Who Owns Whom

Poultry Egg Industry South Africa

The Poultry and Egg Industry in South Africa 2023

Michael Felton | South Africa | 30 September 2023

The Poultry and Egg Industry in South Africa 2021

Gary Philips | South Africa | 30 June 2021

The Poultry and Egg Industry in South Africa 2019

Marc Bosman | South Africa | 11 June 2019

The Poultry and Egg Industry in South Africa 2017

Marc Bosman | South Africa | 30 August 2017

The Poultry and Egg Industry in South Africa 2016

Marc Bosman | South Africa | 22 August 2016

The Poultry and Egg Industry in South Africa 2015

Nina Shand | South Africa | 23 July 2015

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Report Coverage

This report on the poultry and egg industry in South Africa provides a comprehensive overview of production, consumption, flock numbers, revenue and volumes, prices, diseases including the latest avian flu outbreak, notable players and influencing factors such as economic factors, power cuts and infrastructure issues. There are profiles of 23 companies including major producers such as Astral, RCL and Country Bird, egg producers such as TopLay Egg Co-operative and Eggbert Eggs, and companies in the ostrich industry such as Cape Karoo International.

Introduction

• The poultry and egg industry is the largest contributor to the agricultural sector in South Africa.
• It is the second largest consumer of maize after human consumption, and supports many peripheral businesses.
• The industry is the primary supplier of quality, affordable protein to South Africans and there are over a million households engaged in some form of poultry production.
• The industry had been under pressure for a number of years following a severe drought and avian flu outbreaks.
• The most recent outbreak has seriously affected the operations of major poultry and egg producers, and is expected to lead to significant shortages and escalating prices.
• While local demand for poultry meat has steadily increased since 2008, there has been a growing presence of cheap imports.

Trends

• Automation and technology adoption are becoming more prevalent.
• Challenges from imports of cheap poultry products and trade protectionism.
• Disease management.
• Government policies and plans to grow the industry, especially controlling imports and stimulating export growth.
• Growing trend of consumers seeking healthier and more ethically produced poultry and eggs.
• Increased focus on food safety and quality, driven by consumer demand and regulatory requirements.
• Some large commercial producers are expanding production capacity and improving infrastructure.
• Sustainable production practices, environmental concerns and impact of poultry production and waste management.
• Volatility of feed prices affects profitability.

Opportunities

• Adaption of more sustainable and environmentally friendly products, through reduced waste, optimised feeding and renewable energy.
• Development of value-added poultry products for convenience-oriented consumers.
• Growing demand for free-range and organic chicken and eggs create diversification opportunities.
• Innovations in processing technology and packaging to improve shelf life, reduce waste and enhance product presentation.
• Potential to expand exports to neighbouring countries and international markets.
• Provision of biosecurity solutions to prevent and manage diseases.
• Provision of training and educational resources to assist new entrants.
• Research and development in poultry genetics, feed formulation and disease resistance.
• Technological integration, including data analytics, disease management and automation.
• Vertical integration.

Challenges

• Adherence to health, safety, and environmental regulations, as well as meeting quality standards.
• Avian flu and other poultry disease outbreaks.
• Changing consumer preferences for healthier, ethically produced and environmentally sustainable poultry and eggs.
• Competition from imported poultry products, putting pressure on local producers to remain competitive, leading to trade disputes over tariffs and quotas.
• Economic factors such as inflation, unemployment and purchasing power influence consumer spending.
• Electricity and fuel costs.
• Extreme weather events and environmental concerns affect production and feed availability.
• Finding skilled labour, especially in health management.
• Intense competition within the industry, along with periods of overproduction, puts pressure on prices and reduced profitability for producers.
• Maintaining stringent biosecurity measures.
• Price volatility due to feed costs, competition and market demand, affecting both producers and consumers.
• Road conditions and logistics.
• Securing financing for expansion, technological upgrades and modernisation.
• Volatile feed prices.

Outlook

• Continued margin pressure and rising input costs may result in consolidation, integration and concentration of market share.
• The recovery of consumer spending is critical to the industry’s outlook.
• The industry has called for tariff protection to achieve global cost competitiveness.
• High electricity, fuel and feed costs and power cuts have forced some producers to close.
• Major producers have warned that the avian flu outbreak will significantly affect production, supply, prices and their financial results.

Read More..
The Poultry and Egg Industry in South Africa
The Poultry and Egg Industry in South Africa 2023

Full Report

R 20 000.00(ZAR) estimated $1084.66 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 759.26 (USD)*

Industry Organograms

Historical Reports

The Poultry and Egg Industry in South Africa 2021-06-30

R 6 500.00(ZAR) estimated $352.51 (USD)*

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The Poultry and Egg Industry in South Africa 2019-06-11

R 1 900.00(ZAR) estimated $103.04 (USD)*

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The Poultry and Egg Industry in South Africa 2017-08-30

R 1 900.00(ZAR) estimated $103.04 (USD)*

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The Poultry and Egg Industry in South Africa 2016-08-22

R 1 900.00(ZAR) estimated $103.04 (USD)*

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The Poultry and Egg Industry in South Africa 2015-07-23

R 1 900.00(ZAR) estimated $103.04 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 2
2.1. Industry Value Chain 6
2.2. Geographic Position 10
2.3. Size of the Industry 12
3. LOCAL 20
3.1. State of the Industry 20
3.2. Key Trends 28
3.3. Key Issues 28
3.4. Notable Players 29
3.5. Trade 31
3.6. Corporate Actions 38
3.7. Regulations 39
3.8. Enterprise Development and Social Development 42
4. AFRICA 44
5. INTERNATIONAL 50
6. INFLUENCING FACTORS 57
6.1. Unforeseen Events 57
6.2. Economic Environment 58
6.3. Labour 60
6.4. Environmental Issues 64
6.5. Technology, R&D, Innovation 64
6.6. Government Incentives and Support 65
6.7. Poultry Health and Diseases 68
6.8. Animal Welfare 69
6.9. Transformation 69
6.10. Input Costs 70
7. COMPETITIVE ENVIRONMENT 71
7.1. Competition 71
7.2. Ownership Structure of the Industry 73
7.3. Barriers to Entry 73
8. INDUSTRY SUMMARY 75
9. OUTLOOK 76
10. INDUSTRY ASSOCIATIONS 77
11. REFERENCES 78
11.1. Publications 78
11.2. Websites 80
APPENDIX 1 81
Summary of Notable Players 81
COMPANY PROFILES 85
Afgri Poultry (Pty) Ltd 85
Alzu Ondernemings (Pty) Ltd 87
Arbor Acres South Africa (Pty) Ltd 90
Astral Operations Ltd 92
Boschveld Ranching (Pty) Ltd 95
Capekaroo International (Pty) Ltd 97
Country Bird Holdings (Pty) Ltd 100
Crown Chickens (Pty) Ltd 104
Dotcom Trading 988 (Pty) Ltd 106
Eggbert Eggs (Pty) Ltd 108
Elgin Poultry Abattoir (Pty) Ltd 110
Fourie's Poultry Farms (Pty) Ltd 112
Grain Field Chickens (Pty) Ltd 114
Hy-Line South Africa (Pty) Ltd 116
KB Baxter 118
Kuipers Group (Pty) Ltd 119
Pavati Trading 116 (Pty) Ltd 121
Quantum Foods (Pty) Ltd 123
RCL Foods Ltd 127
Roelcor Malmesbury (Pty) Ltd 132
Rossouw Pluimvee - Eiers (Pty) Ltd 134
Serfontein Poultry (Pty) Ltd 136
Top-Lay Eierkooperasie Beperk Primary Co-Operative 137

Report Coverage

This report focuses on the poultry and egg industry in South Africa, and includes comprehensive information on the state and size of the sector, company performance and corporate actions and trade, production, consumption and market share statistics. There are profiles of 23 companies including major players such as listed companies RCL Foods, Astral and Quantum, egg producers such as Rossouw Pluimvee - Eiers and Eggbert Eggs, and other chicken producers such as Country Bird and Crown Chickens.

Introduction

The poultry and egg industry is one of South Africa’s most important agricultural sub-sectors. With a total annual gross value of production close to R60bn in 2020, the industry accounted for one-fifth of total agricultural gross value and 40% of the gross value of all animal products in South Africa. It directly and indirectly employs in excess of 113,000 people. The industry is the primary supplier of quality, affordable protein to South Africans and there are over a million households in the country engaged in some form of poultry production, albeit mostly on a subsistence level. The country’s citizens consumed a total of 2.9 million tons of poultry and egg products in 2019 compared to a combined amount of 1.5 million tons of beef, pork, mutton and goat meat consumed in the same period. That said, the industry has been in distress for a number of years. The industry suffered the effects of a severe nationwide drought starting in 2015 before being hit by a devastating highly pathogenic avian influenza (HPAI) outbreak in 2017. All the while, as local demand for poultry meat has steadily increased since 2008, the industry has faced the growing presence of cheaply-priced imports. This has meant the increased demand has not been met by local production. Reducing consumer spending power over the past decade has added to the distress. Imports have targeted the low-priced brown meat bone-in products that are the mainstay of the local industry. The egg industry itself is not so much affected by imports but was more heavily hit the HPAI outbreak. The result is that in recent years, the industry has seen growth while at the same time experiencing local production capacity decline, consolidation and vertical integration. More recently, there are signs that prospects for the industry may improve. The coronavirus lockdown during 2020 reduced international poultry trade while causing an increase in demand for local poultry, in particular egg products. In 2019, industry stakeholders reached agreement on a way forward for this important industry in the South African Poultry Master Plan. This important action plan has already led to the initiation of a wholesale review of South Africa’s poultry tariff structure which is expected to lead to more protection for local industry and a reduction in imports. The future is not without its risks, however, as poor economic growth and constrained consumer spending will hamper recovery. In addition, at the time of writing this report, the industry was experiencing another round of HPAI outbreak in the Highveld. Although biosecurity since the 2017 outbreak has improved, the industry and the world is aware of the seriousness of such an outbreak and within days of the news, Namibia, Botswana and Mozambique already temporarily suspended importing South African poultry products.

Strengths

• Funding is available for smallscale farmers.
• Globally-competitive poultry production.
• Poultry dominates the animal protein market and per capita consumption of chicken and eggs has shown consistent growth.
• Strong government support to strengthen the industry.
• The poultry industry contributes to the economy, supporting the country’s strategic objectives of food security and job creation.
• The poultry industry is well-established, providing a solid platform for rural development and transformation.

Weaknesses

• Abattoirs and hatcheries not well located for smallholder farmers.
• Highly concentrated commercial sector.
• Low smallholder farmer participation and smaller producers have difficulty accessing markets.
• personnel, particularly veterinarians, and
• quality assurance inspectors.
• R&D, which is expensive, is required to improve production systems and efficiency of feed use.
• Shortage of skilled and experienced
• Slow pace of transformation in the sector.
• Some sectors are not competitive when faced with cheaper imports.
• The industry is very capital-intensive.

Opportunities

• Consumption and long-term volume growth is expected to recover as a result of new import protections, industry investment and increased per capita consumption through urbanisation.
• Rising consumer demand for poultry and shifts in consumption patterns away from protein alternatives such as red meat.

Threats

• Competition from cheap imports.
• Diseases and losses.
• Increasing foreign competition for local export markets.
• Increasing production costs, including rising electricity costs.
• Statutory compliance costs.

Outlook

The South African poultry and egg industry is a well-developed part of the economy with strong prospects and a positive outlook. The industry is set for growth but its outlook will depend on a number of factors. The successful implementation of the South African Poultry Master Plan will lead to increased investment in production capacity, reduced imports, increased export orientation, reduced feed costs as well as transformation and contract farming opportunities for small producers. This could lead to a reverse in trends experienced since 2008, and for the decade ahead, could mean that additional domestic demand is increasingly met by local production with a more inclusive industry structure providing affordable protein to consumers. Should the industry remain under the considerable margin pressure it currently experiences, where input costs are rising and producers are unable to pass these on through increased prices, the industry may well continue on its path of consolidation, integration and concentration of market share. The primary source of margin pressure is feed input costs and the structure and pricing of manufactured feed continues to play a significant role in determining the outlook of the industry. Likewise, the recovery of consumer spending is critical to the industry’s outlook and a period of strong economic growth in South Africa in the years ahead will go a long way to assisting the vision of the Master Plan being realised. The threat of avian flu outbreaks is ever present for the industry and urgent progress in improving biosecurity and surveillance will be vital to ensuring a more positive outlook for the industry. With an industry committed to making room for smaller entrants, a period of growth will also be vital for successful transformation. Finally, global trade will definitely influence the industry’s future outlook. An adequate tariff protection regime is vital but more so is the need for the industry to achieve global cost competitiveness, and successful export-orientation will be a significant part of the solution.

Read More..
The Poultry and Egg Industry in South Africa
The Poultry and Egg Industry in South Africa 2021

Full Report

R 6 500.00(ZAR) estimated $352.51 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 246.76 (USD)*

Industry Organograms

Historical Reports

The Poultry and Egg Industry in South Africa 2023-09-30

R 20 000.00(ZAR) estimated $1084.66 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2019-06-11

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2017-08-30

R 1 900.00(ZAR) estimated $103.04 (USD)*

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The Poultry and Egg Industry in South Africa 2016-08-22

R 1 900.00(ZAR) estimated $103.04 (USD)*

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The Poultry and Egg Industry in South Africa 2015-07-23

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 2
2.1. Industry Value Chain 5
2.2. Geographic Position 8
3. SIZE OF THE INDUSTRY 12
4. STATE OF THE INDUSTRY 27
4.1. Local 27
4.1.1. Corporate Actions 30
4.1.2. Regulations 31
4.1.3. Enterprise Development and Social Economic Development 32
4.2. Continental 34
4.3. International 35
5. INFLUENCING FACTORS 36
5.1. Coronavirus 36
5.2. Economic Environment 37
5.3. Rising Input Costs 38
5.4. Technology, Research and Development (R&D) and Innovation 39
5.5. Government Incentives and Support 40
5.6. Environmental Concerns 42
5.7. Labour 43
6. COMPETITION 45
6.1. Barriers to Entry 45
7. SWOT ANALYSIS 46
8. OUTLOOK 46
9. INDUSTRY ASSOCIATIONS 47
10. REFERENCES 48
10.1. Publications 48
10.2. Websites 49
APPENDIX 1 51
Summary of Notable players 51
ORGANOGRAMS 54
Poultry Abattoirs 54
Poultry and Eggs Industry 56
COMPANY PROFILES 58
AFGRI POULTRY (PTY) LTD 58
ALZU ONDERNEMINGS (PTY) LTD 60
ARBOR ACRES SOUTH AFRICA (PTY) LTD 63
ASTRAL OPERATIONS LTD 65
BOSCHVELD RANCHING (PTY) LTD 68
CAPEKAROO INTERNATIONAL (PTY) LTD 70
COUNTRY BIRD HOLDINGS (PTY) LTD 73
CROWN CHICKENS (PTY) LTD 77
DOTCOM TRADING 988 (PTY) LTD 79
EGGBERT EGGS (PTY) LTD 81
ELGIN POULTRY ABATTOIR (PTY) LTD 83
FOURIE'S POULTRY FARMS (PTY) LTD 85
GRAIN FIELD CHICKENS (PTY) LTD 87
HY-LINE SOUTH AFRICA (PTY) LTD 89
KB BAXTER 90
KUIPERS GROUP (PTY) LTD 92
PAVATI TRADING 116 (PTY) LTD 94
QUANTUM FOODS (PTY) LTD 96
RCL FOODS LTD 99
ROELCOR MALMESBURY (PTY) LTD 104
ROSSOUW PLUIMVEE - EIERS (PTY) LTD 106
SERFONTEIN POULTRY (PTY) LTD 108
TOP-LAY EIERKOOPERASIE BEPERK PRIMARY CO-OPERATIVE 109

Report Coverage

This report focuses on the poultry and egg industry with comprehensive information on the size and state of the industry, production, sales, import and export trends as well as market share information. The factors that influence the industry, including the effects of avian flu and tariffs, are discussed. There are comprehensive profiles of 18 companies including major chicken producers such as RCL Foods and Astral and dominant egg producer Quantum Foods. Other profiled companies Country Bird Holdings, which bought the Opti Agri, and Crown Chickens, trading as Sovereign Foods, which merged with the Cold Storage Group.

Introduction

This report focuses on the poultry and egg industry, the largest sub-sector of the South African agricultural sector. The poultry industry represented 16.6% or R47.9bn of the total gross value of 2018 agricultural production of R288.6bn and remains the largest animal production segment. Production of broilers (chicken) for slaughter was 6% up in 2018, a significant achievement following the avian influenza (AI) outbreaks, however this was offset by reduced consumption. Major industry players have reported mixed results. The industry suffered numerous casualties during the avian flu outbreaks, which were exacerbated by increased competition from imports. Approximately 55 small scale egg producers and a net 74 small scale broiler producers ceased operating during 2017, and the industry continues to consolidate. There is increasing pressure from rising input costs, particularly those for feed, transportation, energy and labour as well as declining consumer spending, although the industry was heading to a seasonal upturn in mid-2019. The greatest challenge to local producers remains surging imports of individually quick frozen, brined, brown chicken meat from various countries, which local producers and interested parties contend, is sold locally below the foreign cost of production through foreign government subsidies. While this benefits meat importers, those foreign exporters, consumers, local producers, importers and potential exporters continue to engage in heated public debate and legal action. Local producer interests are represented by the South African Poultry Association (SAPA) and not-for-profit organisation The FairPlay Movement, which in turn, is supported by interested industry stakeholders, not all of which are SAPA members and supported by organised labour, due to the loss of jobs in the formal poultry industry. The Association of Meat Importers and Exporters (Amie), which represents the interests of meat importers and exporters, finds support among foreign governments, foreign poultry producers and companies looking to grow poultry exports to South African Development Community (SADC) countries. The implications of the avian flu impacts and imports are evident in the performance of various industry players, from large players such as RCL Foods to small contract growers and is reflected in declining industry player and employee numbers. Foreign commentators note however that the local primary poultry industry has structural problems which affect its performance and are incorrectly ascribed to imports.

Strengths

• Funding is available for small-scale farmers.
• Globally competitive poultry production.
• Poultry dominates the animal protein market and per capita consumption of chicken and eggs has shown consistent growth.
• The poultry industry contributes to the economy, supporting the country’s strategic objectives of food security and job creation.
• The poultry industry is well-established, providing a solid platform for rural development and transformation.

Weaknesses

• Abattoirs and hatcheries not well located for smallholder farmers.
• Highly concentrated commercial sector.
• Low smallholder farmer participation and smaller producers have difficulty accessing markets.
• R&D, which is expensive, is required to improve production systems and feed conversion ratios.
• Shortage of skilled and experienced personnel, particularly veterinarians, and quality assurance inspectors.
• Slow pace of transformation in the sector.
• Some sectors are not competitive when faced with cheaper imports.
• Structural industry issues.
• The industry is very capital-intensive.

Opportunities

• Ability for well positioned fully integrated producers to expand.
• Africa is a growth market and expansion opportunities remain.
• Consumption and long-term volume growth is expected to continue as a result of the increase in population, urbanisation and therefore per capita consumption.
• Development of export market for pasteurised shell eggs.
• Raising of free-range and organic broilers and laying hens to meet growing demand for free-range poultry.
• Rising consumer demand for poultry and reduced consumption of red meat due to high cost and African swine fever outbreaks impact on pork production and availability.
• There is strong support from government for development of the poultry industry.

Threats

• Competition from uncontrolled influx of cheap imports.
• Diseases and losses.
• Increasing foreign competition for local export markets.
• Increasing production costs, including rising electricity costs.
• Pressure for antibiotic-free production and associated increased cost and production issues.
• Rising 2019 exports from the European Union as avian flu restrictions lifted.
• Statutory compliance costs.

Outlook

Industry insiders argue that the independent contract grower production segment is still susceptible to farm failures despite feed prices being at 2014 levels. This is a result of poor management, maintenance, high input costs, poor quality feed and low investment. The abattoir segment, depending on location, appears to be better off due to rising local production, despite rising imports. The egg sub-sector is expected to benefit from anti-cyclical growth in the current economic climate as cash-strapped and poor consumers move increasingly down the protein value chain. At the same time, analysts believe the fresh meat market will see growth because of the growing black middle class and increasing urbanisation. The local chilled poultry segment faces increased competition due to cheap imported mechanically deboned meat and bone-in chicken. Insiders believe this will not improve unless imports are stemmed through protective measures, although others argue structural issues will continue to plague the industry. SAPA argues that while the long-term sustainability of the industry is critical and protection is essential, particularly to support small and emerging farmers, the poultry industry has to become more competitive due to increasing foreign production and to capitalise on growth opportunities in Africa. Further contraction and concentration is inevitable as the larger value chain participants grow to encompass the entire value chain, squeezing out smaller players unless they choose to co-operate. The outlook for international trade in poultry meat is good due to a stable increase in global consumption and demand.

Read More..
The Poultry and Egg Industry in South Africa
The Poultry and Egg Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Historical Reports

The Poultry and Egg Industry in South Africa 2023-09-30

R 20 000.00(ZAR) estimated $1084.66 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2021-06-30

R 6 500.00(ZAR) estimated $352.51 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2017-08-30

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2016-08-22

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2015-07-23

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 2
2.1. Industry Value Chain 3
2.2. Geographic Position 6
3. SIZE OF THE INDUSTRY 7
4. STATE OF THE INDUSTRY 15
4.1. Local 15
4.1.1. Corporate Actions 21
4.1.2. Regulations 22
4.1.3. Enterprise Development and Social Economic Development 23
4.2. Continental 24
4.3. International 26
5. INFLUENCING FACTORS 29
5.1. Government Intervention 29
5.2. Health and Disease 30
5.3. Economic Environment 32
5.4. Input and Operating Costs 33
5.5. Labour 35
5.6. Technology, Research and Development (R&D) and Innovation 38
5.7. Cyclicality 39
5.8. Environmental Concerns 40
6. COMPETITION 40
6.1. Barriers to Entry and Moving up the Value Chain 41
7. SWOT ANALYSIS 42
8. OUTLOOK 43
9. INDUSTRY ASSOCIATIONS 44
10. REFERENCES 45
10.1. Publications 45
10.2. Websites 52
APPENDIX 1 54
Summary of Notable Players 54
COMPANY PROFILES 57
AFGRI POULTRY (PTY) LTD 57
ALZU ONDERNEMINGS (PTY) LTD 59
ARBOR ACRES SOUTH AFRICA (PTY) LTD 62
ASTRAL OPERATIONS LTD 64
BOSCHVELD RANCHING (PTY) LTD 67
COUNTRY BIRD HOLDINGS (PTY) LTD 69
CROWN CHICKENS (PTY) LTD 73
EGGBERT EGGS (PTY) LTD 75
ELGIN POULTRY ABATTOIR (PTY) LTD 77
FOURIE'S POULTRY FARMS (PTY) LTD 79
KLEIN KAROO INTERNATIONAL (PTY) LTD 81
KUIPERS GROUP (PTY) LTD 85
MOSSTRICH (PTY) LTD 87
PAVATI TRADING 116 (PTY) LTD 89
QUANTUM FOODS (PTY) LTD 91
RCL FOODS LTD 94
ROELCOR MALMESBURY (PTY) LTD 100
TOP-LAY EIERKOOPERASIE BEPERK 102

Report Coverage

This detailed report describes current conditions in the poultry and egg industry, the largest sub-sector of the South African agricultural sector. Factors influencing the success of the industry are discussed and include the recent outbreaks of Avian Influenza (AI), increases in the price of key raw material inputs following the 2016 drought and the surge in imports, especially of mechanically deboned meat and ‘bone-in chicken’ which is regarded as a ‘waste product’ in most developed countries. Also included in the report are profiles for 18 major local companies involved in the production of poultry meat, ostrich meat and eggs.

Introduction

This report focuses on the poultry and egg industry, the largest sub-sector of the South African agricultural sector. The combined gross value of fowls slaughtered, eggs produced, including eggs for hatching, and ostrich feathers and products amounted to R49.312bn in 2015/2016 and accounted for approximately 42.5% of the total gross value of all animal products. The industry sector, and the well-being of many industry players is being tested as a result of outbreaks of Avian Influenza (AI), increases in the price of key raw material inputs following the drought, and continuing imports. The implications for the industry and the country are profound, for the industry employs many, and is responsible for providing most of the animal protein consumed, with the largest proportion being consumed by the lower LSM categories.

Strengths

• Funding is available for small-scale farmers.
• Poultry dominates the animal protein market and per capita consumption of chicken and eggs has shown consistent growth.
• The poultry industry contributes to the economy, supporting the country’s strategic objectives of food security and job creation.
• The poultry industry is well-established, providing a solid platform for rural development and transformation.

Weaknesses

• Abattoirs and hatcheries not well located for smallholder farmers.
• Highly concentrated commercial sector.
• Low smallholder farmer participation and smaller producers have difficulty accessing markets.
• R&D, which is expensive, is required to improve production systems and feed conversion ratios.
• Shortage of skilled and experienced personnel, particularly veterinarians, and quality assurance inspectors.
• Slow pace of transformation in the sector.
• Some sectors are not competitive when faced with cheaper imports.
• The industry is very capital-intensive.

Opportunities

• Africa is a growth market and expansion remains relatively untapped.
• Consumption and long-term volume growth is expected to continue as a result of the increase in population, urbanisation and therefore per capita consumption.
• Development of export market for pasteurised shell eggs.
• Raising of free-range broilers and laying hens to meet growing demand for free-range poultry.
• Rising consumer demand for poultry.
• There is strong support from government for development of the poultry industry.

Threats

• Competition from uncontrolled influx of cheap imports.
• Diseases and losses.
• Increasing production costs, including rising electricity costs.
• Statutory compliance costs.
• USA obtaining full market access in Namibia thus threatening South Africa’s export status.

Outlook

Industry insiders argue the independent contract grower production segment is still susceptible to farm failures despite feed prices at 2014 levels as a result of poor management, maintenance and low investment while the abattoir segment is likely to face decreasing slaughters due to the increase in imports and the shortage of broilers. The egg sub-sector is expected to benefit from anti-cyclical growth in the current economic climate as cash-strapped and poor consumers move increasingly down the protein value chain to where the cheapest poultry resides. At the same time, analysts believe the fresh meat market will see growth because of the growing Black middle class and increasing urbanisation. The local chilled poultry segment faces increased competition due to cheap imported mechanically deboned meat and insiders believe this will not improve unless imports are stemmed through protective measures. However SAPA argues that while the long-term sustainability of the industry is critical, the poultry industry has to become more competitive.

Read More..
The Poultry and Egg Industry in South Africa
The Poultry and Egg Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Historical Reports

The Poultry and Egg Industry in South Africa 2023-09-30

R 20 000.00(ZAR) estimated $1084.66 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2021-06-30

R 6 500.00(ZAR) estimated $352.51 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2019-06-11

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2016-08-22

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2015-07-23

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 7
4. STATE OF THE INDUSTRY 13
4.1. Local 13
4.1.1. Corporate Actions 18
4.1.2. Regulations 18
4.1.3. Enterprise Development and Social Economic Development 20
4.2. Continental 21
4.3. International 24
5. INFLUENCING FACTORS 25
5.1. Government Intervention 25
5.2. Imports 27
5.3. Disease 28
5.4. Economic Environment 30
5.5. Input and Operating Costs 31
5.6. Labour 31
5.7. Technology, Research and Development (R&D) and Innovation 34
5.8. Cyclicality 35
5.9. Environmental Concerns 35
6. COMPETITION 36
6.1. Barriers to Entry and Moving up the Value Chain 37
7. SWOT ANALYSIS 37
8. OUTLOOK 38
9. INDUSTRY ASSOCIATIONS 39
10. REFERENCES 39
10.1. Publications 39
10.2. Websites 44
APPENDIX 1 45
Examples of Outbreaks of AI 45
COMPANY PROFILES 47
AFGRI POULTRY (PTY) LTD 47
ALZU ONDERNEMINGS (PTY) LTD 49
ARBOR ACRES SOUTH AFRICA (PTY) LTD 52
ASTRAL OPERATIONS LTD 54
BOSCHVELD RANCHING (PTY) LTD 57
COUNTRY BIRD HOLDINGS (PTY) LTD 59
CROWN CHICKENS (PTY) LTD 63
EGGBERT EGGS (PTY) LTD 66
ELGIN POULTRY ABATTOIR (PTY) LTD 68
FOURIE'S POULTRY FARMS (PTY) LTD 70
KLEIN KAROO INTERNATIONAL (PTY) LTD 72
KUIPERS GROUP (PTY) LTD 75
MOSSTRICH (PTY) LTD 77
PAVATI TRADING 116 (PTY) LTD 79
QUANTUM FOODS (PTY) LTD 81
RCL FOODS LTD 84
ROELCOR HOLDINGS (PTY) LTD 89
TOP-LAY EIERKOOPERASIE LTD 91

Report Coverage

The Poultry and Egg Industry considers the current circumstances confronting industry players and the various approaches being adopted in response. The report profiles 16 industry players, including chicken meat market leaders RCL Foods, Country Bird Holdings, Astral Foods and Quantum Foods, Egg industry leaders, Quantum Foods, Top Lay, Alzu Eggs and Kuipers Group, and Ostrich industry players Roelcor Holdings, Mosstrich and Klein Karoo International.

Introduction

This report focuses on the poultry and egg industry, the largest agricultural sector in South Africa. The Department of Agriculture, Forestry and Fisheries (DAFF) reports the industry contributed 42% of gross agricultural animal product and almost 21% of total agricultural gross product value in 2015, with the poultry meat sector delivering gross value of R38.8bn and the egg sector R9.8bn. The industry sector, and the well-being of many industry players is currently severely challenged by the effects of the drought, escalating feed prices, tight operating margins, new brining regulations, increasing imports and production management labour issues, all of which have directly or indirectly resulted in considerable corporate action over the period, with ongoing industry consolidation forecast.

Strengths

• Funding is available for small-scale farmers.
• Poultry dominates the animal protein market and per capita consumption of chicken and eggs has shown consistent growth.
• The poultry industry is a major contributor to the economy, supporting the country’s strategic objectives of food security and job creation.
• The poultry industry is well-established, providing a solid platform for rural development and transformation.
• There is a fast growing and healthy demand for poultry in the convenience food sector.

Weaknesses

• Low import tariffs have led to dumping and high levels of cheap imports.
• Smaller producers have difficulty accessing markets.
• The excessive brining of meat has tainted the industry image.
• The industry is very capital-intensive and will become more so to accommodate ABF and Cage free environments.
• There exists a shortage of skilled personnel, particularly veterinarians, and quality assurance inspectors.

Opportunities

• Africa is a growth market and expansion remains relatively untapped.
• Consumption and long-term volume growth is expected to continue as a result of the increase in population, urbanisation and therefore per capita consumption.
• Development of export market for pasteurised shell eggs.
• Raising of free-range broilers and laying hens to meet growing demand for free-range poultry.
• There is strong support from government for development of the poultry industry.

Threats

• Antibiotic free chicken.
• Antibiotic resistance affecting production.
• Cage Free birds and cost and health implications.
• Competition from uncontrolled influx of cheap imports.
• Rising production costs, including electricity and feed, as well as exchange rate volatility.
• The cost implication of the new brining injection cap.
• The cost of compliance with various new Acts.

Outlook

Generally, meat consumption is expected to increase in the next decade, driven by income growth and urbanisation. However trading conditions will continue to be tough with consumers under pressure, the industry must therefore become more competitive according to SAPA. The AGOA imports along with those from an increasing list of countries will continue to impact the industry and increasing consolidation looks set to continue for the foreseeable future. Only the best producers will escape unscathed. The poultry and egg industry is critical to the economy for it provides employment and food security, accordingly, SAPA argues, the long-term sustainability of the industry is critical. The contract grower production segment will continue to see farm failures due to escalating feed costs, poor management and labour challenges. The abattoir segment will face decreasing slaughters due to increasing imports and industry analysts note further casualties are imminent. The industry will struggle to absorb cost increases which will be difficult to pass on to consumers. The Chilled poultry meat processing segment faces increased competition from private label brands, low economic growth and reduced consumer spending. Those industry players with access to capital will continue to grow through diversification, mergers and acquisition, others will focus on survival, attempting to maintain market share, while cutting costs and trying to improve efficiencies. A considerable amount of state, public and private investment in the poultry sector has already been lost through failed farming operations, many of which are in the private domain and not easily quantified, this trend appears to be set to continue.

Read More..
The Poultry and Egg Industry in South Africa
The Poultry and Egg Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Historical Reports

The Poultry and Egg Industry in South Africa 2023-09-30

R 20 000.00(ZAR) estimated $1084.66 (USD)*

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The Poultry and Egg Industry in South Africa 2021-06-30

R 6 500.00(ZAR) estimated $352.51 (USD)*

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The Poultry and Egg Industry in South Africa 2019-06-11

R 1 900.00(ZAR) estimated $103.04 (USD)*

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The Poultry and Egg Industry in South Africa 2017-08-30

R 1 900.00(ZAR) estimated $103.04 (USD)*

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The Poultry and Egg Industry in South Africa 2015-07-23

R 1 900.00(ZAR) estimated $103.04 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 17
4.1.2. Regulations 20
4.1.3. Enterprise Development and Social Economic Development 23
4.2. Continental 24
4.3. International 27
5. INFLUENCING FACTORS 28
5.1. Government Intervention 28
5.2. AGOA and Chicken Imports 30
5.3. Drought and Climate Change 31
5.4. Diseases, Antibiotics, Cage Free and Free Range Chickens 31
5.5. Increasing Input and Operating Costs 33
5.6. Labour 36
5.7. Cyclicality 39
5.8. Economic Environment 39
5.9. Technology, Research and Development (R&D) and Innovation 40
5.10. Environmental Concerns 42
6. COMPETITION 42
6.1. Barriers to Entry and Moving Up the Value Chain 42
7. SWOT ANALYSIS 43
8. OUTLOOK 44
9. INDUSTRY ASSOCIATIONS 44
10. REFERENCES 45
10.1. Publications 45
10.2. Websites 46
COMPANY PROFILES 48
Afgri Poultry (Pty) Ltd 48
Alzu Ondernemings (Pty) Ltd 50
Astral Operations Ltd 53
Boschveld Ranching (Pty) Ltd 56
Country Bird Holdings (Pty) Ltd 58
Crown Chickens (Pty) Ltd 61
Elgin Poultry Abattoir (Pty) Ltd 64
Fourie's Poultry Farms (Pty) Ltd 66
Klein Karoo International (Pty) Ltd 68
Kuipers Group (Pty) Ltd 71
Mosstrich (Pty) Ltd 73
Pavati Trading 116 (Pty) Ltd 75
Quantum Foods (Pty) Ltd 77
RCL Foods Ltd 80
Roelcor Holdings (Pty) Ltd 85
Top-Lay Eierkooperasie Ltd 87
0

Report Coverage

This report focuses on the poultry and egg industry, the current state of the sector, developments within the sector and factors influencing the success of the industry. The report also profiles 13 industry players, ranging from RCL Foods Ltd which raises 208 million chicks per annum to emerging producer Red Barn Farms based in the Western Cape which produces chicks and eggs and employs six people.

Introduction

This report focuses on the poultry and egg industry, the largest agricultural sector in South Africa. Chicken is the nation’s choice of meat protein, more than all other red meats combined, and eggs are fourth. Each South African consumes an average of 37kg of poultry meat, most of which is chicken, and 9kg of eggs per year. The sector contributed 22% of total agricultural gross value and 47% of animal product gross value in 2013. Combined, the industry directly and indirectly employs approximately 540,000 people. It is with some justification that the poultry industry can claim to feed the nation. However, profitability in the industry in the industry remains constrained and is heavily dependent on the price of chicken feed and on protectionist tariffs and anti-dumping duties.

Strengths

• Funding is available for small-scale farmers.
• Poultry dominates the animal protein market and per capita consumption of chicken and eggs has shown consistent growth.
• The poultry industry is a major contributor to the economy, supporting the country’s strategic objectives of food security and job creation.
• The poultry industry is well-established, providing a solid platform for rural development and transformation.
• There is a fast growing and healthy demand for poultry in the convenience food sector.

Weaknesses

• It is difficult for smaller producers to access markets.
• Low import tariffs have led to dumping and high levels of cheap imports.
• The excessive brining of meat has tainted the industry.
• The industry is capital-intensive.
• There exists a shortage of skilled personnel, particularly veterinarians and quality assurance inspectors.

Opportunities

• Africa is a growth market and expansion remains untapped.
• Consumption and long-term volume growth is expected to continue as a result of the increase in population and therefore per capita consumption.
• Development of export market for pasteurised shell eggs.
• Raising of free-range broilers and laying hens to meet growing demand for free-range poultry.
• There is strong support from government for development of the poultry industry.

Threats

• Competition from uncontrolled influx of cheap imports.
• Soaring production costs, including electricity and feed, as well as exchange rate volatility.
• The cost implication of the new brining injection cap.
• The cost of compliance with various new Acts.

Outlook

Generally, meat consumption is expected to increase in the next decade, with income growth seen as the main driver. Chicken remains the most affordable animal protein and consumption is expected to increase by 34% over the next decade, accounting for 73% of additional meat consumed by 2023. Domestic egg consumption is expected to increase over the next decade by 27%, exceeding 540,000 tons, equivalent to more than 10kg per capita. However, the industry will no longer be protected against imports from the USA as AGOA has been extended for a further ten years, based on an agreement reached which allows for the importation of 65,000 tons of chicken pieces from the United States. This agreement is important not only for South Africa, but also for sub-Saharan Africa, and while it may harm the domestic poultry industry, analysts assert it will save jobs in other sectors. At the same time, the poultry and egg industry is pivotal in the economy as it provides employment and food security. Therefore, its long-term sustainability needs to be prioritised, according to SAPA, which ultimately means improving the competitiveness of the industry.

Read More..
The Poultry and Egg Industry in South Africa
The Poultry and Egg Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Historical Reports

The Poultry and Egg Industry in South Africa 2023-09-30

R 20 000.00(ZAR) estimated $1084.66 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2021-06-30

R 6 500.00(ZAR) estimated $352.51 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2019-06-11

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2017-08-30

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Poultry and Egg Industry in South Africa 2016-08-22

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 13
4.1.2. Regulations & Government programmes 14
4.1.3. Enterprise Development and Social Economic Development 17
4.2. Continental 20
4.3. International 22
5. INFLUENCING FACTORS 24
5.1. Economic Environment 24
5.2. Input costs 25
5.3. Imports and Exports 25
5.4. Poultry Disease Management 29
5.5. Ethical Consideration 29
5.6. Labour 31
5.7. Environmental Concerns 32
6. COMPETITION 33
6.1. Barriers to Entry 33
6.2. Research and Development (R&D) and Innovation 34
7. SWOT ANALYSIS 36
8. OUTLOOK 37
9. INDUSTRY ASSOCIATIONS 37
10. REFERENCES 38
10.1. Publications 38
10.2. Websites 39
ORGANOGRAM 40
COMPANY PROFILES 42
AFGRI POULTRY (PTY) LTD 42
ALZU ONDERNEMINGS (PTY) LTD 44
ASTRAL FOODS LTD 47
BOSCHVELD RANCHING (PTY) LTD 52
COUNTRY BIRD HOLDINGS LTD 54
CROWN CHICKENS (PTY) LTD 57
EGGBERT EGGS (PTY) LTD 59
ELGIN FREE RANGE CHICKENS (PTY) LTD 61
FOURIE'S POULTRY FARMS (PTY) LTD 63
PAVATI TRADING 116 (PTY) LTD 65
QUANTUM FOODS (PTY) LTD 67
RCL FOODS LTD 70
TOP-LAY EIERKOOPERASIE BPK 75