Rising oil prices adds to SA’s avian flu woes: Difficult time ahead for poultry, egg industry

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With SA already dealing with the threat of load shedding, producers now have to contend with rising oil prices and avian flu.

Makube says that if the situation persists, this grim statistic may continue to climb, potentially leading to dire financial consequences for producers already grappling with financial strains.

He said that the resurgent Brent crude oil price surged by a staggering 7.5% month-on-month in August 2023, reaching a high of US$90 per barrel. “The concurrent reduction in bird numbers due to the avian flu outbreak will result in diminished incomes, posing a real threat of financial ruin for many industry players,” Makube said.For consumers who were hoping for a respite from rising food prices, the situation is grim.

“This unwelcome development promises to put upward pressure on food inflation, which had seen a modest decline from its peak of 14.4% year-on-year in 2023 to 8.2% year-on-year in August 2023,” the agriculture economist said.

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