The local poultry industry, despite years of pressure from dumping, drought, rising feed costs, energy constraints and avian influenza, has long been globally competitive and technically efficient.
According to the latest update of the Bureau for Food and Agricultural Policy’s (BFAP) 2025 Competitiveness Benchmark Report, created in collaboration with Wagenen University in the Netherlands, the sector has consistently outperformed European producers, historically ranked behind Brazil and the United States, and has now surpassed the US.
SA Poultry Association CEO, Izaak Breitenbach, said the country was one of the most technically efficient poultry producers globally.
“The report finds that the country achieved the lowest feed conversion ratio among all major producing nations assessed, including the Netherlands, Germany, Poland, the United States, and Brazil,” Breitenbach said.
This means producers use less feed to produce a kilogram of chicken than their global counterparts.
According to the report, the industry’s production cycle, averaging 31.5 days, is also the shortest of all countries studied, while carcass weights have increased by 4.5% over the past decade. Feed conversion efficiency has improved by 14.1% over the same period, underscoring continuous advancements in genetics, management practices, and production technology.
“Input costs account for approximately 70% of the cost of rearing a bird; as such, feed costs remain the dominant driver of overall production costs, but the report highlights that efficiency gains have mitigated much of the impact of price volatility,” said Breitenbach.
Although the nominal price of feed rations in 2024 was 26% higher than in 2015, the feed-related cost per kilogram of chicken produced increased by only 8% because of the improved conversion efficiency. This reflects the sector’s investment in better production systems and its ability to sustain technical competence and competitiveness under adverse cost conditions.
The cost of producing chicken in South Africa remains higher than in Brazil – the world’s leading exporter – but it is now lower than in the United States and substantially below three European benchmark countries, despite government subsidies in these markets.
In addition, the cost differential to Brazil narrowed steadily until 2023 and, although it widened again in 2024 due to drought-related feed price increases, the long-term trend indicates a strengthening competitive position. Feed costs remain the largest variable in this comparison and improvements in local soybean processing are expected to support further gains in the near future.
Feed and day-old chick costs together account for just over 80% of total production costs, a similar share to that observed globally.
The report attributes South Africa’s relative cost improvement to both feed efficiency gains and lower slaughter and labour costs, which offset higher input and housing costs.
BFAP noted in its report that the period under review had been marked by significant headwinds.
Loadshedding in 2023 increased the cost of feed milling and hatchery operations, while the drought of 2024 curtailed maize and soybean production, pushing feed prices above export parity levels at a time when global prices were declining.
The report also records the impact of the 2023 outbreak of Highly Pathogenic Avian Influenza (bird flu), which led to the culling of 3.5 million broiler breeder birds – approximately 45% of the national flock – and temporarily raised day-old chick prices as imports of fertile eggs were permitted to ensure continuity of supply.
Housing and capital costs rose sharply because of higher interest rates, while the depreciation of the rand compounded imported input costs.
“Despite these pressures, the broiler industry maintained production growth and preserved its competitiveness,” said Breitenbach.
The report concludes that the poultry industry’s progress over the past decade is the result of sustained investment and structural reform, despite conditions of constrained consumer spending, high input costs and recurring external shocks.
Production increased by 11.8% over the past ten years, outpacing consumption growth by 8.8%.
As domestic demand stabilises and opportunities for import replacement narrow, future growth will depend increasingly on the industry’s ability to compete in export markets.
With feed prices beginning to moderate, improvements in macroeconomic conditions, and the sector’s capacity for technical and economic adaptation, the industry is positioned for continued recovery and growth.
“South Africans can be proud their poultry industry is the second-most-competitive poultry producer in the world. All it needs now is Minister Steenhuisen’s assistance with the facilitation of exports and bird flu vaccinations. That is the only way the local industry will improve its competitiveness,” said Breitenbach.
