The South African poultry industry – the second-largest agricultural sub-sector contributing to the economy – has grown to be a R59 billion industry over the last three years, thanks mainly to additional investments made by the industry’s participants.At a State of the Poultry Industry Roundtable on Wednesday, the South African Poultry Association revealed that the industry invested R1.
“We also had extremely high raw material prices; these prices are at record levels and that impacts the industry negatively,” Breitenbach added.alone is costing poultry producers 75 cents per kilogram of chicken produced, according to Sapa, chipping away at the R29 that producers are believed to be making on average per kilogram sold.
“Consumer demand at present is down due to the high prices of chicken and cold storage facilities are full ofAn epic cluck up! – 10 million chickens had to be ‘disposed of’ because of load sheddingAnother load shedding-related issue costing farmers is the disruption to slaughtering schedules. Because of erratic power outages, farmers are often unable to slaughter birds once they reach the desired maturity.
“That reduced production. The value of the reduced production was 13 million birds during December and January. That is extreme and that is not reflected in the [load shedding cost] number that I have used of 75 cents per kg of chicken produced.”Price battle However, according to the industry body, much of these price increases – driven by elevated raw material costs – are being subsidised by the local producers, with an assessment of consumer behaviour revealing that consumers are growing more resistant to price hikes.
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