Latest news with #ArnoldPrinsloo
The South African
16 hours ago
- Business
- The South African
Meat prices set to surge amid SA supply crisis
Eskort CEO Arnold Prinsloo warns that South Africa's meat industry is heading into a 'perfect storm' that could drive prices out of reach for millions. Speaking to BusinessTech , he said that a combination of beef shortages, a ban on chicken imports from Brazil, and the collapse of a major poultry producer has put the country's food security at serious risk. The warning comes after a confirmed outbreak of foot-and-mouth disease at a Gauteng feedlot owned by Karan Beef, South Africa's largest beef producer. The facility has been placed under quarantine, slashing slaughter volumes by nearly 75%. 'If the quarantine drags on or the disease spreads, beef supply will shrink and prices will rise,' Prinsloo said. Adding to the pressure is the recent ban on chicken imports from Brazil, imposed on 15 May after an avian flu outbreak. According to The Citizen , Brazil supplies South Africa with 19 000 tonnes of mechanically deboned meat (MDM) per month. This meat is used in low-cost processed products like polony and Viennas. Local producers can supply only 100 tonnes. 'Some smaller producers have already run out of raw materials. This ban alone threatens 400 million affordable meals per month,' Prinsloo warned. Meanwhile, Daybreak Foods, one of South Africa's largest poultry producers, has gone into business rescue and recently culled 350 000 chicks due to feed shortages. 'This will squeeze chicken supply even further and drive up prices across the board,' Prinsloo said. Prinsloo, alongside industry groups like AMIE and the South African Meat Processors Association, has urged Agriculture Minister John Steenhuisen to review the import ban. They want the restriction narrowed to the affected region of Brazil rather than the entire country. 'This would preserve supply chains, protect public health, and safeguard thousands of jobs,' he said. Prinsloo stressed the urgency of the situation. 'This triple threat livestock disease, import bans, and production failures demands immediate government action,' he said. 'If we wait until shelves are empty and prices skyrocket, it'll be too late.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
20 hours ago
- Business
- The Citizen
Industry warns of meat price spike and hunger as SA faces supply crisis
South Africa's meat supply is under pressure from a 'triple whammy' of crises: bird flu in Brazil, a poultry producer's collapse, and a foot-and-mouth disease outbreak. A combination of a perfect storm of factors has led to a meat supply crisis which could see the price of meat spike over the winter, as well as increasing hunger and malnutrition, according to major players in the food industry. The 'triple whammy' which has hit the local market over the past few weeks is the ban on the imports of chicken from Brazil, some regions of that country having been hit by avian flu; a crisis at Daybreak Foods, one of South Africa's largest integrated poultry producers, which has entered business rescue after being forced to cull 350 000 starving chicks and, finally, this week, the diagnosis of foot-and-mouth disease in animals on feedlots of Karan Beef. A perfect storm Eskort CEO Arnold Prinsloo said the three developments represented a perfect storm for food security. He said that mechanically deboned meat from Brazilian chickens was used in affordable products such as polony and Viennas, adding that some smaller producers have already run out of raw material since the Brazilian import ban was imposed on 15 May. 'If the quarantine is prolonged or the disease spreads, it is possible that beef supply will contract and prices will rise, just as the supply of chickens from Daybreak comes under pressure from the company's bankruptcy and polony vanishes from supermarket shelves,' he said. 'We have calculated that 400 million low-cost meals per month will be affected by the import crisis alone, so this triple whammy to food security requires urgent action from the department of agriculture, starting with a decision to narrow the Brazilian ban to Rio Grande do Sul, the only state affected by avian flu,' he added. ALSO READ: Bird flu ban: Brazil suspension takes chicken and polony off South African tables — prices set to rise Poultry industry 'disingenuous' Prinsloo said he was disappointed by the poultry industry's insistence that the import ban does not pose a food security risk. 'South Africa imports 19 000 tons of mechanically deboned meat every month from Brazil because domestic producers only have the capacity to supply 100 tons.' He said it was disingenuous of the poultry industry to dismiss the looming shortage, particularly when the people who will suffer most are the ones with the fewest affordable choices. Eskort has joined industry bodies including the Association of Meat Importers and Exporters and the South African Meat Processors Association in calling on Minister of Agriculture John Steenhuisen to instruct officials to expedite Brazil's application for an agreement allowing it to apply for recognition of disease-free geographical zones. Chicken supply cut Another big bite out of the meat market supply was the cut of almost 12 million chickens a month following the National Council of SPCAs (NSPCA) suspension of Daybreak's operations. Last month, the NSPCA obtained an urgent interim court order from the High Court in Johannesburg compelling Daybreak Foods to immediately cease all inhumane culling practices and to provide adequate, appropriate feed to hundreds of thousands of breeder birds at its facilities. ALSO READ: Will SA run out of beef and chicken? Animal disease hits SA's top producer — what it means for consumers The interim order was made final by the high court on 23 May. Farmers have called on the government to act to contain foot-and-mouth disease (FMD) before it is too late. FMD spread in SA Southern African Agri Initiative (SAAI) president Dr Theo de Jager said the outbreak of FMD in KwaZulu-Natal and its subsequent spread to some of the largest feedlots in South Africa, was a disaster of immeasurable scale for cattle farmers. 'SAAI has been engaging with the department of agriculture since December 2024, when the first rumours of FMD began circulating,' he said. 'It took months before the outbreak was officially declared and resources were mobilised to combat it.' Karen Beef suspends exports Meanwhile, Karan Beef spokesperson senior feedlot veterinarian Dr Dirk Verwoerd said a case of FMD had been confirmed at its feedlot facility in Heidelberg on Monday. 'The outbreak occurs during peak weaning season and will significantly disrupt the national supply chain. Farmers may be forced to hold calves longer than usual due to limited feedlot capacity. Karan Beef has suspended all exports,' he said. Verwoerd said consumers should know there is no risk to human health and that local beef supply may be affected in the short term. Business rescue for stricken chicken producer Daybreak Foods
The Citizen
20 hours ago
- Business
- The Citizen
Rising meat costs will punish the poor
With imports halted and diseases spreading, meat prices are set to rise, putting added strain on households already battling food insecurity. How is it that the head of a company specialising in pork products should go into bat on behalf of the poultry sector as a meat supply crisis engulfs our country? It sounds odd, but as Eskort CEO Arnold Prinsloo explains it, you can see the logic. The government has banned the importation of chickens from Brazil, because of the outbreak of avian flu in certain parts of that country. What that means is that we are no longer importing the estimated 19 000 tons of mechanically deboned meat (MDM), which is a vital component of processed meats such as polony, of which Eskort is one of a number of suppliers. The ban on imports comes as two other blows have hit meat supplies. First, there was a crisis at Daybreak Foods, one of South Africa's largest integrated poultry producers, which has entered business rescue after being forced to cull 350 000 starving chicks. ALSO READ: Tiger Brands to make interim advance payments to listeriosis victims as class action continues Then came the news this week that foot-and-mouth disease had been detected at a Gauteng feedlot owned by Karan Beef. Prinsloo reckons all of this combined can lead to hikes in the price of meat across all categories and, because the cheaper processed meats rely on MDM, it could be the poor who are hardest hit. The meat industry, along with farmers' groups, are upset at the government, specifically for its inaction. The concern among farmer's organisations is that the authorities did not act quickly enough to contain the foot-and-mouth outbreak, with the result that many cattle farmers could face financial ruin as they will be banned from moving or selling their stock. The meat industry wants the government to immediately amend the Brazilian import ban so that it applies to only those areas in that country actually affected by bird flu. Unless urgent action is taken, we face a cold, hungry winter. NOW READ: Soweto's smoked meat master makes waves
IOL News
27-05-2025
- Business
- IOL News
Eskort warns of food security crisis as chicken imports from Brazil prohibited
This ban, enacted by the Department of Agriculture on 15 May due to an avian flu outbreak in Brazil's Rio Grande Do Sul state, has raised urgent alarms within the local meat industry. Image: Pexels/IOL South Africa stands on the precipice of a significant food security crisis following the government's decision to ban chicken imports from Brazil. This ban, enacted by the Department of Agriculture on 15 May due to an avian flu outbreak in Brazil's Rio Grande Do Sul state, has raised urgent alarms within the local meat industry. Arnold Prinsloo, CEO of meat producer Eskort, has expressed grave concerns over the ban's implications for the country's most vulnerable populations, highlighting that production lines may halt by the end of June if the restrictions are not reversed. 'This will deprive South Africa's most vulnerable citizens of more than 400 million low-cost meals per month,' Prinsloo warned during a press briefing. He emphasised that many families and numerous school feeding schemes rely heavily on processed chicken products such as polony, Viennas, Russians, and Braaiwors. The looming halt in production poses a serious risk of widespread hunger and malnutrition, especially among low-income households. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Prinsloo has called for the Department of Agriculture to adopt a more tailored approach, akin to that of neighbouring countries like Namibia and Mozambique, which have managed their import bans more cautiously. He advocates for a regionalised ban that focuses solely on the affected state, allowing imports from the rest of Brazil. 'A pragmatic and proactive decision to accept imports from unaffected regions will go a long way to heading off the looming crisis in South Africa,' he stated. Echoing these sentiments, industry bodies, including the Association of Meat Importers and Exporters and the South African Meat Processors Association, have urged the government to align with World Organisation for Animal Health protocols, which would facilitate continued trade from unaffected areas. Countries such as Japan and Saudi Arabia have successfully implemented zoning strategies, allowing them to import poultry while shielding public health. The economic repercussions are profound. South Africa imports around 19,000 tonnes of mechanically deboned chicken from Brazil monthly. This quantity is essential for producing a staggering 404 million low-cost meals each month when mixed with other ingredients, according to Prinsloo. The projected 4- to 6-week gap in supply may see production facilities idle, leading to potential job losses and destabilising the lower living standards market, creating a recipe for socio-economic upheaval. Critics within the local poultry industry have claimed they can fill the gap in supply. However, Prinsloo counters these assertions by stating that while there may be capacity for fresh or frozen chicken, local producers fail to meet the essential need for mechanically deboned chicken, a product for which South Africa relies on Brazil for 92%. 'This is why the situation is extremely serious,' he added. Finally, Eskort touts its rigorous production processes as ensuring the safety of its products amid health concerns related to avian flu. By heating mechanically deboned meat to temperatures exceeding 70°C, they produce safe, consumable products, a practice that has been integral to their 108-year history without any food safety issues.
