Poultry meat prices in South Africa experienced an exceptional increase in the three months to end March this year due to steady import demand from leading importing countries, the National Agricultural Marketing Council (NAMC) said on Friday.
According to the NAMC’s Poultry Products Price Monitor, domestic producer prices for whole fresh chicken, frozen chicken and IQF chicken pieces increased by 9.40%, 7.54%, and 2.54% respectively during the first quarter of this year, compared to the final quarter of last year.
The report tracks the cost of different chicken meat products in South Africa, compares them to current global poultry market trends and makes appropriate recommendations.
The NAMC said the recent trend in producer prices could be attributed to several factors.
“Notably, the recent drought incidents disrupted feed production in numerous places around the world, which led to increased cost of certain inputs,” it said.
“For example, global maize export prices rose slightly in March due to logistical challenges in Ukraine, affecting feed prices in South Africa.”
When comparing retail prices per kilogram for the first quarter of 2024 to the first quarter of 2023, the NAMC said the price for whole chicken, non-IQF frozen chicken portions, fresh chicken portions, chicken giblets and IQF chicken portions increased by 8.63%, 8.01%, 7.12%, 6.03% and 2.54% respectively.
According to SA Revenue Service (Sars) figures, on a year-to-year basis SA imported 98 139 tons of chicken meat in the first quarter of this year compared to the same period last year.
“This reflects a decrease of 19.9% when compared to the 122 460 tons imported in quarter 1 of 2023,” the NAMC said.
“The main products contributing to the observed decrease in chicken meat imports during Q1 were boneless chicken (other), which decreased by 71%, followed by frozen chicken leg quarters, frozen chicken feet and frozen chicken thighs, which decreased by 62%, 26% and 22%, respectively.”
However, when comparing the first quarter of 2024 to the fourth quarter of 2023, SA’s chicken meat imports increased by 11.8%, rising from 87 771 tons to 98 139 tons.
During this period, frozen chicken thighs, frozen chicken carcasses, and boneless chicken breasts were the main drivers of the observed rise in imports, increasing by 183%, 139%, and 137% respectively.
The report warned that the avian influenza outbreak and the current drought remained significant challenges for the SA poultry industry, and were putting pressure on chicken product prices.
Last week, local agricultural association Agri SA said the livestock and poultry sub-sector formed nearly half of the SA agricultural economy, and therefore biosecurity should be recognised as one of the most pressing challenges because the country’s food security and export potential depended on it.
According to the NAMC’s report, the majority of SA’s population obtain affordable animal protein from poultry products, thereby making it crucial for maintaining and improving the country’s food security status.
BUSINESS REPORT