SA consumers warned to hold onto their rands as chicken prices expected to rise
DUE to inflation and strong demand, chicken meat prices have risen dramatically in recent years – and experts have recently warned of another further rise.
Chicken is an essential source of affordable protein for millions of households in South Africa, but leading importer-exporter Hume International warns that this may not be the case for much longer.
Managing director of Hume International, Frederick Hume said as chicken production costs continue to soar, countless South Africans may soon be priced out altogether or leave protein off their plates.
To protect against rising prices while meeting the country’s high demand for chicken, Hume urges the government to consider lowering or suspending the steep import duties levied against the US.
“Combined with raising the maximum quota for bone-in chicken, this could lower the price of chicken per kilogram by doubledigit figures within a few months, considerably easing the burden on consumers’ wallets,” he said.
Hume International revealed in a statement that chicken prices have seen sharp increases over the past few years with no signs of slowing.
They revealed that in the past year, the price of frozen chicken portions has risen 9% on top of the 12% price hikes seen in 2021, and additionally, poultry contributed a staggering 12% to total food inflation this year, compared to beef at 8% and fish at 2%, as reported by the Bureau for Food and Agricultural Policy (BFAP).
“No one can fault the local industry for increasing prices, as producers are facing surging input costs. We have seen record high fuel prices, an erratic energy supply, poor water quality and supply, and sharply escalating farm feed prices which contribute approximately two-thirds to the cost of producing chicken.
“Local chicken producers can only supply so much. So, considering the price pressure they’re under, assistance must come from the import sector, which is facing considerable challenges of its own in the form of global supply chain constraints.
“But without these imports supplementing the local market, we cannot ensure ongoing food security in the country or protect against price hikes, which will both impact vulnerable low-income households first.” .