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The South African
28-05-2025
- Health
- The South African
Chicken crisis in South Africa: Here's why offal prices have skyrocketed
The Association of Meat Importers and Exporters (AMIE) has warned of serious economic and food insecurity consequences for South Africa as a result the recent outbreak of Avian Influenza (HPAI) in the Brazilian state of Rio Grande do Sul. Local producers cannot, and will not be able to meet the gap in supply of poultry offal (feet, gizzards, and skins) and mechanically deboned meat (MDM), driving up prices and threatening the affordability and accessibility of basic protein for millions. Brazil is the world's largest exporter of poultry products, and accounts for 73% of poultry (excluding MDM) imported by South Africa, including frozen bone-in chicken and offal (feet, livers, necks and carcasses). It also exports 92% of all MDM imported to South Africa, with a monthly average of 18 000 metric tons over the past year, which is vital in the production of processed meat products. Imameleng Mothebe, CEO of AMIE, says, 'Chicken offal and MDM are not luxuries. They are foundational to school feeding programmes, and the production of processed meats which are the most affordable proteins for low-income households. Ultimately, Brazilian MDM is the source of over 400 million poultry-based meals per month for South Africa. 'Whilst we appreciate the commitment by SA poultry producers to increase their production by four million birds per month during the closure of Brazil poultry exports, the fact is that local producers alone cannot fill the gap in the production of offal and SA effectively does not produce MDM at commercial scale. In addition, alternative international markets also do not have the scale or available supply of the product mix to replace Brazil's exports to South Africa.' The table below of official South African import statistics per month, indicates the number of chickens required per category to meet local demand for offal. Cut Description Average Metric Tonnes (Mt) Imported from Brazil Per Month Estimated Number of Chickens required Chicken Feet 4 071 54 million Chicken Livers 467 10 million Chicken Gizzards 1 505 31 million Using the estimated output of an additional four million birds a month from local producers, and bearing in mind that the local industry will not be able to produce any additional MDM, the following shortfalls in offal per month will remain: Chicken feet – 3 773 MT tonnes per month Gizzards – 1 315 MT tonnes per month Livers – 287 MT tonnes per month. Mothebe said, 'Without urgent action to put in place a regionalisation agreement with Brazil, which would allow for the import of products from areas not affected by the outbreak, price increases and food shortages for consumers, and job losses for local manufacturers of processed meats who employ over 125 000 workers, will follow.' The economic impact of the shortfalls are already being felt in the market, warns Mothebe. With the current shortage of MDM, processed meat producers are facing cost surges as inventory levels are thinning, and shelf prices are starting to reflect this reality. MDM prices have surged from R13 to R31/kg, while offal like gizzards and skins have seen double-digit increases. These increases will be compounded by rising input costs, especially with the recently announced fuel levy hike in the national budget, which adds inflationary pressure across the value chain. This pressure will inevitably be passed on to consumers, resulting in food affordability pressures for the majority of the consumers. Mothebe says, 'We support government continuing engagements with Brazil towards regionalisation, a concept that demarcates affected areas whilst the rest of the country remains open. Regionalisation is widely accepted and supported by the World Organisation of Animal Health (WOAH), especially in light of the ongoing global diseases phenomenon.' Many countries are currently concluding regionalisation agreements with Brazil and therefore will soon be re-opening their markets to Brazilian imports. This week Namibia announced the re-opening of poultry imports from Brazil as a result of concluding regionalisation agreement between the two countries. Mothebe says, 'We urge that the conclusion of engagements between South Africa and Brazil are expedited, to minimise the impact on the South African economy and consumers alike. 'The current situation is not just a trade issue, it's about protecting jobs, businesses, consumer affordability and food security'. 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
20-05-2025
- Business
- The Citizen
Bird flu brings foul times: Chicken shortage and price hike loom in South Africa
South Africa risks a chicken shortage if the Department of Agriculture bans imports from Brazil. South Africans must brace for a potential rise in chicken prices, as the government is expected to ban imports from Brazil following a recent outbreak of avian influenza, commonly known as bird flu, in that country Brazil supplies more than 84% of South Africa's poultry imports. Should the Department of Agriculture ban the imports, the poultry industry in SA could face a massive shortage, leaving the industry little to no choice but to increase prices. The same measures may be forced upon Astral Foods, South Africa's largest poultry producer, which is already under pressure from rising input costs despite remaining profitable. ALSO READ: Bird flu: Farmers can apply for compensation for animals destroyed Chicken shortage The Association of Meat Importers and Exporters (AMIE) has urged the government to avoid a blanket ban on Brazilian imports and instead adopt a regionalisation strategy that targets only the specific areas affected by the outbreak. This approach has already been announced by Japan, Saudi Arabia, the UAE, and the Philippines in response to the outbreak in the Brazilian state of Rio Grande do Sul. AMIE CEO Imameleng Mothebe warned that a full ban on Brazilian poultry imports would have devastating consequences for South African poultry processors and consumers, particularly the country's most vulnerable. The importance of chicken imports 'Imported poultry not only fills the country's poultry consumption gap, but also provides the necessary competition to ensure that prices are kept in check. 'Chicken is the most affordable protein source for many South Africans, and a disruption in the supply of poultry products, including bone-in chicken and mechanically deboned meat (MDM), will significantly drive up prices and impact food security,' she added. Mothebe said a blanket ban on imports will lead to sharp increases in the prices of these products, making them unaffordable for many, particularly those in low-income communities. If this happens, it would exacerbate food insecurity at a time when consumers are already facing high inflation and economic pressures. Coupled with this is the potential job losses arising from the unavailability of MDM product required to keep the meat processing facilities running. ALSO READ: Egg prices increasing globally due to US shortage — Should SA take advantage and export? SA has potential With more than 84% of South Africa's poultry imports coming from Brazil, it is highly possible that the country would face a chicken shortage. However, the South African Poultry Association (Sapa) holds a different view. Izaak Breitenbach, CEO of Sapa's Broiler Organisation, said SA has enough capability to make up for the shortfall. 'We are currently producing about 21.5 million chickens per week, and the industry has the capacity to increase this by about another million birds per week. He added that winter months are a period of lower demand for chicken. Therefore, the additional supply of chicken should be sufficient to prevent shortages or price increases. 'The impact of a ban on Brazilian chicken imports will not be felt immediately. Chicken imports from Brazil can take about six weeks to reach South Africa, and products dispatched before the ban is implemented will not be affected.' Brazil has no compartmentalisation deal Breitenbach added that if Brazil had a compartmentalisation agreement with South Africa, chicken imports from other parts of Brazil that are not affected by the bird flu outbreak would be allowed. 'If there is a problem following a ban on Brazilian imports, it will concern MDM, not fresh or frozen chicken meat. MDM is a paste used in the production of processed meats, such as polony and sausages; it is not produced in large quantities in South Africa.' MDM accounts for about 60% of our poultry imports from Brazil. The second-largest category is offal – products such as chicken heads, feet, gizzards, and livers. A far smaller proportion, 4.5% of Brazilian imports, comprises bone-in chicken portions such as leg quarters, thighs, drumsticks and wings. The Citizen has reached out to the Department of Agriculture for a comment. Company loses profit Astral Foods' financial results for the six months ended 31 March 2025 show the company lost 51% of its profit before interest and tax due to higher input costs. The company is under pressure due to increased costs and its inability to pass these costs on to consumers by raising food prices. The results show the business was able to see more chicken during the six months. However, these sales were made with selling prices down 3.1% year-on-year. Astral Foods effectively subsidised the cost of producing chicken during the period, resulting in a loss of R26 million for the poultry division. NOW READ: Here are the economic and social impacts of bird flu
IOL News
19-05-2025
- Business
- IOL News
Fears that full ban on Brazilian poultry imports could harm South Africa's poultry sector
The Association of Meat Importers and Exporters (AMIE) has called on the South African government to avoid imposing a blanket ban on poultry Image: Pixabay The Association of Meat Importers and Exporters (AMIE) has called on the government to avoid imposing a blanket ban on poultry imports from Brazil, following the recent outbreak of avian influenza in the South American country. IOL previously reported that calls are increasing for the government to temporarily suspend poultry imports from Brazil to protect South Africa's local poultry industry from the spread of the disease. AMIE has recommended that the government adopt a more targeted approach, restricting imports only from the affected regions in Brazil instead of halting all poultry shipments from the entire country. The association pointed out that "this approach has already been announced by Japan, Saudi Arabia, the UAE, and the Philippines in response to the outbreak." 'A full ban on Brazilian poultry imports to South Africa will have devastating consequences for the South African poultry meat processors and consumers, particularly the most vulnerable in our society. "Imported poultry not only fills the country's poultry consumption gap, but also provides the necessary competition to ensure that prices are kept in check. Chicken is the most affordable protein source for many South Africans, and a disruption in the supply of poultry products, including bone-in chicken and mechanically deboned meat (MDM), will significantly drive up prices and impact food security.' AMIE CEO, Imameleng Mothebe, said. The association emphasised that Brazil supplies 92% of all imported MDM to South Africa, with an average of 18,000 metric tonnes imported monthly over the last year. "Additionally, Brazil accounts for 73% of all other poultry products imported into the country. South Africa does not produce commercial MDM locally, and there are no viable alternative markets to replace the volume currently imported from Brazil. "Adopting a regionalisation approach, in line with global best practices, would allow South Africa to continue importing safe poultry products from unaffected" Mothebe expressed concerns about what he described as the "slow pace of reopening other closed markets" by the government. He highlighted that the association was willing to work with the government to find a sustainable and balanced solution. "Poultry import markets in France, several US states, and the Netherlands remain closed to South Africa long after their respective outbreaks have been contained. This delay in decision-making places further strain on the local supply and drives up consumer costs" 'We are committed to engaging with the Government to find a sustainable and balanced solution that serves the best interests of South Africa,' concluded Mothebe. [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
