Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Categories
    • Categories
    • Africa
    • Air Freight
    • BEE
    • Border Beat
    • COVID-19
    • Crime
    • Customs
    • Domestic
    • Duty Calls
    • Economy
    • Employment
    • Energy/Fuel
    • Events
    • Freight & Trading Weekly
    • Imports and Exports
    • Infrastructure
    • International
    • Logistics
    • Other
    • People
    • Road/Rail Freight
    • Sea Freight
    • Skills & Training
    • Social Development
    • Sustainability
    • Technology
    • Trade/Investment
    • Webinars
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines
Imports and Exports

Supply-related poultry price impacts expected to ease

11 Sep 2024 - by Staff reporter
 Source: Wattagnet
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

Poultry price increases are expected to ease after experiencing double-digit hikes over the past two years. 

This is according to the latest Absa AgriTrends Report, which forecasts that a stronger rand and robust growth in production by key global suppliers such as Brazil, could see the average price of some categories of chicken products increase by just over 1% in 2024.

Absa AgriBusiness senior economist Marlene Louw said, in recent times the outbreak of diseases like Avian influenza had caused a global shortage of poultry, which has put upward pressure on prices.

“While potential new disease outbreaks may change the price outlook going forward, all things being equal, we expect that lower feed prices will improve margins for producers, which could stimulate supply,” said Louw.

“This could in turn assist in keeping price increases contained over the medium term, which is good news for consumers.” 

Louw said chicken accounted for roughly two-thirds of meat consumed in South Africa and about 20% of local consumption was serviced through imports – mostly frozen bone-in portions. This means any supply interruption could have a meaningful impact on price movements.

In July this year, Brazil experienced a case of New Castle disease and although it was an isolated incident, trade was suspended for 21 days.  

“With around 400 000 tonnes of chicken being exported out of Brazil each month, the event highlighted the importance of Brazil as a key exporter servicing the global market,” said Louw.

“South Africa is especially vulnerable to export disruptions out of Brazil. In 2023, more than three-quarters of chicken imports to South Africa, came from the southern American agricultural giant.”

There have been growing calls for chicken pieces to be zero-rated for value added tax.

However, Louw said while the importance of food affordability was acknowledged, it was vital to note that a change of this nature could have unintended consequences.

For example, price changes of products are likely to alter consumption patterns, which could impact prices and margins of other meat products.

Louw added that policies that supported and enabled efficient broiler production, such as effective and agile disease management and sound service delivery, would also limit price increases of chicken products.

This would likely have a less distortive effect on relative prices and margins and contribute to providing consumers with price relief. 

Average chicken prices (2021-2023) and price forecasts (2024-2027) 

  

Frozen Whole Bird (R/kg) 

Fresh Whole Bird (R/kg) 

IQF (R/kg) 

2021 

29.22 

29.66 

25.4 

2022 

32.3 

32.6 

29 

2023 

35.79 

35.71 

30.8 

2024 

36.20 

35.30 

31.15 

2025 

37.58 

36.54 

32.02 

2026 

39.00 

37.52 

32.82 

2027 

39.78 

38.12 

33.15 

Source: Absa AgriBusiness, 2024 

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

New bridge heralds forward leap for Lake Vic logistics

Infrastructure
Logistics
Road/Rail Freight

It includes an additional 1.66 kilometres of connecting approach roads.

23 May 2025
0 Comments

Hammer and gavel wait for logistics parastatal's properties

Logistics

The ports and rail operator is disposing of residential houses, hostels, lodges and line camps.

23 May 2025
0 Comments

Presidency takes over oil and gas oversight in Namibia

Africa
Logistics

Logistics operators have said the president’s decision has clearly signalled the sector’s growing importance.

23 May 2025
0 Comments

South Africa bans Brazilian poultry imports

Imports and Exports

Trade has been suspended to prevent the spread of avian flu that the country is currently battling.

22 May 2025
0 Comments

Tanzania refutes reciprocal trade embargo against SA’s ‘banana ban’

Imports and Exports

Recent reports indicated that Tanzanian was considering restrictions on South African imports.

22 May 2025
0 Comments

Ramaphosa underpins importance of duty-free trade with the US

Economy
Trade/Investment

The current threat to the duty-free framework includes 32 other African economies.

22 May 2025
0 Comments

Godongwana’s fuel levy hike to hit consumers hard

Domestic
Economy
Energy/Fuel

The increase adds 16 cents and 15 cents to the price of petrol and diesel respectively.

22 May 2025
0 Comments

Efficiency key to logistics success as Namibia eyes growth

Africa
Logistics

It’s critical to address NTBs as a matter of urgency. – Harold Schmidt, NLA.

22 May 2025
0 Comments

Container vessel remains detained in Malaysia

Logistics
Sea Freight

The captain, a Russian national, failed to present any documents authorising the anchorage.

22 May 2025
0 Comments

Improved weather boosts soybean harvest across South Africa

Imports and Exports

Total deliveries last Friday were 1.5 million tonnes – a 10% increase on the same period last year.

22 May 2025
0 Comments

Trump meeting hailed as a ‘great success’

Trade/Investment

The president said the meeting had fulfilled South Africa’s key objectives to reset its relationship with the United States.

22 May 2025
0 Comments

Trump talks: SA delegates put on strong show despite initial drama

Freight & Trading Weekly
International

That the US President would go for the jugular about the treatment of white farmers was to be expected.

21 May 2025
0 Comments
  • More

FeatureClick to view

Durban & Richards Bay 6 June 2025

Border Beat

Zim's anti-smuggling measures delay legitimate freight operations
06 Jun 2025
Cross-border payments remain a hurdle – Masondo
30 May 2025
BMA steps in to help DG and FMCG cargo at Groblersbrug
21 May 2025
More

Featured Jobs

New

Seafreight Import / Export Controller DBN

Tiger Recruitment
Durban
09 Jun
New

Transport Operations Manager

Lee Botti & Associates
Durban
09 Jun
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us