SA’s poultry industry on the mend

South Africa's poultry industry has been battling a crisis since an outbreak of avian influenza in April 2023. As we approach nearly a year since the crisis began, Tracy Davids, Executive Director & Manager for Commodity Markets & Foresight at the Bureau for Food and Agricultural Policy (BFAP), provides an update on the sector's challenges and recovery efforts. Davids highlights that while the poultry industry has faced struggles for several years, the sector has not experienced another outbreak since November 2023, indicating control over the disease. However, significant culling of broiler breeder and layer flocks has led to a strain on egg supply and increased egg prices. Despite this, interventions such as permitting the import of fertile eggs for hatching into commercial production have kept chicken products available, averting severe shortages. One key concern has been the inflationary impact of the crisis on egg and chicken prices. Davids explains the differing impacts on egg and chicken production, noting that egg prices have spiked but are expected to soften with supply recovery, while the chicken industry's net importer status has allowed for flexibility in supplementing domestic supply through increased imports. The interview also touches on the temporary strategy of allowing tariff rebates for specific chicken imports. Davids clarifies that while the measure is in place to address potential shortages, the industry is currently well-supplied, thanks in part to other interventions like importing fertile eggs. The tariff rebate mechanism serves as a precautionary tool for managing crises if shortages arise. Overall, Davids is optimistic about the industry's recovery trajectory. She credits collaborative efforts under the poultry industry master plan, which includes commitments from stakeholders across the value chain. The industry's ability to respond promptly to challenges like the avian influenza crisis showcases resilience and adaptability. As South Africa's poultry sector navigates through the aftermath of the crisis, stakeholders continue to monitor market dynamics and supply chain resilience. The industry's ability to bounce back from the challenges posed by the avian influenza outbreak signals a promising outlook for the future.