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The looming crisis: Foot-and-mouth disease and avian flu's impact on South African meat prices
The looming crisis: Foot-and-mouth disease and avian flu's impact on South African meat prices

IOL News

time2 days ago

  • Business
  • IOL News

The looming crisis: Foot-and-mouth disease and avian flu's impact on South African meat prices

Aviation flu could impact the price of poultry in South Africa. Image: File South Africa's meat industry is currently under significant pressure as multiple factors combine to strain supply and influence prices. Outbreaks of foot-and-mouth disease (FMD) within the country, a ban on mechanically deboned meat (MDM) imports from Brazil due to avian influenza, and challenges facing local poultry producers have created what industry leaders describe as a "perfect storm" impacting availability, affordability, and food security for consumers, particularly those in lower income groups. Gordon Nicoll, chairperson of the South African Meat Processors Association (SAMPA), outlined the challenges: 'We're currently facing a serious supply issue when it comes to raw materials, specifically mechanically deboned meat from Brazil. The problem isn't just about price anymore; it's about whether you can get stock at all. That's the first issue.' Mechanically deboned meat is essential in the production of affordable processed meat products such as polony, viennas, russians, and tinned corned beef, which are staples for many South African 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 ✕ Domestic production of MDM is minimal, making the country heavily reliant on imports, primarily from Brazil. 'South Africa imports about 19,000 tons per month,' Nicoll said. 'We used to source MDM globally, but the avian influenza outbreak in Europe closed those markets. Brazil was the last open source. Now that is closed too, and other suppliers cannot meet our demand.' The suspension of Brazilian poultry imports since May 15, 2025, following an outbreak of bird flu in Rio Grande do Sul, has resulted in a shortage of MDM and increased prices. 'The price of mechanically deboned chicken has increased by 140% since the Brazilian import ban,' said Imameleng Mothebe, CEO of the Association of Meat Importers and Exporters (AMIE). 'Every day with no imports is another nail in the coffin of food security for millions.' At the same time, the outbreak of foot-and-mouth disease in South Africa has severely affected the beef sector. A confirmed case at a feedlot in Heidelberg, Gauteng, led to quarantine measures that cut animal slaughtering by nearly 75%. Despite the outbreak, Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), reassured consumers about food safety and supply. 'Although foot-and-mouth disease is a serious concern for producers, beef products are safe and consumers should not be alarmed,' he said. Sihlobo explained that because South Africa is typically a net exporter of beef, export suspensions result in increased domestic supply, which could place downward pressure on prices in the short term. However, producers bear the economic burden. 'Export bans force farmers to hold cattle longer, increasing feed and care costs,' Sihlobo noted. Minister John Steenhuisen announced that the Department of Agriculture has ordered vaccines to cover the KwaZulu-Natal area, while assessments, as well as forward and backward tracing of the outbreak in Gauteng, are ongoing. "Over 900,000 doses of vaccines were ordered, and the first batch is expected to arrive next week. 'These plans are not only about responding to outbreaks, but also about building permanent infrastructure to manage future risks. 'More broadly, we are establishing a Biosecurity Council that will bring together the South African Police Service (SAPS), veterinarians, scientists, the Border Management Authority, and industry. We are rolling out a farm-to-fork national traceability system for livestock.' The department is also preparing to establish a Biosecurity Council to improve disease surveillance and control. Red Meat Industry Services (RMIS) will open a centralised Operational Centre on June 9, 2025, to coordinate the FMD response. The centre will lead efforts in vaccination, movement control, and collaboration with government and industry stakeholders. 'RMIS was established precisely for a time like this, to provide coordinated leadership and technical expertise,' said RMIS CEO Dewald Olivier. The plan includes expanding veterinary service capacity and creating FMD-free livestock compartments to secure supply chains. The poultry industry is further challenged by the recent business rescue of Daybreak Foods, one of South Africa's largest integrated poultry producers, which had to cull 350,000 chicks amid financial difficulties. This has compounded supply pressures on chicken products. Arnold Prinsloo, CEO of Eskort, South Africa's leading antibiotic-free meat producer, described the combined impacts of the FMD outbreak, Brazilian import suspension, and Daybreak's crisis as a 'triple whammy' for food security. 'Meat is going to be more expensive for everyone this winter, but many people will also face the threat of hunger and malnutrition,' Prinsloo said. He urged the government to narrow the Brazilian import ban to the affected state, Rio Grande do Sul, to allow imports from disease-free regions. The Department of Agriculture has committed to reviewing Brazil's regionalisation application and considering a partial lifting of the import suspension. 'We are following international guidelines which allow trade from zones free of avian influenza,' Steenhuisen said. This approach is aimed at protecting both animal health and food supply stability. AMIE also advocates opening poultry imports from other AI-free countries such as France, Sweden, Denmark, and Belgium, to diversify supply and ease economic risks. Industry bodies, including SAMPA, AMIE, and Eskort, are pressing Steenhuisen to expedite approvals for regionalisation agreements and to reopen trade with approved markets. 'These steps are essential to stabilise supply, ease price pressures, and safeguard jobs across the processed meat value chain,' Mothebe said. While challenges remain, the department emphasises that South African consumers should have confidence in the safety of meat products and supports biosecurity measures to limit disease spread. Livestock owners are urged to adhere strictly to movement restrictions and hygiene protocols. The government and industry are working collaboratively to mitigate the impact of these crises on the meat sector and to protect the food security of all South Africans, especially vulnerable communities who rely on affordable protein sources.

SA meat processors body urges swift action to lift Brazil poultry ban as job losses mount
SA meat processors body urges swift action to lift Brazil poultry ban as job losses mount

TimesLIVE

time4 days ago

  • Business
  • TimesLIVE

SA meat processors body urges swift action to lift Brazil poultry ban as job losses mount

The South African Meat Processors Association (Sampa) has welcomed signs of progress in efforts to lift the ban on poultry and poultry-product imports from Brazil but has warned urgent action is needed to prevent further job losses and a shortage of affordable protein products. The government has banned poultry products from the South American country, which recently announced a bird flu outbreak in one of its regions. The agriculture department confirmed this week steps are being taken to resolve the import suspension, which was imposed in response to an outbreak of Highly Pathogenic Avian Influenza (HPAI), or bird flu, in Brazil. Sampa acknowledged the government's response and engagement but stressed that zoning — or regionalisation — must be implemented without delay to allow imports from unaffected areas of Brazil to resume. 'We urge the government to implement zoning (regionalisation) with all haste as the ban has placed more than 125,000 jobs at risk in the manufacturing sector, on top of the grave threat it poses to South Africa's food security.'

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