Avian flu hits South Africa's poultry industry
CNBC Africa is joined by Fred Hume, Managing Director at Hume International to unpack this further.
Fri, 29 Sep 2023 12:29:13 GMT
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AI Generated Summary
- Devastating effects of avian influenza outbreak on South Africa's poultry industry, leading to supply shortages and price hikes.
- Challenges faced by producers due to limited compensation and government policies hindering the industry's ability to mitigate the crisis effectively.
- Call for policy reforms to allow imports and stabilize the market, as stakeholders fear prolonged economic repercussions and job losses.
The outbreak of highly pathogenic avian influenza in South Africa has dealt a severe blow to the country's poultry industry, causing a significant impact on egg supplies and poultry production. The Managing Director at Hume International, Fred Hume, highlighted the devastating effects of the current outbreak, stating that approximately 25% of the country's productive capacity has been affected, leading to a sharp increase in prices of up to 15% within a short period. The financial losses incurred by the industry have already reached $5.99 million, with many farmers still awaiting compensation from previous outbreaks. Despite the severity of the situation, government compensation only covers the culling of infected birds, leaving producers to bear the financial burden of mitigating the spread of the virus. The looming crisis has raised concerns about supply chain disruptions and potential job losses within the industry, as producers grapple with limited stocks and rising prices. Hume emphasized the urgent need for policy reforms to address the current challenges and prevent future outbreaks. He called for a review of the poultry master plan to allow for imports and alleviate the strain on domestic producers. However, government policies, including anti-dumping duties, have hindered the industry's ability to cope with the crisis effectively. The lack of swift action from policymakers raises fears of prolonged economic repercussions and job losses across various sectors dependent on the poultry industry. With the holiday season approaching, consumers may face further challenges due to limited supply and soaring prices. Hume urged government intervention to suspend anti-dumping duties and facilitate imports to stabilize the market and prevent widespread job losses. The future of South Africa's poultry industry hangs in the balance, as stakeholders look to policymakers for decisive action to avert a deepening crisis.