South Africa’s poultry industry, a critical pillar in the nation’s agrarian landscape, is traversing through tumultuous times, plagued by rampant avian flu outbreaks and persistent power cuts. The widespread affliction of poultry by avian flu and relentless power cuts have triggered unprecedented challenges, inciting distress among poultry farmers and retailers. These disturbances portend severe repercussions, prompting warnings of escalating egg and chicken prices.
South Africa has been grappling with the third cycle of avian flu, with the deadlier H7N6 strain surfacing in June 2023. The provinces of South Africa, especially Mpumalanga, have witnessed recurring outbreaks of this flu, escalating to the culling of millions of chickens. By mid-September, the nation faced a staggering loss of 15% to 20% of its national chicken population, culminating in grave shortages in egg and poultry supplies.
Astral Foods, one of the leading chicken producers in the country, has explicitly highlighted the palpable impacts of bird flu on the poultry industry. The flu has not only truncated the supply of table eggs but is anticipated to detrimentally impact the poultry meat supply in the imminent months. The company’s financial performance has also been severely hampered, owing to the dual adversities of bird flu and increased operational costs emanating from power cuts.
The unremitting power cuts have compelled companies like Astral Foods to resort to diesel generators, incurring a staggering ZAR 45m each month. These operational tribulations, coupled with losses due to bird flu, are overshadowing the sector’s financial stability and operational efficiency.
The consequential shortage in egg and poultry supply has left retailers alerting consumers about potential empty shelves. Several major retailers, including Spar and Woolworths, have raised red flags about the impending shortage, with notices inside shops echoing the looming crisis.
South Africa’s stature as the 36th largest exporter of eggs in the world is also under jeopardy. In 2021, the nation’s main egg export market, Mozambique, instituted a ban on live bird imports and imports of meat, eggs, and feathers from South Africa due to a reported outbreak of highly pathogenic bird flu. This ban significantly impacted the nation’s export levels, especially considering Mozambique accounted for 62% of South Africa’s egg exports.
The South African Poultry Association remains vigilant about the unfolding scenario, particularly emphasizing the extensive impacts of the disease on the poultry sector. Dr. Abongile Balarane, from the SA Poultry Association, stresses the monumental repercussions of the disease on the poultry industry, highlighting the strain it is inflicting on the industry’s sustainability.
The discernible impact on the consumers is the augmentation in egg and chicken prices. Mintec’s price data reveals a significant year-on-year rise in South Africa’s chicken price to ZAR 34.80/kg, marking a 10.8% increase. The consumers are bracing themselves for the impact of the dual woes of avian flu and power cuts, reflected in heightened prices and dwindling supplies.
South Africa’s poultry producers are navigating through a turbulent phase, marked by the burgeoning avian flu and persistent power cuts. The confluence of these adversities is reshaping the poultry landscape, escalating operational costs, straining supplies, and stressing the economic fabric of the sector. As the country teeters on the edge of a poultry crisis, heightened vigilance, strategic interventions, and resilient adaptations are crucial to mitigating the multifaceted impacts of the ongoing challenges.
Image Credit: Brooke Cagle on Unsplash
