00
Wings Argentinian @ R42.50 to R45.00
Thighs USA @ R28.50 to R32.50

Fillets De-boned/ skin off Brazil @ R48.50 to R55.00 – No demand, very little imported currently