Increase in SA soya bean plantings no chickenfeed
SOUTH Africa’s strong soya bean production would not offer any immediate input-cost respite for poultry farmers, the chief economist at the Agricultural Business Chamber (Agbiz), Wandile Sihlobo, said yesterday.
Agbiz said an increase in soya bean plantings was a welcome development, but would not result in any price changes for the buyers of the product, because South Africa was a small player in the soya bean market.
Domestic prices are influenced mainly by developments in the global market.
“Ultimately, the poultry producers’ input costs will remain elevated despite the increase in domestic soya bean production. There is, however, a benefit in terms of the agricultural trade balance, as the increase in domestic soya beans production will ultimately lead to a decline in soya bean oilcake imports,” said Sihlobo.
According to Agbiz, South Africa’s quest to improve its poultry industry by boosting the production of soya beans, which are a crucial ingredient in poultry feed, is vital.
Sihlobo said about 50 to 70 percent of broiler production costs were attributable to the feed, 70 to 80 percent of which came from maize and soya bean costs.
He said South Africa remained a significant net importer of soya bean oilcake or meal, a major ingredient in poultry feed. South Africa’s soya bean oilcake imports had nevertheless declined by 56 percent from the record levels of nearly a million tons in 2010, to about 420 000 tons in 2019, according to data from Trade Map.
The decline in imports coincided with an increase in domestic soya bean production. South Africa’s soya bean plantings have been on an upward trajectory since 2009/10, when plantings were only 311 450 hectares.
Since then, plantings have increased significantly, with the 2020/21 plantings estimated at 806 000 hectares.
“This remarkable increase in soya bean plantings was underpinned by the growing domestic demand from the poultry industry, and the broader livestock subsector. South Africa’s per capita consumption of poultry meat has almost doubled over the past two decades, currently estimated at 33kg,” said Sihlobo.
To service the growing demand for the meat, agribusinesses supported by the government have made investments to increase domestic soya bean processing capacity from about 860 000 tons in 2012, to more than 2.2 million tons. This expansion is also aimed at stimulating domestic soybean production, as part of an import substitution strategy led by the Department of Trade, Industry and Competition (DTIC).
The increase in chicken prices is a problem for consumers, as poultry was the most affordable source of protein.
During the Poultry Master Plan negotiations, DTIC Minister Ebrahim Patel urged domestic producers to keep their prices constant. According to the National Agricultural Marketing Council, the price of chicken increased by 7percent over the past year.