Feb 8, 2017
The poultry industry in the Republic of South Africa will be forced to reduce production and close non-profitable complexes and plants. This is due to increasing labor costs, losses associated with high ingredient prices as a result of the 2015/2016 drought and imports from the EU and Brazil,
The Government of South Africa has implemented a crisis team to address the various issues facing broiler production. Short of imposing Draconian restrictions on importation it appears that little can be done, given the prevailing law of supply and demand and the realities of production costs selling prices and margins.
It is important for the ruling African National Congress Party to continue to provide protein to citizens of the nation since slogans lack calories and protein. Unfortunately with increasing production costs it is inevitable that wholesale prices will rise in the absence of a less expensive source of alternatives to domestic supplies. Special commissions create the illusion of imminent solutions but lack substance.